The bill establishes a Child-Care Innovation Pilot Program under Chapter 320 of the Labor Code, designed to enhance the availability of quality, affordable child-care services in specific regions of Texas. The program will be administered by the commission, which will collaborate with local workforce development boards, employers, and high-quality child-care providers to fund innovative expansion projects. Boards will be selected based on strategic plans that include measurable performance goals, stakeholder engagement, and sustainability plans beyond state funding. Eligibility for grants will require child-care providers to meet high-quality standards, such as a Texas Rising Star Program rating or recognized accreditation.

Additionally, the bill introduces a new reporting requirement for boards administering grant programs, mandating the submission of reports every 120 days following the first grant award. The commission is responsible for ensuring that at least 83% of appropriated funds are allocated for grants and is also tasked with reviewing the program's effectiveness, culminating in a comprehensive report by December 1, 2028. The commission must adopt necessary rules for implementation, and the chapter is set to expire on September 1, 2029, with the bill taking effect on September 1, 2025.

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