Relating to the establishment of the Quad-Agency Child Care Initiative and the Quad-Agency Child Care Initiative Commission.

Contracts

• CCDF/Subsidy Agreements: Review revenue forecasts for FY2026. The Legislative Budget Board indicates TWC may reallocate federal Child Care and Development Funds (CCDF) to pay for this Commission. Anticipate a potential tightening of available subsidy funds or reimbursement rates.
• Vendor Flexibility: Audit contracts with third-party training or compliance vendors. Ensure termination or modification clauses exist in case the Commission repeals specific state training mandates, rendering those vendor services unnecessary.

Hiring/Training

• Compliance Officer Role Shift: No new external training is required. However, direct your compliance staff to shift focus from strictly *following* rules to *auditing* rules. They must identify specific regulations that conflict (e.g., Fire Marshal vs. Child Care Licensing) to prepare for the new challenge process.

Reporting & Record-Keeping

• Internal Cost Accounting: The law grants a "Right to Request Review" based on cost and quality impact. To utilize this, you must implement internal tracking that assigns a dollar value to regulatory compliance (e.g., "Regulation X costs us $12,000/year in labor"). Anecdotal complaints will not trigger a repeal; financial data will.

Fees & Costs

• No New Fees: The bill does not levy new fees on providers.
• Insurance Premiums: The Commission is mandated to recommend actions to lower liability insurance costs. While not immediate, monitor Commission reports for findings you can leverage in negotiations with your insurance carriers.