Regular Session
Key implementation requirements and action items for compliance with this legislation
No mandatory changes. However, if you choose to adopt the TWC's provided templates (e.g., for Dependent Care Savings Accounts), you must integrate these into your Employee Handbooks and employment agreements. Critical: Do not insert TWC templates into contracts without independent legal review; the statute explicitly absolves the TWC of liability for the legal sufficiency of these forms.
Voluntary benchmarking. HR Directors should use the forthcoming TWC data to benchmark current benefits packages against state-defined "best practices" to remain competitive in recruitment. No new mandatory training is required.
None. The burden of data aggregation and website maintenance lies solely with the TWC. Employers are not required to submit child-care data or utilization reports.
None. There are no new fees. Conversely, the portal is designed to highlight the Employer-Provided Child Care Credit (45F) and other incentives, potentially reducing your tax liability.
The legislation requires the TWC to publish "best practices," a term left undefined in the statute.
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This bill's path through the Texas Legislature
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Common questions about SB1265
SB1265 mandates the Texas Workforce Commission (TWC) to publish a centralized repository of child-care tax credits, policy templates, and best practices for employers by February 1, 2026. This legislation imposes no new mandates on private businesses but creates a state-sanctioned toolkit for HR and Finance departments to optimize tax strategy and benefits packages. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: None for Employers.
SB1265 was authored by Texas Senator Carol Alvarado during the Regular Session.
SB1265 was signed into law by Governor Greg Abbott on May 28, 2025.
SB1265 is enforced by Texas Workforce Commission (Charged with providing resources; no enforcement authority over employers granted by this bill).
The compliance urgency for SB1265 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of SB1265 is estimated as "low". This may vary based on industry and implementation requirements.
SB1265 addresses topics including day care, labor, labor--general, workforce commission, texas and internet.
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