HB 1979

This bill establishes a special fund in the state treasury known as the promising futures fund ("the fund"") to consist of all of the following:  A mounts from hemp derived cannabinoid product (HDCP) licensing fees and taxes, as described below.  Amounts from vapor and tobacco product taxes, as described below.  Amounts from the sale or distribution of unregistered vapor products, as described below.  A ny federal funds, grants, gifts, or donations received by the department of human services (""department"") for purposes consistent with this bill.  Moneys specifically appropriated by the general assembly.  Any other moneys authorized by law to be deposited into the fund. This bill requires the fund to be used solely for the purposes authorized by this bill. This bill authorizes the department to retain and use up to 10% of any amounts credited to the fund for administrative purposes. However, any amounts used by the de partment are separate from, and may not be used for, the regulation, enforcement, or collection of any taxes, fees, or assessments. Further, this bill does not limit the authority of any state agency to expend moneys for the administration, enforcement, or collection of any taxes, fees, or assessments authorized under present law. CHILD CARE WORKFORCE SCHOLARSHIP PROGRAM This bill requires the department to administer a child care workforce scholarship pilot program to provide categorical eligibility for free child care for children of any child care worker who works at least 30 hours per week on average and who meets an y additional employment, residency, and participation requirements established by the department (""eligible child care worker"") employed in this state after application of any other federal or state child care assistance the child or family is eligible to r eceive. The department must coordinate eligibility criteria and benefit administration for the pilot program with existing child care subsidy programs. As used in this paragraph, ""categorical eligibility"" means eligibility for child care assistance base d solely on an individual's employment in the child care workforce, without regard to household income. Further, ""child care workforce"" means individuals employed in this state by a child care provider licensed by the department of human services or cert if ied by the department of education to provide child care services in this state (""eligible child care provider"") in a position involving the direct care, supervision, or education of children. This bill requires the department to enter into a contract with one or more marketing outreach vendors to conduct recruitment and outreach activities for the child care workforce scholarship pilot program. Procurement and selection of any such vendors m ust be completed by November 1, 2026. This bill requires the following key performance indicators to be used to evaluate the child care workforce scholarship pilot program:  The number of individuals entering the child care workforce for the first time that is attributable to outreach and recruitment numbers.  The number of eligible child care workers with categorical eligibility.  Child care workforce retention rates for each three-year period for which the pilot program is in operation.  Geographic distribution of eligible child care workers and eligible child care providers participating in the pilot program.  Outreach and efficiency measures, including costs per recruited worker. This bill requires the department to coordinate eligibility for the pilot program with existing child care subsidy programs. CARESHARE TENNESSEE PILOT PROGRAM This bill requires the department to establish the CareShare Tennessee pilot program to provide employer-supported child care assistance through shared contributions by participating employers, participating employees, and the state. The state match for the CareShare Tennessee pilot program must be used to supplement employer and employee contributions toward eligible child care costs. This bill requires the state match to be determined using a declining match formula based on household income. For ho us eholds with an income of up to 100% of the state median income, the state may match up to 100% of the employer contribution for participating employees. The state must decrease its match amount by 10% for each 20% increase in household income over 100% o f the state median household income up to 150% of the state median household income. The state match is 50% if the employee's household income exceeds 150% of the state median household income. This bill requires the department to contract with one third-party administrator to administer the CareShare Tennessee pilot program. Such a third-party administrator is responsible for (i) developing and managing standardized participation agreements a mong employers, employees, and child care providers; (ii) verifying eligibility of employers, employees, and child care providers; (iii) collecting and disbursing employer and employee contributions and issuing state match payments to child care providers ; (iv) collecting, maintaining, and reporting data necessary to measure performance against key performance indicators; (v) ensuring state match payments are made only when sufficient funds are available; and (vi) maintaining waitlists when sufficient fundi ng is unavailable. Procurement and selection of the third-party administrator must be completed by November 1, 2026. This bill requires all of the following key performance indicators to be used to evaluate the CareShare Tennessee pilot program:  The number of participating employers, disaggregated by size, sector, and geographic region.  The number of participating employees receiving child care assistance.  The total amount of employer, employee, and state contributions made through the pilot program.  The number and characteristics of participating child care providers.  Administrative timeliness and accuracy, including contract processing times and payment disbursement timelines. SMART STEPS PLUS PROGRAM This bill establishes the Smart Steps Plus program to provide child care scholarships to eligible working families whose household income exceeds eligibility for existing child care assistance programs. As used in such provision, an ""eligible working fam ily"" is a household with one or more children requiring care in which the household income is greater than 85% of the state median income, but less than 150% of the state median income. Subject to available funding, the Smart Steps Plus program must prov id e child care scholarships on a sliding scale basis, after application of any other federal or state child care assistance the child or family is otherwise eligible to receive. This bill authorizes the department to establish eligibility criteria, benefit levels, copayment requirements, and prioritization schedules for the program. However, the assistance must be targeted to support workforce participation and employment stabil ity. FUNDING REQUIREMENTS This bill requires moneys in the fund to establish and operate all of the following programs:  The child care workforce scholarship pilot program . This program must receive allocations from the fund over each three-year period of the pilot program's operation totaling $5 million dollars.  The CareShare Tennessee pilot program . This program must receive allocations from the fund over each three-year period of the pilot program's operation totaling $5 million dollars.  The smart steps plus program . This program must receive any funds that remain available after the funding goals are met for the above programs. This bill authorizes the department to continue or expand the child care workforce scholarship pilot program and the CareShare Tennessee pilot program if the department's continuation or expansion is approved by the governor. ANNUAL REPORT This bill requires the department to submit an annual report evaluating the child care workforce scholarship pilot program, the CareShare Tennessee pilot program, and the Smart Steps Plus program. Each report must include all of the following:  A summary of fund revenues, expenditures, and balances.  Verified performance data for the child care workforce scholarship pilot program and the CareShare Tennessee pilot program, including the key performance indicators described above.  Participation and utilization data for the Smart Steps Plus program.  An assessment of the effectiveness of each program in meeting its stated goals.  Identification of any barriers to implementation or participation.  Any recommendations for continuation, modification, expansion, or termination of the programs. This bill requires performance indicators used in the report to be based on reports submitted by third-party administrators or vendors and be independently verified by the office of research and education accountability in the office of the comptroller o f the treasury. The report must be made publicly available on the department's website. REVENUE COLLECTED FROM HDCP PENALTIES, FEES, AND TAXES Present law prescribes fees that must be paid by businesses wishing to obtain or renew a license to procure, sell, or wholesale HDCPs. The revenue collected from those fees must be deposited with the state treasurer and allocated to the commission. Thi s bill authorizes any collected revenue in excess of the costs to the commission to be reallocated and deposited into the promising futures fund and used solely for the programs described above. Present law imposes a tax on the sale of HDCPs at wholesale in various amounts depending on the type of product. Revenues from such a tax must be turned over to the state treasurer for deposit. This bill requires that 80% of the revenues be deposited i nto the promising futures fund and used solely for the programs described above. Present law requires each brand of HDCP to register with the department of revenue and pay an annual brand registration fee. This bill clarifies that the amount of any fees collected must be used by the department of revenue for the administration of su ch requirements. However, any unexpended funds must not revert to the general fund, but must instead be reallocated and deposited into the promising futures fund and be used solely for the programs described above. Present law imposes a civil penalty on any person or entity that ships an HDCP directly to a consumer in this state or uses a delivery service to deliver an HDCP to a consumer. This bill clarifies that the amount of any such civil penalties assessed be used by the commission for administration and enforcement. However, any unexpended funds must not revert to the general fund, but must instead be reallocated and deposited into the promising futures fund and be used solely for the programs described abov e. REVENUE COLLECTED FROM VAPOR PRODUCTS Present law imposes a tax on tobacco vapor products . This bill requires that 87.5% of the revenue from such taxes be deposited into the promising futures fund and be used solely for the programs described above. Further, the remaining 12.5% must be deposited with the state treasurer and earmarked for allocation to the alcoholic beverage commission for administration and enforcement. This bill requires any unexpended funds to be reallocated and deposited into the promising futures fund and be used solely for the programs described above. Present law requires the department of revenue to maintain and make publicly available on its website a directory that lists all vapor product manufacturers, brand names, categories, product names, and flavors for which certification forms have been subm itted to and approved by the department of revenue. Vapor products not included in the directory must not be sold for retail sale in this state. Present law imposes penalties for a violation of this prohibition and requires all fees and penalties collec te d to be used for administration and enforcement by the department of revenue. This bill requires any funds not used for enforcement to be reallocated to the promising futures fund and be used solely for the programs described above. Present law prohibits a retailer, distributor, wholesaler, or importer of vapor products from advertising or marketing vapor products to an individual under 21 and imposes a fine for a violation of this prohibition. This bill clarifies that the amount o f any such fine assessed be used by the commission for administration and enforcement. However, any unexpended funds must not revert to the general fund, but must instead be reallocated and deposited into the promising futures fund and be used solely for t he programs described above. RULEMAKING This bill authorizes the department of human services to promulgate rules to effectuate this bill."