Relating to the establishment of the governor's task force on the governance of early childhood education and care.
LowStandard timeline
Low Cost
Effective:2025-06-20
Enforcing Agencies
Texas Education Agency (TEA) • Health and Human Services Commission (HHSC) • Texas Workforce Commission (TWC)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Signed and effective immediately).
Compliance Deadline:None immediately. This is a governance-creation bill. The critical window for industry engagement is June 2025 through December 1, 2026.
Agency Rulemaking: The Task Force is active immediately. Agencies (TEA, HHSC, TWC) are currently in a "regulatory gray zone" where they must integrate data systems prior to the Task Force's final report due December 1, 2026. Expect new statutory requirements in the 2027 legislative session based on these findings.
Immediate Action Plan
Apply for Appointment: Submit applications to the Governor’s Appointments Office immediately for the "private child-care facility" representative seat. Direct industry representation is the only defense against impractical regulations.
Audit Tech Stack: Verify with your software vendors (SIS/Compliance tools) that they are prepared for future API integrations with TEA/HHSC systems.
Monitor Interim Reports: Assign a compliance officer to track the Task Force’s periodic progress reports to anticipate changes in "quality" definitions that could impact your liability insurance.
Operational Changes Required
Contracts
Employment Agreements: If a staff member from your facility is appointed to the Task Force (as permitted under Sec. 455.003(b)(6)), you must amend their employment contract to define compensation and leave during their service to the state.
Vendor MSAs: Review Master Service Agreements with state-funded programs (e.g., Texas Rising Star). Anticipate amendments regarding data-sharing protocols as the state begins the mandated $1.5M data system integration.
Hiring/Training
No immediate changes. Current certification and ratio requirements remain in force under existing HHSC/TWC rules until the Task Force recommends a new governance structure.
Reporting & Record-Keeping
Data System Audits: The law mandates the integration of data across TEA, HHSC, and TWC. Providers using legacy software or paper records must prepare to migrate to digital systems capable of API integration. The state is building a unified tracking system; your internal systems must be compatible by 2027 to avoid compliance failures.
Fees & Costs
No new fees. The Task Force and data integration are funded by state appropriations ($2.1M fiscal impact).
Future Capital Expenditure Risk: Be advised that the Task Force is charged with defining "high-quality" standards. If these standards require physical plant upgrades or lower ratios, costs will rise significantly post-2027.
Strategic Ambiguities & Considerations
"Large-Scale Redesign": The law explicitly seeks a redesign of governance. It is unclear if Child Care Regulation (CCR) will move from HHSC (health/safety focus) to TEA (education focus). A move to TEA would fundamentally change inspection criteria from safety compliance to educational outcomes.
Standard of Care Liability: The Task Force must define "high-quality prekindergarten." Once defined in a state report, this definition may be used by plaintiffs' attorneys to establish a new, higher "standard of care" in negligence lawsuits, even before it is codified into law.
Data Privacy (FERPA vs. HIPAA): The bill mandates data merging but does not specify how student educational records (TEA) will be reconciled with health/safety records (HHSC) regarding privacy laws.
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The U.S. Department of Health and Human Services Administration for Children and Families identifies high-quality early childhood education and care as keys to enhancing cognitive development during a child's formative years. C.S.H.B. 117 seeks to put Texas children on the best path to succeed by creating a task force to study and devise a comprehensive interagency plan designed to improve early childhood education and care.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
C.S.H.B. 117 amends the Government Code to establish the governor's task force on the governance of early childhood education and care. The task force is administratively attached to the Texas Education Agency (TEA) and is established to address the governance and operational challenges of the early childhood education system in Texas. The bill requires the task force to include a steering committee composed of the following members:
·the executive commissioner of the Health and Human Services Commission (HHSC);
·the commissioner of TEA;
·the chair of the Texas Workforce Commission (TWC);
·relevant division directors designated by the aforementioned individuals; and
·TEA's interagency deputy director of early childhood support.
The bill provides for the composition of the task force as follows:
·one public school teacher certified to teach prekindergarten;
·one certified teacher who is employed by a private child-care facility or prekindergarten program;
·a representative from the Texas Head Start State Collaboration Office appointed by the governor;
·a representative from the Department of State Health Services appointed by the governor;
·two representatives from the Texas Early Learning Council designated by the steering committee; and
·at least two but not more than five individuals with knowledge of early childhood education and care or experience as a direct operator of an early childhood education and care program, including business and community leaders, representatives of nonprofit organizations, and other relevant stakeholders, appointed by the governor.
The bill requires the governor to appoint the chair of the task force and exempts the size, composition, and duration of the task force from state law governing state agency advisory committees.
C.S.H.B. 117 requires the task force to take the following actions:
·examine governance and operational challenges in the early childhood education and care system, including federal and local child-care programs and regulations governing those programs;
·with a focus on improving government efficiency, conduct a comprehensive review of the existing functions and responsibilities of HHSC, TEA, and TWC related to early childhood education and care; and
·consider methods for a large-scale redesign of the administration of early childhood programs to improve efficiency, service delivery, quality of care, and the efficient use of funding.
The bill requires the steering committee of the task force to do the following:
·align goals and metrics of HHSC, TEA, and TWC to measure progress, including aligning statewide data systems; and
·require HHSC, TEA, and TWC to complete and submit to the task force periodic progress reports and regularly refine statewide goals and strategic plans to ensure alignment with evolving early childhood education and care needs.
The bill requires TEA, from money appropriated or otherwise available for the purpose, to pay the costs of data system integration, research, and administration for the task force.
C.S.H.B. 117 requires the task force, not later than December 1, 2026, to develop and submit to the legislature policy and budget recommendations designed to improve early childhood education and care governance that will facilitate and improve early childhood education and care participant engagement with state agencies and lead to improved operational efficiency, increased affordable child-care capacity, and improved kindergarten readiness. The task force is abolished and the bill's provisions expire September 1, 2027.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 117 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
The substitute replaces the commissioner of TWC, as in the introduced version, with the chair of TWC as one of the members composing the steering committee of the task force. The substitute further revises the composition of the task force set out by the introduced version as follows:
·includes as members not included in the introduced version one public school teacher certified to teach prekindergarten and one certified teacher who is employed by a private child-care facility or prekindergarten;
·specifies that the task force includes two representatives from the Texas Early Learning Council designated by the steering committee, whereas the introduced did not include a specified number of such representatives from the council; and
·with respect to the introduced version's inclusion of individuals with knowledge of or experience with early childhood education and care, including business and community leaders, representatives of nonprofit organizations, and other relevant stakeholders, appointed by the governor:
ospecifies that the task force include at least two but not more than five such members; and
oclarifies that the applicable experience with early childhood education and care is experience as a direct operator of an early childhood education and care program.
The substitute omits a provision in the introduced establishing that the exemption of the bill's provisions from state law governing state agency advisory committees is to the extent of a conflict with the bill, and the substitute specifies that those provisions are inapplicable to the size, composition, and duration of the task force, which the introduced did not.
With regard to the required duties of the task force, the substitute does the following:
·specifies that the introduced version's requirement for the task force to conduct a comprehensive review of the existing functions and responsibilities of HHSC, TEA, and TWC related to early childhood education and care is done with a focus on improving government efficiency;
·replaces the requirement for the task force to assess the need for a large-scale redesign of the administration of early childhood programs, as in the introduced version, with a requirement for the task force to instead consider methods for a large-scale redesign of the administration of such programs; and
·includes improving the efficiency of those programs among the goals of such a redesign, which the introduced did not include.
The substitute transfers from the task force, as in the introduced, to the steering committee the duty to align goals and metrics of HHSC, TEA, and TWC to measure progress and the duty to require those agencies to complete periodic progress reports and regularly refine statewide goals and strategic plans to ensure alignment with evolving early childhood education and care needs. The substitute requires those agencies to submit the progress reports to the task force, which the introduced does not, and omits the requirement present in the introduced for those entities to ensure collaboration with the Texas Early Learning Council for those purposes.
The substitute expands the purposes of the policy and budget recommendations made by the task force required in the introduced version. Whereas the substitute and the introduced both require the recommendations be designed to improve early childhood education and care governance that will lead to increased affordable child care capacity and improved kindergarten readiness, the substitute includes as a purpose of the design that it also lead to improved operational efficiency and facilitate and improve early childhood education and care participant engagement with state agencies.
Honorable Brad Buckley, Chair, House Committee on Public Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB117 by Schoolcraft (Relating to the establishment of the governor's task force on the governance of early childhood education and care.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB117, As Introduced: a negative impact of ($2,177,869) through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($804,227)
2027
($1,373,642)
2028
$0
2029
$0
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($804,227)
1.0
2027
($1,373,642)
1.0
2028
$0
0.0
2029
$0
0.0
2030
$0
0.0
Fiscal Analysis
The bill would establish the Governor's task force on the governance of early childhood education and care. The task force would be administratively attached to the Texas Education Agency (TEA).
The task force would conduct a comprehensive review of the existing functions and responsibilities of the Health and Human Services Commission, TEA, and the Texas Workforce Commission related to early childhood education and care. The task force would also require those agencies to complete periodic progress reports and to refine statewide goals and strategic plans.
The bill would require TEA, from money appropriated or otherwise available, to pay the costs of data system integration, research, and administration for the task force.
The bill would require the task force to develop and submit a report to the Legislature, not later than December 1, 2026, that would include budget and policy recommendations to improve early childhood education and care governance.
The task force would be abolished September 1, 2027.
Methodology
TEA estimates committee costs would be $68,400 in fiscal year 2026 and $34,200 in fiscal year 2027.
The analysis assumes TEA would require 1.0 FTE to implement the provisions of this bill at a cost of $0.3 million for the biennium.
TEA estimates the cost to produce the periodic agency reports and the report to the Legislature would be $125,000 in both fiscal years 2026 and 2027.
This analysis assumes costs to other state agencies could be absorbed with existing resources.
Technology
TEA assumes IT costs to implement the provisions of the bill would total $1.5 million for the biennium.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td >
300 Trusteed Programs Within the Office of the Governor, 320 Texas Workforce Commission, 529 Health and Human Services Commission, 537 State Health Services, Department of, 701 Texas Education Agency
LBB Staff: b > td >
JMc, JPE, ASA, ANa
Related Legislation
Explore more bills from this author and on related topics
HB117 initiates a state-mandated redesign of the regulatory framework for all early childhood education and care providers in Texas, effective immediately. While immediate operational changes are minimal, this legislation triggers a consolidation of oversight between TEA, HHSC, and TWC that will fundamentally alter licensing, data reporting, and quality standards by 2027. Implementation Timeline Effective Date: June 20, 2025 (Signed and effective immediately).
Q
Who authored HB117?
HB117 was authored by Texas Representative Alan Schoolcraft during the Regular Session.
Q
When was HB117 signed into law?
HB117 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB117?
HB117 is enforced by Texas Education Agency (TEA), Health and Human Services Commission (HHSC) and Texas Workforce Commission (TWC).
Q
How urgent is compliance with HB117?
The compliance urgency for HB117 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB117?
The cost impact of HB117 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB117 address?
HB117 addresses topics including education, education--primary & secondary, education--primary & secondary--general, governor and human services.
Legislative data provided by LegiScanLast updated: November 25, 2025
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