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Signed Into Law
Signed May 28, 2025Effective 2025-09-01
SB462

Regular Session

Relating to establishing a child-care services waiting list priority for the children of certain child-care workers.

Government Affairs & Regulatory Compliance Analysis

SB462: Government Affairs Overview

SB462 mandates that the Texas Workforce Commission (TWC) grant immediate waiting list priority for subsidized child-care services to children of employees working at licensed child-care facilities. Effective September 1, 2025, this legislation converts state subsidies into a statutory retention benefit for your staff, requiring operators to implement precise employment verification protocols to validate the 25-hour weekly work requirement.

Sen. Lois Kolkhorst·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Business Impact

Who SB462 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Manufacturing & Business

Affected business types:

  • Manufacturers
  • Industrial facilities
  • Supply chain companies
  • Logistics providers
View all manufacturing & business legislation

Key Operational Considerations

  • 1Employee Handbooks: Update benefits sections to disclose this statutory priority. Define "qualifying employment" internally as 25+ hours per week to align with the statute.
  • 2Provider Agreements: If you are a CCS provider, anticipate amendments to your Local Workforce Development Board agreement regarding the reporting of staff eligibility.
  • 3Recruitment Strategy: Immediately update job postings to highlight "State-Mandated Child Care Priority" as a benefit for positions exceeding 25 hours/week.
  • 4HR Training: Staff responsible for payroll must be trained to generate "Proof of Employment" documentation that specifically attests to the 25-hour weekly minimum.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB462
Moderate
Relating to establishing a child-care services waiting list priority for the children of certain child-care workers.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Local Workforce Development BoardsTexas Workforce Commission
Primary Author: Sen. Lois Kolkhorst
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: August 2025 (Operators must have verification workflows ready prior to the effective date to assist staff in updating their waiting list status immediately).
  • Agency Rulemaking: The TWC must amend Child Care Services rules prior to September 1, 2025. Expect a public comment period in Spring/Summer 2025 defining the specific evidence required to prove "direct supervision" separation for directors' children.

Immediate Action Plan

  • 1. Audit Staff Rosters: Identify all current employees working 25+ hours/week who may qualify for CCS subsidies but are currently stuck on a waiting list.
  • 2. Draft Verification Templates: Create a "Notice of Employment & Hours" form on company letterhead ready for use by August 1, 2025.
  • 3. Update Recruitment Collateral: Revise hiring materials to leverage this priority status as a recruitment tool for hard-to-fill shifts.
  • 4. Monitor TWC Rules: Subscribe to TWC updates to catch the definition of "direct supervision" to determine if your site directors will be eligible.

Operational Changes Required

Contracts

  • Employee Handbooks: Update benefits sections to disclose this statutory priority. Define "qualifying employment" internally as 25+ hours per week to align with the statute.
  • Provider Agreements: If you are a CCS provider, anticipate amendments to your Local Workforce Development Board agreement regarding the reporting of staff eligibility.

Hiring/Training

  • Recruitment Strategy: Immediately update job postings to highlight "State-Mandated Child Care Priority" as a benefit for positions exceeding 25 hours/week.
  • HR Training: Staff responsible for payroll must be trained to generate "Proof of Employment" documentation that specifically attests to the 25-hour weekly minimum.

Reporting & Record-Keeping

  • Verification of Hours: You must create a standardized form or payroll extract that certifies an employee works a minimum of 25 hours per week. This will be required at initial application and during the mandatory annual redetermination.
  • Director/Owner Exclusion: If an owner or director applies, you must document the facility's organizational structure to prove their child is not under the parent's "direct supervision" while in care.

Fees & Costs

  • Administrative Overhead: No new state fees. Costs are limited to the administrative time required to verify employment status and hours for staff members applying for subsidies.

Strategic Ambiguities & Considerations

The TWC rulemaking process must resolve three critical operational definitions. Watch for:

  • 1. "Direct Supervision": The law allows directors/owners to qualify only if they do not "directly supervise" their own child. In small facilities, TWC rules must clarify if a director is considered the supervisor of *all* children, which would effectively disqualify them.
  • 2. Income Thresholds: The statute requires the worker to be "eligible for the services." We must confirm via rulemaking that this priority status does *not* waive the underlying income requirements (e.g., 85% of State Median Income).
  • 3. Fluctuating Hours: TWC must define how eligibility is impacted if an employee averages 25 hours but occasionally drops below that threshold due to scheduling variances.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Nov 22, 2024
Passed Senate
Apr 10, 2025
Passed House
May 15, 2025
Signed
May 28, 2025
Effective
Sep 1, 2025
TopicsDay CareLaborLabor--workforce DevelopmentWorkforce Commission, Texas
03

Senate Authors

Sen. Lois KolkhorstRepublican · Primary Author
Coauthors (2)

House Sponsors

Rep. Caroline Harris DavilaRepublican · Primary Sponsor
Joint Sponsors
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Lois Kolkhorst

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Related by Topic

View more Day Care legislation
Quick Reference

Frequently Asked Questions

Common questions about SB462

Q

What does Texas SB462 do?

SB462 mandates that the Texas Workforce Commission (TWC) grant immediate waiting list priority for subsidized child-care services to children of employees working at licensed child-care facilities. Effective September 1, 2025, this legislation converts state subsidies into a statutory retention benefit for your staff, requiring operators to implement precise employment verification protocols to validate the 25-hour weekly work requirement.

Q

Who authored SB462?

SB462 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

Q

When was SB462 signed into law?

SB462 was signed into law by Governor Greg Abbott on May 28, 2025.

Q

Which agencies enforce SB462?

SB462 is enforced by Local Workforce Development Boards and Texas Workforce Commission.

Q

How significant are the changes in SB462?

The regulatory priority for SB462 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB462?

The cost impact of SB462 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB462 address?

SB462 addresses topics including day care, labor, labor--workforce development and workforce commission, texas.

Q

What are the key dates for SB462?

Key dates for SB462: Effective date is 2025-09-01. Rulemaking: Must amend Child Care Services rules to mandate waiting list priority and establish annual eligibility redetermination criteria for child-care workers. (Prior to 2025-09-01). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB462?

SB462 primarily affects employers and workforce development organizations. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026