(a) The following provisions are effective prior to December 1, 2023:      
        (1) For child care funds allocated by the Commission pursuant to its allocation rules (generally, Chapter 800, Subchapter B of this title (relating to Allocations), and specifically, §800.58 of this title (relating to Child Care)), including local public transferred funds and local private donated funds, as provided in §809.17 of this subchapter, the following shall apply:                  (A) A Board shall set a parent share of cost policy that assesses the parent share of cost in a manner that results in the parent share of cost:                      (i) being assessed to all parents, except in instances when an exemption under subparagraph (B) of this paragraph applies;                       (ii) being an amount determined by a sliding fee scale based on the family's size and gross monthly income, including a possible reexamination of the sliding fee scale if there are frequent terminations for lack of payment pursuant to paragraph (4) of this subsection, which also may consider the number of children in care;                       (iii) being an amount that is affordable and does not result in a barrier to families receiving assistance;                       (iv) being assessed only at the following times:                          (I) initial eligibility determination;                           (II) 12-month eligibility redetermination;                           (III) upon the addition of a child in care;                           (IV) upon a parent's report of a change in income, family size, or number of children in care that would result in a reduced parent share of cost assessment; and                           (V) upon resumption of work, job training, or education activities following temporary changes described in §809.51(a)(2) of this chapter, and upon resumption of work, job training, or education activities during the three-month continuation of care period described in §809.51(c) of this chapter; and                         (v) not increasing above the amount assessed at initial eligibility determination or at the 12-month eligibility redetermination based on the factor in clause (ii) of this subparagraph, except upon the addition of a child in care as described in clause (iv)(III) of this subparagraph.                     (B) Parents who are one or more of the following are exempt from paying the parent share of cost:                      (i) Parents who are participating in Choices or who are in Choices child care described in §809.45 of this chapter;                       (ii) Parents who are participating in SNAP E&T services or who are in SNAP E&T child care described in §809.47 of this chapter;                       (iii) Parents of a child receiving Child Care for Children Experiencing Homelessness as described in §809.52 of this chapter; or                       (iv) Parents who have children who are receiving protective services child care pursuant to §809.49 and §809.54(c) of this chapter, unless DFPS assesses the parent share of cost.                     (C) Teen parents who are not covered under exemptions listed in subparagraph (B) of this paragraph shall be assessed a parent share of cost. The teen parent's share of cost is based solely on the teen parent's income and size of the teen's family as defined in §809.2 of this chapter.         
        (2) A Board shall establish a policy stating whether or not the Board will reimburse providers when parents fail to pay the parent share of cost. If the Board does not reimburse providers under the adopted policy, the Board may establish a policy requiring the parent pay the provider before the family can be redetermined eligible for future child care services.       
        (3) A Board shall establish a policy regarding termination of child care services within a 12-month eligibility period when a parent fails to pay the parent share of cost. The Board's policy must include:                  (A) a requirement to evaluate and document each family's financial situation for extenuating circumstances that may affect affordability of the assessed parent share of cost pursuant to subparagraph (B) of this paragraph, and a possible temporary reduction pursuant to paragraph (5) of this subsection before the Board or its child care contractor may terminate care under this section;                   (B) general criteria for determining affordability of a Board's parent share of cost, and a process to identify and assess the circumstances that may jeopardize a family's self-sufficiency under paragraph (5) of this subsection;                   (C) maintenance of a list of all terminations due to failure to pay the parent share of cost, for use when conducting evaluations of affordability, as required under subparagraph (D) of this paragraph; and                   (D) the Board's definition of what constitutes frequent terminations and its process for assessing the general affordability of the Board's parent share of cost schedule, pursuant to paragraph (4) of this subsection.         
        (4) A Board with frequent terminations of care for lack of payment of the parent share of cost must reexamine its sliding fee scale and adjust it to ensure that fees are not a barrier to assistance for families at certain income levels.       
        (5) The Board or its child care contractor may review the assessed parent share of cost for a possible temporary reduction if there are extenuating circumstances that jeopardize a family's self-sufficiency. The Board or its child care contractor may temporarily reduce the assessed parent share of cost if warranted by these circumstances. Following the temporary reduction, the parent share of cost amount immediately prior to the reduction shall be reinstated.       
        (6) If the parent is not covered by an exemption as specified in paragraph (1)(B) of this subsection, then the Board or its child care contractor shall not waive the assessed parent share of cost under any circumstances.       
        (7) If the parent share of cost, based on family income and family size, is calculated to be zero, then the Board or its child care contractor shall not charge the parent a minimum share of cost amount.       
        (8) A Board may establish a policy to reduce the parent share of cost amount assessed pursuant to paragraph (1)(A)(ii) of this subsection upon the parent's selection of a Texas Rising Star-certified provider. Such Board policy shall ensure:                  (A) that the parent continues to receive the reduction if:                      (i) the Texas Rising Star provider loses Texas Rising Star certification; or                       (ii) the parent moves or changes employment within the workforce area and no Texas Rising Star-certified providers are available to meet the needs of the parent's changed circumstances; and                     (B) the parent no longer receives the reduction if the parent voluntarily transfers the child from a Texas Rising Star-certified provider to a non-Texas Rising Star-certified provider.         
        (9) A Board may establish a policy to reduce the parent share of cost amount assessed pursuant to paragraph (1)(A)(ii) of this subsection upon the child's referral for part-time or blended care. Such Board policy shall ensure that:                  (A) the parent no longer receives the reduction if the referral is changed to full-time care; and                   (B) a parent who qualifies for a reduction in parent share of cost for both selecting a Texas Rising Star-certified provider (as defined in paragraph (8) of this subsection) and a child's part-time or blended care referral will receive the greater of the two discounts.         
      (b) The following provisions are effective on December 1, 2023:      
        (1) For child care funds allocated by the Commission pursuant to its allocation rules (generally, Chapter 800, Subchapter B of this title (relating to Allocations), and specifically, §800.58 of this title (relating to Child Care)), including local public transferred funds and local private donated funds, as provided in §809.17 of this subchapter, the following shall apply:                  (A) The parent share of cost shall be:                      (i) assessed to all parents, except in instances when an exemption under subparagraph (C) of this paragraph applies; and                       (ii) established by the Commission and determined by a sliding fee scale based on the family's size and gross monthly income determined in §809.44 of this chapter and as represented by a percentage of the state median income (SMI) up to 85 percent SMI.                     (B) A Board shall assess the parent share of cost in accordance with subparagraph (A)(ii) of this paragraph and in a manner that results in the parent share of cost:                      (i) being assessed only at the following times:                          (I) initial eligibility determination;                           (II) 12-month eligibility redetermination;                           (III) upon the addition of a child in care;                           (IV) upon a parent's report of a change in income, family size, or number of children in care that would result in a reduced parent share of cost assessment; and                           (V) upon resumption of work, job training, or education activities following temporary changes described in §809.51(a) of this chapter, and upon resumption of work, job training, or education activities during the three-month continuation of care period described in §809.51(c) of this chapter; and                         (ii) not increasing above the amount assessed at initial eligibility determination or at the 12-month eligibility redetermination, except upon the addition of a child in care as described in subclause (i)(III) of this subparagraph.                     (C) Parents who are one or more of the following are exempt from paying the parent share of cost:                      (i) Parents who are participating in Choices or who are in Choices child care described in §809.45 of this chapter;                       (ii) Parents who are participating in SNAP E&T services or who are in SNAP E&T child care described in §809.47 of this chapter;                       (iii) Parents of a child receiving Child Care for Children Experiencing Homelessness as described in §809.52 of this chapter; or                       (iv) Parents who have children who are receiving protective services child care pursuant to §809.49 and §809.54(c) of this chapter, unless DFPS assesses the parent share of cost.                     (D) Teen parents who are not covered under exemptions listed in subparagraph (C) of this paragraph shall be assessed a parent share of cost. The teen parent's share of cost is based solely on the teen parent's income and size of the teen's family as defined in §809.2 of this chapter.         
        (2) A Board shall establish a policy stating whether or not the Board will reimburse providers when parents fail to pay the parent share of cost. If the Board does not reimburse providers under the adopted policy, the Board may establish a policy requiring the parent pay the provider before the family can be redetermined eligible for future child care services.       
        (3) A Board shall establish a policy regarding termination of child care services within a 12-month eligibility period when a parent fails to pay the parent share of cost. The Board's policy must include:                  (A) a requirement to evaluate and document each family's financial situation for extenuating circumstances that may affect affordability of the assessed parent share of cost pursuant to subparagraph (B) of this paragraph, and a possible temporary reduction pursuant to paragraph (4) of this subsection before the Board or its child care contractor may terminate care under this section;                   (B) a process to identify and assess the circumstances that may jeopardize a family's self-sufficiency under paragraph (4) of this subsection; and                   (C) maintenance of a list of all terminations due to failure to pay the parent share of cost.         
        (4) The Board or its child care contractor may review the assessed parent share of cost for a possible temporary reduction if there are extenuating circumstances that jeopardize a family's self-sufficiency. The Board or its child care contractor may temporarily reduce the assessed parent share of cost if warranted by these circumstances. Following the temporary reduction, the parent share of cost amount immediately prior to the reduction shall be reinstated.       
        (5) If the parent is not covered by an exemption as specified in paragraph (1)(C) of this subsection, then the Board or its child care contractor shall not waive the assessed parent share of cost under any circumstances.       
        (6) If the parent share of cost, based on family income and family size, is calculated to be zero, then the Board or its child care contractor shall not charge the parent a minimum share of cost amount.       
        (7) A Board may establish a policy to reduce the parent share of cost amount assessed pursuant to paragraph (1)(A) of this subsection upon the parent's selection of a Texas Rising Star-certified provider. Such Board policy shall ensure:                  (A) that the parent continues to receive the reduction if:                      (i) the Texas Rising Star provider loses Texas Rising Star certification; or                       (ii) the parent moves or changes employment within the workforce area and no Texas Rising Star-certified providers are available to meet the needs of the parent's changed circumstances; and                     (B) the parent no longer receives the reduction if the parent voluntarily transfers the child from a Texas Rising Star-certified provider to a non-Texas Rising Star-certified provider.         
        (8) A Board may establish a policy to reduce the parent share of cost amount assessed pursuant to paragraph (1)(A) of this subsection upon the child's referral for part-time or blended care. Such Board policy shall ensure that:                  (A) the parent no longer receives the reduction if the referral is changed to full-time care; and                   (B) a parent who qualifies for a reduction in parent share of cost for both selecting a Texas Rising Star-certified provider (as defined in paragraph (7) of this subsection) and a child's part-time or blended care referral will receive the greater of the two discounts.         
     Source Note:        The provisions of this §809.19 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective September 8, 2008, 33 TexReg 7568; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective August 1, 2018, 43 TexReg 4474; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437