Summary of House Bill 1020, relating to the promotion of dependent care benefits for employees

House Bill 1020, authored by Representative Mike Villarreal, encourages employers to provide dependent care benefits to their employees. When dependents lack coverage, it undermines worker productivity through turnover and absenteeism and increases the burden on publicly funded services. The bill requires the Work and Family Policies Clearinghouse of the Texas Workforce Commission to provide informational and technical assistance to employers on providing dependents’ care benefits.

The Work and Family Policies Clearinghouse is charged under HB 1020 to work with employers and providers to expand access to dependent care benefits. The Clearinghouse will inform businesses about the economic advantages of such benefits and the availability of federal and state tax incentives to help offset additional costs. It will also provide technical assistance to employers to establish dependent care benefit programs as well as to care providers on establishing cooperatives to pool resources and payroll functions.

House Bill 1020 represents an effective, revenue-neutral solution to encourage dependent care benefits by working closely with employers and providers on a voluntary, collaborative basis.