Amends TCA Title 49 and Title 71.

This bill creates a two-year pilot project to invest in the self-sufficiency of employees of a place or facility, regardless of whether it is currently licensed, that is operated as a family child care home, a group child care home, a child care center, or a drop-in center, or that provides child care for five or more children who are not related to the primary caregiver for three or more hours per day ("child care agency"). This bill provides that an employee of a child care agency whose personal household income on or after January 1, 2025, meets the income eligibility standards adopted by the commissioner of education on or after January 1, 2025, does not lose eligibility for the employee's children to receive free or reduced-price meals prior to January 1, 2027, based solely on an increase in the employee's personal or household income that is attributable to the employee receiving a wage increase from the employee's employing child care agency. This bill requires the commissioner of education to recommend, and the state board of education to adopt, rules to implement and administer this bill. Additionally, the department of education may apply to the federal government for appropriate waivers that are necessary to implement this bill. On or before January 15, 2027, this bill requires the commissioner of education to submit a report to the governor, the chair of the education committee of the senate, the chair of the education committee of the house of representatives, and the legislative librarian regarding pilot project findings and recommendations. PILOT PROGRAM BY DEPARTMENT OF HUMAN SERVICES This bill creates a two-year pilot project to invest in the self-sufficiency of employees of child care agencies. An employee of a child care agency whose personal or household income on or after January 1, 2025, meets the income eligibility standards adopted for a public benefit program that is administered by the department of human services does not lose eligibility to participate in the public benefit program prior to January 1, 2027, based solely on an increase in the employee's personal or household income that is attributable to the employee receiving a wage increase from the employee's employing child care agency. This bill requires the department of human services to adopt rules to implement and administer this bill. The department of human services may apply to the federal government for appropriate waivers that are necessary to implement this bill. On or before January 15, 2027, this bill requires the commissioner to submit a report to the governor, the chair of the health and welfare committee of the senate, the chair of the health committee of the house of representatives, and the legislative librarian regarding pilot project findings and recommendations. TACIR STUDY This bill requires the Tennessee advisory commission on intergovernmental relations (TACIR) to conduct a study on (i) the establishment and feasibility of a target compensation scale for employees of child care agencies and (ii) the benefits cliff and whether public benefits program eligibility thresholds are in alignment with state program income eligibility requirements. As used in this bill, "benefits cliff" means the loss of public benefits by employees of child care agencies whose incomes exceed public benefits eligibility thresholds following wage increases. All appropriate departments and agencies of this state must provide assistance to TACIR in connection with the analysis. TACIR must submit a report disclosing the findings of the study and recommendations to the speaker of the senate, the speaker of the house of representatives, and the legislative librarian no later than January 1, 2025.