Children; sunset; creating the Teacher Recrutiment and Retention Program; income exemption; child care subsidy program; notice to Department of Human Services; effective date.

An Act
ENROLLED HOUSE
BILL NO. 2778 By: Caldwell (Trey), Kane, and
Ranson of the House

and

Hall and Haste of the
Senate

An Act relating to children; providing sunset;
creating the Teacher Recruitment and Retention
Program; directing that Program be administered by
Oklahoma Partnership for School Readiness; directing
promulgation of rules; providing income exemption for
certain individuals when determining eligibility for
child care subsidy program; directing provider to
provide certain notice to the Department of Human
Services; providing that all other conditions for
eligibility apply; directing the Department to waive
certain co-payment; providing for codification; and
providing an effective date.

SUBJECT: Children

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 461 of Title 10, unless there is
created a duplication in numbering, reads as follows:

A. 1. There is hereby created, until November 1, 2028, in
accordance with the Oklahoma Sunset Law, the Teacher Recruitment and
Retention Program to be administered by Oklahoma Partnership for
School Readiness under the direction of the Department of Human
Services.

ENR. H. B. NO. 2778 Page 2
2. The Department of Human Services shall promulgate rules as
necessary to implement and enforce the provisions of this section,
including verifying income eligibility, employment status, and
administering subsidy benefits accordingly.

B. The Teacher Recruitment and Retention Program, administered
through Oklahoma Partnership for School Readiness, shall ensure
that:

1. A child care employee working at a child care facility
licensed pursuant to the Oklahoma Child Care Facilities Licensing
Act shall be eligible for the Teacher Recruitment and Retention
Program, provided that:

a. total annual gross household income does not exceed
One Hundred Twenty Thousand Dollars ($120,000.00) for
a two-parent household,

b. total annual gross household income does not exceed
Sixty Thousand Dollars ($60,000.00) for a single-
parent household, or

c. children must attend a program participating in the
Department of Human Services’ Child Care Subsidy
Program;

2. As used in this section, "child care employee" shall mean
any individual who is employed for a minimum of twenty (20) hours
per week, averaged monthly, who provides direct care, supervision or
educational services to children or who performs duties on-site that
support the daily operation of the facility participating in the
Child Care Subsidy Program and which is licensed pursuant to the
Oklahoma Child Care Facilities Licensing Act;

3. An employee who qualifies under the household income
limitations in paragraph 1 of this subsection:

a. shall have household income exempted from
consideration solely for purposes of calculating cost-
sharing or co-payment responsibilities,

b. shall have co-payments waived if eligible under the
Department’s Child Care Subsidy Program, and

ENR. H. B. NO. 2778 Page 3
c. shall be eligible to participate in the Teacher
Recruitment and Retention Program, even if his or her
income exceeds the Child Care Subsidy Program
requirements;

4. When an employee who is employed by a licensed child care
facility leaves employment of the licensed provider, the provider
shall provide written notice within thirty (30) days to the
Department of Human Services that the employee is no longer
employed; and

5. Other than the income exemption pursuant to paragraph 1 of
this subsection and the reporting requirements established pursuant
to this subsection, all other conditions of eligibility for the
Child Care Subsidy Program located in Oklahoma Administrative Code
(OAC) 340:40-7-1 shall be followed.

C. Subsection B of this section shall not apply to employees
who are employed by a child care facility licensed pursuant to the
Oklahoma Child Care Facilities Licensing Act and who are eligible
for the Child Care Subsidy Program without household income being
exempted.

D. The Department of Human Services shall waive co-payments for
employees who are employed by a licensed child care facility and who
qualify under income eligibility requirements of the Child Care
Subsidy Program.

SECTION 2. This act shall become effective November 1, 2025.

ENR. H. B. NO. 2778 Page 4
Passed the House of Representatives the 20th day of May, 2025.

Presiding Officer of the House
of Representatives

Passed the Senate the 22nd day of May, 2025.

Presiding Officer of the Senate

OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.

_________________________________
Governor of the State of Oklahoma

OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________