(a) Each board shall establish graduated reimbursement rates for child care based on the commission’s Texas Rising Star Program.
(b) The minimum reimbursement rate for a Texas Rising Star Program provider must be greater than the maximum rate established for a provider who is not a Texas Rising Star Program provider for the same category of care. The reimbursement rate must be:
(1) at least five percent higher for a provider with a two-star rating;
(2) at least seven percent higher for a provider with a three-star rating; and
(3) at least nine percent higher for a provider with a four-star rating.

(c) The Texas Rising Star Program rate differential established in this section shall be funded with federal child-care development funds.
(d) The commission shall examine and implement strategies to address the increased costs a Texas Rising Star Program provider with a four-star or three-star rating would incur to provide care to infants and toddlers due to low child-to-caregiver ratios for children in those age groups.