1-1  By:  Brady (Senate Sponsor - Shelley)                 H.B. No. 2394
    1-2        (In the Senate - Received from the House May 10, 1993;
    1-3  May 12, 1993, read first time and referred to Committee on Health
    1-4  and Human Services; May 19, 1993, reported adversely, with
    1-5  favorable Committee Substitute by the following vote:  Yeas 8, Nays
    1-6  0; May 19, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Zaffirini          x                               
   1-10        Ellis              x                               
   1-11        Madla              x                               
   1-12        Moncrief           x                               
   1-13        Nelson             x                               
   1-14        Patterson                                     x    
   1-15        Shelley            x                               
   1-16        Truan              x                               
   1-17        Wentworth          x                               
   1-18  COMMITTEE SUBSTITUTE FOR H.B. No. 2394                 By:  Shelley
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to the denial, revocation, or suspension of a license to
   1-22  operate a child-care facility and to licensing the facility after
   1-23  revocation.
   1-24        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-25        SECTION 1.  Section 42.072, Human Resources Code, is amended
   1-26  by amending Subsections (d)-(j) and adding Subsection (h) to read
   1-27  as follows:
   1-28        (d)  The denial or revocation of a license or certification
   1-29  and the appeal from that action are governed by the procedure for a
   1-30  contested case hearing under the Administrative Procedure and Texas
   1-31  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
   1-32        (e)  <Within 14 days after the date the appeal notification
   1-33  was mailed, the director shall appoint an advisory review board to
   1-34  hear the appeal or notify the person requesting the appeal that the
   1-35  request is denied.>
   1-36        <(e)  Within 14 days after notifying a person that an
   1-37  advisory review board will hear the case, the director shall
   1-38  appoint five of the person's peers to the board and set a date for
   1-39  the hearing.  The date for the hearing must be within 28 days after
   1-40  the date the board members are appointed.>
   1-41        <(f)  The advisory review board shall hear the appeal and
   1-42  render its opinion to the director within seven days after the last
   1-43  day of the hearing.  The board members shall receive actual travel
   1-44  expenses and the state per diem for each day of the hearing.>
   1-45        <(g)  A committee composed of the director, the division
   1-46  representative responsible for establishing standards, and the
   1-47  division representative administering this chapter in the region
   1-48  where the facility in question is located shall review the opinion.
   1-49  The committee shall make a decision within 14 days after receiving
   1-50  the opinion and shall notify, by certified mail, the person who
   1-51  appealed.>
   1-52        <(h)>  A person whose license has been denied or revoked may
   1-53  challenge the <committee's> decision by filing a suit in a district
   1-54  court of Travis County or the county in which the person's facility
   1-55  is located within 30 days after receiving the <committee's>
   1-56  decision.  The trial shall be de novo.
   1-57        (f) <(i)>  Records of the <department's> hearing shall be
   1-58  kept for two years <one year> after a <committee> decision is
   1-59  rendered.  On request, and at the person's own expense, the
   1-60  division shall supply a copy of the verbatim transcript of the
   1-61  <advisory board> hearing to a person appealing a license denial or
   1-62  revocation in district court.
   1-63        (g) <(j)>  A person may continue to operate a facility during
   1-64  an appeal of a license denial or revocation unless the division has
   1-65  obtained <sought> injunctive relief under Section 42.074 or civil
   1-66  penalties under Section 42.075 or the facility has been closed
   1-67  under Section 42.073 <of this code>.
   1-68        (h)  A person whose license or certification is revoked may
    2-1  not apply for any license or certification under this chapter
    2-2  before the second anniversary of the date on which the revocation
    2-3  takes effect by department or court order.
    2-4        SECTION 2.  Section 42.073, Human Resources Code, is amended
    2-5  to read as follows:
    2-6        Sec. 42.073.  EMERGENCY SUSPENSION AND CLOSURE OF <CLOSING> A
    2-7  FACILITY.  (a)  The division shall suspend a facility's license,
    2-8  order the immediate closing of the facility, and place the children
    2-9  attending or residing in the facility elsewhere if:
   2-10              (1)  the division finds the facility is operating in
   2-11  violation of the standards prescribed by this chapter; and
   2-12              (2)  the violation creates an immediate threat to the
   2-13  health and  safety of the children attending or residing in the
   2-14  facility.
   2-15        (b)  An order suspending a license and closing a facility
   2-16  under this section is immediately effective on the date on which
   2-17  the license holder receives written notice or on a later date
   2-18  specified in the order.
   2-19        (c)  An order is valid for 10 days after the effective date
   2-20  of the  order.
   2-21        (d)  The suspension of a license and the closure of the
   2-22  facility and the appeal from that action are governed by the
   2-23  procedures for a contested case hearing under the Administrative
   2-24  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
   2-25  Civil Statutes) <The division may close the facility and place the
   2-26  children attending the facility in another facility if the division
   2-27  finds violations of this chapter or violations of the department's
   2-28  rules and standards that create an immediate danger for children.>
   2-29        <(b)  A division representative who finds conditions
   2-30  described in Subsection (a) of this section shall immediately
   2-31  notify the director and request an immediate inspection of the
   2-32  facility by the director or the director's designee.>
   2-33        <(c)  The division shall report to the governor and the
   2-34  commissioner of the department when a state-operated facility is
   2-35  found in violation of this chapter or the department's rules and
   2-36  standards and the violation threatens serious harm to the children
   2-37  in the facility.>
   2-38        <(d)  Closing a facility under this section is an emergency
   2-39  measure.  The division shall seek an injunction against continued
   2-40  operation of the facility after closing a facility under this
   2-41  section>.
   2-42        SECTION 3.  (a)  This Act takes effect September 1, 1993.
   2-43        (b)  Section 42.072(h), Human Resources Code, as added by
   2-44  this Act, applies only to a license or certification revocation
   2-45  that takes effect on or after the effective date of this Act.  A
   2-46  license or certification revocation that takes effect before the
   2-47  effective date of this Act is governed by the law in effect when
   2-48  the revocation took effect, and that law is continued in effect for
   2-49  that purpose.
   2-50        SECTION 4.  The importance of this legislation and the
   2-51  crowded condition of the calendars in both houses create an
   2-52  emergency and an imperative public necessity that the
   2-53  constitutional rule requiring bills to be read on three several
   2-54  days in each house be suspended, and this rule is hereby suspended.
   2-55                               * * * * *
   2-56                                                         Austin,
   2-57  Texas
   2-58                                                         May 19, 1993
   2-59  Hon. Bob Bullock
   2-60  President of the Senate
   2-61  Sir:
   2-62  We, your Committee on Health and Human Services to which was
   2-63  referred H.B. No. 2394, have had the same under consideration, and
   2-64  I am instructed to report it back to the Senate with the
   2-65  recommendation that it do not pass, but that the Committee
   2-66  Substitute adopted in lieu thereof do pass and be printed.
   2-67                                                         Truan,
   2-68  Acting Chair
   2-69                               * * * * *
   2-70                               WITNESSES
    3-1  No witnesses appeared on H.B. No. 2394.