73R9592 CBH-F
          By Brady                                              H.B. No. 2777
          Substitute the following for H.B. No. 2777:
          By Schechter                                      C.S.H.B. No. 2777
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the denial, revocation, or suspension of a license to
    1-3  operate a child-care facility.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Sections 42.072(d)-(j), Human Resources Code, are
    1-6  amended to read as follows:
    1-7        (d)  The denial or revocation of a license or certification
    1-8  and the appeal from that action are governed by the procedure for a
    1-9  contested case hearing under the Administrative Procedure and Texas
   1-10  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
   1-11        (e)  <Within 14 days after the date the appeal notification
   1-12  was mailed, the director shall appoint an advisory review board to
   1-13  hear the appeal or notify the person requesting the appeal that the
   1-14  request is denied.>
   1-15         <(e)  Within 14 days after notifying a person that an
   1-16  advisory review board will hear the case, the director shall
   1-17  appoint five of the person's peers to the board and set a date for
   1-18  the hearing.  The date for the hearing must be within 28 days after
   1-19  the date the board members are appointed.>
   1-20        <(f)  The advisory review board shall hear the appeal and
   1-21  render its opinion to the director within seven days after the last
   1-22  day of the hearing.  The board members shall receive actual travel
   1-23  expenses and the state per diem for each day of the hearing.>
   1-24        <(g)  A committee composed of the director, the division
    2-1  representative responsible for establishing standards, and the
    2-2  division representative administering this chapter in the region
    2-3  where the facility in question is located shall review the opinion.
    2-4  The committee shall make a decision within 14 days after receiving
    2-5  the opinion and shall notify, by certified mail, the person who
    2-6  appealed.>
    2-7        <(h)>  A person whose license has been denied or revoked may
    2-8  challenge the <committee's> decision by filing a suit in a district
    2-9  court of Travis County or the county in which the person's facility
   2-10  is located within 30 days after receiving the <committee's>
   2-11  decision.  The trial shall be de novo.
   2-12        (f) <(i)>  Records of the <department's> hearing shall be
   2-13  kept for two years <one year> after a <committee> decision is
   2-14  rendered.  On request, and at the person's own expense, the
   2-15  division shall supply a copy of the verbatim transcript of the
   2-16  <advisory board> hearing to a person appealing a license denial or
   2-17  revocation in district court.
   2-18        (g) <(j)>  A person may continue to operate a facility during
   2-19  an appeal of a license denial or revocation unless the division has
   2-20  obtained <sought> injunctive relief under Section 42.074 or civil
   2-21  penalties under Section 42.075 or the facility has been closed
   2-22  under Section 42.073 <of this code>.
   2-23        SECTION 2.  Section 42.073, Human Resources Code, is amended
   2-24  to read as follows:
   2-25        Sec. 42.073.  EMERGENCY SUSPENSION AND CLOSURE OF <CLOSING> A
   2-26  FACILITY.  (a)  The division shall suspend a facility's license,
   2-27  order the immediate closing of the facility, and place the children
    3-1  attending or residing in the facility elsewhere if:
    3-2              (1)  the division finds the facility is operating in
    3-3  violation of the standards prescribed by this chapter; and
    3-4              (2)  the violation creates an immediate threat to the
    3-5  health and  safety of the children attending or residing in the
    3-6  facility.
    3-7        (b)  An order suspending a license and closing a facility
    3-8  under this section is immediately effective on the date on which
    3-9  the license holder receives written notice or on a later date
   3-10  specified in the order.
   3-11        (c)  An order is valid for 10 days after the effective date
   3-12  of the  order.
   3-13        (d)  The suspension of a license and the closure of the
   3-14  facility and the appeal from that action are governed by the
   3-15  procedures for a contested case hearing under the Administrative
   3-16  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
   3-17  Civil Statutes) <The division may close the facility and place the
   3-18  children attending the facility in another facility if the division
   3-19  finds violations of this chapter or violations of the department's
   3-20  rules and standards that create an immediate danger for children.>
   3-21        <(b)  A division representative who finds conditions
   3-22  described in Subsection (a) of this section shall immediately
   3-23  notify the director and request an immediate inspection of the
   3-24  facility by the director or the director's designee.>
   3-25        <(c)  The division shall report to the governor and the
   3-26  commissioner of the department when a state-operated facility is
   3-27  found in violation of this chapter or the department's rules and
    4-1  standards and the violation threatens serious harm to the children
    4-2  in the facility.>
    4-3        <(d)  Closing a facility under this section is an emergency
    4-4  measure.  The division shall seek an injunction against continued
    4-5  operation of the facility after closing a facility under this
    4-6  section>.
    4-7        SECTION 3.  This Act takes effect September 1, 1993.
    4-8        SECTION 4.  The importance of this legislation and the
    4-9  crowded condition of the calendars in both houses create an
   4-10  emergency and an imperative public necessity that the
   4-11  constitutional rule requiring bills to be read on three several
   4-12  days in each house be suspended, and this rule is hereby suspended.