By Gray                                         H.B. No. 1695

      75R1800 JMM/KKA-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the continuation and operation of the Department of

 1-3     Protective and Regulatory Services, the provision of services to

 1-4     children and families, and suits affecting the parent-child

 1-5     relationship; providing penalties.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7           SECTION 1.  Section 40.003, Human Resources Code, is amended

 1-8     to read as follows:

 1-9           Sec. 40.003.  SUNSET PROVISION.  The Department of Protective

1-10     and Regulatory Services is subject to Chapter 325, Government Code

1-11     (Texas Sunset Act).  Unless continued in existence as provided by

1-12     that chapter, the department is abolished and this chapter expires

1-13     September 1, 2009 [1997].

1-14           SECTION 2.  Subchapter A, Chapter 40, Human Resources Code,

1-15     is amended by amending Section 40.004 and adding Section 40.0041 to

1-16     read as follows:

1-17           Sec. 40.004.  PUBLIC INTEREST INFORMATION [AND COMPLAINTS].

1-18     (a)  The board [department] shall develop and implement policies

1-19     that provide the public with a reasonable opportunity to appear

1-20     before the board [department] and to speak on any issue under the

1-21     jurisdiction of the department.

1-22           (b)  The department shall prepare information of public

1-23     interest describing the functions of the department [and the

1-24     department's procedures by which complaints are filed with and

 2-1     resolved by the department].  The department shall make the

 2-2     information available to the public and appropriate state agencies.

 2-3           [(c)  The department by rule shall establish methods by which

 2-4     the public, consumers, and service recipients can be notified of

 2-5     the mailing addresses and telephone numbers of appropriate

 2-6     departmental personnel for the purpose of directing complaints to

 2-7     the department.  The department may provide for that notification:]

 2-8                 [(1)  on each registration form, application, or

 2-9     written contract for services of a person regulated by the

2-10     department;]

2-11                 [(2)  on a sign prominently displayed in the place of

2-12     business of each person regulated by the department; or]

2-13                 [(3)  in a bill for a service provided by a person

2-14     regulated by the department.]

2-15           [(d)  The department shall keep an information file about

2-16     each complaint filed with the department relating to:]

2-17                 [(1)  a license holder or entity regulated by the

2-18     department; or]

2-19                 [(2)  a service delivered by the department.]

2-20           [(e)  If a written complaint is filed with the department

2-21     relating to a license holder or entity regulated by the department

2-22     or a service delivered by the department, the department, at least

2-23     quarterly and until final disposition of the complaint, shall

2-24     notify the parties to the complaint of the status of the complaint

2-25     unless notice would jeopardize an undercover investigation.]

2-26           Sec. 40.0041.  COMPLAINT PROCESS.  (a)  The department shall

2-27     develop and implement a uniform process for receiving and resolving

 3-1     complaints against the department throughout the state.  The

 3-2     process shall include:

 3-3                 (1)  statewide procedures through which the public,

 3-4     consumers, and service recipients are informed:

 3-5                       (A)  of the right to make a complaint against the

 3-6     department, including the mailing addresses and telephone numbers

 3-7     of appropriate department personnel responsible for receiving

 3-8     complaints and providing related assistance; and

 3-9                       (B)  of the department's procedures for resolving

3-10     a complaint, including the right to appeal a decision made at the

3-11     local level;

3-12                 (2)  development and statewide distribution of a form

3-13     that may be used to make a complaint;

3-14                 (3)  a requirement that the department provide

3-15     information by mail regarding the department's procedures for

3-16     investigating and resolving a complaint to each person who:

3-17                       (A)  makes a complaint; or

3-18                       (B)  is named in a complaint; and

3-19                 (4)  a requirement that the department provide status

3-20     information at least quarterly to a person with a pending written

3-21     complaint against the department and to each person named in the

3-22     complaint, unless the information would jeopardize an undercover

3-23     investigation.

3-24           (b)  In addition to other appropriate methods, the department

3-25     may provide the information specified by Subsection (a)(1):

3-26                 (1)  on each registration form, application, or written

3-27     contract for services of a person regulated by the department;

 4-1                 (2)  on a sign prominently displayed in the place of

 4-2     business of each person regulated by the department; or

 4-3                 (3)  in a bill for service provided by a person

 4-4     regulated by the department.

 4-5           (c)  The department shall keep an information file about each

 4-6     complaint made against the department that the department has

 4-7     authority to resolve.

 4-8           (d)  The executive director shall develop a consistent,

 4-9     statewide process for addressing an appeal by a person dissatisfied

4-10     with the resolution of a complaint at the regional level.  The

4-11     process may not include the hearing of an appeal by the

4-12     department's ombudsman office.

4-13           (e)  The department shall develop and maintain a centralized

4-14     tracking system to gather information concerning all complaints

4-15     made against the department throughout the state.  The department

4-16     shall require its personnel to provide information regarding each

4-17     complaint for inclusion in records maintained under the tracking

4-18     system at the department's state headquarters, regardless of the

4-19     location or level at which the complaint is initiated or resolved.

4-20     The department shall require at least the following information to

4-21     be maintained for each complaint:

4-22                 (1)  the date the complaint is received;

4-23                 (2)  the name of the person making the complaint;

4-24                 (3)  the subject matter of the complaint;

4-25                 (4)  a record of all persons contacted by the

4-26     department in relation to the complaint;

4-27                 (5)  a summary of the results of the review or

 5-1     investigation of the complaint; and

 5-2                 (6)  for each complaint determined by the department to

 5-3     require no corrective action, an explanation of the reason that the

 5-4     complaint was closed without action.

 5-5           (f)  The department shall periodically prepare and deliver

 5-6     reports to the board and the executive director regarding the

 5-7     number, type, and resolution of complaints made in the state

 5-8     against the department.

 5-9           SECTION 3.  Subchapter A, Chapter 40, Human Resources Code,

5-10     is amended by adding Section 40.008 to read as follows:

5-11           Sec. 40.008.  PROGRAM ACCESSIBILITY.  The department shall

5-12     comply with federal and state laws related to program and facility

5-13     accessibility.  The department shall also prepare and maintain a

5-14     written plan that describes how a person who does not speak English

5-15     can be provided reasonable access to the department's programs and

5-16     services.

5-17           SECTION 4.  Section 40.021(a), Human Resources Code, is

5-18     amended to read as follows:

5-19           (a)  The board is composed of six members appointed by the

5-20     governor with the advice and consent of the senate.  The governor

5-21     shall [annually] designate one member to be the presiding officer

5-22     of the board to serve in that capacity at the pleasure of the

5-23     governor.

5-24           SECTION 5.  Section 40.022, Human Resources Code, is amended

5-25     to read as follows:

5-26           Sec. 40.022.  Restrictions on Board Appointment or

5-27     Membership.  (a)  A person is not eligible for appointment as a

 6-1     member of the board if the person or the person's spouse:

 6-2                 (1)  is a person who is employed by or participates in

 6-3     the management of a business entity or other organization regulated

 6-4     by the department or receiving funds [a substantial amount of

 6-5     money] from the department;

 6-6                 (2)  owns or controls, directly or indirectly, more

 6-7     than a 10 percent interest in a business entity or other

 6-8     organization that is regulated by the department or that receives

 6-9     funds [money] from the department;

6-10                 (3)  uses or receives a substantial amount of tangible

6-11     goods, services, or money from the department, other than

6-12     compensation or reimbursement authorized by law for board

6-13     membership, attendance, or expenses [incurred as a board member],

6-14     or as a client or a parent or guardian of a client receiving

6-15     services from the department; or

6-16                 (4)  is an employee, officer, or paid consultant of a

6-17     trade association in a field under the jurisdiction of the

6-18     department.

6-19           (b)  In addition to the requirements of Subsection (a), a

6-20     person is not eligible for appointment as a public member of the

6-21     board if the person or the person's spouse is registered,

6-22     certified, or licensed by an occupational regulatory agency in a

6-23     field under the jurisdiction of the department. [A person who is

6-24     required to register as a lobbyist under Chapter 305, Government

6-25     Code, because of the person's activities for compensation in or for

6-26     a profession related to the operation of the department may not

6-27     serve as a member of the board.]

 7-1           SECTION 6.  Subchapter B, Chapter 40, Human Resources Code,

 7-2     is amended by adding Section 40.0225 to read as follows:

 7-3           Sec. 40.0225.  RESTRICTIONS ON BOARD MEMBERS AND EMPLOYEES.

 7-4     (a)  An officer, employee, or paid consultant of a Texas trade

 7-5     association in a field under the jurisdiction of the department may

 7-6     not be a member of the board or an employee of the department who

 7-7     is exempt from the state's position classification plan or is

 7-8     compensated at or above the amount prescribed by the General

 7-9     Appropriations Act for step 1, salary group 17, of the position

7-10     classification salary schedule.

7-11           (b)  A person who is the spouse of an officer, manager, or

7-12     paid consultant of a Texas trade association in a field under the

7-13     jurisdiction of the department may not be a member of the board and

7-14     may not be an employee of the department who is exempt from the

7-15     state's position classification plan or is compensated at or above

7-16     the amount prescribed by the General Appropriations Act for step 1,

7-17     salary group 17, of the position classification salary schedule.

7-18           (c)  A person may not serve as a member of the board or act

7-19     as the general counsel to the board or the department if the person

7-20     is required to register as a lobbyist under Chapter 305, Government

7-21     Code, because of the person's activities for compensation on behalf

7-22     of a profession related to the operation of the department.

7-23           (d)  For the purposes of this section, a Texas trade

7-24     association is a nonprofit, cooperative, and voluntarily joined

7-25     association of business or professional competitors in this state

7-26     designed to assist its members and its industry or profession in

7-27     dealing with mutual business or professional problems and in

 8-1     promoting their common interest.

 8-2           SECTION 7.  Subchapter B, Chapter 40, Human Resources Code,

 8-3     is amended by adding Section 40.0226 to read as follows:

 8-4           Sec. 40.0226.  BOARD MEMBER TRAINING.  (a)  Before a member

 8-5     of the board may assume the member's duties and before the member

 8-6     may be confirmed by the senate, the member must complete at least

 8-7     one course of the training program established under this section.

 8-8           (b)  A training program established under this section shall

 8-9     provide information to the member regarding:

8-10                 (1)  the enabling legislation that created the

8-11     department and the board;

8-12                 (2)  the programs operated by the department;

8-13                 (3)  the role and functions of the department;

8-14                 (4)  the rules of the department, with an emphasis on

8-15     the rules that relate to disciplinary and investigatory authority;

8-16                 (5)  the current budget for the department;

8-17                 (6)  the results of the most recent formal audit of the

8-18     department;

8-19                 (7)  the requirements of the:

8-20                       (A)  open meetings law, Chapter 551, Government

8-21     Code;

8-22                       (B)  open records law, Chapter 552, Government

8-23     Code; and

8-24                       (C)  administrative procedure law, Chapter 2001,

8-25     Government Code;

8-26                 (8)  the requirements of the conflict-of-interest laws

8-27     and other laws relating to public officials; and

 9-1                 (9)  any applicable ethics policies adopted by the

 9-2     board or the Texas Ethics Commission.

 9-3           SECTION 8.  Section 40.028(b), Human Resources Code, is

 9-4     amended to read as follows:

 9-5           (b)  The board shall:

 9-6                 (1)  supervise the executive director's administration

 9-7     and enforcement of the laws of this state that impose duties on the

 9-8     department or board; and

 9-9                 (2)  develop and implement policies that clearly

9-10     separate the policymaking [respective] responsibilities of the

9-11     board and the management responsibilities of the executive director

9-12     and the staff of the department.

9-13           SECTION 9.  Subchapter B, Chapter 40, Human Resources Code,

9-14     is amended by adding Section 40.0305 to read as follows:

9-15           Sec. 40.0305.  STRATEGIC TECHNOLOGY STEERING COMMITTEE.  (a)

9-16     The department shall establish a strategic technology steering

9-17     committee within the department to evaluate major information

9-18     technology project proposals.

9-19           (b)  The steering committee shall consist of the department's

9-20     information resources manager and other department employees

9-21     designated by the executive director from senior management,

9-22     information resources technology staff, and employees who are

9-23     primary users of information resources.  The information resources

9-24     manager shall serve as presiding officer of the committee.

9-25           (c)  In evaluating major information technology project

9-26     proposals, the steering committee shall:

9-27                 (1)  assess the major information needs of the

 10-1    department;

 10-2                (2)  define standard criteria for setting priorities

 10-3    for the department's information needs;

 10-4                (3)  forecast the returns to the department on project

 10-5    investments; and

 10-6                (4)  investigate the department's available information

 10-7    resources.

 10-8          (d)  The steering committee shall make recommendations to the

 10-9    executive director based on the committee's performance of its

10-10    duties.

10-11          SECTION 10.  Section 40.032, Human Resources Code, is amended

10-12    to read as follows:

10-13          Sec. 40.032.  PERSONNEL.  (a)  The executive director may

10-14    employ personnel necessary to administer the department's duties.

10-15          (b)  The executive director or the executive director's

10-16    designated representative shall develop an intradepartmental career

10-17    ladder program that addresses opportunities for mobility and

10-18    advancement for employees within the department.  The program[, one

10-19    part of which] shall require the intradepartmental posting of all

10-20    [non-entry-level] positions concurrently with any public posting.

10-21          (c)  The executive director or the executive director's

10-22    designated representative shall develop a system of annual

10-23    performance evaluations based on measurable job tasks.  All merit

10-24    pay for department employees must be based on the system

10-25    established under this subsection.

10-26          (d)  The executive director or the executive director's

10-27    designated representative shall provide to members of the board and

 11-1    to the department's employees, as often as is necessary,

 11-2    information regarding their qualifications for office or employment

 11-3    under this chapter and their responsibilities under applicable laws

 11-4    relating to standards of conduct for state officers or employees.

 11-5          (e)  The executive director or the executive director's

 11-6    designated representative shall prepare and maintain a written

 11-7    policy statement to ensure implementation of a program of equal

 11-8    employment opportunity under which all personnel transactions are

 11-9    made without regard to race, color, disability, sex, religion, age,

11-10    or national origin.  The policy statement must include:

11-11                (1)  personnel policies, including policies relating to

11-12    recruitment, evaluation, selection, appointment, training, and

11-13    promotion of personnel that comply with Chapter 21, Labor Code;

11-14                (2)  a comprehensive analysis of the department's

11-15    workforce that meets federal and state guidelines;

11-16                (3)  procedures by which a determination can be made

11-17    about the extent of [significant] underuse in the department's

11-18    workforce of all persons for whom federal or state guidelines

11-19    encourage a more equitable balance; and

11-20                (4)  reasonable methods to appropriately address those

11-21    areas of [significant] underuse [in the department's workforce of

11-22    all persons for whom federal or state guidelines encourage a more

11-23    equitable balance].

11-24          (f)  The policy statement required under Subsection (e)

11-25    shall:

11-26                (1)  be filed with the governor's office;

11-27                (2)  [,] cover an annual period;

 12-1                (3)  [, and] be updated at least annually; and

 12-2                (4)  be reviewed by the Commission on Human Rights for

 12-3    compliance with Subsection (e)(1).

 12-4          (g)  The governor's office shall develop and deliver a

 12-5    biennial report to the legislature based on the information

 12-6    submitted under Subsection (f).  The report may be made separately

 12-7    or as a part of other biennial reports made to the legislature.

 12-8          SECTION 11.  Subchapter C, Chapter 40, Human Resources Code,

 12-9    is amended by adding Section 40.0525 to read as follows:

12-10          Sec. 40.0525.  SEPARATION OF INVESTIGATORY AND SERVICE

12-11    DELIVERY FUNCTIONS.  (a)  To the extent feasible, the department

12-12    shall separate the performance of investigations by department

12-13    employees from the delivery of services to clients and their

12-14    families.  The department may take into consideration the needs and

12-15    caseloads in the different regions of the state in developing

12-16    policies for the separation of the department's investigatory and

12-17    service delivery functions.

12-18          (b)  The department shall develop policies and procedures for

12-19    the exchange of information between employees who are responsible

12-20    for performing investigations and employees who are responsible for

12-21    the delivery of services to clients and families.

12-22          (c)  This section does not require the department to

12-23    establish separate departments for investigations and service

12-24    delivery.

12-25          SECTION 12.  Subchapter C, Chapter 40, Human Resources Code,

12-26    is amended by adding Sections 40.0563-40.0565 to read as follows:

12-27          Sec. 40.0563.  COUNTY OUTREACH PROGRAM.  (a)  The department

 13-1    shall develop and implement a standard statewide outreach program

 13-2    under which the department:

 13-3                (1)  informs each county of the availability of federal

 13-4    funds to pay costs of providing child and adult protective services

 13-5    within the county; and

 13-6                (2)  provides technical assistance on request to a

 13-7    county seeking federal funds.

 13-8          (b)  In implementing the program, the department shall:

 13-9                (1)  designate local department personnel responsible

13-10    for performing the functions specified in Subsection (a);

13-11                (2)  designate a statewide coordinator responsible for

13-12    coordinating the activities of local department personnel and

13-13    developing methods of providing information to counties; and

13-14                (3)  develop a database that:

13-15                      (A)  identifies department and county personnel

13-16    involved with the outreach program; and

13-17                      (B)  contains information regarding the date and

13-18    type of assistance provided by the department to each county.

13-19          (c)  The department, in consultation with the Legislative

13-20    Budget Board, shall ensure that a record is maintained of the

13-21    amount of funding for child and adult protective services that each

13-22    county receives directly from the federal government.

13-23          Sec. 40.0564.  DEPARTMENT FUNDS.  All money paid to the

13-24    department under this chapter is subject to Subchapter F, Chapter

13-25    404, Government Code.

13-26          Sec. 40.0565.  REPORT.  On or before November 1 of each year,

13-27    the department shall file with the governor and the presiding

 14-1    officer of each house of the legislature a complete and detailed

 14-2    written report accounting for all funds received and disbursed by

 14-3    the department during the preceding fiscal year.  The annual report

 14-4    must meet the reporting requirements applicable to financial

 14-5    reporting in the General Appropriations Act.

 14-6          SECTION 13.  Section 40.058, Human Resources Code, is amended

 14-7    to read as follows:

 14-8          Sec. 40.058.  Contracts and Agreements.  (a)  The department

 14-9    may enter into contracts or agreements with any person, including a

14-10    federal, state, or other public or private agency, as necessary to

14-11    perform any of the department's powers or duties.

14-12          (b)  A contract for the purchase of program-related client

14-13    services must include:

14-14                (1)  clearly defined goals and outcomes that can be

14-15    measured to determine whether the objectives of the program are

14-16    being achieved;

14-17                (2)  clearly defined sanctions or penalties for

14-18    noncompliance with contract terms; and

14-19                (3)  clearly specified accounting, reporting, and

14-20    auditing requirements applicable to money received under the

14-21    contract.

14-22          (c)  The department shall monitor a contractor's performance

14-23    under a contract for the purchase of program-related client

14-24    services.  In monitoring performance, the department shall:

14-25                (1)  use a risk-assessment methodology to ensure

14-26    compliance with financial and performance requirements under the

14-27    contract; and

 15-1                (2)  obtain and evaluate program cost information to

 15-2    ensure that all costs, including administrative costs, are

 15-3    reasonable and necessary to achieve program objectives.

 15-4          (d)  An agreement made under this section is not subject to

 15-5    Chapter 771, Government Code.

 15-6          SECTION 14.  Subchapter C, Chapter 40, Human Resources Code,

 15-7    is amended by adding Sections 40.066 and 40.067 to read as follows:

 15-8          Sec. 40.066.  COOPERATION WITH STATE OFFICE OF ADMINISTRATIVE

 15-9    HEARINGS.  (a)  Except as provided by Subsection (e), the

15-10    department and the chief administrative law judge of the State

15-11    Office of Administrative Hearings by rule shall adopt a memorandum

15-12    of understanding under which the State Office of Administrative

15-13    Hearings, on behalf of the department, conducts all contested case

15-14    hearings under the administrative procedure law, Chapter 2001,

15-15    Government Code, authorized or required by law to be conducted by

15-16    the department.

15-17          (b)  The memorandum of understanding shall require the chief

15-18    administrative law judge, the department, and the executive

15-19    director to cooperate in connection with a  contested case hearing

15-20    and may authorize the State Office of Administrative Hearings to

15-21    perform any administrative act, including giving of notice, that is

15-22    required to be performed by the department or executive director.

15-23          (c)  The administrative law judge who conducts a contested

15-24    case hearing for the State Office of Administrative Hearings on

15-25    behalf of the department shall enter the final decision in the case

15-26    after completion of the hearing.

15-27          (d)  The department by interagency contract shall reimburse

 16-1    the State Office of Administrative Hearings for the costs incurred

 16-2    in conducting contested case hearings for the department.  The

 16-3    department may pay an hourly fee for the costs of conducting those

 16-4    hearings or a fixed annual fee negotiated biennially by the

 16-5    department and the State Office of Administrative Hearings to

 16-6    coincide with the department's legislative appropriations request.

 16-7          (e)  This section does not apply to a personnel grievance

 16-8    hearing involving a department employee.

 16-9          Sec. 40.067.  DELIVERY OF SERVICES IN AREAS BORDERING UNITED

16-10    MEXICAN STATES.  The department shall:

16-11                (1)  study issues related to providing child and adult

16-12    protective services in areas bordering the United Mexican States;

16-13                (2)  develop a plan for providing those services in the

16-14    most efficient manner; and

16-15                (3)  pursue and enter into agreements for coordinated

16-16    services, to the extent permissible under federal law, with the

16-17    United Mexican States or any of its political subdivisions.

16-18          SECTION 15.  Subchapter C, Chapter 42, Human Resources Code,

16-19    is amended by adding Section 42.0461 to read as follows:

16-20          Sec. 42.0461.  LICENSES RELATING TO FOSTER CARE.  (a)  Before

16-21    issuing a license to an entity that provides foster care services,

16-22    including a child-care institution, child-placing agency, foster

16-23    group home, and foster family home, or expanding the entity's

16-24    capacity under a license, the department shall:

16-25                (1)  require the applicant or license holder to publish

16-26    notice in compliance with Subsection (b);

16-27                (2)  conduct a public hearing on whether the proposed

 17-1    action should be taken; and

 17-2                (3)  determine:

 17-3                      (A)  the degree of community support for the

 17-4    proposed action;

 17-5                      (B)  the amount of local resources available to

 17-6    support children proposed to be served by the entity;

 17-7                      (C)  the impact of the proposed action on the

 17-8    ratio in the local school district of students enrolled in a

 17-9    special education program to students enrolled in a regular

17-10    education program; and

17-11                      (D)  the impact of the proposed action on the

17-12    local community.

17-13          (b)  An applicant for a license to provide foster care

17-14    services or a license holder seeking expansion of capacity under

17-15    the license shall publish notice of the proposed action in a

17-16    newspaper of general circulation in the community in which the

17-17    foster care services are proposed to be provided.  The notice must

17-18    be published at least one week before the date of the public

17-19    hearing required by Subsection (a) and must include:

17-20                (1)  the name and address of the applicant or license

17-21    holder;

17-22                (2)  the address at which the foster care services are

17-23    proposed to be provided;

17-24                (3)  the date and location of the public hearing; and

17-25                (4)  the name, address, and telephone number of the

17-26    department as the state agency with authority to approve or deny

17-27    the proposed action.

 18-1          (c)  The department may deny a license to an entity seeking

 18-2    to provide foster care services or deny a request to expand such an

 18-3    entity's capacity under a license if the department determines

 18-4    that:

 18-5                (1)  the community in which the foster care services

 18-6    are proposed to be provided does not predominately support the

 18-7    issuance of the license or expansion of capacity;

 18-8                (2)  sufficient local resources are not available in

 18-9    that community to support children proposed to be served by the

18-10    entity;

18-11                (3)  the issuance of the license or expansion of

18-12    capacity would significantly increase the ratio in the local school

18-13    district serving that community of students enrolled in a special

18-14    education program to students enrolled in a  regular education

18-15    program; or

18-16                (4)  the issuance of the license or expansion of

18-17    capacity would have a significant adverse impact on that community.

18-18          (d)  This section does not require:

18-19                (1)  the department to conduct a public hearing or make

18-20    the determinations required by Subsection (a)(3) in connection with

18-21    the renewal of a license that does not involve expanding an

18-22    entity's authorization to provide foster care services; or

18-23                (2)  an applicant for renewal of a license to publish

18-24    notice of the proposed renewal in a newspaper if the application

18-25    does not involve expansion of the applicant's capacity to provide

18-26    foster care services.

18-27          SECTION 16.  Section 42.049(f), Human Resources Code, is

 19-1    amended to read as follows:

 19-2          (f)  A license must be issued if the division determines that

 19-3    a facility meets all requirements.  The evaluation shall be based

 19-4    on one or more visits to the facility and a review of required

 19-5    forms and records.  [A license is valid until revoked or

 19-6    surrendered.]

 19-7          SECTION 17.  Subchapter C, Chapter 42, Human Resources Code,

 19-8    is amended by adding Section 42.0495 to read as follows:

 19-9          Sec. 42.0495.  STAGGERED RENEWAL DATE OF LICENSE.  The board

19-10    by rule may adopt a system under which licenses expire on various

19-11    dates during the year.  For the year in which the license

19-12    expiration date is changed, license fees shall be prorated on a

19-13    monthly basis so that each license holder pays only that portion of

19-14    the license fee that is allocable to the number of months during

19-15    which the license is valid.  On renewal of the license on the new

19-16    expiration date, the total license renewal fee is payable.

19-17          SECTION 18.  Subchapter C, Chapter 42, Human Resources Code,

19-18    is amended by adding Section 42.0505 to read as follows:

19-19          Sec. 42.0505.  RENEWAL OF LICENSE.  (a)  A person who is

19-20    otherwise eligible to renew a license may renew an unexpired

19-21    license by paying the required annual fee to the department before

19-22    the expiration date of the license.  A person whose license has

19-23    expired may not engage in activities that require a license until

19-24    the license has been renewed under the provisions of this section.

19-25          (b)  If the person's license has been expired for 90 days or

19-26    less, the person may renew the license by paying to the department

19-27    1-1/2 times the required annual fee.

 20-1          (c)  If the person's license has been expired for longer than

 20-2    90 days but less than one year, the person may renew the license by

 20-3    paying to the department two times the required annual fee.

 20-4          (d)  If the person's license has been expired for one year or

 20-5    longer, the person may not renew the license.  The person may

 20-6    obtain a new license by complying with the requirements and

 20-7    procedures for obtaining an original license.

 20-8          (e)  If the person was licensed in this state, moved to

 20-9    another state, and is currently licensed and has been in practice

20-10    in the other state for the two years preceding application, the

20-11    person may renew an expired license without reexamination.  The

20-12    person must pay to the department a fee that is equal to two times

20-13    the required annual fee for the license.

20-14          (f)  At least 30 days before the expiration of a person's

20-15    license, the department shall send written notice of the impending

20-16    license expiration to the person at the license holder's last known

20-17    address according to the records of the department.

20-18          SECTION 19.  Subchapter C, Chapter 42, Human Resources Code,

20-19    is amended by adding Section 42.057 to read as follows:

20-20          Sec. 42.057.  COMPETITIVE BIDDING OR ADVERTISING RULES.  (a)

20-21    The board may not adopt rules restricting competitive bidding or

20-22    advertising by a license holder except to prohibit false,

20-23    misleading, or deceptive practices.

20-24          (b)  In its rules to prohibit false, misleading, or deceptive

20-25    practices, the board may not include a rule that:

20-26                (1)  restricts the use of any medium for advertising;

20-27                (2)  restricts the use of a license holder's personal

 21-1    appearance or voice in an advertisement;

 21-2                (3)  relates to the size or duration of an

 21-3    advertisement by the license holder; or

 21-4                (4)  restricts the license holder's advertisement under

 21-5    a trade name.

 21-6          SECTION 20.  Subchapter D, Chapter 42, Human Resources Code,

 21-7    is amended by adding Section 42.0705 to read as follows:

 21-8          Sec. 42.0705.  RANGE OF PENALTIES.  The division shall

 21-9    revoke, suspend, or refuse to renew a license, place on probation a

21-10    person whose license has been suspended, or reprimand a license

21-11    holder for a violation of this chapter or a rule of the board.  If

21-12    a license suspension is probated, the division may require the

21-13    license holder to:

21-14                (1)  report regularly to the division on matters that

21-15    are the basis of the probation;

21-16                (2)  limit practice to the areas prescribed by the

21-17    division; or

21-18                (3)  continue or review professional education until

21-19    the license holder attains a degree of skill satisfactory to the

21-20    division in those areas that are the basis of the probation.

21-21          SECTION 21.  Subchapter D, Chapter 42, Human Resources Code,

21-22    is amended by adding Section 42.0715 to read as follows:

21-23          Sec. 42.0715.  COSTS CHARGED TO FACILITY.  The division shall

21-24    charge a facility for reimbursement of the reasonable cost of

21-25    services provided by the division in formulating, monitoring, and

21-26    implementing a corrective action plan for the facility.

21-27          SECTION 22.  Section 42.072, Human Resources Code, is amended

 22-1    to read as follows:

 22-2          Sec. 42.072.  LICENSE DENIAL, SUSPENSION, OR REVOCATION.  (a)

 22-3    The division may suspend, deny, [or] revoke, or refuse to renew the

 22-4    license or certification of approval of a facility that does not

 22-5    comply with the requirements of this chapter, the standards and

 22-6    rules of the department, or the specific terms of the license or

 22-7    certification.  The division may revoke the probation of a license

 22-8    holder whose license is suspended if the license holder violates a

 22-9    term of the conditions of probation.

22-10          (b)  If the division proposes to take an action under

22-11    Subsection (a), the person is entitled to a hearing conducted by

22-12    the State Office of Administrative Hearings.  Proceedings for a

22-13    disciplinary action are governed by the administrative procedure

22-14    law, Chapter 2001, Government Code.  Rules of practice adopted by

22-15    the board under Section 2001.004, Government Code, applicable to

22-16    the proceedings for a disciplinary action may not conflict with

22-17    rules adopted by the State Office of Administrative Hearings.

22-18          (c)  [The division shall notify the person operating or

22-19    proposing to operate a facility of the reasons for the denial or

22-20    revocation and of the person's right to appeal the decision within

22-21    30 days after receiving the notice.]

22-22          [(c)  A person who wishes to appeal a license denial or

22-23    revocation shall notify the director by certified mail within 30

22-24    days after receiving the notice required in Subsection (b) of this

22-25    section.  The person shall send a copy of the notice of appeal to

22-26    the assigned division representative.]

22-27          [(d)  The denial or revocation of a license or certification

 23-1    and the appeal from that action are governed by the procedure for a

 23-2    contested case hearing under Chapter 2001, Government Code.]

 23-3          [(e)  A person whose license has been denied or revoked may

 23-4    challenge the decision by filing a suit in a district court of

 23-5    Travis County or the county in which the person's facility is

 23-6    located within 30 days after receiving the decision.  The trial

 23-7    shall be de novo.]

 23-8          [(f)  Records of the hearing shall be kept for two years

 23-9    after a decision is rendered.  On request, and at the person's own

23-10    expense, the division shall supply a copy of the verbatim

23-11    transcript of the hearing to a person appealing a license denial or

23-12    revocation in district court.]

23-13          [(g)]  A person may continue to operate a facility during an

23-14    appeal of a disciplinary action [license denial or revocation]

23-15    unless the division has obtained injunctive relief under Section

23-16    42.074 or civil penalties under Section 42.075 or the facility has

23-17    been closed under Section 42.073.

23-18          (d) [(h)]  A person whose license or certification is revoked

23-19    may not apply for any license or certification under this chapter

23-20    before the second anniversary of the date on which the revocation

23-21    takes effect by department or court order.

23-22          SECTION 23.  Subchapter D, Chapter 42, Human Resources Code,

23-23    is amended by adding Section 42.078 to read as follows:

23-24          Sec. 42.078.  ADMINISTRATIVE PENALTY.  (a)  The board may

23-25    impose an administrative penalty against a facility licensed or

23-26    registered under this chapter that violates this chapter or a rule

23-27    or order adopted under this chapter.

 24-1          (b)  The penalty for a violation may be in an amount not to

 24-2    exceed $100.  Each day a violation continues or occurs is a

 24-3    separate violation for purposes of imposing a penalty.

 24-4          (c)  The amount of the penalty shall be based on:

 24-5                (1)  the seriousness of the violation, including the

 24-6    nature, circumstances, extent, and gravity of any prohibited acts,

 24-7    and the hazard or potential hazard created to the health, safety,

 24-8    or economic welfare of the public;

 24-9                (2)  the economic harm to property or the environment

24-10    caused by the violation;

24-11                (3)  the history of previous violations;

24-12                (4)  the amount necessary to deter future violations;

24-13                (5)  efforts to correct the violation; and

24-14                (6)  any other matter that justice may require.

24-15          (d)  If the executive director determines that a violation

24-16    has occurred, the director may issue to the board a report that

24-17    states the facts on which the determination is based and the

24-18    director's recommendation on the imposition of a penalty, including

24-19    a recommendation on the amount of the penalty.

24-20          (e)  Within 14 days after the date the report is issued, the

24-21    executive director shall give written notice of the report to the

24-22    person.  The notice may be given by certified mail.  The notice

24-23    must include a brief summary of the alleged violation and a

24-24    statement of the amount of the recommended penalty and must inform

24-25    the person that the person has a right to a hearing on the

24-26    occurrence of the violation, the amount of the penalty, or both the

24-27    occurrence of the violation and the amount of the penalty.

 25-1          (f)  Within 20 days after the date the person receives the

 25-2    notice, the person in writing may accept the determination and

 25-3    recommended penalty of the executive director or may make a written

 25-4    request for a hearing on the occurrence of the violation, the

 25-5    amount of the penalty, or both the occurrence of the violation and

 25-6    the amount of the penalty.

 25-7          (g)  If the person accepts the determination and recommended

 25-8    penalty of the executive director, the board by order shall approve

 25-9    the determination and impose the recommended penalty.

25-10          (h)  If the person requests a hearing or fails to respond

25-11    timely to the notice, the executive director shall set a hearing

25-12    and give notice of the hearing to the person.  The hearing shall be

25-13    held by an administrative law judge of the State Office of

25-14    Administrative Hearings.  The administrative law judge shall make

25-15    findings of fact and conclusions of law and issue a final decision

25-16    finding that a violation has occurred and imposing a penalty or

25-17    finding that no violation occurred.

25-18          (i)  The notice of the administrative law judge's order given

25-19    to the person under Chapter 2001, Government Code, must include a

25-20    statement of the right of the person to judicial review of the

25-21    order.

25-22          (j)  Within 30 days after the date the administrative law

25-23    judge's order becomes final as provided by Section 2001.144,

25-24    Government Code, the person shall:

25-25                (1)  pay the amount of the penalty;

25-26                (2)  pay the amount of the penalty and file a petition

25-27    for judicial review contesting the occurrence of the violation, the

 26-1    amount of the penalty, or both the occurrence of the violation and

 26-2    the amount of the penalty; or

 26-3                (3)  without paying the amount of the penalty, file a

 26-4    petition for judicial review contesting the occurrence of the

 26-5    violation, the amount of the penalty, or both the occurrence of the

 26-6    violation and the amount of the penalty.

 26-7          (k)  Within the 30-day period, a person who acts under

 26-8    Subsection (j)(3) may:

 26-9                (1)  stay enforcement of the penalty by:

26-10                      (A)  paying the amount of the penalty to the

26-11    court for placement in an escrow account; or

26-12                      (B)  giving to the court a supersedeas bond that

26-13    is approved by the court for the amount of the penalty and that is

26-14    effective until all judicial review of the board's order is final;

26-15    or

26-16                (2)  request the court to stay enforcement of the

26-17    penalty by:

26-18                      (A)  filing with the court a sworn affidavit of

26-19    the person stating that the person is financially unable to pay the

26-20    amount of the penalty and is financially unable to give the

26-21    supersedeas bond; and

26-22                      (B)  giving a copy of the affidavit to the

26-23    executive director by certified mail.

26-24          (l)  On receipt of a copy of an affidavit under Subsection

26-25    (k)(2), the executive director may file with the court, within five

26-26    days after the date the copy is received, a contest to the

26-27    affidavit.  The court shall hold a hearing on the facts alleged in

 27-1    the affidavit as soon as practicable and shall stay the enforcement

 27-2    of the penalty on finding that the alleged facts are true.  The

 27-3    person who files an affidavit has the burden of proving that the

 27-4    person is financially unable to pay the amount of the penalty and

 27-5    to give a supersedeas bond.

 27-6          (m)  If the person does not pay the amount of the penalty and

 27-7    the enforcement of the penalty is not stayed, the executive

 27-8    director may refer the matter to the attorney general for

 27-9    collection of the amount of the penalty.

27-10          (n)  Judicial review of the order of the board:

27-11                (1)  is instituted by filing a petition as provided by

27-12    Subchapter G, Chapter 2001, Government Code; and

27-13                (2)  is under the substantial evidence rule.

27-14          (o)  If the court sustains the occurrence of the violation,

27-15    the court may uphold or reduce the amount of the penalty and order

27-16    the person to pay the full or reduced amount of the penalty.  If

27-17    the court does not sustain the occurrence of the violation, the

27-18    court shall order that no penalty is owed.

27-19          (p)  When the judgment of the court becomes final, the court

27-20    shall proceed under this subsection.  If the person paid the amount

27-21    of the penalty and if that amount is reduced or is not upheld by

27-22    the court, the court shall order that the appropriate amount plus

27-23    accrued interest be remitted to the person.  The rate of the

27-24    interest is the rate charged on loans to depository institutions by

27-25    the New York Federal Reserve Bank, and the interest shall be paid

27-26    for the period beginning on the date the penalty was paid and

27-27    ending on the date the penalty is remitted.  If the person gave a

 28-1    supersedeas bond and if the amount of the penalty is not upheld by

 28-2    the court, the court shall order the release of the bond.  If the

 28-3    person gave a supersedeas bond and if the amount of the penalty is

 28-4    reduced, the court shall order the release of the bond after the

 28-5    person pays the amount.

 28-6          (q)  A penalty collected under this section shall be sent to

 28-7    the comptroller for deposit in the general revenue fund.

 28-8          (r)  All proceedings under this section are subject to

 28-9    Chapter 2001, Government Code.

28-10          SECTION 24.  Chapter 43, Human Resources Code, is amended by

28-11    adding Section 43.0042 to read as follows:

28-12          Sec. 43.0042.  RECOGNITION OF LICENSE ISSUED BY ANOTHER

28-13    STATE.  (a)  The department may waive any prerequisite to obtaining

28-14    a license for an applicant:

28-15                (1)  after reviewing the applicant's credentials and

28-16    determining that the applicant holds a valid license from another

28-17    state that has license requirements substantially equivalent to

28-18    those of this state; or

28-19                (2)  after  determining the applicant has a valid

28-20    license from another state with which this state has a reciprocity

28-21    agreement.

28-22          (b)  The department may enter into an agreement with another

28-23    state to permit licensing by reciprocity.

28-24          SECTION 25.  Chapter 43, Human Resources Code, is amended by

28-25    adding Section 43.0055 to read as follows:

28-26          Sec. 43.0055.  COMPETITIVE BIDDING OR ADVERTISING RULES.  (a)

28-27    The department may not adopt rules restricting competitive bidding

 29-1    or advertising by a license holder except to prohibit false,

 29-2    misleading, or deceptive practices.

 29-3          (b)  In its rules to prohibit false, misleading, or deceptive

 29-4    practices, the department may not include a rule that:

 29-5                (1)  restricts the use of any medium for advertising;

 29-6                (2)  restricts the use of a license holder's personal

 29-7    appearance or voice in an advertisement;

 29-8                (3)  relates to the size or duration of an

 29-9    advertisement by the license holder; or

29-10                (4)  restricts the license holder's advertisement under

29-11    a trade name.

29-12          SECTION 26.  Section 43.006, Human Resources Code, is amended

29-13    to read as follows:

29-14          Sec. 43.006.  Fees.  The board may set and charge fees for

29-15    administering an examination and issuing an initial license, [or]

29-16    renewal license, or provisional license in amounts necessary to

29-17    cover the costs of administering this chapter.

29-18          SECTION 27.  Chapter 43, Human Resources Code, is amended by

29-19    adding Section 43.0081 to read as follows:

29-20          Sec. 43.0081.  PROVISIONAL LICENSE.  (a)  The department may

29-21    issue a provisional license to an applicant licensed in another

29-22    state who applies for a license in this state.  An applicant for a

29-23    provisional license under this section must:

29-24                (1)  be licensed in good standing as a child-care

29-25    administrator for at least two years in another state, the District

29-26    of Columbia, a foreign country, or a territory of the United States

29-27    that has licensing requirements that are substantially equivalent

 30-1    to the requirements of this chapter;

 30-2                (2)  have passed a national or other examination

 30-3    recognized by the department that demonstrates competence in the

 30-4    field of child-care administration; and

 30-5                (3)  be sponsored by a person licensed by the

 30-6    department under this chapter with whom the provisional license

 30-7    holder may practice under this section.

 30-8          (b)  The department may waive the requirement of Subsection

 30-9    (a)(3) for an applicant if the department determines that

30-10    compliance with that subsection constitutes a hardship to the

30-11    applicant.

30-12          (c)  A provisional license is valid until the date the

30-13    department approves or denies the provisional license holder's

30-14    application for a license.  The department shall issue a license

30-15    under this chapter to the provisional license holder if:

30-16                (1)  the provisional license holder passes the

30-17    examination required by Section 43.004;

30-18                (2)  the department verifies that the provisional

30-19    license holder has the academic and experience requirements for a

30-20    license under this chapter; and

30-21                (3)  the provisional license holder satisfies any other

30-22    license requirements under this chapter.

30-23          (d)  The department must complete the processing of a

30-24    provisional license holder's application for a license not later

30-25    than the 180th day after the date the provisional license is

30-26    issued.  The department may extend the 180-day limit if the results

30-27    of the license holder's examination have not been received by the

 31-1    department.

 31-2          SECTION 28.  Chapter 43, Human Resources Code, is amended by

 31-3    adding Section 43.0082 to read as follows:

 31-4          Sec. 43.0082.  STAGGERED RENEWAL DATE OF LICENSE.  The board

 31-5    by rule may adopt a system under which licenses expire on various

 31-6    dates during the year.  For the year in which the license

 31-7    expiration date is changed, license fees shall be prorated on a

 31-8    monthly basis so that each license holder pays only that portion of

 31-9    the license fee that is allocable to the number of months during

31-10    which the license is valid.  On renewal of the license on the new

31-11    expiration date, the total license renewal fee is payable.

31-12          SECTION 29.  Sections 43.009(b)-(f), Human Resources Code,

31-13    are amended to read as follows:

31-14          (b)  The board shall recognize, prepare, or administer

31-15    continuing education programs for license holders.  The continuing

31-16    education requirement may be fulfilled by studies in the areas of

31-17    legal aspects of child care, concepts related to the field of

31-18    social work, or other subjects approved by the department.

31-19          (c)  A person who is otherwise eligible to renew a license

31-20    may renew an unexpired license by paying to the department before

31-21    the expiration date of the license the required renewal fee.  A

31-22    person whose license has expired may not engage in the activities

31-23    that require a license until the license has been renewed under the

31-24    provisions of this section.

31-25          (d)  If a person's license has been expired for 90 days or

31-26    less, the person may renew the license by paying to the department

31-27    one and [the required renewal fee and a fee that is] one-half times

 32-1    the required renewal [of the examination] fee [for the license].

 32-2          (e)  If a person's license has been expired for longer than

 32-3    90 days but less than one year [two years], the person may renew

 32-4    the license by paying to the department two times the required [all

 32-5    unpaid] renewal [fees and a] fee [that is equal to the examination

 32-6    fee for the license].

 32-7          (f)  If a person's license has been expired for one year [two

 32-8    years] or longer, the person may not renew the license.  The person

 32-9    may obtain a new license by submitting to reexamination and

32-10    complying with the requirements and procedures for obtaining an

32-11    original license.  If the [However, the department may renew

32-12    without reexamination an expired license of a] person [who] was

32-13    licensed in this state, moved to another state, and is currently

32-14    licensed and has been in practice in the other state for the two

32-15    years preceding application, the person may renew an expired

32-16    license without reexamination.  The person must pay to the

32-17    department a fee that is equal to two times the required renewal

32-18    [the examination] fee for the license.

32-19          SECTION 30.  Section 43.010, Human Resources Code, is amended

32-20    to read as follows:

32-21          Sec. 43.010.  LICENSE REVOCATION, [OR] SUSPENSION, OR

32-22    REFUSAL;  REPRIMAND OR PROBATION.  (a)  The department shall

32-23    revoke, suspend, or refuse to renew a license, place on probation a

32-24    person whose license has been suspended, or reprimand a license

32-25    holder for a violation by the license holder of this chapter or a

32-26    rule of the board.

32-27          (b)  The department may revoke a license if the license

 33-1    holder is:

 33-2                (1)  convicted of a felony;

 33-3                (2)  convicted of a misdemeanor involving fraud or

 33-4    deceit;

 33-5                (3)  addicted to a dangerous drug or intemperate in the

 33-6    use of alcohol; or

 33-7                (4)  grossly negligent in performing duties as a

 33-8    child-care administrator.

 33-9          (c) [(b)]  The department shall suspend a license, place on

33-10    probation a person whose license has been suspended, or reprimand a

33-11    license holder for a violation of this chapter or a rule of the

33-12    board.

33-13          (d)  If a license suspension is probated, the department may

33-14    require the license holder:

33-15                (1)  to report regularly to the department on the

33-16    conditions [matters that are the basis] of the probation;

33-17                (2)  to limit practice to the areas prescribed by the

33-18    department; or

33-19                (3)  to continue or renew professional education until

33-20    the practitioner attains a degree of skill satisfactory to the

33-21    department in those areas in which improvement is a condition [that

33-22    are the basis] of the probation.

33-23          SECTION 31.  Chapter 43, Human Resources Code, is amended by

33-24    adding Sections 43.0105 and 43.0106 to read as follows:

33-25          Sec. 43.0105.  REVOCATION OF PROBATION.  The department may

33-26    revoke the probation of a license holder whose license is suspended

33-27    if the license holder violates a term of the conditions of

 34-1    probation.

 34-2          Sec. 43.0106.  DISCIPLINARY HEARING.  If the department

 34-3    proposes to suspend, revoke, or refuse to renew a person's license,

 34-4    the person is entitled to a hearing conducted by the State Office

 34-5    of Administrative Hearings.  Proceedings for a disciplinary action

 34-6    are governed by the administrative procedure law, Chapter 2001,

 34-7    Government Code.  Rules of practice adopted by the board under

 34-8    Section 2001.004, Government Code, applicable to the proceedings

 34-9    for a disciplinary action may not conflict with rules adopted by

34-10    the State Office of Administrative Hearings.

34-11          SECTION 32.  Section 48.081, Human Resources Code, is amended

34-12    to read as follows:

34-13          Sec. 48.081.  INVESTIGATION OF REPORTS IN MHMR FACILITIES AND

34-14    IN COMMUNITY CENTERS.  (a)  The  department shall receive and

34-15    investigate reports of the abuse, neglect, or exploitation of an

34-16    individual:

34-17                (1)  receiving services in a facility operated by the

34-18    Texas Department of Mental Health and Mental Retardation; or

34-19                (2)  being provided services through a program under

34-20    contract with a facility operated by the Texas Department of Mental

34-21    Health and Mental Retardation.

34-22          (b)  The department and the Texas Department of Mental Health

34-23    and Mental Retardation shall develop joint rules to facilitate

34-24    investigations in state mental health and mental retardation

34-25    facilities.

34-26          (c)  The department shall receive and investigate a report of

34-27    the alleged abuse, neglect, or exploitation of an individual

 35-1    receiving services in a community center or from a program

 35-2    providing services under contract with a community center.

 35-3          (d)  The department shall forward to a state mental health or

 35-4    mental retardation facility, a community center, or a program

 35-5    providing mental health or mental retardation services under

 35-6    contract with such a facility or community center:

 35-7                (1)  a copy of any report the department receives

 35-8    relating to alleged or suspected abuse, neglect, or exploitation of

 35-9    an individual receiving services from that facility, community

35-10    center, or program; and

35-11                (2)  a copy of the department's investigation findings

35-12    and report.

35-13          (e)  The department's investigation findings may not be

35-14    changed by a superintendent of a state mental health or mental

35-15    retardation facility or a director of a community center. The

35-16    commissioner of the Texas Department of Mental Health and Mental

35-17    Retardation or the commissioner's designee may change the

35-18    department's investigation findings for good cause.  The

35-19    commissioner or designated representative shall inform the

35-20    department in writing of:

35-21                (1)  each case in which the commissioner or designee

35-22    changes the department's findings; and

35-23                (2)  the reasons supporting the decision to change the

35-24    findings.

35-25          (f)  After completion of the appeals process, the department

35-26    shall refer a complaint relating to an investigation conducted by

35-27    the department under this section to the department's ombudsman

 36-1    office for appropriate action.

 36-2          (g) [(f)]  If the department's investigation under this

 36-3    section reveals that an elderly or disabled person has been abused

 36-4    by another person in a manner that constitutes a criminal offense

 36-5    under any law, including Section 22.04, Penal Code, a copy of the

 36-6    investigation shall be submitted to the appropriate law enforcement

 36-7    agency.

 36-8          (h)  The department by rule may assign priorities and

 36-9    prescribe investigative procedures for investigations  conducted by

36-10    the department under this section according to the degree of

36-11    severity and immediacy of the alleged harm to the individual.

36-12    Notwithstanding Section 48.037(a), the department's priorities and

36-13    procedures may provide that an investigation of a report is not

36-14    required to be initiated within 24 hours in all cases.

36-15          (i)  The department and the Texas Department of Mental Health

36-16    and Mental Retardation shall jointly develop and implement a single

36-17    system to track reports and investigations under this section.  To

36-18    facilitate implementation of the system, the department and the

36-19    Texas Department of Mental Health and Mental Retardation shall use

36-20    comparable methods of measuring the number and outcome of reports

36-21    and investigations under this section.

36-22          (j) [(g)]  In this section, "community center" has the

36-23    meaning assigned by Section 531.002, Health and Safety Code.

36-24          SECTION 33.  Section 161.001, Family Code, is amended to read

36-25    as follows:

36-26          Sec. 161.001.  INVOLUNTARY TERMINATION OF PARENT-CHILD

36-27    RELATIONSHIP.  The court may order termination of the parent-child

 37-1    relationship if the court finds by clear and convincing evidence:

 37-2                (1)  that the parent has:

 37-3                      (A)  voluntarily left the child alone or in the

 37-4    possession of another not the parent and expressed an intent not to

 37-5    return;

 37-6                      (B)  voluntarily left the child alone or in the

 37-7    possession of another not the parent without expressing an intent

 37-8    to return, without providing for the adequate support of the child,

 37-9    and remained away for a period of at least three months;

37-10                      (C)  voluntarily left the child alone or in the

37-11    possession of another without providing adequate support of the

37-12    child and remained away for a period of at least six months;

37-13                      (D)  knowingly placed or knowingly allowed the

37-14    child to remain in conditions or surroundings which endanger the

37-15    physical or emotional well-being of the child;

37-16                      (E)  engaged in conduct or knowingly placed the

37-17    child with persons who engaged in conduct which endangers the

37-18    physical or emotional well-being of the child;

37-19                      (F)  failed to support the child in accordance

37-20    with his ability during a period of one year ending within six

37-21    months of the date of the filing of the petition;

37-22                      (G)  abandoned the child without identifying the

37-23    child or furnishing means of identification, and the child's

37-24    identity cannot be ascertained by the exercise of reasonable

37-25    diligence;

37-26                      (H)  voluntarily, and with knowledge of the

37-27    pregnancy, abandoned the mother of the child beginning at a time

 38-1    during her pregnancy with the child and continuing through the

 38-2    birth, failed to provide adequate support or medical care for the

 38-3    mother during the period of abandonment before the birth of the

 38-4    child, and remained apart from the child or failed to support the

 38-5    child since the birth;

 38-6                      (I)  contumaciously refused to submit to a

 38-7    reasonable and lawful order of a court under Chapter 264;

 38-8                      (J)  been the major cause of:

 38-9                            (i)  the failure of the child to be

38-10    enrolled in school as required by the Education Code;  or

38-11                            (ii)  the child's absence from the child's

38-12    home without the consent of the parents or guardian for a

38-13    substantial length of time or without the intent to return;

38-14                      (K)  executed before or after the suit is filed

38-15    an unrevoked or irrevocable affidavit of relinquishment of parental

38-16    rights as provided by this chapter;

38-17                      (L)  been adjudicated to be criminally

38-18    responsible for the death or serious injury of a child;

38-19                      (M)  had his or her parent-child relationship

38-20    terminated with respect to another child based on a finding that

38-21    the parent's conduct was in violation of Paragraph (D) or (E) or

38-22    substantially equivalent provisions of the law of another state;

38-23    [or]

38-24                      (N)  constructively abandoned the child who has

38-25    been in the permanent or temporary managing conservatorship of the

38-26    Department of Protective and Regulatory Services or an authorized

38-27    agency for not less than six months [one year], and:

 39-1                            (i)  the department or authorized agency

 39-2    has made reasonable efforts to return the child to the parent;

 39-3                            (ii)  the parent has not regularly visited

 39-4    or maintained significant contact with the child; and

 39-5                            (iii)  the parent has demonstrated an

 39-6    inability to provide the child with a safe environment; or

 39-7                      (O)  failed to comply with the provisions of a

 39-8    court order that specifically established the actions necessary for

 39-9    the parent to obtain the return of the child who has been in the

39-10    permanent or temporary managing conservatorship of the Department

39-11    of Protective and Regulatory Services for not less than nine months

39-12    as a result of the child's removal from the parent under Chapter

39-13    262 for the abuse or neglect of the child; and

39-14                (2)  that termination is in the best interest of the

39-15    child.

39-16          SECTION 34.  Section 261.001, Family Code, is amended by

39-17    adding Subdivision (7) to read as follows:

39-18                (7)  "Board" means the Board of Protective and

39-19    Regulatory Services.

39-20          SECTION 35.  Subchapter D, Chapter 261, Family Code, is

39-21    amended by adding Section 261.3015 to read as follows:

39-22          Sec. 261.3015.  FLEXIBLE RESPONSE SYSTEM.  (a) In assigning

39-23    priorities and prescribing investigative procedures based on the

39-24    severity and immediacy of the alleged harm to a child under Section

39-25    261.301(d), the board by rule shall establish a flexible response

39-26    system to allow the department to allocate resources by

39-27    investigating serious cases of abuse and neglect and providing

 40-1    assessment and family preservation services in less serious cases.

 40-2          (b)  The classification under the flexible response system of

 40-3    a case may be changed as warranted by the circumstances.

 40-4          (c)  The department may implement the flexible response

 40-5    system by establishing a pilot program in a single department

 40-6    service region.  The department shall study the results of the

 40-7    system in the region in determining the method by which to

 40-8    implement the system statewide.

 40-9          SECTION 36.  Section 261.311, Family Code, is amended to read

40-10    as follows:

40-11          Sec. 261.311.  [NOTICE OF] INTERVIEW OR EXAMINATION OF CHILD.

40-12    (a)  The department or the designated agency shall interview or

40-13    examine a child who is the subject of a report of suspected child

40-14    abuse or neglect.

40-15          (b)  When [If] during an investigation[,] a representative of

40-16    the department or the designated agency conducts an interview with

40-17    or an examination of a child, the department or designated agency

40-18    shall make a reasonable effort before 24 hours after the time of

40-19    the interview or examination to notify each parent of the child and

40-20    the child's legal guardian, if one has been appointed, of the

40-21    nature of the allegation and of the fact that the interview or

40-22    examination was conducted.

40-23          (c)  The notice required by Subsection (b) is not required if

40-24    the department or agency determines that the notice is likely to

40-25    endanger the safety of the child who is the subject of the report,

40-26    the person who made the report, or any other person who

40-27    participates in the investigation of the report.

 41-1          (d)  The notice required by Subsection (b) may be delayed at

 41-2    the request of a law enforcement agency if notification during the

 41-3    required time would interfere with an ongoing criminal

 41-4    investigation.

 41-5          SECTION 37.  Subchapter D, Chapter 261, Family Code, is

 41-6    amended by adding Section 261.315 to read as follows:

 41-7          Sec. 261.315.  REMOVAL OF CERTAIN INVESTIGATION INFORMATION

 41-8    FROM RECORDS.  (a)  The department shall remove from the

 41-9    department's records information about a person who is alleged in a

41-10    report to have abused or neglected a child and who the department

41-11    determines after an investigation under this subchapter did not

41-12    commit abuse or neglect.

41-13          (b)  The board shall adopt rules necessary to administer this

41-14    section.

41-15          SECTION 38.  Section 262.109(a), Family Code, is amended to

41-16    read as follows:

41-17          (a)  The department or other agency must give written notice

41-18    as prescribed by this section to each parent of the child or to the

41-19    child's [parent,] conservator[,] or legal guardian when a

41-20    representative of the Department of Protective and Regulatory

41-21    Services or other agency takes possession of a child under this

41-22    chapter.

41-23          SECTION 39.  Section 262.201(c), Family Code, is amended to

41-24    read as follows:

41-25          (c)  If the court finds sufficient evidence to satisfy a

41-26    person of ordinary prudence and caution that there is a continuing

41-27    danger to the physical health or safety of the child and for the

 42-1    child to remain in the home is contrary to the welfare of the

 42-2    child, the court shall:

 42-3                (1)  issue an appropriate temporary order under Chapter

 42-4    105; and

 42-5                (2)  inform each parent in open court that parental and

 42-6    custodial rights and duties may be subject to restriction or to

 42-7    termination unless the parent or parents are willing and able to

 42-8    provide the child with a safe environment.

 42-9          SECTION 40.  Subchapter A, Chapter 263, Family Code, is

42-10    amended by adding Sections 263.006 and 263.007 to read as follows:

42-11          Sec. 263.006.  WARNING TO PARENTS.  At the status hearing

42-12    under Subchapter C and at each permanency hearing under Subchapter

42-13    D held after the court has rendered a temporary order  appointing

42-14    the department as temporary managing conservator, the court shall

42-15    inform each parent in open court that  parental and custodial

42-16    rights and duties may be subject to restriction or to termination

42-17    unless the parent or parents are willing and able to provide the

42-18    child with a safe environment.

42-19          Sec. 263.007.  DISMISSAL AFTER ONE YEAR.  (a)  Unless the

42-20    court has rendered a final order or granted an extension under

42-21    Subsection (b), on the first Monday after the first anniversary of

42-22    the date the court rendered a temporary order appointing the

42-23    department as temporary managing conservator, the court shall

42-24    dismiss the suit affecting the parent-child relationship filed by

42-25    the department that requests termination of the parent-child

42-26    relationship or requests that the department be named conservator

42-27    of the child.

 43-1          (b)  On or before the time described by Subsection (a) for

 43-2    the dismissal of the suit, the court may extend the court's

 43-3    jurisdiction of the suit for a period stated in the extension

 43-4    order, but not longer than 180 days after the time described by

 43-5    Subsection (a), if the court has continuing jurisdiction of the

 43-6    suit and the appointment of the department as temporary managing

 43-7    conservator is in the best interest of the child.  If the court

 43-8    grants an extension, the extension order must also:

 43-9                (1)  schedule the new date for dismissal of the suit;

43-10    and

43-11                (2)  make further temporary orders for the safety and

43-12    welfare of the child as necessary to avoid further delay in

43-13    resolving the suit.

43-14          (c)  If the court grants an extension, the court shall render

43-15    a final order or dismiss the suit on the date specified in the

43-16    extension order and may not grant an additional extension.

43-17          SECTION 41.  Section 263.201, Family Code, is amended to read

43-18    as follows:

43-19          Sec. 263.201.  STATUS HEARING; TIME.  Not later than the 60th

43-20    day after the date the court renders a temporary order appointing

43-21    the department as temporary managing conservator of a child [of a

43-22    full adversary hearing under Chapter 262], the court shall hold a

43-23    status hearing to review the child's status and the permanency plan

43-24    developed for the child.

43-25          SECTION 42.  The heading of Subchapter D, Chapter 263, Family

43-26    Code, is amended to read as follows:

43-27                SUBCHAPTER D. PERMANENCY [REVIEW] HEARINGS

 44-1          SECTION 43.  Sections 263.301(a) and (b), Family Code, are

 44-2    amended to read as follows:

 44-3          (a)  Notice of a permanency [review] hearing shall be given

 44-4    as provided by Rule 21a, Texas Rules of Civil Procedure, to all

 44-5    persons entitled to notice of the hearing.

 44-6          (b)  The following persons are entitled to at least 10 days'

 44-7    notice of a permanency hearing [to review a child's placement] and

 44-8    are entitled to present evidence and be heard at the hearing:

 44-9                (1)  the department;

44-10                (2)  the foster parent or director of the group home or

44-11    institution where the child is residing;

44-12                (3)  each parent of the child;

44-13                (4)  the managing conservator or guardian of the child;

44-14    [and]

44-15                (5)  an attorney ad litem appointed for the child under

44-16    Chapter 107;

44-17                (6)  a volunteer advocate appointed for the child under

44-18    Chapter 107; and

44-19                (7)  any other person or agency named by the court to

44-20    have an interest in the child's welfare.

44-21          SECTION 44.  Section 263.302, Family Code, is amended to read

44-22    as follows:

44-23          Sec. 263.302.  CHILD'S ATTENDANCE AT HEARING.  The [court may

44-24    dispense with the attendance of the] child shall attend each

44-25    permanency hearing unless the court specifically excuses the

44-26    child's attendance.  Failure by the child to attend a hearing does

44-27    not affect the validity of an order rendered at the [at a placement

 45-1    review] hearing.

 45-2          SECTION 45.  Subchapter D, Chapter 263, Family Code, is

 45-3    amended by adding Section 263.3025 to read as follows:

 45-4          Sec. 263.3025.  PERMANENCY PLAN.  (a)  The department shall

 45-5    prepare a permanency plan for a child for whom the department has

 45-6    been appointed temporary managing conservator.  The department

 45-7    shall give a copy of the plan to each person entitled to notice

 45-8    under Section 263.301(b) not later than the 10th day before the

 45-9    date of the child's first permanency hearing.

45-10          (b)  In addition to the requirements of the department rules

45-11    governing permanency planning, the permanency plan must contain the

45-12    information required to be included in a permanency progress report

45-13    under Section 263.303.

45-14          (c)  The department shall modify the permanency plan for a

45-15    child as required by the circumstances and needs of the child.

45-16          SECTION 46.  Section 263.303, Family Code, is amended to read

45-17    as follows:

45-18          Sec. 263.303.  PERMANENCY PROGRESS [STATUS] REPORT.  (a) Not

45-19    later than the 10th day before the date set for each permanency

45-20    [review] hearing other than the first permanency hearing, the

45-21    department or other authorized agency shall file with the court and

45-22    provide to each party, the child's attorney ad litem, and the

45-23    child's volunteer advocate a permanency progress [status] report

45-24    unless the court orders a different period for providing the report

45-25    [or orders that a report is not required for a specific hearing].

45-26          (b)  The permanency progress [status] report must:

45-27                (1)  recommend that the suit be dismissed; or

 46-1                (2)  recommend that the suit continue and:

 46-2                      (A)  identify the date for dismissal of the suit

 46-3    under this chapter;

 46-4                      (B)  provide:

 46-5                            (i)  the name of any person entitled to

 46-6    notice under Chapter 102 who has not been served;

 46-7                            (ii)  a description of the efforts by the

 46-8    department or another agency to locate and request service of

 46-9    citation; and

46-10                            (iii)  a description of each parent's

46-11    assistance in providing information necessary to locate an unserved

46-12    party;

46-13                      (C)  evaluate [all relevant information

46-14    concerning each of the guidelines under this chapter and] the

46-15    parties' compliance with temporary orders and with the service

46-16    plan;

46-17                      (D)  evaluate whether the child's placement in

46-18    substitute care meets the child's needs and recommend other plans

46-19    or services to meet the child's special needs or circumstances;

46-20                      (E)  describe the permanency plan for the child

46-21    and recommend actions necessary to ensure that a final order

46-22    consistent with that permanency plan is rendered before the date

46-23    for dismissal of the suit under Section 263.007; and

46-24                      (F) [(2)  recommend one of the following actions:]

46-25                      [(A)  that the child be returned to the child's

46-26    home and that the suit be dismissed;]

46-27                      [(B)  that the child be returned to the child's

 47-1    home with the department or other agency retaining conservatorship;]

 47-2                      [(C)  that the child remain in substitute care

 47-3    for a specified period and that the child's parents continue to

 47-4    work toward providing the child with a safe environment;]

 47-5                      [(D)  that the child remain in substitute care

 47-6    for a specified period and that termination of parental rights be

 47-7    sought under this code;]

 47-8                      [(E)  that a child who has resided in substitute

 47-9    care for at least 18 months be placed or remain in permanent or

47-10    long-term substitute care because of the child's special needs or

47-11    circumstances; or]

47-12                      [(F)  that other plans be made or other services

47-13    provided in accordance with the child's special needs or

47-14    circumstances; and]

47-15                [(3)]  with respect to a child 16 years of age or

47-16    older, identify the services needed to assist the child in the

47-17    transition to adult life.

47-18          (c)  A parent whose parental rights are the subject of a suit

47-19    affecting the parent-child relationship, the attorney for that

47-20    parent, or the child's attorney ad litem or guardian ad litem may

47-21    file a response to the department's or other agency's report filed

47-22    under Subsection (b).  A response must be filed not later than the

47-23    third day before the date of the hearing.

47-24          SECTION 47.  Section 263.304, Family Code, is amended to read

47-25    as follows:

47-26          Sec. 263.304.  INITIAL PERMANENCY [REVIEW] HEARING;  TIME.

47-27    Not later than the 180th day after the date the court renders a

 48-1    temporary order appointing the department as temporary managing

 48-2    conservator of a child [of the conclusion of the full adversary

 48-3    hearing under Chapter 262], the court shall hold a permanency

 48-4    hearing to review the status of, and permanency plan for, the [a]

 48-5    child to ensure that a final order consistent with that permanency

 48-6    plan is rendered before the date for dismissal of the suit under

 48-7    Section 263.007 [in substitute care in the court's jurisdiction,

 48-8    including the time for the completion of the plan and the projected

 48-9    date for the achievement of the child's permanency plan].

48-10          SECTION 48.  Section 263.305, Family Code, is amended to read

48-11    as follows:

48-12          Sec. 263.305.  SUBSEQUENT PERMANENCY [REVIEW] HEARINGS.  A

48-13    subsequent permanency hearing [Subsequent review hearings] shall be

48-14    held [not earlier than 5 1/2 months and] not later than the 120th

48-15    day [seven months] after the date of  the last permanency hearing

48-16    in the suit.  For [unless, for] good cause shown or on the court's

48-17    own motion [by a party], the court may order more frequent hearings

48-18    [an earlier hearing is approved by the court].

48-19          SECTION 49.  Section 263.306, Family Code, is amended to read

48-20    as follows:

48-21          Sec. 263.306.  PERMANENCY [REVIEW] HEARINGS:  PROCEDURE.  At

48-22    each permanency [review] hearing the court shall [determine]:

48-23                (1)  identify [the identity of] all persons or parties

48-24    present at the hearing or those given notice but failing to appear;

48-25                (2)  review the efforts of the department or another

48-26    agency in:

48-27                      (A)  attempting to locate all necessary persons;

 49-1                      (B)  requesting service of citation; and

 49-2                      (C)  obtaining the assistance of a parent in

 49-3    providing information necessary to locate an absent parent;

 49-4                (3)  return the child to the parent or parents if

 49-5    [whether] the child's parent or parents are willing and able to

 49-6    provide the child with a safe environment and return of the child

 49-7    is in the child's best interest;

 49-8                (4)  return the child to a person or entity, other than

 49-9    a parent, entitled to service under Chapter 102 if the person or

49-10    entity is willing and able to provide the child with a safe

49-11    environment and the return of the child is in the child's best

49-12    interest;

49-13                (5)  evaluate the department's efforts to identify

49-14    relatives who could provide the child with a safe environment, if

49-15    the child is not returned to a parent or a person or entity, other

49-16    than a parent, entitled to service under Chapter 102;

49-17                (6)  evaluate the parties' compliance with temporary

49-18    orders and the service plan;

49-19                (7) [(3)  the extent to which the child's parents have

49-20    taken the necessary actions or responsibilities toward achieving

49-21    the plan goal during the period of the service plan and the extent

49-22    to which the department or other authorized agency has provided

49-23    assistance to the parents as provided in the service plan;]

49-24                [(4)]  determine whether:

49-25                      (A)  the child continues to need substitute care;

49-26                      (B)  [and whether] the child's current placement

49-27    is appropriate for meeting the child's needs; and

 50-1                      (C)  other plans or services are needed to meet

 50-2    the child's special needs or circumstances;

 50-3                (8)  if the child is placed in institutional care,

 50-4    determine whether efforts have been made to ensure placement of the

 50-5    child in the least restrictive environment consistent with the best

 50-6    interest and special needs of the child;

 50-7                (9)  if the child is 16 years of age or older, order

 50-8    the services that are needed to assist the child in making the

 50-9    transition from substitute care to independent living if the

50-10    services are available in the community;

50-11                (10)  determine plans, services, and further temporary

50-12    orders necessary to ensure that a final order is rendered before

50-13    the date for dismissal of the suit under Section 263.007; and

50-14                (11)  determine the date for dismissal of the suit

50-15    under Section 263.007 and give notice in open court to all parties

50-16    of:

50-17                      (A)  the dismissal date;

50-18                      (B)  the date of the next permanency hearing; and

50-19                      (C)  the date the suit is set for trial.

50-20                [(5)  a date for achieving the child's permanency plan;]

50-21                [(6)  if the child has been in substitute care for not

50-22    less than 18 months, the future status of the child and the

50-23    appropriateness of the date by which the child may return home and

50-24    whether to render further appropriate orders;]

50-25                [(7)  if the child is in substitute care outside the

50-26    state, whether the out-of-state placement continues to be

50-27    appropriate and in the best interest of the child;]

 51-1                [(8)  whether the child's parents are willing and able

 51-2    to provide the child with a safe environment without the assistance

 51-3    of a service plan and, if so, return the child to the parents;]

 51-4                [(9)  whether the child's parents are willing and able

 51-5    to provide the child with a safe environment with the assistance of

 51-6    a service plan and, if so, return the child or continue the

 51-7    placement of the child in the child's home under the department's

 51-8    or other agency's supervision;]

 51-9                [(10)  whether the child's parents are presently

51-10    unwilling or unable to provide the child with a safe environment,

51-11    even with the assistance of a service plan, and, if so, order the

51-12    child to remain under the department's or other agency's managing

51-13    conservatorship for a period of time specified by the court;]

51-14                [(11)  whether a long-term substitute care placement is

51-15    in the child's best interest because of the child's special needs

51-16    or circumstances and, if so, begin a long-term substitute care

51-17    placement and if the child is placed in institutional care, whether

51-18    efforts have been made to ensure placement of the child in the

51-19    least restrictive environment consistent with the best interest and

51-20    special needs of the child;]

51-21                [(12)  whether a child is 16 years of age or older and,

51-22    if so, order the services that are needed to assist the child in

51-23    making the transition from substitute care to independent living if

51-24    the services are available in the community;]

51-25                [(13)  whether the child has been placed with the

51-26    department under a voluntary placement agreement and, if so, order

51-27    that the department will institute further proceedings or return

 52-1    the child to the parents;]

 52-2                [(14)  whether the department or authorized agency has

 52-3    custody, care, and control of the child under an affidavit of

 52-4    relinquishment of parental rights naming the department managing

 52-5    conservator and, if so, direct the department or authorized agency

 52-6    to institute further proceedings; and]

 52-7                [(15)  whether parental rights to the child have been

 52-8    terminated and, if so, determine whether the department or

 52-9    authorized agency will attempt to place the child for adoption.]

52-10          SECTION 50.  Chapter 263, Family Code, is amended by adding

52-11    Subchapter E to read as follows:

52-12                 SUBCHAPTER E.  PLACEMENT REVIEW HEARINGS

52-13          Sec. 263.401.  PLACEMENT REVIEW AFTER FINAL ORDER.  (a)  If

52-14    the department has been named as a child's managing conservator in

52-15    a final order that does not include termination of parental rights,

52-16    the court shall conduct a placement review hearing at least once

52-17    every six months until the child becomes an adult.

52-18          (b)  If the department has been named as a child's managing

52-19    conservator in a final order that terminates a parent's parental

52-20    rights, the court shall conduct a placement review hearing at least

52-21    once every six months until the date the child is adopted or the

52-22    child becomes an adult.

52-23          (c)  Notice of a placement review hearing shall be given as

52-24    provided by Rule 21a, Texas Rules of Civil Procedure, to each

52-25    person entitled to notice of the hearing.

52-26          (d)  The following are entitled to at least 10 days' notice

52-27    of a placement review hearing:

 53-1                (1)  the department;

 53-2                (2)  the foster parent of the child or the director of

 53-3    the group home or institution in which the child is residing;

 53-4                (3)  each parent of the child;

 53-5                (4)  each possessory conservator or guardian of the

 53-6    child;

 53-7                (5)  the attorney ad litem and the volunteer advocate

 53-8    appointed for the child, if the appointments were not dismissed in

 53-9    the final order; and

53-10                (6)  any other person or agency named by the court as

53-11    having an interest in the child's welfare.

53-12          (e)  The court may dispense with the requirement that the

53-13    child attend a placement review hearing.

53-14          Sec. 263.402.  PLACEMENT REVIEW REPORT.  (a)  Not later than

53-15    the 10th day before the date set for a placement review hearing,

53-16    the department or other authorized agency shall file a placement

53-17    review report with the court and provide a copy to each person

53-18    entitled to notice under Section 263.401(d).

53-19          (b)  For good cause shown, the court may order a different

53-20    time for filing the placement review report or may order that a

53-21    report is not required for a specific hearing.

53-22          (c)  The placement review report must:

53-23                (1)  evaluate whether the child's placement is

53-24    appropriate for meeting the child's needs;

53-25                (2)  evaluate whether efforts have been made to ensure

53-26    placement of the child in the least restrictive environment

53-27    consistent with the best interest and special needs of the child if

 54-1    the child is placed in institutional care;

 54-2                (3)  identify the services that are needed to assist a

 54-3    child who is at least 16 years of age in making the transition from

 54-4    substitute care to independent living if the services are available

 54-5    in the community;

 54-6                (4)  identify other plans or services that are needed

 54-7    to meet the child's special needs or circumstances; and

 54-8                (5)  describe the efforts of the department or

 54-9    authorized agency to place the child for adoption if parental

54-10    rights to the child have been terminated and the child is eligible

54-11    for adoption.

54-12          Sec. 263.403.  PLACEMENT REVIEW HEARINGS; PROCEDURE.  At each

54-13    placement review hearing, the court shall determine whether:

54-14                (1)  the child's current placement is appropriate for

54-15    meeting the child's needs;

54-16                (2)  efforts have been made to ensure placement of the

54-17    child in the least restrictive environment consistent with the best

54-18    interest and special needs of the child if the child is placed in

54-19    institutional care;

54-20                (3)  the services that are needed to assist a child who

54-21    is at least 16 years of age in making the transition from

54-22    substitute care to independent living are available in the

54-23    community;

54-24                (4)  other plans or services are needed to meet the

54-25    child's special needs or circumstances; and

54-26                (5)  the department or authorized agency has exercised

54-27    due diligence in attempting to place the child for adoption if

 55-1    parental rights to the child have been terminated and the child is

 55-2    eligible for adoption.

 55-3          SECTION 51.  Subchapter B, Chapter 264, Family Code, is

 55-4    amended by amending Section 264.106 and adding Section 264.1061 to

 55-5    read as follows:

 55-6          Sec. 264.106.  CONTRACTS FOR FOSTER CARE SERVICES [CONTRACT

 55-7    RESIDENTIAL CARE].  (a)  The department shall:

 55-8                (1)  assess the need for foster care services

 55-9    throughout the state; and

55-10                (2)  contract with foster care providers only to the

55-11    extent necessary to meet the need for those services.

55-12          (b)  Before contracting with a foster care provider, the

55-13    department shall determine whether:

55-14                (1)  community resources are available to support

55-15    children placed under the provider's care; and

55-16                (2)  the appropriate public school district has

55-17    sufficient resources to support children placed under the

55-18    provider's care if the children will attend public school.

55-19          (c)  In addition to the requirements of Section 40.058(a),

55-20    Human Resources Code, a contract with a foster care provider must

55-21    include provisions that:

55-22                (1)  enable the department to monitor the effectiveness

55-23    of the provider's services; and

55-24                (2)  authorize the department to terminate the contract

55-25    or impose sanctions for a violation of a provision of the contract

55-26    that specifies performance criteria.

55-27          (d)  In determining whether to contract with a foster care

 56-1    provider, the department shall consider the provider's performance

 56-2    under any previous contract for foster care services between the

 56-3    department and the provider.

 56-4          (e)  In this section, "foster care provider" means a person

 56-5    who provides residential care for children for 24 hours a day,

 56-6    including:

 56-7                (1)  a child-care institution, as defined by Section

 56-8    42.002, Human Resources Code;

 56-9                (2)  a child-placing agency, as defined by Section

56-10    42.002, Human Resources Code; and

56-11                (3)  a foster group home or foster family home, as

56-12    defined by Section 42.002, Human Resources Code [make reasonable

56-13    efforts to ensure that the expenditure of appropriated funds to

56-14    purchase contract residential care for children is allocated to

56-15    providers on a fixed monthly basis if:]

56-16                [(1)  the allocation is cost-effective; and]

56-17                [(2)  the number, type, needs, and conditions of the

56-18    children served are reasonably constant.]

56-19          [(b)  This section does not apply to the purchase of care in

56-20    a foster family home].

56-21          Sec. 264.1061.  FOSTER PARENT PERFORMANCE.  The department

56-22    shall monitor the performance of a foster parent who does not

56-23    provide foster care services through an entity under contract with

56-24    or licensed by the department.  The method under which performance

56-25    is monitored must include the use of objective criteria by which

56-26    the foster parent's performance may be assessed.  The department

56-27    shall include references to the criteria in a written agreement

 57-1    between the department and the foster parent concerning the foster

 57-2    parent's services.

 57-3          SECTION 52.  Section 264.107, Family Code, is amended to read

 57-4    as follows:

 57-5          Sec. 264.107.  Placement of Children.  (a)  In making a

 57-6    placement of a child removed from the home of the child's custodial

 57-7    parent, the department shall consider placing the child in the home

 57-8    of the child's noncustodial parent.

 57-9          (b)  The department shall use a system for the placement of

57-10    children in contract residential care, including foster care, that

57-11    conforms to the levels of care adopted and maintained by the Health

57-12    and Human Services Commission.

57-13          (c) [(b)]  The department shall use the standard application

57-14    for the placement of children in contract residential care as

57-15    adopted and maintained by the Health and Human Services Commission.

57-16          SECTION 53.  Subchapter C, Chapter 264, Family Code, is

57-17    amended by adding Sections 264.206 and 264.207 to read as follows:

57-18          Sec. 264.206.  SEARCH FOR ADOPTIVE PARENTS.  (a)  The

57-19    department shall begin its efforts to locate qualified persons to

57-20    adopt a child, including persons registered with the adoptive

57-21    parent registry under Subchapter B, at the time the department

57-22    decides to petition for the termination of the parent-child

57-23    relationship with regard to the child.

57-24          (b)  The department shall report to the court in which the

57-25    department petitions for termination of the parent-child

57-26    relationship on the child's adoptability and any prospective

57-27    adoptive parents for the child.

 58-1          Sec. 264.207.  DEPARTMENT PLANNING AND ACCOUNTABILITY.  (a)

 58-2    The department shall adopt policies that provide for the

 58-3    improvement of the department's services for children and families.

 58-4    The policies adopted under this section must:

 58-5                (1)  be designed to increase the accountability of the

 58-6    department to individuals who receive services and to the public;

 58-7    and

 58-8                (2)  assure consistency of services provided by the

 58-9    department in the different regions of the state.

58-10          (b)  To accomplish the goals stated in Subsection (a), the

58-11    department shall:

58-12                (1)  emphasize and centralize the monitoring and

58-13    promoting of the permanent placement of children receiving

58-14    department services;

58-15                (2)  establish time frames for the initial screening of

58-16    families seeking to adopt children;

58-17                (3)  establish goals and performance measures in the

58-18    permanent placement of children;

58-19                (4)  seek private licensed child-placing agencies to

58-20    place a child receiving department services who has been available

58-21    for permanent placement for more than 90 days;

58-22                (5)  provide information to private licensed

58-23    child-placing agencies concerning children under Subdivision (4);

58-24                (6)  provide financial incentives for a private

58-25    licensed child-placing agency that places children under

58-26    Subdivision (4) based on the ability of the agency to place the

58-27    child in a short time;

 59-1                (7)  encourage foster parents to be approved by the

 59-2    department as both foster parents and adoptive parents;

 59-3                (8)  provide for evaluating the effectiveness of the

 59-4    department's management-level employees in expeditiously making

 59-5    permanent placements for children;

 59-6                (9)  address failures by the department's service

 59-7    regions in making permanent placements for children in a reasonable

 59-8    time and provide incentives to regions that meet or exceed

 59-9    department goals concerning permanent placements;

59-10                (10)  require the department's service regions to

59-11    participate in the Texas Adoption Resources Exchange; and

59-12                (11)  establish, as feasible, a comprehensive

59-13    assessment center to determine the needs of children and families

59-14    served by the department.

59-15          SECTION 54.  (a)  Sections 263.308 and 263.309, Family Code,

59-16    are repealed.

59-17          (b)  Section 42.050, Human Resources Code, as amended by

59-18    Chapter 1052, Acts of the 70th Legislature, Regular Session, 1987,

59-19    is repealed.

59-20          SECTION 55.  (a)  This Act takes effect September 1, 1997.

59-21          (b)  The Board of Protective and Regulatory Services shall

59-22    adopt rules necessary to administer the changes in law made by this

59-23    Act not later than November 1, 1997.

59-24          (c)  The changes in law made by this Act in the

59-25    qualifications of, and the prohibitions applying to, members of the

59-26    Board of Protective and Regulatory Services do not affect the

59-27    entitlement of a member serving on the board immediately before

 60-1    September 1, 1997, to continue to carry out the functions of the

 60-2    board for the remainder of the member's term.  The changes in law

 60-3    apply only to a member appointed on or after September 1, 1997.

 60-4    This Act does not prohibit a person who is a member of the board on

 60-5    September 1, 1997, from being reappointed to the board if the

 60-6    person has the qualifications required for a member under Chapter

 60-7    40, Human Resources Code, as amended by this Act.

 60-8          (d)  The executive director of the Department of Protective

 60-9    and Regulatory Services shall appoint the members of the strategic

60-10    technology steering committee established by Section 40.0305, Human

60-11    Resources Code, as added by this Act, not later than November 1,

60-12    1997.

60-13          (e)  Except as provided by Section 56 of this Act and

60-14    Subsection (f) of this section, the change in law made by this Act

60-15    relating to a disciplinary proceeding or contested case of the

60-16    Department of Protective and Regulatory Services applies only to a

60-17    proceeding initiated on or after the effective date of this Act.

60-18          (f)  The change in law made by this Act relating to the

60-19    imposition of a penalty or other disciplinary action on a person or

60-20    entity regulated by the Department of Protective and Regulatory

60-21    Services applies only to a violation that occurs on or after the

60-22    effective date of this Act.  A violation that occurs before the

60-23    effective date of this Act is governed by the law in effect on the

60-24    date the violation occurred, and the former law is continued in

60-25    effect for that purpose.

60-26          (g)  The change in law made by this Act relating to the

60-27    qualifications for a license issued by the Department of Protective

 61-1    and Regulatory Services applies only to an application for a

 61-2    license made on or after the effective date of this Act.  An

 61-3    application made before the effective date of this Act is governed

 61-4    by the law in effect on the date the application was made, and the

 61-5    former law is continued in effect for that purpose.

 61-6          (h)  The change in law made by this Act regarding the

 61-7    termination of the parent-child relationship applies only to a suit

 61-8    affecting the parent-child relationship in which termination of the

 61-9    parent-child relationship is sought filed on or after the effective

61-10    date of this Act.  A suit affecting the parent-child relationship

61-11    in which termination of the parent-child relationship is sought

61-12    filed before the effective date of this Act is governed by the law

61-13    in effect on the date the suit was filed, and the former law is

61-14    continued in effect for that purpose.

61-15          SECTION 56.  (a)  The change in law made by this Act relating

61-16    to a contested case hearing conducted by the State Office of

61-17    Administrative Hearings on behalf of the Department of Protective

61-18    and Regulatory Services applies only to a hearing that begins on or

61-19    after January 1, 1998.  Notwithstanding any other provision of this

61-20    Act, a hearing that begins before that date is governed by the law

61-21    in effect at the time the hearing begins, and that law is continued

61-22    in effect for that purpose.

61-23          (b)  The executive director of the Department of Protective

61-24    and Regulatory Services and the chief administrative law judge of

61-25    the State Office of Administrative Hearings may agree to transfer

61-26    contested cases pending before the Department of Protective and

61-27    Regulatory Services to the State Office of Administrative Hearings

 62-1    before January 1, 1998.

 62-2          SECTION 57.  Section 42.0461, Human Resources Code, as added

 62-3    by this Act, applies only to an application for a license or for

 62-4    authorization to expand capacity under a license filed on or after

 62-5    the effective date of this Act.  An application filed before the

 62-6    effective date of this Act is governed by the law in effect at the

 62-7    time the application was filed, and the former law is continued in

 62-8    effect for that purpose.

 62-9          SECTION 58.  The importance of this legislation and the

62-10    crowded condition of the calendars in both houses create an

62-11    emergency and an imperative public necessity that the

62-12    constitutional rule requiring bills to be read on three several

62-13    days in each house be suspended, and this rule is hereby suspended.