By:  Moncrief                                           S.B. No. 65

         97S0009/1 08/30/96                             

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of family homes that care for children

 1-3     that are not the caretaker's own; providing penalties.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subsections (c) and (f), Section 42.052, Human

 1-6     Resources Code, are amended to read as follows:

 1-7           (c)  [A family home that provides care for three or fewer

 1-8     children, excluding the caretaker's own children may register with

 1-9     the division.]  A family home that provides care for one [four] or

1-10     more children, excluding the caretaker's own children, must

1-11     register with the division.  A registration remains valid until

1-12     revoked or surrendered.  The operator of a registered home must

1-13     display the registration in a prominent place at the home.

1-14           (f)  [A family home may not place a public advertisement that

1-15     uses the title "registered family home" or any variation of the

1-16     phrase unless the home is registered with the division under this

1-17     chapter.]  Any public advertisement for a registered family home

1-18     which uses the title "registered family home" must contain a

1-19     provision in bold type stating:  "THIS HOME IS REGISTERED WITH THE

1-20     DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES BUT IS NOT

1-21     LICENSED OR INSPECTED."

1-22           SECTION 2.  Subsection (e), Section 42.054, Human Resources

1-23     Code, as added by Section 3, Chapter 212, Acts of the 69th

 2-1     Legislature, Regular Session, 1985, is amended to read as follows:

 2-2           (e)  The division shall charge each [registered] family home

 2-3     an annual registration fee to cover the department's cost in

 2-4     regulating family homes [of $15].  The division may implement a

 2-5     graduated fee schedule based on the number of children in care in a

 2-6     family home that are not the caretaker's own.  The fee is due on

 2-7     the date on which the division registers the home and on the

 2-8     anniversary of that date.

 2-9           SECTION 3.  Subsection (e), Section 42.054, Human Resources

2-10     Code, as added by Section 6, Chapter 239, Acts of the 69th

2-11     Legislature, Regular Session, 1985, is amended to read as follows:

2-12           (e)  The division shall charge each family home [that is

2-13     registered with the division] an annual registration fee [of $35]

2-14     to cover the department's cost in regulating family homes.  The

2-15     division may implement a graduated fee schedule based on the number

2-16     of children in care in a family home that are not the caretaker's

2-17     own.  The fee is due on the date on which the division registers

2-18     the home and on the anniversary of that date.

2-19           SECTION 4.  Section 42.071, Human Resources Code, is amended

2-20     to read as follows:

2-21           Sec. 42.071.  [LICENSE] SUSPENSION, EVALUATION, OR PROBATION.

2-22     (a)  The division may suspend the license of a facility or the

2-23     registration of a family home that has temporarily ceased operation

2-24     but has definite plans for starting operations again within the

2-25     time limits of the issued license or registration.

 3-1           (b)  The division may suspend a facility's license or a

 3-2     family home's registration for a definite period rather than deny

 3-3     or revoke the license or registration if the division finds

 3-4     repeated noncompliance with standards that do not endanger the

 3-5     health and safety of children.  To qualify for license or

 3-6     registration suspension under this subsection, a facility or family

 3-7     home must suspend its operations and show that standards can be met

 3-8     within the suspension period.

 3-9           (c)  If the division finds a facility or family home is in

3-10     repeated noncompliance with standards that do not endanger the

3-11     health and safety of children, the division may schedule the

3-12     facility or family home for evaluation or probation rather than

3-13     suspend or revoke the facility's license or the family home's

3-14     registration.  The division shall provide notice to the facility or

3-15     family home of the evaluation or probation and of the items of

3-16     noncompliance not later than the 10th day before the evaluation or

3-17     probation period begins.  The division shall designate a period of

3-18     not less than 30 days during which the facility or family home will

3-19     remain under evaluation.  During the evaluation or probation

3-20     period, the facility or family home must correct the items that

3-21     were in noncompliance and report the corrections to the division

3-22     for approval.

3-23           (d)  The division shall revoke the license of a facility or

3-24     the registration of a family home that does not comply with

3-25     standards at the end of a license or registration suspension.

 4-1           (e)  The division may suspend or revoke the license of a

 4-2     facility or the registration of a family home that does not correct

 4-3     items that were in noncompliance or that does not comply with

 4-4     required standards within the applicable evaluation or probation

 4-5     period.

 4-6           SECTION 5.  Section 42.072, Human Resources Code, is amended

 4-7     to read as follows:

 4-8           Sec. 42.072.  [LICENSE] DENIAL OR REVOCATION.  (a)  The

 4-9     division may deny or revoke the license or certification of

4-10     approval of a facility or the registration of a family home that

4-11     does not comply with the requirements of this chapter, the

4-12     standards and rules of the department, or the specific terms of the

4-13     license, [or] certification, or registration.

4-14           (b)  The division shall notify the person operating or

4-15     proposing to operate a facility or family home of the reasons for

4-16     the denial or revocation and of the person's right to appeal the

4-17     decision within 30 days after receiving the notice.

4-18           (c)  A person who wishes to appeal a license or registration

4-19     denial or revocation shall notify the director by certified mail

4-20     within 30 days after receiving the notice required in Subsection

4-21     (b) [of this section].  The person shall send a copy of the notice

4-22     of appeal to the assigned division representative.

4-23           (d)  The denial or revocation of a license, [or]

4-24     certification, or registration and the appeal from that action are

4-25     governed by the procedure for a contested case hearing under

 5-1     Chapter 2001, Government Code.

 5-2           (e)  A person whose license or registration has been denied

 5-3     or revoked may challenge the decision by filing a suit in a

 5-4     district court of Travis County or the county in which the person's

 5-5     facility or family home that is the subject of the license or

 5-6     registration is located within 30 days after receiving the

 5-7     decision.  The trial shall be de novo.

 5-8           (f)  Records of the hearing shall be kept for two years after

 5-9     a decision is rendered.  On request, and at the person's own

5-10     expense, the division shall supply a copy of the verbatim

5-11     transcript of the hearing to a person appealing a license or

5-12     registration denial or revocation in district court.

5-13           (g)  A person may continue to operate a facility or family

5-14     home during an appeal of a license or registration denial or

5-15     revocation unless the division has obtained injunctive relief under

5-16     Section 42.074 or civil penalties under Section 42.075 or the

5-17     facility or family home has been closed under Section 42.073.

5-18           (h)  A person whose license, [or] certification, or

5-19     registration is revoked may not apply for any license, [or]

5-20     certification, or registration under this chapter before the second

5-21     anniversary of the date on which the revocation takes effect by

5-22     department or court order.

5-23           SECTION 6.  Section 42.073, Human Resources Code, is amended

5-24     to read as follows:

5-25           Sec. 42.073.  EMERGENCY SUSPENSION AND CLOSURE [OF A

 6-1     FACILITY].  (a)  The division shall suspend a facility's license or

 6-2     a family home's registration, order the immediate closing of the

 6-3     facility or family home, and place the children attending or

 6-4     residing in the facility or attending the home elsewhere if:

 6-5                 (1)  the division finds the facility or family home is

 6-6     operating in violation of the standards prescribed by this chapter;

 6-7     and

 6-8                 (2)  the violation creates an immediate threat to the

 6-9     health and safety of the children attending or residing in the

6-10     facility or attending the family home.

6-11           (b)  An order suspending a license or registration and

6-12     closing a facility or family home under this section is immediately

6-13     effective on the date on which the license or registration holder

6-14     receives written notice or on a later date specified in the order.

6-15           (c)  An order is valid for 10 days after the effective date

6-16     of the order.

6-17           (d)  The suspension of a license or registration and the

6-18     closure of the facility or family home and the appeal from that

6-19     action are governed by the procedures for a contested case hearing

6-20     under Chapter 2001, Government Code.

6-21           SECTION 7.  Subsections (a) and (c), Section 42.074, Human

6-22     Resources Code, are amended to read as follows:

6-23           (a)  When it appears that a person has violated, is

6-24     violating, or is threatening to violate the licensing,

6-25     certification, or registration requirements of this chapter or the

 7-1     department's licensing, certification, or registration rules and

 7-2     standards, the division may file a suit in a district court in

 7-3     Travis County or in the county where the facility or family home is

 7-4     located for assessment and recovery of civil penalties under

 7-5     Section 42.075 [of this code], for injunctive relief, including a

 7-6     temporary restraining order, or for both injunctive relief and

 7-7     civil penalties.

 7-8           (c)  At the division's request, the attorney general or the

 7-9     county or district attorney of the county in which the facility or

7-10     family home is located shall conduct a suit in the name of the

7-11     State of Texas for injunctive relief, to recover the civil penalty,

7-12     or for both injunctive relief and civil penalties as authorized by

7-13     Subsection (a) [of this section].

7-14           SECTION 8.  Subsection (a), Section 42.075, Human Resources

7-15     Code, is amended to read as follows:

7-16           (a)  A person is subject to a civil penalty of not less than

7-17     $50 nor more than $100 for each day of violation and for each act

7-18     of violation if the person:

7-19                 (1)  threatens serious harm to a child in a facility or

7-20     family home by violating a provision of this chapter or a

7-21     department rule or standard;

7-22                 (2)  violates a provision of this chapter or a

7-23     department rule or standard three or more times within a 12-month

7-24     period; or

7-25                 (3)  places a public advertisement for an unlicensed

 8-1     facility or unregistered family home.

 8-2           SECTION 9.  Subsections (a) and (b), Section 42.076, Human

 8-3     Resources Code, are amended to read as follows:

 8-4           (a)  A person who operates a family home, child-care

 8-5     facility, or child-placing agency without the required registration

 8-6     or [a] license commits a Class B misdemeanor.

 8-7           (b)  A person who places a public advertisement for an

 8-8     unregistered family home or unlicensed facility commits a Class C

 8-9     misdemeanor.

8-10           SECTION 10.  Section 42.077, Human Resources Code, is amended

8-11     to read as follows:

8-12           Sec. 42.077.  NOTICE OF ACTION AGAINST FACILITY OR HOME.

8-13     (a)  If the department revokes or suspends a facility's license or

8-14     a family home's registration, the department shall publish notice

8-15     of this action in a newspaper of general circulation in the county

8-16     in which the facility or family home is located.  The newspaper

8-17     shall place the notice in the section in which advertisements for

8-18     day-care services are normally published.

8-19           (b)  If a person who operates a facility or family home that

8-20     has had its license or registration revoked or suspended later

8-21     applies for a new license or registration to operate the same

8-22     facility or family home, the department shall charge the person an

8-23     application fee in an amount necessary to reimburse the department

8-24     for the cost of the notice relating to that facility or family

8-25     home.

 9-1           (c)  The department shall pay for publication of the notice

 9-2     from funds appropriated to the department for licensing and

 9-3     regulating child-care facilities and for registering and regulating

 9-4     family homes and from appeal and application fees collected under

 9-5     Subsection (b) [of this section] and appropriated to the

 9-6     department.

 9-7           (d)  A facility or family home that has its license or

 9-8     registration revoked or suspended shall mail notification of this

 9-9     action by certified mail to the parents or guardian of the child

9-10     served by the facility or family home.  The facility or family home

9-11     shall mail the notification within five days of the effective date

9-12     of the license or registration revocation or suspension.

9-13           SECTION 11.  The importance of this legislation and the

9-14     crowded condition of the calendars in both houses create an

9-15     emergency and an imperative public necessity that the

9-16     constitutional rule requiring bills to be read on three several

9-17     days in each house be suspended, and this rule is hereby suspended,

9-18     and that this Act take effect and be in force from and after its

9-19     passage, and it is so enacted.