By:  Brown                                             S.B. No. 359

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     Protective and Regulatory Services, the provision of services to

 1-3     children and families, and suits affecting the parent-child

 1-4     relationship; providing penalties.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 40.003, Human Resources Code, is amended

 1-7     to read as follows:

 1-8           Sec. 40.003.  SUNSET PROVISION.  The Department of Protective

 1-9     and Regulatory Services is subject to Chapter 325, Government Code

1-10     (Texas Sunset Act).  Unless continued in existence as provided by

1-11     that chapter, the department is abolished and this chapter expires

1-12     September 1, 2009 [1997].

1-13           SECTION 2.  Subchapter A, Chapter 40, Human Resources Code,

1-14     is amended by amending Section 40.004 and adding Section 40.0041 to

1-15     read as follows:

1-16           Sec. 40.004.  PUBLIC INTEREST INFORMATION [AND COMPLAINTS].

1-17     (a)  The board [department] shall develop and implement policies

1-18     that provide the public with a reasonable opportunity to appear

1-19     before the board [department] and to speak on any issue under the

1-20     jurisdiction of the department.

1-21           (b)  The department shall prepare information of public

1-22     interest describing the functions of the department [and the

1-23     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.]

 3-1           Sec. 40.0041.  COMPLAINT PROCESS.  (a)  The department shall

 3-2     develop and implement a uniform process for receiving and resolving

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

 3-4     process shall include:

 3-5                 (1)  statewide procedures through which the public,

 3-6     consumers, and service recipients are informed:

 3-7                       (A)  of the right to make a complaint against the

 3-8     department, including the mailing addresses and telephone numbers

 3-9     of appropriate department personnel responsible for receiving

3-10     complaints and providing related assistance; and

3-11                       (B)  of the department's procedures for resolving

3-12     a complaint, including the right to appeal a decision made at the

3-13     local level;

3-14                 (2)  development and statewide distribution of a form

3-15     or telephone system that may be used to make a complaint;

3-16                 (3)  a requirement that the department provide

3-17     information by mail or telephone regarding the department's

3-18     procedures for investigating and resolving a complaint to each

3-19     person who makes a complaint; and

3-20                 (4)  a requirement that the department provide status

3-21     information at least quarterly to a person with a pending complaint

3-22     against the department, unless the information would jeopardize an

3-23     undercover investigation.

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

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

 4-1                 (1)  on each registration form, application, or written

 4-2     contract for services of a person regulated by the department;

 4-3                 (2)  on a sign prominently displayed in the place of

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

 4-5                 (3)  in a bill for service provided by a person

 4-6     regulated by the department.

 4-7           (c)  The department shall keep an information file about each

 4-8     complaint made against the department that the department has

 4-9     authority to resolve.

4-10           (d)  The executive director shall develop a consistent,

4-11     statewide process for addressing an appeal by a person dissatisfied

4-12     with the resolution of a complaint at the regional level.  The

4-13     process may not include the ruling on an appeal of a complaint by

4-14     the department's ombudsman office.

4-15           (e)  The department shall develop and maintain a centralized

4-16     tracking system to gather information concerning all complaints

4-17     made against the department throughout the state.  The department

4-18     shall require its personnel to provide information regarding each

4-19     complaint for inclusion in records maintained under the tracking

4-20     system at the department's state headquarters, regardless of the

4-21     location or level at which the complaint is initiated or resolved.

4-22     The department shall require at least the following information to

4-23     be maintained for each complaint:

4-24                 (1)  the date the complaint is received;

4-25                 (2)  the name of the person making the complaint;

 5-1                 (3)  the subject matter of the complaint;

 5-2                 (4)  a record of all persons contacted by the

 5-3     department in relation to the complaint;

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

 5-5     investigation of the complaint; and

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

 5-7     require no corrective action, an explanation of the reason that the

 5-8     complaint was closed without action.

 5-9           (f)  The department shall periodically prepare and deliver

5-10     reports to the board and the executive director regarding the

5-11     number, type, and resolution of complaints made in the state

5-12     against the department.

5-13           SECTION 3.  Subchapter A, Chapter 40, Human Resources Code,

5-14     is amended by adding Section 40.008 to read as follows:

5-15           Sec. 40.008.  PROGRAM ACCESSIBILITY.  The department shall

5-16     comply with federal and state laws related to program and facility

5-17     accessibility.  The department shall also prepare and maintain a

5-18     written plan that describes how a person who does not speak English

5-19     can be provided reasonable access to the department's programs and

5-20     services.

5-21           SECTION 4.  Subsection (a), Section 40.021, Human Resources

5-22     Code, is amended to read as follows:

5-23           (a)  The board is composed of six members appointed by the

5-24     governor with the advice and consent of the senate.  The governor

5-25     shall [annually] designate one member to be the presiding officer

 6-1     of the board to serve in that capacity at the pleasure of the

 6-2     governor.

 6-3           SECTION 5.  Section 40.022, Human Resources Code, is amended

 6-4     to read as follows:

 6-5           Sec. 40.022.  Restrictions on Board Appointment or

 6-6     Membership.  (a)  A person is not eligible for appointment as a

 6-7     member of the board if the person or the person's spouse:

 6-8                 (1)  is a person who is employed by or participates in

 6-9     the management of a business entity or other organization regulated

6-10     by the department or receiving funds [a substantial amount of

6-11     money] from the department;

6-12                 (2)  owns or controls, directly or indirectly, more

6-13     than a 10 percent interest in a business entity or other

6-14     organization that is regulated by the department or that receives

6-15     funds [money] from the department;

6-16                 (3)  uses or receives a substantial amount of tangible

6-17     goods, services, or money from the department, other than

6-18     compensation or reimbursement authorized by law for board

6-19     membership, attendance, or expenses [incurred as a board member],

6-20     or as a client or a parent or guardian of a client receiving

6-21     services from the department; or

6-22                 (4)  is an employee, officer, or paid consultant of a

6-23     trade association in a field under the jurisdiction of the

6-24     department.

6-25           (b)  In addition to the requirements of Subsection (a), a

 7-1     person is not eligible for appointment as a public member of the

 7-2     board if the person or the person's spouse is registered,

 7-3     certified, or licensed by an occupational regulatory agency in a

 7-4     field under the jurisdiction of the department.  [A person who is

 7-5     required to register as a lobbyist under Chapter 305, Government

 7-6     Code, because of the person's activities for compensation in or for

 7-7     a profession related to the operation of the department may not

 7-8     serve as a member of the board.]

 7-9           SECTION 6.  Subchapter B, Chapter 40, Human Resources Code,

7-10     is amended by adding Section 40.0225 to read as follows:

7-11           Sec. 40.0225.  RESTRICTIONS ON BOARD MEMBERS AND EMPLOYEES.

7-12     (a)  An officer, employee, or paid consultant of a Texas trade

7-13     association in a field under the jurisdiction of the department may

7-14     not be a member of the board or an employee of the department who

7-15     is exempt from the state's position classification plan or is

7-16     compensated at or above the amount prescribed by the General

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

7-18     classification salary schedule.

7-19           (b)  A person who is the spouse of an officer, manager, or

7-20     paid consultant of a Texas trade association in a field under the

7-21     jurisdiction of the department may not be a member of the board and

7-22     may not be an employee of the department who is exempt from the

7-23     state's position classification plan or is compensated at or above

7-24     the amount prescribed by the General Appropriations Act for step 1,

7-25     salary group 17, of the position classification salary schedule.

 8-1           (c)  A person may not serve as a member of the board or act

 8-2     as the general counsel to the board or the department if the person

 8-3     is required to register as a lobbyist under Chapter 305, Government

 8-4     Code, because of the person's activities for compensation on behalf

 8-5     of a profession related to the operation of the department.

 8-6           (d)  For the purposes of this section, a Texas trade

 8-7     association is a nonprofit, cooperative, and voluntarily joined

 8-8     association of business or professional competitors in this state

 8-9     designed to assist its members and its industry or profession in

8-10     dealing with mutual business or professional problems and in

8-11     promoting their common interest.

8-12           SECTION 7.  Subchapter B, Chapter 40, Human Resources Code,

8-13     is amended by adding Section 40.0226 to read as follows:

8-14           Sec. 40.0226.  BOARD MEMBER TRAINING.  (a)  Before a member

8-15     of the board may assume the member's duties and before the member

8-16     may be confirmed by the senate, the member must complete at least

8-17     one course of the training program established under this section.

8-18           (b)  A training program established under this section shall

8-19     provide information to the member regarding:

8-20                 (1)  the enabling legislation that created the

8-21     department and the board;

8-22                 (2)  the programs operated by the department;

8-23                 (3)  the role and functions of the department;

8-24                 (4)  the rules of the department, with an emphasis on

8-25     the rules that relate to disciplinary and investigatory authority;

 9-1                 (5)  the current budget for the department;

 9-2                 (6)  the results of the most recent formal audit of the

 9-3     department;

 9-4                 (7)  the requirements of the:

 9-5                       (A)  open meetings law, Chapter 551, Government

 9-6     Code;

 9-7                       (B)  open records law, Chapter 552, Government

 9-8     Code; and

 9-9                       (C)  administrative procedure law, Chapter 2001,

9-10     Government Code;

9-11                 (8)  the requirements of the conflict-of-interest laws

9-12     and other laws relating to public officials; and

9-13                 (9)  any applicable ethics policies adopted by the

9-14     board or the Texas Ethics Commission.

9-15           SECTION 8.  Subsection (b), Section 40.028, Human Resources

9-16     Code, is amended to read as follows:

9-17           (b)  The board shall:

9-18                 (1)  supervise the executive director's administration

9-19     and enforcement of the laws of this state that impose duties on the

9-20     department or board; and

9-21                 (2)  develop and implement policies that clearly

9-22     separate the policymaking [respective] responsibilities of the

9-23     board and the management responsibilities of the executive director

9-24     and the staff of the department.

9-25           SECTION 9.  Subchapter B, Chapter 40, Human Resources Code,

 10-1    is amended by adding Section 40.0305 to read as follows:

 10-2          Sec. 40.0305.  STRATEGIC TECHNOLOGY STEERING COMMITTEE.

 10-3    (a)  The department shall establish a strategic technology steering

 10-4    committee within the department to evaluate major information

 10-5    technology project proposals.

 10-6          (b)  The steering committee shall consist of the department's

 10-7    information resources manager and other department employees

 10-8    designated by the executive director from senior management,

 10-9    information technology staff, and employees who are primary users

10-10    of information resources.  The information resources manager shall

10-11    serve as presiding officer of the committee.

10-12          (c)  The steering committee shall prioritize the department's

10-13    major information technology project proposals and provide

10-14    oversight and coordination of the projects.

10-15          (d)  In evaluating major information technology project

10-16    proposals, the steering committee shall:

10-17                (1)  assess the major information needs of the

10-18    department;

10-19                (2)  define standard criteria for setting priorities

10-20    for the department's information needs;

10-21                (3)  forecast the returns to the department on project

10-22    investments;

10-23                (4)  evaluate the department's available information

10-24    resources; and

10-25                (5)  review, approve, and evaluate the status of

 11-1    projected costs and benefits related to project proposals.

 11-2          (e)  The steering committee shall make recommendations to the

 11-3    executive director based on the committee's performance of its

 11-4    duties.

 11-5          SECTION 10.  Section 40.032, Human Resources Code, is amended

 11-6    to read as follows:

 11-7          Sec. 40.032.  PERSONNEL.  (a)  The executive director may

 11-8    employ personnel necessary to administer the department's duties.

 11-9          (b)  The executive director or the executive director's

11-10    designated representative shall develop an intradepartmental career

11-11    ladder program that addresses opportunities for mobility and

11-12    advancement for employees within the department.  The program[, one

11-13    part of which] shall require the intradepartmental posting of all

11-14    [non-entry-level] positions concurrently with any public posting.

11-15          (c)  The executive director or the executive director's

11-16    designated representative shall develop a system of annual

11-17    performance evaluations based on measurable job tasks.  All merit

11-18    pay for department employees must be based on the system

11-19    established under this subsection.

11-20          (d)  The executive director or the executive director's

11-21    designated representative shall provide to members of the board and

11-22    to the department's employees, as often as is necessary,

11-23    information regarding their qualifications for office or employment

11-24    under this chapter and their responsibilities under applicable laws

11-25    relating to standards of conduct for state officers or employees.

 12-1          (e)  The executive director or the executive director's

 12-2    designated representative shall prepare and maintain a written

 12-3    policy statement to ensure implementation of a program of equal

 12-4    employment opportunity under which all personnel transactions are

 12-5    made without regard to race, color, disability, sex, religion, age,

 12-6    or national origin.  The policy statement must include:

 12-7                (1)  personnel policies, including policies relating to

 12-8    recruitment, evaluation, selection, appointment, training, and

 12-9    promotion of personnel, that comply with Chapter 21, Labor Code;

12-10                (2)  a comprehensive analysis of the department's

12-11    workforce that meets federal and state guidelines;

12-12                (3)  procedures by which a determination can be made

12-13    about the extent of [significant] underuse in the department's

12-14    workforce of all persons for whom federal or state guidelines

12-15    encourage a more equitable balance; and

12-16                (4)  reasonable methods to appropriately address those

12-17    areas of [significant] underuse [in the department's workforce of

12-18    all persons for whom federal or state guidelines encourage a more

12-19    equitable balance].

12-20          (f)  The policy statement required under Subsection (e)

12-21    shall:

12-22                (1)  be filed with the governor's office;

12-23                (2)  [,] cover an annual period;

12-24                (3)  [, and] be updated at least annually; and

12-25                (4)  be reviewed by the Commission on Human Rights for

 13-1    compliance with Subsection (e)(1).

 13-2          (g)  The governor's office shall develop and deliver a

 13-3    biennial report to the legislature based on the information

 13-4    submitted under Subsection (f).  The report may be made separately

 13-5    or as a part of other biennial reports made to the legislature.

 13-6          SECTION 11.  Subchapter C, Chapter 40, Human Resources Code,

 13-7    is amended by adding Section 40.0525 to read as follows:

 13-8          Sec. 40.0525.  SEPARATION OF INVESTIGATORY AND SERVICE

 13-9    DELIVERY FUNCTIONS.  (a)  To the extent feasible, the department

13-10    shall separate the performance of investigations by department

13-11    employees from the delivery of services to clients and their

13-12    families.  The department may take into consideration the needs and

13-13    caseloads in the different programs and regions of the state in

13-14    developing policies for the separation of the department's

13-15    investigatory and service delivery functions.

13-16          (b)  The department shall develop policies and procedures for

13-17    the exchange of information between employees who are responsible

13-18    for performing investigations and employees who are responsible for

13-19    the delivery of services to clients and families.

13-20          (c)  This section does not require the department to

13-21    establish separate departments for investigations and service

13-22    delivery.

13-23          SECTION 12.  Subchapter C, Chapter 40, Human Resources Code,

13-24    is amended by adding Sections 40.0563, 40.0564, and 40.0565 to read

13-25    as follows:

 14-1          Sec. 40.0563.  COUNTY OUTREACH PROGRAM.  (a)  The department

 14-2    shall develop and implement a standard statewide outreach program

 14-3    under which the department:

 14-4                (1)  informs each county of the availability of federal

 14-5    funds to pay costs of providing child protective services within

 14-6    the county; and

 14-7                (2)  provides technical assistance on request to a

 14-8    county seeking federal funds.

 14-9          (b)  In implementing the program, the department shall:

14-10                (1)  designate local department personnel responsible

14-11    for performing the functions specified in Subsection (a);

14-12                (2)  designate a statewide coordinator responsible for

14-13    coordinating the activities of local department personnel and

14-14    developing methods of providing information to counties; and

14-15                (3)  develop a database that:

14-16                      (A)  identifies department and county personnel

14-17    involved with the outreach program; and

14-18                      (B)  contains information regarding the date and

14-19    type of assistance provided by the department to each county.

14-20          (c)  The department, in consultation with the Legislative

14-21    Budget Board, shall ensure that a record is maintained of the

14-22    amount of funding for child protective services that each county

14-23    receives directly from the federal government.

14-24          Sec. 40.0564.  DEPARTMENT FUNDS.  All money paid to the

14-25    department under this chapter is subject to Subchapter F, Chapter

 15-1    404, Government Code.

 15-2          Sec. 40.0565.  REPORT.  The department shall file with the

 15-3    governor and the presiding officer of each house of the legislature

 15-4    a complete and detailed written report accounting for all funds

 15-5    received and disbursed by the department during the preceding

 15-6    fiscal year.  The annual report must meet the reporting

 15-7    requirements, including reporting deadlines, applicable to

 15-8    financial reporting in the General Appropriations Act.

 15-9          SECTION 13.  Section 40.058, Human Resources Code, is amended

15-10    to read as follows:

15-11          Sec. 40.058.  Contracts and Agreements.  (a)  The department

15-12    may enter into contracts or agreements with any person, including a

15-13    federal, state, or other public or private agency, as necessary to

15-14    perform any of the department's powers or duties.

15-15          (b)  A contract for the purchase of program-related client

15-16    services must include:

15-17                (1)  clearly defined goals and outcomes that can be

15-18    measured to determine whether the objectives of the program are

15-19    being achieved;

15-20                (2)  clearly defined sanctions or penalties for

15-21    noncompliance with contract terms; and

15-22                (3)  clearly specified accounting, reporting, and

15-23    auditing requirements applicable to money received under the

15-24    contract.

15-25          (c)  The department shall monitor a contractor's performance

 16-1    under a contract for the purchase of program-related client

 16-2    services.  In monitoring performance, the department shall:

 16-3                (1)  use a risk-assessment methodology to ensure

 16-4    compliance with financial and performance requirements under the

 16-5    contract; and

 16-6                (2)  obtain and evaluate program cost information to

 16-7    ensure that all costs, including administrative costs, are

 16-8    reasonable and necessary to achieve program objectives.

 16-9          (d)  An agreement made under this section is not subject to

16-10    Chapter 771, Government Code.

16-11          SECTION 14.  Section 40.061, Human Resources Code, is amended

16-12    by adding Subsection (c) to read as follows:

16-13          (c)  This section does not provide immunity to a department

16-14    employee who, in a suit affecting the parent-child relationship in

16-15    which child abuse is alleged or that arises out of a child abuse

16-16    investigation or in a criminal prosecution for an offense in which

16-17    child abuse is an element, commits or attempts to commit perjury,

16-18    fabricates or attempts to fabricate evidence, or knowingly conceals

16-19    information that would establish that a person alleged to have

16-20    committed an act of child abuse did not commit child abuse.

16-21          SECTION 15.  Subchapter C, Chapter 40, Human Resources Code,

16-22    is amended by adding Sections 40.066 and 40.067 to read as follows:

16-23          Sec. 40.066.  COOPERATION WITH STATE OFFICE OF ADMINISTRATIVE

16-24    HEARINGS.  (a)  Except as provided by Subsection (e), the

16-25    department and the chief administrative law judge of the State

 17-1    Office of Administrative Hearings shall adopt a memorandum of

 17-2    understanding under which the State Office of Administrative

 17-3    Hearings, on behalf of the department, conducts all contested case

 17-4    hearings authorized or required by law to be conducted by the

 17-5    department under the administrative procedure law, Chapter 2001,

 17-6    Government Code.

 17-7          (b)  The memorandum of understanding shall require the chief

 17-8    administrative law judge, the department, and the executive

 17-9    director to cooperate in connection with a  contested case hearing

17-10    and may authorize the State Office of Administrative Hearings to

17-11    perform any administrative act, including giving of notice, that is

17-12    required to be performed by the department or executive director.

17-13          (c)  The administrative law judge who conducts a contested

17-14    case hearing for the State Office of Administrative Hearings on

17-15    behalf of the department shall enter the final decision in the case

17-16    after completion of the hearing.

17-17          (d)  The department by interagency contract shall reimburse

17-18    the State Office of Administrative Hearings for the costs incurred

17-19    in conducting contested case hearings for the department.  The

17-20    department may pay an hourly fee for the costs of conducting those

17-21    hearings or a fixed annual fee negotiated biennially by the

17-22    department and the State Office of Administrative Hearings to

17-23    coincide with the department's legislative appropriations request.

17-24          (e)  This section does not apply to a personnel grievance

17-25    hearing involving a department employee.

 18-1          Sec. 40.067.  DELIVERY OF SERVICES IN AREAS BORDERING UNITED

 18-2    MEXICAN STATES.  The department shall:

 18-3                (1)  study issues related to providing child and adult

 18-4    protective services in areas bordering the United Mexican States;

 18-5                (2)  develop a plan for providing those services in the

 18-6    most efficient manner; and

 18-7                (3)  pursue and enter into agreements for coordinated

 18-8    services, to the extent permissible under federal law, with the

 18-9    United Mexican States or any of its political subdivisions.

18-10          SECTION 16.  Section 42.002, Human Resources Code, is amended

18-11    by amending Subdivisions (3) and (9) and adding Subdivisions (16)

18-12    and (17) to read as follows:

18-13                (3)  "Child-care facility" means a facility licensed,

18-14    certified, or registered by the department to provide assessment,

18-15    [that provides] care, training, education, custody, treatment, or

18-16    supervision for a child who is not related by blood, marriage, or

18-17    adoption to the owner or operator of the facility, for all or part

18-18    of the 24-hour day, whether or not the facility is operated for

18-19    profit or charges for the services it offers.

18-20                (9)  "Family home" means a home that [regularly]

18-21    provides regular care in the caretaker's own residence for not more

18-22    than six children under 14 years of age, excluding [the caretaker's

18-23    own] children who are related to the caretaker, and that provides

18-24    care after school hours for not more than six additional elementary

18-25    school children, but the total number of children, including

 19-1    children who are related to the caretaker [the caretaker's own],

 19-2    does not exceed 12 at any given time.  The term does not include a

 19-3    home that provides care exclusively for any number of children who

 19-4    are related to the caretaker.

 19-5                (16)  "Children who are related to the caretaker" means

 19-6    children who are the children, grandchildren, siblings,

 19-7    great-grandchildren, nieces, or nephews of the caretaker, whether

 19-8    by affinity or consanguinity or as the result of a relationship

 19-9    created by court decree.

19-10                (17)  "Regular care" means care that is provided at

19-11    least four hours a day, three or more days a week, for more than

19-12    nine consecutive weeks.

19-13          SECTION 17.  Subsections (e) and (l), Section 42.042, Human

19-14    Resources Code, are amended to read as follows:

19-15          (e)  The department shall promulgate minimum standards that

19-16    apply to licensed child-care facilities and to registered family

19-17    homes covered by this chapter and that will:

19-18                (1)  promote the health, safety, and welfare of

19-19    children attending a facility or registered family home;

19-20                (2)  promote safe, comfortable, and healthy physical

19-21    facilities and registered family homes for children;

19-22                (3)  ensure adequate supervision of children by

19-23    capable, qualified, and healthy personnel;

19-24                (4)  ensure adequate and healthy food service where

19-25    food service is offered;

 20-1                (5)  prohibit racial discrimination by child-care

 20-2    facilities and registered family homes; and

 20-3                (6)  require procedures for parental and guardian

 20-4    consultation in the formulation of children's educational and

 20-5    therapeutic programs.

 20-6          (l)  In promulgating [The department shall adopt] minimum

 20-7    standards for the regulation of [regulating] family homes that

 20-8    register with the division, the department[.  The rules] must

 20-9    address the minimum qualifications, education, and training

20-10    required of a person who operates a family home registered with the

20-11    division.

20-12          SECTION 18.  Subchapter C, Chapter 42, Human Resources Code,

20-13    is amended by adding Section 42.0425 to read as follows:

20-14          Sec. 42.0425.  ASSESSMENT SERVICES.  (a)  The department by

20-15    rule shall regulate assessment services provided by child-care

20-16    facilities or child-placing agencies.  A child-care facility or

20-17    child-placing agency may not provide assessment services unless

20-18    specifically authorized by the department.

20-19          (b)  The department by rule shall establish minimum standards

20-20    for assessment services.  The standards must provide that

20-21    consideration is given to the individual needs of a child, the

20-22    appropriate place for provision of services, and the factors listed

20-23    in Section 42.042(e).

20-24          (c)  In this section, "assessment services" means the

20-25    determination of the placement needs of a child who requires

 21-1    substitute care.

 21-2          SECTION 19.  Subchapter C, Chapter 42, Human Resources Code,

 21-3    is amended by adding Section 42.0505 to read as follows:

 21-4          Sec. 42.0505.  RENEWAL OF LICENSE.  (a)  A person who is

 21-5    otherwise eligible to renew a license may renew an unexpired

 21-6    license by paying the required annual fee to the department before

 21-7    the expiration date of the license.  A person whose license has

 21-8    expired may not engage in activities that require a license until

 21-9    the license has been renewed under the provisions of this section.

21-10          (b)  If the person's license has been expired for 90 days or

21-11    less, the person may renew the license by paying to the department

21-12    1-1/2 times the required annual fee.

21-13          (c)  If the person's license has been expired for longer than

21-14    90 days but less than one year, the person may renew the license by

21-15    paying to the department two times the required annual fee.

21-16          (d)  If the person's license has been expired for one year or

21-17    longer, the person may not renew the license.  The person may

21-18    obtain a new license by complying with the requirements and

21-19    procedures for obtaining an original license.

21-20          (e)  If the person was licensed in this state, moved to

21-21    another state, and is currently licensed and has been in practice

21-22    in the other state for the two years preceding application, the

21-23    person may renew an expired license without reexamination.  The

21-24    person must pay to the department a fee that is equal to two times

21-25    the required annual fee for the license.

 22-1          (f)  At least 30 days before the expiration of a person's

 22-2    license, the department shall send written notice of the impending

 22-3    license expiration to the person at the license holder's last known

 22-4    address according to the records of the department.

 22-5          SECTION 20.  Subsection (b), Section 42.044, Human Resources

 22-6    Code, is amended to read as follows:

 22-7          (b)  The department [division] shall inspect all licensed or

 22-8    certified facilities at least once a year and may inspect other

 22-9    facilities or registered family homes as necessary.  At least one

22-10    of the annual visits must be unannounced and all may be

22-11    unannounced.

22-12          SECTION 21.  Subchapter C, Chapter 42, Human Resources Code,

22-13    is amended by adding Sections 42.0441 and 42.0442 to read as

22-14    follows:

22-15          Sec. 42.0441.  COORDINATION OF INSPECTIONS; ELIMINATION OF

22-16    DUPLICATIVE INSPECTIONS.  (a)  The department shall coordinate

22-17    child-care facility inspections performed by an agency or

22-18    subdivision of the state to eliminate redundant inspections.

22-19          (b)  An inspection of a child-care facility conducted by an

22-20    agency or subdivision of the state may not duplicate an inspection

22-21    conducted by another agency or subdivision.  The department shall

22-22    assign items that may be inspected by more than one agency or

22-23    subdivision of the state to only one agency or subdivision.

22-24          (c)  The department, with the assistance of the comptroller,

22-25    by rule shall adopt each inspection form used in inspecting a

 23-1    child-care facility by an agency or subdivision of the state.  The

 23-2    forms must be designed to eliminate redundant inspections.

 23-3          Sec. 42.0442.  INSPECTION INFORMATION DATABASE.  (a)  The

 23-4    department shall establish a computerized database containing the

 23-5    information from each inspection of a child-care facility.

 23-6          (b)  After an agency or subdivision of the state inspects a

 23-7    child-care facility, the agency or subdivision shall submit the

 23-8    completed inspection form to the department.  The department shall

 23-9    add the information from the inspection to the computerized

23-10    database.

23-11          SECTION 22.  Section 42.046, Human Resources Code, is amended

23-12    by amending Subsection (a) and the section heading to read as

23-13    follows:

23-14          Sec. 42.046.  [LICENSE] APPLICATION FOR LICENSE OR

23-15    REGISTRATION.  (a)  An applicant for a license to operate a

23-16    child-care facility or child-placing agency or for a registration

23-17    to operate a family home shall submit to the department [division]

23-18    the appropriate fee prescribed by Section 42.054 of this code and a

23-19    completed application on a form provided by the department

23-20    [division].

23-21          SECTION 23.  Subchapter C, Chapter 42, Human Resources Code,

23-22    is amended by adding Section 42.0461 to read as follows:

23-23          Sec. 42.0461.  LICENSES RELATING TO SUBSTITUTE CARE.

23-24    (a)  Before issuing a license to an entity that provides substitute

23-25    care services, including a child-care institution, child-placing

 24-1    agency, foster group home, foster family home, agency group home,

 24-2    and agency home or expanding the entity's capacity under a license,

 24-3    the department shall:

 24-4                (1)  require the applicant or license holder to publish

 24-5    notice in compliance with Subsection (b);

 24-6                (2)  conduct a public hearing on whether the proposed

 24-7    action should be taken; and

 24-8                (3)  determine:

 24-9                      (A)  the degree of community support for the

24-10    proposed action;

24-11                      (B)  the amount of local resources available to

24-12    support children proposed to be served by the entity;

24-13                      (C)  the impact of the proposed action on the

24-14    ratio in the local school district of students enrolled in a

24-15    special education program to students enrolled in a regular

24-16    education program; and

24-17                      (D)  the impact of the proposed action on the

24-18    local community.

24-19          (b)  An applicant for a license to provide substitute care

24-20    services or a license holder seeking expansion of capacity under

24-21    the license shall publish notice of the proposed action in a

24-22    newspaper of general circulation in the community in which the

24-23    substitute care services are proposed to be provided.  The notice

24-24    must be published at least one week before the date of the public

24-25    hearing required by Subsection (a) and must include:

 25-1                (1)  the name and address of the applicant or license

 25-2    holder;

 25-3                (2)  the address at which the substitute care services

 25-4    are proposed to be provided;

 25-5                (3)  the date and location of the public hearing; and

 25-6                (4)  the name, address, and telephone number of the

 25-7    department as the state agency with authority to approve or deny

 25-8    the proposed action.

 25-9          (c)  The department may deny a license to an entity seeking

25-10    to provide substitute care services or deny a request to expand

25-11    such an entity's capacity under a license if the department

25-12    determines that:

25-13                (1)  the community in which the substitute care

25-14    services are proposed to be provided does not predominately support

25-15    the issuance of the license or expansion of capacity;

25-16                (2)  sufficient local resources are not available in

25-17    that community to support children proposed to be served by the

25-18    entity;

25-19                (3)  the issuance of the license or expansion of

25-20    capacity would significantly increase the ratio in the local school

25-21    district serving that community of students enrolled in a special

25-22    education program to students enrolled in a  regular education

25-23    program; or

25-24                (4)  the issuance of the license or expansion of

25-25    capacity would have a significant adverse impact on that community.

 26-1          (d)  This section does not require the department to conduct

 26-2    a public hearing or make the determinations required by Subsection

 26-3    (a)(3) in connection with the verification or certification of an

 26-4    agency group home, agency home, or any foster home verified or

 26-5    certified by the department.

 26-6          SECTION 24.  Section 42.052, Human Resources Code, is amended

 26-7    by amending Subsection (c) and adding Subsection (h) to read as

 26-8    follows:

 26-9          (c)  A family home that provides care for three or fewer

26-10    children, excluding [the caretaker's own] children who are related

26-11    to the caretaker, may register with the department [division].  A

26-12    family home that provides care for four or more children, excluding

26-13    [the caretaker's own] children who are related to the caretaker,

26-14    shall [must] register with the department [division].  A

26-15    registration remains valid until revoked or surrendered.  The

26-16    operator  of a registered home must display the registration in a

26-17    prominent place at the home.

26-18          (h)  The department by rule may provide for denial of an

26-19    application for registering a family home or may revoke a family

26-20    home's registration based on the results of a background or

26-21    criminal history check.

26-22          SECTION 25.  Subchapter C, Chapter 42, Human Resources Code,

26-23    is amended by adding Sections 42.057 and 42.058 to read as follows:

26-24          Sec. 42.057.  REQUIRED BACKGROUND AND CRIMINAL HISTORY

26-25    CHECKS.  (a)  In accordance with rules adopted by the department,

 27-1    the operator of a family home shall, when the operator applies for

 27-2    registration and at least once during each 24 months after

 27-3    registration, submit to the department for use in conducting

 27-4    background and criminal history checks:

 27-5                (1)  the name of the owner and each person employed at

 27-6    the family home; and

 27-7                (2)  the name of each resident of the home and any

 27-8    other person who will regularly or frequently be staying or working

 27-9    at the home while children are being provided care.

27-10          (b)  The department shall conduct background and criminal

27-11    history checks using:

27-12                (1)  the information provided under Subsection (a);

27-13                (2)  the information made available by the Department

27-14    of Public Safety under Section 411.114, Government Code; and

27-15                (3)  the department's records of reported abuse and

27-16    neglect.

27-17          (c)  The department by rule shall require a family home to

27-18    pay to the department a fee in an amount not to exceed the

27-19    administrative costs the department incurs in conducting a

27-20    background and criminal history check under this section.

27-21          Sec. 42.058.  COMPETITIVE BIDDING OR ADVERTISING RULES.

27-22    (a)  The board may not adopt rules restricting competitive bidding

27-23    or advertising by a license holder or registration holder except to

27-24    prohibit false, misleading, or deceptive practices or to prevent a

27-25    violation of this chapter.

 28-1          (b)  In its rules to prohibit false, misleading, or deceptive

 28-2    practices, the board may not include a rule that:

 28-3                (1)  restricts the use of any medium for advertising;

 28-4                (2)  restricts the use of a license holder's or

 28-5    registration holder's personal appearance or voice in an

 28-6    advertisement;

 28-7                (3)  relates to the size or duration of an

 28-8    advertisement by the license holder or registration holder; or

 28-9                (4)  restricts the license holder's or registration

28-10    holder's advertisement under a trade name.

28-11          SECTION 26.  Subchapter D, Chapter 42, Human Resources Code,

28-12    is amended by adding Section 42.0705 to read as follows:

28-13          Sec. 42.0705.  RANGE OF PENALTIES.  The department shall

28-14    revoke, suspend, or refuse to renew a license or certificate of

28-15    registration, place on probation a person whose license or

28-16    certificate of registration has been suspended, or reprimand a

28-17    license holder or registration holder for a violation of this

28-18    chapter or a rule of the board.  If a license or certificate of

28-19    registration suspension is probated, the department may require the

28-20    license holder or registration holder to:

28-21                (1)  report regularly to the department on matters that

28-22    are the basis of the probation;

28-23                (2)  limit practice to the areas prescribed by the

28-24    department;

28-25                (3)  continue or review professional education until

 29-1    the license holder or registration holder attains a degree of skill

 29-2    satisfactory to the department in those areas that are the basis of

 29-3    the probation; or

 29-4                (4)  take corrective action relating to the violation

 29-5    on which the probation is based.

 29-6          SECTION 27.  Section 42.071, Human Resources Code, is amended

 29-7    to read as follows:

 29-8          Sec. 42.071.  [LICENSE] SUSPENSION, EVALUATION, OR PROBATION

 29-9    OF LICENSE OR REGISTRATION.  (a)  The department [division] may

29-10    suspend the license of a facility or the registration of a family

29-11    home that has temporarily ceased operation but has definite plans

29-12    for starting operations again within the time limits of the issued

29-13    license or registration.

29-14          (b)  The department [division] may suspend a facility's

29-15    license or a family home's registration for a definite period

29-16    rather than deny or revoke the license or registration if the

29-17    department [division] finds repeated noncompliance with standards

29-18    that do not endanger the health and safety of children.  To qualify

29-19    for license or registration suspension under this subsection, a

29-20    facility or family home must suspend its operations and show that

29-21    standards can be met within the suspension period.

29-22          (c)  If the department [division] finds a facility or family

29-23    home is in repeated noncompliance with standards that do not

29-24    endanger the health and safety of children, the department

29-25    [division] may schedule the facility or family home for evaluation

 30-1    or probation rather than suspend or revoke the facility's license

 30-2    or the family home's registration.  The department [division] shall

 30-3    provide notice to the facility or family home of the evaluation or

 30-4    probation and of the items of noncompliance not later than the 10th

 30-5    day before the evaluation or probation period begins.  The

 30-6    department [division] shall designate a period of not less than 30

 30-7    days during which the facility or family home will remain under

 30-8    evaluation.  During the evaluation or probation period, the

 30-9    facility or family home must correct the items that were in

30-10    noncompliance and report the corrections to the department

30-11    [division] for approval.

30-12          (d)  The department [division] shall revoke the license of a

30-13    facility or the registration of a family home that does not comply

30-14    with standards at the end of a license or registration suspension.

30-15          (e)  The department [division] may suspend or revoke the

30-16    license of a facility or the registration of a family home that

30-17    does not correct items that were in noncompliance or that does not

30-18    comply with required standards within the applicable evaluation or

30-19    probation period.

30-20          SECTION 28.  Subchapter D, Chapter 42, Human Resources Code,

30-21    is amended by adding Section 42.0715 to read as follows:

30-22          Sec. 42.0715.  COSTS CHARGED TO FACILITY.  The department

30-23    shall charge a facility for reimbursement of the reasonable cost of

30-24    services provided by the department in formulating, monitoring, and

30-25    implementing a corrective action plan for the facility.

 31-1          SECTION 29.  Section 42.072, Human Resources Code, is amended

 31-2    to read as follows:

 31-3          Sec. 42.072.  LICENSE OR REGISTRATION DENIAL, SUSPENSION, OR

 31-4    REVOCATION.  (a)  The department [division] may suspend, deny, [or]

 31-5    revoke, or refuse to renew the license, registration, or

 31-6    certification of approval of a facility or family home that does

 31-7    not comply with the requirements of this chapter, the standards and

 31-8    rules of the department, or the specific terms of the license,

 31-9    registration, or certification.  The department may revoke the

31-10    probation of a person whose license or registration is suspended if

31-11    the person violates a term of the conditions of probation.

31-12          (b)  If the department proposes to take an action under

31-13    Subsection (a), the person is entitled to a hearing conducted by

31-14    the State Office of Administrative Hearings.  Proceedings for a

31-15    disciplinary action are governed by the administrative procedure

31-16    law, Chapter 2001, Government Code.  Rules of practice adopted by

31-17    the board under Section 2001.004, Government Code, applicable to

31-18    the proceedings for a disciplinary action may not conflict with

31-19    rules adopted by the State Office of Administrative Hearings.

31-20          (c)  [The division shall notify the person operating or

31-21    proposing to operate a facility of the reasons for the denial or

31-22    revocation and of the person's right to appeal the decision within

31-23    30 days after receiving the notice.]

31-24          [(c)  A person who wishes to appeal a license denial or

31-25    revocation shall notify the director by certified mail within 30

 32-1    days after receiving the notice required in Subsection (b) of this

 32-2    section.  The person shall send a copy of the notice of appeal to

 32-3    the assigned division representative.]

 32-4          [(d)  The denial or revocation of a license or certification

 32-5    and the appeal from that action are governed by the procedure for a

 32-6    contested case hearing under Chapter 2001, Government Code.]

 32-7          [(e)  A person whose license has been denied or revoked may

 32-8    challenge the decision by filing a suit in a district court of

 32-9    Travis County or the county in which the person's facility is

32-10    located within 30 days after receiving the decision.  The trial

32-11    shall be de novo.]

32-12          [(f)  Records of the hearing shall be kept for two years

32-13    after a decision is rendered.  On request, and at the person's own

32-14    expense, the division shall supply a copy of the verbatim

32-15    transcript of the hearing to a person appealing a license denial or

32-16    revocation in district court.]

32-17          [(g)  A person may continue to operate a facility during an

32-18    appeal of a license denial or revocation unless the division has

32-19    obtained injunctive relief under Section 42.074 or civil penalties

32-20    under Section 42.075 or the facility has been closed under Section

32-21    42.073.]

32-22          [(h)]  A person whose license, registration, or certification

32-23    is revoked may not apply for any license, registration, or

32-24    certification under this chapter before the second anniversary of

32-25    the date on which the revocation takes effect by department or

 33-1    court order.

 33-2          SECTION 30.  Section 42.073, Human Resources Code, is amended

 33-3    to read as follows:

 33-4           Sec. 42.073.  EMERGENCY SUSPENSION AND CLOSURE OF A FACILITY

 33-5    OR FAMILY HOME.  (a)  The department [division] shall suspend a

 33-6    facility's license or a family home's registration and[,] order the

 33-7    immediate closing of the facility or family home[, and place the

 33-8    children attending or residing in the facility elsewhere] if:

 33-9                (1)  the department [division] finds the facility or

33-10    family home is operating in violation of the applicable standards

33-11    prescribed by this chapter; and

33-12                (2)  the violation creates an immediate threat to the

33-13    health and safety of the children attending or residing in the

33-14    facility or family home.

33-15          (b)  An order suspending a license or registration and an

33-16    order closing a facility or family home under this section is

33-17    immediately effective on the date on which the [license] holder of

33-18    the license or registration receives written notice or on a later

33-19    date specified in the order.

33-20          (c)  An order is valid for 10 days after the effective date

33-21    of the order.

33-22          (d)  The suspension of a license or registration and the

33-23    closure of a [the] facility or family home and the appeal from that

33-24    action are governed by the procedures for a contested case hearing

33-25    under Chapter 2001, Government Code.

 34-1          SECTION 31.  Subsections (a) and (c), Section 42.074, Human

 34-2    Resources Code, are amended to read as follows:

 34-3          (a)  When it appears that a person has violated, is

 34-4    violating, or is threatening to violate the licensing,

 34-5    certification, or registration requirements of this chapter or the

 34-6    department's licensing, certification, or registration rules and

 34-7    standards, the department [division] may file a suit in a district

 34-8    court in Travis County or in the county where the facility or

 34-9    family home is located for assessment and recovery of civil

34-10    penalties under Section 42.075 [of this code], for injunctive

34-11    relief, including a temporary restraining order, or for both

34-12    injunctive relief and civil penalties.

34-13          (c)  At the department's [division's] request, the attorney

34-14    general or the county or district attorney of the county in which

34-15    the facility or family home is located shall conduct a suit in the

34-16    name of the State of Texas for injunctive relief, to recover the

34-17    civil penalty, or for both injunctive relief and civil penalties as

34-18    authorized by Subsection (a) [of this section].

34-19          SECTION 32.  Subsection (a), Section 42.075, Human Resources

34-20    Code, is amended to read as follows:

34-21          (a)  A person is subject to a civil penalty of not less than

34-22    $50 nor more than $100 for each day of violation and for each act

34-23    of violation if the person:

34-24                (1)  threatens serious harm to a child in a facility or

34-25    family home by violating a provision of this chapter or a

 35-1    department rule or standard;

 35-2                (2)  violates a provision of this chapter or a

 35-3    department rule or standard three or more times within a 12-month

 35-4    period; or

 35-5                (3)  places a public advertisement for an unlicensed

 35-6    facility or unregistered family home.

 35-7          SECTION 33.  Section 42.076, Human Resources Code, is amended

 35-8    to read as follows:

 35-9          Sec. 42.076.  CRIMINAL PENALTIES.  (a)  A person who operates

35-10    a child-care facility or child-placing agency without a license

35-11    commits a Class B misdemeanor.

35-12          (b)  A person who operates a family home without a

35-13    registration commits a Class B misdemeanor.

35-14          (c)  A person who places a public advertisement for an

35-15    unlicensed facility or an unregistered family home commits a Class

35-16    C misdemeanor.

35-17          [(c)  A person who places an advertisement for a registered

35-18    family home in violation of Section 42.052(f) of this code commits

35-19    a Class C misdemeanor.]

35-20          (d)  It is not an offense under this section if a

35-21    professional provides legal or medical services to:

35-22                (1)  a parent who identifies the prospective adoptive

35-23    parent and places the child for adoption without the assistance of

35-24    the professional; or

35-25                (2)  a prospective adoptive parent who identifies a

 36-1    parent and receives placement of a child for adoption without

 36-2    assistance of the professional.

 36-3          SECTION 34.  Section 42.077, Human Resources Code, is amended

 36-4    to read as follows:

 36-5          Sec. 42.077.  NOTICE OF ACTION AGAINST FACILITY OR FAMILY

 36-6    HOME.  (a)  If the department revokes or suspends a facility's

 36-7    license or a family home's registration, the department shall

 36-8    publish notice of this action in a newspaper of general circulation

 36-9    in the county in which the facility or family home is located.  The

36-10    newspaper shall place the notice in the section in which

36-11    advertisements for day-care services are normally published.

36-12          (b)  If a person who operates a facility or family home that

36-13    has had its license or registration revoked or suspended later

36-14    applies for a new license or registration to operate the same

36-15    facility or family home, the department shall charge the person an

36-16    application fee in an amount necessary to reimburse the department

36-17    for the cost of the notice relating to that facility or family

36-18    home.

36-19          (c)  The department shall pay for publication of the notice

36-20    from funds appropriated to the department for licensing and

36-21    regulating child-care facilities and for registering and regulating

36-22    family homes and from appeal and application fees collected under

36-23    Subsection (b) [of this section] and appropriated to the

36-24    department.

36-25          (d)  A facility or family home that has its license or

 37-1    registration revoked or suspended shall mail notification of this

 37-2    action by certified mail to the parents or guardian of the child

 37-3    served by the facility or family home.  The facility shall mail the

 37-4    notification within five days of the effective date of the

 37-5    [license] revocation or suspension of the license or registration.

 37-6          SECTION 35.  Subchapter D, Chapter 42, Human Resources Code,

 37-7    is amended by adding Section 42.078 to read as follows:

 37-8          Sec. 42.078.  ADMINISTRATIVE PENALTY.  (a)  The department

 37-9    may impose an administrative penalty against a facility or family

37-10    home licensed or registered under this chapter that violates this

37-11    chapter or a rule or order adopted under this chapter.

37-12          (b)  The penalty for a violation may be in an amount not to

37-13    exceed $100.  Each day a violation continues or occurs is a

37-14    separate violation for purposes of imposing a penalty.

37-15          (c)  The amount of the penalty shall be based on:

37-16                (1)  the seriousness of the violation, including the

37-17    nature, circumstances, extent, and gravity of any prohibited acts,

37-18    and the hazard or potential hazard created to the health, safety,

37-19    or economic welfare of the public;

37-20                (2)  the economic harm to property or the environment

37-21    caused by the violation;

37-22                (3)  the history of previous violations;

37-23                (4)  the amount necessary to deter future violations;

37-24                (5)  efforts to correct the violation; and

37-25                (6)  any other matter that justice may require.

 38-1          (d)  If the executive director determines that a violation

 38-2    has occurred, the director may issue a recommendation on the

 38-3    imposition of a penalty, including a recommendation on the amount

 38-4    of the penalty.

 38-5          (e)  Within 14 days after the date the recommendation is

 38-6    issued, the executive director shall give written notice of the

 38-7    recommendation to the person owning or operating the facility.  The

 38-8    notice may be given by certified mail.  The notice must include a

 38-9    brief summary of the alleged violation and a statement of the

38-10    amount of the recommended penalty and must inform the person that

38-11    the person has a right to a hearing on the occurrence of the

38-12    violation, the amount of the penalty, or both the occurrence of the

38-13    violation and the amount of the penalty.

38-14          (f)  Within 20 days after the date the person receives the

38-15    notice, the person in writing may accept the determination and

38-16    recommended penalty of the executive director or may make a written

38-17    request for a hearing on the occurrence of the violation, the

38-18    amount of the penalty, or both the occurrence of the violation and

38-19    the amount of the penalty.

38-20          (g)  If the person accepts the determination and recommended

38-21    penalty of the executive director or fails to respond to the notice

38-22    in a timely manner, the executive director shall issue an order and

38-23    impose the recommended penalty.

38-24          (h)  If the person requests a hearing, the executive director

38-25    shall set a hearing and give notice of the hearing to the person.

 39-1    The hearing shall be held by an administrative law judge of the

 39-2    State Office of Administrative Hearings.  The administrative law

 39-3    judge shall make findings of fact and conclusions of law and issue

 39-4    a final decision finding that a violation has occurred and imposing

 39-5    a penalty or finding that no violation occurred.

 39-6          (i)  The notice of the administrative law judge's order given

 39-7    to the person under Chapter 2001, Government Code, must include a

 39-8    statement of the right of the person to judicial review of the

 39-9    order.

39-10          (j)  Within 30 days after the date the administrative law

39-11    judge's order becomes final as provided by Section 2001.144,

39-12    Government Code, the person shall:

39-13                (1)  pay the amount of the penalty;

39-14                (2)  pay the amount of the penalty and file a petition

39-15    for judicial review contesting the occurrence of the violation, the

39-16    amount of the penalty, or both the occurrence of the violation and

39-17    the amount of the penalty; or

39-18                (3)  without paying the amount of the penalty, file a

39-19    petition for judicial review contesting the occurrence of the

39-20    violation, the amount of the penalty, or both the occurrence of the

39-21    violation and the amount of the penalty.

39-22          (k)  Within the 30-day period, a person who acts under

39-23    Subsection (j)(3) may:

39-24                (1)  stay enforcement of the penalty by:

39-25                      (A)  paying the amount of the penalty to the

 40-1    court for placement in an escrow account; or

 40-2                      (B)  giving to the court a supersedeas bond that

 40-3    is approved by the court for the amount of the penalty and that is

 40-4    effective until all judicial review of the order is final; or

 40-5                (2)  request the court to stay enforcement of the

 40-6    penalty by:

 40-7                      (A)  filing with the court a sworn affidavit of

 40-8    the person stating that the person is financially unable to pay the

 40-9    amount of the penalty and is financially unable to give the

40-10    supersedeas bond; and

40-11                      (B)  giving a copy of the affidavit to the

40-12    executive director by certified mail.

40-13          (l)  On receipt of a copy of an affidavit under Subsection

40-14    (k)(2), the executive director may file with the court, within five

40-15    days after the date the copy is received, a contest to the

40-16    affidavit.  The court shall hold a hearing on the facts alleged in

40-17    the affidavit as soon as practicable and shall stay the enforcement

40-18    of the penalty on finding that the alleged facts are true.  The

40-19    person who files an affidavit has the burden of proving that the

40-20    person is financially unable to pay the amount of the penalty and

40-21    to give a supersedeas bond.

40-22          (m)  If the person does not pay the amount of the penalty and

40-23    the enforcement of the penalty is not stayed, the executive

40-24    director may refer the matter to the attorney general for

40-25    collection of the amount of the penalty.

 41-1          (n)  Judicial review of the order:

 41-2                (1)  is instituted by filing a petition as provided by

 41-3    Subchapter G, Chapter 2001, Government Code; and

 41-4                (2)  is under the substantial evidence rule.

 41-5          (o)  If the court sustains the occurrence of the violation,

 41-6    the court may uphold or reduce the amount of the penalty and order

 41-7    the person to pay the full or reduced amount of the penalty.  If

 41-8    the court does not sustain the occurrence of the violation, the

 41-9    court shall order that no penalty is owed.

41-10          (p)  When the judgment of the court becomes final, the court

41-11    shall proceed under this subsection.  If the person paid the amount

41-12    of the penalty and if that amount is reduced or is not upheld by

41-13    the court, the court shall order that the appropriate amount plus

41-14    accrued interest be remitted to the person.  The rate of the

41-15    interest is the rate charged on loans to depository institutions by

41-16    the New York Federal Reserve Bank, and the interest shall be paid

41-17    for the period beginning on the date the penalty was paid and

41-18    ending on the date the penalty is remitted.  If the person gave a

41-19    supersedeas bond and if the amount of the penalty is not upheld by

41-20    the court, the court shall order the release of the bond.  If the

41-21    person gave a supersedeas bond and if the amount of the penalty is

41-22    reduced, the court shall order the release of the bond after the

41-23    person pays the amount.

41-24          (q)  A penalty collected under this section shall be sent to

41-25    the comptroller for deposit in the general revenue fund.

 42-1          (r)  All proceedings under this section are subject to

 42-2    Chapter 2001, Government Code.

 42-3          SECTION 36.  Chapter 43, Human Resources Code, is amended by

 42-4    adding Section 43.0042 to read as follows:

 42-5          Sec. 43.0042.  RECOGNITION OF LICENSE ISSUED BY ANOTHER

 42-6    STATE.  (a)  The department may waive any prerequisite to obtaining

 42-7    a license for an applicant:

 42-8                (1)  after reviewing the applicant's credentials and

 42-9    determining that the applicant holds a valid license from another

42-10    state that has license requirements substantially equivalent to

42-11    those of this state; or

42-12                (2)  after determining the applicant has a valid

42-13    license from another state with which this state has a reciprocity

42-14    agreement.

42-15          (b)  The department may enter into an agreement with another

42-16    state to permit licensing by reciprocity.

42-17          SECTION 37.  Chapter 43, Human Resources Code, is amended by

42-18    adding Section 43.0055 to read as follows:

42-19          Sec. 43.0055.  COMPETITIVE BIDDING OR ADVERTISING RULES.

42-20    (a)  The department may not adopt rules restricting competitive

42-21    bidding or advertising by a license holder except to prohibit

42-22    false, misleading, or deceptive practices.

42-23          (b)  In its rules to prohibit false, misleading, or deceptive

42-24    practices, the department may not include a rule that:

42-25                (1)  restricts the use of any medium for advertising;

 43-1                (2)  restricts the use of a license holder's personal

 43-2    appearance or voice in an advertisement;

 43-3                (3)  relates to the size or duration of an

 43-4    advertisement by the license holder; or

 43-5                (4)  restricts the license holder's advertisement under

 43-6    a trade name.

 43-7          SECTION 38.  Section 43.006, Human Resources Code, is amended

 43-8    to read as follows:

 43-9          Sec. 43.006.  Fees.  The board may set and charge fees for

43-10    administering an examination and issuing an initial license, [or]

43-11    renewal license, or provisional license in amounts necessary to

43-12    cover the costs of administering this chapter.

43-13          SECTION 39.  Chapter 43, Human Resources Code, is amended by

43-14    adding Section 43.0081 to read as follows:

43-15          Sec. 43.0081.  PROVISIONAL LICENSE.  (a)  The department may

43-16    issue a provisional license to an applicant licensed in another

43-17    state who applies for a license in this state.  An applicant for a

43-18    provisional license under this section must:

43-19                (1)  be licensed in good standing as a child-care

43-20    administrator for at least two years in another state, the District

43-21    of Columbia, a foreign country, or a territory of the United States

43-22    that has licensing requirements that are substantially equivalent

43-23    to the requirements of this chapter;

43-24                (2)  have passed a national or other examination

43-25    recognized by the department that demonstrates competence in the

 44-1    field of child-care administration; and

 44-2                (3)  be sponsored by a person licensed by the

 44-3    department under this chapter with whom the provisional license

 44-4    holder may practice under this section.

 44-5          (b)  The department may waive the requirement of Subsection

 44-6    (a)(3) for an applicant if the department determines that

 44-7    compliance with that subsection constitutes a hardship to the

 44-8    applicant.

 44-9          (c)  A provisional license is valid until the date the

44-10    department approves or denies the provisional license holder's

44-11    application for a license.  The department shall issue a license

44-12    under this chapter to the provisional license holder if:

44-13                (1)  the provisional license holder passes the

44-14    examination required by Section 43.004;

44-15                (2)  the department verifies that the provisional

44-16    license holder has the academic and experience requirements for a

44-17    license under this chapter; and

44-18                (3)  the provisional license holder satisfies any other

44-19    license requirements under this chapter.

44-20          (d)  The department must complete the processing of a

44-21    provisional license holder's application for a license not later

44-22    than the 180th day after the date the provisional license is

44-23    issued.  The department may extend the 180-day limit if the results

44-24    of the license holder's examination have not been received by the

44-25    department.

 45-1          SECTION 40.  Subsections (b) through (f), Section 43.009,

 45-2    Human Resources Code, are amended to read as follows:

 45-3          (b)  The board shall recognize, prepare, or administer

 45-4    continuing education programs for license holders.  The continuing

 45-5    education requirement may be fulfilled by studies in the areas of

 45-6    legal aspects of child care, concepts related to the field of

 45-7    social work, or other subjects approved by the department.

 45-8          (c)  A person who is otherwise eligible to renew a license

 45-9    may renew an unexpired license by paying to the department before

45-10    the expiration date of the license the required renewal fee.  A

45-11    person whose license has expired may not engage in the activities

45-12    that require a license until the license has been renewed under the

45-13    provisions of this section.

45-14          (d)  If a person's license has been expired for 90 days or

45-15    less, the person may renew the license by paying to the department

45-16    one and [the required renewal fee and a fee that is] one-half times

45-17    the required renewal [of the examination] fee [for the license].

45-18          (e)  If a person's license has been expired for longer than

45-19    90 days but less than one year [two years], the person may renew

45-20    the license by paying to the department two times the required [all

45-21    unpaid] renewal [fees and a] fee [that is equal to the examination

45-22    fee for the license].

45-23          (f)  If a person's license has been expired for one year [two

45-24    years] or longer, the person may not renew the license.  The person

45-25    may obtain a new license by submitting to reexamination and

 46-1    complying with the requirements and procedures for obtaining an

 46-2    original license.  If the [However, the department may renew

 46-3    without reexamination an expired license of a] person [who] was

 46-4    licensed in this state, moved to another state, and is currently

 46-5    licensed and has been in practice in the other state for the two

 46-6    years preceding application, the person may renew an expired

 46-7    license without reexamination.  The person must pay to the

 46-8    department a fee that is equal to two times the required renewal

 46-9    [the examination] fee for the license.

46-10          SECTION 41.  Section 43.010, Human Resources Code, is amended

46-11    to read as follows:

46-12          Sec. 43.010.  LICENSE REVOCATION, [OR] SUSPENSION, OR

46-13    REFUSAL; REPRIMAND OR PROBATION.  (a)  The department shall revoke,

46-14    suspend, or refuse to renew a license, place on probation a person

46-15    whose license has been suspended, or reprimand a license holder for

46-16    a violation by the license holder of this chapter or a rule of the

46-17    board.

46-18          (b)  The department may revoke a license if the license

46-19    holder is:

46-20                (1)  convicted of a felony;

46-21                (2)  convicted of a misdemeanor involving fraud or

46-22    deceit;

46-23                (3)  addicted to a dangerous drug or intemperate in the

46-24    use of alcohol; or

46-25                (4)  grossly negligent in performing duties as a

 47-1    child-care administrator.

 47-2          (c) [(b)]  The department shall suspend a license, place on

 47-3    probation a person whose license has been suspended, or reprimand a

 47-4    license holder for a violation of this chapter or a rule of the

 47-5    board.

 47-6          (d)  If a license suspension is probated, the department may

 47-7    require the license holder:

 47-8                (1)  to report regularly to the department on the

 47-9    conditions [matters that are the basis] of the probation;

47-10                (2)  to limit practice to the areas prescribed by the

47-11    department; or

47-12                (3)  to continue or renew professional education until

47-13    the practitioner attains a degree of skill satisfactory to the

47-14    department in those areas in which improvement is a condition [that

47-15    are the basis] of the probation.

47-16          SECTION 42.  Chapter 43, Human Resources Code, is amended by

47-17    adding Sections 43.0105 and 43.0106 to read as follows:

47-18          Sec. 43.0105.  REVOCATION OF PROBATION.  The department may

47-19    revoke the probation of a license holder whose license is suspended

47-20    if the license holder violates a term of the conditions of

47-21    probation.

47-22          Sec. 43.0106.  DISCIPLINARY HEARING.  If the department

47-23    proposes to suspend, revoke, or refuse to renew a person's license,

47-24    the person is entitled to a hearing conducted by the State Office

47-25    of Administrative Hearings.  Proceedings for a disciplinary action

 48-1    are governed by the administrative procedure law, Chapter 2001,

 48-2    Government Code.  Rules of practice adopted by the board under

 48-3    Section 2001.004, Government Code, applicable to the proceedings

 48-4    for a disciplinary action may not conflict with rules adopted by

 48-5    the State Office of Administrative Hearings.

 48-6          SECTION 43.  Section 48.081, Human Resources Code, is amended

 48-7    to read as follows:

 48-8          Sec. 48.081.  INVESTIGATION OF REPORTS IN MHMR FACILITIES AND

 48-9    IN COMMUNITY CENTERS.  (a)  The department shall receive and

48-10    investigate reports of the abuse, neglect, or exploitation of an

48-11    individual:

48-12                (1)  receiving services in a facility operated by the

48-13    Texas Department of Mental Health and Mental Retardation; or

48-14                (2)  being provided services through a program under

48-15    contract with a facility operated by the Texas Department of Mental

48-16    Health and Mental Retardation.

48-17          (b)  The department and the Texas Department of Mental Health

48-18    and Mental Retardation shall develop joint rules to facilitate

48-19    investigations in state mental health and mental retardation

48-20    facilities.

48-21          (c)  The department shall receive and investigate a report of

48-22    the alleged abuse, neglect, or exploitation of an individual

48-23    receiving services in a community center or from a program

48-24    providing services under contract with a community center.

48-25          (d)  The department shall forward to a state mental health or

 49-1    mental retardation facility, a community center, or a program

 49-2    providing mental health or mental retardation services under

 49-3    contract with such a facility or community center:

 49-4                (1)  a copy of any report the department receives

 49-5    relating to alleged or suspected abuse, neglect, or exploitation of

 49-6    an individual receiving services from that facility, community

 49-7    center, or program; and

 49-8                (2)  a copy of the department's investigation findings

 49-9    and report.

49-10          (e)  The department's confirmed investigation findings may

49-11    not be changed by a superintendent of a state mental health or

49-12    mental retardation facility or a director of a community center.

49-13    The commissioner of mental health and mental retardation or the

49-14    commissioner's designee may change the department's confirmed

49-15    investigation findings for good cause.  The commissioner or

49-16    designated representative shall inform the department in writing

49-17    of:

49-18                (1)  each case in which the commissioner or designee

49-19    changes the department's findings; and

49-20                (2)  the reasons supporting the decision to change the

49-21    findings.

49-22          (f)  After completion of the appeals process, the department

49-23    shall refer a complaint relating to an investigation conducted by

49-24    the department under this section to the department's ombudsman

49-25    office for appropriate action.

 50-1          (g) [(f)]  If the department's investigation under this

 50-2    section reveals that an elderly or disabled person has been abused

 50-3    by another person in a manner that constitutes a criminal offense

 50-4    under any law, including Section 22.04, Penal Code, a copy of the

 50-5    investigation shall be submitted to the appropriate law enforcement

 50-6    agency.

 50-7          (h)  The department by rule may assign priorities to an

 50-8    investigation conducted by the department under this section.  The

 50-9    primary criterion used by the department in assigning a priority

50-10    must be the risk that a delay in the investigation will impede the

50-11    collection of evidence.

50-12          (i)  The department and the Texas Department of Mental Health

50-13    and Mental Retardation shall jointly develop and implement a single

50-14    system to track reports and investigations under this section.  To

50-15    facilitate implementation of the system, the department and the

50-16    Texas Department of Mental Health and Mental Retardation shall use

50-17    appropriate methods of measuring the number and outcome of reports

50-18    and investigations under this section.

50-19          (j) [(g)]  In this section, "community center" has the

50-20    meaning assigned by Section 531.002, Health and Safety Code.

50-21          SECTION 44.  Section 161.001, Family Code, is amended to read

50-22    as follows:

50-23          Sec. 161.001.  INVOLUNTARY TERMINATION OF PARENT-CHILD

50-24    RELATIONSHIP.  The court may order termination of the parent-child

50-25    relationship if the court finds by clear and convincing evidence:

 51-1                (1)  that the parent has:

 51-2                      (A)  voluntarily left the child alone or in the

 51-3    possession of another not the parent and expressed an intent not to

 51-4    return;

 51-5                      (B)  voluntarily left the child alone or in the

 51-6    possession of another not the parent without expressing an intent

 51-7    to return, without providing for the adequate support of the child,

 51-8    and remained away for a period of at least three months;

 51-9                      (C)  voluntarily left the child alone or in the

51-10    possession of another without providing adequate support of the

51-11    child and remained away for a period of at least six months;

51-12                      (D)  knowingly placed or knowingly allowed the

51-13    child to remain in conditions or surroundings which endanger the

51-14    physical or emotional well-being of the child;

51-15                      (E)  engaged in conduct or knowingly placed the

51-16    child with persons who engaged in conduct which endangers the

51-17    physical or emotional well-being of the child;

51-18                      (F)  failed to support the child in accordance

51-19    with his ability during a period of one year ending within six

51-20    months of the date of the filing of the petition;

51-21                      (G)  abandoned the child without identifying the

51-22    child or furnishing means of identification, and the child's

51-23    identity cannot be ascertained by the exercise of reasonable

51-24    diligence;

51-25                      (H)  voluntarily, and with knowledge of the

 52-1    pregnancy, abandoned the mother of the child beginning at a time

 52-2    during her pregnancy with the child and continuing through the

 52-3    birth, failed to provide adequate support or medical care for the

 52-4    mother during the period of abandonment before the birth of the

 52-5    child, and remained apart from the child or failed to support the

 52-6    child since the birth;

 52-7                      (I)  contumaciously refused to submit to a

 52-8    reasonable and lawful order of a court under Chapter 264;

 52-9                      (J)  been the major cause of:

52-10                            (i)  the failure of the child to be

52-11    enrolled in school as required by the Education Code; or

52-12                            (ii)  the child's absence from the child's

52-13    home without the consent of the parents or guardian for a

52-14    substantial length of time or without the intent to return;

52-15                      (K)  executed before or after the suit is filed

52-16    an unrevoked or irrevocable affidavit of relinquishment of parental

52-17    rights as provided by this chapter;

52-18                      (L)  been adjudicated to be criminally

52-19    responsible for the death or serious injury of a child;

52-20                      (M)  had his or her parent-child relationship

52-21    terminated with respect to another child based on a finding that

52-22    the parent's conduct was in violation of Paragraph (D) or (E) or

52-23    substantially equivalent provisions of the law of another state;

52-24    [or]

52-25                      (N)  constructively abandoned the child who has

 53-1    been in the permanent or temporary managing conservatorship of the

 53-2    Department of Protective and Regulatory Services or an authorized

 53-3    agency for not less than six months [one year], and:

 53-4                            (i)  the department or authorized agency

 53-5    has made reasonable efforts to return the child to the parent;

 53-6                            (ii)  the parent has not regularly visited

 53-7    or maintained significant contact with the child; and

 53-8                            (iii)  the parent has demonstrated an

 53-9    inability to provide the child with a safe environment; or

53-10                      (O)  failed to comply with the provisions of a

53-11    court order that specifically established the actions necessary for

53-12    the parent to obtain the return of the child who has been in the

53-13    permanent or temporary managing conservatorship of the Department

53-14    of Protective and Regulatory Services for not less than nine months

53-15    as a result of the child's removal from the parent under Chapter

53-16    262 for the abuse or neglect of the child; and

53-17                (2)  that termination is in the best interest of the

53-18    child.

53-19          SECTION 45.  Subchapter B, Chapter 201, Family Code, is

53-20    amended by adding Section 201.1085 to read as follows:

53-21          Sec. 201.1085.  DISCRETIONARY APPOINTMENT OF MASTER FOR CHILD

53-22    PROTECTION CASES.  The presiding judge may appoint a master for a

53-23    court handling child protection cases if the court needs assistance

53-24    in order to process the cases in a reasonable time.

53-25          SECTION 46.  Section 261.001, Family Code, is amended by

 54-1    adding Subdivision (7) to read as follows:

 54-2                (7)  "Board" means the Board of Protective and

 54-3    Regulatory Services.

 54-4          SECTION 47.  Section 261.107, Family Code, is amended to read

 54-5    as follows:

 54-6          Sec. 261.107.  False Report; Penalty.  A person commits an

 54-7    offense if the person knowingly or intentionally makes a report as

 54-8    provided in this chapter that the person knows is false or lacks

 54-9    factual foundation.  An offense under this section [subsection] is

54-10    a Class A [B] misdemeanor.

54-11          SECTION 48.  Subchapter D, Chapter 261, Family Code, is

54-12    amended by adding Section 261.3015 to read as follows:

54-13          Sec. 261.3015.  FLEXIBLE RESPONSE SYSTEM.  (a)  In assigning

54-14    priorities and prescribing investigative procedures based on the

54-15    severity and immediacy of the alleged harm to a child under Section

54-16    261.301(d), the board by rule shall establish a flexible response

54-17    system to allow the department to allocate resources by

54-18    investigating serious cases of abuse and neglect and providing

54-19    assessment and family preservation services in less serious cases.

54-20          (b)  The classification under the flexible response system of

54-21    a case may be changed as warranted by the circumstances.

54-22          (c)  The department may implement the flexible response

54-23    system by establishing a pilot program in a single department

54-24    service region.  The department shall study the results of the

54-25    system in the region in determining the method by which to

 55-1    implement the system statewide.

 55-2          SECTION 49.  Section 261.311, Family Code, is amended to read

 55-3    as follows:

 55-4          Sec. 261.311.  [NOTICE OF] INTERVIEW OR EXAMINATION OF CHILD.

 55-5    (a)  The department or the designated agency shall interview or

 55-6    examine a child who is the subject of a report of suspected child

 55-7    abuse or neglect.

 55-8          (b)  When [If,] during an investigation[,] a representative

 55-9    of the department or the designated agency conducts an interview

55-10    with or an examination of a child, the department or designated

55-11    agency shall make a reasonable effort before 24 hours after the

55-12    time of the interview or examination to notify each parent of the

55-13    child and the child's legal guardian, if one has been appointed, of

55-14    the nature of the allegation and of the fact that the interview or

55-15    examination was conducted.

55-16          (c)  The notice required by Subsection (b) is not required if

55-17    the department or agency determines that the notice is likely to

55-18    endanger the safety of the child who is the subject of the report,

55-19    the person who made the report, or any other person who

55-20    participates in the investigation of the report.

55-21          (d)  The notice required by Subsection (b) may be delayed at

55-22    the request of a law enforcement agency if notification during the

55-23    required time would interfere with an ongoing criminal

55-24    investigation.

55-25          SECTION 50.  Subchapter D, Chapter 261, Family Code, is

 56-1    amended by adding Section 261.315 to read as follows:

 56-2          Sec. 261.315.  REMOVAL OF CERTAIN INVESTIGATION INFORMATION

 56-3    FROM RECORDS.  (a)  At the conclusion of an investigation in which

 56-4    the department determines that the person alleged to have abused or

 56-5    neglected a child did not commit abuse or neglect, the department

 56-6    shall notify the person of the person's right to request the

 56-7    department to remove information about the person's alleged role in

 56-8    the abuse or neglect report from the department's records.

 56-9          (b)  On request under Subsection (a) by a person whom the

56-10    department has determined did not commit abuse or neglect, the

56-11    department shall remove information from the department's records

56-12    concerning the person's alleged role in the abuse or neglect

56-13    report.

56-14          (c)  The board shall adopt rules necessary to administer this

56-15    section.

56-16          SECTION 51.  Subsection (a), Section 262.109, Family Code, is

56-17    amended to read as follows:

56-18          (a)  The department or other agency must give written notice

56-19    as prescribed by this section to each parent of the child or to the

56-20    child's [parent,] conservator[,] or legal guardian when a

56-21    representative of the Department of Protective and Regulatory

56-22    Services or other agency takes possession of a child under this

56-23    chapter.

56-24          SECTION 52.  Subsection (c), Section 262.201, Family Code, is

56-25    amended to read as follows:

 57-1          (c)  If the court finds sufficient evidence to satisfy a

 57-2    person of ordinary prudence and caution that there is a continuing

 57-3    danger to the physical health or safety of the child and for the

 57-4    child to remain in the home is contrary to the welfare of the

 57-5    child, the court shall:

 57-6                (1)  issue an appropriate temporary order under Chapter

 57-7    105; and

 57-8                (2)  inform each parent in open court that parental and

 57-9    custodial rights and duties may be subject to restriction or to

57-10    termination unless the parent or parents are willing and able to

57-11    provide the child with a safe environment.

57-12          SECTION 53.  Subchapter A, Chapter 263, Family Code, is

57-13    amended by adding Section 263.006 to read as follows:

57-14          Sec. 263.006.  WARNING TO PARENTS.  At the status hearing

57-15    under Subchapter C and at each permanency hearing under Subchapter

57-16    D held after the court has rendered a temporary order appointing

57-17    the department as temporary managing conservator, the court shall

57-18    inform each parent in open court that parental and custodial rights

57-19    and duties may be subject to restriction or to termination unless

57-20    the parent or parents are willing and able to provide the child

57-21    with a safe environment.

57-22          SECTION 54.  Section 263.201, Family Code, is amended to read

57-23    as follows:

57-24          Sec. 263.201.  STATUS HEARING; TIME.  Not later than the 60th

57-25    day after the date the court renders a temporary order appointing

 58-1    the department as temporary managing conservator of a child [of a

 58-2    full adversary hearing under Chapter 262], the court shall hold a

 58-3    status hearing to review the child's status and the permanency plan

 58-4    developed for the child.

 58-5          SECTION 55.  The heading to Subchapter D, Chapter 263, Family

 58-6    Code, is amended to read as follows:

 58-7                SUBCHAPTER D.  PERMANENCY [REVIEW] HEARINGS

 58-8          SECTION 56.  Subsections (a) and (b), Section 263.301, Family

 58-9    Code, are amended to read as follows:

58-10          (a)  Notice of a permanency [review] hearing shall be given

58-11    as provided by Rule 21a, Texas Rules of Civil Procedure, to all

58-12    persons entitled to notice of the hearing.

58-13          (b)  The following persons are entitled to at least 10 days'

58-14    notice of a permanency hearing [to review a child's placement] and

58-15    are entitled to present evidence and be heard at the hearing:

58-16                (1)  the department;

58-17                (2)  the foster parent or director of the group home or

58-18    institution where the child is residing;

58-19                (3)  each parent of the child;

58-20                (4)  the managing conservator or guardian of the child;

58-21    [and]

58-22                (5)  an attorney ad litem appointed for the child under

58-23    Chapter 107;

58-24                (6)  a volunteer advocate appointed for the child under

58-25    Chapter 107; and

 59-1                (7)  any other person or agency named by the court to

 59-2    have an interest in the child's welfare.

 59-3          SECTION 57.  Section 263.302, Family Code, is amended to read

 59-4    as follows:

 59-5          Sec. 263.302.  CHILD'S ATTENDANCE AT HEARING.  The [court may

 59-6    dispense with the attendance of the] child shall attend each

 59-7    permanency hearing unless the court specifically excuses the

 59-8    child's attendance.  Failure by the child to attend a hearing does

 59-9    not affect the validity of an order rendered at the [at a placement

59-10    review] hearing.

59-11          SECTION 58.  Subchapter D, Chapter 263, Family Code, is

59-12    amended by adding Section 263.3025 to read as follows:

59-13          Sec. 263.3025.  PERMANENCY PLAN.  (a)  The department shall

59-14    prepare a permanency plan for a child for whom the department has

59-15    been appointed temporary managing conservator.  The department

59-16    shall give a copy of the plan to each person entitled to notice

59-17    under Section 263.301(b) not later than the 10th day before the

59-18    date of the child's first permanency hearing.

59-19          (b)  In addition to the requirements of the department rules

59-20    governing permanency planning, the permanency plan must contain the

59-21    information required to be included in a permanency progress report

59-22    under Section 263.303.

59-23          (c)  The department shall modify the permanency plan for a

59-24    child as required by the circumstances and needs of the child.

59-25          SECTION 59.  Section 263.303, Family Code, is amended to read

 60-1    as follows:

 60-2          Sec. 263.303.  PERMANENCY PROGRESS [STATUS] REPORT.  (a)  Not

 60-3    later than the 10th day before the date set for each permanency

 60-4    hearing other than the first permanency [review] hearing, the

 60-5    department or other authorized agency shall file with the court and

 60-6    provide to each party, the child's attorney ad litem, and the

 60-7    child's volunteer advocate a permanency progress [status] report

 60-8    unless the court orders a different period for providing the report

 60-9    [or orders that a report is not required for a specific hearing].

60-10          (b)  The permanency progress [status] report must:

60-11                (1)  recommend that the suit be dismissed; or

60-12                (2)  recommend that the suit continue, and:

60-13                      (A)  identify the date for dismissal of the suit

60-14    under this chapter;

60-15                      (B)  provide:

60-16                            (i)  the name of any person entitled to

60-17    notice under Chapter 102 who has not been served;

60-18                            (ii)  a description of the efforts by the

60-19    department or another agency to locate and request service of

60-20    citation; and

60-21                            (iii)  a description of each parent's

60-22    assistance in providing information necessary to locate an unserved

60-23    party;

60-24                      (C)  evaluate [all relevant information

60-25    concerning each of the guidelines under this chapter and] the

 61-1    parties' compliance with temporary orders and with the service

 61-2    plan;

 61-3                      (D)  evaluate whether the child's placement in

 61-4    substitute care meets the child's needs and recommend other plans

 61-5    or services to meet the child's special needs or circumstances;

 61-6                      (E)  describe the permanency plan for the child

 61-7    and recommend actions necessary to ensure that a final order

 61-8    consistent with that permanency plan is rendered before the date

 61-9    for dismissal of the suit under this chapter; and

61-10                      (F) [(2)  recommend one of the following actions:]

61-11                      [(A)  that the child be returned to the child's

61-12    home and that the suit be dismissed;]

61-13                      [(B)  that the child be returned to the child's

61-14    home with the department or other agency retaining conservatorship;]

61-15                      [(C)  that the child remain in substitute care

61-16    for a specified period and that the child's parents continue to

61-17    work toward providing the child with a safe environment;]

61-18                      [(D)  that the child remain in substitute care

61-19    for a specified period and that termination of parental rights be

61-20    sought under this code;]

61-21                      [(E)  that a child who has resided in substitute

61-22    care for at least 18 months be placed or remain in permanent or

61-23    long-term substitute care because of the child's special needs or

61-24    circumstances; or]

61-25                      [(F)  that other plans be made or other services

 62-1    provided in accordance with the child's special needs or

 62-2    circumstances; and]

 62-3                [(3)]  with respect to a child 16 years of age or

 62-4    older, identify the services needed to assist the child in the

 62-5    transition to adult life.

 62-6          (c)  A parent whose parental rights are the subject of a suit

 62-7    affecting the parent-child relationship, the attorney for that

 62-8    parent, or the child's attorney ad litem or guardian ad litem may

 62-9    file a response to the department's or other agency's report filed

62-10    under Subsection (b).  A response must be filed not later than the

62-11    third day before the date of the hearing.

62-12          SECTION 60.  Section 263.304, Family Code, is amended to read

62-13    as follows:

62-14          Sec. 263.304.  INITIAL PERMANENCY [REVIEW] HEARING; TIME.

62-15    Not later than the 180th day after the date the court renders a

62-16    temporary order appointing the department as temporary managing

62-17    conservator of a child [of the conclusion of the full adversary

62-18    hearing under Chapter 262], the court shall hold a permanency

62-19    hearing to review the status of, and permanency plan for, the [a]

62-20    child to ensure that a final order consistent with that permanency

62-21    plan is rendered before the date for dismissal of the suit under

62-22    this chapter [in substitute care in the court's jurisdiction,

62-23    including the time for the completion of the plan and the projected

62-24    date for the achievement of the child's permanency plan].

62-25          SECTION 61.  Section 263.305, Family Code, is amended to read

 63-1    as follows:

 63-2          Sec. 263.305.  SUBSEQUENT PERMANENCY [REVIEW] HEARINGS.  A

 63-3    subsequent permanency hearing before entry of a final order

 63-4    [Subsequent review hearings] shall be held [not earlier than 5 1/2

 63-5    months and] not later than the 120th day [seven months] after the

 63-6    date of  the last permanency hearing in the suit.  For [unless,

 63-7    for] good cause shown or on the court's own motion [by a party],

 63-8    the court may order more frequent hearings [an earlier hearing is

 63-9    approved by the court].

63-10          SECTION 62.  Section 263.306, Family Code, is amended to read

63-11    as follows:

63-12          Sec. 263.306.  PERMANENCY [REVIEW] HEARINGS:  PROCEDURE.  At

63-13    each permanency [review] hearing the court shall [determine]:

63-14                (1)  identify [the identity of] all persons or parties

63-15    present at the hearing or those given notice but failing to appear;

63-16                (2)  review the efforts of the department or another

63-17    agency in:

63-18                      (A)  attempting to locate all necessary persons;

63-19                      (B)  requesting service of citation; and

63-20                      (C)  obtaining the assistance of a parent in

63-21    providing information necessary to locate an absent parent;

63-22                (3)  return the child to the parent or parents if

63-23    [whether] the child's parent or parents are willing and able to

63-24    provide the child with a safe environment and the return of the

63-25    child is in the child's best interest;

 64-1                (4)  return the child to a person or entity, other than

 64-2    a parent, entitled to service under Chapter 102 if the person or

 64-3    entity is willing and able to provide the child with a safe

 64-4    environment and the return of the child is in the child's best

 64-5    interest;

 64-6                (5)  evaluate the department's efforts to identify

 64-7    relatives who could provide the child with a safe environment, if

 64-8    the child is not returned to a parent or another person or entity

 64-9    entitled to service under Chapter 102;

64-10                (6)  evaluate the parties' compliance with temporary

64-11    orders and

64-12                [(3)  the extent to which the child's parents have

64-13    taken the necessary actions or responsibilities toward achieving

64-14    the plan goal during the period of the service plan and the extent

64-15    to which the department or other authorized agency has provided

64-16    assistance to the parents as provided in] the service plan;

64-17                (7)  determine [(4)] whether:

64-18                      (A)  the child continues to need substitute care;

64-19                      (B)  [and whether] the child's current placement

64-20    is appropriate for meeting the child's needs; and

64-21                      (C)  other plans or services are needed to meet

64-22    the child's special needs or circumstances;

64-23                (8)  if the child is placed in institutional care,

64-24    determine whether efforts have been made to ensure placement of the

64-25    child in the least restrictive environment consistent with the best

 65-1    interest and special needs of the child;

 65-2                (9)  if the child is 16 years of age or older, order

 65-3    services that are needed to assist the child in making the

 65-4    transition from substitute care to independent living if the

 65-5    services are available in the community;

 65-6                (10)  determine plans, services, and further temporary

 65-7    orders necessary to ensure that a final order is rendered before

 65-8    the date for dismissal of the suit under this chapter; and

 65-9                (11)  determine the date for dismissal of the suit

65-10    under this chapter and give notice in open court to all parties of:

65-11                      (A)  the dismissal date;

65-12                      (B)  the date of the next permanency hearing; and

65-13                      (C)  the date the suit is set for trial.

65-14                [(5)  a date for achieving the child's permanency plan;]

65-15                [(6)  if the child has been in substitute care for not

65-16    less than 18 months, the future status of the child and the

65-17    appropriateness of the date by which the child may return home and

65-18    whether to render further appropriate orders;]

65-19                [(7)  if the child is in substitute care outside the

65-20    state, whether the out-of-state placement continues to be

65-21    appropriate and in the best interest of the child;]

65-22                [(8)  whether the child's parents are willing and able

65-23    to provide the child with a safe environment without the assistance

65-24    of a service plan and, if so, return the child to the parents;]

65-25                [(9)  whether the child's parents are willing and able

 66-1    to provide the child with a safe environment with the assistance of

 66-2    a service plan and, if so, return the child or continue the

 66-3    placement of the child in the child's home under the department's

 66-4    or other agency's supervision;]

 66-5                [(10)  whether the child's parents are presently

 66-6    unwilling or unable to provide the child with a safe environment,

 66-7    even with the assistance of a service plan, and, if so, order the

 66-8    child to remain under the department's or other agency's managing

 66-9    conservatorship for a period of time specified by the court;]

66-10                [(11)  whether a long-term substitute care placement is

66-11    in the child's best interest because of the child's special needs

66-12    or circumstances and, if so, begin a long-term substitute care

66-13    placement and if the child is placed in institutional care, whether

66-14    efforts have been made to ensure placement of the child in the

66-15    least restrictive environment consistent with the best interest and

66-16    special needs of the child;]

66-17                [(12)  whether a child is 16 years of age or older and,

66-18    if so, order the services that are needed to assist the child in

66-19    making the transition from substitute care to independent living if

66-20    the services are available in the community;]

66-21                [(13)  whether the child has been placed with the

66-22    department under a voluntary placement agreement and, if so, order

66-23    that the department will institute further proceedings or return

66-24    the child to the parents;]

66-25                [(14)  whether the department or authorized agency has

 67-1    custody, care, and control of the child under an affidavit of

 67-2    relinquishment of parental rights naming the department managing

 67-3    conservator and, if so, direct the department or authorized agency

 67-4    to institute further proceedings; and]

 67-5                [(15)  whether parental rights to the child have been

 67-6    terminated and, if so, determine whether the department or

 67-7    authorized agency will attempt to place the child for adoption.]

 67-8          SECTION 63.  Chapter 263, Family Code, is amended by adding

 67-9    Subchapters E and F to read as follows:

67-10        SUBCHAPTER E.  FINAL ORDER FOR CHILD UNDER DEPARTMENT CARE

67-11          Sec. 263.401.  DISMISSAL AFTER ONE YEAR; EXTENSION.

67-12    (a)  Unless the court has rendered a final order or granted an

67-13    extension under Subsection (b), on the first Monday after the first

67-14    anniversary of the date the court rendered a temporary order

67-15    appointing the department as temporary managing conservator, the

67-16    court shall dismiss the suit affecting the parent-child

67-17    relationship filed by the department that requests termination of

67-18    the parent-child relationship or requests that the department be

67-19    named conservator of the child.

67-20          (b)  On or before the time described by Subsection (a) for

67-21    the dismissal of the suit, the court may extend the court's

67-22    jurisdiction of the suit for a period stated in the extension

67-23    order, but not longer than 180 days after the time described by

67-24    Subsection (a), if the court has continuing jurisdiction of the

67-25    suit and the appointment of the department as temporary managing

 68-1    conservator is in the best interest of the child.  If the court

 68-2    grants an extension, the extension order must also:

 68-3                (1)  schedule the new date for dismissal of the suit;

 68-4    and

 68-5                (2)  make further temporary orders for the safety and

 68-6    welfare of the child as necessary to avoid further delay in

 68-7    resolving the suit.

 68-8          (c)  If the court grants an extension, the court shall render

 68-9    a final order or dismiss the suit on or before the date specified

68-10    in the extension order and may not grant an additional extension.

68-11          (d)  For purposes of this section, a final order is an order

68-12    that:

68-13                (1)  requires that a child be returned to the child's

68-14    parent;

68-15                (2)  names a relative of the child or another person as

68-16    the child's managing conservator;

68-17                (3)  without terminating the parent-child relationship,

68-18    appoints the department as the managing conservator of the child;

68-19    or

68-20                (4)  terminates the parent-child relationship and

68-21    appoints a relative of the child, another suitable person, or the

68-22    department as managing conservator of the child.

68-23          Sec. 263.402.  RETURN OF CHILD TO PARENT OR PLACEMENT WITH

68-24    RELATIVE.  (a)  Notwithstanding Section 263.401, the court may

68-25    retain jurisdiction and not dismiss the suit or render a final

 69-1    order as required by that section if the court:

 69-2                (1)  finds that retaining jurisdiction under this

 69-3    section is in the best interest of the child;

 69-4                (2)  orders the department to return the child to the

 69-5    child's parent or to place the child with a relative of the child;

 69-6                (3)  requires that the department continue to serve as

 69-7    temporary managing conservator of the child; and

 69-8                (4)  orders the department to monitor the child's

 69-9    placement to ensure that the child is in a safe environment.

69-10          (b)  If the court renders an order under this section, the

69-11    court must include in the order specific findings regarding the

69-12    grounds for the order.

69-13          Sec. 263.403.  FINAL ORDER APPOINTING DEPARTMENT AS MANAGING

69-14    CONSERVATOR WITHOUT TERMINATING PARENTAL RIGHTS.  (a)  The court

69-15    may render a final order appointing the department as managing

69-16    conservator of the child without terminating the rights of the

69-17    parent of the child if the court finds that:

69-18                (1)  appointment of a parent as managing conservator

69-19    would not be in the best interest of the child because the

69-20    appointment would significantly impair the child's physical health

69-21    or emotional development; and

69-22                (2)  it would not be in the best interest of the child

69-23    to appoint a relative of the child or another person as managing

69-24    conservator.

69-25          (b)  In determining whether the department should be

 70-1    appointed as managing conservator of the child without terminating

 70-2    the rights of a parent of the child, the court shall take the

 70-3    following factors into consideration:

 70-4                (1)  that the child will reach 18 years of age in not

 70-5    less than three years;

 70-6                (2)  that the child is 12 years of age or older and has

 70-7    expressed a strong desire against termination or being adopted;

 70-8                (3)  that the child has special medical or behavioral

 70-9    needs that make adoption of the child unlikely; and

70-10                (4)  the needs and desires of the child.

70-11             (Sections 263.404-263.500 reserved for expansion

70-12                 SUBCHAPTER F.  PLACEMENT REVIEW HEARINGS

70-13          Sec. 263.501.  PLACEMENT REVIEW AFTER FINAL ORDER.  (a)  If

70-14    the department has been named as a child's managing conservator in

70-15    a final order that does not include termination of parental rights,

70-16    the court shall conduct a placement review hearing at least once

70-17    every six months until the child becomes an adult.

70-18          (b)  If the department has been named as a child's managing

70-19    conservator in a final order that terminates a parent's parental

70-20    rights, the court shall conduct a placement review hearing at least

70-21    once every six months until the date the child is adopted or the

70-22    child becomes an adult.

70-23          (c)  Notice of a placement review hearing shall be given as

70-24    provided by Rule 21a, Texas Rules of Civil Procedure, to each

70-25    person entitled to notice of the hearing.

 71-1          (d)  The following are entitled to not less than 10 days'

 71-2    notice of a placement review hearing:

 71-3                (1)  the department;

 71-4                (2)  the foster parent or director of the group home or

 71-5    institution in which the child is residing;

 71-6                (3)  each parent of the child;

 71-7                (4)  each possessory conservator or guardian of the

 71-8    child;

 71-9                (5)  the child's attorney ad litem and volunteer

71-10    advocate, if the appointments were not dismissed in the final

71-11    order; and

71-12                (6)  any other person or agency named by the court as

71-13    having an interest in the child's welfare.

71-14          (e)  The court may dispense with the requirement that the

71-15    child attend a placement review hearing.

71-16          Sec. 263.502.  PLACEMENT REVIEW REPORT.  (a)  Not later than

71-17    the 10th day before the date set for a placement review hearing,

71-18    the department or other authorized agency shall file a placement

71-19    review report with the court and provide a copy to each person

71-20    entitled to notice under Section 263.501(d).

71-21          (b)  For good cause shown, the court may order a different

71-22    time for filing the placement review report or may order that a

71-23    report is not required for a specific hearing.

71-24          (c)  The placement review report must:

71-25                (1)  evaluate whether the child's current placement is

 72-1    appropriate for meeting the child's needs;

 72-2                (2)  evaluate whether efforts have been made to ensure

 72-3    placement of the child in the least restrictive environment

 72-4    consistent with the best interest and special needs of the child if

 72-5    the child is placed in institutional care;

 72-6                (3)  identify the services that are needed to assist a

 72-7    child who is at least 16 years of age in making the transition from

 72-8    substitute care to independent living if the services are available

 72-9    in the community;

72-10                (4)  identify other plans or services that are needed

72-11    to meet the child's special needs or circumstances; and

72-12                (5)  describe the efforts of the department or

72-13    authorized agency to place the child for adoption if parental

72-14    rights to the child have been terminated and the child is eligible

72-15    for adoption.

72-16          Sec. 263.503.  PLACEMENT REVIEW HEARINGS; PROCEDURE.  At each

72-17    placement review hearing, the court shall determine whether:

72-18                (1)  the child's current placement is appropriate for

72-19    meeting the child's needs;

72-20                (2)  efforts have been made to ensure placement of the

72-21    child in the least restrictive environment consistent with the best

72-22    interest and special needs of the child if the child is placed in

72-23    institutional care;

72-24                (3)  the services that are needed to assist a child who

72-25    is at least 16 years of age in making the transition from

 73-1    substitute care to independent living are available in the

 73-2    community;

 73-3                (4)  other plans or services are needed to meet the

 73-4    child's special needs or circumstances; and

 73-5                (5)  the department or authorized agency has exercised

 73-6    due diligence in attempting to place the child for adoption if

 73-7    parental rights to the child have been terminated and the child is

 73-8    eligible for adoption.

 73-9          SECTION 64.  Section 264.009, Family Code, is amended to read

73-10    as follows:

73-11          Sec. 264.009.  LEGAL REPRESENTATION OF DEPARTMENT.  (a)  In

73-12    [Except as provided by Subsection (b), in] any action under this

73-13    code [title], the department shall be represented in court by

73-14    [the]:

73-15                (1)  the county [prosecuting] attorney [who represents

73-16    the state in criminal cases in the district or county court] of the

73-17    county where the action is brought, unless the district attorney or

73-18    criminal district attorney elects to provide representation; or

73-19                (2)  if the case is one in which a conflict of interest

73-20    or special circumstances exist, an attorney employed by the

73-21    department or who has contracted with the department under

73-22    Subsection (c) to provide representation [attorney general].

73-23          (b)  In a county with a population of 2,800,000 or more, in

73-24    an action under this code [title], the department shall be

73-25    represented in court by [the]:

 74-1                (1)  the attorney who represents the state in civil

 74-2    cases in the district or county court of the county where the

 74-3    action is brought; or

 74-4                (2)  if the case is one in which a conflict of interest

 74-5    or special circumstances exists, an attorney employed by the

 74-6    department or who has contracted with the department under

 74-7    Subsection (c) to provide representation [attorney general].

 74-8          (c)  The department may contract with a county attorney, a

 74-9    district attorney, a criminal district attorney, the attorney

74-10    general, or a private attorney to provide reimbursement from any

74-11    available state or federal funds of the costs of representing the

74-12    department in an action under this code.

74-13          SECTION 65.  Subchapter B, Chapter 264, Family Code, is

74-14    amended by amending Section 264.106 and adding Section 264.1061 to

74-15    read as follows:

74-16          Sec. 264.106.  CONTRACTS FOR SUBSTITUTE CARE SERVICES

74-17    [CONTRACT RESIDENTIAL CARE].  (a)  The department shall:

74-18                (1)  assess the need for substitute care services

74-19    throughout the state; and

74-20                (2)  contract with substitute care providers only to

74-21    the extent necessary to meet the need for those services.

74-22          (b)  Before contracting with a substitute care provider, the

74-23    department shall determine whether:

74-24                (1)  community resources are available to support

74-25    children placed under the provider's care; and

 75-1                (2)  the appropriate public school district has

 75-2    sufficient resources to support children placed under the

 75-3    provider's care if the children will attend public school.

 75-4          (c)  In addition to the requirements of Section 40.058(a),

 75-5    Human Resources Code, a contract with a substitute care provider

 75-6    must include provisions that:

 75-7                (1)  enable the department to monitor the effectiveness

 75-8    of the provider's services; and

 75-9                (2)  authorize the department to terminate the contract

75-10    or impose sanctions for a violation of a provision of the contract

75-11    that specifies performance criteria.

75-12          (d)  In determining whether to contract with a substitute

75-13    care provider, the department shall consider the provider's

75-14    performance under any previous contract for substitute care

75-15    services between the department and the provider.

75-16          (e)  In this section, "substitute care provider" means a

75-17    person who provides residential care for children for 24 hours a

75-18    day, including:

75-19                (1)  a child-care institution, as defined by Section

75-20    42.002, Human Resources Code;

75-21                (2)  a child-placing agency, as defined by Section

75-22    42.002, Human Resources Code;

75-23                (3)  a foster group home or foster family home, as

75-24    defined by Section 42.002, Human Resources Code; and

75-25                (4)  an agency group home or agency home, as defined by

 76-1    Section 42.002, Human Resources Code, other than an agency group

 76-2    home, agency home, or a foster home verified or certified by the

 76-3    department [make reasonable efforts to ensure that the expenditure

 76-4    of appropriated funds to purchase contract residential care for

 76-5    children is allocated to providers on a fixed monthly basis if:]

 76-6                [(1)  the allocation is cost effective; and]

 76-7                [(2)  the number, type, needs, and conditions of the

 76-8    children served are reasonably constant.]

 76-9          [(b)  This section does not apply to the purchase of care in

76-10    a foster family home].

76-11          Sec. 264.1061.  FOSTER PARENT PERFORMANCE.  The department

76-12    shall monitor the performance of a foster parent who does not

76-13    provide substitute care services through an entity under contract

76-14    with or licensed by the department.  The method under which

76-15    performance is monitored must include the use of objective criteria

76-16    by which the foster parent's performance may be assessed.  The

76-17    department shall include references to the criteria in a written

76-18    agreement between the department and the foster parent concerning

76-19    the foster parent's services.

76-20          SECTION 66.  Section 264.107, Family Code, is amended to read

76-21    as follows:

76-22          Sec. 264.107.  Placement of Children.  (a)  In making a

76-23    placement of a child removed from the home of the child's custodial

76-24    parent, the department shall consider placing the child in the home

76-25    of the child's noncustodial parent.

 77-1          (b)  The department shall use a system for the placement of

 77-2    children in contract residential care, including foster care, that

 77-3    conforms to the levels of care adopted and maintained by the Health

 77-4    and Human Services Commission.

 77-5          (c) [(b)]  The department shall use the standard application

 77-6    for the placement of children in contract residential care as

 77-7    adopted and maintained by the Health and Human Services Commission.

 77-8          SECTION 67.  Subchapter B, Chapter 264, Family Code, is

 77-9    amended by adding Section 264.1075 to read as follows:

77-10          Sec. 264.1075.  USE OF ASSESSMENT SERVICES.  Before placing a

77-11    child in substitute care, the department shall use assessment

77-12    services provided by a child-care facility or child-placing agency

77-13    in accordance with Section 42.0425, Human Resources Code, to

77-14    determine the appropriate substitute care for the child.

77-15          SECTION 68.  Subchapter C, Chapter 264, Family Code, is

77-16    amended by adding Sections 264.206 and 264.207 to read as follows:

77-17          Sec. 264.206.  SEARCH FOR ADOPTIVE PARENTS.  (a)  The

77-18    department shall begin its efforts to locate qualified persons to

77-19    adopt a child, including persons registered with the adoptive

77-20    parent registry under Subchapter B, at the time the department's

77-21    permanency plan for the child becomes the termination of the

77-22    parent-child relationship.

77-23          (b)  The department shall report to the court in which the

77-24    department petitions for termination of the parent-child

77-25    relationship on the child's adoptability and the department's

 78-1    search for prospective adoptive parents for the child, including

 78-2    information relating to the department's efforts to work with

 78-3    licensed child-placing agencies.

 78-4          Sec. 264.207.  DEPARTMENT PLANNING AND ACCOUNTABILITY.

 78-5    (a)  The department shall adopt policies that provide for the

 78-6    improvement of the department's services for children and families,

 78-7    including policies that provide for conducting a home study within

 78-8    four months after the date an applicant is approved for an adoption

 78-9    and documenting the results of the home study within 30 days after

78-10    the date the study is completed.  The policies adopted under this

78-11    section must:

78-12                (1)  be designed to increase the accountability of the

78-13    department to individuals who receive services and to the public;

78-14    and

78-15                (2)  assure consistency of services provided by the

78-16    department in the different regions of the state.

78-17          (b)  To accomplish the goals stated in Subsection (a), the

78-18    department shall:

78-19                (1)  establish time frames for the initial screening of

78-20    families seeking to adopt children;

78-21                (2)  provide for the evaluation of the effectiveness of

78-22    the department's management-level employees in expeditiously making

78-23    permanent placements for children;

78-24                (3)  establish, as feasible, comprehensive assessment

78-25    services in various locations in the state to determine the needs

 79-1    of children and families served by the department;

 79-2                (4)  emphasize and centralize the monitoring and

 79-3    promoting of the permanent placement of children receiving

 79-4    department services;

 79-5                (5)  establish goals and performance measures in the

 79-6    permanent placement of children;

 79-7                (6)  seek private licensed child-placing agencies to

 79-8    place a child in the department's managing conservatorship who has

 79-9    been available for permanent placement for more than 90 days;

79-10                (7)  provide information to private licensed

79-11    child-placing agencies concerning children under Subdivision (6);

79-12                (8)  provide financial incentives for a private

79-13    licensed child-placing agency that places a child, as defined by

79-14    Section 162.301, under Subdivision (6);

79-15                (9)  encourage foster parents to be approved by the

79-16    department as both foster parents and adoptive parents;

79-17                (10)  address failures by the department's service

79-18    regions in making permanent placements for children in a reasonable

79-19    time; and

79-20                (11)  require the department's service regions to

79-21    participate in the Texas Adoption Resources Exchange.

79-22          SECTION 69.  Subchapter B, Chapter 531, Government Code, is

79-23    amended by adding Section 531.047 to read as follows:

79-24          Sec. 531.047.  SUBSTITUTE CARE PROVIDER OUTCOME STANDARDS.

79-25    (a)  The commission, after consulting with representatives from the

 80-1    Department of Protective and Regulatory Services, the Texas

 80-2    Juvenile Probation Commission, and the Texas Department of Mental

 80-3    Health and Mental Retardation, shall by rule adopt result-oriented

 80-4    standards that a provider of substitute care services for children

 80-5    under the care of the state must achieve.

 80-6          (b)  A health and human services agency that purchases

 80-7    substitute care services must include the result-oriented standards

 80-8    as requirements in each substitute care service provider contract.

 80-9          (c)  A health and human services agency may provide

80-10    information about a substitute care provider, including rates,

80-11    contracts, outcomes, and client information, to another agency that

80-12    purchases substitute care services.

80-13          SECTION 70.  (a)  Representatives from each state agency that

80-14    purchases substitute care services for children under the state's

80-15    care shall meet to:

80-16                (1)  assess the total need for substitute care services

80-17    in this state; and

80-18                (2)  develop and implement a competitive bidding

80-19    process to purchase substitute care services.

80-20          (b)  Except as provided by Subsection (c) of this section,

80-21    each state agency must use the competitive bidding process created

80-22    under Subsection (a) of this section to purchase substitute care

80-23    services.

80-24          (c)  A state agency is not required to use the competitive

80-25    bidding process to purchase:

 81-1                (1)  foster family care services;

 81-2                (2)  substitute care services in a geographic area of

 81-3    this state that has a shortage of service providers; or

 81-4                (3)  specialized substitute care services if there is a

 81-5    shortage of providers of the specialized services.

 81-6          (d)  The state agency representatives shall meet and develop

 81-7    the competitive bidding process for purchasing substitute care

 81-8    services as soon as possible after the effective date of this Act.

 81-9          (e)  Not later than September 1, 1998, the Department of

81-10    Protective and Regulatory Services shall develop and implement a

81-11    pilot program under which the department purchases substitute care

81-12    services through a competitive bidding process.  The department

81-13    must design the pilot program to produce a substitute care system

81-14    that is outcome-based and that uses the department's outcome

81-15    measures.

81-16          SECTION 71.  (a)  Sections 263.308 and 263.309, Family Code,

81-17    are repealed.

81-18          (b)  Section 42.050, Human Resources Code, as amended by

81-19    Chapter 1052, Acts of the 70th Legislature, Regular Session, 1987,

81-20    is repealed.

81-21          SECTION 72.  (a)  Except as otherwise provided by this Act,

81-22    this Act takes effect September 1, 1997.

81-23          (b)  The Board of Protective and Regulatory Services shall

81-24    adopt rules necessary to administer the changes in law made by this

81-25    Act not later than November 1, 1997.

 82-1          (c)  The changes in law made by this Act in the

 82-2    qualifications of, and the prohibitions applying to, members of the

 82-3    Board of Protective and Regulatory Services do not affect the

 82-4    entitlement of a member serving on the board immediately before

 82-5    September 1, 1997, to continue to carry out the functions of the

 82-6    board for the remainder of the member's term.  The changes in law

 82-7    apply only to a member appointed on or after September 1, 1997.

 82-8    This Act does not prohibit a person who is a member of the board on

 82-9    September 1, 1997, from being reappointed to the board if the

82-10    person has the qualifications required for a member under Chapter

82-11    40, Human Resources Code, as amended by this Act.

82-12          (d)  The executive director of the Department of Protective

82-13    and Regulatory Services shall appoint the members of the strategic

82-14    technology steering committee established by Section 40.0305, Human

82-15    Resources Code, as added by this Act, not later than November 1,

82-16    1997.

82-17          (e)  Except as provided by Section 73 of this Act and

82-18    Subsection (f) of this section, the change in law made by this Act

82-19    relating to a disciplinary proceeding or contested case of the

82-20    Department of Protective and Regulatory Services applies only to a

82-21    proceeding initiated on or after the effective date of this Act.

82-22          (f)  The change in law made by this Act relating to the

82-23    imposition of a penalty or other disciplinary action on a person or

82-24    entity regulated by the Department of Protective and Regulatory

82-25    Services applies only to a violation that occurs on or after the

 83-1    effective date of this Act.  A violation that occurs before the

 83-2    effective date of this Act is governed by the law in effect on the

 83-3    date the violation occurred, and the former law is continued in

 83-4    effect for that purpose.

 83-5          (g)  The change in law made by this Act relating to the

 83-6    qualifications for a license issued by the Department of Protective

 83-7    and Regulatory Services applies only to an application for a

 83-8    license made on or after the effective date of this Act.  An

 83-9    application made before the effective date of this Act is governed

83-10    by the law in effect on the date the application was made, and the

83-11    former law is continued in effect for that purpose.

83-12          (h)  The change in law made by this Act regarding the

83-13    termination of the parent-child relationship applies only to a suit

83-14    affecting the parent-child relationship in which termination of the

83-15    parent-child relationship is sought filed on or after the effective

83-16    date of this Act.  A suit affecting the parent-child relationship

83-17    in which termination of the parent-child relationship is sought

83-18    filed before the effective date of this Act is governed by the law

83-19    in effect on the date the suit was filed, and the former law is

83-20    continued in effect for that purpose.

83-21          SECTION 73.  (a)  The change in law made by this Act relating

83-22    to a contested case hearing conducted by the State Office of

83-23    Administrative Hearings on behalf of the Department of Protective

83-24    and Regulatory Services applies only to a hearing that begins on or

83-25    after January 1, 1998.  Notwithstanding any other provision of this

 84-1    Act, a hearing that begins before that date is governed by the law

 84-2    in effect at the time the hearing begins, and that law is continued

 84-3    in effect for that purpose.

 84-4          (b)  The executive director of the Department of Protective

 84-5    and Regulatory Services and the chief administrative law judge of

 84-6    the State Office of Administrative Hearings may agree to transfer

 84-7    contested cases pending before the Department of Protective and

 84-8    Regulatory Services to the State Office of Administrative Hearings

 84-9    before January 1, 1998.

84-10          SECTION 74.  Section 42.0461, Human Resources Code, as added

84-11    by this Act, applies only to an application for a license or for

84-12    authorization to expand capacity under a license filed on or after

84-13    the effective date of this Act.  An application filed before the

84-14    effective date of this Act is governed by the law in effect at the

84-15    time the application was filed, and the former law is continued in

84-16    effect for that purpose.

84-17          SECTION 75.  (a)  The change in law made by Sections 51

84-18    through 62 of this Act takes effect January 1, 1998.

84-19          (b)  Except as provided by Subsection (c) of this section,

84-20    Sections 51 through 62 of this Act apply to a pending suit

84-21    affecting the parent-child relationship regardless of whether the

84-22    suit was commenced before, on, or after the effective date of this

84-23    Act.

84-24          (c)  If the Department of Protective and Regulatory Services

84-25    has been appointed temporary managing conservator of a child before

 85-1    the effective date of this Act, the court shall establish a date

 85-2    for dismissal of the suit not later than the second anniversary of

 85-3    the date of the next hearing conducted under Chapter 263, Family

 85-4    Code, unless the court has rendered a final order before the

 85-5    dismissal date.

 85-6          SECTION 76.  The Health and Human Services Commission shall

 85-7    adopt the rules required by Section 531.047, Government Code, as

 85-8    added by this Act, not later than January 1, 1998.

 85-9          SECTION 77.  An agency that purchases substitute care

85-10    services shall review the effectiveness of the result-oriented

85-11    standards adopted under Section 531.047, Government Code, as added

85-12    by this Act, and report to the governor, lieutenant governor,

85-13    speaker of the house of representatives, comptroller, and

85-14    Legislative Budget Board not later than January 31, 1999.

85-15          SECTION 78.  Not later than September 15, 1997, each agency

85-16    or subdivision of the state that inspects child-care facilities

85-17    shall submit a copy of the inspection form used by the agency or

85-18    subdivision to the Department of Protective and Regulatory Services

85-19    for the department's use in implementing Section 42.0441, Human

85-20    Resources Code, as added by this Act.

85-21          SECTION 79.  The Department of Protective and Regulatory

85-22    Services shall establish a working group to coordinate the

85-23    processing of child protection cases.  The working group shall

85-24    consist of representatives from the Office of Court Administration,

85-25    the Texas Supreme Court, and district and county attorneys'

 86-1    offices.  The working group shall report its recommendations to the

 86-2    Texas Supreme Court not later than September 1, 1998.  After

 86-3    considering the recommendations of the working group, the Texas

 86-4    Supreme Court shall adopt rules regarding the processing of child

 86-5    protection cases.

 86-6          SECTION 80.  If, before implementing any provision of this

 86-7    Act, a state agency determines that a waiver or authorization from

 86-8    a federal agency is necessary to implement a provision, the state

 86-9    agency shall request the waiver or authorization and may delay

86-10    implementing the provision until the waiver or authorization is

86-11    granted.

86-12          SECTION 81.  The importance of this legislation and the

86-13    crowded condition of the calendars in both houses create an

86-14    emergency and an imperative public necessity that the

86-15    constitutional rule requiring bills to be read on three several

86-16    days in each house be suspended, and this rule is hereby suspended.