1-1     By:  Brown                                             S.B. No. 359

 1-2           (In the Senate - Filed February 26, 1997; March 3, 1997, read

 1-3     first time and referred to Committee on Health and Human Services;

 1-4     April 2, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 11, Nays 0; April 2, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 359                   By:  Nelson

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the continuation and operation of the Department of

1-11     Protective and Regulatory Services, the provision of services to

1-12     children and families, and suits affecting the parent-child

1-13     relationship; providing penalties.

1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-15           SECTION 1.  Section 40.003, Human Resources Code, is amended

1-16     to read as follows:

1-17           Sec. 40.003.  SUNSET PROVISION.  The Department of Protective

1-18     and Regulatory Services is subject to Chapter 325, Government Code

1-19     (Texas Sunset Act).  Unless continued in existence as provided by

1-20     that chapter, the department is abolished and this chapter expires

1-21     September 1, 2009 [1997].

1-22           SECTION 2.  Subchapter A, Chapter 40, Human Resources Code,

1-23     is amended by amending Section 40.004 and adding Section 40.0041 to

1-24     read as follows:

1-25           Sec. 40.004.  PUBLIC INTEREST INFORMATION [AND COMPLAINTS].

1-26     (a)  The board [department] shall develop and implement policies

1-27     that provide the public with a reasonable opportunity to appear

1-28     before the board [department] and to speak on any issue under the

1-29     jurisdiction of the department.

1-30           (b)  The department shall prepare information of public

1-31     interest describing the functions of the department [and the

1-32     department's procedures by which complaints are filed with and

1-33     resolved by the department].  The department shall make the

1-34     information available to the public and appropriate state agencies.

1-35           [(c)  The department by rule shall establish methods by which

1-36     the public, consumers, and service recipients can be notified of

1-37     the mailing addresses and telephone numbers of appropriate

1-38     departmental personnel for the purpose of directing complaints to

1-39     the department.  The department may provide for that notification:]

1-40                 [(1)  on each registration form, application, or

1-41     written contract for services of a person regulated by the

1-42     department;]

1-43                 [(2)  on a sign prominently displayed in the place of

1-44     business of each person regulated by the department; or]

1-45                 [(3)  in a bill for a service provided by a person

1-46     regulated by the department.]

1-47           [(d)  The department shall keep an information file about

1-48     each complaint filed with the department relating to:]

1-49                 [(1)  a license holder or entity regulated by the

1-50     department; or]

1-51                 [(2)  a service delivered by the department.]

1-52           [(e)  If a written complaint is filed with the department

1-53     relating to a license holder or entity regulated by the department

1-54     or a service delivered by the department, the department, at least

1-55     quarterly and until final disposition of the complaint, shall

1-56     notify the parties to the complaint of the status of the complaint

1-57     unless notice would jeopardize an undercover investigation.]

1-58           Sec. 40.0041.  COMPLAINT PROCESS.  (a)  The department shall

1-59     develop and implement a uniform process for receiving and resolving

1-60     complaints against the department throughout the state.  The

1-61     process shall include:

1-62                 (1)  statewide procedures through which the public,

1-63     consumers, and service recipients are informed:

1-64                       (A)  of the right to make a complaint against the

 2-1     department, including the mailing addresses and telephone numbers

 2-2     of appropriate department personnel responsible for receiving

 2-3     complaints and providing related assistance; and

 2-4                       (B)  of the department's procedures for resolving

 2-5     a complaint, including the right to appeal a decision made at the

 2-6     local level;

 2-7                 (2)  development and statewide distribution of a form

 2-8     or telephone system that may be used to make a complaint;

 2-9                 (3)  a requirement that the department provide

2-10     information by mail or telephone regarding the department's

2-11     procedures for investigating and resolving a complaint to each

2-12     person who makes a complaint; and

2-13                 (4)  a requirement that the department provide status

2-14     information at least quarterly to a person with a pending complaint

2-15     against the department, unless the information would jeopardize an

2-16     undercover investigation.

2-17           (b)  In addition to other appropriate methods, the department

2-18     may provide the information specified by Subsection (a)(1):

2-19                 (1)  on each registration form, application, or written

2-20     contract for services of a person regulated by the department;

2-21                 (2)  on a sign prominently displayed in the place of

2-22     business of each person regulated by the department; or

2-23                 (3)  in a bill for service provided by a person

2-24     regulated by the department.

2-25           (c)  The department shall keep an information file about each

2-26     complaint made against the department that the department has

2-27     authority to resolve.

2-28           (d)  The executive director shall develop a consistent,

2-29     statewide process for addressing an appeal by a person dissatisfied

2-30     with the resolution of a complaint at the regional level.  The

2-31     process may not include the ruling on an appeal of a complaint by

2-32     the department's ombudsman office.

2-33           (e)  The department shall develop and maintain a centralized

2-34     tracking system to gather information concerning all complaints

2-35     made against the department throughout the state.  The department

2-36     shall require its personnel to provide information regarding each

2-37     complaint for inclusion in records maintained under the tracking

2-38     system at the department's state headquarters, regardless of the

2-39     location or level at which the complaint is initiated or resolved.

2-40     The department shall require at least the following information to

2-41     be maintained for each complaint:

2-42                 (1)  the date the complaint is received;

2-43                 (2)  the name of the person making the complaint;

2-44                 (3)  the subject matter of the complaint;

2-45                 (4)  a record of all persons contacted by the

2-46     department in relation to the complaint;

2-47                 (5)  a summary of the results of the review or

2-48     investigation of the complaint; and

2-49                 (6)  for each complaint determined by the department to

2-50     require no corrective action, an explanation of the reason that the

2-51     complaint was closed without action.

2-52           (f)  The department shall periodically prepare and deliver

2-53     reports to the board and the executive director regarding the

2-54     number, type, and resolution of complaints made in the state

2-55     against the department.

2-56           SECTION 3.  Subchapter A, Chapter 40, Human Resources Code,

2-57     is amended by adding Section 40.008 to read as follows:

2-58           Sec. 40.008.  PROGRAM ACCESSIBILITY.  The department shall

2-59     comply with federal and state laws related to program and facility

2-60     accessibility.  The department shall also prepare and maintain a

2-61     written plan that describes how a person who does not speak English

2-62     can be provided reasonable access to the department's programs and

2-63     services.

2-64           SECTION 4.  Subsection (a), Section 40.021, Human Resources

2-65     Code, is amended to read as follows:

2-66           (a)  The board is composed of six members appointed by the

2-67     governor with the advice and consent of the senate.  The governor

2-68     shall [annually] designate one member to be the presiding officer

2-69     of the board to serve in that capacity at the pleasure of the

 3-1     governor.

 3-2           SECTION 5.  Section 40.022, Human Resources Code, is amended

 3-3     to read as follows:

 3-4           Sec. 40.022.  Restrictions on Board Appointment or

 3-5     Membership.  (a)  A person is not eligible for appointment as a

 3-6     member of the board if the person or the person's spouse:

 3-7                 (1)  is a person who is employed by or participates in

 3-8     the management of a business entity or other organization regulated

 3-9     by the department or receiving funds [a substantial amount of

3-10     money] from the department;

3-11                 (2)  owns or controls, directly or indirectly, more

3-12     than a 10 percent interest in a business entity or other

3-13     organization that is regulated by the department or that receives

3-14     funds [money] from the department;

3-15                 (3)  uses or receives a substantial amount of tangible

3-16     goods, services, or money from the department, other than

3-17     compensation or reimbursement authorized by law for board

3-18     membership, attendance, or expenses [incurred as a board member],

3-19     or as a client or a parent or guardian of a client receiving

3-20     services from the department; or

3-21                 (4)  is an employee, officer, or paid consultant of a

3-22     trade association in a field under the jurisdiction of the

3-23     department.

3-24           (b)  In addition to the requirements of Subsection (a), a

3-25     person is not eligible for appointment as a public member of the

3-26     board if the person or the person's spouse is registered,

3-27     certified, or licensed by an occupational regulatory agency in a

3-28     field under the jurisdiction of the department.  [A person who is

3-29     required to register as a lobbyist under Chapter 305, Government

3-30     Code, because of the person's activities for compensation in or for

3-31     a profession related to the operation of the department may not

3-32     serve as a member of the board.]

3-33           SECTION 6.  Subchapter B, Chapter 40, Human Resources Code,

3-34     is amended by adding Section 40.0225 to read as follows:

3-35           Sec. 40.0225.  RESTRICTIONS ON BOARD MEMBERS AND EMPLOYEES.

3-36     (a)  An officer, employee, or paid consultant of a Texas trade

3-37     association in a field under the jurisdiction of the department may

3-38     not be a member of the board or an employee of the department who

3-39     is exempt from the state's position classification plan or is

3-40     compensated at or above the amount prescribed by the General

3-41     Appropriations Act for step 1, salary group 17, of the position

3-42     classification salary schedule.

3-43           (b)  A person who is the spouse of an officer, manager, or

3-44     paid consultant of a Texas trade association in a field under the

3-45     jurisdiction of the department may not be a member of the board and

3-46     may not be an employee of the department who is exempt from the

3-47     state's position classification plan or is compensated at or above

3-48     the amount prescribed by the General Appropriations Act for step 1,

3-49     salary group 17, of the position classification salary schedule.

3-50           (c)  A person may not serve as a member of the board or act

3-51     as the general counsel to the board or the department if the person

3-52     is required to register as a lobbyist under Chapter 305, Government

3-53     Code, because of the person's activities for compensation on behalf

3-54     of a profession related to the operation of the department.

3-55           (d)  For the purposes of this section, a Texas trade

3-56     association is a nonprofit, cooperative, and voluntarily joined

3-57     association of business or professional competitors in this state

3-58     designed to assist its members and its industry or profession in

3-59     dealing with mutual business or professional problems and in

3-60     promoting their common interest.

3-61           SECTION 7.  Subchapter B, Chapter 40, Human Resources Code,

3-62     is amended by adding Section 40.0226 to read as follows:

3-63           Sec. 40.0226.  BOARD MEMBER TRAINING.  (a)  Before a member

3-64     of the board may assume the member's duties and before the member

3-65     may be confirmed by the senate, the member must complete at least

3-66     one course of the training program established under this section.

3-67           (b)  A training program established under this section shall

3-68     provide information to the member regarding:

3-69                 (1)  the enabling legislation that created the

 4-1     department and the board;

 4-2                 (2)  the programs operated by the department;

 4-3                 (3)  the role and functions of the department;

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

 4-5     the rules that relate to disciplinary and investigatory authority;

 4-6                 (5)  the current budget for the department;

 4-7                 (6)  the results of the most recent formal audit of the

 4-8     department;

 4-9                 (7)  the requirements of the:

4-10                       (A)  open meetings law, Chapter 551, Government

4-11     Code;

4-12                       (B)  open records law, Chapter 552, Government

4-13     Code; and

4-14                       (C)  administrative procedure law, Chapter 2001,

4-15     Government Code;

4-16                 (8)  the requirements of the conflict-of-interest laws

4-17     and other laws relating to public officials; and

4-18                 (9)  any applicable ethics policies adopted by the

4-19     board or the Texas Ethics Commission.

4-20           SECTION 8.  Subsection (b), Section 40.028, Human Resources

4-21     Code, is amended to read as follows:

4-22           (b)  The board shall:

4-23                 (1)  supervise the executive director's administration

4-24     and enforcement of the laws of this state that impose duties on the

4-25     department or board; and

4-26                 (2)  develop and implement policies that clearly

4-27     separate the policymaking [respective] responsibilities of the

4-28     board and the management responsibilities of the executive director

4-29     and the staff of the department.

4-30           SECTION 9.  Subchapter B, Chapter 40, Human Resources Code,

4-31     is amended by adding Section 40.0305 to read as follows:

4-32           Sec. 40.0305.  STRATEGIC TECHNOLOGY STEERING COMMITTEE.

4-33     (a)  The department shall establish a strategic technology steering

4-34     committee within the department to evaluate major information

4-35     technology project proposals.

4-36           (b)  The steering committee shall consist of the department's

4-37     information resources manager and other department employees

4-38     designated by the executive director from senior management,

4-39     information technology staff, and employees who are primary users

4-40     of information resources.  The information resources manager shall

4-41     serve as presiding officer of the committee.

4-42           (c)  The steering committee shall prioritize the department's

4-43     major information technology project proposals and provide

4-44     oversight and coordination of the projects.

4-45           (d)  In evaluating major information technology project

4-46     proposals, the steering committee shall:

4-47                 (1)  assess the major information needs of the

4-48     department;

4-49                 (2)  define standard criteria for setting priorities

4-50     for the department's information needs;

4-51                 (3)  forecast the returns to the department on project

4-52     investments;

4-53                 (4)  evaluate the department's available information

4-54     resources; and

4-55                 (5)  review, approve, and evaluate the status of

4-56     projected costs and benefits related to project proposals.

4-57           (e)  The steering committee shall make recommendations to the

4-58     executive director based on the committee's performance of its

4-59     duties.

4-60           SECTION 10.  Section 40.032, Human Resources Code, is amended

4-61     to read as follows:

4-62           Sec. 40.032.  PERSONNEL.  (a)  The executive director may

4-63     employ personnel necessary to administer the department's duties.

4-64           (b)  The executive director or the executive director's

4-65     designated representative shall develop an intradepartmental career

4-66     ladder program that addresses opportunities for mobility and

4-67     advancement for employees within the department.  The program[, one

4-68     part of which] shall require the intradepartmental posting of all

4-69     [non-entry-level] positions concurrently with any public posting.

 5-1           (c)  The executive director or the executive director's

 5-2     designated representative shall develop a system of annual

 5-3     performance evaluations based on measurable job tasks.  All merit

 5-4     pay for department employees must be based on the system

 5-5     established under this subsection.

 5-6           (d)  The executive director or the executive director's

 5-7     designated representative shall provide to members of the board and

 5-8     to the department's employees, as often as is necessary,

 5-9     information regarding their qualifications for office or employment

5-10     under this chapter and their responsibilities under applicable laws

5-11     relating to standards of conduct for state officers or employees.

5-12           (e)  The executive director or the executive director's

5-13     designated representative shall prepare and maintain a written

5-14     policy statement to ensure implementation of a program of equal

5-15     employment opportunity under which all personnel transactions are

5-16     made without regard to race, color, disability, sex, religion, age,

5-17     or national origin.  The policy statement must include:

5-18                 (1)  personnel policies, including policies relating to

5-19     recruitment, evaluation, selection, appointment, training, and

5-20     promotion of personnel, that comply with Chapter 21, Labor Code;

5-21                 (2)  a comprehensive analysis of the department's

5-22     workforce that meets federal and state guidelines;

5-23                 (3)  procedures by which a determination can be made

5-24     about the extent of [significant] underuse in the department's

5-25     workforce of all persons for whom federal or state guidelines

5-26     encourage a more equitable balance; and

5-27                 (4)  reasonable methods to appropriately address those

5-28     areas of [significant] underuse [in the department's workforce of

5-29     all persons for whom federal or state guidelines encourage a more

5-30     equitable balance].

5-31           (f)  The policy statement required under Subsection (e)

5-32     shall:

5-33                 (1)  be filed with the governor's office;

5-34                 (2)  [,] cover an annual period;

5-35                 (3)  [, and] be updated at least annually; and

5-36                 (4)  be reviewed by the Commission on Human Rights for

5-37     compliance with Subsection (e)(1).

5-38           (g)  The governor's office shall develop and deliver a

5-39     biennial report to the legislature based on the information

5-40     submitted under Subsection (f).  The report may be made separately

5-41     or as a part of other biennial reports made to the legislature.

5-42           SECTION 11.  Subchapter C, Chapter 40, Human Resources Code,

5-43     is amended by adding Section 40.0525 to read as follows:

5-44           Sec. 40.0525.  SEPARATION OF INVESTIGATORY AND SERVICE

5-45     DELIVERY FUNCTIONS.  (a)  To the extent feasible, the department

5-46     shall separate the performance of investigations by department

5-47     employees from the delivery of services to clients and their

5-48     families.  The department may take into consideration the needs and

5-49     caseloads in the different programs and regions of the state in

5-50     developing policies for the separation of the department's

5-51     investigatory and service delivery functions.

5-52           (b)  The department shall develop policies and procedures for

5-53     the exchange of information between employees who are responsible

5-54     for performing investigations and employees who are responsible for

5-55     the delivery of services to clients and families.

5-56           (c)  This section does not require the department to

5-57     establish separate departments for investigations and service

5-58     delivery.

5-59           SECTION 12.  Subchapter C, Chapter 40, Human Resources Code,

5-60     is amended by adding Sections 40.0563, 40.0564, and 40.0565 to read

5-61     as follows:

5-62           Sec. 40.0563.  COUNTY OUTREACH PROGRAM.  (a)  The department

5-63     shall develop and implement a standard statewide outreach program

5-64     under which the department:

5-65                 (1)  informs each county of the availability of federal

5-66     funds to pay costs of providing child protective services within

5-67     the county; and

5-68                 (2)  provides technical assistance on request to a

5-69     county seeking federal funds.

 6-1           (b)  In implementing the program, the department shall:

 6-2                 (1)  designate local department personnel responsible

 6-3     for performing the functions specified in Subsection (a);

 6-4                 (2)  designate a statewide coordinator responsible for

 6-5     coordinating the activities of local department personnel and

 6-6     developing methods of providing information to counties; and

 6-7                 (3)  develop a database that:

 6-8                       (A)  identifies department and county personnel

 6-9     involved with the outreach program; and

6-10                       (B)  contains information regarding the date and

6-11     type of assistance provided by the department to each county.

6-12           (c)  The department, in consultation with the Legislative

6-13     Budget Board, shall ensure that a record is maintained of the

6-14     amount of funding for child protective services that each county

6-15     receives directly from the federal government.

6-16           Sec. 40.0564.  DEPARTMENT FUNDS.  All money paid to the

6-17     department under this chapter is subject to Subchapter F, Chapter

6-18     404, Government Code.

6-19           Sec. 40.0565.  REPORT.  The department shall file with the

6-20     governor and the presiding officer of each house of the legislature

6-21     a complete and detailed written report accounting for all funds

6-22     received and disbursed by the department during the preceding

6-23     fiscal year.  The annual report must meet the reporting

6-24     requirements, including reporting deadlines, applicable to

6-25     financial reporting in the General Appropriations Act.

6-26           SECTION 13.  Section 40.058, Human Resources Code, is amended

6-27     to read as follows:

6-28           Sec. 40.058.  Contracts and Agreements.  (a)  The department

6-29     may enter into contracts or agreements with any person, including a

6-30     federal, state, or other public or private agency, as necessary to

6-31     perform any of the department's powers or duties.

6-32           (b)  A contract for the purchase of program-related client

6-33     services must include:

6-34                 (1)  clearly defined goals and outcomes that can be

6-35     measured to determine whether the objectives of the program are

6-36     being achieved;

6-37                 (2)  clearly defined sanctions or penalties for

6-38     noncompliance with contract terms; and

6-39                 (3)  clearly specified accounting, reporting, and

6-40     auditing requirements applicable to money received under the

6-41     contract.

6-42           (c)  The department shall monitor a contractor's performance

6-43     under a contract for the purchase of program-related client

6-44     services.  In monitoring performance, the department shall:

6-45                 (1)  use a risk-assessment methodology to ensure

6-46     compliance with financial and performance requirements under the

6-47     contract; and

6-48                 (2)  obtain and evaluate program cost information to

6-49     ensure that all costs, including administrative costs, are

6-50     reasonable and necessary to achieve program objectives.

6-51           (d)  An agreement made under this section is not subject to

6-52     Chapter 771, Government Code.

6-53           SECTION 14.  Section 40.061, Human Resources Code, is amended

6-54     by adding Subsection (c) to read as follows:

6-55           (c)  This section does not provide immunity to a department

6-56     employee who, in a suit affecting the parent-child relationship in

6-57     which child abuse is alleged or that arises out of a child abuse

6-58     investigation or in a criminal prosecution for an offense in which

6-59     child abuse is an element, commits or attempts to commit perjury,

6-60     fabricates or attempts to fabricate evidence, or knowingly conceals

6-61     information that would establish that a person alleged to have

6-62     committed an act of child abuse did not commit child abuse.

6-63           SECTION 15.  Subchapter C, Chapter 40, Human Resources Code,

6-64     is amended by adding Sections 40.066 and 40.067 to read as follows:

6-65           Sec. 40.066.  COOPERATION WITH STATE OFFICE OF ADMINISTRATIVE

6-66     HEARINGS.  (a)  Except as provided by Subsection (e), the

6-67     department and the chief administrative law judge of the State

6-68     Office of Administrative Hearings shall adopt a memorandum of

6-69     understanding under which the State Office of Administrative

 7-1     Hearings, on behalf of the department, conducts all contested case

 7-2     hearings authorized or required by law to be conducted by the

 7-3     department under the administrative procedure law, Chapter 2001,

 7-4     Government Code.

 7-5           (b)  The memorandum of understanding shall require the chief

 7-6     administrative law judge, the department, and the executive

 7-7     director to cooperate in connection with a  contested case hearing

 7-8     and may authorize the State Office of Administrative Hearings to

 7-9     perform any administrative act, including giving of notice, that is

7-10     required to be performed by the department or executive director.

7-11           (c)  The administrative law judge who conducts a contested

7-12     case hearing for the State Office of Administrative Hearings on

7-13     behalf of the department shall enter the final decision in the case

7-14     after completion of the hearing.

7-15           (d)  The department by interagency contract shall reimburse

7-16     the State Office of Administrative Hearings for the costs incurred

7-17     in conducting contested case hearings for the department.  The

7-18     department may pay an hourly fee for the costs of conducting those

7-19     hearings or a fixed annual fee negotiated biennially by the

7-20     department and the State Office of Administrative Hearings to

7-21     coincide with the department's legislative appropriations request.

7-22           (e)  This section does not apply to a personnel grievance

7-23     hearing involving a department employee.

7-24           Sec. 40.067.  DELIVERY OF SERVICES IN AREAS BORDERING UNITED

7-25     MEXICAN STATES.  The department shall:

7-26                 (1)  study issues related to providing child and adult

7-27     protective services in areas bordering the United Mexican States;

7-28                 (2)  develop a plan for providing those services in the

7-29     most efficient manner; and

7-30                 (3)  pursue and enter into agreements for coordinated

7-31     services, to the extent permissible under federal law, with the

7-32     United Mexican States or any of its political subdivisions.

7-33           SECTION 16.  Section 42.002, Human Resources Code, is amended

7-34     by amending Subdivisions (3) and (9) and adding Subdivisions (16)

7-35     and (17) to read as follows:

7-36                 (3)  "Child-care facility" means a facility licensed,

7-37     certified, or registered by the department to provide assessment,

7-38     [that provides] care, training, education, custody, treatment, or

7-39     supervision for a child who is not related by blood, marriage, or

7-40     adoption to the owner or operator of the facility, for all or part

7-41     of the 24-hour day, whether or not the facility is operated for

7-42     profit or charges for the services it offers.

7-43                 (9)  "Family home" means a home that [regularly]

7-44     provides regular care in the caretaker's own residence for not more

7-45     than six children under 14 years of age, excluding [the caretaker's

7-46     own] children who are related to the caretaker, and that provides

7-47     care after school hours for not more than six additional elementary

7-48     school children, but the total number of children, including

7-49     children who are related to the caretaker [the caretaker's own],

7-50     does not exceed 12 at any given time.  The term does not include a

7-51     home that provides care exclusively for any number of children who

7-52     are related to the caretaker.

7-53                 (16)  "Children who are related to the caretaker" means

7-54     children who are the children, grandchildren, siblings,

7-55     great-grandchildren, nieces, or nephews of the caretaker, whether

7-56     by affinity or consanguinity or as the result of a relationship

7-57     created by court decree.

7-58                 (17)  "Regular care" means care that is provided at

7-59     least four hours a day, three or more days a week, for more than

7-60     nine consecutive weeks.

7-61           SECTION 17.  Subsections (e) and (l), Section 42.042, Human

7-62     Resources Code, are amended to read as follows:

7-63           (e)  The department shall promulgate minimum standards that

7-64     apply to licensed child-care facilities and to registered family

7-65     homes covered by this chapter and that will:

7-66                 (1)  promote the health, safety, and welfare of

7-67     children attending a facility or registered family home;

7-68                 (2)  promote safe, comfortable, and healthy physical

7-69     facilities and registered family homes for children;

 8-1                 (3)  ensure adequate supervision of children by

 8-2     capable, qualified, and healthy personnel;

 8-3                 (4)  ensure adequate and healthy food service where

 8-4     food service is offered;

 8-5                 (5)  prohibit racial discrimination by child-care

 8-6     facilities and registered family homes; and

 8-7                 (6)  require procedures for parental and guardian

 8-8     consultation in the formulation of children's educational and

 8-9     therapeutic programs.

8-10           (l)  In promulgating [The department shall adopt] minimum

8-11     standards for the regulation of [regulating] family homes that

8-12     register with the division, the department[.  The rules] must

8-13     address the minimum qualifications, education, and training

8-14     required of a person who operates a family home registered with the

8-15     division.

8-16           SECTION 18.  Subchapter C, Chapter 42, Human Resources Code,

8-17     is amended by adding Section 42.0425 to read as follows:

8-18           Sec. 42.0425.  ASSESSMENT SERVICES.  (a)  The department by

8-19     rule shall regulate assessment services provided by child-care

8-20     facilities or child-placing agencies.  A child-care facility or

8-21     child-placing agency may not provide assessment services unless

8-22     specifically authorized by the department.

8-23           (b)  The department by rule shall establish minimum standards

8-24     for assessment services.  The standards must provide that

8-25     consideration is given to the individual needs of a child, the

8-26     appropriate place for provision of services, and the factors listed

8-27     in Section 42.042(e).

8-28           (c)  In this section, "assessment services" means the

8-29     determination of the placement needs of a child who requires

8-30     substitute care.

8-31           SECTION 19.  Subchapter C, Chapter 42, Human Resources Code,

8-32     is amended by adding Section 42.0505 to read as follows:

8-33           Sec. 42.0505.  RENEWAL OF LICENSE.  (a)  A person who is

8-34     otherwise eligible to renew a license may renew an unexpired

8-35     license by paying the required annual fee to the department before

8-36     the expiration date of the license.  A person whose license has

8-37     expired may not engage in activities that require a license until

8-38     the license has been renewed under the provisions of this section.

8-39           (b)  If the person's license has been expired for 90 days or

8-40     less, the person may renew the license by paying to the department

8-41     1-1/2 times the required annual fee.

8-42           (c)  If the person's license has been expired for longer than

8-43     90 days but less than one year, the person may renew the license by

8-44     paying to the department two times the required annual fee.

8-45           (d)  If the person's license has been expired for one year or

8-46     longer, the person may not renew the license.  The person may

8-47     obtain a new license by complying with the requirements and

8-48     procedures for obtaining an original license.

8-49           (e)  If the person was licensed in this state, moved to

8-50     another state, and is currently licensed and has been in practice

8-51     in the other state for the two years preceding application, the

8-52     person may renew an expired license without reexamination.  The

8-53     person must pay to the department a fee that is equal to two times

8-54     the required annual fee for the license.

8-55           (f)  At least 30 days before the expiration of a person's

8-56     license, the department shall send written notice of the impending

8-57     license expiration to the person at the license holder's last known

8-58     address according to the records of the department.

8-59           SECTION 20.  Subsection (b), Section 42.044, Human Resources

8-60     Code, is amended to read as follows:

8-61           (b)  The department [division] shall inspect all licensed or

8-62     certified facilities at least once a year and may inspect other

8-63     facilities or registered family homes as necessary.  At least one

8-64     of the annual visits must be unannounced and all may be

8-65     unannounced.

8-66           SECTION 21.  Subchapter C, Chapter 42, Human Resources Code,

8-67     is amended by adding Sections 42.0441 and 42.0442 to read as

8-68     follows:

8-69           Sec. 42.0441.  COORDINATION OF INSPECTIONS; ELIMINATION OF

 9-1     DUPLICATIVE INSPECTIONS.  (a)  The department shall coordinate

 9-2     child-care facility inspections performed by an agency or

 9-3     subdivision of the state to eliminate redundant inspections.

 9-4           (b)  An inspection of a child-care facility conducted by an

 9-5     agency or subdivision of the state may not duplicate an inspection

 9-6     conducted by another agency or subdivision.  The department shall

 9-7     assign items that may be inspected by more than one agency or

 9-8     subdivision of the state to only one agency or subdivision.

 9-9           (c)  The department, with the assistance of the comptroller,

9-10     by rule shall adopt each inspection form used in inspecting a

9-11     child-care facility by an agency or subdivision of the state.  The

9-12     forms must be designed to eliminate redundant inspections.

9-13           Sec. 42.0442.  INSPECTION INFORMATION DATABASE.  (a)  The

9-14     department shall establish a computerized database containing the

9-15     information from each inspection of a child-care facility.

9-16           (b)  After an agency or subdivision of the state inspects a

9-17     child-care facility, the agency or subdivision shall submit the

9-18     completed inspection form to the department.  The department shall

9-19     add the information from the inspection to the computerized

9-20     database.

9-21           SECTION 22.  Section 42.046, Human Resources Code, is amended

9-22     by amending Subsection (a) and the section heading to read as

9-23     follows:

9-24           Sec. 42.046.  [LICENSE] APPLICATION FOR LICENSE OR

9-25     REGISTRATION.  (a)  An applicant for a license to operate a

9-26     child-care facility or child-placing agency or for a registration

9-27     to operate a family home shall submit to the department [division]

9-28     the appropriate fee prescribed by Section 42.054 of this code and a

9-29     completed application on a form provided by the department

9-30     [division].

9-31           SECTION 23.  Subchapter C, Chapter 42, Human Resources Code,

9-32     is amended by adding Section 42.0461 to read as follows:

9-33           Sec. 42.0461.  LICENSES RELATING TO SUBSTITUTE CARE.

9-34     (a)  Before issuing a license to an entity that provides substitute

9-35     care services, including a child-care institution, child-placing

9-36     agency, foster group home, foster family home, agency group home,

9-37     and agency home or expanding the entity's capacity under a license,

9-38     the department shall:

9-39                 (1)  require the applicant or license holder to publish

9-40     notice in compliance with Subsection (b);

9-41                 (2)  conduct a public hearing on whether the proposed

9-42     action should be taken; and

9-43                 (3)  determine:

9-44                       (A)  the degree of community support for the

9-45     proposed action;

9-46                       (B)  the amount of local resources available to

9-47     support children proposed to be served by the entity;

9-48                       (C)  the impact of the proposed action on the

9-49     ratio in the local school district of students enrolled in a

9-50     special education program to students enrolled in a regular

9-51     education program; and

9-52                       (D)  the impact of the proposed action on the

9-53     local community.

9-54           (b)  An applicant for a license to provide substitute care

9-55     services or a license holder seeking expansion of capacity under

9-56     the license shall publish notice of the proposed action in a

9-57     newspaper of general circulation in the community in which the

9-58     substitute care services are proposed to be provided.  The notice

9-59     must be published at least one week before the date of the public

9-60     hearing required by Subsection (a) and must include:

9-61                 (1)  the name and address of the applicant or license

9-62     holder;

9-63                 (2)  the address at which the substitute care services

9-64     are proposed to be provided;

9-65                 (3)  the date and location of the public hearing; and

9-66                 (4)  the name, address, and telephone number of the

9-67     department as the state agency with authority to approve or deny

9-68     the proposed action.

9-69           (c)  The department may deny a license to an entity seeking

 10-1    to provide substitute care services or deny a request to expand

 10-2    such an entity's capacity under a license if the department

 10-3    determines that:

 10-4                (1)  the community in which the substitute care

 10-5    services are proposed to be provided does not predominately support

 10-6    the issuance of the license or expansion of capacity;

 10-7                (2)  sufficient local resources are not available in

 10-8    that community to support children proposed to be served by the

 10-9    entity;

10-10                (3)  the issuance of the license or expansion of

10-11    capacity would significantly increase the ratio in the local school

10-12    district serving that community of students enrolled in a special

10-13    education program to students enrolled in a  regular education

10-14    program; or

10-15                (4)  the issuance of the license or expansion of

10-16    capacity would have a significant adverse impact on that community.

10-17          (d)  This section does not require the department to conduct

10-18    a public hearing or make the determinations required by Subsection

10-19    (a)(3) in connection with the verification or certification of an

10-20    agency group home, agency home, or any foster home verified or

10-21    certified by the department.

10-22          SECTION 24.  Section 42.052, Human Resources Code, is amended

10-23    by amending Subsection (c) and adding Subsection (h) to read as

10-24    follows:

10-25          (c)  A family home that provides care for three or fewer

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

10-27    to the caretaker, may register with the department [division].  A

10-28    family home that provides care for four or more children, excluding

10-29    [the caretaker's own] children who are related to the caretaker,

10-30    shall [must] register with the department [division].  A

10-31    registration remains valid until revoked or surrendered.  The

10-32    operator  of a registered home must display the registration in a

10-33    prominent place at the home.

10-34          (h)  The department by rule may provide for denial of an

10-35    application for registering a family home or may revoke a family

10-36    home's registration based on the results of a background or

10-37    criminal history check.

10-38          SECTION 25.  Subchapter C, Chapter 42, Human Resources Code,

10-39    is amended by adding Sections 42.057 and 42.058 to read as follows:

10-40          Sec. 42.057.  REQUIRED BACKGROUND AND CRIMINAL HISTORY

10-41    CHECKS.  (a)  In accordance with rules adopted by the department,

10-42    the operator of a family home shall, when the operator applies for

10-43    registration and at least once during each 24 months after

10-44    registration, submit to the department for use in conducting

10-45    background and criminal history checks:

10-46                (1)  the name of the owner and each person employed at

10-47    the family home; and

10-48                (2)  the name of each resident of the home and any

10-49    other person who will regularly or frequently be staying or working

10-50    at the home while children are being provided care.

10-51          (b)  The department shall conduct background and criminal

10-52    history checks using:

10-53                (1)  the information provided under Subsection (a);

10-54                (2)  the information made available by the Department

10-55    of Public Safety under Section 411.114, Government Code; and

10-56                (3)  the department's records of reported abuse and

10-57    neglect.

10-58          (c)  The department by rule shall require a family home to

10-59    pay to the department a fee in an amount not to exceed the

10-60    administrative costs the department incurs in conducting a

10-61    background and criminal history check under this section.

10-62          Sec. 42.058.  COMPETITIVE BIDDING OR ADVERTISING RULES.

10-63    (a)  The board may not adopt rules restricting competitive bidding

10-64    or advertising by a license holder or registration holder except to

10-65    prohibit false, misleading, or deceptive practices or to prevent a

10-66    violation of this chapter.

10-67          (b)  In its rules to prohibit false, misleading, or deceptive

10-68    practices, the board may not include a rule that:

10-69                (1)  restricts the use of any medium for advertising;

 11-1                (2)  restricts the use of a license holder's or

 11-2    registration holder's personal appearance or voice in an

 11-3    advertisement;

 11-4                (3)  relates to the size or duration of an

 11-5    advertisement by the license holder or registration holder; or

 11-6                (4)  restricts the license holder's or registration

 11-7    holder's advertisement under a trade name.

 11-8          SECTION 26.  Subchapter D, Chapter 42, Human Resources Code,

 11-9    is amended by adding Section 42.0705 to read as follows:

11-10          Sec. 42.0705.  RANGE OF PENALTIES.  The department shall

11-11    revoke, suspend, or refuse to renew a license or certificate of

11-12    registration, place on probation a person whose license or

11-13    certificate of registration has been suspended, or reprimand a

11-14    license holder or registration holder for a violation of this

11-15    chapter or a rule of the board.  If a license or certificate of

11-16    registration suspension is probated, the department may require the

11-17    license holder or registration holder to:

11-18                (1)  report regularly to the department on matters that

11-19    are the basis of the probation;

11-20                (2)  limit practice to the areas prescribed by the

11-21    department;

11-22                (3)  continue or review professional education until

11-23    the license holder or registration holder attains a degree of skill

11-24    satisfactory to the department in those areas that are the basis of

11-25    the probation; or

11-26                (4)  take corrective action relating to the violation

11-27    on which the probation is based.

11-28          SECTION 27.  Section 42.071, Human Resources Code, is amended

11-29    to read as follows:

11-30          Sec. 42.071.  [LICENSE] SUSPENSION, EVALUATION, OR PROBATION

11-31    OF LICENSE OR REGISTRATION.  (a)  The department [division] may

11-32    suspend the license of a facility or the registration of a family

11-33    home that has temporarily ceased operation but has definite plans

11-34    for starting operations again within the time limits of the issued

11-35    license or registration.

11-36          (b)  The department [division] may suspend a facility's

11-37    license or a family home's registration for a definite period

11-38    rather than deny or revoke the license or registration if the

11-39    department [division] finds repeated noncompliance with standards

11-40    that do not endanger the health and safety of children.  To qualify

11-41    for license or registration suspension under this subsection, a

11-42    facility or family home must suspend its operations and show that

11-43    standards can be met within the suspension period.

11-44          (c)  If the department [division] finds a facility or family

11-45    home is in repeated noncompliance with standards that do not

11-46    endanger the health and safety of children, the department

11-47    [division] may schedule the facility or family home for evaluation

11-48    or probation rather than suspend or revoke the facility's license

11-49    or the family home's registration.  The department [division] shall

11-50    provide notice to the facility or family home of the evaluation or

11-51    probation and of the items of noncompliance not later than the 10th

11-52    day before the evaluation or probation period begins.  The

11-53    department [division] shall designate a period of not less than 30

11-54    days during which the facility or family home will remain under

11-55    evaluation.  During the evaluation or probation period, the

11-56    facility or family home must correct the items that were in

11-57    noncompliance and report the corrections to the department

11-58    [division] for approval.

11-59          (d)  The department [division] shall revoke the license of a

11-60    facility or the registration of a family home that does not comply

11-61    with standards at the end of a license or registration suspension.

11-62          (e)  The department [division] may suspend or revoke the

11-63    license of a facility or the registration of a family home that

11-64    does not correct items that were in noncompliance or that does not

11-65    comply with required standards within the applicable evaluation or

11-66    probation period.

11-67          SECTION 28.  Subchapter D, Chapter 42, Human Resources Code,

11-68    is amended by adding Section 42.0715 to read as follows:

11-69          Sec. 42.0715.  COSTS CHARGED TO FACILITY.  The department

 12-1    shall charge a facility for reimbursement of the reasonable cost of

 12-2    services provided by the department in formulating, monitoring, and

 12-3    implementing a corrective action plan for the facility.

 12-4          SECTION 29.  Section 42.072, Human Resources Code, is amended

 12-5    to read as follows:

 12-6          Sec. 42.072.  LICENSE OR REGISTRATION DENIAL, SUSPENSION, OR

 12-7    REVOCATION.  (a)  The department [division] may suspend, deny, [or]

 12-8    revoke, or refuse to renew the license, registration, or

 12-9    certification of approval of a facility or family home that does

12-10    not comply with the requirements of this chapter, the standards and

12-11    rules of the department, or the specific terms of the license,

12-12    registration, or certification.  The department may revoke the

12-13    probation of a person whose license or registration is suspended if

12-14    the person violates a term of the conditions of probation.

12-15          (b)  If the department proposes to take an action under

12-16    Subsection (a), the person is entitled to a hearing conducted by

12-17    the State Office of Administrative Hearings.  Proceedings for a

12-18    disciplinary action are governed by the administrative procedure

12-19    law, Chapter 2001, Government Code.  Rules of practice adopted by

12-20    the board under Section 2001.004, Government Code, applicable to

12-21    the proceedings for a disciplinary action may not conflict with

12-22    rules adopted by the State Office of Administrative Hearings.

12-23          (c)  [The division shall notify the person operating or

12-24    proposing to operate a facility of the reasons for the denial or

12-25    revocation and of the person's right to appeal the decision within

12-26    30 days after receiving the notice.]

12-27          [(c)  A person who wishes to appeal a license denial or

12-28    revocation shall notify the director by certified mail within 30

12-29    days after receiving the notice required in Subsection (b) of this

12-30    section.  The person shall send a copy of the notice of appeal to

12-31    the assigned division representative.]

12-32          [(d)  The denial or revocation of a license or certification

12-33    and the appeal from that action are governed by the procedure for a

12-34    contested case hearing under Chapter 2001, Government Code.]

12-35          [(e)  A person whose license has been denied or revoked may

12-36    challenge the decision by filing a suit in a district court of

12-37    Travis County or the county in which the person's facility is

12-38    located within 30 days after receiving the decision.  The trial

12-39    shall be de novo.]

12-40          [(f)  Records of the hearing shall be kept for two years

12-41    after a decision is rendered.  On request, and at the person's own

12-42    expense, the division shall supply a copy of the verbatim

12-43    transcript of the hearing to a person appealing a license denial or

12-44    revocation in district court.]

12-45          [(g)  A person may continue to operate a facility during an

12-46    appeal of a license denial or revocation unless the division has

12-47    obtained injunctive relief under Section 42.074 or civil penalties

12-48    under Section 42.075 or the facility has been closed under Section

12-49    42.073.]

12-50          [(h)]  A person whose license, registration, or certification

12-51    is revoked may not apply for any license, registration, or

12-52    certification under this chapter before the second anniversary of

12-53    the date on which the revocation takes effect by department or

12-54    court order.

12-55          SECTION 30.  Section 42.073, Human Resources Code, is amended

12-56    to read as follows:

12-57           Sec. 42.073.  EMERGENCY SUSPENSION AND CLOSURE OF A FACILITY

12-58    OR FAMILY HOME.  (a)  The department [division] shall suspend a

12-59    facility's license or a family home's registration and[,] order the

12-60    immediate closing of the facility or family home[, and place the

12-61    children attending or residing in the facility elsewhere] if:

12-62                (1)  the department [division] finds the facility or

12-63    family home is operating in violation of the applicable standards

12-64    prescribed by this chapter; and

12-65                (2)  the violation creates an immediate threat to the

12-66    health and safety of the children attending or residing in the

12-67    facility or family home.

12-68          (b)  An order suspending a license or registration and an

12-69    order closing a facility or family home under this section is

 13-1    immediately effective on the date on which the [license] holder of

 13-2    the license or registration receives written notice or on a later

 13-3    date specified in the order.

 13-4          (c)  An order is valid for 10 days after the effective date

 13-5    of the order.

 13-6          (d)  The suspension of a license or registration and the

 13-7    closure of a [the] facility or family home and the appeal from that

 13-8    action are governed by the procedures for a contested case hearing

 13-9    under Chapter 2001, Government Code.

13-10          SECTION 31.  Subsections (a) and (c), Section 42.074, Human

13-11    Resources Code, are amended to read as follows:

13-12          (a)  When it appears that a person has violated, is

13-13    violating, or is threatening to violate the licensing,

13-14    certification, or registration requirements of this chapter or the

13-15    department's licensing, certification, or registration rules and

13-16    standards, the department [division] may file a suit in a district

13-17    court in Travis County or in the county where the facility or

13-18    family home is located for assessment and recovery of civil

13-19    penalties under Section 42.075 [of this code], for injunctive

13-20    relief, including a temporary restraining order, or for both

13-21    injunctive relief and civil penalties.

13-22          (c)  At the department's [division's] request, the attorney

13-23    general or the county or district attorney of the county in which

13-24    the facility or family home is located shall conduct a suit in the

13-25    name of the State of Texas for injunctive relief, to recover the

13-26    civil penalty, or for both injunctive relief and civil penalties as

13-27    authorized by Subsection (a) [of this section].

13-28          SECTION 32.  Subsection (a), Section 42.075, Human Resources

13-29    Code, is amended to read as follows:

13-30          (a)  A person is subject to a civil penalty of not less than

13-31    $50 nor more than $100 for each day of violation and for each act

13-32    of violation if the person:

13-33                (1)  threatens serious harm to a child in a facility or

13-34    family home by violating a provision of this chapter or a

13-35    department rule or standard;

13-36                (2)  violates a provision of this chapter or a

13-37    department rule or standard three or more times within a 12-month

13-38    period; or

13-39                (3)  places a public advertisement for an unlicensed

13-40    facility or unregistered family home.

13-41          SECTION 33.  Section 42.076, Human Resources Code, is amended

13-42    to read as follows:

13-43          Sec. 42.076.  CRIMINAL PENALTIES.  (a)  A person who operates

13-44    a child-care facility or child-placing agency without a license

13-45    commits a Class B misdemeanor.

13-46          (b)  A person who operates a family home without a

13-47    registration commits a Class B misdemeanor.

13-48          (c)  A person who places a public advertisement for an

13-49    unlicensed facility or an unregistered family home commits a Class

13-50    C misdemeanor.

13-51          [(c)  A person who places an advertisement for a registered

13-52    family home in violation of Section 42.052(f) of this code commits

13-53    a Class C misdemeanor.]

13-54          (d)  It is not an offense under this section if a

13-55    professional provides legal or medical services to:

13-56                (1)  a parent who identifies the prospective adoptive

13-57    parent and places the child for adoption without the assistance of

13-58    the professional; or

13-59                (2)  a prospective adoptive parent who identifies a

13-60    parent and receives placement of a child for adoption without

13-61    assistance of the professional.

13-62          SECTION 34.  Section 42.077, Human Resources Code, is amended

13-63    to read as follows:

13-64          Sec. 42.077.  NOTICE OF ACTION AGAINST FACILITY OR FAMILY

13-65    HOME.  (a)  If the department revokes or suspends a facility's

13-66    license or a family home's registration, the department shall

13-67    publish notice of this action in a newspaper of general circulation

13-68    in the county in which the facility or family home is located.  The

13-69    newspaper shall place the notice in the section in which

 14-1    advertisements for day-care services are normally published.

 14-2          (b)  If a person who operates a facility or family home that

 14-3    has had its license or registration revoked or suspended later

 14-4    applies for a new license or registration to operate the same

 14-5    facility or family home, the department shall charge the person an

 14-6    application fee in an amount necessary to reimburse the department

 14-7    for the cost of the notice relating to that facility or family

 14-8    home.

 14-9          (c)  The department shall pay for publication of the notice

14-10    from funds appropriated to the department for licensing and

14-11    regulating child-care facilities and for registering and regulating

14-12    family homes and from appeal and application fees collected under

14-13    Subsection (b) [of this section] and appropriated to the

14-14    department.

14-15          (d)  A facility or family home that has its license or

14-16    registration revoked or suspended shall mail notification of this

14-17    action by certified mail to the parents or guardian of the child

14-18    served by the facility or family home.  The facility shall mail the

14-19    notification within five days of the effective date of the

14-20    [license] revocation or suspension of the license or registration.

14-21          SECTION 35.  Subchapter D, Chapter 42, Human Resources Code,

14-22    is amended by adding Section 42.078 to read as follows:

14-23          Sec. 42.078.  ADMINISTRATIVE PENALTY.  (a)  The department

14-24    may impose an administrative penalty against a facility or family

14-25    home licensed or registered under this chapter that violates this

14-26    chapter or a rule or order adopted under this chapter.

14-27          (b)  The penalty for a violation may be in an amount not to

14-28    exceed $100.  Each day a violation continues or occurs is a

14-29    separate violation for purposes of imposing a penalty.

14-30          (c)  The amount of the penalty shall be based on:

14-31                (1)  the seriousness of the violation, including the

14-32    nature, circumstances, extent, and gravity of any prohibited acts,

14-33    and the hazard or potential hazard created to the health, safety,

14-34    or economic welfare of the public;

14-35                (2)  the economic harm to property or the environment

14-36    caused by the violation;

14-37                (3)  the history of previous violations;

14-38                (4)  the amount necessary to deter future violations;

14-39                (5)  efforts to correct the violation; and

14-40                (6)  any other matter that justice may require.

14-41          (d)  If the executive director determines that a violation

14-42    has occurred, the director may issue a recommendation on the

14-43    imposition of a penalty, including a recommendation on the amount

14-44    of the penalty.

14-45          (e)  Within 14 days after the date the recommendation is

14-46    issued, the executive director shall give written notice of the

14-47    recommendation to the person owning or operating the facility.  The

14-48    notice may be given by certified mail.  The notice must include a

14-49    brief summary of the alleged violation and a statement of the

14-50    amount of the recommended penalty and must inform the person that

14-51    the person has a right to a hearing on the occurrence of the

14-52    violation, the amount of the penalty, or both the occurrence of the

14-53    violation and the amount of the penalty.

14-54          (f)  Within 20 days after the date the person receives the

14-55    notice, the person in writing may accept the determination and

14-56    recommended penalty of the executive director or may make a written

14-57    request for a hearing on the occurrence of the violation, the

14-58    amount of the penalty, or both the occurrence of the violation and

14-59    the amount of the penalty.

14-60          (g)  If the person accepts the determination and recommended

14-61    penalty of the executive director or fails to respond to the notice

14-62    in a timely manner, the executive director shall issue an order and

14-63    impose the recommended penalty.

14-64          (h)  If the person requests a hearing, the executive director

14-65    shall set a hearing and give notice of the hearing to the person.

14-66    The hearing shall be held by an administrative law judge of the

14-67    State Office of Administrative Hearings.  The administrative law

14-68    judge shall make findings of fact and conclusions of law and issue

14-69    a final decision finding that a violation has occurred and imposing

 15-1    a penalty or finding that no violation occurred.

 15-2          (i)  The notice of the administrative law judge's order given

 15-3    to the person under Chapter 2001, Government Code, must include a

 15-4    statement of the right of the person to judicial review of the

 15-5    order.

 15-6          (j)  Within 30 days after the date the administrative law

 15-7    judge's order becomes final as provided by Section 2001.144,

 15-8    Government Code, the person shall:

 15-9                (1)  pay the amount of the penalty;

15-10                (2)  pay the amount of the penalty and file a petition

15-11    for judicial review contesting the occurrence of the violation, the

15-12    amount of the penalty, or both the occurrence of the violation and

15-13    the amount of the penalty; or

15-14                (3)  without paying the amount of the penalty, file a

15-15    petition for judicial review contesting the occurrence of the

15-16    violation, the amount of the penalty, or both the occurrence of the

15-17    violation and the amount of the penalty.

15-18          (k)  Within the 30-day period, a person who acts under

15-19    Subsection (j)(3) may:

15-20                (1)  stay enforcement of the penalty by:

15-21                      (A)  paying the amount of the penalty to the

15-22    court for placement in an escrow account; or

15-23                      (B)  giving to the court a supersedeas bond that

15-24    is approved by the court for the amount of the penalty and that is

15-25    effective until all judicial review of the order is final; or

15-26                (2)  request the court to stay enforcement of the

15-27    penalty by:

15-28                      (A)  filing with the court a sworn affidavit of

15-29    the person stating that the person is financially unable to pay the

15-30    amount of the penalty and is financially unable to give the

15-31    supersedeas bond; and

15-32                      (B)  giving a copy of the affidavit to the

15-33    executive director by certified mail.

15-34          (l)  On receipt of a copy of an affidavit under Subsection

15-35    (k)(2), the executive director may file with the court, within five

15-36    days after the date the copy is received, a contest to the

15-37    affidavit.  The court shall hold a hearing on the facts alleged in

15-38    the affidavit as soon as practicable and shall stay the enforcement

15-39    of the penalty on finding that the alleged facts are true.  The

15-40    person who files an affidavit has the burden of proving that the

15-41    person is financially unable to pay the amount of the penalty and

15-42    to give a supersedeas bond.

15-43          (m)  If the person does not pay the amount of the penalty and

15-44    the enforcement of the penalty is not stayed, the executive

15-45    director may refer the matter to the attorney general for

15-46    collection of the amount of the penalty.

15-47          (n)  Judicial review of the order:

15-48                (1)  is instituted by filing a petition as provided by

15-49    Subchapter G, Chapter 2001, Government Code; and

15-50                (2)  is under the substantial evidence rule.

15-51          (o)  If the court sustains the occurrence of the violation,

15-52    the court may uphold or reduce the amount of the penalty and order

15-53    the person to pay the full or reduced amount of the penalty.  If

15-54    the court does not sustain the occurrence of the violation, the

15-55    court shall order that no penalty is owed.

15-56          (p)  When the judgment of the court becomes final, the court

15-57    shall proceed under this subsection.  If the person paid the amount

15-58    of the penalty and if that amount is reduced or is not upheld by

15-59    the court, the court shall order that the appropriate amount plus

15-60    accrued interest be remitted to the person.  The rate of the

15-61    interest is the rate charged on loans to depository institutions by

15-62    the New York Federal Reserve Bank, and the interest shall be paid

15-63    for the period beginning on the date the penalty was paid and

15-64    ending on the date the penalty is remitted.  If the person gave a

15-65    supersedeas bond and if the amount of the penalty is not upheld by

15-66    the court, the court shall order the release of the bond.  If the

15-67    person gave a supersedeas bond and if the amount of the penalty is

15-68    reduced, the court shall order the release of the bond after the

15-69    person pays the amount.

 16-1          (q)  A penalty collected under this section shall be sent to

 16-2    the comptroller for deposit in the general revenue fund.

 16-3          (r)  All proceedings under this section are subject to

 16-4    Chapter 2001, Government Code.

 16-5          SECTION 36.  Chapter 43, Human Resources Code, is amended by

 16-6    adding Section 43.0042 to read as follows:

 16-7          Sec. 43.0042.  RECOGNITION OF LICENSE ISSUED BY ANOTHER

 16-8    STATE.  (a)  The department may waive any prerequisite to obtaining

 16-9    a license for an applicant:

16-10                (1)  after reviewing the applicant's credentials and

16-11    determining that the applicant holds a valid license from another

16-12    state that has license requirements substantially equivalent to

16-13    those of this state; or

16-14                (2)  after determining the applicant has a valid

16-15    license from another state with which this state has a reciprocity

16-16    agreement.

16-17          (b)  The department may enter into an agreement with another

16-18    state to permit licensing by reciprocity.

16-19          SECTION 37.  Chapter 43, Human Resources Code, is amended by

16-20    adding Section 43.0055 to read as follows:

16-21          Sec. 43.0055.  COMPETITIVE BIDDING OR ADVERTISING RULES.

16-22    (a)  The department may not adopt rules restricting competitive

16-23    bidding or advertising by a license holder except to prohibit

16-24    false, misleading, or deceptive practices.

16-25          (b)  In its rules to prohibit false, misleading, or deceptive

16-26    practices, the department may not include a rule that:

16-27                (1)  restricts the use of any medium for advertising;

16-28                (2)  restricts the use of a license holder's personal

16-29    appearance or voice in an advertisement;

16-30                (3)  relates to the size or duration of an

16-31    advertisement by the license holder; or

16-32                (4)  restricts the license holder's advertisement under

16-33    a trade name.

16-34          SECTION 38.  Section 43.006, Human Resources Code, is amended

16-35    to read as follows:

16-36          Sec. 43.006.  Fees.  The board may set and charge fees for

16-37    administering an examination and issuing an initial license, [or]

16-38    renewal license, or provisional license in amounts necessary to

16-39    cover the costs of administering this chapter.

16-40          SECTION 39.  Chapter 43, Human Resources Code, is amended by

16-41    adding Section 43.0081 to read as follows:

16-42          Sec. 43.0081.  PROVISIONAL LICENSE.  (a)  The department may

16-43    issue a provisional license to an applicant licensed in another

16-44    state who applies for a license in this state.  An applicant for a

16-45    provisional license under this section must:

16-46                (1)  be licensed in good standing as a child-care

16-47    administrator for at least two years in another state, the District

16-48    of Columbia, a foreign country, or a territory of the United States

16-49    that has licensing requirements that are substantially equivalent

16-50    to the requirements of this chapter;

16-51                (2)  have passed a national or other examination

16-52    recognized by the department that demonstrates competence in the

16-53    field of child-care administration; and

16-54                (3)  be sponsored by a person licensed by the

16-55    department under this chapter with whom the provisional license

16-56    holder may practice under this section.

16-57          (b)  The department may waive the requirement of Subsection

16-58    (a)(3) for an applicant if the department determines that

16-59    compliance with that subsection constitutes a hardship to the

16-60    applicant.

16-61          (c)  A provisional license is valid until the date the

16-62    department approves or denies the provisional license holder's

16-63    application for a license.  The department shall issue a license

16-64    under this chapter to the provisional license holder if:

16-65                (1)  the provisional license holder passes the

16-66    examination required by Section 43.004;

16-67                (2)  the department verifies that the provisional

16-68    license holder has the academic and experience requirements for a

16-69    license under this chapter; and

 17-1                (3)  the provisional license holder satisfies any other

 17-2    license requirements under this chapter.

 17-3          (d)  The department must complete the processing of a

 17-4    provisional license holder's application for a license not later

 17-5    than the 180th day after the date the provisional license is

 17-6    issued.  The department may extend the 180-day limit if the results

 17-7    of the license holder's examination have not been received by the

 17-8    department.

 17-9          SECTION 40.  Subsections (b) through (f), Section 43.009,

17-10    Human Resources Code, are amended to read as follows:

17-11          (b)  The board shall recognize, prepare, or administer

17-12    continuing education programs for license holders.  The continuing

17-13    education requirement may be fulfilled by studies in the areas of

17-14    legal aspects of child care, concepts related to the field of

17-15    social work, or other subjects approved by the department.

17-16          (c)  A person who is otherwise eligible to renew a license

17-17    may renew an unexpired license by paying to the department before

17-18    the expiration date of the license the required renewal fee.  A

17-19    person whose license has expired may not engage in the activities

17-20    that require a license until the license has been renewed under the

17-21    provisions of this section.

17-22          (d)  If a person's license has been expired for 90 days or

17-23    less, the person may renew the license by paying to the department

17-24    one and [the required renewal fee and a fee that is] one-half times

17-25    the required renewal [of the examination] fee [for the license].

17-26          (e)  If a person's license has been expired for longer than

17-27    90 days but less than one year [two years], the person may renew

17-28    the license by paying to the department two times the required [all

17-29    unpaid] renewal [fees and a] fee [that is equal to the examination

17-30    fee for the license].

17-31          (f)  If a person's license has been expired for one year [two

17-32    years] or longer, the person may not renew the license.  The person

17-33    may obtain a new license by submitting to reexamination and

17-34    complying with the requirements and procedures for obtaining an

17-35    original license.  If the [However, the department may renew

17-36    without reexamination an expired license of a] person [who] was

17-37    licensed in this state, moved to another state, and is currently

17-38    licensed and has been in practice in the other state for the two

17-39    years preceding application, the person may renew an expired

17-40    license without reexamination.  The person must pay to the

17-41    department a fee that is equal to two times the required renewal

17-42    [the examination] fee for the license.

17-43          SECTION 41.  Section 43.010, Human Resources Code, is amended

17-44    to read as follows:

17-45          Sec. 43.010.  LICENSE REVOCATION, [OR] SUSPENSION, OR

17-46    REFUSAL; REPRIMAND OR PROBATION.  (a)  The department shall revoke,

17-47    suspend, or refuse to renew a license, place on probation a person

17-48    whose license has been suspended, or reprimand a license holder for

17-49    a violation by the license holder of this chapter or a rule of the

17-50    board.

17-51          (b)  The department may revoke a license if the license

17-52    holder is:

17-53                (1)  convicted of a felony;

17-54                (2)  convicted of a misdemeanor involving fraud or

17-55    deceit;

17-56                (3)  addicted to a dangerous drug or intemperate in the

17-57    use of alcohol; or

17-58                (4)  grossly negligent in performing duties as a

17-59    child-care administrator.

17-60          (c) [(b)]  The department shall suspend a license, place on

17-61    probation a person whose license has been suspended, or reprimand a

17-62    license holder for a violation of this chapter or a rule of the

17-63    board.

17-64          (d)  If a license suspension is probated, the department may

17-65    require the license holder:

17-66                (1)  to report regularly to the department on the

17-67    conditions [matters that are the basis] of the probation;

17-68                (2)  to limit practice to the areas prescribed by the

17-69    department; or

 18-1                (3)  to continue or renew professional education until

 18-2    the practitioner attains a degree of skill satisfactory to the

 18-3    department in those areas in which improvement is a condition [that

 18-4    are the basis] of the probation.

 18-5          SECTION 42.  Chapter 43, Human Resources Code, is amended by

 18-6    adding Sections 43.0105 and 43.0106 to read as follows:

 18-7          Sec. 43.0105.  REVOCATION OF PROBATION.  The department may

 18-8    revoke the probation of a license holder whose license is suspended

 18-9    if the license holder violates a term of the conditions of

18-10    probation.

18-11          Sec. 43.0106.  DISCIPLINARY HEARING.  If the department

18-12    proposes to suspend, revoke, or refuse to renew a person's license,

18-13    the person is entitled to a hearing conducted by the State Office

18-14    of Administrative Hearings.  Proceedings for a disciplinary action

18-15    are governed by the administrative procedure law, Chapter 2001,

18-16    Government Code.  Rules of practice adopted by the board under

18-17    Section 2001.004, Government Code, applicable to the proceedings

18-18    for a disciplinary action may not conflict with rules adopted by

18-19    the State Office of Administrative Hearings.

18-20          SECTION 43.  Section 48.081, Human Resources Code, is amended

18-21    to read as follows:

18-22          Sec. 48.081.  INVESTIGATION OF REPORTS IN MHMR FACILITIES AND

18-23    IN COMMUNITY CENTERS.  (a)  The department shall receive and

18-24    investigate reports of the abuse, neglect, or exploitation of an

18-25    individual:

18-26                (1)  receiving services in a facility operated by the

18-27    Texas Department of Mental Health and Mental Retardation; or

18-28                (2)  being provided services through a program under

18-29    contract with a facility operated by the Texas Department of Mental

18-30    Health and Mental Retardation.

18-31          (b)  The department and the Texas Department of Mental Health

18-32    and Mental Retardation shall develop joint rules to facilitate

18-33    investigations in state mental health and mental retardation

18-34    facilities.

18-35          (c)  The department shall receive and investigate a report of

18-36    the alleged abuse, neglect, or exploitation of an individual

18-37    receiving services in a community center or from a program

18-38    providing services under contract with a community center.

18-39          (d)  The department shall forward to a state mental health or

18-40    mental retardation facility, a community center, or a program

18-41    providing mental health or mental retardation services under

18-42    contract with such a facility or community center:

18-43                (1)  a copy of any report the department receives

18-44    relating to alleged or suspected abuse, neglect, or exploitation of

18-45    an individual receiving services from that facility, community

18-46    center, or program; and

18-47                (2)  a copy of the department's investigation findings

18-48    and report.

18-49          (e)  The department's confirmed investigation findings may

18-50    not be changed by a superintendent of a state mental health or

18-51    mental retardation facility or a director of a community center.

18-52    The commissioner of mental health and mental retardation or the

18-53    commissioner's designee may change the department's confirmed

18-54    investigation findings for good cause.  The commissioner or

18-55    designated representative shall inform the department in writing

18-56    of:

18-57                (1)  each case in which the commissioner or designee

18-58    changes the department's findings; and

18-59                (2)  the reasons supporting the decision to change the

18-60    findings.

18-61          (f)  After completion of the appeals process, the department

18-62    shall refer a complaint relating to an investigation conducted by

18-63    the department under this section to the department's ombudsman

18-64    office for appropriate action.

18-65          (g) [(f)]  If the department's investigation under this

18-66    section reveals that an elderly or disabled person has been abused

18-67    by another person in a manner that constitutes a criminal offense

18-68    under any law, including Section 22.04, Penal Code, a copy of the

18-69    investigation shall be submitted to the appropriate law enforcement

 19-1    agency.

 19-2          (h)  The department by rule may assign priorities to an

 19-3    investigation conducted by the department under this section.  The

 19-4    primary criterion used by the department in assigning a priority

 19-5    must be the risk that a delay in the investigation will impede the

 19-6    collection of evidence.

 19-7          (i)  The department and the Texas Department of Mental Health

 19-8    and Mental Retardation shall jointly develop and implement a single

 19-9    system to track reports and investigations under this section.  To

19-10    facilitate implementation of the system, the department and the

19-11    Texas Department of Mental Health and Mental Retardation shall use

19-12    appropriate methods of measuring the number and outcome of reports

19-13    and investigations under this section.

19-14          (j) [(g)]  In this section, "community center" has the

19-15    meaning assigned by Section 531.002, Health and Safety Code.

19-16          SECTION 44.  Section 161.001, Family Code, is amended to read

19-17    as follows:

19-18          Sec. 161.001.  INVOLUNTARY TERMINATION OF PARENT-CHILD

19-19    RELATIONSHIP.  The court may order termination of the parent-child

19-20    relationship if the court finds by clear and convincing evidence:

19-21                (1)  that the parent has:

19-22                      (A)  voluntarily left the child alone or in the

19-23    possession of another not the parent and expressed an intent not to

19-24    return;

19-25                      (B)  voluntarily left the child alone or in the

19-26    possession of another not the parent without expressing an intent

19-27    to return, without providing for the adequate support of the child,

19-28    and remained away for a period of at least three months;

19-29                      (C)  voluntarily left the child alone or in the

19-30    possession of another without providing adequate support of the

19-31    child and remained away for a period of at least six months;

19-32                      (D)  knowingly placed or knowingly allowed the

19-33    child to remain in conditions or surroundings which endanger the

19-34    physical or emotional well-being of the child;

19-35                      (E)  engaged in conduct or knowingly placed the

19-36    child with persons who engaged in conduct which endangers the

19-37    physical or emotional well-being of the child;

19-38                      (F)  failed to support the child in accordance

19-39    with his ability during a period of one year ending within six

19-40    months of the date of the filing of the petition;

19-41                      (G)  abandoned the child without identifying the

19-42    child or furnishing means of identification, and the child's

19-43    identity cannot be ascertained by the exercise of reasonable

19-44    diligence;

19-45                      (H)  voluntarily, and with knowledge of the

19-46    pregnancy, abandoned the mother of the child beginning at a time

19-47    during her pregnancy with the child and continuing through the

19-48    birth, failed to provide adequate support or medical care for the

19-49    mother during the period of abandonment before the birth of the

19-50    child, and remained apart from the child or failed to support the

19-51    child since the birth;

19-52                      (I)  contumaciously refused to submit to a

19-53    reasonable and lawful order of a court under Chapter 264;

19-54                      (J)  been the major cause of:

19-55                            (i)  the failure of the child to be

19-56    enrolled in school as required by the Education Code; or

19-57                            (ii)  the child's absence from the child's

19-58    home without the consent of the parents or guardian for a

19-59    substantial length of time or without the intent to return;

19-60                      (K)  executed before or after the suit is filed

19-61    an unrevoked or irrevocable affidavit of relinquishment of parental

19-62    rights as provided by this chapter;

19-63                      (L)  been adjudicated to be criminally

19-64    responsible for the death or serious injury of a child;

19-65                      (M)  had his or her parent-child relationship

19-66    terminated with respect to another child based on a finding that

19-67    the parent's conduct was in violation of Paragraph (D) or (E) or

19-68    substantially equivalent provisions of the law of another state;

19-69    [or]

 20-1                      (N)  constructively abandoned the child who has

 20-2    been in the permanent or temporary managing conservatorship of the

 20-3    Department of Protective and Regulatory Services or an authorized

 20-4    agency for not less than six months [one year], and:

 20-5                            (i)  the department or authorized agency

 20-6    has made reasonable efforts to return the child to the parent;

 20-7                            (ii)  the parent has not regularly visited

 20-8    or maintained significant contact with the child; and

 20-9                            (iii)  the parent has demonstrated an

20-10    inability to provide the child with a safe environment; or

20-11                      (O)  failed to comply with the provisions of a

20-12    court order that specifically established the actions necessary for

20-13    the parent to obtain the return of the child who has been in the

20-14    permanent or temporary managing conservatorship of the Department

20-15    of Protective and Regulatory Services for not less than nine months

20-16    as a result of the child's removal from the parent under Chapter

20-17    262 for the abuse or neglect of the child; and

20-18                (2)  that termination is in the best interest of the

20-19    child.

20-20          SECTION 45.  Subchapter B, Chapter 201, Family Code, is

20-21    amended by adding Section 201.1085 to read as follows:

20-22          Sec. 201.1085.  DISCRETIONARY APPOINTMENT OF MASTER FOR CHILD

20-23    PROTECTION CASES.  The presiding judge may appoint a master for a

20-24    court handling child protection cases if the court needs assistance

20-25    in order to process the cases in a reasonable time.

20-26          SECTION 46.  Section 261.001, Family Code, is amended by

20-27    adding Subdivision (7) to read as follows:

20-28                (7)  "Board" means the Board of Protective and

20-29    Regulatory Services.

20-30          SECTION 47.  Section 261.107, Family Code, is amended to read

20-31    as follows:

20-32          Sec. 261.107.  False Report; Penalty.  A person commits an

20-33    offense if the person knowingly or intentionally makes a report as

20-34    provided in this chapter that the person knows is false or lacks

20-35    factual foundation.  An offense under this section [subsection] is

20-36    a Class A [B] misdemeanor.

20-37          SECTION 48.  Subchapter D, Chapter 261, Family Code, is

20-38    amended by adding Section 261.3015 to read as follows:

20-39          Sec. 261.3015.  FLEXIBLE RESPONSE SYSTEM.  (a)  In assigning

20-40    priorities and prescribing investigative procedures based on the

20-41    severity and immediacy of the alleged harm to a child under Section

20-42    261.301(d), the board by rule shall establish a flexible response

20-43    system to allow the department to allocate resources by

20-44    investigating serious cases of abuse and neglect and providing

20-45    assessment and family preservation services in less serious cases.

20-46          (b)  The classification under the flexible response system of

20-47    a case may be changed as warranted by the circumstances.

20-48          (c)  The department may implement the flexible response

20-49    system by establishing a pilot program in a single department

20-50    service region.  The department shall study the results of the

20-51    system in the region in determining the method by which to

20-52    implement the system statewide.

20-53          SECTION 49.  Section 261.311, Family Code, is amended to read

20-54    as follows:

20-55          Sec. 261.311.  [NOTICE OF] INTERVIEW OR EXAMINATION OF CHILD.

20-56    (a)  The department or the designated agency shall interview or

20-57    examine a child who is the subject of a report of suspected child

20-58    abuse or neglect.

20-59          (b)  When [If,] during an investigation[,] a representative

20-60    of the department or the designated agency conducts an interview

20-61    with or an examination of a child, the department or designated

20-62    agency shall make a reasonable effort before 24 hours after the

20-63    time of the interview or examination to notify each parent of the

20-64    child and the child's legal guardian, if one has been appointed, of

20-65    the nature of the allegation and of the fact that the interview or

20-66    examination was conducted.

20-67          (c)  The notice required by Subsection (b) is not required if

20-68    the department or agency determines that the notice is likely to

20-69    endanger the safety of the child who is the subject of the report,

 21-1    the person who made the report, or any other person who

 21-2    participates in the investigation of the report.

 21-3          (d)  The notice required by Subsection (b) may be delayed at

 21-4    the request of a law enforcement agency if notification during the

 21-5    required time would interfere with an ongoing criminal

 21-6    investigation.

 21-7          SECTION 50.  Subchapter D, Chapter 261, Family Code, is

 21-8    amended by adding Section 261.315 to read as follows:

 21-9          Sec. 261.315.  REMOVAL OF CERTAIN INVESTIGATION INFORMATION

21-10    FROM RECORDS.  (a)  At the conclusion of an investigation in which

21-11    the department determines that the person alleged to have abused or

21-12    neglected a child did not commit abuse or neglect, the department

21-13    shall notify the person of the person's right to request the

21-14    department to remove information about the person's alleged role in

21-15    the abuse or neglect report from the department's records.

21-16          (b)  On request under Subsection (a) by a person whom the

21-17    department has determined did not commit abuse or neglect, the

21-18    department shall remove information from the department's records

21-19    concerning the person's alleged role in the abuse or neglect

21-20    report.

21-21          (c)  The board shall adopt rules necessary to administer this

21-22    section.

21-23          SECTION 51.  Subsection (a), Section 262.109, Family Code, is

21-24    amended to read as follows:

21-25          (a)  The department or other agency must give written notice

21-26    as prescribed by this section to each parent of the child or to the

21-27    child's [parent,] conservator[,] or legal guardian when a

21-28    representative of the Department of Protective and Regulatory

21-29    Services or other agency takes possession of a child under this

21-30    chapter.

21-31          SECTION 52.  Subsection (c), Section 262.201, Family Code, is

21-32    amended to read as follows:

21-33          (c)  If the court finds sufficient evidence to satisfy a

21-34    person of ordinary prudence and caution that there is a continuing

21-35    danger to the physical health or safety of the child and for the

21-36    child to remain in the home is contrary to the welfare of the

21-37    child, the court shall:

21-38                (1)  issue an appropriate temporary order under Chapter

21-39    105; and

21-40                (2)  inform each parent in open court that parental and

21-41    custodial rights and duties may be subject to restriction or to

21-42    termination unless the parent or parents are willing and able to

21-43    provide the child with a safe environment.

21-44          SECTION 53.  Subchapter A, Chapter 263, Family Code, is

21-45    amended by adding Section 263.006 to read as follows:

21-46          Sec. 263.006.  WARNING TO PARENTS.  At the status hearing

21-47    under Subchapter C and at each permanency hearing under Subchapter

21-48    D held after the court has rendered a temporary order appointing

21-49    the department as temporary managing conservator, the court shall

21-50    inform each parent in open court that parental and custodial rights

21-51    and duties may be subject to restriction or to termination unless

21-52    the parent or parents are willing and able to provide the child

21-53    with a safe environment.

21-54          SECTION 54.  Section 263.201, Family Code, is amended to read

21-55    as follows:

21-56          Sec.  263.201.  STATUS HEARING; TIME.  Not later than the

21-57    60th day after the date the court renders a temporary order

21-58    appointing the department as temporary managing conservator of a

21-59    child [of a full adversary hearing under Chapter 262], the court

21-60    shall hold a status hearing to review the child's status and the

21-61    permanency plan developed for the child.

21-62          SECTION 55.  The heading to Subchapter D, Chapter 263, Family

21-63    Code, is amended to read as follows:

21-64                SUBCHAPTER D. PERMANENCY [REVIEW] HEARINGS

21-65          SECTION 56.  Subsections (a) and (b), Section 263.301, Family

21-66    Code, are amended to read as follows:

21-67          (a)  Notice of a permanency [review] hearing shall be given

21-68    as provided by Rule 21a, Texas Rules of Civil Procedure, to all

21-69    persons entitled to notice of the hearing.

 22-1          (b)  The following persons are entitled to at least 10 days'

 22-2    notice of a permanency hearing [to review a child's placement] and

 22-3    are entitled to present evidence and be heard at the hearing:

 22-4                (1)  the department;

 22-5                (2)  the foster parent or director of the group home or

 22-6    institution where the child is residing;

 22-7                (3)  each parent of the child;

 22-8                (4)  the managing conservator or guardian of the child;

 22-9    [and]

22-10                (5)  an attorney ad litem appointed for the child under

22-11    Chapter 107;

22-12                (6)  a volunteer advocate appointed for the child under

22-13    Chapter 107; and

22-14                (7)  any other person or agency named by the court to

22-15    have an interest in the child's welfare.

22-16          SECTION 57.  Section 263.302, Family Code, is amended to read

22-17    as follows:

22-18          Sec. 263.302.  CHILD'S ATTENDANCE AT HEARING.  The [court may

22-19    dispense with the attendance of the] child shall attend each

22-20    permanency hearing unless the court specifically excuses the

22-21    child's attendance.  Failure by the child to attend a hearing does

22-22    not affect the validity of an order rendered at the [at a placement

22-23    review] hearing.

22-24          SECTION 58.  Subchapter D, Chapter 263, Family Code, is

22-25    amended by adding Section 263.3025 to read as follows:

22-26          Sec. 263.3025.  PERMANENCY PLAN.  (a)  The department shall

22-27    prepare a permanency plan for a child for whom the department has

22-28    been appointed temporary managing conservator.  The department

22-29    shall give a copy of the plan to each person entitled to notice

22-30    under Section 263.301(b) not later than the 10th day before the

22-31    date of the child's first permanency hearing.

22-32          (b)  In addition to the requirements of the department rules

22-33    governing permanency planning, the permanency plan must contain the

22-34    information required to be included in a permanency progress report

22-35    under Section 263.303.

22-36          (c)  The department shall modify the permanency plan for a

22-37    child as required by the circumstances and needs of the child.

22-38          SECTION 59.  Section 263.303, Family Code, is amended to read

22-39    as follows:

22-40          Sec. 263.303.  PERMANENCY PROGRESS [STATUS] REPORT.  (a)  Not

22-41    later than the 10th day before the date set for each permanency

22-42    hearing other than the first permanency [review] hearing, the

22-43    department or other authorized agency shall file with the court and

22-44    provide to each party, the child's attorney ad litem, and the

22-45    child's volunteer advocate a permanency progress [status] report

22-46    unless the court orders a different period for providing the report

22-47    [or orders that a report is not required for a specific hearing].

22-48          (b)  The permanency progress [status] report must:

22-49                (1)  recommend that the suit be dismissed; or

22-50                (2)  recommend that the suit continue, and:

22-51                      (A)  identify the date for dismissal of the suit

22-52    under this chapter;

22-53                      (B)  provide:

22-54                            (i)  the name of any person entitled to

22-55    notice under Chapter 102 who has not been served;

22-56                            (ii)  a description of the efforts by the

22-57    department or another agency to locate and request service of

22-58    citation; and

22-59                            (iii)  a description of each parent's

22-60    assistance in providing information necessary to locate an unserved

22-61    party;

22-62                      (C)  evaluate [all relevant information

22-63    concerning each of the guidelines under this chapter and] the

22-64    parties' compliance with temporary orders and with the service

22-65    plan;

22-66                      (D)  evaluate whether the child's placement in

22-67    substitute care meets the child's needs and recommend other plans

22-68    or services to meet the child's special needs or circumstances;

22-69                      (E)  describe the permanency plan for the child

 23-1    and recommend actions necessary to ensure that a final order

 23-2    consistent with that permanency plan is rendered before the date

 23-3    for dismissal of the suit under this chapter; and

 23-4                      (F) [(2)  recommend one of the following actions:]

 23-5                      [(A)  that the child be returned to the child's

 23-6    home and that the suit be dismissed;]

 23-7                      [(B)  that the child be returned to the child's

 23-8    home with the department or other agency retaining conservatorship;]

 23-9                      [(C)  that the child remain in substitute care

23-10    for a specified period and that the child's parents continue to

23-11    work toward providing the child with a safe environment;]

23-12                      [(D)  that the child remain in substitute care

23-13    for a specified period and that termination of parental rights be

23-14    sought under this code;]

23-15                      [(E)  that a child who has resided in substitute

23-16    care for at least 18 months be placed or remain in permanent or

23-17    long-term substitute care because of the child's special needs or

23-18    circumstances; or]

23-19                      [(F)  that other plans be made or other services

23-20    provided in accordance with the child's special needs or

23-21    circumstances; and]

23-22                [(3)]  with respect to a child 16 years of age or

23-23    older, identify the services needed to assist the child in the

23-24    transition to adult life.

23-25          (c)  A parent whose parental rights are the subject of a suit

23-26    affecting the parent-child relationship, the attorney for that

23-27    parent, or the child's attorney ad litem or guardian ad litem may

23-28    file a response to the department's or other agency's report filed

23-29    under Subsection (b).  A response must be filed not later than the

23-30    third day before the date of the hearing.

23-31          SECTION 60.  Section 263.304, Family Code, is amended to read

23-32    as follows:

23-33          Sec. 263.304.  INITIAL PERMANENCY [REVIEW] HEARING; TIME.

23-34    Not later than the 180th day after the date the court renders a

23-35    temporary order appointing the department as temporary managing

23-36    conservator of a child [of the conclusion of the full adversary

23-37    hearing under Chapter 262], the court shall hold a permanency

23-38    hearing to review the status of, and permanency plan for, the [a]

23-39    child to ensure that a final order consistent with that permanency

23-40    plan is rendered before the date for dismissal of the suit under

23-41    this chapter [in substitute care in the court's jurisdiction,

23-42    including the time for the completion of the plan and the projected

23-43    date for the achievement of the child's permanency plan].

23-44          SECTION 61.  Section 263.305, Family Code, is amended to read

23-45    as follows:

23-46          Sec. 263.305.  SUBSEQUENT PERMANENCY [REVIEW] HEARINGS.  A

23-47    subsequent permanency hearing before entry of a final order

23-48    [Subsequent review hearings] shall be held [not earlier than 5 1/2

23-49    months and] not later than the 120th day [seven months] after the

23-50    date of  the last permanency hearing in the suit.  For [unless,

23-51    for] good cause shown or on the court's own motion [by a party],

23-52    the court may order more frequent hearings [an earlier hearing is

23-53    approved by the court].

23-54          SECTION 62.  Section 263.306, Family Code, is amended to read

23-55    as follows:

23-56          Sec. 263.306.  PERMANENCY [REVIEW] HEARINGS:  PROCEDURE.  At

23-57    each permanency [review] hearing the court shall [determine]:

23-58                (1)  identify [the identity of] all persons or parties

23-59    present at the hearing or those given notice but failing to appear;

23-60                (2)  review the efforts of the department or another

23-61    agency in:

23-62                      (A)  attempting to locate all necessary persons;

23-63                      (B)  requesting service of citation; and

23-64                      (C)  obtaining the assistance of a parent in

23-65    providing information necessary to locate an absent parent;

23-66                (3)  return the child to the parent or parents if

23-67    [whether] the child's parent or parents are willing and able to

23-68    provide the child with a safe environment and the return of the

23-69    child is in the child's best interest;

 24-1                (4)  return the child to a person or entity, other than

 24-2    a parent, entitled to service under Chapter 102 if the person or

 24-3    entity is willing and able to provide the child with a safe

 24-4    environment and the return of the child is in the child's best

 24-5    interest;

 24-6                (5)  evaluate the department's efforts to identify

 24-7    relatives who could provide the child with a safe environment, if

 24-8    the child is not returned to a parent or another person or entity

 24-9    entitled to service under Chapter 102;

24-10                (6)  evaluate the parties' compliance with temporary

24-11    orders and

24-12                [(3)  the extent to which the child's parents have

24-13    taken the necessary actions or responsibilities toward achieving

24-14    the plan goal during the period of the service plan and the extent

24-15    to which the department or other authorized agency has provided

24-16    assistance to the parents as provided in] the service plan;

24-17                (7)  determine [(4)] whether:

24-18                      (A)  the child continues to need substitute care;

24-19                      (B)  [and whether] the child's current placement

24-20    is appropriate for meeting the child's needs; and

24-21                      (C)  other plans or services are needed to meet

24-22    the child's special needs or circumstances;

24-23                (8)  if the child is placed in institutional care,

24-24    determine whether efforts have been made to ensure placement of the

24-25    child in the least restrictive environment consistent with the best

24-26    interest and special needs of the child;

24-27                (9)  if the child is 16 years of age or older, order

24-28    services that are needed to assist the child in making the

24-29    transition from substitute care to independent living if the

24-30    services are available in the community;

24-31                (10)  determine plans, services, and further temporary

24-32    orders necessary to ensure that a final order is rendered before

24-33    the date for dismissal of the suit under this chapter; and

24-34                (11)  determine the date for dismissal of the suit

24-35    under this chapter and give notice in open court to all parties of:

24-36                      (A)  the dismissal date;

24-37                      (B)  the date of the next permanency hearing; and

24-38                      (C)  the date the suit is set for trial.

24-39                [(5)  a date for achieving the child's permanency plan;]

24-40                [(6)  if the child has been in substitute care for not

24-41    less than 18 months, the future status of the child and the

24-42    appropriateness of the date by which the child may return home and

24-43    whether to render further appropriate orders;]

24-44                [(7)  if the child is in substitute care outside the

24-45    state, whether the out-of-state placement continues to be

24-46    appropriate and in the best interest of the child;]

24-47                [(8)  whether the child's parents are willing and able

24-48    to provide the child with a safe environment without the assistance

24-49    of a service plan and, if so, return the child to the parents;]

24-50                [(9)  whether the child's parents are willing and able

24-51    to provide the child with a safe environment with the assistance of

24-52    a service plan and, if so, return the child or continue the

24-53    placement of the child in the child's home under the department's

24-54    or other agency's supervision;]

24-55                [(10)  whether the child's parents are presently

24-56    unwilling or unable to provide the child with a safe environment,

24-57    even with the assistance of a service plan, and, if so, order the

24-58    child to remain under the department's or other agency's managing

24-59    conservatorship for a period of time specified by the court;]

24-60                [(11)  whether a long-term substitute care placement is

24-61    in the child's best interest because of the child's special needs

24-62    or circumstances and, if so, begin a long-term substitute care

24-63    placement and if the child is placed in institutional care, whether

24-64    efforts have been made to ensure placement of the child in the

24-65    least restrictive environment consistent with the best interest and

24-66    special needs of the child;]

24-67                [(12)  whether a child is 16 years of age or older and,

24-68    if so, order the services that are needed to assist the child in

24-69    making the transition from substitute care to independent living if

 25-1    the services are available in the community;]

 25-2                [(13)  whether the child has been placed with the

 25-3    department under a voluntary placement agreement and, if so, order

 25-4    that the department will institute further proceedings or return

 25-5    the child to the parents;]

 25-6                [(14)  whether the department or authorized agency has

 25-7    custody, care, and control of the child under an affidavit of

 25-8    relinquishment of parental rights naming the department managing

 25-9    conservator and, if so, direct the department or authorized agency

25-10    to institute further proceedings; and]

25-11                [(15)  whether parental rights to the child have been

25-12    terminated and, if so, determine whether the department or

25-13    authorized agency will attempt to place the child for adoption.]

25-14          SECTION 63.  Chapter 263, Family Code, is amended by adding

25-15    Subchapters E and F to read as follows:

25-16        SUBCHAPTER E.  FINAL ORDER FOR CHILD UNDER DEPARTMENT CARE

25-17          Sec. 263.401.  DISMISSAL AFTER ONE YEAR; EXTENSION.

25-18    (a)  Unless the court has rendered a final order or granted an

25-19    extension under Subsection (b), on the first Monday after the first

25-20    anniversary of the date the court rendered a temporary order

25-21    appointing the department as temporary managing conservator, the

25-22    court shall dismiss the suit affecting the parent-child

25-23    relationship filed by the department that requests termination of

25-24    the parent-child relationship or requests that the department be

25-25    named conservator of the child.

25-26          (b)  On or before the time described by Subsection (a) for

25-27    the dismissal of the suit, the court may extend the court's

25-28    jurisdiction of the suit for a period stated in the extension

25-29    order, but not longer than 180 days after the time described by

25-30    Subsection (a), if the court has continuing jurisdiction of the

25-31    suit and the appointment of the department as temporary managing

25-32    conservator is in the best interest of the child.  If the court

25-33    grants an extension, the extension order must also:

25-34                (1)  schedule the new date for dismissal of the suit;

25-35    and

25-36                (2)  make further temporary orders for the safety and

25-37    welfare of the child as necessary to avoid further delay in

25-38    resolving the suit.

25-39          (c)  If the court grants an extension, the court shall render

25-40    a final order or dismiss the suit on or before the date specified

25-41    in the extension order and may not grant an additional extension.

25-42          (d)  For purposes of this section, a final order is an order

25-43    that:

25-44                (1)  requires that a child be returned to the child's

25-45    parent;

25-46                (2)  names a relative of the child or another person as

25-47    the child's managing conservator;

25-48                (3)  without terminating the parent-child relationship,

25-49    appoints the department as the managing conservator of the child;

25-50    or

25-51                (4)  terminates the parent-child relationship and

25-52    appoints a relative of the child, another suitable person, or the

25-53    department as managing conservator of the child.

25-54          Sec. 263.402.  RETURN OF CHILD TO PARENT OR PLACEMENT WITH

25-55    RELATIVE.  (a)  Notwithstanding Section 263.401, the court may

25-56    retain jurisdiction and not dismiss the suit or render a final

25-57    order as required by that section if the court:

25-58                (1)  finds that retaining jurisdiction under this

25-59    section is in the best interest of the child;

25-60                (2)  orders the department to return the child to the

25-61    child's parent or to place the child with a relative of the child;

25-62                (3)  requires that the department continue to serve as

25-63    temporary managing conservator of the child; and

25-64                (4)  orders the department to monitor the child's

25-65    placement to ensure that the child is in a safe environment.

25-66          (b)  If the court renders an order under this section, the

25-67    court must include in the order specific findings regarding the

25-68    grounds for the order.

25-69          Sec. 263.403.  FINAL ORDER APPOINTING DEPARTMENT AS MANAGING

 26-1    CONSERVATOR WITHOUT TERMINATING PARENTAL RIGHTS.  (a)  The court

 26-2    may render a final order appointing the department as managing

 26-3    conservator of the child without terminating the rights of the

 26-4    parent of the child if the court finds that:

 26-5                (1)  appointment of a parent as managing conservator

 26-6    would not be in the best interest of the child because the

 26-7    appointment would significantly impair the child's physical health

 26-8    or emotional development; and

 26-9                (2)  it would not be in the best interest of the child

26-10    to appoint a relative of the child or another person as managing

26-11    conservator.

26-12          (b)  In determining whether the department should be

26-13    appointed as managing conservator of the child without terminating

26-14    the rights of a parent of the child, the court shall take the

26-15    following factors into consideration:

26-16                (1)  that the child will reach 18 years of age in not

26-17    less than three years;

26-18                (2)  that the child is 12 years of age or older and has

26-19    expressed a strong desire against termination or being adopted;

26-20                (3)  that the child has special medical or behavioral

26-21    needs that make adoption of the child unlikely; and

26-22                (4)  the needs and desires of the child.

26-23             (Sections 263.404-263.500 reserved for expansion

26-24                 SUBCHAPTER F.  PLACEMENT REVIEW HEARINGS

26-25          Sec. 263.501.  PLACEMENT REVIEW AFTER FINAL ORDER.  (a)  If

26-26    the department has been named as a child's managing conservator in

26-27    a final order that does not include termination of parental rights,

26-28    the court shall conduct a placement review hearing at least once

26-29    every six months until the child becomes an adult.

26-30          (b)  If the department has been named as a child's managing

26-31    conservator in a final order that terminates a parent's parental

26-32    rights, the court shall conduct a placement review hearing at least

26-33    once every six months until the date the child is adopted or the

26-34    child becomes an adult.

26-35          (c)  Notice of a placement review hearing shall be given as

26-36    provided by Rule 21a, Texas Rules of Civil Procedure, to each

26-37    person entitled to notice of the hearing.

26-38          (d)  The following are entitled to not less than 10 days'

26-39    notice of a placement review hearing:

26-40                (1)  the department;

26-41                (2)  the foster parent or director of the group home or

26-42    institution in which the child is residing;

26-43                (3)  each parent of the child;

26-44                (4)  each possessory conservator or guardian of the

26-45    child;

26-46                (5)  the child's attorney ad litem and volunteer

26-47    advocate, if the appointments were not dismissed in the final

26-48    order; and

26-49                (6)  any other person or agency named by the court as

26-50    having an interest in the child's welfare.

26-51          (e)  The court may dispense with the requirement that the

26-52    child attend a placement review hearing.

26-53          Sec. 263.502.  PLACEMENT REVIEW REPORT.  (a)  Not later than

26-54    the 10th day before the date set for a placement review hearing,

26-55    the department or other authorized agency shall file a placement

26-56    review report with the court and provide a copy to each person

26-57    entitled to notice under Section 263.501(d).

26-58          (b)  For good cause shown, the court may order a different

26-59    time for filing the placement review report or may order that a

26-60    report is not required for a specific hearing.

26-61          (c)  The placement review report must:

26-62                (1)  evaluate whether the child's current placement is

26-63    appropriate for meeting the child's needs;

26-64                (2)  evaluate whether efforts have been made to ensure

26-65    placement of the child in the least restrictive environment

26-66    consistent with the best interest and special needs of the child if

26-67    the child is placed in institutional care;

26-68                (3)  identify the services that are needed to assist a

26-69    child who is at least 16 years of age in making the transition from

 27-1    substitute care to independent living if the services are available

 27-2    in the community;

 27-3                (4)  identify other plans or services that are needed

 27-4    to meet the child's special needs or circumstances; and

 27-5                (5)  describe the efforts of the department or

 27-6    authorized agency to place the child for adoption if parental

 27-7    rights to the child have been terminated and the child is eligible

 27-8    for adoption.

 27-9          Sec. 263.503.  PLACEMENT REVIEW HEARINGS; PROCEDURE.  At each

27-10    placement review hearing, the court shall determine whether:

27-11                (1)  the child's current placement is appropriate for

27-12    meeting the child's needs;

27-13                (2)  efforts have been made to ensure placement of the

27-14    child in the least restrictive environment consistent with the best

27-15    interest and special needs of the child if the child is placed in

27-16    institutional care;

27-17                (3)  the services that are needed to assist a child who

27-18    is at least 16 years of age in making the transition from

27-19    substitute care to independent living are available in the

27-20    community;

27-21                (4)  other plans or services are needed to meet the

27-22    child's special needs or circumstances; and

27-23                (5)  the department or authorized agency has exercised

27-24    due diligence in attempting to place the child for adoption if

27-25    parental rights to the child have been terminated and the child is

27-26    eligible for adoption.

27-27          SECTION 64.  Section 264.009, Family Code, is amended to read

27-28    as follows:

27-29          Sec. 264.009.  LEGAL REPRESENTATION OF DEPARTMENT.  (a)  In

27-30    [Except as provided by Subsection (b), in] any action under this

27-31    code [title], the department shall be represented in court by

27-32    [the]:

27-33                (1)  the county [prosecuting] attorney [who represents

27-34    the state in criminal cases in the district or county court] of the

27-35    county where the action is brought, unless the district attorney or

27-36    criminal district attorney elects to provide representation; or

27-37                (2)  if the case is one in which a conflict of interest

27-38    or special circumstances exist, an attorney employed by the

27-39    department or who has contracted with the department under

27-40    Subsection (c) to provide representation [attorney general].

27-41          (b)  In a county with a population of 2,800,000 or more, in

27-42    an action under this code [title], the department shall be

27-43    represented in court by [the]:

27-44                (1)  the attorney who represents the state in civil

27-45    cases in the district or county court of the county where the

27-46    action is brought; or

27-47                (2)  if the case is one in which a conflict of interest

27-48    or special circumstances exists, an attorney employed by the

27-49    department or who has contracted with the department under

27-50    Subsection (c) to provide representation [attorney general].

27-51          (c)  The department may contract with a county attorney, a

27-52    district attorney, a criminal district attorney, the attorney

27-53    general, or a private attorney to provide reimbursement from any

27-54    available state or federal funds of the costs of representing the

27-55    department in an action under this code.

27-56          SECTION 65.  Subchapter B, Chapter 264, Family Code, is

27-57    amended by amending Section 264.106 and adding Section 264.1061 to

27-58    read as follows:

27-59          Sec. 264.106.  CONTRACTS FOR SUBSTITUTE CARE SERVICES

27-60    [CONTRACT RESIDENTIAL CARE].  (a)  The department shall:

27-61                (1)  assess the need for substitute care services

27-62    throughout the state; and

27-63                (2)  contract with substitute care providers only to

27-64    the extent necessary to meet the need for those services.

27-65          (b)  Before contracting with a substitute care provider, the

27-66    department shall determine whether:

27-67                (1)  community resources are available to support

27-68    children placed under the provider's care; and

27-69                (2)  the appropriate public school district has

 28-1    sufficient resources to support children placed under the

 28-2    provider's care if the children will attend public school.

 28-3          (c)  In addition to the requirements of Section 40.058(a),

 28-4    Human Resources Code, a contract with a substitute care provider

 28-5    must include provisions that:

 28-6                (1)  enable the department to monitor the effectiveness

 28-7    of the provider's services; and

 28-8                (2)  authorize the department to terminate the contract

 28-9    or impose sanctions for a violation of a provision of the contract

28-10    that specifies performance criteria.

28-11          (d)  In determining whether to contract with a substitute

28-12    care provider, the department shall consider the provider's

28-13    performance under any previous contract for substitute care

28-14    services between the department and the provider.

28-15          (e)  In this section, "substitute care provider" means a

28-16    person who provides residential care for children for 24 hours a

28-17    day, including:

28-18                (1)  a child-care institution, as defined by Section

28-19    42.002, Human Resources Code;

28-20                (2)  a child-placing agency, as defined by Section

28-21    42.002, Human Resources Code;

28-22                (3)  a foster group home or foster family home, as

28-23    defined by Section 42.002, Human Resources Code; and

28-24                (4)  an agency group home or agency home, as defined by

28-25    Section 42.002, Human Resources Code, other than an agency group

28-26    home, agency home, or a foster home verified or certified by the

28-27    department [make reasonable efforts to ensure that the expenditure

28-28    of appropriated funds to purchase contract residential care for

28-29    children is allocated to providers on a fixed monthly basis if:]

28-30                [(1)  the allocation is cost effective; and]

28-31                [(2)  the number, type, needs, and conditions of the

28-32    children served are reasonably constant.]

28-33          [(b)  This section does not apply to the purchase of care in

28-34    a foster family home].

28-35          Sec. 264.1061.  FOSTER PARENT PERFORMANCE.  The department

28-36    shall monitor the performance of a foster parent who does not

28-37    provide substitute care services through an entity under contract

28-38    with or licensed by the department.  The method under which

28-39    performance is monitored must include the use of objective criteria

28-40    by which the foster parent's performance may be assessed.  The

28-41    department shall include references to the criteria in a written

28-42    agreement between the department and the foster parent concerning

28-43    the foster parent's services.

28-44          SECTION 66.  Section 264.107, Family Code, is amended to read

28-45    as follows:

28-46          Sec. 264.107.  Placement of Children.  (a)  In making a

28-47    placement of a child removed from the home of the child's custodial

28-48    parent, the department shall consider placing the child in the home

28-49    of the child's noncustodial parent.

28-50          (b)  The department shall use a system for the placement of

28-51    children in contract residential care, including foster care, that

28-52    conforms to the levels of care adopted and maintained by the Health

28-53    and Human Services Commission.

28-54          (c) [(b)]  The department shall use the standard application

28-55    for the placement of children in contract residential care as

28-56    adopted and maintained by the Health and Human Services Commission.

28-57          SECTION 67.  Subchapter B, Chapter 264, Family Code, is

28-58    amended by adding Section 264.1075 to read as follows:

28-59          Sec. 264.1075.  USE OF ASSESSMENT SERVICES.  Before placing a

28-60    child in substitute care, the department shall use assessment

28-61    services provided by a child-care facility or child-placing agency

28-62    in accordance with Section 42.0425, Human Resources Code, to

28-63    determine the appropriate substitute care for the child.

28-64          SECTION 68.  Subchapter C, Chapter 264, Family Code, is

28-65    amended by adding Sections 264.206 and 264.207 to read as follows:

28-66          Sec. 264.206.  SEARCH FOR ADOPTIVE PARENTS.  (a)  The

28-67    department shall begin its efforts to locate qualified persons to

28-68    adopt a child, including persons registered with the adoptive

28-69    parent registry under Subchapter B, at the time the department's

 29-1    permanency plan for the child becomes the termination of the

 29-2    parent-child relationship.

 29-3          (b)  The department shall report to the court in which the

 29-4    department petitions for termination of the parent-child

 29-5    relationship on the child's adoptability and the department's

 29-6    search for prospective adoptive parents for the child, including

 29-7    information relating to the department's efforts to work with

 29-8    licensed child-placing agencies.

 29-9          Sec. 264.207.  DEPARTMENT PLANNING AND ACCOUNTABILITY.

29-10    (a)  The department shall adopt policies that provide for the

29-11    improvement of the department's services for children and families,

29-12    including policies that provide for conducting a home study within

29-13    four months after the date an applicant is approved for an adoption

29-14    and documenting the results of the home study within 30 days after

29-15    the date the study is completed.  The policies adopted under this

29-16    section must:

29-17                (1)  be designed to increase the accountability of the

29-18    department to individuals who receive services and to the public;

29-19    and

29-20                (2)  assure consistency of services provided by the

29-21    department in the different regions of the state.

29-22          (b)  To accomplish the goals stated in Subsection (a), the

29-23    department shall:

29-24                (1)  establish time frames for the initial screening of

29-25    families seeking to adopt children;

29-26                (2)  provide for the evaluation of the effectiveness of

29-27    the department's management-level employees in expeditiously making

29-28    permanent placements for children;

29-29                (3)  establish, as feasible, comprehensive assessment

29-30    services in various locations in the state to determine the needs

29-31    of children and families served by the department;

29-32                (4)  emphasize and centralize the monitoring and

29-33    promoting of the permanent placement of children receiving

29-34    department services;

29-35                (5)  establish goals and performance measures in the

29-36    permanent placement of children;

29-37                (6)  seek private licensed child-placing agencies to

29-38    place a child in the department's managing conservatorship who has

29-39    been available for permanent placement for more than 90 days;

29-40                (7)  provide information to private licensed

29-41    child-placing agencies concerning children under Subdivision (6);

29-42                (8)  provide financial incentives for a private

29-43    licensed child-placing agency that places a child, as defined by

29-44    Section 162.301, under Subdivision (6);

29-45                (9)  encourage foster parents to be approved by the

29-46    department as both foster parents and adoptive parents;

29-47                (10)  address failures by the department's service

29-48    regions in making permanent placements for children in a reasonable

29-49    time; and

29-50                (11)  require the department's service regions to

29-51    participate in the Texas Adoption Resources Exchange.

29-52          SECTION 69.  Subchapter B, Chapter 531, Government Code, is

29-53    amended by adding Section 531.047 to read as follows:

29-54          Sec. 531.047.  SUBSTITUTE CARE PROVIDER OUTCOME STANDARDS.

29-55    (a)  The commission, after consulting with representatives from the

29-56    Department of Protective and Regulatory Services, the Texas

29-57    Juvenile Probation Commission, and the Texas Department of Mental

29-58    Health and Mental Retardation, shall by rule adopt result-oriented

29-59    standards that a provider of substitute care services for children

29-60    under the care of the state must achieve.

29-61          (b)  A health and human services agency that purchases

29-62    substitute care services must include the result-oriented standards

29-63    as requirements in each substitute care service provider contract.

29-64          (c)  A health and human services agency may provide

29-65    information about a substitute care provider, including rates,

29-66    contracts, outcomes, and client information, to another agency that

29-67    purchases substitute care services.

29-68          SECTION 70.  (a)  Representatives from each state agency that

29-69    purchases substitute care services for children under the state's

 30-1    care shall meet to:

 30-2                (1)  assess the total need for substitute care services

 30-3    in this state; and

 30-4                (2)  develop and implement a competitive bidding

 30-5    process to purchase substitute care services.

 30-6          (b)  Except as provided by Subsection (c) of this section,

 30-7    each state agency must use the competitive bidding process created

 30-8    under Subsection (a) of this section to purchase substitute care

 30-9    services.

30-10          (c)  A state agency is not required to use the competitive

30-11    bidding process to purchase:

30-12                (1)  foster family care services;

30-13                (2)  substitute care services in a geographic area of

30-14    this state that has a shortage of service providers; or

30-15                (3)  specialized substitute care services if there is a

30-16    shortage of providers of the specialized services.

30-17          (d)  The state agency representatives shall meet and develop

30-18    the competitive bidding process for purchasing substitute care

30-19    services as soon as possible after the effective date of this Act.

30-20          (e)  Not later than September 1, 1998, the Department of

30-21    Protective and Regulatory Services shall develop and implement a

30-22    pilot program under which the department purchases substitute care

30-23    services through a competitive bidding process.  The department

30-24    must design the pilot program to produce a substitute care system

30-25    that is outcome-based and that uses the department's outcome

30-26    measures.

30-27          SECTION 71.  (a)  Sections 263.308 and 263.309, Family Code,

30-28    are repealed.

30-29          (b)  Section 42.050, Human Resources Code, as amended by

30-30    Chapter 1052, Acts of the 70th Legislature, Regular Session, 1987,

30-31    is repealed.

30-32          SECTION 72.  (a)  Except as otherwise provided by this Act,

30-33    this Act takes effect September 1, 1997.

30-34          (b)  The Board of Protective and Regulatory Services shall

30-35    adopt rules necessary to administer the changes in law made by this

30-36    Act not later than November 1, 1997.

30-37          (c)  The changes in law made by this Act in the

30-38    qualifications of, and the prohibitions applying to, members of the

30-39    Board of Protective and Regulatory Services do not affect the

30-40    entitlement of a member serving on the board immediately before

30-41    September 1, 1997, to continue to carry out the functions of the

30-42    board for the remainder of the member's term.  The changes in law

30-43    apply only to a member appointed on or after September 1, 1997.

30-44    This Act does not prohibit a person who is a member of the board on

30-45    September 1, 1997, from being reappointed to the board if the

30-46    person has the qualifications required for a member under Chapter

30-47    40, Human Resources Code, as amended by this Act.

30-48          (d)  The executive director of the Department of Protective

30-49    and Regulatory Services shall appoint the members of the strategic

30-50    technology steering committee established by Section 40.0305, Human

30-51    Resources Code, as added by this Act, not later than November 1,

30-52    1997.

30-53          (e)  Except as provided by Section 73 of this Act and

30-54    Subsection (f) of this section, the change in law made by this Act

30-55    relating to a disciplinary proceeding or contested case of the

30-56    Department of Protective and Regulatory Services applies only to a

30-57    proceeding initiated on or after the effective date of this Act.

30-58          (f)  The change in law made by this Act relating to the

30-59    imposition of a penalty or other disciplinary action on a person or

30-60    entity regulated by the Department of Protective and Regulatory

30-61    Services applies only to a violation that occurs on or after the

30-62    effective date of this Act.  A violation that occurs before the

30-63    effective date of this Act is governed by the law in effect on the

30-64    date the violation occurred, and the former law is continued in

30-65    effect for that purpose.

30-66          (g)  The change in law made by this Act relating to the

30-67    qualifications for a license issued by the Department of Protective

30-68    and Regulatory Services applies only to an application for a

30-69    license made on or after the effective date of this Act.  An

 31-1    application made before the effective date of this Act is governed

 31-2    by the law in effect on the date the application was made, and the

 31-3    former law is continued in effect for that purpose.

 31-4          (h)  The change in law made by this Act regarding the

 31-5    termination of the parent-child relationship applies only to a suit

 31-6    affecting the parent-child relationship in which termination of the

 31-7    parent-child relationship is sought filed on or after the effective

 31-8    date of this Act.  A suit affecting the parent-child relationship

 31-9    in which termination of the parent-child relationship is sought

31-10    filed before the effective date of this Act is governed by the law

31-11    in effect on the date the suit was filed, and the former law is

31-12    continued in effect for that purpose.

31-13          SECTION 73.  (a)  The change in law made by this Act relating

31-14    to a contested case hearing conducted by the State Office of

31-15    Administrative Hearings on behalf of the Department of Protective

31-16    and Regulatory Services applies only to a hearing that begins on or

31-17    after January 1, 1998.  Notwithstanding any other provision of this

31-18    Act, a hearing that begins before that date is governed by the law

31-19    in effect at the time the hearing begins, and that law is continued

31-20    in effect for that purpose.

31-21          (b)  The executive director of the Department of Protective

31-22    and Regulatory Services and the chief administrative law judge of

31-23    the State Office of Administrative Hearings may agree to transfer

31-24    contested cases pending before the Department of Protective and

31-25    Regulatory Services to the State Office of Administrative Hearings

31-26    before January 1, 1998.

31-27          SECTION 74.  Section 42.0461, Human Resources Code, as added

31-28    by this Act, applies only to an application for a license or for

31-29    authorization to expand capacity under a license filed on or after

31-30    the effective date of this Act.  An application filed before the

31-31    effective date of this Act is governed by the law in effect at the

31-32    time the application was filed, and the former law is continued in

31-33    effect for that purpose.

31-34          SECTION 75.  (a)  The change in law made by Sections 51

31-35    through 62 of this Act takes effect January 1, 1998.

31-36          (b)  Except as provided by Subsection (c) of this section,

31-37    Sections 51 through 62 of this Act apply to a pending suit

31-38    affecting the parent-child relationship regardless of whether the

31-39    suit was commenced before, on, or after the effective date of this

31-40    Act.

31-41          (c)  If the Department of Protective and Regulatory Services

31-42    has been appointed temporary managing conservator of a child before

31-43    the effective date of this Act, the court shall establish a date

31-44    for dismissal of the suit not later than the second anniversary of

31-45    the date of the next hearing conducted under Chapter 263, Family

31-46    Code, unless the court has rendered a final order before the

31-47    dismissal date.

31-48          SECTION 76.  The Health and Human Services Commission shall

31-49    adopt the rules required by Section 531.047, Government Code, as

31-50    added by this Act, not later than January 1, 1998.

31-51          SECTION 77.  An agency that purchases substitute care

31-52    services shall review the effectiveness of the result-oriented

31-53    standards adopted under Section 531.047, Government Code, as added

31-54    by this Act, and report to the governor, lieutenant governor,

31-55    speaker of the house of representatives, comptroller, and

31-56    Legislative Budget Board not later than January 31, 1999.

31-57          SECTION 78.  Not later than September 15, 1997, each agency

31-58    or subdivision of the state that inspects child-care facilities

31-59    shall submit a copy of the inspection form used by the agency or

31-60    subdivision to the Department of Protective and Regulatory Services

31-61    for the department's use in implementing Section 42.0441, Human

31-62    Resources Code, as added by this Act.

31-63          SECTION 79.  The Department of Protective and Regulatory

31-64    Services shall establish a working group to coordinate the

31-65    processing of child protection cases.  The working group shall

31-66    consist of representatives from the Office of Court Administration,

31-67    the Texas Supreme Court, and district and county attorneys'

31-68    offices.  The working group shall report its recommendations to the

31-69    Texas Supreme Court not later than September 1, 1998.  After

 32-1    considering the recommendations of the working group, the Texas

 32-2    Supreme Court shall adopt rules regarding the processing of child

 32-3    protection cases.

 32-4          SECTION 80.  If before implementing any provision of this

 32-5    Act, a state agency determines that a waiver or authorization from

 32-6    a federal agency is necessary to implement a provision, the state

 32-7    agency shall request the waiver or authorization and may delay

 32-8    implementing the provision until the waiver or authorization is

 32-9    granted.

32-10          SECTION 81.  The importance of this legislation and the

32-11    crowded condition of the calendars in both houses create an

32-12    emergency and an imperative public necessity that the

32-13    constitutional rule requiring bills to be read on three several

32-14    days in each house be suspended, and this rule is hereby suspended.

32-15                                 * * * * *