AN ACT

 1-1     relating to the regulation of certain facilities, homes, and

 1-2     agencies that provide child care and of child-care administrators;

 1-3     providing penalties.

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

 1-5           SECTION 1.  The heading of Chapter 42, Human Resources Code,

 1-6     is amended to read as follows:

 1-7         CHAPTER 42.  REGULATION OF CERTAIN [CHILD-CARE] FACILITIES,

 1-8            HOMES, AND AGENCIES THAT PROVIDE CHILD-CARE SERVICES

 1-9           SECTION 2.  Section 42.001, Human Resources Code, is amended

1-10     to read as follows:

1-11           Sec. 42.001.  PURPOSE.  The purpose of this chapter is to

1-12     protect the health, safety, and well-being of the children of the

1-13     state who receive care outside their homes [reside in child-care

1-14     facilities] by establishing statewide minimum standards for their

1-15     safety and protection and by regulating the provision of certain

1-16     child-care services [facilities through a licensing program].  It

1-17     is the policy of the state to ensure the protection of all children

1-18     receiving child-care services [under care in child-care facilities]

1-19     and to encourage and assist in the improvement of child-care

1-20     programs.  It is also the intent of the legislature that freedom of

1-21     religion of all citizens is inviolate, and nothing in this chapter

1-22     gives a governmental agency authority to regulate, control,

1-23     supervise, or in any way be involved in the form, manner, or

 2-1     content of religious instruction or the curriculum of a school

 2-2     sponsored by a religious organization.

 2-3           SECTION 3.  Section 42.002, Human Resources Code, is amended

 2-4     to read as follows:

 2-5           Sec. 42.002.  DEFINITIONS.  In this chapter:

 2-6                 (1)  "Child" means a person under 18 years of age.

 2-7                 (2)  "Division" means the division designated by the

 2-8     department to carry out the provisions of this chapter.

 2-9                 (3)  "Child-care facility" means a facility licensed,

2-10     certified, or registered by the department to provide assessment,

2-11     [that provides] care, training, education, custody, treatment, or

2-12     supervision for a child who is not related by blood, marriage, or

2-13     adoption to the owner or operator of the facility, for all or part

2-14     of the 24-hour day, whether or not the facility is operated for

2-15     profit or charges for the services it offers.

2-16                 (4)  "Child-care institution" means a child-care

2-17     facility that provides care for more than 12 children for 24 hours

2-18     a day, including facilities known as children's homes, halfway

2-19     houses, residential treatment centers [camps], emergency shelters,

2-20     and therapeutic camps [training or correctional schools for

2-21     children].

2-22                 (5)  "Foster group home" means a child-care facility

2-23     that provides care for 7 to 12 children for 24 hours a day.

2-24                 (6)  "Foster [family] home" means a child-care facility

2-25     that provides care for not more than six children for 24 hours a

 3-1     day.

 3-2                 (7)  "Day-care center" means a child-care facility that

 3-3     provides care for more than 12 children under 14 years of age for

 3-4     less than 24 hours a day.

 3-5                 (8)  "Group day-care home" means a child-care facility

 3-6     that provides care for 7 to 12 children under 14 years of age for

 3-7     less than 24 hours a day.

 3-8                 (9)  "Family home" means a home that [regularly]

 3-9     provides regular care in the caretaker's own residence for not more

3-10     than six children under 14 years of age, excluding [the caretaker's

3-11     own] children who are related to the caretaker, and that provides

3-12     care after school hours for not more than six additional elementary

3-13     school children, but the total number of children, including

3-14     children who are related to the caretaker [the caretaker's own,]

3-15     does not exceed 12 at any given time.  The term does not include a

3-16     home that provides care exclusively for any number of children who

3-17     are related to the caretaker.

3-18                 (10)  "Agency foster group home" means a facility that

3-19     provides care for seven to 12 children for 24 hours a day, [and] is

3-20     used only by a licensed child-placing agency, and meets department

3-21     standards.

3-22                 (11)  "Agency foster home" means a facility [private

3-23     home] that provides care for not more than six children for 24

3-24     hours a day, [that] is used only by a licensed child-placing

3-25     agency, and [that] meets department [division] standards.

 4-1                 (12)  "Child-placing agency" means a person, including

 4-2     an organization, other than the natural parents or guardian of a

 4-3     child who plans for the placement of or places a child in a

 4-4     child-care facility [an institution], agency foster home, agency

 4-5     foster group home, or adoptive home.

 4-6                 (13)  "Facilities" includes child-care facilities and

 4-7     child-placing agencies.

 4-8                 (14)  "State of Texas" or "state" does not include

 4-9     political subdivisions of the state.

4-10                 (15)  "Religious organization" means a church,

4-11     synagogue, or other religious institution whose purpose is to

4-12     support and serve the propagation of truly held religious beliefs.

4-13                 (16)  "Children who are related to the caretaker" means

4-14     children who are the children, grandchildren, siblings,

4-15     great-grandchildren, nieces, or nephews of the caretaker, whether

4-16     by affinity or consanguinity or as the result of a relationship

4-17     created by court decree.

4-18                 (17)  "Regular care" means care that is provided at

4-19     least four hours a day, three or more days a week, for more than

4-20     nine consecutive weeks.

4-21           SECTION 4.  Subsections (a) and (b), Section 42.021, Human

4-22     Resources Code, are amended to read as follows:

4-23           (a)  The department may [shall] designate a division within

4-24     the department to [regulate and license child-care facilities and

4-25     child-placing agencies.  The division shall enforce the provisions

 5-1     of this chapter and the rules and standards adopted by the

 5-2     department under this chapter and shall] carry out [other]

 5-3     responsibilities the department may delegate or assign under this

 5-4     chapter.

 5-5           (b)  The executive director of the department shall appoint

 5-6     as director of a [the] division designated under Subsection (a) a

 5-7     person who meets the qualifications set by the board[:]

 5-8                 [(1)  meets the qualifications required of a child-care

 5-9     administrator by Chapter 43;]

5-10                 [(2)  holds a graduate degree in social science or law

5-11     and has five years' administrative experience in a field related to

5-12     child care; or]

5-13                 [(3)  has 10 years' experience in a field related to

5-14     child care, at least 5 of which must be administrative].

5-15           SECTION 5.  Subsections (d), (e), and (f), Section 42.022,

5-16     Human Resources Code, are amended to read as follows:

5-17           (d)  The department [division] shall provide staff necessary

5-18     for the committee.

5-19           (e)  The committee shall review rules and minimum standards

5-20     for child-care administrators, child-care facilities, and

5-21     child-placing agencies promulgated by state agencies, and shall

5-22     advise the department, [the division,] the council, and state

5-23     agencies on problems of child-care administrators, child-care

5-24     facilities, and child-placing agencies.

5-25           (f)  The committee shall receive and review the annual report

 6-1     of the department [division].

 6-2           SECTION 6.  Subsections (a) and (b), Section 42.023, Human

 6-3     Resources Code, are amended to read as follows:

 6-4           (a)  The executive director shall prepare an annual written

 6-5     report regarding the department's [division's] activities under

 6-6     this chapter.

 6-7           (b)  The annual report shall include:

 6-8                 (1)  a report by regions of applications for licensure

 6-9     or certification, of provisional licenses issued, denied, or

6-10     revoked, of licenses issued, denied, suspended or revoked, of

6-11     emergency closures and injunctions, and of the compliance of

6-12     state-operated agencies with certification requirements;

6-13                 (2)  a summary of the amount and kind of in-service

6-14     training and other professional development opportunities provided

6-15     for department [division] staff;

6-16                 (3)  a summary of training and other professional

6-17     development opportunities offered to facilities' staffs; and

6-18                 (4)  a report of new administrative procedures, of the

6-19     number of staff and staff changes, and of plans for the coming

6-20     year.

6-21           SECTION 7.  Chapter 42, Human Resources Code, is amended by

6-22     amending Subchapters C and D to read as follows:

6-23        SUBCHAPTER C.  REGULATION OF CERTAIN [CHILD-CARE] FACILITIES,

6-24                             HOMES, AND AGENCIES

6-25           Sec. 42.041.  REQUIRED LICENSE.  (a)  No person may operate a

 7-1     child-care facility or child-placing agency without a license

 7-2     issued by the department [division].

 7-3           (b)  This section does not apply to:

 7-4                 (1)  a state-operated facility;

 7-5                 (2)  an agency foster home or agency foster group home;

 7-6                 (3)  a facility that is operated in connection with a

 7-7     shopping center, business, religious organization, or establishment

 7-8     where children are cared for during short periods while parents or

 7-9     persons responsible for the children are attending religious

7-10     services, shopping, or engaging in other activities on or near the

7-11     premises, including but not limited to retreats or classes for

7-12     religious instruction;

7-13                 (4)  a school or class for religious instruction that

7-14     does not last longer than two weeks and is conducted by a religious

7-15     organization during the summer months;

7-16                 (5)  a youth camp licensed by the Texas Department of

7-17     Health;

7-18                 (6)  a facility [hospital] licensed, operated,

7-19     certified, or registered by another state agency [the Texas

7-20     Department of Mental Health and Mental Retardation or the Texas

7-21     Department of Health];

7-22                 (7)  an educational facility accredited by the Texas

7-23     [Central] Education Agency or the Southern Association of Colleges

7-24     and Schools that operates primarily for educational purposes in

7-25     grades kindergarten and above, an after-school program operated

 8-1     directly by an accredited educational facility, or an after-school

 8-2     program operated by another entity under contract with the

 8-3     educational facility, if the Texas Education Agency or Southern

 8-4     Association of Colleges and Schools has approved the curriculum

 8-5     content of the after-school program operated under the contract;

 8-6                 (8)  an educational facility that operates solely for

 8-7     educational purposes in grades kindergarten through at least grade

 8-8     two, that does not provide custodial care for more than one hour

 8-9     during the hours before or after the customary school day, and that

8-10     is a member of an organization that promulgates, publishes, and

8-11     requires compliance with health, safety, fire, and sanitation

8-12     standards equal to standards required by state, municipal, and

8-13     county codes;

8-14                 (9)  a kindergarten or preschool educational program

8-15     that is operated as part of a public school or a private school

8-16     accredited by the Texas [Central] Education Agency, that offers

8-17     educational programs through grade six, and that does not provide

8-18     custodial care during the hours before or after the customary

8-19     school day;

8-20                 (10)  a family home, whether registered or listed as

8-21     required by Section 42.052 or not;

8-22                 (11)  an educational facility that is integral to and

8-23     inseparable from its sponsoring religious organization or an

8-24     educational facility both of which do not provide custodial care

8-25     for more than two hours maximum per day, and that offers

 9-1     educational programs for children age five and above in one or more

 9-2     of the following:  kindergarten through at least grade three,

 9-3     elementary, or secondary grades;

 9-4                 (12)  [an agency group home;]

 9-5                 [(13)]  an emergency shelter facility providing shelter

 9-6     to minor mothers who are the sole support of their natural children

 9-7     under Section 32.201 [35.05], Family Code, unless the facility

 9-8     would otherwise require a license as a child-care facility under

 9-9     this section; [or]

9-10                 (13) [(14)]  a juvenile detention facility certified

9-11     under Section 51.12, Family Code, or Section 141.042(d), [or] a

9-12     juvenile facility providing services solely for the Texas Youth

9-13     Commission, or any other correctional facility for children

9-14     operated or regulated by another state agency or by a political

9-15     subdivision of the state;[.]

9-16                 (14)  an elementary-age (ages 5-13) recreation program

9-17     operated by a municipality provided the governing body of the

9-18     municipality annually adopts standards of care by ordinance after a

9-19     public hearing for such programs, that such standards are provided

9-20     to the parents of each program participant, and that the ordinances

9-21     shall include, at a minimum, staffing ratios, minimum staff

9-22     qualifications, minimum facility, health, and safety standards, and

9-23     mechanisms for monitoring and enforcing the adopted local

9-24     standards; and further provided that parents be informed that the

9-25     program is not licensed by the state and the program may not be

 10-1    advertised as a child-care facility; or

 10-2                (15)  an annual youth camp held in a municipality with

 10-3    a population of more than 1.5 million that operates for not more

 10-4    than three months and that has been operated for at least 10 years

 10-5    by a nonprofit organization that provides care for the homeless.

 10-6          (c)  A single license that lists addresses and the

 10-7    appropriate facilities may be issued to a child-care institution

 10-8    that operates noncontiguous facilities that are nearby and that are

 10-9    demonstrably a single operation as indicated by patterns of

10-10    staffing, finance, administrative supervision, and programs.

10-11          (d)  [A person operating or desiring to operate a child-care

10-12    facility that is exempt from the provisions of Subsection (a) of

10-13    this section may apply to the division for a license as provided in

10-14    Section 42.046 of this code.  The division may not deny an exempt

10-15    facility a license on the ground that it is exempt from Subsection

10-16    (a) of this section.]  A facility exempt from the provisions of

10-17    Subsection (a) of this section that desires to receive or

10-18    participate in federal or state funding shall be required to comply

10-19    with all other provisions of this chapter [Act] and with all

10-20    regulations promulgated under this chapter [thereunder].

10-21          (e)  The exemptions provided by Subsection (b) of this

10-22    section do not affect the authority of local, regional, or state

10-23    health department officials, the state fire marshal, or local fire

10-24    prevention officials to inspect child-care facilities.

10-25          Sec. 42.042.  RULES AND STANDARDS.  (a)  The department shall

 11-1    make rules to carry out the provisions of this chapter.

 11-2          (b)  The department shall conduct a comprehensive review of

 11-3    all rules and standards at least every six years.  For purposes of

 11-4    this subsection, the six-year period begins on the latest of the

 11-5    date of:

 11-6                (1)  the conclusion of the review of the rules and

 11-7    standards;

 11-8                (2)  a decision by the department not to revise the

 11-9    rules and standards;

11-10                (3)  a decision by the board not to revise the rules

11-11    and standards; or

11-12                (4)  board action adopting new standards.

11-13          (c)  The department shall provide a standard procedure for

11-14    receiving and recording complaints [and a standard form for

11-15    recording complaints].

11-16          (d)  The department shall provide standard forms for

11-17    applications and inspection reports.

11-18          (e)  The department shall promulgate minimum standards that

11-19    apply to licensed child-care facilities and to registered family

11-20    homes covered by this chapter and that will:

11-21                (1)  promote the health, safety, and welfare of

11-22    children attending a facility or registered family home;

11-23                (2)  promote safe, comfortable, and healthy physical

11-24    facilities and registered family homes for children;

11-25                (3)  ensure adequate supervision of children by

 12-1    capable, qualified, and healthy personnel;

 12-2                (4)  ensure adequate and healthy food service where

 12-3    food service is offered;

 12-4                (5)  prohibit racial discrimination by child-care

 12-5    facilities and registered family homes; [and]

 12-6                (6)  require procedures for parental and guardian

 12-7    consultation in the formulation of children's educational and

 12-8    therapeutic programs; and

 12-9                (7)  prevent the breakdown of foster care and adoptive

12-10    placement.

12-11          (f)  In promulgating minimum standards for the provision of

12-12    child-care services [facilities], the department shall recognize

12-13    the various categories of services [facilities], including services

12-14    for [facilities offering] specialized care, [and] the various

12-15    categories of children and their particular needs, and the

12-16    differences in the organization and operation of child-care

12-17    facilities and institutions.  Standards for child-care institutions

12-18    must require an intake study before a child is placed in an

12-19    institution.  The intake study may be conducted at a community

12-20    mental health and mental retardation center.

12-21          (g)  In promulgating minimum standards the department may

12-22    recognize and treat differently the types of services provided by

12-23    the following:

12-24                (1)  registered family homes;

12-25                (2)  child-care facilities, including child-care[:

 13-1    child-caring] institutions, foster group homes, foster homes, group

 13-2    day-care homes, and day-care centers;

 13-3                (3)  child-placing agencies;

 13-4                (4)  [, group day-care homes, family day homes,

 13-5    registered family homes, and] agency foster homes; and

 13-6                (5)  agency foster group homes.

 13-7          (h)  The department shall promulgate minimum standards for

 13-8    child-placing agencies.

 13-9          (i)  Before adopting minimum standards, the department

13-10    [division] shall present the proposed standards to the State

13-11    Advisory Committee on Child-Care Facilities for review and comment,

13-12    and shall send a copy of the proposed standards to each licensee

13-13    covered by the proposed standards at least 60 days before the

13-14    standards take effect to provide the licensee an opportunity to

13-15    review and to send written suggestions to the committee [council]

13-16    and the department.

13-17          (j)  The department may waive compliance with a minimum

13-18    standard in a specific instance if it determines that the economic

13-19    impact of compliance is sufficiently great to make compliance

13-20    impractical.

13-21          (k)  The department may not regulate or attempt to regulate

13-22    or control the content or method of any instruction or curriculum

13-23    of a school sponsored by a religious organization.

13-24          (l)  In promulgating [The department shall adopt] minimum

13-25    standards for the regulation of [regulating] family homes that

 14-1    register with the department, the department [division.  The rules]

 14-2    must address the minimum qualifications, education, and training

 14-3    required of a person who operates a family home registered with the

 14-4    department [division].

 14-5          (m)  [The department shall ensure that each child-care

 14-6    facility that provides care for less than 24 hours a day complies

 14-7    with the appropriate minimum standards relating to staff-child

 14-8    ratios, group sizes, and square footage as those minimum standards

 14-9    existed on September 1, 1985.  The department may not enforce new

14-10    standards in relation to staff-child ratios, group sizes, or square

14-11    footage that are more stringent than the 1985 standards for those

14-12    facilities.  This subsection expires September 1, 1997.]

14-13          [(n)]  In determining minimum standards for nonresidential

14-14    child-care facilities that provide care for less than 24 hours a

14-15    day, the department shall, within available appropriations, conduct

14-16    a comprehensive cost-benefit analysis and economic impact study

14-17    that includes families and licensed child-care providers.

14-18          (n) [(o)]  Not later than the 60th day before the date the

14-19    board adopts a revision to the minimum standards for child-care

14-20    facilities, the department shall present the revision to the

14-21    appropriate legislative oversight committees that have jurisdiction

14-22    over child-care facilities for review and comment.

14-23          Sec. 42.043.  RULES FOR IMMUNIZATIONS.  (a)  The department

14-24    shall make rules for the immunization of children in [admitted to]

14-25    facilities regulated under this chapter.

 15-1          (b)  The department shall require that each child at an

 15-2    appropriate age have a test for tuberculosis and be immunized

 15-3    against diphtheria, tetanus, poliomyelitis, mumps, rubella, and

 15-4    rubeola and against any other communicable disease as recommended

 15-5    by the Texas Department of Health.  The immunization must be

 15-6    effective on the date of first entry into the facility.  However, a

 15-7    child may be provisionally admitted if the required immunizations

 15-8    have begun and are completed as rapidly as medically feasible.

 15-9          (c)  The Texas Department of Health shall make rules for the

15-10    provisional admission of children to facilities regulated under

15-11    this chapter and may modify or delete any of the immunizations

15-12    listed in Subsection (b) of this section or require additional

15-13    immunizations as a requirement for admission to a facility.

15-14          (d)  No immunization may be required for admission to a

15-15    facility regulated under this chapter if a person applying for a

15-16    child's admission submits one of the following affidavits:

15-17                (1)  an affidavit signed by a licensed physician

15-18    stating that the immunization would be injurious to the health and

15-19    well-being of the child or a member of the child's family or

15-20    household; or

15-21                (2)  an affidavit signed by the child's parent or

15-22    guardian stating that the immunization conflicts with the tenets

15-23    and practices of a recognized religious organization of which the

15-24    applicant is an adherent or a member.

15-25          (e)  Each regulated facility shall keep an individual

 16-1    immunization record for each child admitted, and the records shall

 16-2    be open for inspection by the department [division] at all

 16-3    reasonable times.

 16-4          (f)  The Texas Department of Health shall provide the

 16-5    immunizations required by this section to children in areas where

 16-6    there is no local provision of these services.

 16-7          Sec. 42.044.  INSPECTIONS.  (a)  An authorized representative

 16-8    of the department [division] may visit a facility regulated under

 16-9    this chapter or a registered family home during operating hours to

16-10    investigate, inspect, and evaluate.

16-11          (b)  The department [division] shall inspect all licensed or

16-12    certified facilities at least once a year and may inspect other

16-13    facilities or registered family homes as necessary.  The department

16-14    shall investigate a listed family home when the department receives

16-15    a complaint of abuse or neglect of a child, as defined by Section

16-16    261.001, Family Code.  At least one of the annual visits must be

16-17    unannounced and all may be unannounced.

16-18          (c)  The department [division] must investigate a facility

16-19    regulated under this chapter or a registered family home  when a

16-20    complaint is received.  The [division] representative of the

16-21    department must notify the operator of a registered family home or

16-22    the [facility's] director or authorized representative of a

16-23    regulated facility when a complaint is being investigated and

16-24    report in writing the results of the investigation to the family

16-25    home's operator or to the regulated facility's director or the

 17-1    director's authorized representative.

 17-2          (d)  The department [division] may call on political

 17-3    subdivisions and governmental agencies for assistance within their

 17-4    authorized fields.

 17-5          Sec. 42.045.  RECORDS.  (a)  A person who operates a licensed

 17-6    or certified facility shall maintain individual child development

 17-7    records, individual health records, statistical records, and

 17-8    complete financial records.

 17-9          (b)  A person who provides adoption services under a  license

17-10    to operate [operates] a child-placing agency shall furnish

17-11    information required by the department to determine whether

17-12    adoption related income and disbursements are reasonable,

17-13    appropriate, and in compliance with the department's minimum

17-14    standards [have an annual audit by a certified public accountant of

17-15    the facility's books.  The audit  must include a statement of

17-16    income and disbursements].

17-17          (c)  If a child-placing agency terminates operation as a

17-18    child-placing agency, it shall, after giving notice to the

17-19    department, transfer its files and records concerning adopted

17-20    children, their biological families, and their adoptive families to

17-21    the department or to a facility licensed by the department to place

17-22    children for adoption.

17-23          Sec. 42.046.  [LICENSE] APPLICATION FOR LICENSE, LISTING, OR

17-24    REGISTRATION.  (a)  An applicant for a license to operate a

17-25    child-care facility or child-placing agency or for a listing or

 18-1    registration to operate a family home shall submit to the

 18-2    department [division] the appropriate fee prescribed by Section

 18-3    42.054 of this code and a completed application on a form provided

 18-4    by the department [division].

 18-5          (b)  The department [division] shall supply the applicant the

 18-6    application form and a copy of the appropriate minimum standards,

 18-7    if applicable.

 18-8          (c)  After receiving an application, the department

 18-9    [division] shall investigate the applicant and the plan of care for

18-10    children, if applicable.

18-11          (d)  The department [division] shall complete the

18-12    investigation and decide on an application within two months after

18-13    the date the department [division] receives a completed [an]

18-14    application.

18-15          Sec. 42.047.  CONSULTATIONS.  (a)  The department shall offer

18-16    consultation to potential applicants, applicants, and license,

18-17    listing, registration, and certification holders about meeting and

18-18    maintaining standards for licensing, listing, registration, and

18-19    certification and achieving programs of excellence in child care.

18-20          (b)  The department shall offer consultation to prospective

18-21    and actual users of facilities or homes.

18-22          [Sec. 42.048.  ADVISORY OPINIONS.  (a)  The director of the

18-23    division may give an advisory opinion on whether or not a planned

18-24    facility or a planned change in an existing facility complies with

18-25    the division's rules and minimum standards.]

 19-1          [(b)  A written opinion authorized by Subsection (a) of this

 19-2    section is binding on the division as a declaratory order if it is

 19-3    signed by the division director and the division representative

 19-4    administering this chapter in a division region, and if an

 19-5    applicant or license holder has acted in reliance on the opinion.]

 19-6          Sec. 42.048 [42.049].  LICENSING.  (a)  The department

 19-7    [division] shall issue a license after determining that an

 19-8    applicant has satisfied all requirements.

 19-9          (b)  When issuing a license, the department [division] may

19-10    impose restrictions on a facility, including but not limited to the

19-11    number of children to be served and the type of children to be

19-12    served.

19-13          (c)  The department [division] may grant a variance of an

19-14    individual standard set forth in the applicable standards for good

19-15    and just cause.

19-16          (d)  A license holder must display a license issued under

19-17    this chapter in a prominent place at the facility.

19-18          (e)  A license issued under this chapter is not transferable

19-19    and applies only to the operator and facility location stated in

19-20    the license application.  A change in location or ownership

19-21    automatically revokes a license.

19-22          (f)  A license must be issued if the department [division]

19-23    determines that a facility meets all requirements.  The evaluation

19-24    shall be based on one or more visits to the facility and a review

19-25    of required forms and records.  A license is valid until revoked or

 20-1    surrendered.

 20-2          Sec. 42.049 [42.0491].  LIABILITY INSURANCE REQUIRED.  (a)  A

 20-3    license holder shall maintain liability insurance coverage in the

 20-4    amount of $300,000 for each occurrence of negligence.  An insurance

 20-5    policy or contract required under this section must cover injury to

 20-6    a child that occurs while the child is on the premises of the

 20-7    license holder or in the care of the license holder.

 20-8          (b)  A license holder shall file with the department

 20-9    [division] a certificate or other evidence from an insurance

20-10    company showing that the license holder has an unexpired and

20-11    uncancelled insurance policy or contract that meets the

20-12    requirements of this section.

20-13          (c)  Should the license holder for financial reasons or for

20-14    lack of availability of an underwriter willing to issue a policy be

20-15    unable to secure the insurance required under Subsection (a) or

20-16    should the policy limits be exhausted, the license holder shall

20-17    notify the parent or a person standing in parental relationship to

20-18    each child for whom the license holder provides care a written

20-19    notice that the liability coverage is not provided and there will

20-20    not be a ground for suspension or revocation of the license

20-21    holder's license under this chapter.  The license holder shall also

20-22    notify the department that the coverage is not provided and provide

20-23    the reason for same.  In no case shall the inability to secure

20-24    coverage serve to indemnify the license holder for damages due to

20-25    negligence.

 21-1          (d)  The insurance policy or contract shall be maintained at

 21-2    all times in an amount as required by this section.  Failure by a

 21-3    license holder to renew the policy or contract or to maintain the

 21-4    policy or contract in the required amount is a ground for

 21-5    suspension or revocation of the license holder's license under this

 21-6    chapter.

 21-7          (e)  This section does not apply to a group [or registered]

 21-8    day-care [day care] home or a listed or registered family home.

 21-9          Sec. 42.050.  LICENSE RENEWAL.  (a)  A license holder may

21-10    apply for a new license in compliance with the requirements of this

21-11    chapter and the rules promulgated by the department [division].

21-12          (b)  The application for a new license must be completed and

21-13    decided on by the department [division] before the expiration of

21-14    the license under which a facility is operating.

21-15          (c)  The department [division] shall evaluate the application

21-16    for a new license to determine if all licensing requirements are

21-17    met.  The evaluation may include a specified number of visits to

21-18    the facility and must include a review of all required forms and

21-19    records.

21-20          Sec. 42.051.  PROVISIONAL LICENSE.  (a)  The department

21-21    [division] shall issue a provisional license when a facility's

21-22    plans meet the department's licensing requirements and one of the

21-23    following situations exists:

21-24                (1)  the facility is not currently operating;

21-25                (2)  the facility has relocated and has made changes in

 22-1    the type of child-care service it provides; or

 22-2                (3)  there is a change in ownership of the facility

 22-3    resulting in changes in policy and procedure or in the staff who

 22-4    have direct contact with the children.

 22-5          (b)  A provisional license is valid for six months from the

 22-6    date it is issued and may be renewed for an additional six months

 22-7    [is not renewable].

 22-8          Sec. 42.052.  CERTIFICATION, LISTING, AND REGISTRATION.

 22-9    (a)  A state-operated child-care facility or child-placing agency

22-10    must receive certification of approval from the department

22-11    [division].  The certification of approval remains valid until

22-12    revoked or surrendered.

22-13          (b)  To be certified, a facility must comply with the

22-14    department's rules and standards and any provisions of this chapter

22-15    that apply to a licensed facility of the same category.  The

22-16    operator of a certified facility must display the certification in

22-17    a prominent place at the facility.

22-18          (c)  A family home that provides care for compensation for

22-19    three or fewer children, excluding [the caretaker's own] children

22-20    who are related to the caretaker, shall list with the department if

22-21    the home provides regular care in the caretaker's own residence.

22-22    The home may register with the department [division].

22-23          (d)  A family home that provides care for four or more

22-24    children, excluding [the caretaker's own] children who are related

22-25    to the caretaker, shall[, must] register with the department

 23-1    [division].  A family home that provides care exclusively for any

 23-2    number of children who are related to the caretaker is not required

 23-3    to be listed or registered with the department.

 23-4          (e)  A registration or listing remains valid until revoked or

 23-5    surrendered.  The operator of a registered home must display the

 23-6    registration in a prominent place at the home.

 23-7          (f) [(d)]  To remain listed or registered with the department

 23-8    [division], a family home must comply with the department's rules

 23-9    and standards, if applicable, and any provision of this chapter

23-10    that applies to a listed or registered family home.

23-11          (g) [(e)]  The certification requirements of this section do

23-12    not apply to a Texas Youth Commission [Council] facility, a Texas

23-13    Juvenile Probation Commission facility, or a facility providing

23-14    services solely for the Texas Youth Commission [Council].

23-15          (h) [(f)  A family home may not place a public advertisement

23-16    that uses the title "registered family home" or any variation of

23-17    the phrase unless the home is registered with the division under

23-18    this chapter.  Any public advertisement for a registered family

23-19    home which uses the title "registered family home" must contain a

23-20    provision in bold type stating:  "THIS HOME IS REGISTERED WITH THE

23-21    DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES BUT IS NOT

23-22    LICENSED OR INSPECTED."]

23-23          [(g)]  The certification requirements of this section do not

23-24    apply to a juvenile detention facility certified under Section

23-25    51.12, Family Code, or Section 141.042(d).

 24-1          (i)  The department shall provide to a listed family home a

 24-2    copy of the listing.  A listing must contain a provision that

 24-3    states:  "THIS HOME IS A LISTED FAMILY HOME.  IT IS NOT LICENSED OR

 24-4    REGISTERED WITH THE DEPARTMENT OF PROTECTIVE AND REGULATORY

 24-5    SERVICES.  IT HAS NOT BEEN INSPECTED AND WILL NOT BE INSPECTED."

 24-6    The operator of a listed home is not required to display the

 24-7    listing in a prominent place at the home but shall make the listing

 24-8    available for examination.  The department by rule shall provide

 24-9    for a sufficient period to allow operators of family homes to

24-10    comply with the listing requirement of this section.

24-11          (j)  The operator of a listed family home shall undergo

24-12    initial and subsequent background and criminal history checks

24-13    required under Section 42.056.

24-14          (k)  The department shall issue a listing or registration to

24-15    a family home, as appropriate, in both English and Spanish when the

24-16    most recent federal census shows that more than one-half of the

24-17    population in a municipality or in a commissioners precinct in a

24-18    county in which the family home is located is of Hispanic origin or

24-19    Spanish-speaking.

24-20          Sec. 42.0522.  PUBLIC ADVERTISING OF FAMILY HOMES.  (a)  A

24-21    family home may not place a public advertisement that uses the

24-22    title "registered family home" or any variation of that phrase

24-23    unless the home is registered under this chapter.  Any public

24-24    advertisement for a registered family home that uses the title

24-25    "registered family home" must contain a provision in bold type

 25-1    stating:  "THIS HOME IS REGISTERED WITH THE DEPARTMENT OF

 25-2    PROTECTIVE AND REGULATORY SERVICES BUT IS NOT LICENSED OR REGULARLY

 25-3    INSPECTED."

 25-4          (b)  A family home may not place a public advertisement that

 25-5    uses the title "listed family home" or any variation of that phrase

 25-6    unless the home is listed as provided by this chapter.  Any public

 25-7    advertisement for a listed family home that uses the title "listed

 25-8    family home" must contain a provision in bold type stating:  "THIS

 25-9    HOME IS A LISTED FAMILY HOME.  IT IS NOT LICENSED OR REGISTERED

25-10    WITH THE DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES.  IT HAS

25-11    NOT BEEN INSPECTED AND WILL NOT BE INSPECTED."

25-12          Sec. 42.053.  AGENCY FOSTER HOMES AND AGENCY FOSTER GROUP

25-13    HOMES.  (a)  An agency foster home or agency foster group home is

25-14    considered part of the child-placing agency that operates the

25-15    agency foster home or agency foster group home for purposes of

25-16    licensing.

25-17          (b)  The operator of a licensed agency shall display a copy

25-18    of the license in a prominent place in the agency foster home or

25-19    agency foster group home used by the agency.

25-20          (c)  An agency foster home or agency foster group home shall

25-21    comply with all provisions of this chapter and all department rules

25-22    and standards that apply to a child-care facility caring for a

25-23    similar number of children for a similar number of hours each day.

25-24          (d)  The department [division] shall revoke or suspend the

25-25    license of a child-placing agency if an agency foster home or

 26-1    agency foster group home operated by the licensed agency fails to

 26-2    comply with Subsection (c) of this section.

 26-3          [Sec. 42.054.  FEES.  (a)  The division shall charge a

 26-4    nonrefundable application fee of $25 to an applicant for an initial

 26-5    license to operate a child-care facility or child-placing agency.]

 26-6          [(b)  The division shall charge each child-care facility a

 26-7    fee of $25 for a provisional license.  The division shall charge

 26-8    each child-placing agency a fee of $50 for a provisional license.]

 26-9          [(c)  The division shall charge each child-care facility an

26-10    annual license fee in the amount of $40 for each child-care

26-11    facility plus $1 for each child the child-care facility is

26-12    permitted to serve, except that the total fee may not exceed $150.

26-13    The fee is due on the date on which the division issues the

26-14    child-care facility's license and on the anniversary of that date.]

26-15          [(d)  The division shall charge each child-placing agency an

26-16    annual license fee of $100.  The fee is due on the date on which

26-17    the division issues the child-placing agency's license and on the

26-18    anniversary of that date.]

26-19          [(e)  The division shall charge each registered family home

26-20    an annual registration fee of $15.  The fee is due on the date on

26-21    which the division registers the home and on the anniversary of

26-22    that date.]

26-23          [(f)  If a facility, agency, or home fails to pay the annual

26-24    license or registration fee when due, the license or registration

26-25    is suspended until the fee is paid.]

 27-1          [(g)  The provisions of Subsections (b) through (f) do not

 27-2    apply to:]

 27-3                [(1)  licensed foster family homes and licensed foster

 27-4    family group homes;]

 27-5                [(2)  nonprofit facilities regulated under this chapter

 27-6    that provided 24-hour care for children in the managing

 27-7    conservatorship of the department during the 12-month period

 27-8    immediately prior to the anniversary date of the facility's

 27-9    license.]

27-10          Sec. 42.054.  FEES.  (a)  The department [division] shall

27-11    charge an applicant a nonrefundable application fee of $35 [to an

27-12    applicant] for an initial license to operate a child-care facility

27-13    or a child-placing agency.

27-14          (b)  The department [division] shall charge each child-care

27-15    facility a fee of $35 for a provisional license.  The department

27-16    [division] shall charge each child-placing agency a fee of $50 for

27-17    a provisional license.

27-18          (c)  The department [division] shall charge each licensed

27-19    child-care facility an annual license fee in the amount of $35 [for

27-20    each child-care facility] plus $1 for each child the child-care

27-21    facility is permitted to serve.  The fee is due on the date on

27-22    which the department [division] issues the child-care facility's

27-23    initial license and on the anniversary of that date.

27-24          (d)  The department [division] shall charge each licensed

27-25    child-placing agency an annual license fee of $100.  The fee is due

 28-1    on the date on which the department [division] issues the

 28-2    child-placing agency's initial license and on the anniversary of

 28-3    that date.

 28-4          (e)  The department [division] shall charge each family home

 28-5    that is listed or registered with the department [division] an

 28-6    annual [registration] fee [of $35] to cover a part of the

 28-7    department's cost in regulating family homes.  The amount of the

 28-8    fee is $20 for a listed home or $35 for a registered home.  The fee

 28-9    is due on the date on which the department initially lists or

28-10    [division] registers the home and on the anniversary of that date.

28-11          (f)  If a facility, agency, or home fails to pay the annual

28-12    [license or registration] fee when due, the license, listing, or

28-13    registration, as appropriate, is suspended until the fee is paid.

28-14          (g)  The provisions of Subsections (b) through (f) of this

28-15    section do not apply to:

28-16                (1)  licensed foster [family] homes and licensed foster

28-17    [family] group homes;

28-18                (2)  nonprofit facilities regulated under this chapter

28-19    that provided 24-hour care for children in the managing

28-20    conservatorship of the department during the 12-month period

28-21    immediately preceding the anniversary date of the facility's

28-22    license; or

28-23                (3)  facilities operated by a nonprofit corporation or

28-24    foundation that provides 24-hour residential care and does not

28-25    charge for the care provided.

 29-1          Sec. 42.055.  [USE OF FEES.  The child-care training fund is

 29-2    established as a special fund in the state treasury, and the

 29-3    division shall deposit fees received under this subchapter to the

 29-4    credit of that fund.  The child-care training fund may be used only

 29-5    to provide programs of parent education and caretaker training

 29-6    designed to ensure the health, safety, and well-being of children.

 29-7    Up to three percent of the amount collected as fees under the

 29-8    authority of this chapter may be used by the department for actual

 29-9    costs of collecting the fees and administering the fund.]

29-10          [Sec. 42.056.]  SIGN POSTING.  (a)  Each child-care [child

29-11    care] facility shall post in a location that is conspicuous to all

29-12    employees and customers a sign that includes:

29-13                (1)  a description of the provisions of the [Chapter

29-14    34,] Family Code[,] relating to the duty to report child abuse or

29-15    neglect; and

29-16                (2)  a description of the penalties for violating the

29-17    reporting provisions of the [Chapter 34,] Family Code.

29-18          (b)  The department by rule shall determine the design, size,

29-19    and wording of the sign.

29-20          (c)  The department shall provide the sign to each child-care

29-21    [child care] facility without charge.

29-22          (d)  A person who operates a child-care [child care] facility

29-23    commits an offense if the department provides a sign to the

29-24    facility as provided by this section and the person intentionally

29-25    fails to display the sign in the facility as prescribed by this

 30-1    section.  An offense under this subsection is a Class C

 30-2    misdemeanor.

 30-3          Sec. 42.056.  REQUIRED BACKGROUND AND CRIMINAL HISTORY

 30-4    CHECKS.  (a)  In accordance with rules adopted by the department,

 30-5    the director, owner, or operator of a child-care facility or family

 30-6    home shall, when applying to operate a child-care facility or when

 30-7    listing or registering a family home and at least once during each

 30-8    24 months after receiving a license, listing, registration, or

 30-9    certification of approval, submit to the department for use in

30-10    conducting background and criminal history checks:

30-11                (1)  the name of the director, owner, and operator of

30-12    the facility or home, and the name of each person employed at the

30-13    facility or home; and

30-14                (2)  the name of each person 14 years of age or older

30-15    who will regularly or frequently be staying or working at the

30-16    facility or home while children are being provided care.

30-17          (b)  The department shall conduct background and criminal

30-18    history checks using:

30-19                (1)  the information provided under Subsection (a);

30-20                (2)  the information made available by the Department

30-21    of Public Safety under Section 411.114, Government Code, or by the

30-22    Federal Bureau of Investigation or other criminal justice agency

30-23    under Section 411.087, Government Code; and

30-24                (3)  the department's records of reported abuse and

30-25    neglect.

 31-1          (c)  The department by rule shall require a child-care

 31-2    facility or registered family home to pay to the department a fee

 31-3    in an amount not to exceed the administrative costs the department

 31-4    incurs in conducting a background and criminal history check under

 31-5    this section.

 31-6                          SUBCHAPTER D.  REMEDIES

 31-7          Sec. 42.071.  [LICENSE] SUSPENSION, EVALUATION, OR PROBATION

 31-8    OF LICENSE OR REGISTRATION.  (a)  The department [division] may

 31-9    suspend the license of a facility or the registration of a family

31-10    home that has temporarily ceased operation but has definite plans

31-11    for starting operations again within the time limits of the issued

31-12    license or registration.

31-13          (b)  The department [division] may suspend a facility's

31-14    license or a family home's registration for a definite period

31-15    rather than deny or revoke the license or registration if the

31-16    department [division] finds repeated noncompliance with standards

31-17    that do not endanger the health and safety of children.  To qualify

31-18    for license or registration suspension under this subsection, a

31-19    facility or family home must suspend its operations and show that

31-20    standards can be met within the suspension period.

31-21          (c)  If the department [division] finds a facility or family

31-22    home is in repeated noncompliance with standards that do not

31-23    endanger the health and safety of children, the department

31-24    [division] may schedule the facility or family home for evaluation

31-25    or probation rather than suspend or revoke the facility's license

 32-1    or the family home's registration.  The department [division] shall

 32-2    provide notice to the facility or family home of the evaluation or

 32-3    probation and of the items of noncompliance not later than the 10th

 32-4    day before the evaluation or probation period begins.  The

 32-5    department [division] shall designate a period of not less than 30

 32-6    days during which the facility or family home will remain under

 32-7    evaluation.  During the evaluation or probation period, the

 32-8    facility or family home must correct the items that were in

 32-9    noncompliance and report the corrections to the department

32-10    [division] for approval.

32-11          (d)  The department [division] shall revoke the license of a

32-12    facility or the registration of a family home that does not comply

32-13    with standards at the end of a license or registration suspension.

32-14          (e)  The department [division] may suspend or revoke the

32-15    license of a facility or the registration of a family home that

32-16    does not correct items that were in noncompliance or that does not

32-17    comply with required standards within the applicable evaluation or

32-18    probation period.

32-19          Sec. 42.072.  LICENSE, LISTING, OR REGISTRATION DENIAL,

32-20    SUSPENSION, OR REVOCATION.  (a)  The department [division] may

32-21    suspend, deny, [or] revoke, or refuse to renew the license,

32-22    listing, registration, or certification of approval of a facility

32-23    or family home that does not comply with the requirements of this

32-24    chapter, the standards and rules of the department, or the specific

32-25    terms of the license, listing, registration, or certification.  The

 33-1    department may revoke the probation of a person whose license,

 33-2    listing, or registration is suspended if the person violates a term

 33-3    of the conditions of probation.

 33-4          (b)  If the department proposes to take an action under

 33-5    Subsection (a), the person is entitled to a hearing conducted by

 33-6    the State Office of Administrative Hearings.  Proceedings for a

 33-7    disciplinary action are governed by the administrative procedure

 33-8    law, Chapter 2001, Government Code.  Rules of practice adopted by

 33-9    the board under Section 2001.004, Government Code, applicable to

33-10    the proceedings for a disciplinary action may not conflict with

33-11    rules adopted by the State Office of Administrative Hearings.

33-12          (c)  [The division shall notify the person operating or

33-13    proposing to operate a facility of the reasons for the denial or

33-14    revocation and of the person's right to appeal the decision within

33-15    30 days after receiving the notice.]

33-16          [(c)  A person who wishes to appeal a license denial or

33-17    revocation shall notify the director by certified mail within 30

33-18    days after receiving the notice required in Subsection (b) of this

33-19    section.  The person shall send a copy of the notice of appeal to

33-20    the assigned division representative.]

33-21          [(d)  The denial or revocation of a license or certification

33-22    and the appeal from that action are governed by the procedure for a

33-23    contested case hearing under Chapter 2001, Government Code.]

33-24          [(e)  A person whose license has been denied or revoked may

33-25    challenge the decision by filing a suit in a district court of

 34-1    Travis County or the county in which the person's facility is

 34-2    located within 30 days after receiving the decision.  The trial

 34-3    shall be de novo.]

 34-4          [(f)  Records of the hearing shall be kept for two years

 34-5    after a decision is rendered.  On request, and at the person's own

 34-6    expense, the division shall supply a copy of the verbatim

 34-7    transcript of the hearing to a person appealing a license denial or

 34-8    revocation in district court.]

 34-9          [(g)  A person may continue to operate a facility during an

34-10    appeal of a license denial or revocation unless the division has

34-11    obtained injunctive relief under Section 42.074 or civil penalties

34-12    under Section 42.075 or the facility has been closed under Section

34-13    42.073.]

34-14          [(h)]  A person whose license, listing, registration, or

34-15    certification is revoked may not apply for any license, listing,

34-16    registration, or certification under this chapter before the second

34-17    anniversary of the date on which the revocation takes effect by

34-18    department or court order.

34-19          (d)  The department by rule may provide for denial of an

34-20    application or renewal for a licensed facility or for listing or

34-21    registering a family home or may revoke a facility's license or a

34-22    family home's listing or registration based on the results of a

34-23    background or criminal history check.

34-24          (e)  A person may continue to operate a facility or family

34-25    home during an appeal of a license, listing, or registration denial

 35-1    or revocation unless the revocation or denial is based on a

 35-2    violation which poses a risk to the health or safety of children.

 35-3    The department shall by rule establish the violations which pose a

 35-4    risk to the health or safety of children.  The department shall

 35-5    notify the facility or family home of the violation which poses a

 35-6    risk to health or safety and that the facility or family home may

 35-7    not operate.  A person who has been notified by the department that

 35-8    the facility or home may not operate under this section may seek

 35-9    injunctive relief from a district court in Travis County or in the

35-10    county in which the facility or home is located to allow operation

35-11    during the pendency of an appeal.  The court may grant injunctive

35-12    relief against the agency's action only if the court finds that the

35-13    child-care operation does not pose a health or safety risk to

35-14    children.  A court granting injunctive relief under this subsection

35-15    shall have no other jurisdiction over an appeal of final agency

35-16    action unless conferred by Chapter 2001, Government Code.

35-17          (f)  The department shall deny an application or renewal for

35-18    listing or registering a family home or shall revoke a family

35-19    home's listing or registration if the results of a background or

35-20    criminal history check conducted by the department under Section

35-21    42.056 show that a person has been convicted of an offense under

35-22    Title 5 or 6, Penal Code, or Chapter 43, Penal Code.

35-23          Sec. 42.073.  EMERGENCY SUSPENSION AND CLOSURE OF A FACILITY

35-24    OR FAMILY HOME.  (a)  The department [division] shall suspend a

35-25    facility's license or a family home's listing or registration

 36-1    and[,] order the immediate closing of the facility or family home[,

 36-2    and place the children attending or residing in the facility

 36-3    elsewhere] if:

 36-4                (1)  the department [division] finds the facility or

 36-5    family home is operating in violation of the applicable standards

 36-6    prescribed by this chapter; and

 36-7                (2)  the violation creates an immediate threat to the

 36-8    health and safety of the children attending or residing in the

 36-9    facility or family home.

36-10          (b)  An order suspending a license, listing, or registration

36-11    and an order closing a facility or family home under this section

36-12    is immediately effective on the date on which the [license] holder

36-13    of the license, listing, or registration receives written notice or

36-14    on a later date specified in the order.

36-15          (c)  An order is valid for 10 days after the effective date

36-16    of the order.

36-17          [(d)  The suspension of a license and the closure of the

36-18    facility and the appeal from that action are governed by the

36-19    procedures for a contested case hearing under Chapter 2001,

36-20    Government Code.]

36-21          Sec. 42.074.  INJUNCTIVE RELIEF.  (a)  When it appears that a

36-22    person has violated, is violating, or is threatening to violate the

36-23    licensing, certification, listing, or registration requirements of

36-24    this chapter or the department's licensing, certification, listing,

36-25    or registration rules and standards, the department [division] may

 37-1    file a suit in a district court in Travis County or in the county

 37-2    where the facility or family home is located for assessment and

 37-3    recovery of civil penalties under Section 42.075 [of this code],

 37-4    for injunctive relief, including a temporary restraining order, or

 37-5    for both injunctive relief and civil penalties.

 37-6          (b)  The district court shall grant the injunctive relief the

 37-7    facts may warrant.

 37-8          (c)  At the department's [division's] request, the attorney

 37-9    general or the county or district attorney of the county in which

37-10    the facility or family home is located shall conduct a suit in the

37-11    name of the State of Texas for injunctive relief, to recover the

37-12    civil penalty, or for both injunctive relief and civil penalties as

37-13    authorized by Subsection (a) [of this section].

37-14          (d)  Injunctive relief provided by this section is in

37-15    addition to any other action, proceeding, or remedy authorized by

37-16    law.  It is not necessary to allege or prove in an action filed

37-17    under this section that an adequate remedy at law does not exist or

37-18    that substantial or irreparable harm would result from the

37-19    continued violation.

37-20          (e)  The department is not required to give an appeal bond in

37-21    an action arising under this section.

37-22          Sec. 42.075.  CIVIL PENALTY.  (a)  A person is subject to a

37-23    civil penalty of not less than $50 nor more than $100 for each day

37-24    of violation and for each act of violation if the person:

37-25                (1)  threatens serious harm to a child in a facility or

 38-1    family home by violating a provision of this chapter or a

 38-2    department rule or standard;

 38-3                (2)  violates a provision of this chapter or a

 38-4    department rule or standard three or more times within a 12-month

 38-5    period; or

 38-6                (3)  places a public advertisement for an unlicensed

 38-7    facility or an unlisted or unregistered family home.

 38-8          (b)  The civil penalty authorized by this section is

 38-9    cumulative and in addition to the criminal penalties and injunctive

38-10    relief provided by this chapter.

38-11          Sec. 42.076.  CRIMINAL PENALTIES.  (a)  A person who operates

38-12    a child-care facility or child-placing agency without a license

38-13    commits a Class B misdemeanor.

38-14          (b)  A person who operates a family home without a required

38-15    listing or registration commits a Class B misdemeanor.

38-16          (c)  A person who places a public advertisement for an

38-17    unlicensed facility or an unlisted or unregistered family home

38-18    commits a Class C misdemeanor.

38-19          [(c)  A person who places an advertisement for a registered

38-20    family home in violation of Section 42.052(f) of this code commits

38-21    a Class C misdemeanor.]

38-22          (d)  It is not an offense under this section if a

38-23    professional provides legal or medical services to:

38-24                (1)  a parent who identifies the prospective adoptive

38-25    parent and places the child for adoption without the assistance of

 39-1    the professional; or

 39-2                (2)  a prospective adoptive parent who identifies a

 39-3    parent and receives placement of a child for adoption without

 39-4    assistance of the professional.

 39-5          Sec. 42.077.  NOTICE OF ACTION AGAINST FACILITY OR FAMILY

 39-6    HOME.  (a)  If the department revokes or suspends a facility's

 39-7    license or a family home's listing or registration, the department

 39-8    shall publish notice of this action in a newspaper of general

 39-9    circulation in the county in which the facility or family home is

39-10    located.  The newspaper shall place the notice in the section in

39-11    which advertisements for day-care services are normally published.

39-12          (b)  If a person who operates a facility or family home that

39-13    has had its license, listing, or registration revoked or suspended

39-14    later applies for a new license, listing, or registration to

39-15    operate the same facility or family home, the department shall

39-16    charge the person an application fee in an amount necessary to

39-17    reimburse the department for the cost of the notice relating to

39-18    that facility or family home.

39-19          (c)  The department shall pay for publication of the notice

39-20    from funds appropriated to the department for licensing and

39-21    regulating child-care facilities and for listing, registering, and

39-22    regulating family homes and from appeal and application fees

39-23    collected under Subsection (b) [of this section] and appropriated

39-24    to the department.

39-25          (d)  A facility or family home that has its license, listing,

 40-1    or registration revoked or suspended shall mail notification of

 40-2    this action by certified mail to the parents or guardian of the

 40-3    child served by the facility or family home.  The facility or

 40-4    family home shall mail the notification within five days of the

 40-5    effective date of the [license] revocation or suspension of the

 40-6    license, listing, or registration.

 40-7          (e)  When the most recent federal census shows that more than

 40-8    one-half of the population in a municipality or in a commissioners

 40-9    precinct in a county in which a family home whose listing or

40-10    registration has been revoked or suspended is located is of

40-11    Hispanic origin or Spanish-speaking, the department shall publish

40-12    the notice under Subsection (a) in both English and Spanish.

40-13          SECTION 8.  Section 43.012, Human Resources Code, is amended

40-14    to read as follows:

40-15          Sec. 43.012.  PENALTY.  A person who serves as a child-care

40-16    administrator without the license required by this chapter commits

40-17    a Class C misdemeanor [and may be fined not less than $50 nor more

40-18    than $100].

40-19          SECTION 9.  Subdivision (5), Subsection (a), Section 481.134,

40-20    Health and Safety Code, is amended to read as follows:

40-21                (5)  "School" means a private or public elementary or

40-22    secondary school or a day-care center, as defined by Section

40-23    42.002, Human Resources Code.

40-24          SECTION 10.  Subsection (c), Section 46.11, Penal Code, is

40-25    amended to read as follows:

 41-1          (c)  In this section:

 41-2                (1)  "Institution[, "institution] of higher

 41-3    education[,]" and "premises[,]" [and "school"] have the meanings

 41-4    assigned by Section 481.134, Health and Safety Code.

 41-5                (2)  "School" means a private or public elementary or

 41-6    secondary school.

 41-7          SECTION 11.  (a)  This Act takes effect September 1, 1997.

 41-8          (b)  The change in law made by this Act applies only to an

 41-9    offense committed on or after the effective date of this Act.  For

41-10    purposes of this subsection, an offense is committed before the

41-11    effective date of this Act if any element of the offense occurs

41-12    before that date.  An offense committed before the effective date

41-13    of this Act is covered by the law in effect when the offense was

41-14    committed, and the former law is continued in effect for that

41-15    purpose.

41-16          (c)  The change in law made by this Act applies only to a

41-17    license or registration fee due to be paid on or after the

41-18    effective date of this Act.  A license or registration fee due to

41-19    be paid before the effective date of this Act is governed by the

41-20    law in effect immediately before the effective date of this Act,

41-21    and that law is continued in effect for that purpose.

41-22          SECTION 12.  The importance of this legislation and the

41-23    crowded condition of the calendars in both houses create an

41-24    emergency and an imperative public necessity that the

41-25    constitutional rule requiring bills to be read on three several

 42-1    days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1539 passed the Senate on

         May 2, 1997, by a viva-voce vote; and that the Senate concurred in

         House amendments on May 30, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1539 passed the House, with

         amendments, on May 28, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor