By:  West                                             S.B. No. 1539

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     agencies that provide child care services and of child care

 1-3     administrators; 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.  Subchapter A, Chapter 42, Human Resources Code,

1-10     is amended to read as follows:

1-11                      SUBCHAPTER A.  GENERAL PROVISIONS

1-12           Sec. 42.001.  PURPOSE.  The purpose of this chapter is to

1-13     protect the health, safety, and well-being of the children of the

1-14     state who receive care [reside in child-care facilities] outside

1-15     their homes by establishing statewide minimum standards for their

1-16     safety and protection and by regulating certain child care services

1-17     [the facilities through a licensing program].  It is the policy of

1-18     the state to ensure the protection of all children under care in

1-19     regulated child-care services [facilities] and to encourage and

1-20     assist in the improvement of child-care programs.  It is also the

1-21     intent of the legislature that freedom of religion of all citizens

 2-1     is inviolate, and nothing in this chapter gives a governmental

 2-2     agency authority to regulate, control, supervise, or in any way be

 2-3     involved in the form, manner, or content of religious instruction

 2-4     or the curriculum of a school sponsored by a religious

 2-5     organization.

 2-6           Sec. 42.002.  DEFINITIONS.  In this chapter:

 2-7                 (1)  "Child" means a person under 18 years of age.

 2-8                 (2)  "Division" means the division designated by the

 2-9     department to carry out the provisions of this chapter.

2-10                 (3)  "Child-care facility" means a facility licensed,

2-11     certified or registered by the department to provide [that

2-12     provides] care, training, education, custody, treatment, or

2-13     supervision for a child who is not related by blood, marriage, or

2-14     adoption to the owner or operator of the facility, for all or part

2-15     of the 24-hour day, whether or not the facility is operated for

2-16     profit or charges for the services it offers.

2-17                 (4)  "Child-care institution" means a child-care

2-18     facility that provides care for more than 12 children for 24 hours

2-19     a day, including facilities known as children's homes, halfway

2-20     houses, residential treatment centers [camps], emergency shelters,

2-21     and therapeutic camps [training or correctional schools for

2-22     children].

2-23                 (5)  "Foster group home" means a child care facility

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

2-25                 (6)  "Foster [family] home" means a child care facility

 3-1     that provides care for not more than six children for 24 hours a

 3-2     day.

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

 3-4     provides care for more than 12 children under 14 years of age for

 3-5     less than 24 hours a day.

 3-6                 (8)  "Group day-care home" means a child care facility

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

 3-8     less than 24 hours a day.

 3-9                 (9)  "Family home" means a child care facility

3-10     registered with the department [home] that regularly provides care

3-11     for less than 24 hours a day in the caretaker's own residence for

3-12     not more than six children under 14 years of age, excluding

3-13     children related to the caretaker [the caretaker's own children],

3-14     and that provides care after school hours for not more than six

3-15     additional elementary school children, but the total number of

3-16     children in the home at any given time, including children related

3-17     to the caretaker [the caretaker's own], shall [does] not exceed 12

3-18     [at any given time].  The term does not include a home that

3-19     provides care exclusively for any number of children related to the

3-20     caretaker.

3-21                 (10)  "Agency foster group home" means a child care

3-22     facility that provides care for seven to 12 children for 24 hours a

3-23     day, [and] is used only by a licensed child-placing agency, and

3-24     that meets department standards.

3-25                 (11)  "Agency foster home" means a child care facility

 4-1     [private home] that provides care for not more than six children

 4-2     for 24 hours a day, [that] is used only by a licensed child-placing

 4-3     agency, and that meets department [division] standards.

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

 4-5     an organization, other than the natural parents or guardian of a

 4-6     child who plans for the placement of or places a child in a child

 4-7     care facility [an institution], agency foster home, agency foster

 4-8     group home or adoptive home.

 4-9                 (13)  "Facilities" includes child-care facilities and

4-10     child-placing agencies.

4-11                 (14)  "State of Texas" or "state" does not include

4-12     political subdivisions of the state.

4-13                 (15)  "Religious organization" means a church,

4-14     synagogue, or other religious institution whose purpose is to

4-15     support and serve the propagation of truly held religious beliefs.

4-16                 (16)  "Child care services" means services offered by a

4-17     licensed, certified or registered child care facility or

4-18     institution regulated under this chapter.

4-19                 (17)  "Children related to the caretaker" means

4-20     children who are the children, grandchildren, nieces, or nephews of

4-21     the caretaker, whether by affinity or consanguinity or as the

4-22     result of a relationship created by court decree.

4-23                 (18)  "Department" means the Department of Protective

4-24     and Regulatory Services.

4-25                 (19)  "Board" means the Board of Protective and

 5-1     Regulatory Services.

 5-2                 (20)  "Executive director" means the executive director

 5-3     of the Department of Protective and Regulatory Services.

 5-4           SECTION 3.  Section 42.021(b), Human Resources Code, is

 5-5     amended to read as follows:

 5-6           (b)  The executive director of the department shall appoint

 5-7     as director of the division a person who meets the qualifications

 5-8     set by the board[:]

 5-9                 [(1)  meets the qualifications required of a child-care

5-10     administrator by Chapter 43 of this code;]

5-11                 [(2)  holds a graduate degree in social science or law

5-12     and has five years' administrative experience in a field related to

5-13     child care; or]

5-14                 [(3)  has 10 years' experience in a field related to

5-15     child care, at least 5 of which must be administrative].

5-16           SECTION 4.  Subchapter C, Chapter 42, Human Resources Code,

5-17     is amended to read as follows:

5-18         SUBCHAPTER C.  REGULATION OF CERTAIN CHILD-CARE FACILITIES,

5-19                             HOMES, AND AGENCIES

5-20           Sec. 42.041.  REQUIRED LICENSE.  (a)  No person may operate a

5-21     child-care facility or child-placing agency without a license

5-22     issued by the department [division].

5-23           (b)  This section does not apply to:

5-24                 (1)  a state-operated facility;

5-25                 (2)  an agency foster home or agency foster group home;

 6-1                 (3)  a facility that is operated in connection with a

 6-2     shopping center, business, religious organization, or establishment

 6-3     where children are cared for during short periods while parents or

 6-4     persons responsible for the children are attending religious

 6-5     services, shopping, or engaging in other activities on or near the

 6-6     premises, including but not limited to retreats or classes for

 6-7     religious instruction;

 6-8                 (4)  a school or class for religious instruction that

 6-9     does not last longer than two weeks and is conducted by a religious

6-10     organization during the summer months;

6-11                 (5)  a youth camp licensed by the Texas Department of

6-12     Health;

6-13                 (6)  a facility [hospital] licensed operated, certified

6-14     or registered by another state agency [the Texas Department of

6-15     Mental Health and Mental Retardation or the Texas Department of

6-16     Health];

6-17                 (7)  an educational facility accredited by the Central

6-18     Education Agency or the Southern Association of Colleges and

6-19     Schools that operates primarily for educational purposes in grades

6-20     kindergarten and above;

6-21                 (8)  an educational facility that operates solely for

6-22     educational purposes in grades kindergarten through at least grade

6-23     two, that does not provide custodial care for more than one hour

6-24     during the hours before or after the customary school day, and that

6-25     is a member of an organization that promulgates, publishes, and

 7-1     requires compliance with health, safety, fire, and sanitation

 7-2     standards equal to standards required by state, municipal, and

 7-3     county codes;

 7-4                 (9)  a kindergarten or preschool educational program

 7-5     that is operated as part of a public school or a private school

 7-6     accredited by the Central Education Agency, that offers educational

 7-7     programs through grade six, and that does not provide custodial

 7-8     care during the hours before or after the customary school day;

 7-9                 (10)  a family home, whether registered as required by

7-10     Section 42.052 or not;

7-11                 (11)  an educational facility that is integral to and

7-12     inseparable from its sponsoring religious organization or an

7-13     educational facility both of which do not provide custodial care

7-14     for more than two hours maximum per day, and that offers

7-15     educational programs for children age five and above in one or more

7-16     of the following:  kindergarten through at least grade three,

7-17     elementary, or secondary grades;

7-18                 (12)  [an agency group home;]

7-19                 [(13)]  an emergency shelter facility providing shelter

7-20     to minor mothers who are the sole support of their natural children

7-21     under Section 32.201 [35.05], Family Code, unless the facility

7-22     would otherwise require a license as a child-care facility under

7-23     this section; [or]

7-24                 (13) [(14)]  a juvenile detention facility certified

7-25     under Section 51.12, Family Code, or Section 141.042(d) or a

 8-1     juvenile facility providing services solely for the Texas Youth

 8-2     Commission or any other correctional facility for children operated

 8-3     or regulated by a state agency other than the department, or by a

 8-4     political subdivision of the state;[.]

 8-5                 (14)  an elementary-age (ages 5-13) recreation program

 8-6     operated by a municipality provided the governing body of the

 8-7     municipality annually adopts standards of care by ordinance after a

 8-8     public hearing for such programs, that such standards are provided

 8-9     to the parents of each program participant, and that the ordinances

8-10     shall include, at a minimum, staffing ratios, minimum staff

8-11     qualifications, minimum facility, health, and safety standards, and

8-12     mechanisms for monitoring and enforcing the adopted local

8-13     standards; and further provided that parents be informed that the

8-14     program is not licensed by the state and the program may not be

8-15     advertised as a child-care facility; [or]

8-16                 (15)  an annual youth camp held in a municipality with

8-17     a population of more than 1.5 million that operates for not more

8-18     than three months and that has been operated for at least 10 years

8-19     by a nonprofit organization that provides care for the homeless; or

8-20                 (16)  a recreational program for children who are five

8-21     years of age or older that does not operate for a total of more

8-22     than 15 weeks each year.

8-23           (c)  A single license that lists addresses and the

8-24     appropriate facilities may be issued to a child-care institution

8-25     that operates noncontiguous facilities that are nearby and that are

 9-1     demonstrably a single operation as indicated by patterns of

 9-2     staffing, finance, administrative supervision, and programs.

 9-3           (d)  [A person operating or desiring to operate a child-care

 9-4     facility that is exempt from the provisions of Subsection (a) of

 9-5     this section may apply to the division for a license as provided in

 9-6     Section 42.046 of this code.  The division may not deny an exempt

 9-7     facility a license on the ground that it is exempt from Subsection

 9-8     (a) of this section.]  A facility exempt from the provisions of

 9-9     Subsection (a) of this section that desires to receive or

9-10     participate in federal or state funding shall be required to comply

9-11     with all other provisions of this chapter [Act] and with all

9-12     regulations promulgated thereunder.

9-13           (e)  The exemptions provided by Subsection (b) of this

9-14     section do not affect the authority of local, regional, or state

9-15     health department officials, the state fire marshal, or local fire

9-16     prevention officials to inspect child-care facilities.

9-17           Sec. 42.042.  Rules and Standards.  (a)  The department shall

9-18     make rules to carry out the provisions of this chapter.

9-19           (b)  The department shall conduct a comprehensive review of

9-20     all rules and standards at least every six years.  For purposes of

9-21     this subsection, the six year period begins from the conclusion of

9-22     the past review of such standards, the decision by the department

9-23     not to revise the standards, board action determining not to revise

9-24     the standards, or board action adopting new standards whichever is

9-25     later.

 10-1          (c)  The department shall provide a standard procedure for

 10-2    receiving and recording complaints [and a standard form for

 10-3    recording complaints].

 10-4          (d)  The department shall provide standard forms for

 10-5    applications and inspection reports.

 10-6          (e)  The department shall promulgate minimum standards that

 10-7    apply to registered and licensed child-care facilities regulated

 10-8    under [covered by] this chapter and that will:

 10-9                (1)  promote the health, safety, and welfare of

10-10    children attending a facility;

10-11                (2)  promote safe, comfortable, and healthy physical

10-12    facilities for children;

10-13                (3)  ensure adequate supervision of children by

10-14    capable, qualified, and healthy personnel;

10-15                (4)  ensure adequate and healthy food service where

10-16    food service is offered;

10-17                (5)  prohibit racial discrimination by child-care

10-18    facilities; and

10-19                (6)  require procedures for parental and guardian

10-20    consultation in the formulation of children's educational and

10-21    therapeutic programs;

10-22                (7)  prevent the breakdown of foster care and adoptive

10-23    placement; and

10-24                (8)  prescribe the minimum qualifications, education,

10-25    and training required for a person who operates a regulated

 11-1    facility.

 11-2          (f)  In promulgating minimum standards for child-care

 11-3    services [facilities], the department shall recognize the various

 11-4    categories of services [facilities], including services

 11-5    [facilities] offering specialized care, and the various categories

 11-6    of children and their particular needs, as well as differences in

 11-7    the organization and operation of child care facilities and

 11-8    institutions.  Standards for child-care institutions must require

 11-9    an intake study before a child is placed in an institution.  The

11-10    intake study may be conducted at a community mental health and

11-11    mental retardation center.

11-12          (g)  In promulgating minimum standards the department may

11-13    recognize and treat differently the types of services provided by

11-14    the following [child-care facilities:  child-caring institutions,

11-15    foster homes, day-care centers, group day-care homes, registered

11-16    family homes, and agency homes.]:

11-17                (1)  child-care facilities;

11-18                (2)  child-care institutions;

11-19                (3)  child placing agencies;

11-20                (4)  foster group homes;

11-21                (5)  foster homes;

11-22                (6)  day care centers;

11-23                (7)  group day-care homes;

11-24                (8)  registered family homes;

11-25                (9)  agency foster group homes; and

 12-1                (10)  agency foster homes.

 12-2          (h)  [The department shall promulgate minimum standards for

 12-3    child-placing agencies.]

 12-4          [(i)]  Before adopting minimum standards, the department

 12-5    [division] shall present the proposed standards to the State

 12-6    Advisory Committee on Child-Care Facilities for review and comment,

 12-7    and shall send a copy of the proposed standards to each licensee

 12-8    covered by the proposed standards at least 60 days before the

 12-9    standards take effect to provide the licensee an opportunity to

12-10    review and to send written suggestions to the committee [council]

12-11    and the department.

12-12          (i) [(j)]  The department may waive compliance with a minimum

12-13    standard in a specific instance if it determines that the economic

12-14    impact of compliance is sufficiently great to make compliance

12-15    impractical.

12-16          (j) [(k)]  The department may not regulate or attempt to

12-17    regulate or control the content or method of any instruction or

12-18    curriculum of a school sponsored by a religious organization.

12-19          [(l)  The department shall adopt minimum standards regulating

12-20    family homes that register with the division.  The rules must

12-21    address the minimum qualifications, education, and training

12-22    required of a person who operates a family home registered with the

12-23    division.]

12-24          [(m)  The department shall ensure that each child-care

12-25    facility that provides care for less than 24 hours a day complies

 13-1    with the appropriate minimum standards relating to staff-child

 13-2    ratios, group sizes, and square footage as those minimum standards

 13-3    existed on September 1, 1985.  The department may not enforce new

 13-4    standards in relation to staff-child ratios, group sizes, or square

 13-5    footage that are more stringent than the 1985 standards for those

 13-6    facilities.  This subsection expires September 1, 1997.]

 13-7          (k) [(n)]  In determining minimum standards for

 13-8    non-residential child-care facilities that provide care for less

 13-9    than 24 hours a day, the department shall, within available

13-10    appropriations, conduct a comprehensive cost-benefit analysis and

13-11    economic impact study that includes families and licensed

13-12    child-care providers.

13-13          (l) [(o)]  Not later than the 60th day before the date the

13-14    board adopts a revision to the minimum standards for child-care

13-15    facilities, the department shall present the revision to the

13-16    appropriate legislative oversight committees that have jurisdiction

13-17    over child-care facilities for review and comment.

13-18          Sec. 42.043.  Rules for Immunizations.  (a)  The department

13-19    shall make rules for the immunization of children in [admitted to]

13-20    facilities regulated under this chapter.

13-21          (b)  The department shall require that each child at an

13-22    appropriate age have a test for tuberculosis and be immunized

13-23    against diphtheria, tetanus, poliomyelitis, mumps, rubella, and

13-24    rubeola and against any other communicable disease as recommended

13-25    by the Texas Department of Health.  The immunization must be

 14-1    effective on the date of first entry into the facility.  However, a

 14-2    child may be provisionally admitted if the required immunizations

 14-3    have begun and are completed as rapidly as medically feasible.

 14-4          (c)  The Texas Department of Health shall make rules for the

 14-5    provisional admission of children to facilities regulated under

 14-6    this chapter and may modify or delete any of the immunizations

 14-7    listed in Subsection (b) of this section or require additional

 14-8    immunizations as a requirement for admission to a facility.

 14-9          (d)  No immunization may be required for admission to a

14-10    facility regulated under this chapter if a person applying for a

14-11    child's admission submits one of the following affidavits:

14-12                (1)  an affidavit signed by a licensed physician

14-13    stating that the immunization would be injurious to the health and

14-14    well-being of the child or a member of the child's family or

14-15    household; or

14-16                (2)  an affidavit signed by the child's parent or

14-17    guardian stating that the immunization conflicts with the tenets

14-18    and practices of a recognized religious organization of which the

14-19    applicant is an adherent or a member.

14-20          (e)  Each facility shall keep an individual immunization

14-21    record for each child admitted, and the records shall be open for

14-22    inspection by the department [division] at all reasonable times.

14-23          (f)  The Texas Department of Health shall provide the

14-24    immunizations required by this section to children in areas where

14-25    there is no local provision of these services.

 15-1          Sec. 42.044.  Inspections.  (a)  An authorized representative

 15-2    of the department [division] may visit a facility regulated under

 15-3    this chapter during operating hours to investigate, inspect, and

 15-4    evaluate.

 15-5          (b)  The department [division] shall inspect all licensed or

 15-6    certified facilities at least once a year and may inspect other

 15-7    facilities as necessary.  At least one of the annual visits must be

 15-8    unannounced and all may be unannounced.

 15-9          (c)  The department [division] must investigate a facility

15-10    regulated under this chapter when a complaint is received.  The

15-11    department [division] representative must notify the facility's

15-12    director or authorized representative or the operator of the

15-13    registered family home when a complaint is being investigated and

15-14    report in writing the results of the investigation to the director

15-15    or the director's authorized representative or the operator of the

15-16    registered family home.

15-17          (d)  The department [division] may call on political

15-18    subdivisions and governmental agencies for assistance within their

15-19    authorized fields.

15-20          Sec. 42.045.  Records.  (a)  A person who operates a licensed

15-21    or certified facility shall maintain individual child development

15-22    records, individual health records, statistical records, and

15-23    complete financial records.

15-24          (b)  A person who provides adoption services pursuant to

15-25    [operates] a child-placing agency license shall furnish information

 16-1    required by the department to allow the department to determine

 16-2    that adoption related income and disbursements are reasonable,

 16-3    appropriate and in compliance with the department's minimum

 16-4    standards [have an annual audit by a certified public accountant of

 16-5    the facility's books.  The audit must include a statement of income

 16-6    and disbursements].

 16-7          (c)  If a child-placing agency terminates operation as a

 16-8    child-placing agency, it shall, after giving notice to the

 16-9    department, transfer its files and records concerning adopted

16-10    children, their biological families, and their adoptive families to

16-11    the department or to a facility licensed by the department to place

16-12    children for adoption.

16-13          Sec. 42.046.  [LICENSE] APPLICATION.  (a)  An applicant for

16-14    registration or a license to operate a child-care facility or

16-15    child-placing agency shall submit to the department [division] the

16-16    appropriate fee authorized by this subchapter [prescribed by

16-17    Section 42.054 of this code] and a completed application on a form

16-18    provided by the department [division].

16-19          (b)  The department [division] shall supply the applicant the

16-20    application form and a copy of the appropriate minimum standards.

16-21          (c)  After receiving an application, the department

16-22    [division] shall investigate the applicant and the plan of care for

16-23    children.

16-24          (d)  The department [division] shall complete the

16-25    investigation and decide on an application within two months after

 17-1    the date the department [division] receives a completed [an]

 17-2    application.

 17-3          Sec. 42.047.  Consultations.  (a)  The department shall offer

 17-4    consultation to potential applicants, applicants, and license,

 17-5    registration and certification holders about meeting and

 17-6    maintaining standards for licensing, registering and certification

 17-7    and achieving programs of excellence in child care.

 17-8          (b)  The department shall offer consultation to prospective

 17-9    and actual users of child care facilities.

17-10          Sec. 42.048.  Advisory Opinions.  (a)  The department

17-11    [director of the division] may give an advisory opinion on whether

17-12    or not a planned service [facility] or a planned change in an

17-13    existing service [facility] complies with the department's

17-14    [division's] rules and minimum standards.

17-15          (b)  A written opinion authorized by Subsection (a) of this

17-16    section is binding on the department [division] as a declaratory

17-17    order if it is signed by the division director and the division

17-18    representative administering this chapter in a [division] region,

17-19    and if an applicant or licensee [license holder] has acted in

17-20    reliance on the opinion.

17-21          Sec. 42.049.  Licensing.  (a)  The department [division]

17-22    shall issue a license after determining that an applicant has

17-23    satisfied all requirements.

17-24          (b)  When issuing a license, the department [division] may

17-25    impose restrictions on a facility, including but not limited to the

 18-1    number of children to be served and the type of children to be

 18-2    served.

 18-3          (c)  The department [division] may grant a variance of an

 18-4    individual standard set forth in the applicable standards for good

 18-5    and just cause.

 18-6          (d)  A license holder must display a license issued under

 18-7    this chapter in a prominent place at the facility.

 18-8          (e)  A license issued under this chapter is not transferable

 18-9    and applies only to the operator and facility location stated in

18-10    the license application. A change in location or ownership

18-11    automatically revokes a license.

18-12          (f)  A license must be issued if the department [division]

18-13    determines that a facility meets all requirements.  The evaluation

18-14    shall be based on one or more visits to the facility and a review

18-15    of required forms and records.  A license is valid until revoked or

18-16    surrendered.

18-17          Sec. 42.0491.  Liability Insurance Required.  (a)  A license

18-18    holder shall maintain liability insurance coverage in the amount of

18-19    $300,000 for each occurrence of negligence.  An insurance policy or

18-20    contract required under this section must cover injury to a child

18-21    that occurs while the child is on the premises of the license

18-22    holder or in the care of the license holder.

18-23          (b)  A license holder shall file with the department

18-24    [division] a certificate or other evidence from an insurance

18-25    company showing that the license holder has an unexpired and

 19-1    uncancelled insurance policy or contract that meets the

 19-2    requirements of this section.

 19-3          (c)  Should the license holder for financial reasons or for

 19-4    lack of availability of an underwriter willing to issue a policy be

 19-5    unable to secure the insurance required under Subsection (a) or

 19-6    should the policy limits be exhausted, the license holder shall

 19-7    notify the parent or a person standing in parental relationship to

 19-8    each child for whom the license holder provides care a written

 19-9    notice that the liability coverage is not provided and there will

19-10    not be a ground for suspension or revocation of the license

19-11    holder's license under this chapter.  The license holder shall also

19-12    notify the department that the coverage is not provided and provide

19-13    the reason for same.  In no case shall the inability to secure

19-14    coverage serve to indemnify the license holder for damages due to

19-15    negligence.

19-16          (d)  The insurance policy or contract shall be maintained at

19-17    all times in an amount as required by this section.  Failure by a

19-18    license holder to renew the policy or contract or to maintain the

19-19    policy or contract in the required amount is a ground for

19-20    suspension or revocation of the license holder's license under this

19-21    chapter.

19-22          (e)  This section does not apply to a group [or registered]

19-23    day care home or registered family home.

19-24          Sec. 42.051.  Provisional License.  (a)  The department

19-25    [division] shall issue a provisional license when a facility's

 20-1    plans meet the department's licensing requirements and one of the

 20-2    following situations exists:

 20-3                (1)  the facility is not currently operating;

 20-4                (2)  the facility has relocated and has made changes in

 20-5    the type of child-care service it provides; or

 20-6                (3)  there is a change in ownership of the facility

 20-7    resulting in changes in policy and procedure or in the staff who

 20-8    have direct contact with the children.

 20-9          (b)  A provisional license is valid for six months from the

20-10    date it is issued and may be renewed for an additional six months

20-11    [is not renewable].

20-12          Sec. 42.052.  Certification and Registration.  (a)  A

20-13    state-operated child-care facility or child-placing agency must

20-14    receive certification of approval from the department [division].

20-15    The certification of approval remains valid until revoked or

20-16    surrendered.

20-17          (b)  To be certified, a facility must comply with the

20-18    department's rules and standards and any provisions of this chapter

20-19    that apply to a licensed facility of the same category.  The

20-20    operator of a certified facility or agency must display the

20-21    certification in a prominent place at the facility or agency.

20-22          (c)  A family home that provides care for three or fewer

20-23    children, excluding children related to the caretaker [the

20-24    caretaker's own children] may register with the department

20-25    [division].  A family home that provides care for four or more

 21-1    children, excluding children related to the caretaker [the

 21-2    caretaker's own children], shall [must] register with the

 21-3    department [division].  A registration remains valid until revoked

 21-4    or surrendered.  The operator of a registered home must display the

 21-5    registration in a prominent place at the home.  A person who

 21-6    provides care exclusively for any number of children related to the

 21-7    caretaker is not required to register with the department.

 21-8          (d)  To remain registered with the department [division], a

 21-9    family home must comply with the department's rules and standards

21-10    and any provision of this chapter that applies to a registered

21-11    family home.

21-12          (e)  The certification requirements of this section do not

21-13    apply to a Texas Youth Commission [Council] or Texas Juvenile

21-14    Probation Commission facility or a facility providing services

21-15    solely for the Texas Youth Commission [Council] or Texas Juvenile

21-16    Probation Commission.

21-17          (f)  A family home may not place a public advertisement that

21-18    uses the title "registered family home" or any variation of the

21-19    phrase unless the home is registered [with the division] under this

21-20    chapter.  Any public advertisement for a registered family home

21-21    which uses the title "registered family home" must contain a

21-22    provision in bold type stating:  "THIS HOME IS REGISTERED WITH THE

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

21-24    LICENSED OR REGULARLY INSPECTED."

21-25          (g)  The certification requirements of this section do not

 22-1    apply to a juvenile detention facility certified under Section

 22-2    51.12, Family Code, or Section 141.042(d).

 22-3          (h)  The department by rule may provide for denial of an

 22-4    application or renewal for registering a family home or may revoke

 22-5    a family home's registration based on the results of a background

 22-6    or criminal history check as provided by Section 42.057.

 22-7          Sec. 42.0521.  Deposit of Fees.  The fees authorized by this

 22-8    chapter and received by the department shall be deposited in the

 22-9    general revenue fund.

22-10          Sec. 42.053.  AGENCY FOSTER HOMES AND AGENCY FOSTER GROUP

22-11    HOMES.  (a)  An agency foster home or agency foster group home is

22-12    considered part of the child-placing agency that operates the

22-13    agency foster home or agency foster group home for purposes of

22-14    licensing.

22-15          (b)  The operator of a licensed agency shall display a copy

22-16    of the license in a prominent place in the agency foster home or

22-17    agency foster group home used by the agency.

22-18          (c)  An agency foster home or agency foster group home shall

22-19    comply with all provisions of this chapter and all department rules

22-20    and standards that apply to a child-care facility caring for a

22-21    similar number of children for a similar number of hours each day.

22-22          (d)  The department [division] shall revoke or suspend the

22-23    license of a child-placing agency if an agency foster home or

22-24    agency foster group home operated by the licensed agency fails to

22-25    comply with Subsection (c) of this section.

 23-1          Sec. 42.054.  Fees.  (a)  The department [division] shall

 23-2    charge a nonrefundable application fee of $35 to an applicant for

 23-3    an initial license to operate a child-care facility or a

 23-4    child-placing agency.

 23-5          (b)  The department [division] shall charge each child-care

 23-6    facility a fee of $35 for a provisional license.  The department

 23-7    [division] shall charge each child-placing agency a fee of $50 for

 23-8    a provisional license.

 23-9          (c)  The department [division] shall charge each child-care

23-10    facility an annual license fee in the amount of $35 for each

23-11    child-care facility plus $1 for each child the child-care facility

23-12    is permitted to serve.  The fee is due on the date on which the

23-13    department [division] issues the child-care facility's license and

23-14    on the anniversary of that date.

23-15          (d)  The department [division] shall charge each

23-16    child-placing agency an annual license fee of $100.  The fee is due

23-17    on the date on which the department [division] issues the

23-18    child-placing agency's license and on the anniversary of that date.

23-19          (e)  The department [division] shall charge each family home

23-20    that is registered with the department [division] an annual

23-21    registration fee of $35 to cover the department's cost in

23-22    regulating family homes.  The fee is due on the date on which the

23-23    department [division] registers the home and on the anniversary of

23-24    that date.

23-25          (f)  If a facility, agency, or home fails to pay the annual

 24-1    [license or registration] fee when due, the license or registration

 24-2    is suspended until the fee is paid.

 24-3          (g)  The provisions of Subsections (b) through (f) of this

 24-4    section do not apply to:

 24-5                (1)  licensed foster [family] homes and licensed foster

 24-6    [family] group homes;

 24-7                (2)  nonprofit facilities regulated under this chapter

 24-8    that provided 24-hour care for children in the managing

 24-9    conservatorship of the department during the 12-month period

24-10    immediately preceding the anniversary date of the facility's

24-11    license; or

24-12                (3)  facilities operated by a nonprofit corporation or

24-13    foundation that provides 24-hour residential care and does not

24-14    charge for the care provided.

24-15          Sec. 42.055.  Use of Fees.  The child-care training fund is

24-16    established as a special fund in the state treasury, and the

24-17    department [division] shall deposit fees received under this

24-18    subchapter to the credit of that fund.  The child-care training

24-19    fund may be used only to provide programs of parent education and

24-20    caretaker training designed to ensure the health, safety, and

24-21    well-being of children.  Up to three percent of the amount

24-22    collected as fees under the authority of this chapter may be used

24-23    by the department for actual costs of collecting the fees and

24-24    administering the fund.

24-25          Sec. 42.056.  Sign Posting.  (a)  Each child care facility

 25-1    shall post in a location that is conspicuous to all employees and

 25-2    customers a sign that includes:

 25-3                (1)  a description of the provisions of the [Chapter

 25-4    34,] Family Code, relating to the duty to report child abuse or

 25-5    neglect; and

 25-6                (2)  a description of the penalties for violating the

 25-7    reporting provisions of the [Chapter 34,] Family Code.

 25-8          (b)  The department by rule shall determine the design, size,

 25-9    and wording of the sign.

25-10          (c)  The department shall provide the sign to each child care

25-11    facility without charge.

25-12          (d)  A person who operates a child care facility commits an

25-13    offense if the department provides a sign to the facility as

25-14    provided by this section and the person intentionally fails to

25-15    display the sign in the facility as prescribed by this section.  An

25-16    offense under this subsection is a Class C misdemeanor.

25-17          Sec. 42.057.  REQUIRED BACKGROUND AND CRIMINAL HISTORY

25-18    CHECKS.  (a)  In accordance with rules adopted by the department,

25-19    the director, owner, or operator of a child care facility shall,

25-20    when applying to operate a child care facility and at least once

25-21    during each 24 months after receiving a licensing, certification or

25-22    registration submit to the department for use in conducting

25-23    background and criminal history checks:

25-24                (1)  the name of the director, owner, operator and each

25-25    person employed at the facility; and

 26-1                (2)  the name of each person over fourteen years of age

 26-2    who will regularly or frequently be staying or working at the

 26-3    facility while children are being provided care.

 26-4          (b)  The department shall conduct background and criminal

 26-5    history checks using:

 26-6                (1)  the information provided under Subsection (a):

 26-7                (2)  the information made available by the Department

 26-8    of Public Safety under Section 411.114, Government Code; and

 26-9                (3)  the department's records of reported abuse and

26-10    neglect.

26-11          (c)  The department by rule shall require a facility

26-12    regulated under this chapter to pay to the department a fee in an

26-13    amount not to exceed the administrative costs the department incurs

26-14    in conducting a background and criminal history check under this

26-15    section.

26-16          SECTION 5.  Subchapter D, Chapter 42, Human Resources Code,

26-17    is amended to read as follows:

26-18                          SUBCHAPTER D.  REMEDIES

26-19          Sec. 42.071.  LICENSE, CERTIFICATE OR REGISTRATION

26-20    SUSPENSION, EVALUATION, OR PROBATION.  (a)  The department

26-21    [division] may suspend the license, certificate or registration of

26-22    a facility that has temporarily ceased operation but has definite

26-23    plans for starting operations again within the time limits of the

26-24    issued license, certificate or registration.

26-25          (b)  The department [division] may suspend a [facility's]

 27-1    license, certificate or registration for a definite period rather

 27-2    than deny or revoke the license, certificate or registration if the

 27-3    department [division] finds repeated noncompliance with standards

 27-4    that do not endanger the health and safety of children.  To qualify

 27-5    for license, certificate or registration suspension under this

 27-6    subsection, a facility must suspend its operations and show that

 27-7    standards can be met within the suspension period.

 27-8          (c)  If the department [division] finds a facility is in

 27-9    repeated noncompliance with standards that do not endanger the

27-10    health and safety of children, the department [division] may

27-11    schedule the facility for evaluation or probation rather than

27-12    suspend or revoke the [facility's] license, certificate or

27-13    registration.  The department [division] shall provide notice to

27-14    the facility of the evaluation or probation and of the items of

27-15    noncompliance not later than the 10th day before the evaluation or

27-16    probation period begins.  The department [division] shall designate

27-17    a period of not less than 30 days during which the facility will

27-18    remain under evaluation.  During the evaluation or probation

27-19    period, the facility must correct the items that were in

27-20    noncompliance and report the corrections to the department

27-21    [division] for approval.

27-22          (d)  The department [division] shall revoke the license,

27-23    certificate or registration of a facility that does not comply with

27-24    standards at the end of a [license] suspension.

27-25          (e)  The department [division] may suspend or revoke the

 28-1    license, certificate or registration of a facility that does not

 28-2    correct items that were in noncompliance or that does not comply

 28-3    with required standards within the applicable evaluation or

 28-4    probation period.

 28-5          Sec. 42.072.  LICENSE, CERTIFICATE OR REGISTRATION DENIAL OR

 28-6    REVOCATION.  (a)  The department [division] may deny or revoke the

 28-7    license, certificate or registration [or certification of approval]

 28-8    of a facility that does not comply with the requirements of this

 28-9    chapter, the standards and rules of the department, or the specific

28-10    terms of the license, certificate or registration [or

28-11    certification].

28-12          (b)  The department [division] shall notify the person

28-13    operating or proposing to operate a facility of the reasons for the

28-14    denial or revocation and of the person's right to appeal the

28-15    decision within 30 days after receiving the notice.

28-16          (c)  A person who wishes to appeal a license, certificate or

28-17    registration denial or revocation shall notify the department

28-18    [director] by certified mail within 30 days after receiving the

28-19    notice required in Subsection (b) of this section.  The person

28-20    shall send a copy of the notice of appeal to the assigned

28-21    department [division] representative.

28-22          (d)  The denial or revocation of a license, certificate or

28-23    registration [or certification] and the appeal from that action are

28-24    governed by the procedure for a contested case hearing under

28-25    Chapter 2001, Government Code.

 29-1          (e)  A person whose license, certificate or registration has

 29-2    been denied or revoked may challenge the decision by filing a suit

 29-3    as prescribed in Chapter 2001, Government Code [in a district court

 29-4    of Travis County or the county in which the person's facility is

 29-5    located] within 30 days after receiving the decision.  [The trial

 29-6    shall be de novo].

 29-7          (f)  Records of the hearing shall be kept for two years after

 29-8    a decision is rendered.  On request, and at the person's own

 29-9    expense, the department [division] shall supply a copy of the

29-10    verbatim transcript of the hearing to a person appealing a license,

29-11    certificate or registration denial or revocation in district court.

29-12          (g)  [A person may continue to operate a facility during an

29-13    appeal of a license denial or revocation unless the division has

29-14    obtained injunctive relief under Section 42.074 or civil penalties

29-15    under Section 42.075 or the facility has been closed under Section

29-16    42.073.]

29-17          [(h)]  A person whose license, certificate or registration

29-18    [or certification] is revoked may not apply for any license,

29-19    certificate or registration [or certification] under this chapter

29-20    before the second anniversary of the date on which the revocation

29-21    takes effect by department or court order.

29-22          Sec. 42.073.  Emergency Suspension and Closure of a Facility

29-23    OR HOME.  (a)  The department [division] shall suspend a facility's

29-24    license or registration and[,] order the immediate closing of the

29-25    facility[, and place the children attending or residing in the

 30-1    facility elsewhere] if:

 30-2                (1)  the department [division] finds the facility is

 30-3    operating in violation of the standards prescribed by this chapter;

 30-4    and

 30-5                (2)  the violation creates an immediate threat to the

 30-6    health and safety of the children attending or residing in the

 30-7    facility.

 30-8          (b)  An order suspending a license or registration and

 30-9    closing a facility under this section is immediately effective on

30-10    the date on which the license or registration holder receives

30-11    written notice or on a later date specified in the order.

30-12          (c)  An order is valid for 10 days after the effective date

30-13    of the order.

30-14          [(d)  The suspension of a license and the closure of the

30-15    facility and the appeal from that action are governed by the

30-16    procedures for a contested case hearing under Chapter 2001,

30-17    Government Code.]

30-18          Sec. 42.074.  Injunctive Relief.  (a)  When it appears that a

30-19    person has violated, is violating, or is threatening to violate the

30-20    licensing, certification, or registration requirements of this

30-21    chapter or the department's licensing, certification, or

30-22    registration rules and standards, the department [division] may

30-23    file a suit in a district court in Travis County or in the county

30-24    where the facility is located for assessment and recovery of civil

30-25    penalties under Section 42.075 of this code, for injunctive relief,

 31-1    including a temporary restraining order, or for both injunctive

 31-2    relief and civil penalties.

 31-3          (b)  The district court shall grant the injunctive relief the

 31-4    facts may warrant.

 31-5          (c)  At the department's [division's] request, the attorney

 31-6    general or the county or district attorney of the county in which

 31-7    the facility is located shall conduct a suit in the name of the

 31-8    State of Texas for injunctive relief, to recover the civil penalty,

 31-9    or for both injunctive relief and civil penalties as authorized by

31-10    Subsection (a) of this section.

31-11          (d)  Injunctive relief provided by this section is in

31-12    addition to any other action, proceeding, or remedy authorized by

31-13    law and it shall not be necessary to allege or prove either that an

31-14    adequate remedy at law does not exist or that substantial or

31-15    irreparable damage would result from the continued violation.

31-16          (e)  Either party to such action may appeal to the appellate

31-17    court having jurisdiction of such injunction.  The department shall

31-18    not be required to give any appeal bond in any cause arising under

31-19    this Chapter.

31-20          Sec. 42.075.  Civil Penalty.  (a)  A person is subject to a

31-21    civil penalty of not less than $50 nor more than $100 for each day

31-22    of violation and for each act of violation if the person:

31-23                (1)  threatens serious harm to a child in a facility by

31-24    violating a provision of this chapter or a department rule or

31-25    standard;

 32-1                (2)  violates a provision of this chapter or a

 32-2    department rule or standard three or more times within a 12-month

 32-3    period; or

 32-4                (3)  places a public advertisement for an unlicensed

 32-5    facility or an unregistered family home.

 32-6          (b)  The civil penalty authorized by this section is

 32-7    cumulative and in addition to the criminal penalties and injunctive

 32-8    relief provided by this chapter.

 32-9          Sec. 42.076.  Criminal Penalties.  (a)  A person who operates

32-10    a child-care facility or child-placing agency without a license,

32-11    certificate or registration commits a Class B misdemeanor.

32-12          (b)  A person who places a public advertisement for a

32-13    facility that is not licensed, certified or registered under this

32-14    chapter [an unlicensed facility] commits a Class C misdemeanor.

32-15          [(c)  A person who places an advertisement for a registered

32-16    family home in violation of Section 42.052(f) of this code commits

32-17    a Class C misdemeanor.]

32-18          [(d)  It is not an offense under this section if a

32-19    professional provides legal or medical services to]:

32-20                [(1)  a parent who identifies the prospective adoptive

32-21    parent and places the child for adoption without the assistance of

32-22    the professional; or]

32-23                [(2)  a prospective adoptive parent who identifies a

32-24    parent and receives placement of a child for adoption without

32-25    assistance of the professional.]

 33-1          Sec. 42.077.  Notice of Action Against Facility.  (a)  If the

 33-2    department revokes or suspends a facility's license, certificate or

 33-3    registration the department shall publish notice of this action in

 33-4    a newspaper of general circulation in the county in which the

 33-5    facility is located.  The newspaper shall place the notice in the

 33-6    section in which advertisements for child care [day-care] services

 33-7    are normally published.

 33-8          (b)  If a person who operates a facility that has had its

 33-9    license, certificate or registration revoked or suspended later

33-10    applies for a new license, certificate or registration to operate

33-11    the same facility, the department shall charge the person an

33-12    application fee in an amount necessary to reimburse the department

33-13    for the cost of the notice relating to that facility.

33-14          (c)  The department shall pay for publication of the notice

33-15    from funds appropriated to the department for licensing and

33-16    regulating child-care services [facilities] and from appeal and

33-17    application fees collected under Subsection (b) of this section and

33-18    appropriated to the department.

33-19          (d)  A facility that has its license, certificate or

33-20    registration revoked or suspended shall mail notification of this

33-21    action by certified mail to the parents or guardian of the child

33-22    served by the facility.  The facility shall mail the notification

33-23    within five days of the effective date of the license, certificate

33-24    or registration revocation or suspension.

33-25          SECTION 6.  Section 43.001, Human Resources Code, is amended

 34-1    by adding a new Subsection (3) to read as follows:

 34-2                (3)  "Department" means the Department of Protective

 34-3    and Regulatory Services.

 34-4          SECTION 7.  Section 43.012, Human Resources Code, is amended

 34-5    to read as follows:

 34-6          Sec. 43.012.  PENALTY.  A person who serves as a child-care

 34-7    administrator without the license required by this chapter commits

 34-8    a Class C misdemeanor [and may be fined not less than $50 nor more

 34-9    than $100].

34-10          SECTION 8.  (a)  This Act takes effect September 1, 1997.

34-11          (b)  The change in law made by this Act applies only to an

34-12    offense committed on or after the effective date of this Act.  For

34-13    purposes of this subsection, an offense is committed before the

34-14    effective date of this Act if any element of the offense occurs

34-15    before that date.  An offense committed before the effective date

34-16    of this Act is covered by the law in effect when the offense was

34-17    committed, and the former law is continued in effect for that

34-18    purpose.

34-19          (c)  The change in law made by this Act applies only to a

34-20    license or registration fee due to be paid on or after the

34-21    effective date of this Act.  A license or registration fee due to

34-22    be paid before the effective date of this Act is governed by the

34-23    law in effect immediately before the effective date of this Act,

34-24    and that law is continued in effect for that purpose.

34-25          SECTION 9.  The importance of this legislation and the

 35-1    crowded condition of the calendars in both houses create an

 35-2    emergency and an imperative public necessity that the

 35-3    constitutional rule requiring bills to be read on three several

 35-4    days in each house be suspended, and this rule is hereby suspended.