HBA-JRA H.B. 1759 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1759 By: Hupp Human Services 4/12/1999 Introduced BACKGROUND AND PURPOSE Currently, many foster children are placed in foster homes in Texas by private placing agencies licensed by the Department of Protective and Regulatory Services (department). The placement of foster children has a significant impact on a small communities with small school districts. The purpose of this bill is to increase placement agencies' responsibility for and sensitivity to the effect of placements and to the needs of the child. H.B. 1759 requires the department set a limit on the total number of children residing in foster homes, foster group homes, agency foster homes, or agency foster group homes in a county with a population of less than 20,000. This bill also prevents a child-placing agency from operating branch offices in counties not contiguous to the county in which the agency's principal place of business is located without the department's approval. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Department of Protective and Regulatory Services in SECTION 1 (Section 42.0462, Human Resources Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 42, Human Resources Code, by adding Sections 42.0462, 42.0485, and 42.0536, as follows: 42.0462. CAPACITY RESTRICTIONS FOR CERTAIN CHILD-CARE FACILITIES IN CERTAIN COUNTIES. (a) Requires the Department of Protective and Regulatory Services (department), for each county with a population of less than 20,000, to set a limit on the total number of children residing in the county at a foster home, foster group home, agency foster home, or agency foster group home that is licensed or required to be licensed by the department, operating or proposing to be operated under a certificate issued under Section 42.106 (Acceptance of Accreditation Instead of License), or verified by a child-placing agency under this chapter. (b) Requires the department, in adopting rules under this section, to ensure that the limit is proportional to the total population of the county and consider the impact on the county of the services provided by the such facilities. Prohibits the department from setting the limit for a particular county under Subsection (a) at fewer than five children. Sec. 42.0485. CAPACITY RESTRICTIONS FOR ISSUANCE OF LICENSE. Prohibits the department from issuing a license for the operation or expansion of the capacity of a foster home, foster group home, agency foster home, or agency foster group home if the limit set under Section 42.0462 for the county in which the facility is located would be exceeded by the facility's capacity. Sec. 42.0536. PROHIBITED VERIFICATION OF CERTAIN AGENCY FOSTER HOMES OR AGENCY FOSTER GROUP HOMES. Prohibits a child-placing agency from verifying an agency foster home or agency foster group home if the limit set under Section 42.0462 for the county in which the facility is located would be exceeded by the facility's capacity. SECTION 2. Amends Subchapter C, Chapter 42, Human Resources Code, by adding Section 42.0495, as follows: Sec. 42.0495. OPERATION OF BRANCH OFFICES BY CHILD-PLACING AGENCIES. (a) Defines "branch office" in this section. (b) Prohibits a child-placing agency that is licensed or required to be licensed under this chapter from operating a branch office in a county that is not contiguous to the county in which the principal place of business of the agency is located without the approval of the department. Requires the child-placing agency to conduct a public hearing on the proposed operation in accordance with the department rules after notifying the department of the date, time, and location of the hearing and publish notice of the hearing in a newspaper of general circulation in the county in which the branch office is to be located at the agency's expense before the department approves the proposed operation of a branch office under this section. (c) Sets forth the requirements for publication of the notice and the information the notice must include. (d) Requires the department to require a department representative to attend the public hearing in an official capacity for the purpose of receiving public comments on the proposed operation of the branch office. (e) Requires the department to consider the impact on the community of the proposed child-care services to be provided and the effect on opportunities for social interaction for the children proposed to be served by the agency through the branch office before approving the operation of a branch office under this section. Requires the department to prohibit a child-placing agency from operating a branch office under this section if the department determines that granting the authorization would have a significant adverse impact on the county and would limit opportunities for social interaction for the children proposed to be served by the agency through the proposed branch office. SECTION 3. Amends Section 42.106, Human Resources Code, by amending Subsection (a) and adding Subsection (d), as follows: (a) Provides that Subsection (d) provides an exception to this subsection. (d) Prohibits the department from issuing or renewing a certificate to operate under accreditation to a foster home, foster group home, agency foster home, or agency foster group home if the limit set under Section 42.0462 for the county in which the facility is located would be exceeded by the facility's capacity. SECTION 4. Amends Subchapter E, Chapter 42, Human Resources Code, by adding Section 42.112 to read as follows: Sec. 42.112. OPERATION OF BRANCH OFFICES BY CHILD-PLACING AGENCIES. Defines "branch office" in this section. Prohibits a holder of a certificate issued under Section 42.106 to operate a child-placing agency under this subchapter from operating a branch office in a county that is not contiguous to the county in which the principal place of business of the agency is located without the approval of the department. Requires the certificate holder and the department to follow the procedures prescribed by Section 42.0495 before the department is authorized to approve the proposed operation of a branch office under this section. SECTION 5. (a) Requires the department to adopt the rules required by Section 42.0462, Human Resources Code, as added by this Act, not later than January 1, 2000. (b) Provides that, except as provided by Subsection (c), the rules adopted by the department under Section 42.0462, Human Resources Code, as added by this Act, apply to a child-care facility that is being operated before, on, or after the effective date of this Act. (c) Prohibits the rules adopted under that section from requiring the relocation of a child residing in a child-care facility subject to the rules immediately before the effective date of this Act, notwithstanding Section 42.0462, Human Resources Code, as added by this Act. SECTION 6. Makes application of Sections 42.0485 and 42.0536, Human Resources Code, as added by this Act, prospective. SECTION 7. Effective date: September 1, 1999. SECTION 8. Emergency clause.