80R12146 KFF-D
 
  By: Villarreal, et al. H.B. No. 1385
 
Substitute the following for H.B. No. 1385:
 
  By:  Rose C.S.H.B. No. 1385
 
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain employer-based day-care
facilities.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Chapter 42, Human Resources Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. REGULATION OF EMPLOYER-BASED DAY-CARE FACILITIES
       Sec. 42.151.  DEFINITIONS. In this subchapter:
             (1)  "Employer-based day-care facility" means a
day-care facility that is:
                   (A)  operated by a small employer to provide care
to not more than 12 children of the employer's employees; and
                   (B)  located on the employer's premises.
             (2)  "Small employer" means a corporation,
partnership, sole proprietorship, or other legal entity that
employs fewer than 50 full-time employees.
       Sec. 42.152.  PERMIT REQUIRED.  (a)  Except as provided by
Subsection (b), a small employer may not operate an employer-based
day-care facility unless the employer holds a permit issued by the
department under this subchapter.
       (b)  A small employer is not required to obtain a permit to
operate an employer-based day-care facility under this subchapter
if the employer holds a license to operate a child-care facility
that is issued by the department under Subchapter C. An employer
that holds that license must comply with the applicable provisions
of Subchapter C, the applicable rules of the department, and any
specific terms of the license.
       (c)  Notwithstanding any other law, including Section
42.041, a small employer that holds a permit issued under this
subchapter is not required to hold a license under Subchapter C to
operate an employer-based day-care facility.
       Sec. 42.153.  APPLICATION; INITIAL INSPECTION AND
BACKGROUND AND CRIMINAL HISTORY CHECKS. (a)  The department shall
develop and implement a streamlined procedure by which a small
employer may apply for and be issued a permit to operate an
employer-based day-care facility.  The employer must submit an
application for the permit to the department on a form prescribed by
the department.
       (b)  Except as provided by Section 42.154, on receipt of a
small employer's application for a permit, the department shall:
             (1)  conduct an initial inspection of the
employer-based day-care facility to ensure that the employer is
able to comply with the provisions of this subchapter and that the
facility complies with the fire safety and sanitation standards of
the political subdivision in which the facility is located; and
             (2)  conduct a background and criminal history check on
each prospective caregiver whose name is submitted as required by
Section 42.159(a).
       (c)  The department may charge an applicant an
administrative fee in a reasonable amount that is sufficient to
cover the costs of the department in processing the application.
       (d)  The department shall process an application not later
than the 30th day after the date the department receives all of the
required information.
       Sec. 42.154.  CONVERSION OF LICENSE.  (a)  The department
shall develop and implement a procedure by which a small employer
that holds a license to operate a child-care facility that is issued
under Subchapter C before September 1, 2007, may convert the
license to a permit under this subchapter.  The procedure must
include an abbreviated application form for use by the employer in
applying for the permit.
       (b)  The department may waive the requirements under Section
42.153(b) for an initial inspection or background and criminal
history checks with respect to a facility operated by a small
employer seeking to convert a license to a permit under this section
if the department determines that previously conducted inspections
or background and criminal history checks, as applicable, are
sufficient to ensure the safety of children receiving care at the
facility.
       Sec. 42.155.  PARENT OR GUARDIAN WITHIN IMMEDIATE VICINITY.
An employer-based day-care facility operating under this
subchapter may provide care only for a child whose parent or
guardian:
             (1)  is an employee of the small employer to which the
permit to operate the facility was issued;
             (2)  works within the same building in which the
facility is located; and
             (3)  is away from that building only for limited
periods, as defined by department rules, during the hours the child
is receiving care.
       Sec. 42.156.  CAREGIVER-TO-CHILD RATIO.  An employer-based
day-care facility operating under this subchapter shall maintain a
caregiver-to-child ratio of at least one caregiver to every four
children receiving care.
       Sec. 42.157.  MINIMUM STANDARDS. The department shall
encourage an employer-based day-care facility operating under this
subchapter to comply with the minimum standards applicable to a
child-care facility licensed under Subchapter C.
       Sec. 42.158.  CAREGIVER QUALIFICATIONS. A caregiver
employed by an employer-based day-care facility operating under
this subchapter must:
             (1)  be at least 18 years of age;
             (2)  have received a high school diploma or its
equivalent, as determined by the department;
             (3)  receive at least the minimum training required for
an employee of a licensed day-care center as prescribed by
department rules in accordance with Sections 42.042(p) and 42.0421;
             (4)  have a Child Development Associate or Certified
Child-Care Professional credential or an equivalent credential, as
determined by the department; and
             (5)  not have been precluded from providing direct care
or having direct access to a child by the department based on the
results of a background and criminal history check conducted under
Section 42.159.
       Sec. 42.159.  BACKGROUND AND CRIMINAL HISTORY CHECKS
REQUIRED.  (a)  In accordance with rules adopted by the executive
commissioner, a small employer shall, when applying for a permit
under this subchapter and at least once during each 24 months after
receiving that permit, submit to the department for use in
conducting background and criminal history checks:
             (1)  the name of any director of the employer-based
day-care facility and the name of each caregiver employed at the
facility to provide care to children; and
             (2)  the name of each person 14 years of age or older
who will regularly or frequently be staying or working at the
facility while children are being provided care.
       (b)  The small employer shall also submit to the department
for use in conducting background and criminal history checks the
name of each prospective caregiver who will provide care to
children at the facility or other prospective employee who will
have direct access to those children.
       (c)  The department shall conduct background and criminal
history checks using:
             (1)  the information provided under Subsection (a) or
(b), as applicable;
             (2)  the information made available by the Department
of Public Safety under Section 411.114, Government Code, or by the
Federal Bureau of Investigation or other criminal justice agency
under Section 411.087, Government Code; and
             (3)  the department's records of reported abuse and
neglect.
       (d)  For purposes of Sections 411.114 and 411.087,
Government Code:
             (1)  a small employer that applies for a permit is
considered an applicant for a license under this chapter; and
             (2)  an employer-based day-care facility operating
under a permit issued under this subchapter is considered a
child-care facility licensed under this chapter.
       (e)  The department shall require the small employer to pay
to the department a fee in an amount not to exceed the
administrative costs the department incurs in conducting a
background and criminal history check under this section.
       Sec. 42.160.  APPLICABILITY OF OTHER LAW. Except as
otherwise provided by this subchapter, an employer-based day-care
facility operating under this subchapter is not a child-care
facility, as defined by Section 42.002, and the provisions of this
chapter and the department's rules that apply to a child-care
facility licensed under Subchapter C do not apply to an
employer-based day-care facility.
       Sec. 42.161.  REPORTING OF INCIDENTS AND VIOLATIONS. An
employer-based day-care facility operating under this subchapter
and each employee of that facility are subject to the reporting
requirements of Section 42.063 to the same extent a licensed
child-care facility and employees of licensed child-care
facilities are subject to that section.
       Sec. 42.162.  AUTHORITY TO CONDUCT LIMITED INSPECTIONS. (a)  
The department may inspect an employer-based day-care facility
operating under this subchapter if the department receives a
complaint or report of child abuse or neglect alleged to have
occurred at the facility.
       (b)  If the department inspects an employer-based day-care
facility as authorized by this section, the department may require
the small employer operating the facility to take appropriate
corrective action the department determines necessary to comply
with the requirements of this subchapter and to ensure the health
and safety of children receiving care at the facility. The
department may continue to inspect the facility until corrective
action is taken and for a reasonable time after that action is taken
to ensure continued compliance.
       (c)  The department may charge a small employer issued a
permit under this subchapter a reasonable fee for the cost of
services provided by the department in formulating, monitoring, and
implementing a corrective action plan under this section.
       Sec. 42.163.  SUSPENSION, DENIAL, OR REVOCATION. (a)  The
department may suspend, deny, or revoke a permit issued to a small
employer under this subchapter if the employer does not comply with
the provisions of this subchapter or any applicable department
rules.
       (b)  The department may refuse to issue a permit under this
subchapter to a small employer that had its authorization to
operate a child-care facility issued under another subchapter
revoked, suspended, or not renewed for a reason relating to child
health or safety as determined by the department.
       (c)  An employer-based day-care facility is subject to the
emergency suspension of its permit to operate and to closure under
Section 42.073 to the same extent and in the same manner as a
licensed child-care facility is subject to that section.
       Sec. 42.164.  EXPIRATION. (a)  This subchapter expires
September 1, 2009.
       (b)  A small employer operating an employer-based day-care
facility under this subchapter may not continue to operate the
facility after the date this subchapter expires as provided by
Subsection (a) unless the small employer applies for and is issued a
license to operate a child-care facility under this chapter.
       SECTION 2.  This Act takes effect September 1, 2007.