By: Swinford H.B. No. 1786
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to certain regulations and licensing exemptions applying
  to certain child-care programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 42.041(b), Human Resources Code, is
  amended to read as follows:
         (b)  This section does not apply to:
               (1)  a state-operated facility;
               (2)  an agency foster home or agency foster group home;
               (3)  a facility that is operated in connection with a
  shopping center, business, religious organization, or
  establishment where children are cared for during short periods
  while parents or persons responsible for the children are attending
  religious services, shopping, or engaging in other activities on or
  near the premises, including but not limited to retreats or classes
  for religious instruction;
               (4)  a school or class for religious instruction that
  does not last longer than two weeks and is conducted by a religious
  organization during the summer months;
               (5)  a youth camp licensed by the [Texas] Department of
  State Health Services;
               (6)  a facility licensed, operated, certified, or
  registered by another state agency;
               (7)  an educational facility accredited by the Texas
  Education Agency or the Southern Association of Colleges and
  Schools that operates primarily for educational purposes in grades
  kindergarten and above, an after-school program operated directly
  by an accredited educational facility, or an after-school program
  operated by another entity under contract with the educational
  facility, if the Texas Education Agency or Southern Association of
  Colleges and Schools has approved the curriculum content of the
  after-school program operated under the contract;
               (8)  an educational facility that operates solely for
  educational purposes in grades kindergarten through at least grade
  two, that does not provide custodial care for more than one hour
  during the hours before or after the customary school day, and that
  is a member of an organization that promulgates, publishes, and
  requires compliance with health, safety, fire, and sanitation
  standards equal to standards required by state, municipal, and
  county codes;
               (9)  a kindergarten or preschool educational program
  that is operated as part of a public school or a private school
  accredited by the Texas Education Agency, that offers educational
  programs through grade six, and that does not provide custodial
  care during the hours before or after the customary school day;
               (10)  a family home, whether registered or listed;
               (11)  an educational facility that is integral to and
  inseparable from its sponsoring religious organization or an
  educational facility both of which do not provide custodial care
  for more than two hours maximum per day, and that offers educational
  programs for children age five and above in one or more of the
  following: kindergarten through at least grade three, elementary,
  or secondary grades;
               (12)  an emergency shelter facility providing shelter
  to minor mothers who are the sole support of their natural children
  under Section 32.201, Family Code, unless the facility would
  otherwise require a license as a child-care facility under this
  section;
               (13)  a juvenile detention facility certified under
  Section 51.12, Family Code, or Section 141.042(d), a juvenile
  facility providing services solely for the Texas Youth Commission,
  or any other correctional facility for children operated or
  regulated by another state agency or by a political subdivision of
  the state;
               (14)  an elementary-age (ages 5-13) recreation program
  operated by a municipality provided the governing body of the
  municipality annually adopts standards of care by ordinance after a
  public hearing for such programs, that such standards are provided
  to the parents of each program participant, and that the ordinances
  shall include, at a minimum, staffing ratios, minimum staff
  qualifications, minimum facility, health, and safety standards,
  and mechanisms for monitoring and enforcing the adopted local
  standards; and further provided that parents be informed that the
  program is not licensed by the state and the program may not be
  advertised as a child-care facility; [or]
               (15)  an annual youth camp held in a municipality with a
  population of more than 1.5 million that operates for not more than
  three months and that has been operated for at least 10 years by a
  nonprofit organization that provides care for the homeless;
               (16)  a food distribution program that:
                     (A)  serves an evening meal to children two years
  of age or older; and
                     (B)  is operated by a nonprofit food bank in a
  nonprofit, religious, or educational facility for not more than two
  hours a day on regular business days; or
               (17)  an elementary-age (ages 5-13) recreational
  program operated by a nonprofit corporation that:
                     (A)  adopts standards of care, including
  standards relating to staff ratios, staff training, health, and
  safety;
                     (B)  provides a mechanism for monitoring and
  enforcing the standards and receiving complaints from parents of
  enrolled children;
                     (C)  does not advertise as a child-care facility
  or day-care center and informs parents that it is not licensed by
  the state;
                     (D)  does not collect compensation for its
  services;
                     (E)  allows parents to enroll children in and
  remove children from the program at will; and
                     (F)  conducts background checks using information
  from the Department of Public Safety for all program employees and
  volunteers who work with children.
         SECTION 2.  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 3.  This Act takes effect September 1, 2007.