Commission Can Waive Five-Year Ban On Revoked Center Operators

The text as introduced · 1,582 words

89R15959 MM-D

By: Leach
H.B. No. 5065

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of residential treatment centers,

including requirements related to public education for certain

children who reside in residential treatment centers; creating a

criminal offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 29.012(e), Education Code, is amended to

read as follows:

(e) This section does not apply to :

(1) a residential treatment facility for juveniles

established under Section 221.056, Human Resources Code ; or

(2) a residential treatment center that operates an

educational program described by Section 42.2541, Human Resources

Code .

SECTION 2. Subchapter C, Chapter 48, Education Code, is

amended by adding Section 48.1024 to read as follows:

Sec. 48.1024. RESIDENTIAL TREATMENT CENTER STUDENT

ALLOTMENT. (a) A school district that has entered into an

agreement with a residential treatment center under Section

42.2541(e), Human Resources Code, is entitled to an allotment as

determined under Subsection (b) for each student with a service

level of intense or intense plus who resides in the residential

treatment center and to whom the district provides educational

programs.

(b) The commissioner shall adopt a formula to determine the

amount of the allotment to which each school district described by

Subsection (a) is entitled. The amount of the allotment must be:

(1) proportional to the amount of time spent by the

student in an educational program provided by the district; and

(2) based on the amount the agency receives from the

Department of Family and Protective Services under Section

42.2541(f) for students who reside in a residential treatment

center and are enrolled in the district.

SECTION 3. Subchapter C, Chapter 42, Human Resources Code,

is amended by adding Section 42.0464 to read as follows:

Sec. 42.0464. REGULATION OF RESIDENTIAL TREATMENT CENTERS;

DATABASE. (a) In this section, "residential treatment center" has

the meaning assigned by Section 263.001, Family Code.

(b) The commission shall maintain a record of:

(1) the name of the sole proprietor or each partner who

owns a residential treatment center or, if the owner is a business

entity, the name of each officer responsible for the management of

the residential treatment center as determined by the executive

commissioner; and

(2) the status of each license issued to a residential

treatment center, including information regarding:

(A) the involuntary suspension or revocation of

the center's license and the date the suspension or revocation took

effect or was final under this chapter; or

(B) whether the commission refused to renew the

center's license.

(c) The commission shall include the name of each individual

described by Subsection (b)(1) who is associated with the license

in any records maintained under this section.

(d) The commission shall maintain on the commission's

Internet website a searchable database that lists each residential

treatment center, including the name of each individual or entity

that owns or is responsible for managing the center and the location

of the center.

(e) A third-party contractor or affiliate is subject to the

requirements of this section in the same manner as an individual.

(f) The commission may not issue a license to operate a

residential treatment center to any person who is associated with a

residential treatment center license before the fifth anniversary

after the date:

(1) a center operator's license is involuntarily

suspended or revoked by the commission based on a finding of a

violation of law; or

(2) a center is voluntarily closed or a contract with

the department terminated if the closure or termination occurs

during the 12 months following the date the center operator

receives notice of an investigation by the department or other

notice related to the operator's legal or regulatory compliance.

(g) Subsection (f) does not apply to an applicant for a

license to operate a residential treatment center for whom the

commission has approved an exception.

(h) If the operator of a residential treatment center closes

the center or terminates a contract with the department during the

12 months following the date the operator receives notice of an

investigation by the department or other notice related to the

operator's legal or regulatory compliance, the operator of a

residential treatment center shall disclose to the department and

the Texas Education Agency the reason the operator voluntarily

closed the center or terminated the contract.

(i) The physical location of a residential treatment center

that has been voluntarily closed by an operator as described by

Subsection (f)(2) may not be used as a location for a residential

treatment center before the third anniversary of the date the

center closed unless the commission performs a comprehensive review

of the location and provides an exception based on the results of

the review.

(j) A person commits an offense if, with the intent to

deceive, the person knowingly conceals information required under

this section or applies to the commission for a license in violation

of this section. An offense under this subsection is a Class A

misdemeanor.

(k) The commission shall establish procedures to monitor

residential treatment centers in a manner that identifies

preemptive closures described by Subsection (f)(2). The procedure

must include methods for identifying centers that require

additional review and referral to the appropriate agencies for

investigation.

SECTION 4. Section 42.251, Human Resources Code, is amended

to read as follows:

Sec. 42.251. APPLICABILITY ; DEFINITION . (a) This

subchapter applies only to a general residential operation that:

(1) provides :

(A) care for seven or more children or young

adults; and

(B) [ (2) provides ] treatment services for

children or young adults with emotional disorders ; or

(2) is a residential treatment center .

(b) In this subchapter, "residential treatment center" has

the meaning assigned by Section 263.001, Family Code.

SECTION 5. Subchapter H, Chapter 42, Human Resources Code,

is amended by adding Section 42.2521 to read as follows:

Sec. 42.2521. LOCATION OF RESIDENTIAL TREATMENT CENTER.

Notwithstanding other law, the commission may not issue or renew a

license or certificate under Subchapter C to operate or expand the

capacity of a residential treatment center that provides services

for children with a service level of intense or intense plus unless

the center is located in the attendance zone of a school district

with 15,000 or more enrolled students.

SECTION 6. Section 42.2541, Human Resources Code, is

amended by amending Subsection (b) and adding Subsections (d), (e),

(f), (g), and (h) to read as follows:

(b) The department shall :

(1) require residential treatment centers to submit a

quarterly report to the department and the Texas Education Agency

regarding the academic progress and attendance for children with a

service level of intense or intense plus who receive educational

programs provided onsite by the center; and

(2) report to the Texas Education Agency the

educational outcomes for children placed in a general residential

operation.

(d) Except as provided by Subsection (e), the department

shall require a residential treatment center that provides services

for children with a service level of intense or intense plus to

provide educational programs onsite at the center in a manner that

complies with state and federal law, including the Individuals with

Disabilities Education Act (20 U.S.C. Section 1400 et seq.). The

center must employ qualified educators, as defined by Section

5.001, Education Code, who are capable of delivering educational

programs that align with the essential knowledge and skills adopted

under Section 28.002, Education Code. A residential treatment

center that provides educational programs onsite under this

subsection is entitled to receive funding for each student under

Chapter 48, Education Code, as if the center were a school district

without a tier one local share for purposes of Section 48.266 of

that code.

(e) The department shall permit a residential treatment

center to enter into an agreement with a school district or

open-enrollment charter school that provides for children with a

service level of intense or intense plus who reside at the center to

enroll in the district or school. Except as otherwise provided by an

agreement described by this subsection, a child who resides in a

residential treatment center may not be considered a resident of

the district or geographical area served by the school in which the

center is located.

(f) The department shall allocate a proportional amount of

the reimbursement rate to which a residential treatment center that

enters into an agreement described by Subsection (e) would be

entitled to the Texas Education Agency for distribution to school

districts and open-enrollment charter schools under Section

48.1024, Education Code. The department shall calculate the amount

required under this subsection based on:

(1) the department's rate for intense or intense plus

care; and

(2) the amount of time each child who is a resident of

the center with a service level of intense or intense plus spends in

an educational program provided by a school district or

open-enrollment charter school in accordance with the agreement

described by Subsection (e).

(g) A residential treatment center may not deviate from the

requirement to provide onsite educational programs for children

with a service level of intense or intense plus under Subsection (d)

unless the Texas Education Agency reviews, approves, and documents

the deviation in the educational records for each child who is

subject to the deviation.

(h) The department shall ensure that department guidelines

related to public school enrollment reflect the requirements of

this section related to children residing in a residential

treatment center with a service level of intense or intense plus.

SECTION 7. This Act takes effect September 1, 2025.