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.