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.