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.