HB 5065

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
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 29.012(e), Education Code, is amended to
(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
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
(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
(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
(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
(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
(1)  a center operator's license is involuntarily
suspended or revoked by the commission based on a finding of a
(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
(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
(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
SECTION 4.  Section 42.251, Human Resources Code, is amended
Sec. 42.251.  APPLICABILITY; DEFINITION.  (a)  This
subchapter applies only to a general residential operation that:
(A)  care for seven or more children or young
(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:
(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
(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
(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
(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
(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
(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
(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.