Amends TCA Title 4; Title 5; Title 6; Title 7; Title 9; Title 37; Title 38; Title 39; Title 49; Title 50; Title 55; Title 67; Title 68 and Title 71.

ON APRIL 27, 2022, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2729, AS AMENDED. AMENDMENT #1 rewrites this bill and revises present law provisions governing child care agencies, as follows: (1) This amendment specifies licensure and other requirements for nontraditional child care agencies (as discussed below in items (6)-(10)) and defines "nontraditional child care agency" as a child care agency that provides residential child care for one or more children that must be transported across state lines to enter or leave the agency's care and whose transport across state lines is not subject to the Interstate Compact on Juveniles or the Interstate Compact on the Placement of Children. (2) This amendment requires the department of children's services, through its duly authorized agents, to inspect, at least twice per year, without previous notice, all nontraditional child care agencies or suspected nontraditional child care agencies. (3) Present law requires each child care agency to make an annual report of its work to the department. This amendment requires each nontraditional child care agency to include in its annual report to the department: (A) The number of children who have been under the agency's care during the license period; (B) The number of children adopted or for whom care has been transferred to an individual or entity during the license period; (C) The state and county where the children were adopted or transferred; (D) The average length of stay of the children with the agency; and (E) The amount in grants and public funds received by the agency from federal, state, and local governments. (4) Present law requires the department to prepare a comprehensive annual report of the status of child care agencies within the state subject to its jurisdiction, accompanied by special comments and recommendations. Under present law, the reports must be published at state expense for the information of the general assembly and for distribution to interested persons; this amendment revises this provision to instead require the department to publish the report on the department's website for the public. (5) This amendment requires the department to make a presentation of the report to the appropriate committees of the senate and the house of representatives, as determined by each respective speaker. The presentation shall describe, at a minimum, the information described above in item (3). (6) Under this amendment, an individual or entity operating a nontraditional child care agency that serves or intends to serve children must be licensed by the department as provided by the present law provisions governing child care agencies. This amendment authorizes the department to issue rules for the licensing of individuals or entities subject to this part and the enforcement of appropriate standards for the health, safety, and welfare of children under the care or supervision of those individuals or entities. The rules of the department that are in effect on July 1, 2000, will remain in effect until modified by regulatory action of the department to the extent the rules are not inconsistent with the present law provisions governing child care agencies. This amendment requires the department to develop the rules for nontraditional child care agencies and to base the continued approval of the licensing of a nontraditional child care agency, upon certain criteria, as specified in this amendment, such as the quality of the methods of care and instruction provided for the children. This amendment requires the department to provide reasonable assistance to applicants or licensees in meeting the child care standards of the department, unless the circumstances demonstrate that further assistance is not compatible with the continued safety, health, or welfare of the children in the agency's care, and that regulatory action affecting the agency's license is warranted. Costs and expenses arising from or related to meeting the child care standards of the department will be borne entirely by the applicant or licensee. If a licensee is denied the renewal of an existing license or an existing license is revoked, or if an applicant for a license cannot meet the standards, then the department must assist in planning for the placement of the children in licensed nontraditional child care agencies, or other suitable care, return them to their own homes, or make other plans as are necessary and advisable to meet the particular needs of the children involved. (7) This amendment requires the department to issue a temporary license to an applicant for a nontraditional child care agency license that is not the renewal of an existing license if the department determines that the applicant has presented satisfactory evidence that: (A) The facility that is proposed for the care of children complies with local and state building, fire, environmental, health, and safety laws and regulations; and includes separate sleeping quarters for children of different genders; (B) The applicant and the personnel who will care for the children are capable to care for the children; (C) The applicant has the ability and intent to comply with the licensing law and rules; and (D) The applicant has obtained liability insurance of no less than $2 million. (8) This amendment specifies that the department will not issue a temporary license for nontraditional child care agencies that federal law or regulations prohibit the department from licensing until all necessary licensing requirements are met. If the department determines that the conditions of the nontraditional child care agency license applicant's facility, its methods of care, or other circumstances warrant, then the department may issue a restricted license that limits the agency's authority in one or more areas of operation. This amendment states that the purpose of the temporary license is to permit the nontraditional child care agency license applicant to demonstrate to the department that it has complied with all licensing laws and rules applicable to its classification prior to the issuance of an initial annual license. Within 90 days of the issuance of the temporary license, the department will determine if the applicant has complied with all licensing laws and rules governing the nontraditional child care agency for which the application was made. If the department determines that the applicant has complied with all licensing laws and rules for the nontraditional child care agency for which the application was made, then the department shall issue an annual license. If the department determines that the conditions of the applicant's facility, its methods of care, or other circumstances warrant, then the department may issue a restricted license that limits the agency's authority in one or more areas of operation. If the department fails to issue or deny an annual license within 90 days of the granting of the temporary license, then the temporary license remains in effect, unless suspended, until a determination is made. If an annual license is denied following the issuance of a temporary license, and if a timely appeal is made of the denial of the annual license, then the temporary license remains in effect, unless suspended, until the board of review renders a decision regarding the denial of the annual license. If a temporary or annual license is denied, or an annual license is restricted, then the applicant may appeal the denial or restriction. (9) This amendment specifies that in granting a license, the department may limit the total number of children who may be enrolled in the nontraditional child care agency regardless of whether the agency may have the physical capacity to care for more children. The department will not approve a license for a nontraditional child care agency to provide care for more than 25 children during the license period that must be transported across state lines to enter the agency's care and whose transport across state lines is not subject to the Interstate Compact for Juveniles or the Interstate Compact on the Placement of Children. This amendment also establishes requirements for limited circumstances under which a license may be transferred. (10) Under this amendment, a nontraditional child care agency must pay an application fee of $25.00 and a fee of $100 per child that the agency is licensed to care for during the licensure period. Licensure application and renewal fees collected by the department must be paid into the general fund, but be earmarked for and dedicated to the department. The department must use the earmarked fees exclusively to improve child care quality in this state by funding activities that include, but are not limited to, child care provider training activities, but excluding costs associated with conducting criminal background checks. This amendment sets out provisions for criminal history records checks of persons who will manage or operate a nontraditional child care agency, to be conducted by the TBI or FBI, or both, and provides for the confidentiality of the information; and revises the present law provision for criminal history background checks for other child care agencies so that the provisions for nontraditional and other child care agencies are the same. (11) This amendment adds that a child has a cause of action against a nontraditional child care agency that authorizes an individual to be present on the premises of the child care agency and the authorized individual inflicts abuse, neglect, or sexual abuse upon the child. The attorney general may bring an action under this provision on behalf of a child and may seek damages for the benefit of the child as permitted by law. (12) This amendment adds that within 72 hours of beginning to provide care for a child who was transported across state lines to enter the agency's care and whose transport across state lines was not subject to the Interstate Compact for Juveniles or the Interstate Compact on the Placement of Children a nontraditional child care agency must prepare a file containing minimal identification requirements of the child (this amendment sets out in detail the information to be provided); and submit a copy of the file to the department in a form deemed appropriate by the department by rule. At least 10 business days prior to the transport of a child from the care of the agency to the care of an individual or entity, the nontraditional child care agency must notify the department that the child will be transported and provide the department with identifying information as deemed appropriate by the department by rule. This amendment requires the department to maintain the information in a database and to provide access to the database to law enforcement and other individuals and entities as deemed appropriate by the department by rule and in accordance with all applicable law. If the department determines that a nontraditional child care agency has violated these provisions, then the department may revoke the agency's license. (13) This amendment requires the department to notify the state board of education within three business days of issuance of a license to a facility that intends to provide care, or provides care, to children who are transported across state lines to enter the facility's care and whose transport across state lines is not subject to the Interstate Compact for Juveniles or the Interstate Compact on the Placement of Children. (14) This amendment requires the state board of education, through the department of education, to enforce standards for child care provided in facilities licensed by the department of children's services under the child care agency provisions, who are transported across state lines to enter the facility's care and whose transport across state lines is not subject to the Interstate Compact for Juveniles or the Interstate Compact on the Placement of Children. This amendment also requires the state board, through the department of education, to ensure that educational services provided in such facilities meet all attendance and academic requirements applicable to children enrolled in a public school serving K-12, as provided in applicable statutes and rules.