Amends TCA Title 37, Chapter 5, Part 5.

LICENSURE Present law requires an individual or entity operating a nontraditional child care agency ("agency") that serves or intends to serve children to be licensed by the department of children's services. Present law defines such an 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. Present law requires the department to develop rules for such agencies that base the continued approval of the licensing of an agency upon the safety, welfare, and best interests of the children in the care of the agency; the capability, training, and character of the individuals providing or supervising the care to the children; the quality of the methods of care and instruction provided for the children; the suitability of the facilities provided for the care of the children; the adequacy of the methods of administration and the management of the agency, the agency's personnel policies, and the financing of the agency; and the present need for the agency. Present law provides that, 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 required standards, then the department must assist in planning for the placement of the children in licensed 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. APPLICATION Present law requires an application for a license to operate such an agency to be made in writing to the department and be accompanied by a fee of $25 for the application and $100 per child that the agency is licensed to care for during the licensure period. Present law generally requires the department to issue a temporary license to an applicant that is not the renewal of an existing license if the department determines that the applicant has presented satisfactory evidence that: (1) 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; (2) The applicant and the personnel who will care for the children are capable to care for the children; (3) The applicant has the ability and intent to comply with the licensing law and rules; and (4) The applicant has obtained liability insurance of no less than $2 million. Additionally, present law requires applicants, including renewal applicants, to provide information regarding other entities operated by the applicant; and disclose all contracts and agreements, including contract or agreement amendments, with third parties through which the applicant intends to provide placement, housing, or care services for children in this state. However, the department is prohibited from issuing a temporary license for such agencies that federal law or regulations prohibit the department from licensing until all necessary licensing requirements are met. Within 90 days of the issuance of the temporary license, the department must determine if the applicant has complied with all licensing laws and rules. If the department determines that the applicant has so complied, then the department must issue an annual license. However, 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. ENROLLMENT CAP In granting a license, the department may limit the total number of children who may be enrolled in the agency regardless of whether the agency may have the physical capacity to care for more children. However, present law prohibits the department from approving a license for an 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. 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. TRANSFERABILITY Present law generally provides that a license for an agency is not transferable, and the transfer by sale or lease, or other manner, of the operation of the agency to another individual or entity voids the existing license immediately and a pending appeal involving the status of the license, and the agency is required to close immediately. If the transferee has made application for, and is granted, a temporary license, then the agency may continue operation under the direction of the new licensee. The new licensee in such circumstances must not be the transferor or an individual or entity acting on behalf of the transferor. If the department determines that an individual or entity has transferred nominal control of an agency to individuals or entities who are determined by the department to be acting on behalf of the purported transferor in order to circumvent a history of violations of the licensing law or rules or to otherwise attempt to circumvent the licensing law or rules or prior licensing actions instituted by the department, then the department may deny the issuance of a license to the applicant. However, the applicant may appeal the denial of the license. Present law prohibits the department from voiding the license of an agency, or voiding a pending appeal, solely for the reason that the agency is subject to judicial orders directing the transfer of control or management of a child care agency or its license to a receiver, trustee, administrator, or executor of an estate, or a similarly situated individual or entity. BACKGROUND CHECKS Upon adoption of a resolution by two-thirds vote of the county legislative body, a zoning authority, in determining the suitability of a request for a use of property for the establishment or alteration of an agency, may consider the criminal background of the persons or person making the request or the criminal background of the persons or person who will manage or operate the nontraditional child care agency. The authority may require the person to submit a fingerprint sample and a criminal history disclosure form. A criminal history records check conducted under this provision must be conducted by the Tennessee bureau of investigation (TBI) or the federal bureau of investigation (FBI), or both, and the results of the check must be forwarded to the authority. The authority must maintain the confidentiality of all criminal history records information received pursuant to this provision. The zoning authority is responsible for all costs associated with obtaining the criminal background information. INSPECTIONS Present law requires the department, through its duly authorized agents, to inspect, at least twice per year, without previous notice, all nontraditional child care agencies or suspected agencies. ANNUAL REPORTS Present law requires each agency to include the following in its annual report to the department: (1) The number of children who have been under the agency's care during the license period; (2) The number of children adopted or for whom care has been transferred to an individual or entity during the license period; (3) The state and county where the children were adopted or transferred; (4) The average length of stay of the children with the agency; and (5) The amount in grants and public funds received by the agency from federal, state, and local governments. CAUSE OF ACTION Present law provides that a child has a cause of action against an agency that authorizes an individual to be present on the premises of the agency and the authorized individual inflicts abuse, neglect, or sexual abuse upon the child. The attorney general and reporter may bring an action on behalf of a child against an agency and may seek damages for the benefit of the child as permitted by law. PROCEDURES FOR CHILDREN NOT SUBJECT TO THE INTERSTATE COMPACT ON THE PLACEMENT OF CHILDREN. 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, present law requires the agency to do the following: (1) Prepare a file containing minimal identification requirements of the child. The file must contain, at a minimum, the child's name; sex; height and weight; verifiable identifiers, if any; fingerprint sample; dental record or copy of the child's birth certificate; immunization record; photograph; and list of relatives, if known, and their contact information; and (2) Submit a copy of the file to the department. 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, present law requires an agency to notify the department that the child will be transported; and provide the department with identifying information as deemed appropriate by the department. The department must maintain the information in a database and provide access to that database to law enforcement and other individuals and entities as deemed appropriate by the department and in accordance with all applicable law. If the department determines that an agency has violated the provisions above, then the department may revoke the agency's license. CHANGE TO DEFINITION This bill clarifies that a nontraditional child care agency does not include a person or entity that places children in family boarding homes or foster homes.