Licensing Policy and Procedures Handbook Revision September 2012

This revision of the Licensing Policy and Procedures Handbook was published on September 4, 2012. Summaries of new or revised items are provided below.

Maternity Homes

The Entry Date Field in the CLASS Chronology

Controlling Persons

Monitoring Controlling Persons During Inspections

Records on Controlling Persons

2000 Handling Inquiries About the Licensing Process and Exemptions

3000 Application and Issuance

Maternity Homes (PATS 5417)

The items below are revised to delete language that refers to maternity homes as residential child care facilities. The revision is required by SB 1178, Section 13 (82nd Legislature). See:

1122 Licensing Statutes

1123.1 Chapters in the Texas Administrative Code Applicable to Licensing

1142 Types of Residential Child Care

2220 Permits Required for Residential Child Care

5221 Licensed Operations – Fee Chart

Definitions of Terms

Appendix 1000-2: Organizing Licensing Records

Appendix 2000-4: Decision Guide: Is the Care Being Provided Subject to Regulation?

Additional references to maternity homes will be deleted from policies on controlling persons when 3000 Application and Issuance, 4000 Inspections, and 7000 Actions and Remedies are revised.

Display of Revisions With Changes Highlighted (Word Document)

The Entry Date Field in the CLASS Chronology (PATS 5417)

The appendix below is revised to clarify that when manually entering a chronology in CLASS, the Entry Date field must reflect the date of the activity, not the date of the entry. See:

Appendix 1000-2: Organizing Licensing Records

Display of Revisions With Changes Highlighted (Word Document)

Controlling Persons

The items below are revised to implement policy related to controlling persons passed during the 82nd Legislative Session.

Display of Revisions with Changes Highlighted (Word Document)

See:

5400 Controlling Person

5410 Definitions of Terms Related to Controlling Persons

5411 Definition of Controlling Person

5411.1 Persons Who Are Ineligible to Be a Controlling Person

5412 Definition of a Match for Controlling Persons

5420 Determining the Eligibility of a Controlling Person

5421 Form 2760 Controlling Person Form

5421.1 When an Applicant or Operation Completes Form 2760 Controlling Person

5421.2 Evaluating Form 2760 Controlling Person for Completeness

5421.21 Refusal to Provide a Social Security Number

5422 Searching for a Controlling Person in the AARS System and Documenting the Results

5422.1 If a Controlling Person Is Listed in the AARS System

5423 Searching for and Adding a Controlling Person Record in CLASS

5423.1 Associating a Controlling Person With an Existing Record in CLASS

5423.2 Adding a New Record for a Controlling Person in CLASS

5424 Determining and Documenting the Eligibility of a Controlling Person

5424.1 Resolving Matches Found in the AARS System

5424.2 Eligibility to Receive a Permit or Be a Controlling Person After a Match Is Resolved

5424.3 Documenting the Eligibility of a Controlling Person by Updating the Status in CLASS

5424.31 Entering the Reason for Rejecting a Controlling Person

5424.32 Entering the Reason for Withdrawing a Controlling Person

5425 Notifying an Operation or Controlling Person About a Person's Eligibility as a Controlling Person

5425.1 Notifying a Controlling Person About Eligibility

5425.2 Notifying an Operation About an Ineligible Controlling Person

5425.21 Following Up With an Operation That Does Not Return the Operation Action Form

5430 Additional Duties of Inspectors in Relation to Controlling Persons

7000 Voluntary Actions and Remedial Actions

7110 Notifying an Operation When Licensing Takes Remedial Action

7120 Documenting Voluntary Actions and Remedial Actions in CLASS and IMPACT

7620 Criteria for Taking Adverse Action

7621 Circumstances That May Call for Adverse Action

7630 Taking Adverse Action

7631 Notice of Intent to Deny, Revoke, or Suspend

7631.1 Content of the Notification of Intent Letter

7631.2 Notifying an Operation About an Adverse Action When the Operation Has Been on Probation or Suspension

7631.3 Notifying an Operation About an Adverse Action When There Is Risk to the Health or Safety of Children

7631.4 The Operation’s Requirements for Notifying the Public About an Adverse Action

7631.5 Notifying an Operation About the Right to Request an Administrative Review

7631.6 Notifying an Operation About the Restrictions on Reapplying for a Permit

7631.7 Notifying an Operation About Restrictions on Controlling Persons

7631.8 Authorizing and Delivering a Notification Letter (CLASS Form 2880)

7631.9 When Immediate Intervention Is Warranted at an Operation

7632 The Process of Administrative Review for Adverse Action

7632.1 Adverse Action Is Overturned at an Administrative Review

7632.2 Adverse Action Is Upheld at an Administrative Review or No Administrative Review Is Requested

7633 Notice of Decision to Revoke, Deny, or Suspend an Application or Permit

7633.3 Notifying an Applicant Who Is Denied or Revoked About the Restrictions on Reapplying

7633.4 Notifying an Operation About a Controlling Person’s Right to Request a Hearing

7635 Sending an Operation Final Notice of Suspension, Revocation, or Denial

7635.1 Statements Required in the Notice of Final Adverse Action (CLASS Form 2895)

7635.2 Additional Actions Taken by Licensing Staff When Adverse Action Is Final

7700 Legal Actions When an Operation Disagrees With the Actions of an Inspector

7712 Roles for Conducting an Administrative Review

7730 Due Process Hearings

7732 When an Administrative Law Judge Issues a Final Decision on an Appeal

7770 Administrative Review and Due Process Hearing for a Designated Controlling Person

7771 Choosing the Persons to Designate as Controlling

7771.1 Notifying Persons About the Intent to Designate

7772 Process of Providing an Administrative Review for the Designated Controlling Person

7772.1 Adverse Action Is Overturned, Stopped, or Results in a Settlement

7772.2 No Administrative Review Requested by a Controlling Person

7772.3 Decision to Designate a Controlling Person Is Overturned

7772.4 Decision to Designate a Controlling Person Is Upheld

7772.5 Notifying Persons About Licensing’s Decision to Designate a Controlling Person

7772.51 Content of CLASS Form 2763 (Controlling Person Administrative Review Decision Letter)

7772.52 Instructions for Requesting a Due Process Hearing to Appeal the Designation of Controlling Person

7772.53 Consequences of a Controlling Person Not Responding to a Letter About the Right to Appeal (CLASS Form 2763)

7772.54 Enclosures When Instructing a Person About the Right to Appeal a Designation as Controlling (CLASS Form 2763)

7772.55 Delivering the Letter Notifying a Person About the Right to Appeal a Designation as Controlling (CLASS Form 2763)

7773 Providing an Due Process Hearing for a Designated Controlling Person

7773.1 Controlling Person Did Not Request a Due Process Hearing

7773.2 When a Controlling Person Requests a Due Process Hearing to Appeal the Designation

7773.21 A Designation of Controlling Is Upheld at a Due Process Hearing

7773.22 A Revocation Is Upheld at a Due Process Hearing but the Designation of Controlling Person Is Overturned

7773.23 A Revocation and Designation Are Both Overturned at a Due Process Hearing

7773.3 Final Notice to Sustain the Designation of Controlling Person

7773.31 The Contents of the Letter to Notify a Controlling Person About a Sustained Designation (CLASS Form 2764)

7773.32 Delivering the Letter Notifying a Controlling Person About a Sustained Designation (CLASS Form 2764)

7773.4 Reviewing the Status of a Sustained Controlling Person in CLASS

7774 Documenting in the AARS When the Denial or Revocation of a Permit Is Final or the Role of Controlling Person Is Sustained

7774.1 Entering Details About an Operation in the HHSC Record Sharing System

7774.2 Entering Information for the Controlling Persons

Appendix 2000-3: The Pre-Application Interview Conference

Cross-references to the items above were updated in:

2114 Forms and Additional Information – Pre-Application Interview for a Child Care Permit

3243.3 Handling Applications Returned for the Third Time in a Year

3253.2 Circumstances That Require Denial of the Application

3313 Accepting the Application

3321.16 Processing Controlling Person Checks

3342.2 How to Renew a License

3343.4 Denying an Application or Delaying a Decision

3521 Requisite for Acceptance of Application

3733 Reimbursement for Publishing the Notice of Revocation

3742 Reimbursement for Publishing the Notice of Revocation

3816 Administrative Review and Appeal

4152.1 When an Operation Repeatedly Fails to Meet Restrictions or Conditions

4313 When an Operation Continues to Be Deficient

4500 Evaluating Risk to Children

4511 Enforcement Action Options

5213 Requesting and Processing the First Annual Fee

6470 Handling Obstruction of an Investigation

7338 If the Operation Does Not Reopen or Voluntarily Close at the End of a Voluntary Suspension

7344 Licensing Response if the Operation Did Not Close

7435.1 The Applicant’s Right to a Review of Restrictions or Conditions on a Permit

7551 SOAH Hearing

Monitoring Controlling Persons During Inspections

The items below are revised to add policies and procedures for monitoring controlling persons during inspections.

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See:

4141 Preparing for All Inspections Except Investigation Inspections

4150 Conducting Inspections

4153.3 Reviewing Controlling Person Information During Monitoring Inspections

4153.4 Reviewing Records at a Central Administrative Location

4161.2 Document Inspection Results on CLASS Form 2936

4164 Procedures When the Operation's Controlling Person List Could Not Be Verified During the Inspection

4165 Completing a Supplemental Inspection Form

4165.1 Contacting the Permit Holder

4170 Conducting the Exit Conference

4171 Discussing the Results of an Inspection

4171.1 Discussing Pending Results

4171.2 Addressing an Operation’s Concerns About Inspection Findings

Cross-references to revised items above were updated in:

4160 Documenting the Results of an Inspection

4163 Final Determination of Findings Left Pending During an Inspection

4171 Discussing the Results of an Inspection

6450 Conducting Investigations With and Without an On-Site Inspection

 

Records on Controlling Persons

The appendix below is revised to add information on records related to the regulation of controlling persons. See:

Appendix 1000-2: Organizing Licensing Records

Display of Revisions With Changes Highlighted (Word Document)

2000 Handling Inquiries About the Licensing Process and Exemptions

Section 2000 is revised to add temporary shelter child programs as a type of operation regulated by Licensing.

Display of Revisions With Changes Highlighted (Word Document)

3000 Application and Issuance

Section 3000 is revised to include the policy and procedures related to processing information about controlling persons during the application process. Some changes clarify existing policy, delete duplicative policy, or enhance the organization of the section. Policy is updated to state that only an abuse/neglect investigation involving the applicant may delay the issuance of a permit.

Display of Revisions with Changes Highlighted (Word Document)

See:

2200 Types of Child Care Permits and Multiple Operations

2210 Permits Required for Child Day Care

2350 Programs of Limited Duration That Are Exempt From Licensure and Certification

2351 Program With Parents on the Premises

2352 Short-Term Program

2353 Religious Program

2354 Foreign Exchange or Sponsorship Program

3130 The Application Process

3200 Processing the Application for a License, Certificate, Compliance Certificate, Registration, or Listing

3210 Time Limit for Issuance of a Permit

3211 Time Frame for Issuance or Denial

3220 Contents of a Complete Application

3230 Steps for Issuance or Denial

3240 Reviewing and Accepting the Application for a Permit

3241 How to Determine Whether the Applicant Is Eligible to Apply

3242 How to Evaluate the Application

3243 Checking the Application for Errors and Omissions

3243.1 If the Application Is Incomplete or Contains Errors

3243.2 Resolving Errors and Omissions

3243.3 Handling Applications Returned for the Third Time in a Year

3253 Failure to Withdraw an Application for an Operation That Is Providing Care

3253.1 Noncompliance and Required Actions

3253.2 Circumstances That Require Denial of the Application

3300 Process for Issuance of an Initial License, Non-Expiring License, or Certificate

3310 License Application

3311 Application for a Licensed Child Day Care Operation

3312 Application for a License to Operate a Residential Child Care Operation

3313 When Not to Accept an Application

3313.1 Application Materials Are Incomplete

3313.2 Fees Not Paid

3313.3 Plan of Operation Not in Compliance With Minimum Standards

3313.4 Applicant Under Investigation

3313.5 Applicant Prohibited From Obtaining a Permit

3313.6 Applicant Previously Denied a Permit

3313.7 Permit Revoked in Another State

3314 Explaining Governing Body Responsibilities — License or Certificate

3314.1 Governing Body and Licensing Responsibilities

3314.2 Child Day Care Governing Body Responsibilities

3314.3 Controlling Person Responsibilities

3314.4 Residential Child Care Governing Body Responsibilities

3314.5 CLASS Documentation Requirements

3316 License Requirements

3316.1 Initial License

3316.2 Non-Expiring License

3316.21 When to Issue a License

3316.22 How Operations Qualify for a Non-Expiring License

3320 Activities Before Issuance of a License or Certificate

3321 Evaluating Before Issuing an Initial or Non-Expiring License or Certificate

3321.1 Tasks Performed by the Inspector

3321.11 Checking the Sex Offender Registry

3321.12 Completing Public Notice and Hearing Requirements

3321.13 Verifying Insurance Coverage

3321.14 Inspecting the Operation

3321.15 Performing Background Checks

3321.16 Processing Controlling Person Checks

3321.17 Ensuring That the Applicant Has Attended a Pre-Application Interview

3321.18 Applying Conditions or Restrictions

3321.19 Obtaining Approval and Documenting

3323 Liability Insurance

3323.1 Coverage Required of Permit Holders

3323.11 Basis for Suspension or Revocation

3323.12 Exceptions to Insurance Requirements

3324 Conducting Inspections During the Application Phase for a License or Certificate

3324.41 Forms and Checklists

3330 Issuance of a License or Certificate

3331 Preparing the Initial License

3331.1 Child Day Care

3331.2 Residential Child Care

3331.21 Types of Services Included as Restrictions

3342.1 Renewing the Initial License

3400 Process for Issuance of a Compliance Certificate

3410 Compliance Certificate Application

3411 Application for a Compliance Certificate to Operate a Small Employer-Based Child Care Operation

3412 Application for a Compliance Certificate to Operate a Temporary Shelter Child Care Operation

3413 When Not to Accept an Application

3420 Activities Before Issuance of a Compliance Certificate

3421 Tasks Performed by the Inspector

3421.1 Checking the Sex Offender Registry

3421.2 Confirming Fire and Health Inspections

3421.3 Inspecting the Operation

3421.4 Conducting Background Checks

3421.5 Obtaining Approval and Documenting

3422 Conducting Inspections During the Application Phase for a Compliance Certificate

3422.1 Time Frame

3422.2 When to Announce an Inspection

3422.3 Abbreviated Inspection

3430 Issuance of a Compliance Certificate

3431 Preparing the Compliance Certificate

3432 Small Employer-Based Child Care Operation

3433 Temporary Shelter Child Care Operation

3434 Setting Special Conditions on the Compliance Certificate

3434.1 Types of Conditions

3434.11 Results of Background Checks

3434.2 Amend the Permit When Necessary

3435 Denying an Application or Delaying a Decision

3500 Process for Issuance of a Registration Permit

3512 When to Accept the Application

3512.1 Content of a Completed Application

3512.2 Required Orientation or Pre-Application Interview

3512.3 Accepting the Application

3513 Incomplete Applications

3514 When Not to Accept an Application

3530 Evaluating for Issuance of a Registration Permit

3531 Checking the Sex Offender Registry

3532 Inspecting the Operation

3533 Conducting Background Checks

3534 Processing Controlling Person Checks

3535 Obtaining Approvals and Documenting

3536 Requisite for Issuance

3600 Process for Issuance of a Listing Permit

3610 Listing Application

3611 Contents of Application

3612 Time Frame for Licensing’s Response

3613 When Not to Accept an Application

3615 Orientation Not Required

3620 Evaluating for Issuance of a Listing Permit

3621 Checking the Sex Offender Registry

3622 Conducting Background Checks

3623 Processing Controlling Person Checks

3624 Obtaining Approvals and Documenting

3800 Handling Changes in an Operation

3810 Changes Affecting a License, Certificate, or Registration Permit

3812 When Prior Notification of Change Is Required of Governing Bodies

3820 Handling Changes to a License, Certificate, or Registration Permit

3822 Documenting Changes in CLASS and the Child Day Care Licensing Application

3900 Handling Changes in the Type of Permit, Location and Ownership

3911 Establishing Compliance with Minimum Standard Rules

3912 Types of Changes

3920 Change of an Operation’s Location

3922 Relocation of a Licensed or Certified Operation or an Operation with a Compliance Certificate

3930 Change of Ownership

3931 Confirmation of Change and Reapplication for Permit

3933 Steps to Process an Application

Appendix 3000-2: Notifying the Operation

A link to revised items was updated in:

5430 Acting on a Designated or Sustained Controlling Person or a Person Denied Because of Residential History in Another State