H.F. _____ Section 1. NEW SECTION . 237C.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Administrator” means the administrator of that division 4 of the department designated by the director of human services 5 to administer this chapter or the administrator’s designee. 6 2. “Child” or “children” means an individual or individuals 7 under eighteen years of age. 8 3. “Children’s residential facility” means a private 9 facility designed to serve children who have been voluntarily 10 placed for reasons other than an exclusively recreational 11 activity outside of their home by a parent or legal guardian 12 and who are not under the custody or authority of the 13 department of human services, juvenile court, or another 14 governmental agency, that provides twenty-four hour care, 15 including food, lodging, supervision, education, or other care 16 on a full-time basis by a person other than a relative or 17 guardian of the child, but does not include an entity providing 18 any of the following: 19 a. Care furnished by an individual who receives the child of 20 a personal friend as an occasional and personal guest in the 21 individual’s home, free of charge and not as a business. 22 b. Care furnished by an individual with whom a child has 23 been placed for lawful adoption, unless that adoption is not 24 completed within two years after placement. 25 c. Child care furnished by a child care facility as defined 26 in section 237A.1. 27 d. Care furnished in a hospital licensed under chapter 28 135B or care furnished in a health care facility as defined in 29 section 135C.1. 30 e. Care furnished by a juvenile detention home or juvenile 31 shelter care home approved under section 232.142. 32 f. Care furnished by a child foster care facility licensed 33 under chapter 237. 34 g. Care furnished by an institution listed in section 218.1. 35 -1- LSB 6067YC (2) 86 kh/rj 1/ 11

H.F. _____ h. Care furnished by a facility licensed under chapter 125. 1 i. Care furnished by a psychiatric medical institution for 2 children licensed under chapter 135H. 3 j. Care furnished by a bona fide religious institution. 4 4. “Department” means the department of human services. 5 Sec. 2. NEW SECTION . 237C.2 Purpose. 6 It is the policy of this state to provide appropriate 7 protection for children who are separated from the direct 8 personal care of their parents, relatives, or guardians and, 9 therefore, the purpose of this chapter is to provide for the 10 development, establishment, and enforcement of standards 11 relating to the certification of children’s residential 12 facilities. 13 Sec. 3. NEW SECTION . 237C.3 Certification standards —— 14 consultation with other agencies. 15 1. The department of human services shall consult with 16 the department of education, the department of inspections 17 and appeals, the department of public health, the state fire 18 marshal, and other agencies as determined by the department 19 of human services to establish certification standards for 20 children’s residential facilities in accordance with this 21 chapter. 22 2. Standards established by the department under this 23 chapter shall at a minimum address the basic health and 24 educational needs of children; protection of children from 25 mistreatment, abuse, and neglect; background and records checks 26 of persons providing care to children in facilities certified 27 under this chapter; the use of seclusion, restraint, or other 28 restrictive interventions; health; safety; emergency; and the 29 physical premises on which care is provided by a children’s 30 residential facility. The background check requirements shall 31 be substantially equivalent to those applied under chapter 237 32 for a child foster care facility provider. 33 Sec. 4. NEW SECTION . 237C.4 Rules. 34 1. Except as otherwise provided in this section, the 35 -2- LSB 6067YC (2) 86 kh/rj 2/ 11

H.F. _____ department shall adopt rules pursuant to chapter 17A to 1 administer this chapter. 2 2. A children’s residential facility shall be inspected by 3 the state fire marshal or the state fire marshal’s designee 4 for compliance with rules relating to fire safety before the 5 department grants or renews a certificate of approval under 6 this chapter. Rules governing fire safety in children’s 7 residential facilities shall be promulgated by the state 8 fire marshal pursuant to section 100.1, subsection 5, after 9 consultation with the administrator. 10 3. Rules governing sanitation, water, and waste disposal 11 standards for children’s residential facilities shall be 12 adopted by the department of public health pursuant to 13 section 135.11, subsection 12, after consultation with the 14 administrator. 15 4. Rules governing educational programs and education 16 services provided by children’s residential facilities shall 17 be adopted by the state board of education pursuant to section 18 282.34. 19 5. In the case of a conflict between rules adopted pursuant 20 to subsections 2 and 3 and local rules, the more stringent 21 requirement applies. 22 Sec. 5. NEW SECTION . 237C.5 Certificate of approval —— 23 certification required. 24 A person shall not operate a children’s residential facility 25 without a certificate of approval to operate issued by the 26 administrator under this chapter. 27 Sec. 6. NEW SECTION . 237C.6 Certificate application and 28 issuance —— denial, suspension, or revocation. 29 1. A person shall apply for a certificate to operate a 30 children’s residential facility by completing and submitting to 31 the administrator an application in a form and format approved 32 by the administrator. The administrator shall issue or reissue 33 a certificate of approval if the administrator determines that 34 the applicant is or upon commencing operation will provide 35 -3- LSB 6067YC (2) 86 kh/rj 3/ 11

H.F. _____ children’s residential facility services in compliance with 1 this chapter. A certificate of approval is valid for up to one 2 year from the date of issuance for the period determined by the 3 administrator in accordance with administrative rules providing 4 criteria for making the determination. 5 2. The certificate of approval shall state on its face the 6 name of the holder of the certificate, the particular premises 7 for which the certificate is issued, and the number of children 8 who may be cared for by the children’s residential facility on 9 the premises at one time under the certificate of occupancy 10 issued by the state fire marshal or the state fire marshal’s 11 designee. The certificate of approval shall be posted in a 12 conspicuous place in the children’s residential facility. 13 3. The administrator may deny an application for issuance or 14 reissuance of a certificate of approval or suspend or revoke 15 a certificate of approval if the applicant or certificate 16 holder, as applicable, fails to comply with this chapter 17 or the rules adopted pursuant to this chapter or knowingly 18 makes a false statement concerning a material fact or 19 conceals a material fact on the application for the issuance 20 or reissuance of a certificate of approval or in a report 21 regarding operation of the children’s residential facility 22 submitted to the administrator. All operations of a children’s 23 residential facility shall cease during a period of suspension 24 or revocation. The administrator shall suspend or revoke a 25 certificate of approval of a children’s residential facility 26 that fails to comply with section 282.34. 27 Sec. 7. NEW SECTION . 237C.7 Restricted use of facility. 28 A children’s residential facility shall operate only in 29 a building or on premises designated in the certificate of 30 approval. 31 Sec. 8. NEW SECTION . 237C.8 Reports and inspections. 32 The administrator may require submission of reports by a 33 certificate of approval holder and shall cause at least one 34 annual unannounced inspection of a children’s residential 35 -4- LSB 6067YC (2) 86 kh/rj 4/ 11

H.F. _____ facility to assess compliance with applicable requirements 1 and standards. The inspections shall be conducted by the 2 department of inspections and appeals in addition to initial, 3 renewal, and other inspections that result from complaints 4 or self-reported incidents. The department of inspections 5 and appeals and the department of human services may examine 6 records of a children’s residential facility and may inquire 7 into matters concerning the children’s residential facility 8 and its employees, volunteers, and subcontractors relating 9 to requirements and standards for children’s residential 10 facilities under this chapter. 11 Sec. 9. NEW SECTION . 237C.9 Injunctive relief —— civil 12 action. 13 1. A person who establishes, conducts, manages, or operates 14 a children’s residential facility without a certificate of 15 approval required pursuant to this chapter, or a children’s 16 residential facility with a certificate of approval that is not 17 operating in compliance with rules adopted pursuant to this 18 chapter or section 282.34, may be restrained by temporary or 19 permanent injunction from providing children’s residential 20 facility services or from other involvement with child care. 21 The action may be instituted by the state or a county attorney. 22 2. The parent or legal guardian of a child who is placed in 23 a children’s residential facility, the state, the department 24 of education, or the school district in which the children’s 25 residential facility is located, may bring a civil action 26 seeking relief from conduct constituting a violation of this 27 chapter or section 282.34 or to prevent, restrain, or remedy 28 such violation. A civil action brought by the department of 29 education shall be limited to seeking relief from conduct 30 constituting a violation of section 282.34. Multiple 31 petitioners may join in a single action under this subsection. 32 3. If successful in obtaining injunctive relief under this 33 section, the petitioner shall be awarded reasonable attorney 34 fees and court costs. 35 -5- LSB 6067YC (2) 86 kh/rj 5/ 11

H.F. _____ Sec. 10. NEW SECTION . 237C.10 Notice and hearings —— 1 judicial review. 2 The procedure governing notice and hearing to deny an 3 application or suspend or revoke a certificate of approval 4 shall be in accordance with rules adopted by the department. 5 Sec. 11. NEW SECTION . 282.34 Educational programs for 6 children’s residential facilities. 7 1. A children’s residential facility operating under a 8 certificate of approval issued under chapter 237C shall do all 9 of the following: 10 a. Provide an educational program and appropriate education 11 services to children residing in the children’s residential 12 facility by contracting with the school district in which 13 the children’s residential facility is located, contracting 14 with an accredited nonpublic school, or becoming accredited 15 as a nonpublic school through the standards and accreditation 16 process described in section 256.11 and adopted by rule by the 17 state board of education. 18 b. Display prominently in all of its major publications 19 and on its internet site a notice accurately describing the 20 educational program and educational services provided by the 21 children’s residential facility. 22 c. Include in any promotional, advertising, or marketing 23 materials regarding the children’s residential facility, 24 available in print or via the internet, all fees charged by the 25 children’s residential facility for the services offered or 26 provided by the children’s residential facility and its refund 27 policy for the return of refundable portions of any fees. 28 2. The state board of education shall adopt by rule pursuant 29 to chapter 17A standards for the following: 30 a. Educational programs and appropriate educational services 31 provided under this section. 32 b. Contracts between children’s residential facilities and 33 school districts or accredited nonpublic schools. 34 c. Notices displayed in accordance with subsection 1, 35 -6- LSB 6067YC (2) 86 kh/rj 6/ 11

H.F. _____ paragraph “b” . 1 3. A contract that fails to comply with any of the 2 requirements of subsection 1, or with standards adopted by the 3 state board of education under subsection 2, is void. 4 Sec. 12. REPEAL. Chapter 237B, Code 2016, is repealed. 5 Sec. 13. REPORT REQUIREMENT. By January 1, 2017, the 6 department of human services, the department of education, the 7 department of public health, and the state fire marshal shall 8 each submit a report to the general assembly concerning their 9 progress in adopting rules as appropriate under sections 237C.4 10 and 282.34, as enacted by this Act. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill provides for standards for and certification and 15 inspection of children’s residential facilities. 16 Currently, Code section 237B.1 allows the department of 17 human services (DHS) to establish broad facility standards 18 for the protection of children’s safety for children served 19 by children’s centers, but prohibits the department from 20 establishing program development or oversight standards. The 21 bill repeals and replaces Code chapter 237B with new Code 22 chapter 237C to provide the department with more oversight 23 authority. 24 DEFINITION. The bill defines “children’s residential 25 facility” to mean a private facility designed to serve children 26 under the age of 18 who have been voluntarily placed for 27 reasons other than an exclusively recreational activity outside 28 of their home by a parent or legal guardian and who are not 29 under the custody or authority of the DHS, juvenile court, 30 or another governmental agency, and the facility provides 31 24-hour care, including food, lodging, supervision, education, 32 or other care. The bill excludes from the definition care 33 provided by certain individuals, such as personal friends or in 34 circumstances preceding adoption, care furnished by entities 35 -7- LSB 6067YC (2) 86 kh/rj 7/ 11

H.F. _____ otherwise regulated by a state agency, and care furnished by a 1 bona fide religious institution. 2 CERTIFICATION STANDARDS. DHS must at a minimum consult 3 with the departments of education, inspections and appeals, 4 and public health, and the state fire marshal to establish 5 certification standards for children’s residential facilities. 6 The standards must at a minimum address the basic health and 7 educational needs of children; protection of children from 8 mistreatment, abuse, and neglect; background and records checks 9 of persons providing care to children in such facilities; 10 the use of seclusion, restraint, or other restrictive 11 interventions; health; safety; emergency; and the physical 12 premises on which care is provided by a children’s residential 13 facility. 14 AGENCY RULES. DHS must adopt rules to administer the 15 new Code chapter. The state fire marshal must adopt rules 16 relating to safety in children’s residential facilities after 17 consultation with the DHS administrator. Such facilities 18 must be inspected by the state fire marshal or the state 19 fire marshal’s designee before the DHS grants or renews a 20 certificate of approval. The department of public health 21 (DPH) must adopt rules governing sanitation, water, and waste 22 disposal standards for children’s residential facilities after 23 consultation with the DHS administrator. In the case of a 24 conflict between local rules and rules adopted by the state 25 fire marshal or DPH, the more stringent requirement applies. 26 The state board of education must adopt rules governing 27 educational programs and education services provided by 28 children’s residential facilities. 29 CERTIFICATION REQUIREMENTS. A person shall not operate 30 a children’s residential facility without a certificate of 31 approval issued by the DHS administrator. A person shall apply 32 for a certificate by completing and submitting to the DHS 33 administrator an application in a form and format approved by 34 the administrator. The administrator shall issue or reissue a 35 -8- LSB 6067YC (2) 86 kh/rj 8/ 11

H.F. _____ certificate of approval if the administrator determines that 1 the applicant is or upon commencing operation will provide 2 children’s residential facility services in compliance with the 3 new Code chapter. A certificate of approval is valid for up to 4 one year from the date of issuance for the period determined 5 by the administrator in accordance with administrative rules 6 providing criteria for making the determination. 7 The certificate of approval must state the name of the holder 8 of the certificate, the particular premises for which the 9 certificate is issued, and the number of children who may be 10 cared for by the facility. The certificate of approval must be 11 posted in a conspicuous place in the facility. A children’s 12 residential facility shall operate only in a building or on 13 premises designated in the certificate of approval. 14 The administrator may deny an application for issuance or 15 reissuance of a certificate or suspend or revoke a certificate 16 of approval if the applicant or certificate holder fails to 17 comply with the requirements or rules adopted under the new 18 Code chapter or knowingly makes a false statement concerning a 19 material fact or conceals a material fact on the application or 20 in a report submitted to the DHS administrator. All operations 21 of a facility must cease during a period of suspension or 22 revocation. The administrator must suspend or revoke a 23 certificate of approval of a facility that fails to comply 24 with statutory requirements for educational programs at such 25 facilities. 26 REPORTS AND INSPECTIONS. The DHS administrator may require 27 submission of reports by a certificate of approval holder 28 and shall cause at least one annual unannounced inspection 29 of a children’s residential facility by the department of 30 inspections and appeals. The inspections shall be conducted in 31 addition to initial, renewal, and other inspections that result 32 from complaints or self-reported incidents. The department 33 of inspections and appeals and DHS may examine the facility’s 34 records and may inquire into matters concerning the facility 35 -9- LSB 6067YC (2) 86 kh/rj 9/ 11

H.F. _____ and its employees, volunteers, and subcontractors. 1 INJUNCTIVE RELIEF. A person who establishes, conducts, 2 manages, or operates a children’s residential facility without 3 a certificate of approval, or a facility with a certificate 4 that is not operating in compliance with the bill may be 5 restrained by temporary or permanent injunction from providing 6 services or from other involvement with child care. The action 7 may be instituted by the state or a county attorney. 8 The parent or legal guardian of a child who is placed in 9 such a facility, the state, the department of education, or the 10 school district in which the children’s residential facility 11 is located may bring a civil action seeking relief from 12 conduct constituting a violation of the bill or to prevent, 13 restrain, or remedy such violation. However, the department of 14 education’s civil action must be limited to seeking relief from 15 conduct constituting a violation of new Code section 282.34. 16 NOTICE AND HEARINGS —— JUDICIAL REVIEW. The procedure 17 governing notice and hearing to deny an application or suspend 18 or revoke a certificate of approval shall be in accordance with 19 rules adopted by DHS. 20 EDUCATIONAL PROGRAMS. A children’s residential facility 21 must provide an educational program and appropriate education 22 services to children residing in the facility by contracting 23 with the school district in which the facility is located, or 24 contracting with an accredited nonpublic school, or becoming 25 accredited as a nonpublic school. The facility must display 26 prominently in its major publications and on its internet site 27 a notice accurately describing its educational program and 28 educational services, and must include its fees and refund 29 policy in any promotional, advertising, or marketing materials 30 regarding the facility. 31 The state board of education must adopt by rule standards for 32 the educational programs and appropriate educational services 33 provided by such facilities, contracts between such facilities 34 and school districts or accredited nonpublic schools, and 35 -10- LSB 6067YC (2) 86 kh/rj 10/ 11

H.F. _____ notices displayed by a facility. A contract that fails 1 to comply with any of the educational program and services 2 requirements or with standards adopted by the state board of 3 education is void. 4 REPORT REQUIREMENT. By January 1, 2017, DHS, the department 5 of education, DPH, and the state fire marshal must each submit 6 a report to the general assembly concerning their progress in 7 adopting rules. 8 -11- LSB 6067YC (2) 86 kh/rj 11/ 11