S.F. 2304 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 6055SV (1) 86 kh/rj 1/ 11

S.F. 2304 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 4. “Department” means the department of human services. 4 Sec. 2. NEW SECTION . 237C.2 Purpose. 5 It is the policy of this state to provide appropriate 6 protection for children who are separated from the direct 7 personal care of their parents, relatives, or guardians and, 8 therefore, the purpose of this chapter is to provide for the 9 development, establishment, and enforcement of standards 10 relating to the certification of children’s residential 11 facilities. 12 Sec. 3. NEW SECTION . 237C.3 Certification standards —— 13 consultation with other agencies. 14 1. The department of human services shall consult with 15 the department of education, the department of inspections 16 and appeals, the department of public health, the state fire 17 marshal, and other agencies as determined by the department 18 of human services to establish certification standards for 19 children’s residential facilities in accordance with this 20 chapter. 21 2. Standards established by the department under this 22 chapter shall at a minimum address the basic health and 23 educational needs of children; protection of children from 24 mistreatment, abuse, and neglect; background and records checks 25 of persons providing care to children in facilities certified 26 under this chapter; the use of seclusion, restraint, or other 27 restrictive interventions; health; safety; emergency; and the 28 physical premises on which care is provided by a children’s 29 residential facility. The background check requirements shall 30 be substantially equivalent to those applied under chapter 237 31 for a child foster care facility provider. 32 Sec. 4. NEW SECTION . 237C.4 Rules. 33 1. Except as otherwise provided in this section, the 34 department shall adopt rules pursuant to chapter 17A to 35 -2- LSB 6055SV (1) 86 kh/rj 2/ 11

S.F. 2304 administer this chapter. 1 2. A children’s residential facility shall be inspected by 2 the state fire marshal or the state fire marshal’s designee 3 for compliance with rules relating to fire safety before the 4 department grants or renews a certificate of approval under 5 this chapter. Rules governing fire safety in children’s 6 residential facilities shall be promulgated by the state 7 fire marshal pursuant to section 100.1, subsection 5, after 8 consultation with the administrator. 9 3. Rules governing sanitation, water, and waste disposal 10 standards for children’s residential facilities shall be 11 adopted by the department of public health pursuant to 12 section 135.11, subsection 12, after consultation with the 13 administrator. 14 4. Rules governing educational programs and education 15 services provided by children’s residential facilities shall 16 be adopted by the state board of education pursuant to section 17 282.34. 18 5. In the case of a conflict between rules adopted pursuant 19 to subsections 2 and 3 and local rules, the more stringent 20 requirement applies. 21 Sec. 5. NEW SECTION . 237C.5 Certificate of approval —— 22 certification required. 23 A person shall not operate a children’s residential facility 24 without a certificate of approval to operate issued by the 25 administrator under this chapter. 26 Sec. 6. NEW SECTION . 237C.6 Certificate application and 27 issuance —— denial, suspension, or revocation. 28 1. A person shall apply for a certificate to operate a 29 children’s residential facility by completing and submitting to 30 the administrator an application in a form and format approved 31 by the administrator. The administrator shall issue or reissue 32 a certificate of approval if the administrator determines that 33 the applicant is or upon commencing operation will provide 34 children’s residential facility services in compliance with 35 -3- LSB 6055SV (1) 86 kh/rj 3/ 11

S.F. 2304 this chapter. A certificate of approval is valid for up to one 1 year from the date of issuance for the period determined by the 2 administrator in accordance with administrative rules providing 3 criteria for making the determination. 4 2. The certificate of approval shall state on its face the 5 name of the holder of the certificate, the particular premises 6 for which the certificate is issued, and the number of children 7 who may be cared for by the children’s residential facility on 8 the premises at one time under the certificate of occupancy 9 issued by the state fire marshal or the state fire marshal’s 10 designee. The certificate of approval shall be posted in a 11 conspicuous place in the children’s residential facility. 12 3. The administrator may deny an application for issuance or 13 reissuance of a certificate of approval or suspend or revoke 14 a certificate of approval if the applicant or certificate 15 holder, as applicable, fails to comply with this chapter 16 or the rules adopted pursuant to this chapter or knowingly 17 makes a false statement concerning a material fact or 18 conceals a material fact on the application for the issuance 19 or reissuance of a certificate of approval or in a report 20 regarding operation of the children’s residential facility 21 submitted to the administrator. All operations of a children’s 22 residential facility shall cease during a period of suspension 23 or revocation. The administrator shall suspend or revoke a 24 certificate of approval of a children’s residential facility 25 that fails to comply with section 282.34. 26 Sec. 7. NEW SECTION . 237C.7 Restricted use of facility. 27 A children’s residential facility shall operate only in 28 a building or on premises designated in the certificate of 29 approval. 30 Sec. 8. NEW SECTION . 237C.8 Reports and inspections. 31 The administrator may require submission of reports by a 32 certificate of approval holder and shall cause at least one 33 annual unannounced inspection of a children’s residential 34 facility to assess compliance with applicable requirements 35 -4- LSB 6055SV (1) 86 kh/rj 4/ 11

S.F. 2304 and standards. The inspections shall be conducted by the 1 department of inspections and appeals in addition to initial, 2 renewal, and other inspections that result from complaints 3 or self-reported incidents. The department of inspections 4 and appeals and the department of human services may examine 5 records of a children’s residential facility and may inquire 6 into matters concerning the children’s residential facility 7 and its employees, volunteers, and subcontractors relating 8 to requirements and standards for children’s residential 9 facilities under this chapter. 10 Sec. 9. NEW SECTION . 237C.9 Injunctive relief —— civil 11 action. 12 1. A person who establishes, conducts, manages, or operates 13 a children’s residential facility without a certificate of 14 approval required pursuant to this chapter, or a children’s 15 residential facility with a certificate of approval that is not 16 operating in compliance with rules adopted pursuant to this 17 chapter or section 282.34, may be restrained by temporary or 18 permanent injunction from providing children’s residential 19 facility services or from other involvement with child care. 20 The action may be instituted by the state or a county attorney. 21 2. The parent or legal guardian of a child who is placed 22 in a children’s residential facility, the state, or the school 23 district in which the children’s residential facility is 24 located, may bring a civil action seeking relief from conduct 25 constituting a violation of this chapter or section 282.34 26 or to prevent, restrain, or remedy such violation. Multiple 27 petitioners may join in a single action under this subsection. 28 3. If successful in obtaining injunctive relief under this 29 section, the petitioner shall be awarded reasonable attorney 30 fees and court costs. 31 Sec. 10. NEW SECTION . 237C.10 Notice and hearings —— 32 judicial review. 33 The procedure governing notice and hearing to deny an 34 application or suspend or revoke a certificate of approval 35 -5- LSB 6055SV (1) 86 kh/rj 5/ 11

S.F. 2304 shall be in accordance with rules adopted by the department. 1 Sec. 11. NEW SECTION . 282.34 Educational programs for 2 children’s residential facilities. 3 1. A children’s residential facility operating under a 4 certificate of approval issued under chapter 237C shall do all 5 of the following: 6 a. Provide an educational program and appropriate education 7 services to children residing in the children’s residential 8 facility by contracting with the school district in which 9 the children’s residential facility is located, contracting 10 with an accredited nonpublic school, or becoming accredited 11 as a nonpublic school through the standards and accreditation 12 process described in section 256.11 and adopted by rule by the 13 state board of education. 14 b. Display prominently in all of its major publications 15 and on its internet site a notice accurately describing the 16 educational program and educational services provided by the 17 children’s residential facility. 18 c. Include in any promotional, advertising, or marketing 19 materials regarding the children’s residential facility 20 available in print, broadcast, or via the internet or by any 21 other means all fees charged by the children’s residential 22 facility for the services offered or provided by the children’s 23 residential facility and its refund policy for the return of 24 refundable portions of any fees. 25 2. The state board of education shall adopt by rule pursuant 26 to chapter 17A standards for the following: 27 a. Educational programs and appropriate educational services 28 provided under this section. 29 b. Contracts between children’s residential facilities and 30 school districts or accredited nonpublic schools. 31 c. Notices displayed in accordance with subsection 1, 32 paragraph “b” . 33 3. A contract that fails to comply with any of the 34 requirements of subsection 1, or with standards adopted by the 35 -6- LSB 6055SV (1) 86 kh/rj 6/ 11

S.F. 2304 state board of education under subsection 2, is void. 1 Sec. 12. REPEAL. Chapter 237B, Code 2016, is repealed. 2 Sec. 13. REPORT REQUIREMENT. By January 1, 2017, the 3 department of human services, the department of education, the 4 department of public health, and the state fire marshal shall 5 each submit a report to the general assembly concerning their 6 progress in adopting rules as appropriate under sections 237C.4 7 and 282.34, as enacted by this Act. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill provides for standards for and certification and 12 inspection of children’s residential facilities. 13 Currently, Code section 237B.1 allows the department of 14 human services (DHS) to establish broad facility standards 15 for the protection of children’s safety for children served 16 by children’s centers, but prohibits the department from 17 establishing program development or oversight standards. The 18 bill repeals and replaces Code chapter 237B with new Code 19 chapter 237C to provide the department with more oversight 20 authority. 21 DEFINITION. The bill defines “children’s residential 22 facility” to mean a private facility designed to serve children 23 under the age of 18 who have been voluntarily placed for 24 reasons other than an exclusively recreational activity outside 25 of their home by a parent or legal guardian and who are not 26 under the custody or authority of the DHS, juvenile court, 27 or another governmental agency, and the facility provides 28 24-hour care, including food, lodging, supervision, education, 29 or other care. The bill excludes from the definition care 30 provided by certain individuals, such as personal friends or 31 in circumstances preceding adoption, and care furnished by 32 entities otherwise regulated by a state agency. 33 CERTIFICATION STANDARDS. DHS must at a minimum consult 34 with the departments of education, inspections and appeals, 35 -7- LSB 6055SV (1) 86 kh/rj 7/ 11

S.F. 2304 and public health, and the state fire marshal to establish 1 certification standards for children’s residential facilities. 2 The standards must at a minimum address the basic health and 3 educational needs of children; protection of children from 4 mistreatment, abuse, and neglect; background and records checks 5 of persons providing care to children in such facilities; 6 the use of seclusion, restraint, or other restrictive 7 interventions; health; safety; emergency; and the physical 8 premises on which care is provided by a children’s residential 9 facility. 10 AGENCY RULES. DHS must adopt rules to administer the 11 new Code chapter. The state fire marshal must adopt rules 12 relating to safety in children’s residential facilities after 13 consultation with the DHS administrator. Such facilities 14 must be inspected by the state fire marshal or the state 15 fire marshal’s designee before the DHS grants or renews a 16 certificate of approval. The department of public health 17 (DPH) must adopt rules governing sanitation, water, and waste 18 disposal standards for children’s residential facilities after 19 consultation with the DHS administrator. In the case of a 20 conflict between local rules and rules adopted by the state 21 fire marshal or DPH, the more stringent requirement applies. 22 The state board of education must adopt rules governing 23 educational programs and education services provided by 24 children’s residential facilities. 25 CERTIFICATION REQUIREMENTS. A person shall not operate 26 a children’s residential facility without a certificate of 27 approval issued by the DHS administrator. A person shall apply 28 for a certificate by completing and submitting to the DHS 29 administrator an application in a form and format approved by 30 the administrator. The administrator shall issue or reissue a 31 certificate of approval if the administrator determines that 32 the applicant is or upon commencing operation will provide 33 children’s residential facility services in compliance with the 34 new Code chapter. A certificate of approval is valid for up to 35 -8- LSB 6055SV (1) 86 kh/rj 8/ 11

S.F. 2304 one year from the date of issuance for the period determined 1 by the administrator in accordance with administrative rules 2 providing criteria for making the determination. 3 The certificate of approval must state the name of the holder 4 of the certificate, the particular premises for which the 5 certificate is issued, and the number of children who may be 6 cared for by the facility. The certificate of approval must be 7 posted in a conspicuous place in the facility. A children’s 8 residential facility shall operate only in a building or on 9 premises designated in the certificate of approval. 10 The administrator may deny an application for issuance or 11 reissuance of a certificate or suspend or revoke a certificate 12 of approval if the applicant or certificate holder fails to 13 comply with the requirements or rules adopted under the new 14 Code chapter or knowingly makes a false statement concerning a 15 material fact or conceals a material fact on the application or 16 in a report submitted to the DHS administrator. All operations 17 of a facility must cease during a period of suspension or 18 revocation. The administrator must suspend or revoke a 19 certificate of approval of a facility that fails to comply 20 with statutory requirements for educational programs at such 21 facilities. 22 REPORTS AND INSPECTIONS. The DHS administrator may require 23 submission of reports by a certificate of approval holder 24 and shall cause at least one annual unannounced inspection 25 of a children’s residential facility by the department of 26 inspections and appeals. The inspections shall be conducted in 27 addition to initial, renewal, and other inspections that result 28 from complaints or self-reported incidents. The department 29 of inspections and appeals and DHS may examine the facility’s 30 records and may inquire into matters concerning the facility 31 and its employees, volunteers, and subcontractors. 32 INJUNCTIVE RELIEF. A person who establishes, conducts, 33 manages, or operates a children’s residential facility without 34 a certificate of approval, or a facility with a certificate 35 -9- LSB 6055SV (1) 86 kh/rj 9/ 11

S.F. 2304 that is not operating in compliance with the bill may be 1 restrained by temporary or permanent injunction from providing 2 services or from other involvement with child care. The action 3 may be instituted by the state or a county attorney. 4 The parent or legal guardian of a child who is placed in such 5 a facility, or the state, or the school district in which the 6 children’s residential facility is located may bring a civil 7 action seeking relief from conduct constituting a violation of 8 the bill or to prevent, restrain, or remedy such violation. 9 NOTICE AND HEARINGS —— JUDICIAL REVIEW. The procedure 10 governing notice and hearing to deny an application or suspend 11 or revoke a certificate of approval shall be in accordance with 12 rules adopted by DHS. 13 EDUCATIONAL PROGRAMS. A children’s residential facility 14 must provide an educational program and appropriate education 15 services to children residing in the facility by contracting 16 with the school district in which the facility is located, or 17 contracting with an accredited nonpublic school, or becoming 18 accredited as a nonpublic school. The facility must display 19 prominently in all of its major publications and on its 20 internet site a notice accurately describing its educational 21 program and educational services, and must include its fees and 22 refund policy in any promotional, advertising, or marketing 23 materials regarding the facility. 24 The state board of education must adopt by rule standards for 25 the educational programs and appropriate educational services 26 provided by such facilities, contracts between such facilities 27 and school districts or accredited nonpublic schools, and 28 notices displayed by a facility. A contract that fails 29 to comply with any of the educational program and services 30 requirements or with standards adopted by the state board of 31 education is void. 32 REPORT REQUIREMENT. By January 1, 2017, DHS, the department 33 of education, DPH, and the state fire marshal must each submit 34 a report to the general assembly concerning their progress in 35 -10- LSB 6055SV (1) 86 kh/rj 10/ 11