TITLE 26. HEALTH AND HUMAN SERVICES

PART 1. HEALTH AND HUMAN SERVICES COMMISSION

CHAPTER 742. MINIMUM STANDARDS FOR LISTED FAMILY HOMES

SUBCHAPTER D. NOTIFICATIONS AND LIABILITY INSURANCE REQUIREMENTS

The executive commissioner of the Texas Health and Human Services Commission (HHSC) proposes new §742.402, concerning Disclosed Revocations and Parental Notice Requirements.

BACKGROUND AND PURPOSE

The proposal is necessary to comply with Senate Bill (SB) 225, 87th Legislature, Regular Session, 2021.

SB 225 added Texas Human Resources Code §42.0562, which requires the collection of information on any child care home employee who has had a revocation of a state-issued license, registration, certificate, permit, or other occupational authorization by a licensing authority.

HHSC Child Care Regulation (CCR) proposes a new rule to meet the requirements of Texas Human Resources Code §42.0562 and to extend those requirements to listed family home permit holders, controlling persons, employees, and prospective employees. The new rule also requires the listed family home to notify a parent for each enrolled child if a revocation is disclosed.

SECTION-BY-SECTION SUMMARY

Proposed new §742.402 requires (1) each permit holder, controlling person, employee, and prospective employee of a listed family home to complete a form disclosing any revocation of state-issued license, registration, certificate, permit, or other occupational authorization that allowed the practice or engagement in a particular business, occupation, or profession before the revocation; (2) a listed family home to notify, in writing, parents of children enrolled in the home if any person disclosed a revocation and what license, registration, or other occupational authorization was revoked; (3) a listed family home to keep the disclosure form and parental notice on file; and (4) parental notice only if the person who discloses the revocation is hired or continues to be affiliated with the listed family home.

FISCAL NOTE

Victoria Grady, Deputy Chief of Finance, has determined that for each year of the first five years that the rules will be in effect, enforcing or administering the rules does not have foreseeable implications relating to costs or revenues of state or local governments.

GOVERNMENT GROWTH IMPACT STATEMENT

HHSC has determined that during the first five years that the rule will be in effect:

(1) the proposed rule will not create or eliminate a government program;

(2) implementation of the proposed rule will not affect the number of HHSC employee positions;

(3) implementation of the proposed rule will result in no assumed change in future legislative appropriations;

(4) the proposed rule will not affect fees paid to HHSC;

(5) the proposed rule will create a new regulation;

(6) the proposed rule will not expand, limit or repeal existing regulations;

(7) the proposed rule will not change the number of individuals subject to the rules; and

(8) the proposed rule will not affect the state's economy.

SMALL BUSINESS, MICRO-BUSINESS, AND RURAL COMMUNITY IMPACT ANALYSIS

Victoria Grady has also determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities. The rule does not impose any additional costs on small businesses, micro-businesses, or rural communities required to comply with the rule.

LOCAL EMPLOYMENT IMPACT

The proposed rule will not affect a local economy.

COSTS TO REGULATED PERSONS

Texas Government Code §2001.0045 does not apply to this rule because the rule is necessary to protect the health, safety, and welfare of the residents of Texas; does not impose a cost on regulated persons; and is necessary to implement legislation that does not specifically state that §2001.0045 applies to the rule.

PUBLIC BENEFIT AND COSTS

Rachel Ashworth-Mazerolle, Deputy Executive Commissioner for Child Care Regulation, has determined that for each year of the first five years the rule is in effect the public benefit will be increased protections for children in listed family homes.

Victoria Grady has also determined that for the first five years the rule is in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rule because the rule does not require any significant time or resources that would result in a cost to comply.

TAKINGS IMPACT ASSESSMENT

HHSC has determined that the proposal does not restrict or limit an owner's right to the owner's property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code §2007.043.

PUBLIC COMMENT

Written comments on the proposal, including information related to the cost, benefit, or effect of the proposed rule, as well as any applicable data, research, or analysis, may be submitted to Rules Coordination Office, P.O. Box 13247, Mail Code 4102, Austin, Texas 78711-3247, or street address 4601 West Guadalupe Street, Austin, Texas 78751; or emailed to HHSRulesCoordinationOffice@hhs.texas.gov.

To be considered, comments must be submitted no later than 31 days after the date of this issue of the Texas Register. Comments must be (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered before 5:00 p.m. on the last working day of the comment period; or (3) emailed before midnight on the last day of the comment period. If the last day to submit comments falls on a holiday, comments must be postmarked, shipped, or emailed before midnight on the following business day to be accepted. When emailing comments, please indicate "Comments on Proposed Rule 26R072" in the subject line.

STATUTORY AUTHORITY

The new rule is authorized by Texas Government Code §524.0151, which provides that the executive commissioner of HHSC shall adopt rules for the operation and provision of services by the health and human services agencies, as well as Texas Government Code §524.0005, which provides the executive commissioner with broad rule-making authority. In addition, §742.402 is authorized by Texas Human Resources Code §42.042, which requires the executive commissioner to adopt rules to carry out the provisions of Chapter 42.

The proposal implements Texas Human Resources Code §42.0562 and §42.042.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 15, 2026.

TRD-202602924

Karen Ray

Chief Counsel

Health and Human Services Commission

Earliest possible date of adoption: August 30, 2026

For further information, please call: (512) 438-3269

CHAPTER 747. MINIMUM STANDARDS FOR CHILD CARE [CHILD-CARE] HOMES

SUBCHAPTER B. ADMINISTRATION AND COMMUNICATION

The executive commissioner of the Texas Health and Human Services Commission (HHSC) proposes an amendment to §747.207 concerning What are my responsibilities as the primary caregiver; and new §747.311, concerning Disclosed Revocations and Parental Notice Requirements.

BACKGROUND AND PURPOSE

The proposal is necessary to comply with Senate Bill (SB) 225, 87th Legislature, Regular Session, 2021.

SB 225 added Texas Human Resources Code §42.0562, which requires the collection of information on any child care home employee who has had a revocation of a state-issued license, registration, certificate, permit, or other occupational authorization by a licensing authority.

The proposal also amends a rule to require that a child care home's primary caregiver comply with Texas Workforce Commission Child Care Services (CCS) requirements when receiving subsidies. The proposed amendment strengthens rules related to a child care home's compliance with the CCS program requirements if receiving subsidies.

HHSC Child Care Regulation (CCR) proposes a new rule to meet the requirements of Texas Human Resources Code §42.0562 and to extend those requirements to child care home permit holders, controlling persons, employees, and prospective employees. The new rule also requires the child care home to notify a parent for each enrolled child if a revocation is disclosed.

In addition, CCR is making non-substantive changes, including the removal of the hyphen between "child" and "care."

SECTION-BY-SECTION SUMMARY

The proposed amendment to §747.207 (1) amends the rule title; (2) adds language requiring compliance with CCS program requirements if receiving CCS subsidies; and (3) makes non-substantive changes for better readability and understanding.

Proposed new §747.311 requires (1) each permit holder, controlling person, employee, and prospective employee of a child care home to complete a form disclosing any revocation of state-issued license, registration, or other occupational authorization that allowed the practice or engagement in a particular business, occupation, or profession before the revocation; (2) a child care home to notify, in writing, parents of children enrolled in the child care home if any person disclosed a revocation and what license, registration, or other occupational authorization was revoked; (3) a child care home to keep the disclosure form and parental notice on file; and (4) parental notice only if the person who discloses the revocation is hired or continues to be affiliated with the child care home.

FISCAL NOTE

Victoria Grady, Deputy Chief of Finance, has determined that for each year of the first five years that the rules will be in effect, enforcing or administering the rules does not have foreseeable implications relating to costs or revenues of state or local governments.

GOVERNMENT GROWTH IMPACT STATEMENT

HHSC has determined that during the first five years that the rules will be in effect:

(1) the proposed rules will not create or eliminate a government program;

(2) implementation of the proposed rules will not affect the number of HHSC employee positions;

(3) implementation of the proposed rules will result in no assumed change in future legislative appropriations;

(4) the proposed rules will not affect fees paid to HHSC;

(5) the proposed rules will create a new regulation;

(6) the proposed rules will expand existing regulations;

(7) the proposed rules will not change the number of individuals subject to the rules; and

(8) the proposed rules will not affect the state's economy.

SMALL BUSINESS, MICRO-BUSINESS, AND RURAL COMMUNITY IMPACT ANALYSIS

Victoria Grady has also determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities. The rules do not impose any additional costs on small businesses, micro-businesses, or rural communities required to comply with the rules.

LOCAL EMPLOYMENT IMPACT

The proposed rules will not affect a local economy.

COSTS TO REGULATED PERSONS

Texas Government Code §2001.0045 does not apply to these rules because the rules are necessary to protect the health, safety, and welfare of the residents of Texas; do not impose a cost on regulated persons; and are necessary to implement legislation that does not specifically state that §2001.0045 applies to the rules.

PUBLIC BENEFIT AND COSTS

Rachel Ashworth-Mazerolle, Deputy Executive Commissioner for Child Care Regulation, has determined that for each year of the first five years the rules are in effect the public benefit will be increased protections for children in child care homes and greater accountability for child care homes receiving CCS subsidies.

Victoria Grady has also determined that for the first five years the rules are in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rules because the rules do not require any significant time or resources that would result in a cost to comply.

TAKINGS IMPACT ASSESSMENT

HHSC has determined that the proposal does not restrict or limit an owner's right to the owner's property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code §2007.043.

PUBLIC COMMENT

Written comments on the proposal, including information related to the cost, benefit, or effect of the proposed rules, as well as any applicable data, research, or analysis, may be submitted to Rules Coordination Office, P.O. Box 13247, Mail Code 4102, Austin, Texas 78711-3247, or street address 4601 West Guadalupe Street, Austin, Texas 78751; or emailed to HHSRulesCoordinationOffice@hhs.texas.gov.

To be considered, comments must be submitted no later than 31 days after the date of this issue of the Texas Register. Comments must be (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered before 5:00 p.m. on the last working day of the comment period; or (3) emailed before midnight on the last day of the comment period. If the last day to submit comments falls on a holiday, comments must be postmarked, shipped, or emailed before midnight on the following business day to be accepted. When emailing comments, please indicate "Comments on Proposed Rule 26R072" in the subject line.