Texas Department of Family and Protective Services Henry Whitman, in His Official Capacity as DFPS Commissioner Texas Health and Human Services Charles Smith, in His Official Capacity as HHSC Executive Commissioner and Corrections Corporation of America v. Grassroots Leadership, Inc., Gloria Valenzuela, E.G.S., for Herself and as Next Friend for A.E.S.G., F.D.G., for Herself and as Next Friend for N.R.C.D., Y.E.M.A., for Herself and as Next Friend for A.S.A., and the GEO Group, Inc.

Court of Appeals of Texas·Decided November 28, 2018·No. 03-18-00261-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-18-00261-CV

Texas Department of Family and Protective Services; Henry Whitman, in His Official Capacity as DFPS Commissioner; Texas Health and Human Services Commission;

Charles Smith, in his Official Capacity as HHSC Executive Commissioner;

Corrections Corporation of America; and The GEO Group, Inc., Appellants

v.

Grassroots Leadership, Inc.; Gloria Valenzuela; E. G. S., for herself and as next friend for A. E. S. G.; F. D. G., for herself and as next friend for N. R. C. D.; Y. E. M. A., for herself and as next friend for A. S. A.; Y. R. F., for herself and as next friend for C. R. R.;

S. J. M. G., for herself and as next friend for J. C. M.; K. G. R. M., for herself and as next friend for A. V. R.; C. R. P., for herself and as next friend for A. N. C. P.; B. E. F. R., for herself and as next friend for N. S. V.; S. E. G. E., for herself and as next friend for G. E. A.; Leser Julieta Lopez Herrera, for herself and as next friend for A. B.; and Rose Guzman de Marquez, for herself and as next friend for D. R., Appellees

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 353RD JUDICIAL DISTRICT NO. D-1-GN-15-004336, HONORABLE KARIN CRUMP, JUDGE PRESIDING

MEMORANDUM OPINION

This appeal concerns several parties’ challenges to the validity of a rule promulgated by the Texas Department of Family and Protective Services (DFPS). The challenged rule requires “family residential centers” (FRCs)—which serve as detention centers for immigrants and their minor children who are subject to federal civil-immigration proceedings—to be licensed as “general residential operations” (GROs) and, thus, subject to the State’s minimum standards for such

facilities.1 As they did below in a plea to the jurisdiction, appellants DFPS and its Commissioner and the Texas Health and Human Services Commission (HHSC) and its Executive Commissioner contend that the trial court should not have reached the merits of the rule challenge because each plaintiff below lacked standing to confer jurisdiction on the trial court. We agree with appellants and, for the following reasons, reverse the trial court’s judgment and render judgment granting appellants’ plea to the jurisdiction and dismissing appellees’ rule-challenge claims with prejudice.

BACKGROUND2

In 1985 a class of plaintiffs initiated a lawsuit against U.S. Immigration and Customs Enforcement (ICE) and other defendants in the District Court of Central California; many years later, the parties entered into a court-approved settlement of the lawsuit (the “Flores Settlement Agreement”). See Flores v. Lynch, 828 F.3d 898, 901–03 (9th Cir. 2016). The Flores Settlement Agreement “set[] out nationwide policy for the detention, release, and treatment of minors in the custody of [ICE].” Id. at 901. Under the Flores Settlement Agreement, unless detention is necessary

1 The Providers sued the Texas Department of Family and Protective Services (DFPS) and its Commissioner, Henry Whitman, because DFPS was at the time the agency that handled licensing of child-care facilities. Effective September 1, 2017, appellant Texas Health and Human Services Commission (HHSC) assumed responsibility for child-care licensing as a result of legislation directing that DFPS become a stand-alone agency that is separate from HHSC and will regulate child-care operations only to the extent of investigating child abuse, neglect, and exploitation. See Act of May 22, 2017, 85th Leg., R.S., ch. 316, §§ 22, 24, 38, 2017 Tex. Gen. Laws 601, 607, 612. In accordance with this transfer of responsibility, the relevant rules have been transferred to Title 26 of the Texas Administrative Code. See 43 Tex. Reg. 909 (2018) (announcing transfer of rules that contain minimum standards for child-care operations from DFPS to HHSC); see also, e.g., 26 Tex. Admin. Code § 748.7 (2018) (Health & Human Servs. Comm’n, How are these regulations applied to family residential centers?).

2 The facts in this section are derived from recitations in the trial court’s Amended Final Judgment.

to secure a minor’s appearance in court or to ensure safety, ICE must promptly release the minor to an adult family member or other suitable individual or entity. Id. at 902–03. Also, ICE must temporarily place all unreleased minors in an unsecure and “licensed program”—i.e., a facility that is “licensed by an appropriate State agency to provide residential, group, or foster care services for dependent children.” Id. at 903.

In response to increased numbers of Central Americans arriving at the U.S.-Mexico border during the summer of 2014, and to deter further arrivals, ICE adopted a policy of detaining all female-headed immigrant families. Flores v. Johnson, 212 F. Supp. 3d 864, 869 (C.D. Cal. 2015), aff’d in part, rev’d in part and remanded sub nom. Flores v. Lynch, 828 F.3d 898 (9th Cir. 2016). Detention under ICE’s new policy would last for the duration of the deportation proceedings that determine if the mothers and children are entitled to remain in the United States. Id. Notwithstanding the Flores Settlement Agreement, ICE’s new policy provided that the immigrants would be detained in secure, unlicensed facilities. Id. In federal court, the new ICE policy was held to violate the Flores Settlement Agreement. See id. at 879 (“Defendants cannot be in substantial compliance with the Agreement because the facilities are secure and non-licensed.”), aff’d in relevant part, 828 F.3d at 908–10.

ICE opened three new family detention facilities, two in south Texas—known as “Dilley” and “Karnes” due to their locations—and one in New Mexico, which was closed shortly thereafter. Flores, 828 F.3d at 904. This lawsuit concerns the Dilley and Karnes facilities, which are operated by private prison companies under contract with ICE. Appellant Corrections Corporation of America (currently known as CoreCivic) operates the Dilley facility; appellant GEO Group, Inc.,

operates the Karnes facility. The Karnes and Dilley facilities began detaining immigrant women and children in 2014.

DFPS did not attempt to regulate FRCs in Texas until it adopted an emergency rule on September 2, 2015. Before that time, DFPS had historically and consistently acknowledged that it lacked authority to license FRCs and declined to do so based upon that lack of authority. Shortly after the emergency rule was adopted, Grassroots Leadership initiated this lawsuit to challenge the emergency rule. The trial court issued a temporary injunction prohibiting DFPS from implementing the emergency rule but expressly permitting it to proceed through the traditional rulemaking procedures outlined in the Texas Government Code. See Tex. Gov’t Code §§ 2001.023–.029. DFPS followed the procedures for rulemaking and subsequently adopted Rule 748.7 (referred to by the parties and in the trial court’s judgment as the “FRC Rule”). See 26 Tex. Admin. Code § 748.7 (2018) (Health & Human Servs. Comm’n, How are these regulations applied to family residential centers?) (formerly codified at 40 Tex. Admin. Code § 748.7).

Grassroots Leadership amended its petition several times while the cause was pending below, adding additional plaintiffs: Gloria Valenzuela, who operates a day-care facility in El Paso, and several detainees, on behalf of themselves and their minor children. CoreCivic and GEO Group intervened as defendants. Appellees’ live petition asserts the following causes of action against appellants: (1) a challenge to the FRC Rule as allegedly exceeding DFPS’s statutory authority in contravention of the Human Resources Code, see Tex. Gov’t Code § 2001.038; (2) a request for declaratory relief under the Uniform Declaratory Judgments Act (UDJA), see Tex. Civ. Prac. &

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Texas Department of Family and Protective Services Henry Whitman, in His Official Capacity as DFPS Commissioner Texas Health and Human Services Charles Smith, in His Official Capacity as HHSC Executive Commissioner and Corrections Corporation of America v. Grassroots Leadership, Inc., Gloria Valenzuela, E.G.S., for Herself and as Next Friend for A.E.S.G., F.D.G., for Herself and as Next Friend for N.R.C.D., Y.E.M.A., for Herself and as Next Friend for A.S.A., and the GEO Group, Inc., (Tex. Ct. App. 2018).

Texas Department of Family and Protective Services Henry Whitman, in His Official Capacity as DFPS Commissioner Texas Health and Human Services Charles Smith, in His Official Capacity as HHSC Executive Commissioner and Corrections Corporation of America v. Grassroots Leadership, Inc., Gloria Valenzuela, E.G.S., for Herself and as Next Friend for A.E.S.G., F.D.G., for Herself and as Next Friend for N.R.C.D., Y.E.M.A., for Herself and as Next Friend for A.S.A., and the GEO Group, Inc. (Texas Department of Family and Protective Services Henry Whitman, in His Official Capacity as DFPS Commissioner Texas Health and Human Services Charles Smith, in His Official Capacity as HHSC Executive Commissioner and Corrections Corporation of America v. Grassroots Leadership, Inc., Gloria Valenzuela, E.G.S., for Herself and as Next Friend for A.E.S.G., F.D.G., for Herself and as Next Friend for N.R.C.D., Y.E.M.A., for Herself and as Next Friend for A.S.A., and the GEO Group, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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