Texas 2017 85th Regular

Texas Senate Bill SB11 House Committee Report / Bill

Filed 02/02/2025

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                    85R25382 MK-D
 By: Schwertner, et al. S.B. No. 11
 (Frank)
 Substitute the following for S.B. No. 11:  No.


 A BILL TO BE ENTITLED
 AN ACT
 relating to the administration of services provided by the
 Department of Family and Protective Services, including foster
 care, child protective services, and prevention and early
 intervention services.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 71.004, Family Code, is amended to read
 as follows:
 Sec. 71.004.  FAMILY VIOLENCE.  "Family violence" means:
 (1)  an act by a member of a family or household against
 another member of the family or household that is intended to result
 in physical harm, bodily injury, assault, or sexual assault or that
 is a threat that reasonably places the member in fear of imminent
 physical harm, bodily injury, assault, or sexual assault, but does
 not include defensive measures to protect oneself;
 (2)  abuse, as that term is defined by Sections
 261.001(1)(C), (E), (G), (H), (I), (J), [and] (K), and (M), by a
 member of a family or household toward a child of the family or
 household; or
 (3)  dating violence, as that term is defined by
 Section 71.0021.
 SECTION 2.  Section 162.005, Family Code, is amended by
 adding Subsection (c) to read as follows:
 (c)  The department shall ensure that each licensed
 child-placing agency, single source continuum contractor, or other
 person placing a child for adoption receives a copy of any portion
 of the report prepared by the department.
 SECTION 3.  Section 162.0062, Family Code, is amended by
 adding Subsection (a-1) to read as follows:
 (a-1)  If a child is placed with a prospective adoptive
 parent prior to adoption, the prospective adoptive parent is
 entitled to examine any record or other information relating to the
 child's health history, including the portion of the report
 prepared under Section 162.005 for the child that relates to the
 child's health.  The department, licensed child-placing agency,
 single source continuum contractor, or other person placing a child
 for adoption shall inform the prospective adoptive parent of the
 prospective adoptive parent's right to examine the records and
 other information relating to the child's health history.  The
 department, licensed child-placing agency, single source continuum
 contractor, or other person placing the child for adoption shall
 edit the records and information to protect the identity of the
 biological parents and any other person whose identity is
 confidential.
 SECTION 4.  Section 162.007, Family Code, is amended by
 amending Subsection (a) and adding Subsection (g) to read as
 follows:
 (a)  The health history of the child must include information
 about:
 (1)  the child's health status at the time of placement;
 (2)  the child's birth, neonatal, and other medical,
 psychological, psychiatric, and dental history information,
 including to the extent known by the department:
 (A)  whether the child's birth mother consumed
 alcohol during pregnancy; and
 (B)  whether the child has been diagnosed with
 fetal alcohol spectrum disorder;
 (3)  a record of immunizations for the child; and
 (4)  the available results of medical, psychological,
 psychiatric, and dental examinations of the child.
 (g)  In this section, "fetal alcohol spectrum disorder"
 means any of a group of conditions that can occur in a person whose
 mother consumed alcohol during pregnancy.
 SECTION 5.  Section 261.001, Family Code, is amended by
 amending Subdivisions (1), (4), and (5) and adding Subdivision (3)
 to read as follows:
 (1)  "Abuse" includes the following acts or omissions
 by a person:
 (A)  mental or emotional injury to a child that
 results in an observable and material impairment in the child's
 growth, development, or psychological functioning;
 (B)  causing or permitting the child to be in a
 situation in which the child sustains a mental or emotional injury
 that results in an observable and material impairment in the
 child's growth, development, or psychological functioning;
 (C)  physical injury that results in substantial
 harm to the child, or the genuine threat of substantial harm from
 physical injury to the child, including an injury that is at
 variance with the history or explanation given and excluding an
 accident or reasonable discipline by a parent, guardian, or
 managing or possessory conservator that does not expose the child
 to a substantial risk of harm;
 (D)  failure to make a reasonable effort to
 prevent an action by another person that results in physical injury
 that results in substantial harm to the child;
 (E)  sexual conduct harmful to a child's mental,
 emotional, or physical welfare, including conduct that constitutes
 the offense of continuous sexual abuse of young child or children
 under Section 21.02, Penal Code, indecency with a child under
 Section 21.11, Penal Code, sexual assault under Section 22.011,
 Penal Code, or aggravated sexual assault under Section 22.021,
 Penal Code;
 (F)  failure to make a reasonable effort to
 prevent sexual conduct harmful to a child;
 (G)  compelling or encouraging the child to engage
 in sexual conduct as defined by Section 43.01, Penal Code,
 including compelling or encouraging the child in a manner that
 constitutes an offense of trafficking of persons under Section
 20A.02(a)(7) or (8), Penal Code, prostitution under Section
 43.02(b), Penal Code, or compelling prostitution under Section
 43.05(a)(2), Penal Code;
 (H)  causing, permitting, encouraging, engaging
 in, or allowing the photographing, filming, or depicting of the
 child if the person knew or should have known that the resulting
 photograph, film, or depiction of the child is obscene as defined by
 Section 43.21, Penal Code, or pornographic;
 (I)  the current use by a person of a controlled
 substance as defined by Chapter 481, Health and Safety Code, in a
 manner or to the extent that the use results in physical, mental, or
 emotional injury to a child;
 (J)  causing, expressly permitting, or
 encouraging a child to use a controlled substance as defined by
 Chapter 481, Health and Safety Code;
 (K)  causing, permitting, encouraging, engaging
 in, or allowing a sexual performance by a child as defined by
 Section 43.25, Penal Code; [or]
 (L)  knowingly causing, permitting, encouraging,
 engaging in, or allowing a child to be trafficked in a manner
 punishable as an offense under Section 20A.02(a)(5), (6), (7), or
 (8), Penal Code, or the failure to make a reasonable effort to
 prevent a child from being trafficked in a manner punishable as an
 offense under any of those sections; or
 (M)  forcing or coercing a child to enter into a
 marriage.
 (3)  "Exploitation" means the illegal or improper use
 of a child or of the resources of a child for monetary or personal
 benefit, profit, or gain by an employee, volunteer, or other
 individual working under the auspices of a facility or program as
 further described by rule or policy.
 (4)  "Neglect":
 (A)  includes:
 (i)  the leaving of a child in a situation
 where the child would be exposed to a substantial risk of physical
 or mental harm, without arranging for necessary care for the child,
 and the demonstration of an intent not to return by a parent,
 guardian, or managing or possessory conservator of the child;
 (ii)  the following acts or omissions by a
 person:
 (a)  placing a child in or failing to
 remove a child from a situation that a reasonable person would
 realize requires judgment or actions beyond the child's level of
 maturity, physical condition, or mental abilities and that results
 in bodily injury or a substantial risk of immediate harm to the
 child;
 (b)  failing to seek, obtain, or follow
 through with medical care for a child, with the failure resulting in
 or presenting a substantial risk of death, disfigurement, or bodily
 injury or with the failure resulting in an observable and material
 impairment to the growth, development, or functioning of the child;
 (c)  the failure to provide a child
 with food, clothing, or shelter necessary to sustain the life or
 health of the child, excluding failure caused primarily by
 financial inability unless relief services had been offered and
 refused;
 (d)  placing a child in or failing to
 remove the child from a situation in which the child would be
 exposed to a substantial risk of sexual conduct harmful to the
 child; or
 (e)  placing a child in or failing to
 remove the child from a situation in which the child would be
 exposed to acts or omissions that constitute abuse under
 Subdivision (1)(E), (F), (G), (H), or (K) committed against another
 child; [or]
 (iii)  the failure by the person responsible
 for a child's care, custody, or welfare to permit the child to
 return to the child's home without arranging for the necessary care
 for the child after the child has been absent from the home for any
 reason, including having been in residential placement or having
 run away; or
 (iv)  a negligent act or omission by an
 employee, volunteer, or other individual working under the auspices
 of a facility or program, including failure to comply with an
 individual treatment plan, plan of care, or individualized service
 plan, that causes or may cause substantial emotional harm or
 physical injury to, or the death of, a child served by the facility
 or program as further described by rule or policy; and
 (B)  does not include the refusal by a person
 responsible for a child's care, custody, or welfare to permit the
 child to remain in or return to the child's home resulting in the
 placement of the child in the conservatorship of the department if:
 (i)  the child has a severe emotional
 disturbance;
 (ii)  the person's refusal is based solely on
 the person's inability to obtain mental health services necessary
 to protect the safety and well-being of the child; and
 (iii)  the person has exhausted all
 reasonable means available to the person to obtain the mental
 health services described by Subparagraph (ii).
 (5)  "Person responsible for a child's care, custody,
 or welfare" means a person who traditionally is responsible for a
 child's care, custody, or welfare, including:
 (A)  a parent, guardian, managing or possessory
 conservator, or foster parent of the child;
 (B)  a member of the child's family or household
 as defined by Chapter 71;
 (C)  a person with whom the child's parent
 cohabits;
 (D)  school personnel or a volunteer at the
 child's school; [or]
 (E)  personnel or a volunteer at a public or
 private child-care facility that provides services for the child or
 at a public or private residential institution or facility where
 the child resides; or
 (F)  an employee, volunteer, or other person
 working under the supervision of a licensed or unlicensed
 child-care facility, including a family home, residential
 child-care facility, employer-based day-care facility, or shelter
 day-care facility, as those terms are defined in Chapter 42, Human
 Resources Code.
 SECTION 6.  Subchapter A, Chapter 261, Family Code, is
 amended by adding Section 261.004 to read as follows:
 Sec. 261.004.  TRACKING OF RECURRENCE OF CHILD ABUSE OR
 NEGLECT REPORTS. (a)  The department shall collect and monitor
 data regarding repeated reports of abuse or neglect:
 (1)  involving the same child, including reports of
 abuse or neglect of the child made while the child resided in other
 households and reports of abuse or neglect of the child by different
 alleged perpetrators made while the child resided in the same
 household; or
 (2)  by the same alleged perpetrator.
 (a-1)  In monitoring reports of abuse or neglect under
 Subsection (a), the department shall group together separate
 reports involving differing children residing in the same
 household.
 (b)  The department shall consider any report collected
 under Subsection (a) involving any child or adult who is a part of a
 child's household when making case priority determinations or when
 conducting service or safety planning for the child or the child's
 family.
 SECTION 7.  Section 261.101(b), Family Code, is amended to
 read as follows:
 (b)  If a professional has cause to believe that a child has
 been abused or neglected or may be abused or neglected, or that a
 child is a victim of an offense under Section 21.11, Penal Code, and
 the professional has cause to believe that the child has been abused
 as defined by Section 261.001 [or 261.401], the professional shall
 make a report not later than the 48th hour after the hour the
 professional first suspects that the child has been or may be abused
 or neglected or is a victim of an offense under Section 21.11, Penal
 Code.  A professional may not delegate to or rely on another person
 to make the report.  In this subsection, "professional" means an
 individual who is licensed or certified by the state or who is an
 employee of a facility licensed, certified, or operated by the
 state and who, in the normal course of official duties or duties for
 which a license or certification is required, has direct contact
 with children.  The term includes teachers, nurses, doctors,
 day-care employees, employees of a clinic or health care facility
 that provides reproductive services, juvenile probation officers,
 and juvenile detention or correctional officers.
 SECTION 8.  Section 263.401, Family Code, is amended to read
 as follows:
 Sec. 263.401.  DISMISSAL AFTER ONE YEAR; NEW TRIALS;
 EXTENSION. (a)  Unless the court has commenced the trial on the
 merits or granted an extension under Subsection (b) or (b-1), on the
 first Monday after the first anniversary of the date the court
 rendered a temporary order appointing the department as temporary
 managing conservator, the court's jurisdiction over [court shall
 dismiss] the suit affecting the parent-child relationship filed by
 the department that requests termination of the parent-child
 relationship or requests that the department be named conservator
 of the child is terminated and the suit is automatically dismissed
 without a court order.
 (b)  Unless the court has commenced the trial on the merits,
 the court may not retain the suit on the court's docket after the
 time described by Subsection (a) unless the court finds that
 extraordinary circumstances necessitate the child remaining in the
 temporary managing conservatorship of the department and that
 continuing the appointment of the department as temporary managing
 conservator is in the best interest of the child. If the court
 makes those findings, the court may retain the suit on the court's
 docket for a period not to exceed 180 days after the time described
 by Subsection (a). If the court retains the suit on the court's
 docket, the court shall render an order in which the court:
 (1)  schedules the new date on which the suit will be
 automatically dismissed if the trial on the merits has not
 commenced, which date must be not later than the 180th day after the
 time described by Subsection (a);
 (2)  makes further temporary orders for the safety and
 welfare of the child as necessary to avoid further delay in
 resolving the suit; and
 (3)  sets the trial on the merits on a date not later
 than the date specified under Subdivision (1).
 (b-1)  If, after commencement of the initial trial on the
 merits within the time required by Subsection (a) or (b), the court
 grants a motion for a new trial or mistrial, or the case is remanded
 to the court by an appellate court following an appeal of the
 court's final order, the court shall retain the suit on the court's
 docket and render an order in which the court:
 (1)  schedules a new date on which the suit will be
 automatically dismissed if the new trial has not commenced, which
 must be a date not later than the 180th day after the date on which:
 (A)  the motion for a new trial or mistrial is
 granted; or
 (B)  the appellate court remanded the case;
 (2)  makes further temporary orders for the safety and
 welfare of the child as necessary to avoid further delay in
 resolving the suit; and
 (3)  sets the new trial on the merits for a date not
 later than the date specified under Subdivision (1).
 (c)  If the court grants an extension under Subsection (b) or
 (b-1) but does not commence the trial on the merits before the
 dismissal date, the court's jurisdiction over [court shall dismiss]
 the suit is terminated and the suit is automatically dismissed
 without a court order. The court may not grant an additional
 extension that extends the suit beyond the required date for
 dismissal under Subsection (b) or (b-1), as applicable.
 SECTION 9.  Section 264.018, Family Code, is amended by
 adding Subsections (d-1) and (d-2) to read as follows:
 (d-1)  Except as provided by Subsection (d-2), as soon as
 possible but not later than 24 hours after a change in placement of
 a child in the conservatorship of the department, the department
 shall give notice of the placement change to the managed care
 organization that contracts with the commission to provide health
 care services to the child under the STAR Health program.  The
 managed care organization shall give notice of the placement change
 to the primary care physician listed in the child's health passport
 before the end of the second business day after the day the
 organization receives the notification from the department.
 (d-2)  In this subsection, "catchment area" has the meaning
 assigned by Section 264.152.  In a catchment area in which
 community-based foster care has been implemented, the single source
 continuum contractor that has contracted with the commission to
 provide foster care services in that catchment area shall, as soon
 as possible but not later than 24 hours after a change in placement
 of a child in the conservatorship of the department, give notice of
 the placement change to the managed care organization that
 contracts with the commission to provide health care services to
 the child under the STAR Health program.  The managed care
 organization shall give notice of the placement change to the
 child's primary care physician in accordance with Subsection (d-1).
 SECTION 10.  (a)  Subchapter B, Chapter 264, Family Code, is
 amended by adding Section 264.1076 to read as follows:
 Sec. 264.1076.  MEDICAL EXAMINATION REQUIRED. (a)  This
 section applies only to a child who has been taken into the
 conservatorship of the department and remains in the
 conservatorship of the department for more than three business
 days.
 (b)  The department shall ensure that each child described by
 Subsection (a) is examined and receives a mental health screening
 conducted by a physician or other health care provider authorized
 under state law to conduct medical examinations not later than the
 end of:
 (1)  the third business day after the date the child
 enters the conservatorship of the department; or
 (2)  the fifth business day after the date the child
 enters the conservatorship of the department, if the child is
 located in a rural area, as that term is defined by Section 845.002,
 Insurance Code.
 (c)  Whenever possible, the department shall schedule the
 medical examination and mental health screening for a child before
 the last business day of the appropriate time frame provided under
 Subsection (b).
 (d)  The department shall collaborate with the commission
 and relevant medical practitioners to develop guidelines for the
 medical examination and mental health screening conducted under
 this section, including guidelines on the components to be included
 in the examination and the screening.
 (e)  Not later than December 31, 2019, the department shall
 submit a report to the standing committees of the house of
 representatives and the senate with primary jurisdiction over child
 protective services and foster care evaluating the statewide
 implementation of the medical examination and mental health
 screening required by this section.  The report must include the
 level of compliance with the requirements of this section in each
 region of the state.
 (b)  Section 264.1076, Family Code, as added by this section,
 applies only to a child who enters the conservatorship of the
 Department of Family and Protective Services on or after the
 effective date of this Act.  A child who enters the conservatorship
 of the Department of Family and Protective Services before the
 effective date of this Act is governed by the law in effect on the
 date the child entered the conservatorship of the department, and
 the former law is continued in effect for that purpose.
 (c)  The Department of Family and Protective Services shall
 implement Section 264.1076, Family Code, as added by this section,
 not later than December 31, 2018.
 SECTION 11.  Section 264.124, Family Code, is amended by
 adding Subsection (e) to read as follows:
 (e)  On receipt of the verification required under
 Subsection (b), or as provided by Subsection (d), the department
 shall provide monetary assistance to a foster parent for full-time
 or part-time day-care services for a foster child. The department
 may not deny monetary assistance to the foster parent as long as the
 foster parent is employed on a full-time or part-time basis.
 SECTION 12.  (a)  Subchapter B, Chapter 264, Family Code, is
 amended by adding Sections 264.1261 and 264.128 to read as follows:
 Sec. 264.1261.  FOSTER CARE CAPACITY NEEDS PLAN. (a)  In
 this section, "community-based foster care" has the meaning
 assigned by Section 264.152.
 (b)  Appropriate department management personnel from a
 child protective services region in which community-based foster
 care has not been implemented, in collaboration with foster care
 providers, faith-based entities, and child advocates in that
 region, shall use data collected by the department on foster care
 capacity needs and availability of each type of foster care and
 kinship placement in the region to create a plan to address the
 substitute care capacity needs in the region. The plan must
 identify both short-term and long-term goals and strategies for
 addressing those capacity needs.
 (c)  A foster care capacity needs plan developed under
 Subsection (b) must be:
 (1)  submitted to and approved by the commissioner; and
 (2)  updated annually.
 (d)  The department shall publish each initial foster care
 capacity needs plan and each annual update to a plan on the
 department's Internet website.
 Sec. 264.128.  SINGLE CHILD PLAN OF SERVICE INITIATIVE.
 (a)  In this section, "community-based foster care" has the meaning
 assigned by Section 264.152.
 (b)  In regions of the state where community-based foster
 care has not been implemented, the department shall:
 (1)  collaborate with child-placing agencies to
 implement the single child plan of service model developed under
 the single child plan of service initiative; and
 (2)  ensure that a single child plan of service is
 developed for each child in foster care in those regions.
 (b)  Notwithstanding Section 264.128(b), Family Code, as
 added by this section, the Department of Family and Protective
 Services shall develop and implement a single child plan of service
 for each child in foster care in a region of the state described by
 that section not later than September 1, 2017.
 SECTION 13.  (a) Chapter 264, Family Code, is amended by
 adding Subchapter B-1 to read as follows:
 SUBCHAPTER B-1. COMMUNITY-BASED FOSTER CARE
 Sec. 264.151.  LEGISLATIVE FINDINGS AND INTENT. (a) The
 legislature finds that:
 (1)  for more than 30 years, the child welfare system in
 Texas has been centralized and managed by statutes and rules that
 impose a uniform system on communities statewide and ignore the
 fundamental differences between regions;
 (2)  in order for the department to effectively provide
 child welfare services, as required by state and federal law, the
 department shall consider and implement fundamental structural
 changes to the provision of child protective and welfare services;
 (3)  child welfare services that are community-based
 and family-centered, are monitored by community stakeholders, and
 have effective accountability standards regarding performance
 outcomes and practices have been found to lead to better outcomes
 for children who are victims of abuse and neglect; and
 (4)  community-based foster care would align outcomes
 to assist the state in achieving the state's goal of substantial
 gains regarding performance outcomes in child safety, permanency,
 and well-being.
 (b)  It is the intent of the legislature that the department
 contract with community-based, nonprofit entities that have the
 ability to provide child welfare services. The services provided
 by the entities must include direct case management to ensure child
 safety, permanency, and well-being, in accordance with state and
 federal child welfare goals.
 (c)  It is the intent of the legislature that the provision
 of community-based foster care for children be implemented with
 measurable goals relating to:
 (1)  the safety of children in placements;
 (2)  the placement of children in each child's home
 community;
 (3)  the provision of services to children in the least
 restrictive environment possible and, if possible, in a family home
 environment;
 (4)  minimal placement changes for children;
 (5)  the maintenance of contact between children and
 their families and other important persons;
 (6)  the placement of children with siblings;
 (7)  the provision of services that respect each
 child's culture;
 (8)  the preparation of children and youth in foster
 care for adulthood;
 (9)  the provision of opportunities, experiences, and
 activities for children and youth in foster care that are available
 to children and youth who are not in foster care;
 (10)  the participation by children and youth in making
 decisions relating to their own lives;
 (11)  the reunification of children with the biological
 parents of the children when possible; and
 (12)  the promotion of the placement of children with
 relative or kinship caregivers if reunification is not possible.
 Sec. 264.152.  DEFINITIONS. In this subchapter:
 (1)  "Alternative caregiver" means a person who is not
 the foster parent of the child and who provides temporary care for
 the child for more than 12 hours but less than 60 days.
 (2)  "Case management" means the provision of case
 management services to a child for whom the department has been
 appointed temporary or permanent managing conservator or the
 child's family, relative or kinship caregivers, a young adult in
 extended foster care, or a child who has been placed in the
 catchment area through the Interstate Compact on the Placement of
 Children, and includes:
 (A)  caseworker visits with the child;
 (B)  family and caregiver visits;
 (C)  convening and conducting permanency planning
 meetings;
 (D)  the development and revision of the child and
 family plans of service, including a permanency plan and goals for a
 child or young adult in care;
 (E)  the coordination and monitoring of services
 required by the child and the child's family;
 (F)  the assumption of court-related duties
 regarding the child, including:
 (i)  providing any required notifications or
 consultations;
 (ii)  preparing court reports;
 (iii)  attending judicial and permanency
 hearings, trials, and mediations;
 (iv)  complying with applicable court
 orders; and
 (v)  ensuring the child is progressing
 toward the goal of permanency within state and federally mandated
 guidelines; and
 (G)  any other function or service that the
 department determines necessary to allow a single source continuum
 contractor to assume responsibility for case management.
 (3)  "Catchment area" means a geographic service area
 for providing child protective services that is identified as part
 of the community-based foster care redesign.
 (4)  "Community-based foster care" means the
 redesigned foster care services system required by Chapter 598
 (S.B. 218), Acts of the 82nd Legislature, Regular Session, 2011.
 Sec. 264.154.  READINESS REVIEW PROCESS FOR COMMUNITY-BASED
 FOSTER CARE CONTRACTOR. (a) The department shall develop a formal
 review process to assess the ability of a single source continuum
 contractor to satisfy the responsibilities and administrative
 requirements of delivering foster care services, including the
 contractor's ability to provide:
 (1)  placement services for children and families;
 (2)  case management services for children and
 families;
 (3)  evidence-based, promising practice, or
 evidence-informed supports for children and families; and
 (4)  sufficient available capacity for inpatient and
 outpatient services and supports for children at all service levels
 who have previously been placed in the catchment area.
 (b)  As part of the readiness review process, the single
 source continuum contractor must prepare a plan detailing the
 methods by which the contractor will avoid or eliminate conflicts
 of interest.  The department may not transfer services to the
 contractor until the department has determined the plan is
 adequate.
 (c)  The department must develop the review process under
 Subsection (a) before the department may expand community-based
 foster care outside of the initial catchment areas where
 community-based foster care has been implemented.
 (d)  The department must conduct a readiness review for a
 single source continuum contractor before the transfer of placement
 services to the contractor and before the transfer of case
 management services to the contractor. The department may not
 transfer those services to a contractor unless the readiness review
 demonstrates that the contractor is able to adequately deliver the
 services.
 Sec. 264.155.  EXPANSION OF COMMUNITY-BASED FOSTER CARE.
 (a) Not later than December 31, 2019, the department shall:
 (1)  identify not more than eight catchment areas in
 the state that are best suited to implement community-based foster
 care of which not more than two catchment areas may be identified as
 best suited to implement the transfer of case management services
 to a single source continuum contractor;
 (2)  create an implementation plan for those catchment
 areas that includes a timeline for implementation;
 (3)  following the readiness review process under
 Section 264.154 and subject to the availability of funds, implement
 community-based foster care in those catchment areas; and
 (4)  following the implementation of community-based
 foster care services in those catchment areas, evaluate the
 implementation process and single source continuum contractor
 performance in each catchment area.
 (b)  Following the selection of the catchment areas under
 Subsection (a), the department shall annually, based on the
 availability of funding:
 (1)  provide a report to the legislature that details
 the readiness of any remaining catchment areas in which
 community-based foster care services have not been implemented; and
 (2)  subject to the availability of funds, the
 readiness of the catchment areas, and the feasibility of
 implementing community-based foster care in those areas, begin
 implementing community-based foster care in those areas in
 accordance with the timeline developed for those areas under
 Subsection (a)(2) and the readiness review process developed under
 Section 264.154.
 (c)  In expanding community-based foster care, the
 department may change the geographic boundaries of catchment areas
 as necessary to align with specific communities.
 (d)  The department shall ensure the continuity of services
 for children and families during the transition period to
 community-based foster care in a catchment area.
 (e)  In implementing community-based foster care in a
 catchment area, the department may not transfer case management
 services to a single source continuum contractor in that catchment
 area until the department has successfully completed the transfer
 of placement services to the contractor.
 Sec. 264.156.  COMMUNITY ENGAGEMENT GROUP. (a) The
 department shall create a community engagement group in each
 catchment area to assist with the implementation of community-based
 foster care. The department may create more than one community
 engagement group in a catchment area, as appropriate. Membership
 in a community engagement group may include:
 (1)  representatives from:
 (A)  the department;
 (B)  the judiciary;
 (C)  school districts in the catchment area;
 (D)  law enforcement;
 (E)  the local mental health authority;
 (F)  the children's advocacy center, if
 applicable;
 (G)  a child-placing agency; and
 (H)  child and family service providers,
 including prevention service providers;
 (2)  a court-appointed volunteer advocate, if
 available;
 (3)  a parent or a person who specializes in parental
 rights, including a family law attorney; and
 (4)  community leaders from the catchment area,
 including leaders from local political subdivisions.
 (b)  The department shall adopt rules governing community
 engagement groups and the maximum number of members in a group.
 (c)  Established stakeholder organizations in a catchment
 area, including child welfare boards, may request to be designated
 by the department as the community engagement group for that
 catchment area.
 (d)  The community engagement group shall:
 (1)  provide feedback to the department on the
 implementation of community-based foster care in the catchment area
 and the ongoing operation of community-based foster care in the
 catchment area;
 (2)  identify and report problems arising from the
 implementation process to the department;
 (3)  identify, develop, promote, or facilitate the use
 of local resources, including prevention and early intervention
 resources, to supplement community-based foster care services; and
 (4)  serve as a facilitator for integrating the
 voluntary participation of local organizations that provide family
 and child welfare services into community-based foster care.
 (e)  Chapter 551, Government Code, applies to a community
 engagement group.
 Sec. 264.157.  QUALIFICATIONS OF SINGLE SOURCE CONTINUUM
 CONTRACTOR. To be eligible to enter into a contract with the
 department to serve as a single source continuum contractor to
 provide foster care service delivery, an entity must be a nonprofit
 or governmental entity that:
 (1)  is licensed as a service provider by the
 department;
 (2)  has an organizational mission and has demonstrated
 experience in the delivery of services to children and families;
 and
 (3)  has the ability to provide all of the case
 management and placement services and perform all of the duties of a
 single source continuum contractor required under this subchapter
 or that can provide a plan to gain that ability during the
 implementation of community-based foster care in a catchment area.
 Sec. 264.158.  REQUIRED CONTRACT PROVISIONS. A contract
 with a single source continuum contractor to provide foster care
 services in a catchment area must include provisions that:
 (1)  specify performance outcomes and financial
 incentives for exceeding any specified performance outcomes;
 (2)  establish conditions for the single source
 continuum contractor's access to relevant department data and
 require the participation of the contractor in the data access and
 standards governance council created under Section 264.159;
 (3)  require the single source continuum contractor to
 create a single process for the training and use of alternative
 caregivers for all child-placing agencies in the catchment area to
 facilitate reciprocity of licenses for alternative caregivers
 between agencies, including respite and overnight care providers,
 as those terms are defined by department rule; and
 (4)  require the single source continuum contractor to
 maintain a diverse network of service providers that offer a range
 of foster capacity options and that can accommodate children from
 diverse cultural backgrounds.
 Sec. 264.159.  DATA ACCESS AND STANDARDS GOVERNANCE COUNCIL.
 (a) The department shall create a data access and standards
 governance council to develop protocols for access by single source
 continuum contractors to the department's data to allow the
 contractors to perform case management functions.
 (b)  The department shall develop rules and processes for the
 operation of the council. Each single source continuum contractor
 that has entered into a contract with the department to provide
 services under this subchapter shall participate in the council.
 The council may also include:
 (1)  representatives of entities that manage court
 proceedings;
 (2)  the courts;
 (3)  the department;
 (4)  health care providers; and
 (5)  any other entities the department considers
 necessary.
 (c)  The council shall:
 (1)  develop protocols for the access, management,
 security, and retention of case data that is shared between the
 department and a single source continuum contractor;
 (2)  approve any changes to protocols at the request of
 a service provider or the department; and
 (3)  conduct any other additional duties related to
 data sharing protocols as considered necessary by the department.
 (d)  The department may assign the duties of the council to
 any existing office or division of the department with functions
 similar to the duties of the council. Each single source continuum
 contractor and any additional entities as described by Subsection
 (b) shall participate in the development of protocols and any other
 duties assigned under this subsection.
 Sec. 264.160.  TRANSFER OF CASE MANAGEMENT SERVICES TO
 SINGLE SOURCE CONTINUUM CONTRACTOR. (a) In each initial catchment
 area where community-based foster care has been implemented or a
 contract with a single source continuum contractor has been
 executed before June 1, 2017, the department shall transfer to the
 single source continuum contractor providing services in that area:
 (1)  the case management of children and families
 receiving services from that contractor; and
 (2)  family reunification support services to be
 provided after a child receiving services from the contractor is
 returned to the child's family for the period of time ordered by the
 court.
 (b)  The department shall collaborate with a single source
 continuum contractor to establish an initial case transfer planning
 team to:
 (1)  address any necessary data transfer;
 (2)  establish file transfer procedures; and
 (3)  notify relevant persons regarding the transfer of
 services to the contractor.
 Sec. 264.161.  LIABILITY INSURANCE REQUIREMENTS. A single
 source continuum contractor and any subcontractor of the single
 source continuum contractor providing community-based foster care
 services shall maintain minimum insurance coverage, as required in
 the contract with the department, to minimize the risk of
 insolvency and protect against damages.  The executive commissioner
 may adopt rules to implement this section.
 Sec. 264.162.  REVIEW OF CONTRACTOR PERFORMANCE. (a) The
 department shall develop a formal review process to evaluate a
 single source continuum contractor's implementation of placement
 services and case management services in a catchment area.
 (b)  The department shall conduct the review for a single
 source continuum contractor after the contractor completes the
 implementation of placement services in a catchment area, and after
 the contractor completes the implementation of case management
 services in the catchment area.
 Sec. 264.163.  NOTICE REQUIRED FOR EARLY TERMINATION OF
 CONTRACT. (a) A single source continuum contractor may terminate a
 contract entered into under this subchapter by providing notice to
 the department of the contractor's intent to terminate the contract
 not later than the 90th day before the date of the termination.
 (b)  The department may terminate a contract entered into
 with a single source continuum contractor under this subchapter by
 providing notice to the contractor of the department's intent to
 terminate the contract not later than the 30th day before the date
 of termination.
 Sec. 264.164.  CONTINGENCY PLAN IN EVENT OF EARLY CONTRACT
 TERMINATION. (a) In each catchment area in which community-based
 foster care is implemented, the department shall create a
 contingency plan to ensure the continuity of services for children
 and families in the catchment area in the event of an early
 termination of the contract with the single source continuum
 contractor providing foster care services in that catchment area.
 (b)  If a single source continuum contractor gives notice to
 the department of an early contract termination, the department may
 enter into a contract with a different contractor for the sole
 purpose of assuming the contract that is being terminated.
 Sec. 264.165.  REVIEW OF CONTRACTOR DECISIONS BY DEPARTMENT.
 (a) Notwithstanding any other provision of this subchapter
 governing the transfer of case management authority to a single
 source continuum contractor, the department shall review a
 contractor's decision with respect to a child's permanency goal.
 The department must approve or disapprove a contractor's
 recommended permanency goal for a child not later than 72 hours
 after the department receives the recommendation from the
 contractor.
 (b)  Subsection (a) may not be construed to limit or restrict
 the authority of the department to:
 (1)  include necessary oversight measures and review
 processes to maintain compliance with federal and state
 requirements in a contract with a single source continuum
 contractor; or
 (2)  attend court proceedings related to a child in the
 conservatorship of the department, including any hearings, trials,
 or mediations.
 (c)  The department shall develop an internal dispute
 resolution process to decide disagreements between a single source
 continuum contractor and the department.
 Sec. 264.166.  STATUTORY DUTIES ASSUMED BY CONTRACTOR.
 Except as provided by Section 264.167, a single source continuum
 contractor providing foster care services in a catchment area must,
 either directly or through subcontractors, assume the statutory
 duties of the department in connection with the delivery of foster
 care services in that catchment area.
 Sec. 264.167.  CONTINUING DUTIES OF DEPARTMENT. In a
 catchment area in which a single source continuum contractor is
 providing family-based safety services, community-based foster
 care services, or integrated care coordination, legal
 representation of the department in an action under this code shall
 be provided in accordance with Section 264.009.
 Sec. 264.168.  CONFIDENTIALITY. (a)  The records of a single
 source continuum contractor relating to the provision of
 community-based foster care services in a catchment area are
 subject to Chapter 552, Government Code, in the same manner as the
 records of the department are subject to that chapter.
 (b)  Subchapter C, Chapter 261, regarding the
 confidentiality of certain case information, applies to the records
 of a single source continuum contractor in relation to the
 provision of services by the contractor.
 Sec. 264.169.  ATTORNEY-CLIENT PRIVILEGE. An employee,
 agent, or representative of a single source continuum contractor is
 considered to be a client's representative of the department for
 purposes of the privilege under Rule 503, Texas Rules of Evidence,
 as that privilege applies to communications with a prosecuting
 attorney or other attorney representing the department, or the
 attorney's representatives, in a proceeding under this subtitle.
 Sec. 264.170.  CHILD PROTECTIVE SERVICES LEGISLATIVE
 OVERSIGHT COMMITTEE. (a) In this section, "committee" means the
 Child Protective Services Legislative Oversight Committee
 established under this section.
 (b)  The Child Protective Services Legislative Oversight
 Committee is created to facilitate the transfer of functions from
 the department to single source continuum contractors under this
 subchapter with minimal negative effect on the delivery of services
 to which those functions relate.
 (c)  The committee is composed of 11 voting members, as
 follows:
 (1)  four members of the senate, appointed by the
 lieutenant governor;
 (2)  four members of the house of representatives,
 appointed by the speaker of the house of representatives; and
 (3)  three members of the public, appointed by the
 governor.
 (d)  The commissioner of the department serves as an ex
 officio, nonvoting member of the committee.
 (e)  A member of the committee serves at the pleasure of the
 appointing official.
 (f)  The lieutenant governor and the speaker of the house of
 representatives shall each designate a presiding co-chair from
 among their respective appointments.
 (g)  A member of the committee may not receive compensation
 for serving on the committee but is entitled to reimbursement for
 travel expenses incurred by the member while conducting the
 business of the committee as provided by the General Appropriations
 Act.
 (h)  The committee shall:
 (1)  facilitate the transfer of functions from the
 department to single source continuum contractors with minimal
 negative effect on the delivery of services to which those
 functions relate;
 (2)  with assistance from the department, advise the
 commissioner of the department concerning:
 (A)  the functions to be transferred under this
 subchapter and the funds and obligations that are related to the
 functions;
 (B)  the transfer of the functions and related
 records, funds, and obligations by the department that are required
 by this subchapter; and
 (C)  the reorganization of the department's
 administrative structure as required by the implementation of
 community-based foster care under this subchapter and other
 provisions enacted by the 85th Legislature that become law; and
 (3)  meet at least semiannually at the call of either
 chair, in addition to meeting at other times as determined
 appropriate by either chair.
 (i)  Chapter 551, Government Code, applies to the committee.
 (j)  The committee shall submit a report to the governor,
 lieutenant governor, speaker of the house of representatives, and
 legislature not later than December 1 of each even-numbered year.
 The report must include an update on the progress of and issues
 related to:
 (1)  the implementation of community-based foster
 care, including the need for any additional statutory changes
 required to ensure the achievement of the stated purposes of this
 subchapter; and
 (2)  the reorganization of the department's
 administrative structure as necessary during the implementation of
 community-based foster care under this subchapter and other
 provisions enacted by the 85th Legislature that become law.
 Sec. 264.171.  PILOT PROGRAM FOR FAMILY-BASED SAFETY
 SERVICES.  (a)  In this section, "case management services" means
 the direct delivery and coordination of a network of formal and
 informal activities and services in a catchment area where the
 department has entered into, or is in the process of entering into,
 a contract with a single source continuum contractor to provide
 family-based safety services and case management and includes:
 (1)  caseworker visits with the child and all
 caregivers;
 (2)  family visits;
 (3)  family group conferencing or family group
 decision-making;
 (4)  development of the family plan of service;
 (5)  monitoring, developing, securing, and
 coordinating services;
 (6)  evaluating the progress of children, caregivers,
 and families receiving services;
 (7)  assuring that the rights of children, caregivers,
 and families receiving services are protected;
 (8)  duties relating to family-based safety services
 ordered by a court, including:
 (A)  providing any required notifications or
 consultations;
 (B)  preparing court reports;
 (C)  attending judicial hearings, trials, and
 mediations;
 (D)  complying with applicable court orders; and
 (E)  ensuring the child is progressing toward the
 goal of permanency within state and federally mandated guidelines;
 and
 (9)  any other function or service that the department
 determines is necessary to allow a single source continuum
 contractor to assume responsibility for case management.
 (b)  The department shall develop and implement in two child
 protective services regions of the state a pilot program under
 which the commission contracts with a single nonprofit entity that
 has an organizational mission focused on child welfare or a
 governmental entity in each region to provide family-based safety
 services and case management for children and families receiving
 family-based safety services.  The contract must include a
 transition plan for the provision of services that ensures the
 continuity of services for children and families in the selected
 regions.
 (c)  The contract with an entity must include
 performance-based provisions that require the entity to achieve the
 following outcomes for families receiving services from the entity:
 (1)  a decrease in recidivism;
 (2)  an increase in protective factors; and
 (3)  any other performance-based outcome specified by
 the department.
 (d)  The commission may only contract for implementation of
 the pilot program with entities that the department considers to
 have the capacity to provide, either directly or through
 subcontractors, an array of evidence-based, promising practice, or
 evidence-informed services and support programs to children and
 families in the selected child protective services regions.
 (e)  The contracted entity must perform all statutory duties
 of the department in connection with the delivery of the services
 specified in Subsection (b).
 (f)  The contracted entity must give preference for
 employment to employees of the department:
 (1)  whose position at the department is impacted by
 the implementation of community-based foster care; and
 (2)  who are considered by the department to be
 employees in good standing.
 (g)  Not later than December 31, 2018, the department shall
 report to the appropriate standing committees of the legislature
 having jurisdiction over child protective services and foster care
 matters on the progress of the pilot program. The report must
 include:
 (1)  an evaluation of each contracted entity's success
 in achieving the outcomes described by Subsection (c); and
 (2)  a recommendation as to whether the pilot program
 should be continued, expanded, or terminated.
 (b)  Section 264.126, Family Code, is transferred to
 Subchapter B-1, Chapter 264, Family Code, as added by this section,
 redesignated as Section 264.153, Family Code, and amended to read
 as follows:
 Sec. 264.153 [264.126].  COMMUNITY-BASED FOSTER CARE
 [REDESIGN] IMPLEMENTATION PLAN. (a) The department shall develop
 and maintain a plan for implementing community-based [the] foster
 care [redesign required by Chapter 598 (S.B. 218), Acts of the 82nd
 Legislature, Regular Session, 2011]. The plan must:
 (1)  describe the department's expectations, goals, and
 approach to implementing community-based foster care [redesign];
 (2)  include a timeline for implementing
 community-based [the] foster care [redesign] throughout this
 state, a timeline for the transfer of case management services, and
 any limitations related to the implementation;
 (3)  include [, and] a progressive intervention plan
 and a contingency plan to provide continuity of foster care service
 delivery if a contract with a single source continuum contractor
 ends prematurely;
 (4)  include a provision establishing the required time
 for a contractor to provide notice of contract termination;
 (5) [(3)]  delineate and define the case management
 roles and responsibilities of the department and the department's
 contractors and the duties, employees, and related funding that
 will be transferred to the contractor by the department;
 (6) [(4)]  identify any training needs and include
 long-range and continuous plans for training and cross-training
 staff;
 (7) [(5)]  include a plan for evaluating the costs and
 tasks associated with each contract procurement, including the
 initial and ongoing contract costs for the department and
 contractor;
 (8) [(6)]  include the department's contract
 monitoring approach and a plan for evaluating the performance of
 each contractor and the community-based foster care [redesign]
 system as a whole that includes an independent evaluation of each
 contractor's processes and fiscal and qualitative outcomes; and
 (9) [(7)]  include a report on transition issues
 resulting from implementation of community-based [the] foster care
 [redesign].
 (b)  The department shall annually:
 (1)  update the implementation plan developed under
 this section and post the updated plan on the department's Internet
 website; and
 (2)  post on the department's Internet website the
 progress the department has made toward its goals for implementing
 community-based [the] foster care [redesign].
 SECTION 14.  Subchapter A, Chapter 265, Family Code, is
 amended by adding Section 265.0042 to read as follows:
 Sec. 265.0042.  COLLABORATION WITH INSTITUTIONS OF HIGHER
 EDUCATION. (a)  Subject to the availability of funds, the Health
 and Human Services Commission, on behalf of the department, shall
 enter into agreements with institutions of higher education to
 conduct efficacy reviews of any prevention and early intervention
 programs that have not previously been evaluated for effectiveness
 through a scientific research evaluation process.
 (b)  Subject to the availability of funds, the department
 shall collaborate with an institution of higher education to create
 and track indicators of child well-being to determine the
 effectiveness of prevention and early intervention services.
 SECTION 15.  Section 266.012, Family Code, is amended by
 adding Subsection (c) to read as follows:
 (c)  A single source continuum contractor under Subchapter
 B-1, Chapter 264, providing therapeutic foster care services to a
 child shall ensure that the child receives a comprehensive
 assessment under this section at least once every 90 days.
 SECTION 16.  (a)  Section 531.02013, Government Code, is
 amended to read as follows:
 Sec. 531.02013.  FUNCTIONS REMAINING WITH CERTAIN AGENCIES.
 The following functions are not subject to transfer under Sections
 531.0201 and 531.02011:
 (1)  the functions of the Department of Family and
 Protective Services, including the statewide intake of reports and
 other information, related to the following:
 (A)  child protective services, including
 services that are required by federal law to be provided by this
 state's child welfare agency;
 (B)  adult protective services, other than
 investigations of the alleged abuse, neglect, or exploitation of an
 elderly person or person with a disability:
 (i)  in a facility operated, or in a facility
 or by a person licensed, certified, or registered, by a state
 agency; or
 (ii)  by a provider that has contracted to
 provide home and community-based services; [and]
 (C)  prevention and early intervention services;
 and
 (D)  investigations of alleged abuse, neglect, or
 exploitation occurring at a child-care facility, as that term is
 defined in Section 40.042, Human Resources Code; and
 (2)  the public health functions of the Department of
 State Health Services, including health care data collection and
 maintenance of the Texas Health Care Information Collection
 program.
 (b)  Notwithstanding any provision of Subchapter A-1,
 Chapter 531, Government Code, or any other law, the responsibility
 for conducting investigations of reports of abuse, neglect, or
 exploitation occurring at a child-care facility, as that term is
 defined in Section 40.042, Human Resources Code, as added by this
 Act, may not be transferred to the Health and Human Services
 Commission and remains the responsibility of the Department of
 Family and Protective Services.
 (c)  As soon as possible after the effective date of this
 section, the commissioner of the Department of Family and
 Protective Services shall transfer the responsibility for
 conducting investigations of reports of abuse, neglect, or
 exploitation occurring at a child-care facility, as that term is
 defined in Section 40.042, Human Resources Code, as added by this
 Act, to the child protective services division of the department.
 The commissioner shall transfer appropriate investigators and
 staff as necessary to implement this section.
 (d)  This section takes effect immediately if this Act
 receives a vote of two-thirds of all the members of each house, as
 provided by Section 39, Article III, Texas Constitution. If this
 Act does not receive the vote necessary for this section to take
 immediate effect, this section takes effect on the 91st day after
 the last day of the legislative session.
 SECTION 17.  (a)  Subchapter A, Chapter 533, Government
 Code, is amended by adding Section 533.0054 to read as follows:
 Sec. 533.0054.  HEALTH SCREENING REQUIREMENTS FOR ENROLLEE
 UNDER STAR HEALTH PROGRAM. (a)  A managed care organization that
 contracts with the commission to provide health care services to
 recipients under the STAR Health program must ensure that enrollees
 receive a complete early and periodic screening, diagnosis, and
 treatment checkup in accordance with the requirements specified in
 the contract between the managed care organization and the
 commission.
 (b)  The commission shall include a provision in a contract
 with a managed care organization to provide health care services to
 recipients under the STAR Health program specifying progressive
 monetary penalties for the organization's failure to comply with
 Subsection (a).
 (b)  The Health and Human Services Commission shall, in a
 contract for the provision of health care services under the STAR
 Health program between the commission and a managed care
 organization under Chapter 533, Government Code, that is entered
 into, renewed, or extended on or after the effective date of this
 section, require that the managed care organization comply with
 Section 533.0054, Government Code, as added by this section.
 (c)  The Health and Human Services Commission may not impose
 a monetary penalty for noncompliance with a contract provision
 described by Section 533.0054(b), Government Code, as added by this
 section, until September 1, 2018.
 (d)  If before implementing Section 533.0054, Government
 Code, as added by this section, the Health and Human Services
 Commission determines that a waiver or authorization from a federal
 agency is necessary for implementation of that provision, the
 agency affected by the provision shall request the waiver or
 authorization and may delay implementing that provision until the
 waiver or authorization is granted.
 SECTION 18.  (a)  Subchapter A, Chapter 533, Government
 Code, is amended by adding Section 533.0056 to read as follows:
 Sec. 533.0056.  STAR HEALTH PROGRAM:  NOTIFICATION OF
 PLACEMENT CHANGE.  A contract between a managed care organization
 and the commission for the organization to provide health care
 services to recipients under the STAR Health program must require
 the organization to ensure continuity of care for a child whose
 placement has changed by:
 (1)  notifying each specialist treating the child of
 the placement change; and
 (2)  coordinating the transition of care from the
 child's previous treating primary care physician and treating
 specialists to the child's new treating primary care physician and
 treating specialists, if any.
 (b)  The changes in law made by this section apply only to a
 contract for the provision of health care services under the STAR
 Health program between the Health and Human Services Commission and
 a managed care organization under Chapter 533, Government Code,
 that is entered into, renewed, or extended on or after the effective
 date of this section.
 (c)  If before implementing Section 533.0056, Government
 Code, as added by this section, the Health and Human Services
 Commission determines that a waiver or authorization from a federal
 agency is necessary for implementation of that provision, the
 health and human services agency affected by the provision shall
 request the waiver or authorization and may delay implementing that
 provision until the waiver or authorization is granted.
 SECTION 19.  Section 40.032, Human Resources Code, is
 amended by adding Subsection (h) to read as follows:
 (h)  In this subsection, "community-based foster care" has
 the meaning assigned by Section 264.152, Family Code.  The
 department shall collaborate with single source continuum
 contractors to ensure that employees of the department who perform
 case management functions are given preference for employment by
 service providers under the community-based foster care service
 system.
 SECTION 20.  (a)  Subchapter B, Chapter 40, Human Resources
 Code, is amended by adding Sections 40.039, 40.040, 40.041, and
 40.042 to read as follows:
 Sec. 40.039.  REVIEW OF RECORDS RETENTION POLICY. The
 department shall periodically review the department's records
 retention policy with respect to case and intake records relating
 to department functions.  The department shall make changes to the
 policy consistent with the records retention schedule submitted
 under Section 441.185, Government Code, that are necessary to
 improve case prioritization and the routing of cases to the
 appropriate division of the department.  The department may adopt
 rules necessary to implement this section.
 Sec. 40.040.  FOSTER CARE SERVICES CONTRACT COMPLIANCE,
 OVERSIGHT, AND QUALITY ASSURANCE DIVISION. (a) In this section,
 "community-based foster care" has the meaning assigned by Section
 264.152, Family Code.
 (b)  The department shall create within the department the
 foster care services contract compliance, oversight, and quality
 assurance division. The division shall:
 (1)  oversee contract compliance and achievement of
 performance-based outcomes by any vendor that provides foster care
 services for the department under community-based foster care;
 (2)  conduct assessments on the fiscal and qualitative
 performance of any vendor that provides foster care services for
 the department under community-based foster care; and
 (3)  create and administer a dispute resolution process
 to resolve conflicts between vendors that contract with the
 department to provide foster care services under community-based
 foster care and any subcontractor of a vendor.
 Sec. 40.041.  OFFICE OF DATA ANALYTICS. The department
 shall create an office of data analytics.  The office shall report
 to the deputy commissioner and may perform any of the following
 functions, as determined by the department:
 (1)  monitor management trends;
 (2)  analyze employee exit surveys and interviews;
 (3)  evaluate the effectiveness of employee retention
 efforts, including merit pay;
 (4)  create and manage a system for handling employee
 complaints submitted by the employee outside of an employee's
 direct chain of command, including anonymous complaints;
 (5)  monitor and provide reports to department
 management personnel on:
 (A)  employee complaint data and trends in
 employee complaints;
 (B)  compliance with annual department
 performance evaluation requirements; and
 (C)  the department's use of positive performance
 levels for employees;
 (6)  track employee tenure and internal employee
 transfers within both the child protective services division and
 the department;
 (7)  use data analytics to predict workforce shortages
 and identify areas of the department with high rates of employee
 turnover, and develop a process to inform the deputy commissioner
 and other appropriate staff regarding the office's findings;
 (8)  create and monitor reports on key metrics of
 agency performance;
 (9)  analyze available data, including data on employee
 training, for historical and predictive department trends; and
 (10)  conduct any other data analysis the department
 determines to be appropriate for improving performance, meeting the
 department's current business needs, or fulfilling the powers and
 duties of the department.
 Sec. 40.042.  INVESTIGATIONS OF CHILD ABUSE, NEGLECT, AND
 EXPLOITATION.  (a)  In this section, "child-care facility"
 includes a facility, licensed or unlicensed child-care facility,
 family home, residential child-care facility, employer-based
 day-care facility, or shelter day-care facility, as those terms are
 defined in Chapter 42.
 (b)  For all investigations of child abuse, neglect, or
 exploitation conducted by the child protective services division of
 the department, the department shall adopt the definitions of
 abuse, neglect, and exploitation provided in Section 261.001,
 Family Code.
 (c)  The department shall establish standardized policies to
 be used during investigations.
 (d)  The commissioner shall establish units within the child
 protective services division of the department to specialize in
 investigating allegations of child abuse and neglect occurring at a
 child-care facility.
 (e)  The department may require that investigators who
 specialize in allegations of child abuse and neglect occurring at
 child-care facilities receive ongoing training on the minimum
 licensing standards for any facilities that are applicable to the
 investigator's specialization.
 (f)  After an investigation of abuse, neglect, or
 exploitation occurring at a child-care facility, the department
 shall provide the state agency responsible for regulating the
 facility with access to any information relating to the
 department's investigation.  Providing access to confidential
 information under this subsection does not constitute a waiver of
 confidentiality.
 (g)  The department may adopt rules to implement this
 section.
 (b)  As soon as possible after the effective date of this
 Act, the commissioner of the Department of Family and Protective
 Services shall establish the office of data analytics required by
 Section 40.041, Human Resources Code, as added by this section.  The
 commissioner and the executive commissioner of the Health and Human
 Services Commission shall transfer appropriate staff as necessary
 to conduct the duties of the office.
 (c)  The Department of Family and Protective Services must
 implement the standardized definitions and policies required under
 Sections 40.042(b) and (c), Human Resources Code, as added by this
 Act, not later than December 1, 2017.
 SECTION 21.  Section 40.051, Human Resources Code, is
 amended to read as follows:
 Sec. 40.051.  STRATEGIC PLAN FOR DEPARTMENT. The department
 shall develop a departmental strategic plan based on the goals and
 priorities stated in the commission's coordinated strategic plan
 for health and human services. The department shall also develop
 its plan based on:
 (1)  furthering the policy of family preservation;
 (2)  the goal of ending the abuse and neglect of
 children in the conservatorship of the department; and
 (3)  the goal of increasing the capacity and
 availability of foster, relative, and kinship placements in this
 state.
 SECTION 22.  (a)  Section 40.058(f), Human Resources Code,
 is amended to read as follows:
 (f)  A contract for residential child-care services provided
 by a general residential operation or by a child-placing agency
 must include provisions that:
 (1)  enable the department and commission to monitor
 the effectiveness of the services;
 (2)  specify performance outcomes, financial penalties
 for failing to meet any specified performance outcomes, and
 financial incentives for exceeding any specified performance
 outcomes;
 (3)  authorize the department or commission to
 terminate the contract or impose monetary sanctions for a violation
 of a provision of the contract that specifies performance criteria
 or for underperformance in meeting any specified performance
 outcomes;
 (4)  authorize the department or commission, an agent
 of the department or commission, and the state auditor to inspect
 all books, records, and files maintained by a contractor relating
 to the contract; and
 (5)  are necessary, as determined by the department or
 commission, to ensure accountability for the delivery of services
 and for the expenditure of public funds.
 (b)  The Health and Human Services Commission shall, in a
 contract for residential child-care services between the
 commission and a general residential operation or child-placing
 agency that is entered into on or after the effective date of this
 section, including a renewal contract, include the provisions
 required by Section 40.058(f), Human Resources Code, as amended by
 this section.
 (c)  The Health and Human Services Commission shall seek to
 amend contracts for residential child-care services entered into
 with general residential operations or child-placing agencies
 before the effective date of this section to include the provisions
 required by Section 40.058(f), Human Resources Code, as amended by
 this section.
 (d)  The Department of Family and Protective Services and the
 Health and Human Services Commission may not impose a financial
 penalty against a general residential operation or child-placing
 agency under a contract provision described by Section 40.058(f)(2)
 or (3), Human Resources Code, as amended by this section, until
 September 1, 2018.
 SECTION 23.  (a)  Subchapter C, Chapter 40, Human Resources
 Code, is amended by adding Section 40.0581 to read as follows:
 Sec. 40.0581.  PERFORMANCE MEASURES FOR CERTAIN SERVICE
 PROVIDER CONTRACTS. (a)  The commission, in collaboration with the
 department, shall contract with a vendor or enter into an agreement
 with an institution of higher education to develop, in coordination
 with the department, performance quality metrics for family-based
 safety services and post-adoption support services providers.  The
 quality metrics must be included in each contract with those
 providers.
 (b)  Each provider whose contract with the commission to
 provide department services includes the quality metrics developed
 under Subsection (a) must prepare and submit to the department a
 report each calendar quarter regarding the provider's performance
 based on the quality metrics.
 (c)  The commissioner shall compile a summary of all reports
 prepared and submitted to the department by family-based safety
 services providers as required by Subsection (b) and distribute the
 summary to appropriate family-based safety services caseworkers
 and child protective services region management once each calendar
 quarter.
 (d)  The commissioner shall compile a summary of all reports
 prepared and submitted to the department by post-adoption support
 services providers as required by Subsection (b) and distribute the
 summary to appropriate conservatorship and adoption caseworkers
 and child protective services region management.
 (e)  The department shall make the summaries prepared under
 Subsections (c) and (d) available to families that are receiving
 family-based safety services and to adoptive families.
 (f)  This section does not apply to a provider that has
 entered into a contract with the commission to provide family-based
 safety services under Section 264.171, Family Code.
 (b)  The quality metrics required by Section 40.0581, Human
 Resources Code, as added by this section, must be developed not
 later than September 1, 2018, and included in any contract,
 including a renewal contract, entered into by the Health and Human
 Services Commission with a family-based safety services provider or
 a post-adoption support services provider on or after January 1,
 2019, except as provided by Section 40.0581(f), Human Resources
 Code, as added by this section.
 SECTION 24.  Section 42.002(23), Human Resources Code, is
 amended to read as follows:
 (23)  "Other maltreatment" means:
 (A)  abuse, as defined by Section 261.001 [or
 261.401], Family Code; or
 (B)  neglect, as defined by Section 261.001 [or
 261.401], Family Code.
 SECTION 25.  Section 42.042, Human Resources Code, is
 amended by adding Subsections (s) and (t) to read as follows:
 (s)  The department shall create and implement processes to
 simplify and streamline the licensing and verification rules for
 agency foster homes and child-placing agencies, including:
 (1)  a process to allow provisional verification of a
 foster home, based on the foster parent's partial completion of the
 licensing requirements, as determined by the department; and
 (2)  a process to streamline background checks for
 potential foster care providers.
 (t)  The department may waive certain minimum standards or
 may permit a child-placing agency to waive certain verification
 requirements for a foster home under this section.
 SECTION 26.  (a)  Subchapter C, Chapter 42, Human Resources
 Code, is amended by adding Section 42.0432 to read as follows:
 Sec. 42.0432.  HEALTH SCREENING REQUIREMENTS FOR CHILD
 PLACED WITH CHILD-PLACING AGENCY. (a)  A child-placing agency or
 general residential operation that contracts with the department to
 provide services must ensure that the children who are in the
 managing conservatorship of the department and are placed with the
 child-placing agency or general residential operation receive a
 complete early and periodic screening, diagnosis, and treatment
 checkup in accordance with the requirements specified in the
 contract between the child-placing agency or general residential
 operation and the department.
 (b)  The commission shall include a provision in a contract
 with a child-placing agency or general residential operation
 specifying progressive monetary penalties for the child-placing
 agency's or general residential operation's failure to comply with
 Subsection (a).
 (b)  A child-placing agency or general residential operation
 that contracts to provide services for the Department of Family and
 Protective Services must comply with the requirements of Section
 42.0432, Human Resources Code, as added by this section, not later
 than August 31, 2018. The department and the Health and Human
 Services Commission may not impose a monetary penalty for
 noncompliance with a contract provision described by that section
 until September 1, 2018.
 SECTION 27.  Section 42.044(c-1), Human Resources Code, is
 amended to read as follows:
 (c-1)  The department:
 (1)  shall investigate a listed family home if the
 department receives a complaint that:
 (A)  a child in the home has been abused or
 neglected, as defined by Section 261.001 [261.401], Family Code; or
 (B)  otherwise alleges an immediate risk of danger
 to the health or safety of a child being cared for in the home; and
 (2)  may investigate a listed family home to ensure
 that the home is providing care for compensation to not more than
 three children, excluding children who are related to the
 caretaker.
 SECTION 28.  Section 261.401(a), Family Code, is repealed.
 SECTION 29.  The changes in law made by this Act to Section
 263.401, Family Code, apply only to a suit affecting the
 parent-child relationship filed on or after the effective date of
 this Act. A suit affecting the parent-child relationship filed
 before the effective date of this Act is governed by the law in
 effect on the date the suit was filed, and the former law is
 continued in effect for that purpose.
 SECTION 30.  Except as otherwise provided by this Act, the
 changes in law made by this Act apply only to a contract for foster
 care services entered into or renewed on or after the effective date
 of this Act.
 SECTION 31.  Except as otherwise provided by this Act, this
 Act takes effect September 1, 2017.