89R18939 AMF-F
By: Craddick H.B. No. 1536
Substitute the following for H.B. No. 1536:
By: Hull C.S.H.B. No. 1536
A BILL TO BE ENTITLED
AN ACT
relating to a rural community-based care pilot program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 264, Family Code, is amended by adding
Subchapter B-2 to read as follows:
SUBCHAPTER B-2. RURAL COMMUNITY-BASED CARE PILOT PROGRAM
Sec. 264.181. DEFINITIONS. In this subchapter:
(1) "Catchment area" has the meaning assigned by
Section 264.152.
(2) "Community-based care" means the provision of
child welfare services in accordance with state and federal child
welfare goals by a community-based nonprofit or local governmental
entity under the pilot program.
(3) "Eligible rural region" means a catchment area for
which the department requested but did not receive bids, proposals,
or other applicable expressions of interest to implement
community-based care under Subchapter B-1 in which at least
two-thirds of the counties comprising the area have a population of
50,000 or less.
(4) "Pilot program" means a rural community-based care
pilot program implemented under this subchapter.
Sec. 264.182. IMPLEMENTATION OF PILOT PROGRAM. The
department, in partnership with a lead entity selected under
Section 264.183, shall develop and implement a rural
community-based care pilot program in an eligible rural region to:
(1) implement a community-based model of child welfare
services and increase community engagement in the child welfare
system;
(2) improve outcomes for children and families by
expanding the availability of child welfare services and promoting
innovation in the delivery of child welfare services to children
and families; and
(3) develop a sustainable, replicable model for the
provision of child welfare services in rural areas.
Sec. 264.183. QUALIFICATIONS OF LEAD ENTITY; SELECTION;
PROCUREMENT. (a) To enter into a contract with the department to
serve as a lead entity to provide services under this subchapter, an
entity must be:
(1) a nonprofit entity that has a board of directors
composed entirely of residents of the catchment area; or
(2) a local government entity.
(b) In selecting a lead entity, the department shall
consider whether a prospective contractor has:
(1) strong community support and partnerships;
(2) demonstrated experience leading collaborative
initiatives in the region; and
(3) the capacity to coordinate with local community
organizations to serve children and families.
(c) The department shall request local stakeholders in an
eligible rural region to provide any necessary information about
the region that will assist the department in:
(1) preparing the department's request for bids,
proposals, or other applicable expressions of interest to provide
community-based care in the eligible rural region; and
(2) selecting a lead entity to provide community-based
care in the eligible rural region.
(d) The department's request for bids, proposals, or other
applicable expressions of interest to provide community-based care
in the eligible rural region may include, in a single request,
services to develop the pilot program model and implement the pilot
program.
(e) Notwithstanding any other law and to address the unique
challenges of providing community-based care to rural areas of this
state in an efficient manner the department may:
(1) procure, as a single procurement, services to
develop a pilot program model under Section 264.184(a) and
implement the pilot program under Section 264.184(b); and
(2) separately procure the services of the independent
evaluator under Section 264.194.
Sec. 264.184. PILOT PROGRAM MODEL AND IMPLEMENTATION
SCHEDULE; AUTHORITY. (a) The department, in partnership with the
lead entity, shall develop a pilot program model that includes a
timeline, with identified funding, for implementing
community-based care in the eligible rural region and that
addresses:
(1) the following services for families and children:
(A) family-based services to ensure child safety
and prevent entry into foster care;
(B) family preservation services, as defined by
Section 262.401;
(C) case management;
(D) foster care and kinship care services;
(E) adoption and post-adoption services;
(F) transition services for youth aging out of
foster care; and
(G) any additional services necessary to meet the
needs of children and families in the region;
(2) the development of and coordination with a diverse
network of service providers, including faith-based organizations,
local mental health authorities, and others to ensure comprehensive
service delivery;
(3) the development and implementation of innovative
approaches to improve outcomes for children and families;
(4) any identified geographic disparities in service
availability and access in the region's child welfare system;
(5) the creation and oversight of a quality assurance
system; and
(6) the implementation of a system to manage financial
risks and resources, including state and federal funds.
(b) To implement the pilot program model developed under
Subsection (a), a lead entity may:
(1) develop and implement policies and procedures
regarding the provision of community-based care within the scope of
applicable law and consistent with department policies and
procedures, unless waived under Section 264.189;
(2) allocate resources as needed to meet community
needs; and
(3) enter into contracts with service providers,
including contracts for case management services.
Sec. 264.185. COMMUNITY ALLIANCE. (a) The department and
lead entity shall establish a community alliance or similar group
of stakeholders to provide a forum for community participation and
governance of community-based care under the pilot program. The
department and lead entity shall collaborate with:
(1) local families with lived experience in the child
welfare system;
(2) local representatives from sectors related to the
child welfare system, including the judiciary, education, and
health care; and
(3) other community stakeholders.
(b) The duties of the community alliance or similar group of
stakeholders described by Subsection (a) shall include:
(1) joint planning with the department and lead entity
regarding resource utilization in the community, including
resources appropriated to the department and any funds provided by
local funding sources for that purpose;
(2) conducting needs assessments and establishing of
community priorities for service delivery;
(3) determining community outcome goals to supplement
state-required outcomes;
(4) serving as a catalyst for community resource
development, including:
(A) identifying existing programs, services, and
assistance available from community- and faith-based
organizations;
(B) encouraging the development and increased
availability of programs, services, and assistance available from
community- and faith-based organizations; and
(C) informing the department and the lead entity
of programs, services, and assistance available from community- and
faith-based organizations and working to facilitate the lead
entity's use of the available resources;
(5) providing for community education and advocacy
regarding issues related to delivery of services; and
(6) promoting family preservation services.
Sec. 264.186. DEVELOPMENT OF FUNDING AND RESOURCES. (a)
The department shall seek input from the lead entity regarding the
feasibility of a capitated funding model for the provision of
services under the pilot program. If the department determines
that a capitated funding model is feasible, the department shall
develop a capitated funding model that provides a fixed rate of
funding per child receiving services under the pilot program.
(b) Regardless of whether the department implements a
capitated funding model under Subsection (a), the department
shall ensure that the funding model for the pilot program:
(1) accounts for the additional costs of providing
services to geographically dispersed populations in rural areas,
including:
(A) increased transportation costs;
(B) challenges in achieving economies of scale in
the provision of services;
(C) increased costs for recruiting and retaining
qualified staff in rural areas; and
(D) costs related to building and maintaining
service provider networks in rural areas;
(2) includes financial risk-sharing mechanisms;
(3) incentivizes desired outcomes and cost savings;
(4) supports innovation;
(5) allows for the reinvestment of cost savings into
the program; and
(6) allows the lead entity to flexibly allocate funds
within the scope of applicable law.
(c) The department shall pursue leveraging various funding
sources, including state and federal funds, to implement and
sustain the pilot program.
Sec. 264.187. DATA MANAGEMENT AND INFORMATION SHARING. (a)
The department shall determine the feasibility of implementing an
integrated electronic case management system for community-based
care provided under the pilot program that:
(1) allows for real-time case management;
(2) facilitates coordination among service providers;
and
(3) supports outcome tracking and reporting.
(b) Regardless of whether the department implements an
integrated electronic case management system, the department
shall:
(1) provide to the lead entity technical support and
access to data as necessary to facilitate implementation of a data
management system for effective case management and service
coordination;
(2) ensure secure and efficient information sharing
with stakeholders; and
(3) support outcome tracking and reporting through
existing or modified systems.
(c) The department shall establish protocols related to any
data management and information-sharing systems used for the pilot
program to ensure:
(1) privacy and security of data; and
(2) the efficient sharing of information.
Sec. 264.188. WORKFORCE DEVELOPMENT. The department, in
collaboration with the lead entity, shall incorporate into the
pilot program a workforce development plan that includes:
(1) strategies that address rural workforce
challenges, including strategies for recruiting and retaining
child welfare professionals;
(2) training programs aligned with best practices in
child welfare; and
(3) career advancement opportunities.
Sec. 264.189. WAIVERS. To implement the pilot program, the
lead entity may apply to the commissioner of the department for a
waiver from any department policy or procedure that governs the
provision of child welfare services. The commissioner shall adopt
a procedure for the application for a waiver described by this
section.
Sec. 264.190. CONFLICT RESOLUTION PROCESS. The department
and lead entity shall establish a formal process for resolving
conflicts or disputes that arise related to the pilot program.
Sec. 264.191. CHANGE ORDER PROCESS. (a) The department
shall request any change to the contracted scope of work of the lead
entity related to the pilot program in writing. The request must
include:
(1) a detailed explanation of the proposed change and
reasons for the proposed change; and
(2) a comprehensive cost analysis for implementing the
proposed change that includes:
(A) the source of funding for the proposed
change; or
(B) if funding sufficient to implement the change
is not available, an explanation of how existing requirements will
be modified for the cost of the proposed change to fit into the
existing budget.
(b) A change request under this section is subject to
negotiation between the lead entity and the department. The lead
entity may reject any proposed change that is not adequately funded
or substantially alters the provision of community-based care under
the contract executed between the department and the entity, unless
the change is required by federal or state law or court order or is
necessary to ensure child health or safety. In the event of a
dispute between the department and the entity regarding a proposed
change or the funding for the change, the department and lead entity
shall follow the conflict resolution process described by Section
264.190.
(c) This section may not be construed to limit or restrict
the authority of the department to include necessary oversight
measures and review processes in a contract under this subchapter
to maintain compliance with federal and state requirements. The
department retains responsibility for the quality of contracted
services and programs and shall ensure that, at a minimum, services
are delivered in accordance with applicable state and federal law.
(d) A lead entity and its subcontractors must comply with
each applicable court order:
(1) issued in a suit regarding a child for whom the
lead entity or its subcontractors have assumed case management
responsibilities; or
(2) imposing a requirement on the department that
relates to contracted functions assumed by the lead entity or its
subcontractors.
Sec. 264.192. CONFIDENTIALITY. Subchapter C, Chapter 261,
of this code and Chapter 552, Government Code, apply to the records
of a lead entity or its subcontractors that relate to the provision
of community-based care under the pilot program in the same manner
as the records of the department.
Sec. 264.193. PRIVILEGED COMMUNICATION. The lead entity
and its employees, agents, and representatives are client's
representatives of the department for purposes of the
attorney-client 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 that
attorney's representative in a proceeding under this subtitle.
Sec. 264.194. POST-IMPLEMENTATION INDEPENDENT EVALUATION.
(a) The department shall contract with an independent evaluator
with expertise in child welfare and the delivery of child welfare
services in rural areas to conduct a comprehensive evaluation of
the pilot program. The department shall consult with the lead
entity and the entities described by Section 264.185(a) when
selecting the independent evaluator.
(b) The independent evaluator shall assess:
(1) the outcomes for children and families receiving
services under the program;
(2) the cost-effectiveness of the program;
(3) the effectiveness of the community-based care
approach to providing child welfare services in rural areas;
(4) community engagement and satisfaction with the
program;
(5) program implementation fidelity; and
(6) any systemic changes made in provision of child
welfare services in the region under the program.
(c) The department and the lead entity shall cooperate with
the evaluation process and provide the independent evaluator all
necessary data and information to conduct the evaluation required
by this section.
(d) The department, lead entity, and entities described by
Section 264.185(a) shall review the independent evaluator's
findings under Subsection (b) and develop an action plan to address
any areas for improvement identified by the independent evaluator.
Sec. 264.195. PROGRAM DEVELOPMENT REPORT. Not later than
January 1, 2027, the department shall submit a report to the
legislature regarding the pilot program model developed under this
subchapter. The department shall implement the pilot program only
if the pilot program is sufficiently funded.
Sec. 264.196. ANNUAL IMPLEMENTATION REPORT. Not later than
December 1, 2028, and annually thereafter, the department shall
submit a report to the legislature relating to the implementation
of the pilot program that includes:
(1) the findings of the independent evaluator under
Section 264.194, if applicable, including any recommendations from
the independent evaluator for improving and expanding the pilot
program;
(2) information about each denied waiver under Section
264.189, including the reason for denial; and
(3) a detailed account of each agreed-upon change
order under Section 264.191 that includes an explanation of:
(A) the change and the reason for the change; and
(B) the cost of funding the change and how the
cost was addressed.
Sec. 264.197. RULEMAKING. The department may adopt rules
necessary to implement this subchapter.
Sec. 264.198. PROGRAM REVIEW; EXPIRATION. (a) Not later
than September 1, 2031, the legislature shall review the outcomes
and effectiveness of the pilot program to determine whether to
extend, modify, or conclude the program.
(b) This subchapter expires September 1, 2031.
SECTION 2. This Act takes effect September 1, 2025.