BILL ANALYSIS C.S.H.B. 1536 By: Craddick Human Services Committee Report (Substituted) BACKGROUND AND PURPOSE According to the Department of Family Protective Services (DFPS), community-based care is a Texas foster care model that utilizes community resources and services to improve outcomes for children and their families by tailoring the process to their unique needs. While this model has been implemented in some areas of Texas, there are certain rural regions for which DFPS requested but did not receive expressions of interest to implement community-based care. C.S.H.B. 1536 provides for a rural community-based care pilot program that would enable the implementation of this innovative model of child welfare services in eligible rural regions. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly granted to the Department of Family and Protective Services in SECTION 1 of this bill. ANALYSIS C.S.H.B. 1536 amends the Family Code to require the Department of Family and Protective Services (DFPS), in partnership with a lead entity selected under the bill's provisions, to develop and implement a rural community-based care pilot program in an eligible rural region to do the following: implement a community-based model of child welfare services and increase community engagement in the child welfare system; 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 develop a sustainable, replicable model for the provision of child welfare services in rural areas. For purposes of the pilot program, the bill defines the following terms: "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; "eligible rural region" means a catchment area for which DFPS requested but did not receive bids, proposals, or other applicable expressions of interest to implement community-based care under applicable state law in which at least two-thirds of the counties comprising the area have a population of 50,000 or less; and "catchment area" has the meaning assigned to that term under statutory provisions relating to community-based care. Lead Entity C.S.H.B. 1536 limits the entities that may enter into a contract with DFPS to serve as a lead entity to provide services under the pilot program to a nonprofit entity that has a board of directors composed entirely of residents of the catchment area or a local government entity. The bill requires DFPS to take the following actions: in selecting a lead entity, consider whether a prospective contractor has strong community support and partnerships, demonstrated experience leading collaborative initiatives in the region, and the capacity to coordinate with local community organizations to serve children and families; and request local stakeholders in an eligible rural region to provide any necessary information about the region that will assist DFPS in preparing its request for bids, proposals, or other applicable expressions of interest to provide community-based care in the region and in selecting a lead entity to provide community-based care in the region. The bill authorizes DFPS's request for bids, proposals, or other applicable expressions of interest to provide community-based care in the eligible rural region to include, in a single request, services to develop the pilot program model and implement the pilot program. C.S.H.B. 1536 authorizes DFPS, for purposes of addressing the unique challenges of providing community-based care to rural areas of Texas in an efficient manner, to do the following: procure, as a single procurement, services to develop a pilot program model and implement the pilot program, as provided by the bill; and separately procure the services of the independent evaluator under the bill's provisions. Pilot Program Model and Implementation Schedule C.S.H.B. 1536 requires DFPS, in partnership with the lead entity, to 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 the following: family-based services to ensure child safety and prevent entry into foster care, family preservation services as defined under the pilot program for such services, case management, foster care and kinship care services, adoption and post-adoption services, transition services for youth aging out of foster care, and any additional services necessary to meet the needs of children and families in the region; 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; the development and implementation of innovative approaches to improve outcomes for children and families; any identified geographic disparities in service availability and access in the region's child welfare system; the creation and oversight of a quality assurance system; and the implementation of a system to manage financial risks and resources, including state and federal funds. C.S.H.B. 1536 authorizes the lead entity to do the following for purposes of implementing the pilot program model: develop and implement policies and procedures regarding the provision of community-based care within the scope of applicable law and consistent with DFPS policies and procedures, unless waived as provided under the bill; allocate resources as needed to meet community needs; and enter into contracts with service providers, including contracts for case management services. Community Alliance C.S.H.B. 1536 requires DFPS and the lead entity to 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 bill requires DFPS and the lead entity to collaborate with the following groups: local families with lived experience in the child welfare system; local representatives from sectors related to the child welfare system, including the judiciary, education, and health care; and other community stakeholders. C.S.H.B. 1536 establishes that the duties of the community alliance or similar group of stakeholders include the following: joint planning with DFPS and the lead entity regarding resource utilization in the community, including resources appropriated to DFPS and any funds provided by local funding sources for that purpose; conducting needs assessments and establishing of community priorities for service delivery; determining community outcome goals to supplement state-required outcomes; serving as a catalyst for community resource development, including: o identifying existing programs, services, and assistance available from community- and faith-based organizations; o encouraging the development and increased availability of programs, services, and assistance available from community- and faith-based organizations; and o informing DFPS 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; providing for community education and advocacy regarding issues related to delivery of services; and promoting family preservation services. Development of Funding and Resources C.S.H.B. 1536 requires DFPS to take the following actions: seek input from the lead entity regarding the feasibility of a capitated funding model for the provision of services under the pilot program; if DFPS determines that a capitated funding model is feasible, develop such a model that provides a fixed rate of funding per child receiving services under the pilot program; regardless of whether a capitated funding model is implemented, ensure that the funding model for the pilot program does the following: o accounts for the additional costs of providing services to geographically dispersed populations in rural areas, including increased transportation costs, challenges in achieving economies of scale in the provision of services, increased costs for recruiting and retaining qualified staff in rural areas, and costs related to building and maintaining service provider networks in rural areas; o includes financial risk-sharing mechanisms; o incentivizes desired outcomes and cost savings; o supports innovation; o allows for the reinvestment of cost savings into the program; and o allows the lead entity to flexibly allocate funds within the scope of applicable law; and pursue leveraging various funding sources, including state and federal funds, to implement and sustain the pilot program. Data Management and Information Sharing C.S.H.B. 1536 requires DFPS to determine the feasibility of implementing an integrated electronic case management system for community-based care provided under the pilot program that allows for real-time case management, facilitates coordination among service providers, and supports outcome tracking and reporting. The bill requires DFPS, regardless of whether it implements an integrated electronic case management system, to do the following: 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; ensure secure and efficient information sharing with stakeholders; and support outcome tracking and reporting through existing or modified systems. The bill requires DFPS to establish protocols related to any data management and information-sharing systems used for the pilot program to ensure the efficient sharing of information and data privacy and security. Workforce Development C.S.H.B. 1536 requires DFPS, in collaboration with the lead entity, to incorporate into the pilot program a workforce development plan that includes career advancement opportunities, training programs aligned with best practices in child welfare, and strategies that address rural workforce challenges, including strategies for recruiting and retaining child welfare professionals. Waivers C.S.H.B. 1536 authorizes the lead entity, for purposes of implementing the pilot program, to apply to the commissioner of DFPS for a waiver from any department policy or procedure that governs the provision of child welfare services. The bill requires the commissioner to adopt a procedure for the application for such a waiver. Conflict Resolution and Change Order Processes C.S.H.B. 1536 requires DFPS and the lead entity to establish a formal process for resolving conflicts or disputes that arise related to the pilot program. The bill requires DFPS to request any change to the contracted scope of work of the lead entity related to the pilot program in writing. The bill requires such a change request to include the following information: a detailed explanation of the proposed change and reasons for the proposed change; and a comprehensive cost analysis for implementing the proposed change that includes: o the source of funding for the proposed change; or o 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. The bill subjects the change request to negotiation between the lead entity and DFPS. The bill authorizes the lead entity to reject any proposed change that is not adequately funded or substantially alters the provision of community-based care under the contract executed between DFPS 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. The bill requires DFPS and the lead entity to follow the conflict resolution process established under the bill's provisions in the event of a dispute between the two entities regarding a proposed change or the funding for the change. C.S.H.B. 1536 establishes that its provisions relating to the change request process may not be construed to limit or restrict the authority of DFPS to include necessary oversight measures and review processes in a pilot program contract to maintain compliance with federal and state requirements. DFPS retains responsibility for the quality of contracted services and programs and must ensure that, at a minimum, services are delivered in accordance with applicable state and federal law. C.S.H.B. 1536 requires a lead entity and its subcontractors to comply with each applicable court order that is issued in a suit regarding a child for whom the lead entity or its subcontractors have assumed case management responsibilities or that imposes a requirement on DFPS that relates to contracted functions assumed by the lead entity or its subcontractors. Confidentiality and Privileged Communication C.S.H.B. 1536 makes state public information law and statutory provisions regarding confidentiality and privileged communication with respect to investigations of reported child abuse or neglect applicable 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 DFPS. C.S.H.B. 1536 establishes that the lead entity and its employees, agents, and representatives are client's representatives of DFPS for purposes of the attorney-client privilege under the Texas Rules of Evidence as that privilege applies to communications with a prosecuting attorney or other attorney representing DFPS or that attorney's representative in a child protection proceeding. Post-Implementation Independent Evaluation C.S.H.B. 1536 requires DFPS to 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 bill requires DFPS to consult with the lead entity and the community alliance or similar group of stakeholders when selecting the independent evaluator. The bill requires the independent evaluator to assess the following: the outcomes for children and families receiving services under the program; the cost-effectiveness of the program; the effectiveness of the community-based care approach to providing child welfare services in rural areas; community engagement and satisfaction with the program; program implementation fidelity; and any systemic changes made in provision of child welfare services in the region under the program. The bill requires DFPS and the lead entity to cooperate with the evaluation process and provide the independent evaluator all necessary data and information to conduct the evaluation. The bill requires DFPS, the lead entity, and the community alliance or similar group of stakeholders to review the independent evaluator's findings and develop an action plan to address any areas for improvement identified by the independent evaluator. Reports; Implementation Contingency C.S.H.B. 1536 requires DFPS to submit a program development report to the legislature regarding the pilot program model not later than January 1, 2027. The bill conditions implementation of the pilot program by DFPS on the pilot program being sufficiently funded. C.S.H.B. 1536 requires DFPS, not later than December 1, 2028, and annually thereafter, to submit a report to the legislature relating to the implementation of the pilot program that includes the following components: the findings of the independent evaluator, if applicable, including any recommendations from the independent evaluator for improving and expanding the pilot program; information about each denied waiver, including the reason for denial; and a detailed account of each agreed-upon change order that includes an explanation of the change, the reason for the change, the cost of funding the change, and how the cost was addressed. Rulemaking C.S.H.B. 1536 authorizes DFPS to adopt rules necessary to implement the bill's provisions. Program Review; Expiration C.S.H.B. 1536 requires the legislature, not later than September 1, 2031, to review the outcomes and effectiveness of the pilot program to determine whether to extend, modify, or conclude the program. The bill's provisions expire September 1, 2031. EFFECTIVE DATE September 1, 2025. COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 1536 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. Whereas the introduced required DFPS to establish a rural community-based care pilot program, the substitute requires DFPS to develop and implement such a program in partnership with a selected lead entity. The introduced defined "community-based care" for purposes of the pilot program by reference to an existing statutory definition of that term, while the substitute establishes a new definition that is similar except specifies that the applicable services are provided by a community-based nonprofit or local governmental entity under the pilot program and not under a contract as specified by the existing statutory definition. The substitute includes provisions absent from the introduced that do the following: authorize DFPS's request for bids, proposals, or other applicable expressions of interest to include, in a single request, services to develop the pilot program model and implement the program; and authorize DFPS to procure such services as a single procurement and to separately procure the services of the independent evaluator. Both versions provide for the development of a program model, but the substitute clarifies that it is a pilot program model and changes the entity responsible for developing the model from the lead entity, as in the introduced, to DFPS in partnership with the lead entity. The substitute revises the requirements for the model's content by doing the following: including a specification not in the introduced that the implementation timeline included in the model must have identified funding; replacing the introduced version's requirement for the model to include early intervention services to prevent entry into foster care with a requirement for the model to address family-based services to ensure child safety and prevent entry into foster care; omitting the provision from the introduced that defined the term "case management" by reference; replacing the introduced version's requirement for the model to address any inequities in the region's child welfare system with a requirement for the model to address any identified geographic disparities in service availability and access in the region's child welfare system; requiring the model to address both the creation and oversight of a quality assurance system, rather than only the establishment of such a system as in the introduced; and specifying that the system for managing financial resources required by the introduced is also for the management of financial risks. With respect to the authorization for a lead entity to develop and implement policies and procedures regarding the provision of community-based care for purposes of implementing the pilot program model, the substitute specifies that such policies and procedures must be consistent with DFPS policies and procedures unless waived under the bill, whereas the introduced did not. The substitute also includes a specification absent from the introduced that the lead entity's authority to enter into contracts with service providers includes contracts for case management services. The substitute does not include the requirement that appeared in the introduced for the lead entity to establish a collaborative governance structure to provide oversight and guidance for the provision of community-based care under the pilot program. Instead, the substitute requires DFPS and the lead entity to 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 substitute retains the provision of the introduced listing specified entities with which the lead entity is required to collaborate but revises the introduced version's provisions relating to such collaboration as follows: makes the requirement to collaborate with the specified entities also applicable to DFPS; omits the lead entity's leadership and staff from the list of entities; and omits the requirement for the lead entity to collaborate with the specified entities to develop program policies and procedures, identify community needs and resources, monitor program performance and outcomes, and make recommendations for continuous program improvement. The substitute includes provisions that were not in the introduced setting out the duties of the community alliance or similar group of stakeholders. The substitute omits the provision from the introduced that restricted DFPS to only providing advice to the lead agency in the implementation of the pilot program. The substitute replaces the introduced version's requirement for DFPS to work with the lead entity to develop a capitated funding model and budget that provides a fixed rate of funding per child receiving pilot program services with requirements for DFPS to do the following: seek input from the lead entity regarding the feasibility of a capitated funding model for the provision of services under the pilot program; and develop a capitated funding model that provides such a fixed rate of funding if DFPS determines that a capitated funding model is feasible. The introduced set out certain other requirements for the capitated funding model beyond the fixed rate requirement, and the substitute retains these requirements but specifies that they apply to any funding model used for the pilot program, regardless of whether it is a capitated funding model. Whereas the introduced required DFPS to explore and leverage various funding sources to implement and sustain the pilot program, the substitute requires DFPS to pursue leveraging various funding sources for that purpose. The substitute omits the authorization for DFPS to provide the lead entity with resources, including funds and personnel, to implement the pilot program, which was present in the introduced. Whereas the introduced required DFPS and the lead entity to implement an integrated electronic management system for community-based care provided under the pilot program, the substitute requires DFPS instead to determine the feasibility of implementing such a management system. Accordingly, the substitute replaces the introduced version's requirement for DFPS to provide to the lead entity technical support and access to data as necessary to facilitate implementation of the integrated electronic management system with a requirement for DFPS to provide such support and access as necessary to facilitate implementation of a data management system for effective case management and service coordination, regardless of whether DFPS implements an integrated electronic case management system. The substitute includes provisions absent from the introduced requiring DFPS to do the following: ensure secure and efficient information sharing with stakeholders; and support outcome tracking and reporting through existing or modified systems. Whereas the introduced required DFPS and the lead entity to establish protocols related to the integrated electronic management system to ensure efficient information sharing and data privacy and security, the substitute requires DFPS to establish protocols related to any data management and information-sharing systems used for the pilot program to ensure such efficiency, privacy, and security. The introduced required the lead entity, in collaboration with DFPS and local educational institutions, to develop and implement a workforce development plan to support the pilot program's implementation. The substitute instead requires DFPS, in collaboration with the lead entity, to incorporate such a plan into the pilot program. The substitute revises the introduced version's authorization for the lead entity to apply to the commissioner of DFPS for a waiver, as follows: clarifies that the purpose of the authorization is for implementing the pilot program; and changes the type of provisions that may be waived from any statutory or regulatory requirement that governs the provision of child welfare services, as in the introduced, to any DFPS policy or procedure that governs the provision of such services. The substitute includes a provision absent from the introduced requiring the commissioner of DFPS to adopt a procedure for the application for a waiver. Accordingly, the substitute does not include the introduced version's provisions setting out a requirement for the waiver request content, the conditions under which the commissioner must grant a waiver request, a deadline for the commissioner of DFPS to make a determination, and a requirement for the commissioner to provide a written explanation on denial of a request. The substitute does not include the following provisions that appeared in the introduced relating to the conflict resolution process: the requirement for the conflict resolution process to prioritize collaborative problem solving; the authorization for the process to include mediation if necessary; and the authorization for DFPS or the lead entity, if a conflict or dispute cannot be resolved through the conflict resolution process, to request a review by an independent panel of residents of the catchment area appointed by the governor. The introduced prohibited DFPS from changing any requirement or responsibility or the scope of work of the lead agency unless DFPS requests a change in writing in accordance with the bill's requirements, whereas the substitute requires DFPS to request any change to the contracted scope of work of the lead entity related to the pilot program in writing in accordance with those requirements. The substitute does not include the introduced version's requirement for an agreed-upon change order to be documented in a written amendment to the contract between DFPS and the entity and executed by both parties. The substitute includes provisions absent from the introduced that do the following: exempt a change required by federal or state law or court order or is necessary to ensure child health or safety from the authorization for the lead entity to reject any proposed change that is not adequately funded or substantially alters the provision of community-based care under the contract between DFPS and the lead entity; establish that the provisions relating to the change order process may not be construed to limit or restrict the authority of DFPS to include necessary oversight measures and review processes in a contract to maintain compliance with federal and state requirements; establish that DFPS retains responsibility for the quality of contracted services and programs and must ensure that, at a minimum, services are delivered in accordance with applicable state and federal law; require a lead entity and its subcontractors to comply with certain court orders; provide for the application of state public information law and certain laws regarding confidentiality and privileged communication to the records of a lead entity or its subcontractors that relate to the provision of community-based care under the pilot program; establish that the lead entity and its employees, agents, and representatives are client's representatives of DFPS for purposes of attorney-client privilege; require DFPS to submit a program development report to the legislature regarding the pilot program model not later than January 1, 2027; and condition implementation of the pilot program on it being sufficiently funded. While both versions require DFPS to submit to the legislature an annual implementation report for the pilot program, the substitute specifies that December 1, 2028, is the deadline for the first report and that reports are submitted annually thereafter, whereas the introduced did not include this specification. The substitute extends the deadline for the legislature to review the outcomes and effectiveness of the pilot program from January 1, 2029, as in the introduced, to September 1, 2031. The bill also extends the expiration date of the bill's provisions from September 1, 2029, as in the introduced, to September 1, 2031.
BILL ANALYSIS
# BILL ANALYSIS
C.S.H.B. 1536
By: Craddick
Human Services
Committee Report (Substituted)
C.S.H.B. 1536
By: Craddick
Human Services
Committee Report (Substituted)
BACKGROUND AND PURPOSE According to the Department of Family Protective Services (DFPS), community-based care is a Texas foster care model that utilizes community resources and services to improve outcomes for children and their families by tailoring the process to their unique needs. While this model has been implemented in some areas of Texas, there are certain rural regions for which DFPS requested but did not receive expressions of interest to implement community-based care. C.S.H.B. 1536 provides for a rural community-based care pilot program that would enable the implementation of this innovative model of child welfare services in eligible rural regions.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly granted to the Department of Family and Protective Services in SECTION 1 of this bill.
ANALYSIS C.S.H.B. 1536 amends the Family Code to require the Department of Family and Protective Services (DFPS), in partnership with a lead entity selected under the bill's provisions, to develop and implement a rural community-based care pilot program in an eligible rural region to do the following: implement a community-based model of child welfare services and increase community engagement in the child welfare system; 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 develop a sustainable, replicable model for the provision of child welfare services in rural areas. For purposes of the pilot program, the bill defines the following terms: "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; "eligible rural region" means a catchment area for which DFPS requested but did not receive bids, proposals, or other applicable expressions of interest to implement community-based care under applicable state law in which at least two-thirds of the counties comprising the area have a population of 50,000 or less; and "catchment area" has the meaning assigned to that term under statutory provisions relating to community-based care. Lead Entity C.S.H.B. 1536 limits the entities that may enter into a contract with DFPS to serve as a lead entity to provide services under the pilot program to a nonprofit entity that has a board of directors composed entirely of residents of the catchment area or a local government entity. The bill requires DFPS to take the following actions: in selecting a lead entity, consider whether a prospective contractor has strong community support and partnerships, demonstrated experience leading collaborative initiatives in the region, and the capacity to coordinate with local community organizations to serve children and families; and request local stakeholders in an eligible rural region to provide any necessary information about the region that will assist DFPS in preparing its request for bids, proposals, or other applicable expressions of interest to provide community-based care in the region and in selecting a lead entity to provide community-based care in the region. The bill authorizes DFPS's request for bids, proposals, or other applicable expressions of interest to provide community-based care in the eligible rural region to include, in a single request, services to develop the pilot program model and implement the pilot program. C.S.H.B. 1536 authorizes DFPS, for purposes of addressing the unique challenges of providing community-based care to rural areas of Texas in an efficient manner, to do the following: procure, as a single procurement, services to develop a pilot program model and implement the pilot program, as provided by the bill; and separately procure the services of the independent evaluator under the bill's provisions. Pilot Program Model and Implementation Schedule C.S.H.B. 1536 requires DFPS, in partnership with the lead entity, to 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 the following: family-based services to ensure child safety and prevent entry into foster care, family preservation services as defined under the pilot program for such services, case management, foster care and kinship care services, adoption and post-adoption services, transition services for youth aging out of foster care, and any additional services necessary to meet the needs of children and families in the region; 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; the development and implementation of innovative approaches to improve outcomes for children and families; any identified geographic disparities in service availability and access in the region's child welfare system; the creation and oversight of a quality assurance system; and the implementation of a system to manage financial risks and resources, including state and federal funds. C.S.H.B. 1536 authorizes the lead entity to do the following for purposes of implementing the pilot program model: develop and implement policies and procedures regarding the provision of community-based care within the scope of applicable law and consistent with DFPS policies and procedures, unless waived as provided under the bill; allocate resources as needed to meet community needs; and enter into contracts with service providers, including contracts for case management services. Community Alliance C.S.H.B. 1536 requires DFPS and the lead entity to 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 bill requires DFPS and the lead entity to collaborate with the following groups: local families with lived experience in the child welfare system; local representatives from sectors related to the child welfare system, including the judiciary, education, and health care; and other community stakeholders. C.S.H.B. 1536 establishes that the duties of the community alliance or similar group of stakeholders include the following: joint planning with DFPS and the lead entity regarding resource utilization in the community, including resources appropriated to DFPS and any funds provided by local funding sources for that purpose; conducting needs assessments and establishing of community priorities for service delivery; determining community outcome goals to supplement state-required outcomes; serving as a catalyst for community resource development, including: o identifying existing programs, services, and assistance available from community- and faith-based organizations; o encouraging the development and increased availability of programs, services, and assistance available from community- and faith-based organizations; and o informing DFPS 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; providing for community education and advocacy regarding issues related to delivery of services; and promoting family preservation services. Development of Funding and Resources C.S.H.B. 1536 requires DFPS to take the following actions: seek input from the lead entity regarding the feasibility of a capitated funding model for the provision of services under the pilot program; if DFPS determines that a capitated funding model is feasible, develop such a model that provides a fixed rate of funding per child receiving services under the pilot program; regardless of whether a capitated funding model is implemented, ensure that the funding model for the pilot program does the following: o accounts for the additional costs of providing services to geographically dispersed populations in rural areas, including increased transportation costs, challenges in achieving economies of scale in the provision of services, increased costs for recruiting and retaining qualified staff in rural areas, and costs related to building and maintaining service provider networks in rural areas; o includes financial risk-sharing mechanisms; o incentivizes desired outcomes and cost savings; o supports innovation; o allows for the reinvestment of cost savings into the program; and o allows the lead entity to flexibly allocate funds within the scope of applicable law; and pursue leveraging various funding sources, including state and federal funds, to implement and sustain the pilot program. Data Management and Information Sharing C.S.H.B. 1536 requires DFPS to determine the feasibility of implementing an integrated electronic case management system for community-based care provided under the pilot program that allows for real-time case management, facilitates coordination among service providers, and supports outcome tracking and reporting. The bill requires DFPS, regardless of whether it implements an integrated electronic case management system, to do the following: 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; ensure secure and efficient information sharing with stakeholders; and support outcome tracking and reporting through existing or modified systems. The bill requires DFPS to establish protocols related to any data management and information-sharing systems used for the pilot program to ensure the efficient sharing of information and data privacy and security. Workforce Development C.S.H.B. 1536 requires DFPS, in collaboration with the lead entity, to incorporate into the pilot program a workforce development plan that includes career advancement opportunities, training programs aligned with best practices in child welfare, and strategies that address rural workforce challenges, including strategies for recruiting and retaining child welfare professionals. Waivers C.S.H.B. 1536 authorizes the lead entity, for purposes of implementing the pilot program, to apply to the commissioner of DFPS for a waiver from any department policy or procedure that governs the provision of child welfare services. The bill requires the commissioner to adopt a procedure for the application for such a waiver. Conflict Resolution and Change Order Processes C.S.H.B. 1536 requires DFPS and the lead entity to establish a formal process for resolving conflicts or disputes that arise related to the pilot program. The bill requires DFPS to request any change to the contracted scope of work of the lead entity related to the pilot program in writing. The bill requires such a change request to include the following information: a detailed explanation of the proposed change and reasons for the proposed change; and a comprehensive cost analysis for implementing the proposed change that includes: o the source of funding for the proposed change; or o 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. The bill subjects the change request to negotiation between the lead entity and DFPS. The bill authorizes the lead entity to reject any proposed change that is not adequately funded or substantially alters the provision of community-based care under the contract executed between DFPS 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. The bill requires DFPS and the lead entity to follow the conflict resolution process established under the bill's provisions in the event of a dispute between the two entities regarding a proposed change or the funding for the change. C.S.H.B. 1536 establishes that its provisions relating to the change request process may not be construed to limit or restrict the authority of DFPS to include necessary oversight measures and review processes in a pilot program contract to maintain compliance with federal and state requirements. DFPS retains responsibility for the quality of contracted services and programs and must ensure that, at a minimum, services are delivered in accordance with applicable state and federal law. C.S.H.B. 1536 requires a lead entity and its subcontractors to comply with each applicable court order that is issued in a suit regarding a child for whom the lead entity or its subcontractors have assumed case management responsibilities or that imposes a requirement on DFPS that relates to contracted functions assumed by the lead entity or its subcontractors. Confidentiality and Privileged Communication C.S.H.B. 1536 makes state public information law and statutory provisions regarding confidentiality and privileged communication with respect to investigations of reported child abuse or neglect applicable 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 DFPS. C.S.H.B. 1536 establishes that the lead entity and its employees, agents, and representatives are client's representatives of DFPS for purposes of the attorney-client privilege under the Texas Rules of Evidence as that privilege applies to communications with a prosecuting attorney or other attorney representing DFPS or that attorney's representative in a child protection proceeding. Post-Implementation Independent Evaluation C.S.H.B. 1536 requires DFPS to 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 bill requires DFPS to consult with the lead entity and the community alliance or similar group of stakeholders when selecting the independent evaluator. The bill requires the independent evaluator to assess the following: the outcomes for children and families receiving services under the program; the cost-effectiveness of the program; the effectiveness of the community-based care approach to providing child welfare services in rural areas; community engagement and satisfaction with the program; program implementation fidelity; and any systemic changes made in provision of child welfare services in the region under the program. The bill requires DFPS and the lead entity to cooperate with the evaluation process and provide the independent evaluator all necessary data and information to conduct the evaluation. The bill requires DFPS, the lead entity, and the community alliance or similar group of stakeholders to review the independent evaluator's findings and develop an action plan to address any areas for improvement identified by the independent evaluator. Reports; Implementation Contingency C.S.H.B. 1536 requires DFPS to submit a program development report to the legislature regarding the pilot program model not later than January 1, 2027. The bill conditions implementation of the pilot program by DFPS on the pilot program being sufficiently funded. C.S.H.B. 1536 requires DFPS, not later than December 1, 2028, and annually thereafter, to submit a report to the legislature relating to the implementation of the pilot program that includes the following components: the findings of the independent evaluator, if applicable, including any recommendations from the independent evaluator for improving and expanding the pilot program; information about each denied waiver, including the reason for denial; and a detailed account of each agreed-upon change order that includes an explanation of the change, the reason for the change, the cost of funding the change, and how the cost was addressed. Rulemaking C.S.H.B. 1536 authorizes DFPS to adopt rules necessary to implement the bill's provisions. Program Review; Expiration C.S.H.B. 1536 requires the legislature, not later than September 1, 2031, to review the outcomes and effectiveness of the pilot program to determine whether to extend, modify, or conclude the program. The bill's provisions expire September 1, 2031.
EFFECTIVE DATE September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 1536 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. Whereas the introduced required DFPS to establish a rural community-based care pilot program, the substitute requires DFPS to develop and implement such a program in partnership with a selected lead entity. The introduced defined "community-based care" for purposes of the pilot program by reference to an existing statutory definition of that term, while the substitute establishes a new definition that is similar except specifies that the applicable services are provided by a community-based nonprofit or local governmental entity under the pilot program and not under a contract as specified by the existing statutory definition. The substitute includes provisions absent from the introduced that do the following: authorize DFPS's request for bids, proposals, or other applicable expressions of interest to include, in a single request, services to develop the pilot program model and implement the program; and authorize DFPS to procure such services as a single procurement and to separately procure the services of the independent evaluator. Both versions provide for the development of a program model, but the substitute clarifies that it is a pilot program model and changes the entity responsible for developing the model from the lead entity, as in the introduced, to DFPS in partnership with the lead entity. The substitute revises the requirements for the model's content by doing the following: including a specification not in the introduced that the implementation timeline included in the model must have identified funding; replacing the introduced version's requirement for the model to include early intervention services to prevent entry into foster care with a requirement for the model to address family-based services to ensure child safety and prevent entry into foster care; omitting the provision from the introduced that defined the term "case management" by reference; replacing the introduced version's requirement for the model to address any inequities in the region's child welfare system with a requirement for the model to address any identified geographic disparities in service availability and access in the region's child welfare system; requiring the model to address both the creation and oversight of a quality assurance system, rather than only the establishment of such a system as in the introduced; and specifying that the system for managing financial resources required by the introduced is also for the management of financial risks. With respect to the authorization for a lead entity to develop and implement policies and procedures regarding the provision of community-based care for purposes of implementing the pilot program model, the substitute specifies that such policies and procedures must be consistent with DFPS policies and procedures unless waived under the bill, whereas the introduced did not. The substitute also includes a specification absent from the introduced that the lead entity's authority to enter into contracts with service providers includes contracts for case management services. The substitute does not include the requirement that appeared in the introduced for the lead entity to establish a collaborative governance structure to provide oversight and guidance for the provision of community-based care under the pilot program. Instead, the substitute requires DFPS and the lead entity to 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 substitute retains the provision of the introduced listing specified entities with which the lead entity is required to collaborate but revises the introduced version's provisions relating to such collaboration as follows: makes the requirement to collaborate with the specified entities also applicable to DFPS; omits the lead entity's leadership and staff from the list of entities; and omits the requirement for the lead entity to collaborate with the specified entities to develop program policies and procedures, identify community needs and resources, monitor program performance and outcomes, and make recommendations for continuous program improvement. The substitute includes provisions that were not in the introduced setting out the duties of the community alliance or similar group of stakeholders. The substitute omits the provision from the introduced that restricted DFPS to only providing advice to the lead agency in the implementation of the pilot program. The substitute replaces the introduced version's requirement for DFPS to work with the lead entity to develop a capitated funding model and budget that provides a fixed rate of funding per child receiving pilot program services with requirements for DFPS to do the following: seek input from the lead entity regarding the feasibility of a capitated funding model for the provision of services under the pilot program; and develop a capitated funding model that provides such a fixed rate of funding if DFPS determines that a capitated funding model is feasible. The introduced set out certain other requirements for the capitated funding model beyond the fixed rate requirement, and the substitute retains these requirements but specifies that they apply to any funding model used for the pilot program, regardless of whether it is a capitated funding model. Whereas the introduced required DFPS to explore and leverage various funding sources to implement and sustain the pilot program, the substitute requires DFPS to pursue leveraging various funding sources for that purpose. The substitute omits the authorization for DFPS to provide the lead entity with resources, including funds and personnel, to implement the pilot program, which was present in the introduced. Whereas the introduced required DFPS and the lead entity to implement an integrated electronic management system for community-based care provided under the pilot program, the substitute requires DFPS instead to determine the feasibility of implementing such a management system. Accordingly, the substitute replaces the introduced version's requirement for DFPS to provide to the lead entity technical support and access to data as necessary to facilitate implementation of the integrated electronic management system with a requirement for DFPS to provide such support and access as necessary to facilitate implementation of a data management system for effective case management and service coordination, regardless of whether DFPS implements an integrated electronic case management system. The substitute includes provisions absent from the introduced requiring DFPS to do the following: ensure secure and efficient information sharing with stakeholders; and support outcome tracking and reporting through existing or modified systems. Whereas the introduced required DFPS and the lead entity to establish protocols related to the integrated electronic management system to ensure efficient information sharing and data privacy and security, the substitute requires DFPS to establish protocols related to any data management and information-sharing systems used for the pilot program to ensure such efficiency, privacy, and security. The introduced required the lead entity, in collaboration with DFPS and local educational institutions, to develop and implement a workforce development plan to support the pilot program's implementation. The substitute instead requires DFPS, in collaboration with the lead entity, to incorporate such a plan into the pilot program. The substitute revises the introduced version's authorization for the lead entity to apply to the commissioner of DFPS for a waiver, as follows: clarifies that the purpose of the authorization is for implementing the pilot program; and changes the type of provisions that may be waived from any statutory or regulatory requirement that governs the provision of child welfare services, as in the introduced, to any DFPS policy or procedure that governs the provision of such services. The substitute includes a provision absent from the introduced requiring the commissioner of DFPS to adopt a procedure for the application for a waiver. Accordingly, the substitute does not include the introduced version's provisions setting out a requirement for the waiver request content, the conditions under which the commissioner must grant a waiver request, a deadline for the commissioner of DFPS to make a determination, and a requirement for the commissioner to provide a written explanation on denial of a request. The substitute does not include the following provisions that appeared in the introduced relating to the conflict resolution process: the requirement for the conflict resolution process to prioritize collaborative problem solving; the authorization for the process to include mediation if necessary; and the authorization for DFPS or the lead entity, if a conflict or dispute cannot be resolved through the conflict resolution process, to request a review by an independent panel of residents of the catchment area appointed by the governor. The introduced prohibited DFPS from changing any requirement or responsibility or the scope of work of the lead agency unless DFPS requests a change in writing in accordance with the bill's requirements, whereas the substitute requires DFPS to request any change to the contracted scope of work of the lead entity related to the pilot program in writing in accordance with those requirements. The substitute does not include the introduced version's requirement for an agreed-upon change order to be documented in a written amendment to the contract between DFPS and the entity and executed by both parties. The substitute includes provisions absent from the introduced that do the following: exempt a change required by federal or state law or court order or is necessary to ensure child health or safety from the authorization for the lead entity to reject any proposed change that is not adequately funded or substantially alters the provision of community-based care under the contract between DFPS and the lead entity; establish that the provisions relating to the change order process may not be construed to limit or restrict the authority of DFPS to include necessary oversight measures and review processes in a contract to maintain compliance with federal and state requirements; establish that DFPS retains responsibility for the quality of contracted services and programs and must ensure that, at a minimum, services are delivered in accordance with applicable state and federal law; require a lead entity and its subcontractors to comply with certain court orders; provide for the application of state public information law and certain laws regarding confidentiality and privileged communication to the records of a lead entity or its subcontractors that relate to the provision of community-based care under the pilot program; establish that the lead entity and its employees, agents, and representatives are client's representatives of DFPS for purposes of attorney-client privilege; require DFPS to submit a program development report to the legislature regarding the pilot program model not later than January 1, 2027; and condition implementation of the pilot program on it being sufficiently funded. While both versions require DFPS to submit to the legislature an annual implementation report for the pilot program, the substitute specifies that December 1, 2028, is the deadline for the first report and that reports are submitted annually thereafter, whereas the introduced did not include this specification. The substitute extends the deadline for the legislature to review the outcomes and effectiveness of the pilot program from January 1, 2029, as in the introduced, to September 1, 2031. The bill also extends the expiration date of the bill's provisions from September 1, 2029, as in the introduced, to September 1, 2031.
BACKGROUND AND PURPOSE
According to the Department of Family Protective Services (DFPS), community-based care is a Texas foster care model that utilizes community resources and services to improve outcomes for children and their families by tailoring the process to their unique needs. While this model has been implemented in some areas of Texas, there are certain rural regions for which DFPS requested but did not receive expressions of interest to implement community-based care. C.S.H.B. 1536 provides for a rural community-based care pilot program that would enable the implementation of this innovative model of child welfare services in eligible rural regions.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the Department of Family and Protective Services in SECTION 1 of this bill.
ANALYSIS
C.S.H.B. 1536 amends the Family Code to require the Department of Family and Protective Services (DFPS), in partnership with a lead entity selected under the bill's provisions, to develop and implement a rural community-based care pilot program in an eligible rural region to do the following:
implement a community-based model of child welfare services and increase community engagement in the child welfare system;
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
develop a sustainable, replicable model for the provision of child welfare services in rural areas.
For purposes of the pilot program, the bill defines the following terms:
"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;
"eligible rural region" means a catchment area for which DFPS requested but did not receive bids, proposals, or other applicable expressions of interest to implement community-based care under applicable state law in which at least two-thirds of the counties comprising the area have a population of 50,000 or less; and
"catchment area" has the meaning assigned to that term under statutory provisions relating to community-based care.
Lead Entity
C.S.H.B. 1536 limits the entities that may enter into a contract with DFPS to serve as a lead entity to provide services under the pilot program to a nonprofit entity that has a board of directors composed entirely of residents of the catchment area or a local government entity. The bill requires DFPS to take the following actions:
in selecting a lead entity, consider whether a prospective contractor has strong community support and partnerships, demonstrated experience leading collaborative initiatives in the region, and the capacity to coordinate with local community organizations to serve children and families; and
request local stakeholders in an eligible rural region to provide any necessary information about the region that will assist DFPS in preparing its request for bids, proposals, or other applicable expressions of interest to provide community-based care in the region and in selecting a lead entity to provide community-based care in the region.
The bill authorizes DFPS's request for bids, proposals, or other applicable expressions of interest to provide community-based care in the eligible rural region to include, in a single request, services to develop the pilot program model and implement the pilot program.
C.S.H.B. 1536 authorizes DFPS, for purposes of addressing the unique challenges of providing community-based care to rural areas of Texas in an efficient manner, to do the following:
procure, as a single procurement, services to develop a pilot program model and implement the pilot program, as provided by the bill; and
separately procure the services of the independent evaluator under the bill's provisions.
Pilot Program Model and Implementation Schedule
C.S.H.B. 1536 requires DFPS, in partnership with the lead entity, to 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 the following:
family-based services to ensure child safety and prevent entry into foster care, family preservation services as defined under the pilot program for such services, case management, foster care and kinship care services, adoption and post-adoption services, transition services for youth aging out of foster care, and any additional services necessary to meet the needs of children and families in the region;
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;
the development and implementation of innovative approaches to improve outcomes for children and families;
any identified geographic disparities in service availability and access in the region's child welfare system;
the creation and oversight of a quality assurance system; and
the implementation of a system to manage financial risks and resources, including state and federal funds.
C.S.H.B. 1536 authorizes the lead entity to do the following for purposes of implementing the pilot program model:
develop and implement policies and procedures regarding the provision of community-based care within the scope of applicable law and consistent with DFPS policies and procedures, unless waived as provided under the bill;
allocate resources as needed to meet community needs; and
enter into contracts with service providers, including contracts for case management services.
Community Alliance
C.S.H.B. 1536 requires DFPS and the lead entity to 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 bill requires DFPS and the lead entity to collaborate with the following groups:
local families with lived experience in the child welfare system;
local representatives from sectors related to the child welfare system, including the judiciary, education, and health care; and
other community stakeholders.
C.S.H.B. 1536 establishes that the duties of the community alliance or similar group of stakeholders include the following:
joint planning with DFPS and the lead entity regarding resource utilization in the community, including resources appropriated to DFPS and any funds provided by local funding sources for that purpose;
conducting needs assessments and establishing of community priorities for service delivery;
determining community outcome goals to supplement state-required outcomes;
serving as a catalyst for community resource development, including:
o identifying existing programs, services, and assistance available from community- and faith-based organizations;
o encouraging the development and increased availability of programs, services, and assistance available from community- and faith-based organizations; and
o informing DFPS 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;
providing for community education and advocacy regarding issues related to delivery of services; and
promoting family preservation services.
Development of Funding and Resources
C.S.H.B. 1536 requires DFPS to take the following actions:
seek input from the lead entity regarding the feasibility of a capitated funding model for the provision of services under the pilot program;
if DFPS determines that a capitated funding model is feasible, develop such a model that provides a fixed rate of funding per child receiving services under the pilot program;
regardless of whether a capitated funding model is implemented, ensure that the funding model for the pilot program does the following:
o accounts for the additional costs of providing services to geographically dispersed populations in rural areas, including increased transportation costs, challenges in achieving economies of scale in the provision of services, increased costs for recruiting and retaining qualified staff in rural areas, and costs related to building and maintaining service provider networks in rural areas;
o includes financial risk-sharing mechanisms;
o incentivizes desired outcomes and cost savings;
o supports innovation;
o allows for the reinvestment of cost savings into the program; and
o allows the lead entity to flexibly allocate funds within the scope of applicable law; and
pursue leveraging various funding sources, including state and federal funds, to implement and sustain the pilot program.
Data Management and Information Sharing
C.S.H.B. 1536 requires DFPS to determine the feasibility of implementing an integrated electronic case management system for community-based care provided under the pilot program that allows for real-time case management, facilitates coordination among service providers, and supports outcome tracking and reporting. The bill requires DFPS, regardless of whether it implements an integrated electronic case management system, to do the following:
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;
ensure secure and efficient information sharing with stakeholders; and
support outcome tracking and reporting through existing or modified systems.
The bill requires DFPS to establish protocols related to any data management and information-sharing systems used for the pilot program to ensure the efficient sharing of information and data privacy and security.
Workforce Development
C.S.H.B. 1536 requires DFPS, in collaboration with the lead entity, to incorporate into the pilot program a workforce development plan that includes career advancement opportunities, training programs aligned with best practices in child welfare, and strategies that address rural workforce challenges, including strategies for recruiting and retaining child welfare professionals.
Waivers
C.S.H.B. 1536 authorizes the lead entity, for purposes of implementing the pilot program, to apply to the commissioner of DFPS for a waiver from any department policy or procedure that governs the provision of child welfare services. The bill requires the commissioner to adopt a procedure for the application for such a waiver.
Conflict Resolution and Change Order Processes
C.S.H.B. 1536 requires DFPS and the lead entity to establish a formal process for resolving conflicts or disputes that arise related to the pilot program. The bill requires DFPS to request any change to the contracted scope of work of the lead entity related to the pilot program in writing. The bill requires such a change request to include the following information:
a detailed explanation of the proposed change and reasons for the proposed change; and
a comprehensive cost analysis for implementing the proposed change that includes:
o the source of funding for the proposed change; or
o 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.
The bill subjects the change request to negotiation between the lead entity and DFPS. The bill authorizes the lead entity to reject any proposed change that is not adequately funded or substantially alters the provision of community-based care under the contract executed between DFPS 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. The bill requires DFPS and the lead entity to follow the conflict resolution process established under the bill's provisions in the event of a dispute between the two entities regarding a proposed change or the funding for the change.
C.S.H.B. 1536 establishes that its provisions relating to the change request process may not be construed to limit or restrict the authority of DFPS to include necessary oversight measures and review processes in a pilot program contract to maintain compliance with federal and state requirements. DFPS retains responsibility for the quality of contracted services and programs and must ensure that, at a minimum, services are delivered in accordance with applicable state and federal law.
C.S.H.B. 1536 requires a lead entity and its subcontractors to comply with each applicable court order that is issued in a suit regarding a child for whom the lead entity or its subcontractors have assumed case management responsibilities or that imposes a requirement on DFPS that relates to contracted functions assumed by the lead entity or its subcontractors.
Confidentiality and Privileged Communication
C.S.H.B. 1536 makes state public information law and statutory provisions regarding confidentiality and privileged communication with respect to investigations of reported child abuse or neglect applicable 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 DFPS.
C.S.H.B. 1536 establishes that the lead entity and its employees, agents, and representatives are client's representatives of DFPS for purposes of the attorney-client privilege under the Texas Rules of Evidence as that privilege applies to communications with a prosecuting attorney or other attorney representing DFPS or that attorney's representative in a child protection proceeding.
Post-Implementation Independent Evaluation
C.S.H.B. 1536 requires DFPS to 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 bill requires DFPS to consult with the lead entity and the community alliance or similar group of stakeholders when selecting the independent evaluator. The bill requires the independent evaluator to assess the following:
the outcomes for children and families receiving services under the program;
the cost-effectiveness of the program;
the effectiveness of the community-based care approach to providing child welfare services in rural areas;
community engagement and satisfaction with the program;
program implementation fidelity; and
any systemic changes made in provision of child welfare services in the region under the program.
The bill requires DFPS and the lead entity to cooperate with the evaluation process and provide the independent evaluator all necessary data and information to conduct the evaluation. The bill requires DFPS, the lead entity, and the community alliance or similar group of stakeholders to review the independent evaluator's findings and develop an action plan to address any areas for improvement identified by the independent evaluator.
Reports; Implementation Contingency
C.S.H.B. 1536 requires DFPS to submit a program development report to the legislature regarding the pilot program model not later than January 1, 2027. The bill conditions implementation of the pilot program by DFPS on the pilot program being sufficiently funded.
C.S.H.B. 1536 requires DFPS, not later than December 1, 2028, and annually thereafter, to submit a report to the legislature relating to the implementation of the pilot program that includes the following components:
the findings of the independent evaluator, if applicable, including any recommendations from the independent evaluator for improving and expanding the pilot program;
information about each denied waiver, including the reason for denial; and
a detailed account of each agreed-upon change order that includes an explanation of the change, the reason for the change, the cost of funding the change, and how the cost was addressed.
Rulemaking
C.S.H.B. 1536 authorizes DFPS to adopt rules necessary to implement the bill's provisions.
Program Review; Expiration
C.S.H.B. 1536 requires the legislature, not later than September 1, 2031, to review the outcomes and effectiveness of the pilot program to determine whether to extend, modify, or conclude the program. The bill's provisions expire September 1, 2031.
EFFECTIVE DATE
September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 1536 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
Whereas the introduced required DFPS to establish a rural community-based care pilot program, the substitute requires DFPS to develop and implement such a program in partnership with a selected lead entity. The introduced defined "community-based care" for purposes of the pilot program by reference to an existing statutory definition of that term, while the substitute establishes a new definition that is similar except specifies that the applicable services are provided by a community-based nonprofit or local governmental entity under the pilot program and not under a contract as specified by the existing statutory definition.
The substitute includes provisions absent from the introduced that do the following:
authorize DFPS's request for bids, proposals, or other applicable expressions of interest to include, in a single request, services to develop the pilot program model and implement the program; and
authorize DFPS to procure such services as a single procurement and to separately procure the services of the independent evaluator.
Both versions provide for the development of a program model, but the substitute clarifies that it is a pilot program model and changes the entity responsible for developing the model from the lead entity, as in the introduced, to DFPS in partnership with the lead entity. The substitute revises the requirements for the model's content by doing the following:
including a specification not in the introduced that the implementation timeline included in the model must have identified funding;
replacing the introduced version's requirement for the model to include early intervention services to prevent entry into foster care with a requirement for the model to address family-based services to ensure child safety and prevent entry into foster care;
omitting the provision from the introduced that defined the term "case management" by reference;
replacing the introduced version's requirement for the model to address any inequities in the region's child welfare system with a requirement for the model to address any identified geographic disparities in service availability and access in the region's child welfare system;
requiring the model to address both the creation and oversight of a quality assurance system, rather than only the establishment of such a system as in the introduced; and
specifying that the system for managing financial resources required by the introduced is also for the management of financial risks.
With respect to the authorization for a lead entity to develop and implement policies and procedures regarding the provision of community-based care for purposes of implementing the pilot program model, the substitute specifies that such policies and procedures must be consistent with DFPS policies and procedures unless waived under the bill, whereas the introduced did not. The substitute also includes a specification absent from the introduced that the lead entity's authority to enter into contracts with service providers includes contracts for case management services.
The substitute does not include the requirement that appeared in the introduced for the lead entity to establish a collaborative governance structure to provide oversight and guidance for the provision of community-based care under the pilot program. Instead, the substitute requires DFPS and the lead entity to 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 substitute retains the provision of the introduced listing specified entities with which the lead entity is required to collaborate but revises the introduced version's provisions relating to such collaboration as follows:
makes the requirement to collaborate with the specified entities also applicable to DFPS;
omits the lead entity's leadership and staff from the list of entities; and
omits the requirement for the lead entity to collaborate with the specified entities to develop program policies and procedures, identify community needs and resources, monitor program performance and outcomes, and make recommendations for continuous program improvement.
The substitute includes provisions that were not in the introduced setting out the duties of the community alliance or similar group of stakeholders. The substitute omits the provision from the introduced that restricted DFPS to only providing advice to the lead agency in the implementation of the pilot program.
The substitute replaces the introduced version's requirement for DFPS to work with the lead entity to develop a capitated funding model and budget that provides a fixed rate of funding per child receiving pilot program services with requirements for DFPS to do the following:
seek input from the lead entity regarding the feasibility of a capitated funding model for the provision of services under the pilot program; and
develop a capitated funding model that provides such a fixed rate of funding if DFPS determines that a capitated funding model is feasible.
The introduced set out certain other requirements for the capitated funding model beyond the fixed rate requirement, and the substitute retains these requirements but specifies that they apply to any funding model used for the pilot program, regardless of whether it is a capitated funding model.
Whereas the introduced required DFPS to explore and leverage various funding sources to implement and sustain the pilot program, the substitute requires DFPS to pursue leveraging various funding sources for that purpose. The substitute omits the authorization for DFPS to provide the lead entity with resources, including funds and personnel, to implement the pilot program, which was present in the introduced.
Whereas the introduced required DFPS and the lead entity to implement an integrated electronic management system for community-based care provided under the pilot program, the substitute requires DFPS instead to determine the feasibility of implementing such a management system. Accordingly, the substitute replaces the introduced version's requirement for DFPS to provide to the lead entity technical support and access to data as necessary to facilitate implementation of the integrated electronic management system with a requirement for DFPS to provide such support and access as necessary to facilitate implementation of a data management system for effective case management and service coordination, regardless of whether DFPS implements an integrated electronic case management system. The substitute includes provisions absent from the introduced requiring DFPS to do the following:
ensure secure and efficient information sharing with stakeholders; and
support outcome tracking and reporting through existing or modified systems.
Whereas the introduced required DFPS and the lead entity to establish protocols related to the integrated electronic management system to ensure efficient information sharing and data privacy and security, the substitute requires DFPS to establish protocols related to any data management and information-sharing systems used for the pilot program to ensure such efficiency, privacy, and security.
The introduced required the lead entity, in collaboration with DFPS and local educational institutions, to develop and implement a workforce development plan to support the pilot program's implementation. The substitute instead requires DFPS, in collaboration with the lead entity, to incorporate such a plan into the pilot program.
The substitute revises the introduced version's authorization for the lead entity to apply to the commissioner of DFPS for a waiver, as follows:
clarifies that the purpose of the authorization is for implementing the pilot program; and
changes the type of provisions that may be waived from any statutory or regulatory requirement that governs the provision of child welfare services, as in the introduced, to any DFPS policy or procedure that governs the provision of such services.
The substitute includes a provision absent from the introduced requiring the commissioner of DFPS to adopt a procedure for the application for a waiver. Accordingly, the substitute does not include the introduced version's provisions setting out a requirement for the waiver request content, the conditions under which the commissioner must grant a waiver request, a deadline for the commissioner of DFPS to make a determination, and a requirement for the commissioner to provide a written explanation on denial of a request.
The substitute does not include the following provisions that appeared in the introduced relating to the conflict resolution process:
the requirement for the conflict resolution process to prioritize collaborative problem solving;
the authorization for the process to include mediation if necessary; and
the authorization for DFPS or the lead entity, if a conflict or dispute cannot be resolved through the conflict resolution process, to request a review by an independent panel of residents of the catchment area appointed by the governor.
The introduced prohibited DFPS from changing any requirement or responsibility or the scope of work of the lead agency unless DFPS requests a change in writing in accordance with the bill's requirements, whereas the substitute requires DFPS to request any change to the contracted scope of work of the lead entity related to the pilot program in writing in accordance with those requirements. The substitute does not include the introduced version's requirement for an agreed-upon change order to be documented in a written amendment to the contract between DFPS and the entity and executed by both parties.
The substitute includes provisions absent from the introduced that do the following:
exempt a change required by federal or state law or court order or is necessary to ensure child health or safety from the authorization for the lead entity to reject any proposed change that is not adequately funded or substantially alters the provision of community-based care under the contract between DFPS and the lead entity;
establish that the provisions relating to the change order process may not be construed to limit or restrict the authority of DFPS to include necessary oversight measures and review processes in a contract to maintain compliance with federal and state requirements;
establish that DFPS retains responsibility for the quality of contracted services and programs and must ensure that, at a minimum, services are delivered in accordance with applicable state and federal law;
require a lead entity and its subcontractors to comply with certain court orders;
provide for the application of state public information law and certain laws regarding confidentiality and privileged communication to the records of a lead entity or its subcontractors that relate to the provision of community-based care under the pilot program;
establish that the lead entity and its employees, agents, and representatives are client's representatives of DFPS for purposes of attorney-client privilege;
require DFPS to submit a program development report to the legislature regarding the pilot program model not later than January 1, 2027; and
condition implementation of the pilot program on it being sufficiently funded.
While both versions require DFPS to submit to the legislature an annual implementation report for the pilot program, the substitute specifies that December 1, 2028, is the deadline for the first report and that reports are submitted annually thereafter, whereas the introduced did not include this specification. The substitute extends the deadline for the legislature to review the outcomes and effectiveness of the pilot program from January 1, 2029, as in the introduced, to September 1, 2031. The bill also extends the expiration date of the bill's provisions from September 1, 2029, as in the introduced, to September 1, 2031.