By: Kolkhorst S.B. No. 1398
(In the Senate - Filed February 19, 2025; March 6, 2025,
read first time and referred to Committee on Health & Human
Services; April 7, 2025, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 0;
April 7, 2025, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1398 By: Hughes
A BILL TO BE ENTITLED
AN ACT
relating to certain procedures in a suit affecting the parent-child
relationship for a child placed in the conservatorship of the
Department of Family and Protective Services and the provision of
family preservation services and community-based foster care.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 262.401(3), Family Code, is amended to
read as follows:
(3) "Family preservation service" means [a]
time-limited, family-focused services [service], including
services [a service] subject to the Family First Prevention
Services Act (Title VII, Div. E, Pub. L. No. 115-123) and services
approved under the Title IV-E state plan[,] provided to the family
of a child who is:
(A) a candidate for foster care to prevent or
eliminate the need to remove the child and to allow the child to
remain safely with the child's family; [or]
(B) a pregnant or parenting foster youth; or
(C) a member of a household that is subject to an
order rendered under Section 264.203.
SECTION 2. The heading to Section 262.411, Family Code, is
amended to read as follows:
Sec. 262.411. SELECTION OF SERVICE PROVIDER;
REIMBURSEMENT.
SECTION 3. Section 262.411(c), Family Code, is amended to
read as follows:
(c) A [parent,] managing conservator, guardian, or other
member of a household who is not a parent and who obtains family
preservation services from a provider selected by the person is
responsible for the cost of those services.
SECTION 4. Subchapter A, Chapter 263, Family Code, is
amended by adding Section 263.0022 to read as follows:
Sec. 263.0022. TEMPORARY EMERGENCY SUPERVISION; MONTHLY
REPORT. (a) In this section, "temporary emergency supervision"
means the supervision and care provided by the department or a
single source continuum contractor for a child without placement
for whom the department has been appointed as the temporary or
permanent managing conservator.
(b) The department or a single source continuum contractor
may not advocate for and a court may not render an order placing a
child in temporary emergency supervision if an appropriate
placement is available. The department or the contractor and the
court may not consider a child's refusal to stay in a placement when
determining whether the placement is appropriate.
(c) Before a court may order temporary emergency
supervision for a child, the department or the single source
continuum contractor shall submit a report to the court that
includes information regarding each attempted placement,
including:
(1) the type of placement;
(2) the location of the placement;
(3) the date the department or the contractor
contacted the placement; and
(4) the reason the department or the contractor
determined the placement was not appropriate.
SECTION 5. Section 264.107(g), Family Code, is amended to
read as follows:
(g) If the department or single source continuum contractor
is unable to find an appropriate placement for a child, an employee
of the department or contractor who has on file with the department
or contractor, as applicable, a background and criminal history
check may provide temporary emergency supervision [care] for the
child. The employee may not provide temporary emergency supervision
[care] under this subsection in the employee's residence. The
department or contractor shall provide notice to the court for a
child placed in temporary emergency supervision [care] under this
subsection not later than the next business day after the date the
child is placed in temporary emergency supervision [care].
SECTION 6. Section 264.1261(b), Family Code, is amended to
read as follows:
(b) Appropriate department management personnel from a
child protective services region in which community-based care has
not been implemented, in collaboration with foster care providers,
faith-based organizations [entities], and child advocates in that
region, shall use data collected by the department on foster care
capacity needs and availability of each type of foster care and
kinship placement in the region to create a plan to address the
substitute care capacity needs in the region. The plan must
identify both short-term and long-term goals and strategies for
addressing those capacity needs.
SECTION 7. Section 264.152, Family Code, is amended by
amending Subdivision (2) and adding Subdivisions (5) and (6) to
read as follows:
(2) "Case management" means the provision of case
management services to a child for whom the department has been
appointed temporary or permanent managing conservator or to the
child's family, a young adult in extended foster care, a relative or
kinship caregiver, or a child who has been placed in the catchment
area through the Interstate Compact on the Placement of Children,
and includes:
(A) caseworker visits with the child;
(B) family and caregiver visits;
(C) convening and conducting permanency planning
meetings;
(D) the development and revision of child and
family plans of service, including a permanency plan and goals for a
child or young adult in care;
(E) the coordination and monitoring of services
required by the child and the child's family or caregivers,
including:
(i) pre-adoption and post-adoption
assistance;
(ii) services for children in the
conservatorship of the department who must transition to
independent living; and
(iii) services related to family
reunification, including services to support a monitored return;
(F) the assumption of court-related duties
regarding the child, including:
(i) providing any required notifications or
consultations;
(ii) preparing court reports;
(iii) attending judicial and permanency
hearings, trials, and mediations;
(iv) complying with applicable court
orders; and
(v) ensuring the child is progressing
toward the goal of permanency within state and federally mandated
guidelines; and
(G) any other function or service that the
department determines necessary to allow a single source continuum
contractor to assume responsibility for case management.
(5) "Faith-based organization" means a religious or
denominational institution or organization, including an
organization operated for religious, educational, or charitable
purposes and operated, supervised, or controlled, in whole or in
part, by or in connection with a religious organization.
(6) "Family preservation service" means time-limited,
family-focused services, including services subject to the Family
First Prevention Services Act (Title VII, Div. E, Pub. L.
No. 115-123) and services approved under the Title IV-E state plan
provided to the family of a child who is:
(A) a candidate for foster care to prevent or
eliminate the need to remove the child and to allow the child to
remain safely with the child's family;
(B) a pregnant or parenting foster youth; or
(C) a member of a household that is subject to an
order rendered under Section 264.203.
SECTION 8. Section 264.153, Family Code, is amended to read
as follows:
Sec. 264.153. COMMUNITY-BASED CARE IMPLEMENTATION PLAN.
(a) The department shall develop and maintain a plan for
implementing community-based care. The plan must:
(1) describe the department's expectations, goals, and
approach to implementing community-based care;
(2) include a timeline for implementing
community-based care throughout this state, any limitations
related to the implementation, and a progressive intervention plan
and a contingency plan to provide continuity of the delivery of
foster care services and services for relative and kinship
caregivers if a contract with a single source continuum contractor
ends prematurely;
(3) delineate and define the case management roles and
responsibilities of the department and the department's
contractors and the duties, employees, and related funding that
will be transferred to the contractor by the department;
(4) identify any training needs and include long-range
and continuous plans for training and cross-training staff,
including plans to train caseworkers using the standardized
curriculum created by the human trafficking prevention task force
under Section 402.035(d)(6), Government Code, as that section
existed on August 31, 2017;
(5) include a plan for evaluating the costs and tasks
associated with each contract procurement, including the initial
and ongoing contract costs for the department and contractor;
(6) include the department's contract monitoring
approach and a plan for evaluating the continuous performance of
each contractor and the community-based care system as a whole that
includes an [independent] evaluation of each contractor's
processes and fiscal and qualitative outcomes; and
(7) include a report on transition issues resulting
from implementation of community-based care.
(b) The department shall annually:
(1) update the implementation plan developed under
this section and post the updated plan on the department's Internet
website; and
(2) post on the department's Internet website the
progress the department has made toward its goals for implementing
community-based care, including:
(A) performance measure data from each single
source continuum contractor;
(B) quality improvement plans and corrective
action plans for each contractor; and
(C) a summary of contractor actions to be taken
to address the plans described by Paragraph (B).
SECTION 9. The heading to Section 264.154, Family Code, is
amended to read as follows:
Sec. 264.154. QUALIFICATIONS OF SINGLE SOURCE CONTINUUM
CONTRACTOR; SELECTION; PUBLICATION.
SECTION 10. Section 264.154, Family Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d) The department shall annually post on the department's
Internet website:
(1) the list of single source continuum contractors
providing services under this subchapter; and
(2) a description of each contractor's full corporate
structure, including divisions and subsidiaries.
(e) A single source continuum contractor shall provide
information described by Subsection (d)(2) to the department.
SECTION 11. The heading to Section 264.155, Family Code, is
amended to read as follows:
Sec. 264.155. [REQUIRED] CONTRACT PROVISIONS.
SECTION 12. Section 264.155, Family Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A contract with a single source continuum contractor to
provide community-based care services in a catchment area must
include provisions that:
(1) establish a sequential plan [timeline] for the
implementation of community-based care in the catchment area,
including a sequential plan [timeline] for implementing the
following in an order determined by the department based on
community needs and readiness and contractor capacity:
(A) family preservation services;
(B) case management services for children,
families, and relative and kinship caregivers receiving services in
the catchment area; and
(C) [(B)] family reunification support services
to be provided after a child receiving services from the contractor
is returned to the child's family;
(2) establish conditions for the single source
continuum contractor's access to relevant department data and
require the participation of the contractor in the data access and
standards governance council created under Section 264.159;
(3) require the single source continuum contractor to
create a single process for the training and use of alternative
caregivers for all child-placing agencies in the catchment area to
facilitate reciprocity of licenses for alternative caregivers
between agencies, including respite and overnight care providers,
as those terms are defined by department rule;
(4) require the single source continuum contractor to
maintain a diverse network of service providers that offer a range
of foster capacity options and that can accommodate children from
diverse cultural backgrounds;
(5) require [allow] the department to conduct annual
[a] performance reviews [review] of the contractor beginning on the
first anniversary of the contract to:
(A) [18 months after the contractor has begun
providing case management and family reunification support
services to all children and families in the catchment area and]
determine if the contractor has achieved applicable [any]
performance outcomes and other requirements specified in the
contract as determined by services implemented at the time of the
review, including data related to:
(i) the percentage of children reunified
with their families after a suit is filed by the department;
(ii) the percentage of children who reenter
the conservatorship of the department;
(iii) the percentage of children who remain
in the conservatorship of the department until the age of majority;
(iv) the percentage of children who
experience multiple placement moves while in substitute care; and
(v) the percentage of families completing
family preservation services to mitigate findings of abuse or
neglect;
(B) ensure service authorizations are based on
documented criteria and are not being used to negatively impact a
child's access to care by conducting utilization reviews on a
sample of cases at least biennially;
(C) review the contractor's compliance with
requirements related to conflicts of interest and financial
disclosures; and
(D) assess the adequacy of the contractor's
provider network and service delivery system;
(6) following the review under Subdivision (5),
require [allow] the department to:
(A) publish the review on the department's
Internet website;
(B) impose financial remedies [penalties] on the
contractor for failing to:
(i) meet applicable [any specified]
performance outcomes, contract requirements, or deliverables, as
determined by services implemented at the time of the review; or
(ii) follow applicable court orders
relating to child welfare;
(C) [(B)] award financial incentives to the
contractor for exceeding applicable [any specified] performance
outcomes as determined by services implemented at the time of the
review; and
(D) if deficiencies in the provision of services
are identified, impose a corrective action plan to address the
deficiencies that:
(i) includes a timeline for addressing the
deficiencies; and
(ii) provides for escalating interventions
if deficiencies are not addressed;
(7) allow the department to implement formal measures
to ensure the contractor is delivering high-quality service,
including quality improvement plans, financial interventions, and
other appropriate interventions or restrictions;
(8) require the adoption of a capitated funding
methodology for the provision of all services not later than the
third anniversary of the date the contract is executed;
(9) for a catchment area in which a contractor has not
implemented services before September 1, 2023, if family
preservation services are included in the initial service
implementation, require:
(A) an external review to ensure the contractor
has adequate systems and processes in place to effectively provide
family preservation services;
(B) the establishment of performance outcomes
specific to family preservation services; and
(C) the achievement of the performance outcomes
as a condition of continued provision or expansion of family
preservation services;
(10) [(7)] require the contractor to give preference
for employment to employees of the department:
(A) whose position at the department is impacted
by the implementation of community-based care; and
(B) who are considered by the department to be
employees in good standing;
(11) [(8)] require the contractor to implement
[provide] preliminary and ongoing community engagement plans to
ensure communication and collaboration with local stakeholders in
the catchment area that include the establishment of a community
advisory committee that:
(A) meets at least quarterly;
(B) maintains, as the majority of the committee's
membership, members not employed by or contracted with the
contractor; and
(C) includes representatives from[, including]
any of the following:
(i) [(A)] community faith-based
organizations [entities];
(ii) [(B)] the judiciary;
(iii) [(C)] court-appointed special
advocates;
(iv) [(D)] child advocacy centers;
(v) [(E)] service providers;
(vi) [(F)] foster families;
(vii) [(G)] biological parents;
(viii) [(H)] foster youth and former foster
youth;
(ix) [(I)] relative or kinship caregivers;
(x) [(J)] child welfare boards, if
applicable;
(xi) [(K)] attorneys ad litem;
(xii) [(L)] attorneys that represent
parents involved in suits filed by the department; and
(xiii) [(M)] any other stakeholders, as
determined by the contractor;
(12) require the department to include findings and
recommendations from the advisory committee established under
Subdivision (11) in:
(A) the annual performance review under
Subdivision (5);
(B) any corrective action plan under Subdivision
(6)(D); and
(C) any other applicable quality improvement
measures; and
(13) [(9)] require that the contractor comply with any
applicable court order issued by a court of competent jurisdiction
in the case of a child for whom the contractor has assumed case
management responsibilities or an order imposing a requirement on
the department that relates to functions assumed by the contractor.
(a-1) A contract with a single source continuum contractor
to provide community-based care services in a catchment area may
include provisions that require the contractor to develop a program
to recruit and retain foster parents from faith-based
organizations, including requirements for the contractor to:
(1) collaborate with faith-based organizations to
inform prospective foster parents about:
(A) the need for foster parents in the community;
(B) the requirements for becoming a foster
parent; and
(C) any other aspect of the foster care program
that is necessary to recruit foster parents;
(2) provide training for prospective foster parents;
and
(3) identify and recommend ways in which faith-based
organizations may support persons as they are recruited, are
trained, and serve as foster parents.
SECTION 13. Section 264.156(a), Family Code, is amended to
read as follows:
(a) The department shall develop a formal review process to
assess the ability of a single source continuum contractor to
satisfy the responsibilities and administrative requirements of
delivering foster care services and services for relative and
kinship caregivers, including the contractor's ability to provide:
(1) family preservation services;
(2) case management services for children and
families;
(3) [(2)] evidence-based, promising practice, or
evidence-informed supports for children and families; and
(4) [(3)] sufficient available capacity for inpatient
and outpatient services and supports for children at all service
levels who have previously been placed in the catchment area.
SECTION 14. Sections 264.158(a) and (b), Family Code, are
amended to read as follows:
(a) In each initial catchment area where community-based
care has been implemented or a contract with a single source
continuum contractor has been executed before September 1, 2017,
the department shall transfer to the single source continuum
contractor providing foster care services in that area:
(1) family preservation services;
(2) the case management of children, relative and
kinship caregivers, and families receiving services from that
contractor; and
(3) [(2)] family reunification support services to be
provided after a child receiving services from the contractor is
returned to the child's family for the period of time ordered by the
court.
(b) The commission shall include a provision in a contract
with a single source continuum contractor to provide foster care
services and services for relative and kinship caregivers in a
catchment area to which community-based care is expanded after
September 1, 2017, that requires the transfer to the contractor of
the provision of:
(1) family preservation services;
(2) the case management services for children,
relative and kinship caregivers, and families in the catchment area
where the contractor will be operating; and
(3) [(2)] family reunification support services to be
provided after a child receiving services from the contractor is
returned to the child's family.
SECTION 15. Section 264.162, Family Code, is amended to
read as follows:
Sec. 264.162. REVIEW OF CONTRACTOR PERFORMANCE. The
department shall develop a formal review process that includes a
monitoring schedule to evaluate a single source continuum
contractor's implementation of placement services and case
management services in a catchment area. The department shall post
the monitoring schedule on the department's Internet website.
SECTION 16. The heading to Section 264.2031, Family Code,
is amended to read as follows:
Sec. 264.2031. SELECTION OF SERVICE PROVIDER;
REIMBURSEMENT.
SECTION 17. Section 264.2031(b), Family Code, is amended to
read as follows:
(b) A [parent,] managing conservator, guardian, or other
member of a household who is not a parent and who obtains services
from a provider selected by the person is responsible for the cost
of those services.
SECTION 18. Section 40.0583, Human Resources Code, is
amended to read as follows:
Sec. 40.0583. STATE AUDITOR REVIEW OF CONTRACTS. The state
auditor shall biennially [annually] review the department's
performance-based contracts to determine whether the department is
properly enforcing contract provisions with providers and to
provide recommendations for improving department oversight and
execution of contracts.
SECTION 19. Sections 264.113(a), (b), and (c), Family Code,
are repealed.
SECTION 20. (a) Section 263.0022, Family Code, as added by
this Act, applies to a placement review hearing of a child
regardless of the date on which the Department of Family and
Protective Services is named the child's managing conservator.
(b) Sections 264.152, 264.155, 264.156(a), and 264.158(a)
and (b), Family Code, as amended by this Act, apply only to a
contract with a single source continuum contractor entered into or
amended on or after the effective date of this Act. A contract with
a single source continuum contractor entered into before the
effective date of this Act and not amended after that date is
governed by the law in effect on the date the contract was entered
into or amended, and the former law is continued in effect for that
purpose.
SECTION 21. This Act takes effect September 1, 2025.
* * * * *