Texas 2025 89th Regular

Texas Senate Bill SB513 Analysis / Analysis

Filed 03/20/2025

                    BILL ANALYSIS        Senate Research Center   C.S.S.B. 513     89R18939 AMF-F   By: Sparks         Health & Human Services         3/19/2025         Committee Report (Substituted)          AUTHOR'S / SPONSOR'S STATEMENT OF INTENT   This legislation seeks to institute an innovative, community-driven model for child welfare services in rural Texas where previous attempts to implement community-based care (CBC) have seen failure.   On December 31, 2020, the Department of Family and Protective Services (DFPS) announced that Region 9which includes Midland, Odessa, and San Angelowould begin the transition of the first in a four-part series to CBC. However, Region 9 would go on to receive zero CBC contractor bids during the designated timeline. In May 2023, the Texas Tribune reported Dr. Brandon Logan of One Accord for Kids (Midland, TX) stating in response forgoing application despite their organizations' original intent, "We were being asked to do things pretty much the way that they had been done," Logan said. "My observation of community-based care, even to this point, is that the department is really just privatizing and franchising itself. The system is not being transformed." In 2024, DFPS issued a Request for Information to better understand the resource gaps and infrastructure challenges that may be hindering interest from potential Single Source Continuum Contractors (SSCCs) in those rural areas. Respondents provided input regarding potential changes to the current CBC model that could improve operational viability in Regions 9 and 10.  Data and Research:  In September 2024, DFPS Rider 15 Report released data demonstrating overall declining statewide performance in the following areas: Percentage of Children Safe in Paid Foster Care; Percentage of Children Placed within 50 Miles of Removal Location; and Percent of Youth Age 16 or Older who have a Driver's License or State Identification Card. Additionally, the report shows the legacy system (Statewide Non-CBC) outperformed three rural SSCCs (Panhandle, Big Country & Texoma, South Central & Hill Country) in the following areas: Paid Foster Care Placements per Child/Youth; Percentage of Placement Days in a Home Setting; and Percentage of Siblings in Paid Foster Care Placed Together. Furthermore, Texas currently is in active contract with seven SSCCs, four of which consist of organizations not from Texas (Pressley RidgeRegion 5, St. FrancisRegion 1, The Family InitiativeRegion 2 and 3E), resulting in more than half of the state's current contracts from out-of-state vendors.  Key Provisions:  C.S.S.B. 513 amends the Family Code by developing and implementing a short-term CBC pilot project for rural catchment areas. By utilizing a distributed network model, a local lead agency can function as a managing entity, subcontracting with local providers to deliver a full continuum of services through a phased development and procurement process. Additionally, the bill innovates the current CBC model by employing a community alliance, and examines the feasibility of a capitated funding model and integrated data management system and other operational solutions to address service issues and challenges.  1 DFPS Region 9 RFA Announcement: https://content.govdelivery.com/accounts/TXDFPS/bulletins/315b5f7  2 Texas CASA: Region 9 Receives Zero Bids:  https://texascasa.org/2023/02/10/dfps-announces-implementation-plan-for-4-new-catchment-areas-stage-iii-transitions/  3 Texas Tribune Article:  https://www.texastribune.org/2023/05/31/texas-department-family-protective-services-foster-care/  4 DFPS Rider 15 Report: https://www.dfps.texas.gov/About_DFPS/Reports_and_Presentations/Rider_Reports/documents/2024/2024-09-30_Rider_15.pdf  5 DFPS Active Contract Entities:  https://www.dfps.texas.gov/CBC/community-areas/  6 89(R) SB 513 Information:  https://tlis/BillLookup/History.aspx?LegSess=89R&Bill=SB513   C.S.S.B. 513 amends current law relating to a community-based care pilot program.   RULEMAKING AUTHORITY   Rulemaking authority is expressly granted to the Department of Family and Protective Services in SECTION 1 (Section 264.197, Family Code) of this bill.    SECTION BY SECTION ANALYSIS   SECTION 1. Amends Chapter 264, Family Code, by adding Subchapter B-2, as follows:   SUBCHAPTER B-2. RURAL COMMUNITY-BASED CARE PILOT PROGRAM   Sec. 264.181. DEFINITIONS. Defines "catchment area," "community-based care," "eligible rural region," and "pilot program."   Sec. 264.182. IMPLEMENTATION OF PILOT PROGRAM. Requires the Department of Family and Protective Services (DFPS), in partnership with a lead entity selected under Section 264.183, to develop and implement a rural community-based care pilot program (pilot program) in an eligible rural region to:   (1) implement a community-based model of child welfare services and increase community engagement in the child welfare system;   (2) improve outcomes for children and families by expanding the availability of child welfare services and promoting innovation in the delivery of child welfare services to children and families; and   (3) develop a sustainable, replicable model for the provision of child welfare services in rural areas.   Sec. 264.183. QUALIFICATIONS OF LEAD ENTITY; SELECTION; PROCUREMENT. (a) Requires an entity, to enter into a contract with DFPS to serve as a lead entity to provide services under this subchapter, to be a nonprofit entity that has a board of directors composed entirely of residents of the catchment area or a local government entity.   (b) Requires DFPS, in selecting a lead entity, to 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.   (c) Requires DFPS to request local stakeholders in an eligible rural region to provide any necessary information about the region that will assist DFPS in preparing DFPS's request for bids, proposals, or other applicable expressions of interest to provide community-based care in the eligible rural region and selecting a lead entity to provide community-based care in the eligible rural region.   (d) 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.    (e) Authorizes DFPS, notwithstanding any other law and to address the unique challenges of providing community-based care to rural areas of this state in an efficient manner, to procure, as a single procurement, services to develop a pilot program model under Section 264.184(a) and implement the pilot program under Section 264.184(b) and separately procure the services of the independent evaluator under Section 264.194.    Sec. 264.184. PILOT PROGRAM MODEL AND IMPLEMENTATION; AUTHORITY. (a) 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 that addresses:   (1) certain services for families and children;   (2) the development of and coordination with a diverse network of service providers, including faith-based organizations, local mental health authorities, and others to ensure comprehensive service delivery;   (3) the development and implementation of innovative approaches to improve outcomes for children and families;   (4) any identified geographic disparities in service availability and access in the region's child welfare system;   (5) the creation and oversight of a quality assurance system; and   (6) the implementation of a system to manage financial risks and resources, including state and federal funds.   (b) Authorizes a lead entity, to implement the program model developed under Subsection (a), to 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 under Section 264.189, to allocate resources as needed to meet community needs, and enter into contracts with service providers, including contracts for case management services.   Sec. 264.185. COMMUNITY ALLIANCE. (a) 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. Requires DFPS and the lead entity to collaborate with 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.   (b) Requires that the duties of the community alliance or similar group of stakeholders described by Subsection (a) include certain responsibilities.   Sec. 264.186. DEVELOPMENT OF FUNDING AND RESOURCES. (a) Requires DFPS to seek input from the lead entity regarding the feasibility of a capitated funding model for the provision of services under the pilot program. Requires DFPS, if DFPS determines that a capitated funding model is feasible, to develop a capitated funding model that provides a fixed rate of funding per child receiving services under the pilot program.    (b) Requires DFPS, regardless of whether DFPS implements a capitated funding model under Subsection (a), to ensure that the funding model for the pilot program:   (1) accounts for the additional costs of providing services to geographically dispersed populations in rural areas, including 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;   (2) includes financial risk-sharing mechanisms;   (3) incentivizes desired outcomes and cost savings;   (4) supports innovation;   (5) allows for the reinvestment of cost savings into the program; and   (6) allows the lead agency to flexibly allocate funds within the scope of applicable law.   (c) Requires DFPS to pursue leveraging various funding sources, including state and federal funds, to implement and sustain the pilot program.    Sec. 264.187. DATA MANAGEMENT AND INFORMATION SHARING. (a) 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.    (b) Requires DFPS, regardless of whether DFPS implements an integrated electronic case management system, to 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.    (c) Requires DFPS to establish protocols related to any data management and information-sharing systems used for the pilot program to ensure privacy and security of data, and the efficient sharing of information.    Sec. 264.188. WORKFORCE DEVELOPMENT. Requires DFPS, in collaboration with the lead entity, to incorporate into the pilot program a workforce development plan that includes strategies that address rural workforce challenges, including strategies for recruiting and retaining child welfare professionals; training programs aligned with best practices in child welfare; and career advancement opportunities.   Sec. 264.189. WAIVERS. Authorizes the lead entity, to implement the pilot program, to apply to the commissioner of DFPS (commissioner) for a waiver from any DFPS policy or procedure that governs the provision of child welfare services. Requires the commissioner to adopt a procedure for the application for a waiver described by this section.    Sec. 264.190. CONFLICT RESOLUTION PROCESS. Requires DFPS and the lead entity to establish a formal process for resolving conflicts or disputes that arise related to the pilot program.    Sec. 264.191. CHANGE ORDER PROCESS. (a) Requires DFPS to request any change to the contracted scope of work of the lead entity related to the pilot program in writing. Requires that the request include certain information.    (b) Provides that a change request under this section is subject to negotiation between the lead entity and DFPS. 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. Requires DFPS and the lead entity, in the event of a dispute between DFPS and the entity regarding a proposed change or the funding for the change, to follow the conflict resolution process described by Section 264.190.    (c) Prohibits this section from being construed to limit or restrict the authority of DFPS to include necessary oversight measures and review processes in a contract under this subchapter to maintain compliance with federal and state requirements. Provides that DFPS retains responsibility for the quality of contracted services and programs, and is required to ensure that, at a minimum, services are delivered in accordance with applicable state and federal law.    (d) Requires a lead entity and its subcontractors to comply with each applicable court order issued in a suit regarding a child for whom the lead entity or its subcontractors have assumed case management responsibilities, or imposing a requirement on DFPS that relates to contracted functions assumed by the lead entity or its subcontractors.    Sec. 264.192. CONFIDENTIALITY. Provides that Subchapter C (Confidentiality and Privileged Communication), Chapter 261 (Investigation of Report of Child Abuse or Neglect), of the Family Code and Chapter 552 (Public Information), Government Code, apply to the records of a lead entity or its subcontractors that relate to the provision of community-based care under the pilot program in the same manner as the records of DFPS.   Sec. 264.193. PRIVILEGED COMMUNICATION. Provides that the lead entity and its employees, agents, and representatives are client's representatives of DFPS for purposes of the attorney-client privilege under Rule 503, Texas Rules of Evidence, as that privilege applies to communications with a prosecuting attorney or other attorney representing DFPS or that attorney's representative in a proceeding under Subtitle E (Protection of the Child).    Sec. 264.194. POST-IMPLEMENTATION INDEPENDENT EVALUATION. (a) 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. Requires DFPS to consult with the lead entity and the entities described by Section 264.185(a) when selecting the independent evaluator.   (b) Requires the independent evaluator to assess certain data and information.   (c) Requires DFPS and the lead agency to cooperate with the evaluation process and provide the independent evaluator all necessary data and information to conduct the evaluation required by this section.   (d) Requires DFPS, the lead entity, and entities described by Section 264.185(a) to review the independent evaluator's findings under Subsection (b) and develop an action plan to address any areas for improvement identified by the independent evaluator.   Sec. 264.195. PROGRAM DEVELOPMENT REPORT. Requires DFPS, not later than January 1, 2027, to submit a report to the legislature regarding the pilot program model developed under this subchapter. Requires DFPS to implement the pilot program only if the pilot program is sufficiently funded.    Sec. 264.196. ANNUAL IMPLEMENTATION REPORT. 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:   (1) the findings of the independent evaluator under Section 264.189, including any recommendations from the independent evaluator for improving and expanding the pilot program;   (2) information about each denied waiver under Section 264.190, including the reason for denial; and   (3) a detailed account of each agreed-upon change order under Section 264.192 that includes an explanation of the change and the reason for the change and the cost of funding the change and how the cost was addressed.   Sec. 264.197. RULEMAKING. Authorizes DFPS to adopt rules necessary to implement this subchapter.    Sec. 264.198. PROGRAM REVIEW; EXPIRATION. (a) 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.   (b) Provides that this subchapter expires September 1, 2031.   SECTION 2. Effective date: September 1, 2025.   

BILL ANALYSIS

 

 

Senate Research Center C.S.S.B. 513
89R18939 AMF-F By: Sparks
 Health & Human Services
 3/19/2025
 Committee Report (Substituted)

Senate Research Center

C.S.S.B. 513

89R18939 AMF-F

By: Sparks

 

Health & Human Services

 

3/19/2025

 

Committee Report (Substituted)

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

This legislation seeks to institute an innovative, community-driven model for child welfare services in rural Texas where previous attempts to implement community-based care (CBC) have seen failure. 

 On December 31, 2020, the Department of Family and Protective Services (DFPS) announced that Region 9which includes Midland, Odessa, and San Angelowould begin the transition of the first in a four-part series to CBC. However, Region 9 would go on to receive zero CBC contractor bids during the designated timeline. In May 2023, the Texas Tribune reported Dr. Brandon Logan of One Accord for Kids (Midland, TX) stating in response forgoing application despite their organizations' original intent, "We were being asked to do things pretty much the way that they had been done," Logan said. "My observation of community-based care, even to this point, is that the department is really just privatizing and franchising itself. The system is not being transformed." In 2024, DFPS issued a Request for Information to better understand the resource gaps and infrastructure challenges that may be hindering interest from potential Single Source Continuum Contractors (SSCCs) in those rural areas. Respondents provided input regarding potential changes to the current CBC model that could improve operational viability in Regions 9 and 10.

 Data and Research:  In September 2024, DFPS Rider 15 Report released data demonstrating overall declining statewide performance in the following areas: Percentage of Children Safe in Paid Foster Care; Percentage of Children Placed within 50 Miles of Removal Location; and Percent of Youth Age 16 or Older who have a Driver's License or State Identification Card. Additionally, the report shows the legacy system (Statewide Non-CBC) outperformed three rural SSCCs (Panhandle, Big Country & Texoma, South Central & Hill Country) in the following areas: Paid Foster Care Placements per Child/Youth; Percentage of Placement Days in a Home Setting; and Percentage of Siblings in Paid Foster Care Placed Together. Furthermore, Texas currently is in active contract with seven SSCCs, four of which consist of organizations not from Texas (Pressley RidgeRegion 5, St. FrancisRegion 1, The Family InitiativeRegion 2 and 3E), resulting in more than half of the state's current contracts from out-of-state vendors.

 Key Provisions:  C.S.S.B. 513 amends the Family Code by developing and implementing a short-term CBC pilot project for rural catchment areas. By utilizing a distributed network model, a local lead agency can function as a managing entity, subcontracting with local providers to deliver a full continuum of services through a phased development and procurement process. Additionally, the bill innovates the current CBC model by employing a community alliance, and examines the feasibility of a capitated funding model and integrated data management system and other operational solutions to address service issues and challenges.

 1 DFPS Region 9 RFA Announcement: https://content.govdelivery.com/accounts/TXDFPS/bulletins/315b5f7

 2 Texas CASA: Region 9 Receives Zero Bids: 

https://texascasa.org/2023/02/10/dfps-announces-implementation-plan-for-4-new-catchment-areas-stage-iii-transitions/

 3 Texas Tribune Article: 

https://www.texastribune.org/2023/05/31/texas-department-family-protective-services-foster-care/

 4 DFPS Rider 15 Report: https://www.dfps.texas.gov/About_DFPS/Reports_and_Presentations/Rider_Reports/documents/2024/2024-09-30_Rider_15.pdf

 5 DFPS Active Contract Entities: 

https://www.dfps.texas.gov/CBC/community-areas/

 6 89(R) SB 513 Information: 

https://tlis/BillLookup/History.aspx?LegSess=89R&Bill=SB513

 

C.S.S.B. 513 amends current law relating to a community-based care pilot program.

 

RULEMAKING AUTHORITY

 

Rulemaking authority is expressly granted to the Department of Family and Protective Services in SECTION 1 (Section 264.197, Family Code) of this bill. 

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Chapter 264, Family Code, by adding Subchapter B-2, as follows:

 

SUBCHAPTER B-2. RURAL COMMUNITY-BASED CARE PILOT PROGRAM

 

Sec. 264.181. DEFINITIONS. Defines "catchment area," "community-based care," "eligible rural region," and "pilot program."

 

Sec. 264.182. IMPLEMENTATION OF PILOT PROGRAM. Requires the Department of Family and Protective Services (DFPS), in partnership with a lead entity selected under Section 264.183, to develop and implement a rural community-based care pilot program (pilot program) in an eligible rural region to:

 

(1) implement a community-based model of child welfare services and increase community engagement in the child welfare system;

 

(2) improve outcomes for children and families by expanding the availability of child welfare services and promoting innovation in the delivery of child welfare services to children and families; and

 

(3) develop a sustainable, replicable model for the provision of child welfare services in rural areas.

 

Sec. 264.183. QUALIFICATIONS OF LEAD ENTITY; SELECTION; PROCUREMENT. (a) Requires an entity, to enter into a contract with DFPS to serve as a lead entity to provide services under this subchapter, to be a nonprofit entity that has a board of directors composed entirely of residents of the catchment area or a local government entity.

 

(b) Requires DFPS, in selecting a lead entity, to 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.

 

(c) Requires DFPS to request local stakeholders in an eligible rural region to provide any necessary information about the region that will assist DFPS in preparing DFPS's request for bids, proposals, or other applicable expressions of interest to provide community-based care in the eligible rural region and selecting a lead entity to provide community-based care in the eligible rural region.

 

(d) 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. 

 

(e) Authorizes DFPS, notwithstanding any other law and to address the unique challenges of providing community-based care to rural areas of this state in an efficient manner, to procure, as a single procurement, services to develop a pilot program model under Section 264.184(a) and implement the pilot program under Section 264.184(b) and separately procure the services of the independent evaluator under Section 264.194. 

 

Sec. 264.184. PILOT PROGRAM MODEL AND IMPLEMENTATION; AUTHORITY. (a) 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 that addresses:

 

(1) certain services for families and children;

 

(2) the development of and coordination with a diverse network of service providers, including faith-based organizations, local mental health authorities, and others to ensure comprehensive service delivery;

 

(3) the development and implementation of innovative approaches to improve outcomes for children and families;

 

(4) any identified geographic disparities in service availability and access in the region's child welfare system;

 

(5) the creation and oversight of a quality assurance system; and

 

(6) the implementation of a system to manage financial risks and resources, including state and federal funds.

 

(b) Authorizes a lead entity, to implement the program model developed under Subsection (a), to 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 under Section 264.189, to allocate resources as needed to meet community needs, and enter into contracts with service providers, including contracts for case management services.

 

Sec. 264.185. COMMUNITY ALLIANCE. (a) 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. Requires DFPS and the lead entity to collaborate with 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.

 

(b) Requires that the duties of the community alliance or similar group of stakeholders described by Subsection (a) include certain responsibilities.

 

Sec. 264.186. DEVELOPMENT OF FUNDING AND RESOURCES. (a) Requires DFPS to seek input from the lead entity regarding the feasibility of a capitated funding model for the provision of services under the pilot program. Requires DFPS, if DFPS determines that a capitated funding model is feasible, to develop a capitated funding model that provides a fixed rate of funding per child receiving services under the pilot program. 

 

(b) Requires DFPS, regardless of whether DFPS implements a capitated funding model under Subsection (a), to ensure that the funding model for the pilot program:

 

(1) accounts for the additional costs of providing services to geographically dispersed populations in rural areas, including 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;

 

(2) includes financial risk-sharing mechanisms;

 

(3) incentivizes desired outcomes and cost savings;

 

(4) supports innovation;

 

(5) allows for the reinvestment of cost savings into the program; and

 

(6) allows the lead agency to flexibly allocate funds within the scope of applicable law.

 

(c) Requires DFPS to pursue leveraging various funding sources, including state and federal funds, to implement and sustain the pilot program. 

 

Sec. 264.187. DATA MANAGEMENT AND INFORMATION SHARING. (a) 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. 

 

(b) Requires DFPS, regardless of whether DFPS implements an integrated electronic case management system, to 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. 

 

(c) Requires DFPS to establish protocols related to any data management and information-sharing systems used for the pilot program to ensure privacy and security of data, and the efficient sharing of information. 

 

Sec. 264.188. WORKFORCE DEVELOPMENT. Requires DFPS, in collaboration with the lead entity, to incorporate into the pilot program a workforce development plan that includes strategies that address rural workforce challenges, including strategies for recruiting and retaining child welfare professionals; training programs aligned with best practices in child welfare; and career advancement opportunities.

 

Sec. 264.189. WAIVERS. Authorizes the lead entity, to implement the pilot program, to apply to the commissioner of DFPS (commissioner) for a waiver from any DFPS policy or procedure that governs the provision of child welfare services. Requires the commissioner to adopt a procedure for the application for a waiver described by this section. 

 

Sec. 264.190. CONFLICT RESOLUTION PROCESS. Requires DFPS and the lead entity to establish a formal process for resolving conflicts or disputes that arise related to the pilot program. 

 

Sec. 264.191. CHANGE ORDER PROCESS. (a) Requires DFPS to request any change to the contracted scope of work of the lead entity related to the pilot program in writing. Requires that the request include certain information. 

 

(b) Provides that a change request under this section is subject to negotiation between the lead entity and DFPS. 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. Requires DFPS and the lead entity, in the event of a dispute between DFPS and the entity regarding a proposed change or the funding for the change, to follow the conflict resolution process described by Section 264.190. 

 

(c) Prohibits this section from being construed to limit or restrict the authority of DFPS to include necessary oversight measures and review processes in a contract under this subchapter to maintain compliance with federal and state requirements. Provides that DFPS retains responsibility for the quality of contracted services and programs, and is required to ensure that, at a minimum, services are delivered in accordance with applicable state and federal law. 

 

(d) Requires a lead entity and its subcontractors to comply with each applicable court order issued in a suit regarding a child for whom the lead entity or its subcontractors have assumed case management responsibilities, or imposing a requirement on DFPS that relates to contracted functions assumed by the lead entity or its subcontractors. 

 

Sec. 264.192. CONFIDENTIALITY. Provides that Subchapter C (Confidentiality and Privileged Communication), Chapter 261 (Investigation of Report of Child Abuse or Neglect), of the Family Code and Chapter 552 (Public Information), Government Code, apply to the records of a lead entity or its subcontractors that relate to the provision of community-based care under the pilot program in the same manner as the records of DFPS.

 

Sec. 264.193. PRIVILEGED COMMUNICATION. Provides that the lead entity and its employees, agents, and representatives are client's representatives of DFPS for purposes of the attorney-client privilege under Rule 503, Texas Rules of Evidence, as that privilege applies to communications with a prosecuting attorney or other attorney representing DFPS or that attorney's representative in a proceeding under Subtitle E (Protection of the Child). 

 

Sec. 264.194. POST-IMPLEMENTATION INDEPENDENT EVALUATION. (a) 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. Requires DFPS to consult with the lead entity and the entities described by Section 264.185(a) when selecting the independent evaluator.

 

(b) Requires the independent evaluator to assess certain data and information.

 

(c) Requires DFPS and the lead agency to cooperate with the evaluation process and provide the independent evaluator all necessary data and information to conduct the evaluation required by this section.

 

(d) Requires DFPS, the lead entity, and entities described by Section 264.185(a) to review the independent evaluator's findings under Subsection (b) and develop an action plan to address any areas for improvement identified by the independent evaluator.

 

Sec. 264.195. PROGRAM DEVELOPMENT REPORT. Requires DFPS, not later than January 1, 2027, to submit a report to the legislature regarding the pilot program model developed under this subchapter. Requires DFPS to implement the pilot program only if the pilot program is sufficiently funded. 

 

Sec. 264.196. ANNUAL IMPLEMENTATION REPORT. 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:

 

(1) the findings of the independent evaluator under Section 264.189, including any recommendations from the independent evaluator for improving and expanding the pilot program;

 

(2) information about each denied waiver under Section 264.190, including the reason for denial; and

 

(3) a detailed account of each agreed-upon change order under Section 264.192 that includes an explanation of the change and the reason for the change and the cost of funding the change and how the cost was addressed.

 

Sec. 264.197. RULEMAKING. Authorizes DFPS to adopt rules necessary to implement this subchapter. 

 

Sec. 264.198. PROGRAM REVIEW; EXPIRATION. (a) 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.

 

(b) Provides that this subchapter expires September 1, 2031.

 

SECTION 2. Effective date: September 1, 2025.