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.

89(R) SB 1398 - Enrolled version - Bill Text

S.B. No. 1398

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)

require 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.

______________________________

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 1398 passed the Senate on

April 22, 2025, by the following vote: Yeas 31, Nays 0; and that

the Senate concurred in House amendment on May 28, 2025, by the

following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1398 passed the House, with

amendment, on May 24, 2025, by the following vote: Yeas 133,

Nays 0, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor