Relating to a rural community-based care pilot program.

89(R) SB 513 - Enrolled version - Bill Text

S.B. No. 513

AN ACT

relating to a rural community-based care pilot program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 264, Family Code, is amended by adding

Subchapter B-2 to read as follows:

SUBCHAPTER B-2.

RURAL COMMUNITY-BASED CARE PILOT PROGRAM

Sec. 264.181. DEFINITIONS. In this subchapter:

(1)

"Catchment area" has the meaning assigned by

Section 264.152.

(2)

"Community-based care" means the provision of

child welfare services in accordance with state and federal child

welfare goals by a community-based nonprofit or local governmental

entity under the pilot program.

(3)

"Eligible rural region" means a catchment area for

which the department requested but did not receive bids, proposals,

or other applicable expressions of interest to implement

community-based care under Subchapter B-1 in which at least

two-thirds of the counties comprising the area have a population of

50,000 or less.

(4)

"Pilot program" means a rural community-based care

pilot program implemented under this subchapter.

Sec.

264.182.

IMPLEMENTATION OF PILOT PROGRAM. The

department, in partnership with a lead entity selected under

Section 264.183, shall develop and implement a rural

community-based care pilot program in an eligible rural region to:

(1)

implement a community-based model of child welfare

services and increase community engagement in the child welfare

system;

(2)

improve outcomes for children and families by

expanding the availability of child welfare services and promoting

innovation in the delivery of child welfare services to children

and families; and

(3)

develop a sustainable, replicable model for the

provision of child welfare services in rural areas.

Sec.

264.183.

QUALIFICATIONS OF LEAD ENTITY; SELECTION;

PROCUREMENT.

(a)

To enter into a contract with the department to

serve as a lead entity to provide services under this subchapter, an

entity must be:

(1)

a nonprofit entity that has a board of directors

composed entirely of residents of the catchment area; or

(2) a local government entity.

(b)

In selecting a lead entity, the department shall

consider whether a prospective contractor has:

(1) strong community support and partnerships;

(2)

demonstrated experience leading collaborative

initiatives in the region; and

(3)

the capacity to coordinate with local community

organizations to serve children and families.

(c)

The department shall request local stakeholders in an

eligible rural region to provide any necessary information about

the region that will assist the department in:

(1)

preparing the department's request for bids,

proposals, or other applicable expressions of interest to provide

community-based care in the eligible rural region; and

(2)

selecting a lead entity to provide community-based

care in the eligible rural region.

(d)

The department's request for bids, proposals, or other

applicable expressions of interest to provide community-based care

in the eligible rural region may include, in a single request,

services to develop the pilot program model and implement the pilot

program.

(e)

Notwithstanding any other law and to address the unique

challenges of providing community-based care to rural areas of this

state in an efficient manner the department may:

(1)

procure, as a single procurement, services to

develop a pilot program model under Section 264.184(a) and

implement the pilot program under Section 264.184(b); and

(2)

separately procure the services of the independent

evaluator under Section 264.194.

Sec.

264.184.

PILOT PROGRAM MODEL AND IMPLEMENTATION

SCHEDULE; AUTHORITY.

(a)

The department, in partnership with the

lead entity, shall develop a pilot program model that includes a

timeline, with identified funding, for implementing

community-based care in the eligible rural region and that

addresses:

(1) the following services for families and children:

(A)

family-based services to ensure child safety

and prevent entry into foster care;

(B)

family preservation services, as defined by

Section 262.401;

(C) case management;

(D) foster care and kinship care services;

(E) adoption and post-adoption services;

(F)

transition services for youth aging out of

foster care; and

(G)

any additional services necessary to meet the

needs of children and families in the region;

(2)

the development of and coordination with a diverse

network of service providers, including faith-based organizations,

local mental health authorities, and others to ensure comprehensive

service delivery;

(3)

the development and implementation of innovative

approaches to improve outcomes for children and families;

(4)

any identified geographic disparities in service

availability and access in the region's child welfare system;

(5)

the creation and oversight of a quality assurance

system; and

(6)

the implementation of a system to manage financial

risks and resources, including state and federal funds.

(b)

To implement the pilot program model developed under

Subsection (a), a lead entity may:

(1)

develop and implement policies and procedures

regarding the provision of community-based care within the scope of

applicable law and consistent with department policies and

procedures, unless waived under Section 264.189;

(2)

allocate resources as needed to meet community

needs; and

(3)

enter into contracts with service providers,

including contracts for case management services.

Sec.

264.185.

COMMUNITY ALLIANCE. (a)

The department and

lead entity shall establish a community alliance or similar group

of stakeholders to provide a forum for community participation and

governance of community-based care under the pilot program. The

department and lead entity shall collaborate with:

(1)

local families with lived experience in the child

welfare system;

(2)

local representatives from sectors related to the

child welfare system, including the judiciary, education, and

health care; and

(3) other community stakeholders.

(b)

The duties of the community alliance or similar group of

stakeholders described by Subsection (a) shall include:

(1)

joint planning with the department and lead entity

regarding resource utilization in the community, including

resources appropriated to the department and any funds provided by

local funding sources for that purpose;

(2)

conducting needs assessments and establishing of

community priorities for service delivery;

(3)

determining community outcome goals to supplement

state-required outcomes;

(4)

serving as a catalyst for community resource

development, including:

(A)

identifying existing programs, services, and

assistance available from community- and faith-based

organizations;

(B)

encouraging the development and increased

availability of programs, services, and assistance available from

community- and faith-based organizations; and

(C)

informing the department and the lead entity

of programs, services, and assistance available from community- and

faith-based organizations and working to facilitate the lead

entity's use of the available resources;

(5)

providing for community education and advocacy

regarding issues related to delivery of services; and

(6) promoting family preservation services.

Sec.

264.186.

DEVELOPMENT OF FUNDING AND RESOURCES. (a)

The department shall seek input from the lead entity regarding the

feasibility of a capitated funding model for the provision of

services under the pilot program.

If the department determines

that a capitated funding model is feasible, the department shall

develop a capitated funding model that provides a fixed rate of

funding per child receiving services under the pilot program.

(b) Regardless of whether the department implements a

capitated funding model under Subsection (a), the department

shall ensure that the funding model for the pilot program:

(1)

accounts for the additional costs of providing

services to geographically dispersed populations in rural areas,

including:

(A) increased transportation costs;

(B)

challenges in achieving economies of scale in

the provision of services;

(C)

increased costs for recruiting and retaining

qualified staff in rural areas; and

(D)

costs related to building and maintaining

service provider networks in rural areas;

(2) includes financial risk-sharing mechanisms;

(3) incentivizes desired outcomes and cost savings;

(4) supports innovation;

(5)

allows for the reinvestment of cost savings into

the program; and

(6)

allows the lead entity to flexibly allocate funds

within the scope of applicable law.

(c)

The department shall pursue leveraging various funding

sources, including state and federal funds, to implement and

sustain the pilot program.

Sec.

264.187.

DATA MANAGEMENT AND INFORMATION SHARING. (a)

The department shall determine the feasibility of implementing an

integrated electronic case management system for community-based

care provided under the pilot program that:

(1) allows for real-time case management;

(2)

facilitates coordination among service providers;

and

(3) supports outcome tracking and reporting.

(b)

Regardless of whether the department implements an

integrated electronic case management system, the department

shall:

(1)

provide to the lead entity technical support and

access to data as necessary to facilitate implementation of a data

management system for effective case management and service

coordination;

(2)

ensure secure and efficient information sharing

with stakeholders; and

(3)

support outcome tracking and reporting through

existing or modified systems.

(c)

The department shall establish protocols related to any

data management and information-sharing systems used for the pilot

program to ensure:

(1) privacy and security of data; and

(2) the efficient sharing of information.

Sec.

264.188.

WORKFORCE DEVELOPMENT.

The department, in

collaboration with the lead entity, shall incorporate into the

pilot program a workforce development plan that includes:

(1)

strategies that address rural workforce

challenges, including strategies for recruiting and retaining

child welfare professionals;

(2)

training programs aligned with best practices in

child welfare; and

(3) career advancement opportunities.

Sec.

264.189.

WAIVERS.

To implement the pilot program, the

lead entity may apply to the commissioner of the department for a

waiver from any department policy or procedure that governs the

provision of child welfare services.

The commissioner shall adopt

a procedure for the application for a waiver described by this

section.

Sec.

264.190.

CONFLICT RESOLUTION PROCESS. The department

and lead entity shall establish a formal process for resolving

conflicts or disputes that arise related to the pilot program.

Sec.

264.191.

CHANGE ORDER PROCESS. (a)

The department

shall request any change to the contracted scope of work of the lead

entity related to the pilot program in writing.

The request must

include:

(1)

a detailed explanation of the proposed change and

reasons for the proposed change; and

(2)

a comprehensive cost analysis for implementing the

proposed change that includes:

(A)

the source of funding for the proposed

change; or

(B)

if funding sufficient to implement the change

is not available, an explanation of how existing requirements will

be modified for the cost of the proposed change to fit into the

existing budget.

(b)

A change request under this section is subject to

negotiation between the lead entity and the department.

The lead

entity may reject any proposed change that is not adequately funded

or substantially alters the provision of community-based care under

the contract executed between the department and the entity, unless

the change is required by federal or state law or court order or is

necessary to ensure child health or safety. In the event of a

dispute between the department and the entity regarding a proposed

change or the funding for the change, the department and lead entity

shall follow the conflict resolution process described by Section

264.190.

(c)

This section may not be construed to limit or restrict

the authority of the department to include necessary oversight

measures and review processes in a contract under this subchapter

to maintain compliance with federal and state requirements. The

department retains responsibility for the quality of contracted

services and programs and shall ensure that, at a minimum, services

are delivered in accordance with applicable state and federal law.

(d)

A lead entity and its subcontractors must comply with

each applicable court order:

(1)

issued in a suit regarding a child for whom the

lead entity or its subcontractors have assumed case management

responsibilities; or

(2)

imposing a requirement on the department that

relates to contracted functions assumed by the lead entity or its

subcontractors.

Sec.

264.192.

CONFIDENTIALITY. Subchapter C, Chapter 261,

of this code and Chapter 552, Government Code, apply to the records

of a lead entity or its subcontractors that relate to the provision

of community-based care under the pilot program in the same manner

as the records of the department.

Sec.

264.193.

PRIVILEGED COMMUNICATION. The lead entity

and its employees, agents, and representatives are client's

representatives of the department for purposes of the

attorney-client privilege under Rule 503, Texas Rules of Evidence,

as that privilege applies to communications with a prosecuting

attorney or other attorney representing the department or that

attorney's representative in a proceeding under this subtitle.

Sec.

264.194.

POST-IMPLEMENTATION INDEPENDENT EVALUATION.

(a) The department shall contract with an independent evaluator

with expertise in child welfare and the delivery of child welfare

services in rural areas to conduct a comprehensive evaluation of

the pilot program. The department shall consult with the lead

entity and the entities described by Section 264.185(a) when

selecting the independent evaluator.

(b) The independent evaluator shall assess:

(1)

the outcomes for children and families receiving

services under the program;

(2) the cost-effectiveness of the program;

(3)

the effectiveness of the community-based care

approach to providing child welfare services in rural areas;

(4)

community engagement and satisfaction with the

program;

(5) program implementation fidelity; and

(6)

any systemic changes made in provision of child

welfare services in the region under the program.

(c)

The department and the lead entity shall cooperate with

the evaluation process and provide the independent evaluator all

necessary data and information to conduct the evaluation required

by this section.

(d)

The department, lead entity, and entities described by

Section 264.185(a) shall review the independent evaluator's

findings under Subsection (b) and develop an action plan to address

any areas for improvement identified by the independent evaluator.

Sec.

264.195.

PROGRAM DEVELOPMENT REPORT. Not later than

January 1, 2027, the department shall submit a report to the

legislature regarding the pilot program model developed under this

subchapter. The department shall implement the pilot program only

if the pilot program is sufficiently funded.

Sec.

264.196.

ANNUAL IMPLEMENTATION REPORT. Not later than

December 1, 2028, and annually thereafter, the department shall

submit a report to the legislature relating to the implementation

of the pilot program that includes:

(1)

the findings of the independent evaluator under

Section 264.194, if applicable, including any recommendations from

the independent evaluator for improving and expanding the pilot

program;

(2)

information about each denied waiver under Section

264.189, including the reason for denial; and

(3)

a detailed account of each agreed-upon change

order under Section 264.191 that includes an explanation of:

(A) the change and the reason for the change; and

(B)

the cost of funding the change and how the

cost was addressed.

Sec.

264.197.

RULEMAKING. The department may adopt rules

necessary to implement this subchapter.

Sec.

264.198.

PROGRAM REVIEW; EXPIRATION. (a) Not later

than September 1, 2031, the legislature shall review the outcomes

and effectiveness of the pilot program to determine whether to

extend, modify, or conclude the program.

(b) This subchapter expires September 1, 2031.

SECTION 2. This Act takes effect September 1, 2025.

______________________________

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 513 passed the Senate on

March 26, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 513 passed the House on

April 29, 2025, by the following vote: Yeas 145, Nays 1, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor