89R7262 AMF-F

By: Craddick H.B. No. 1536

A BILL TO BE ENTITLED

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" has the meaning assigned by Section 264.152.

(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 established under this subchapter.

Sec. 264.182. ESTABLISHMENT OF PILOT PROGRAM. The department shall establish 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. (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.

Sec. 264.184. PROGRAM MODEL AND IMPLEMENTATION SCHEDULE; AUTHORITY. (a) The lead entity shall develop a program model that includes a timeline for implementing community-based care in the eligible rural region and that:

(1) includes the following services for families and children:

(A) early intervention services to prevent entry into foster care;

(B) family preservation services, as defined by Section 262.401;

(C) case management, as defined by Section 264.152;

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

(3) develops and implements innovative approaches to improve outcomes for children and families;

(4) addresses any inequities in the region's child welfare system;

(5) establishes a quality assurance system; and

(6) establishes a system to manage financial resources, including state and federal funds.

(b) To implement the 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;

(2) allocate resources as needed to meet community needs; and

(3) enter into contracts with service providers.

Sec. 264.185. COLLABORATIVE GOVERNANCE STRUCTURE. (a) The lead entity shall establish a collaborative governance structure to provide oversight and guidance for the provision of community-based care under the pilot program. The lead entity shall collaborate with:

(1) the entity's leadership and staff;

(2) local families with lived experience in the child welfare system;

(3) local representatives from sectors related to the child welfare system, including the judiciary, education, and health care; and

(4) any other community stakeholders.

(b) The lead entity shall collaborate with the entities described by Subsection (a) to:

(1) develop program policies and procedures;

(2) identify community needs and resources;

(3) monitor program performance and outcomes; and

(4) make recommendations for continuous program improvement.

(c) The department may only provide advice to the lead agency in the implementation of the pilot program.

Sec. 264.186. FUNDING AND RESOURCES. (a) The department shall work with the lead entity to develop a capitated funding model and budget that:

(1) provides a fixed rate of funding per child receiving services under the pilot program;

(2) 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;

(3) includes financial risk-sharing mechanisms;

(4) incentivizes desired outcomes and cost savings;

(5) supports innovation;

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

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

(b) The department shall explore and leverage various funding sources, including state and federal funds, to implement and sustain the pilot program.

(c) The department may provide the lead entity with resources, including funds and personnel, to implement the pilot program.

Sec. 264.187. INTEGRATED ELECTRONIC MANAGEMENT SYSTEM. (a) The department and the lead entity shall implement an integrated electronic 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) The department shall provide to the lead entity technical support and access to data as necessary to facilitate effective implementation of the integrated electronic management system.

(c) The department and lead entity shall establish protocols related to the integrated electronic management system to ensure:

(1) privacy and security of data; and

(2) the efficient sharing of information.

Sec. 264.188. WORKFORCE DEVELOPMENT. To support the implementation of the pilot program, the lead entity, in collaboration with the department and local educational institutions, shall develop and implement 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. 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 agency 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 agency, 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. 264.190. WAIVERS. (a) The lead entity may apply to the commissioner of the department for a waiver from any statutory or regulatory requirement that governs the provision of child welfare services.

(b) The waiver request must include an explanation of why the waiver is necessary to provide the entity with flexibility or implement innovations in the provision of community-based care under the pilot program.

(c) The commissioner of the department shall grant a waiver request under this section if the commissioner determines that:

(1) the waiver:

(A) will not jeopardize the health, safety, or well-being of children and families receiving services under the program; and

(B) is likely to improve outcomes for children and families receiving services under the program; and

(2) the lead entity has a:

(A) clear plan for implementing the change that requires the waiver; and

(B) method for evaluating the effectiveness of the change being implemented under the waiver.

(d) Not later than the 30th day after the date the commissioner of the department receives a waiver request, the commissioner shall make a determination on the waiver request. If the commissioner denies a waiver request, the commissioner shall provide to the lead entity a written explanation of the reason for the denial.

Sec. 264.191. CONFLICT RESOLUTION PROCESS. (a) The department and lead entity shall establish a formal process for resolving conflicts or disputes that arise during the implementation of the pilot program. The process must prioritize collaborative problem solving and may include mediation if necessary.

(b) If a conflict or dispute cannot be resolved through the process described by Subsection (a), the department or the lead entity may request a review by an independent panel of residents of the catchment area appointed by the governor.

Sec. 264.192. CHANGE ORDER PROCESS. (a) Except as provided by this section, the department may not change any requirement or responsibility or the scope of work of the lead agency.

(b) The department may request a change in writing by providing the lead agency with:

(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.

(c) 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. 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 264.191.

(d) An agreed-upon change order must be documented in a written amendment to the contract between the department and the entity and executed by both parties.

Sec. 264.193. ANNUAL REPORT. The department shall submit an annual report to the legislature 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:

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

(B) the cost of funding the change and how the cost was addressed.

Sec. 264.194. RULEMAKING. The department may adopt rules necessary to implement this subchapter.

Sec. 264.195. PROGRAM REVIEW; EXPIRATION. (a) Not later than January 1, 2029, 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, 2029.

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