Amend CSSB 758 (Senate committee printing) as follows:                       
	(1)  Strike the introductory language to SECTION 7(a) of the 
bill (page 2, lines 51 through 53) and substitute "Subsections (a), 
(b), (c), (e), (f), (i), (j), and (k), Section 264.106, Family Code, 
are amended to read as follows:"
	(2)  In SECTION 7(a) of the bill, strike amended Subdivision 
(2), Subsection (a), Section 264.106, Family Code (page 3, lines 3 
through 23), and substitute the following:
		(1-a)  "Conservatorship services" means services 
provided directly by the department that the department considers 
necessary to ensure federal financial participation and compliance 
with state law requirements, including:
			(A)  initial placement of a child and approval of 
all subsequent placements of a child;
			(B)  approval of the child and family service 
plan;                 
			(C)  assisting the department in a suit affecting 
the parent-child relationship commenced by the department; and
			(D)  any other action the department considers 
necessary to ensure the safety and well-being of a child.
		(2)  "Independent administrator" means an independent 
agency selected through a competitive procurement process to:
			(A)  secure, coordinate, and manage substitute 
care services and case management services in a geographically 
designated area of the state; and
			(B)  ensure continuity of care for a child 
referred to the administrator by the department and the child's 
family from the day a child enters the child protective services 
system until the child leaves the system.
	(3)  In SECTION 7(a) of the bill, strike amended Subsection 
(b), Section 264.106, Family Code (page 3, line 53, through page 4, 
line 3), and substitute the following:
	(b)  The department shall, in accordance with Section 
45.004, Human Resources Code:
		(1)  assess the need for substitute care and case 
management services throughout the state;
		(2)  [either] contract [directly] with private 
agencies as part of regional community-centered networks for the 
provision of:
			(A)  all necessary substitute care services; and               
			(B)  case management services in at least 10 
percent of the cases in the state [or use an independent 
administrator to contract for those services];
		(3)  contract with an independent administrator, if 
cost beneficial, to:
			(A)  procure all substitute care and case 
management services in Region 8 as a demonstration project; and
			(B) coordinate and manage all services needed for 
children in the temporary or permanent managing conservatorship of 
the department in Region 8 as a demonstration project [a designated 
geographic area];
		(4)  monitor the quality of services for which the 
department and each independent administrator contract under this 
section;  and
		(5)  ensure that the services are provided in 
accordance with federal law and the laws of this state, including 
department rules and rules of the Department of State Health 
Services and the Texas Commission on Environmental Quality.
	(4)  In SECTION 7(a) of the bill, strike amended Subsection 
(c), Section 264.106, Family Code (page 4, lines 4 through 16), and 
substitute the following:
	(c)  The department shall develop a pilot program for the 
competitive procurement of case management services in one or more 
geographic areas of the state.  The department shall either 
contract directly with one or more substitute care providers to 
provide case management services under the pilot program or use an 
independent administrator to contract for those services.  The 
department shall have a goal of providing case management services 
in at least 10 percent of the cases in which the department has been 
appointed temporary or permanent managing conservator of a child 
using contract providers.  An independent administrator may not:
		(1)  directly provide substitute care services; or                            
		(2)  be governed by a board that has a member who has a 
financial interest in a substitute care or case management provider 
with whom the independent administrator subcontracts.
	(5)  In SECTION 7(a) of the bill, strike amended Subsection 
(e), Section 264.106, Family Code (page 4, lines 17 through 43), and 
substitute the following:
	(e)  In addition to the requirements of Section 40.058(b), 
Human Resources Code, a contract with a private agency or an 
independent administrator must include provisions that:
		(1)  enable the department to monitor the effectiveness 
of the services;    
		(2)  specify performance outcomes;                                            
		(3)  authorize the department to terminate the contract 
or impose sanctions for a violation of a provision of the contract 
that specifies performance criteria;
		(4)  ensure that:                                                      
			(A)  an independent administrator may not refuse 
to accept a client who is referred for services or reject a client 
who is receiving services unless the department has reviewed the 
independent administrator's decision and approved the decision in 
writing;
			(B)  a private agency that contracts under 
Subsection (b)(2)(A) may refuse to accept only a specified 
percentage of clients who are referred for services or reject only a 
specified percentage of clients who are receiving services unless 
the department has reviewed the private agency's decision and 
approved the decision in writing; and
			(C)  the standards provided by Paragraphs (A) and 
(B) apply only to children whose assessment matches the child 
profile of children the agency is equipped to care for;
		(5)  authorize the department, an agent of the 
department, and the state auditor to inspect all books, records, 
and files maintained by a private agency or an independent 
administrator relating to the contract; and
		(6)  the department determines are necessary to ensure 
accountability for the delivery of services and for the expenditure 
of public funds.
	(f)  A contract with an independent administrator for 
substitute care and case management services under Subsection 
(b)(3) [(b)(2)] must include department-approved provisions that:
		(1)  enable the independent administrator and the 
department to:            
			(A)  monitor the effectiveness of substitute care 
and case management services; and
			(B)  specify performance standards and authorize 
termination of the contract for cause;
		(2)  describe how performance is linked to 
reimbursement amounts or schedules to provide incentives for 
desired results;
		(3)  require all independent administrators and 
private contractors to disclose to the department any information 
that may indicate an actual or potential conflict of interest with 
the commission, the department, or another health and human 
services agency, including information regarding actual or 
potential related-party transactions, relationships, interests, or 
business history, and any other factor that may indicate an actual 
or potential conflict of interest;
		(4)  authorize the independent administrator, an agent 
of the independent administrator, the department, an agent of the 
department, and the state auditor to inspect all books, records, 
and files maintained by a contractor relating to the contract;  and
		(5)  the department determines are necessary to ensure 
accountability for the delivery of services and for the expenditure 
of public funds.
	(6)  In SECTION 7(a) of the bill, strike amended Subsection 
(g), Section 264.106, Family Code (page 4, lines 44 through 48).
	(7)  Add the following appropriately numbered SECTION to the 
bill and renumber the remaining SECTIONS of the bill as 
appropriate:
	SECTION ____.  Section 264.1062, Family Code, is amended to 
read as follows: 
	Sec. 264.1062.  EVALUATION OF INDEPENDENT ADMINISTRATORS.  
(a)  The department shall develop and implement a comprehensive 
multidisciplinary team to monitor and evaluate the performance of 
independent administrators.  The team must consist of specialized 
staff who can enable the department to measure critical dimensions 
of community-based organization performance, obtained through the 
quality assurance functions of the independent administrator, 
including:
		(1)  achievement of client and system outcomes;                               
		(2)  compliance with contractual terms and conditions; 
and                  
		(3)  any history of the community-based organization's 
noncompliance with the department's licensing standards.
	(b)  The department shall develop and implement a 
comprehensive multidisciplinary team to monitor and evaluate the 
performance of independent administrators.  The team must consist 
of specialized staff who can enable the department to measure 
critical dimensions of community-based organization performance, 
obtained through the quality assurance functions of the independent 
administrator, including:
		(1)  achievement of client and systems outcomes;                       
		(2)  compliance with contractual terms and conditions; 
and           
		(3)  any history of the community-based organization's 
noncompliance with the department's licensing standards.
	(8)  In SECTION 9 of the bill, strike amended Subsection (e), 
Section 264.107, Family Code (page 5, lines 50 through 56), and 
substitute the following:
	(e)  In making placement decisions, an independent 
administrator or other authorized entity shall:
		(1)  consult with the child's caseworker and the 
child's guardian ad litem or court-appointed volunteer advocate 
when possible; and
		(2)  use clinical protocols to match a child to the most 
appropriate placement resource.
	(9)  In SECTION 28 of the bill, in amended Section 45.002, 
Human Resources Code (page 11, between lines 35 and 36), insert the 
following:
	(a-1)  On or after September 1, 2008, all substitute care and 
case management services in Region 8, the demonstration region, 
must be provided by contract providers.
	(10)  In SECTION 29 of the bill, in amended Section 45.004, 
Human Resources Code (page 12, lines 6 and 7), strike the heading to 
that amended section and substitute "INDEPENDENT ADMINISTRATORS 
AND[;] DEPARTMENT DUTIES.".

	(11)  In SECTION 29 of the bill, in amended Section 45.004, 
Human Resources Code (page 12, line 7), strike "[(a)  The" and 
substitute "(a) [The".
	(12)  In SECTION 29 of the bill, in amended Section 45.004, 
Human Resources Code (page 12, between lines 47 and 48), insert the 
following:
	(b)  An independent administrator must organize and convene 
an executive committee composed of the chief executive officer of 
each participating nonprofit substitute care and case management 
provider in Region 8 to:
		(1)  provide a quarterly update on program and 
financial outcomes; and
		(2)  allow provider input to recommendations that 
enhance policies and procedures used in the pilot project area.
	(13)   In SECTION 31 of the bill, in amended Subsection (d), 
Section 45.054, Human Resources Code (page 13, line 10), after the 
period, insert "The House Human Services Committee, or its 
successor, and the Senate Health and Human Services Committee, or 
its successor, shall review the results of the pilot program."