80R6193 KKA-F

By: Naishtat H.B. No. 1361

A BILL TO BE ENTITLED

AN ACT

relating to privatization of child protective services and the improvement of services for children and families provided by the Department of Family and Protective Services.

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

SECTION 1. The heading to Section 264.106, Family Code, is amended to read as follows:

Sec. 264.106. [REQUIRED] CONTRACTS FOR SUBSTITUTE CARE AND CASE MANAGEMENT SERVICES.

SECTION 2. Sections 264.106(b), (e), and (g), Family Code, are amended to read as follows:

(b) The department [shall, in accordance with Section 45.004, Human Resources Code]:

(1) shall assess the need for substitute care and case management services throughout the state;

(2) may [either] contract [directly] with private agencies [as part of regional community-centered networks] for the provision of all necessary substitute care services and case management services other than court-related duties, as described in Subsection (a)(1) [or use an independent administrator to contract for those services]; and

(3) shall [contract with an independent administrator, if cost beneficial, to coordinate and manage all services needed for children in the temporary or permanent managing conservatorship of the department in 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.

(e) In addition to the requirements of Section 40.058(b), Human Resources Code, a contract with a private agency [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 private agency [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 private agency's [independent administrator's] decision and approved the decision in writing;

(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 [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.

(g) In determining whether to contract with a substitute care provider or private agency [an independent administrator], the department shall consider the provider's or agency's [administrator's] performance under any previous contract between the department and the provider or agency [administrator].

SECTION 3. Section 264.1063, Family Code, is amended to read as follows:

Sec. 264.1063. MONITORING PERFORMANCE OF SUBSTITUTE CARE [AND CASE MANAGEMENT] PROVIDERS. (a) The department, in consultation with private entities under contract with [either an independent administrator or] the department to provide substitute care [or case management] services, shall establish a quality assurance program that uses comprehensive, multitiered assurance and improvement systems based, subject to the availability of funds, on real-time data to evaluate performance.

(b) The contract performance outcomes specified in a contract under Section 264.106 must be [consistent with the fiscal goals of privatizing substitute care and case management services and must be] within the contractor's authority to deliver. The contract must clearly define the manner in which the [substitute care or case management] provider's performance will be measured and identify the information sources the department [and, if applicable, the independent administrator] will use to evaluate the performance.

SECTION 4. Sections 264.107(c) through (f), Family Code, are amended to read as follows:

(c) Not [The contract between the department and an independent administrator or other authorized entity must require, not] later than September 1, 2009, the department shall institute the use of real-time technology in the department's [independent administrator's or other authorized entity's] placement system to screen possible placement options for a child and match the child's needs with the most qualified providers with vacancies.

(d) The department shall [institute a quality assurance system in monitoring the independent administrators or other authorized entities to] ensure that placement decisions are reliable and are made in a consistent manner.

(e) In making placement decisions, [an independent administrator or other authorized entity shall use] clinical protocols must be used to match a child to the most appropriate placement resource.

(f) The department may create a regional advisory council in a region to assist the department [and independent administrator or other authorized entity] in:

(1) assessing the need for resources in the region; and

(2) locating substitute care services in the region for hard-to-place children.

SECTION 5. The heading to Chapter 45, Human Resources Code, is amended to read as follows:

CHAPTER 45. ACCOUNTABILITY [PRIVATIZATION] OF SUBSTITUTE CARE AND

CASE MANAGEMENT SERVICES

SECTION 6. Section 45.001(1), Human Resources Code, is amended to read as follows:

(1) "Case management services" means the provision of case management services to a child for whom the department has been appointed temporary or permanent managing conservator, including caseworker-child visits, family visits, the convening of family group conferences, the development and revision of the case plan, and the coordination and monitoring of services needed by the child and family[, and the assumption of court-related duties, including preparing court reports, attending judicial hearings and permanency hearings, and ensuring that the child is progressing toward permanency within state and federal mandates].

SECTION 7. The heading to Subchapter C, Chapter 45, Human Resources Code, is amended to read as follows:

SUBCHAPTER C. IMPROVEMENT [TRANSITION] PLAN

SECTION 8. Section 45.101, Human Resources Code, is amended to read as follows:

Sec. 45.101. GOALS FOR CHILD PROTECTIVE SERVICES [PRIVATIZATION]. The department [transition plan adopted under Section 45.053] must provide [for a new structural model for the community-centered delivery of] substitute care and case management services that are [is] based on a goal of improving protective services, achieving timely permanency for children in substitute care, including family reunification, placement with a relative, or adoption, and improving the overall well-being of children in substitute care consistent with federal and state mandates.

SECTION 9. Section 45.102, Human Resources Code, is amended to read as follows:

Sec. 45.102. IMPROVEMENT [TRANSITION] PLAN REQUIREMENTS. (a) The [transition plan developed by the] department and the commission shall develop an improvement plan that [must]:

(1) identifies [identify barriers to privatization, including] regional disparities in resources, provider capacity, and population, and proposes [propose] solutions to stimulate capacity and adjust program delivery;

(2) provides [provide] details regarding the target population and services by region that will be part of the improvement plan [system redesign], including the number of children and families, historic caseload trends and service utilization information, and projected caseloads;

(3) provides [provide] details regarding the roles, responsibilities, and authority assigned to the public and private entities, including the department[, independent administrators,] and substitute care and case management providers, in making key decisions throughout the child and family case;

(4) specifies [include an implementation plan to transfer all foster homes certified by the department to private child-placing agencies, ensuring minimum disruption to the children in foster care and to current foster parents;

[(5)specify] the [limited] circumstances under which a foster home verified by the department may continue to be verified by the department when continuation would be in the best interest of a child in the care of the foster home;

(5) includes [(6) include] a process for assessing each child who is transferred to a private substitute care provider to verify the child's service needs;

(6) describes [(7) include an implementation plan to transfer all adoption services to private agencies, including details of how and when cases will be transferred and how adoption provider contracts and reimbursements methods will be structured;

[(8) describe the process to transfer the duties of case management and family reunification services from department staff to private agency staff, including the integration of family group conferencing into private agency case management;

[(9)describe] the manner in which the department will procure and contract for kinship services that are funded by the state;

(7) provides [(10) provide] details regarding financial arrangements and performance expectations for [independent administrators and] substitute care [and case management] providers that:

(A) provide incentives for desired results and explicit contract performance and outcome indicators;

(B) describe how various risk-based arrangements will be weighed and realistically assessed using sound actuarial data and risk modeling and how mechanisms will be selected to limit uncontrollable risks that could threaten provider stability and quality;

(C) describe how financing options will increase flexibility to promote innovation and efficiency in service delivery; and

(D) provide balance between control over key decisions and the level of risk the contractor assumes;

(8) requires [(11) require] the executive commissioner to evaluate whether existing rate structures are appropriate to compensate substitute care providers [who enter into contracts with an independent administrator under Section 264.106, Family Code], considering new functions to be served by the providers, and, if necessary, requires [require] the executive commissioner to adjust the rates accordingly;

(9) describes the manner in which [(12) require] the department will [to] enter into any contracts for the provision of substitute care [and case management] services [as required by Section 264.106, Family Code,] and describes [describe] the procurement and contracting process, including[:

[(A) stating how the department will shift from an open-enrollment system to a competitive procurement system;

[(B)] identifying the services that will be procured and contracted for directly with the department [and the services that will be procured by an independent administrator; and

[(C) developing a procurement and contracting schedule to ensure full implementation not later than September 1, 2011];

(10) provides [(13) provide] for the implementation of Section [Sections 264.1062 and] 264.107, Family Code, by describing each party's responsibility and ensuring that the department retains the legal authority to effectively provide oversight;

(11) describes [(14) describe] formal training required for department staff[, independent administrators,] and substitute care [and case management] providers;

(12) defines [(15) define] roles and expectations related to reporting and managing data required to ensure quality services and meet state and federal requirements, including data collection responsibilities for the department [an independent administrator] and a service provider;

(13) describes [(16) describe] how the improvement plan [transition] will impact the state's ability to obtain federal funding and examines [examine] options to further maximize federal funding opportunities and increased flexibility; and

(14) describes [(17) describe] the costs of the improvement plan [transition], the initial start-up costs, and mechanisms to periodically assess the overall adequacy of funds and the fiscal impact of the change.

(b) The improvement plan must ensure that the department:

(1) improves quality and accountability in services delivered directly by the department;

(2) improves quality and accountability in services delivered by providers under contract with the department;

(3) expands substitute care quality and capacity in local communities;

(4) provides family preservation services to enable families to allow children to remain safely in their own homes, including services that:

(A) use family group decision-making to prevent removal of children;

(B) reduce family-based safety services caseloads; and

(C) address poverty-related factors to assist families in staying together;

(5) expands the availability of services to children and families through contracts, including protective daycare, homemaker services, and other early intervention services;

(6) reduces the length of time that children remain in state care by:

(A) using family group decision-making at the time of removal to increase placements with relatives;

(B) contracting for additional reunification services, including counseling, therapy, and substance abuse treatment services;

(C) reducing substitute care caseloads; and

(D) achieving permanency in a timely manner by increasing kinship care and adoption services and by improving court-related services; and

(7) improves the recruitment, support, and retention of department caseworkers by:

(A) conducting a staff turnover study to determine the reasons that caseworkers leave employment with the department, and using that information to develop caseworker recruitment and retention plans;

(B) developing competent, visionary, and committed organizational leaders who are capable of providing a supportive organizational environment for caseworkers;

(C) maintaining caseworker caseloads and staff workloads at manageable levels;

(D) providing effective supervision and mentoring for caseworkers to increase job satisfaction and improve outcomes for children and families;

(E) developing and enhancing automated data management systems to ensure the collection of timely and accurate information to guide the department in providing staff training and supervision and making policy and other decisions;

(F) developing effective quality assurance and accountability mechanisms to support an effective workforce and ensure positive outcomes for children, youth, and families;

(G) providing caseworkers with technological resources and support staff to assist caseworkers in meeting their professional responsibilities and tracking the children and families served; and

(H) conducting salary studies to enable the development of more equitable pay scales and creation of employment incentives.

(c) Not later than December 31, 2008, the commission and department shall jointly report to the House Human Services Committee, or its successor, and the Senate Health and Human Services Committee, or its successor, on the status of the improvement plan.

(d) The executive commissioner shall adopt rules necessary to implement the improvement plan.

SECTION 10. Section 45.151(d), Human Resources Code, is amended to read as follows:

(d) If the department determines that an individual or business entity holding a contract under this chapter was ineligible to have the contract accepted or awarded under Subsection (a) or [,] (b), [or (c),] the department may immediately terminate the contract without further obligation to the vendor.

SECTION 11. The following provisions are repealed:

(1) Sections 264.106(a)(2), (c), (d), (f), (i), (j), and (k), Family Code;

(2) Section 264.1062, Family Code;

(3) Sections 45.001(6), (9), (10), and (11), Human Resources Code;

(4) Sections 45.002, 45.003, 45.004, and 45.151(c), Human Resources Code; and

(5) Subchapter B, Chapter 45, Human Resources Code.

SECTION 12. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.