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.

BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Texas is implementing community-based care (CBC) to decentralize the placement and case management services for children in foster care. Due to poor performance from certain providers, the Department of Family and Protective Services (DFPS) has cited the need for additional statutory "tools" to administer CBC to ensure provider accountability.

Additionally, the federal law�the Family First Prevention Services Act�provides funding and approval for children at-risk of entering foster care to be served by DFPS in the home using evidence-based services. DFPS provides these services currently within its "Texas Family First" pilot program, but the current CBC statutes lack clarity on whether CBC providers may offer family preservation services currently provided under these pilots. Additionally, the statutes are not clear that adoption-related services and extended foster care services can be rendered by CBC providers.

Meanwhile, Texas has struggled to find adequate placements for certain children in its foster care system. Children lacking these placements are often referred to as children without placement. Current practices at DFPS allow children to refuse their placements, which often results in children residing in a hotel or a shelter monitored by DFPS staff. Moreover, some judges have ordered children into temporary emergency placements despite the availability of a suitable, regulated foster care placement.

S.B. 1398 addresses these issues by prohibiting judges from rendering orders that would place a foster child in temporary emergency care when a suitable residential placement is available.

It also clarifies that CBC providers can offer family preservation services, pre-adoption and post-adoption assistance, and services for children in the conservatorship of DFPS who must transition to independent living. It further establishes CBC providers to develop or continue to develop faith-based partnerships to support children in conservatorship.

Finally, it establishes requirements in CBC contracts and implementation planning to allow DFPS to have financial remedies for under-performing providers, to increase provider transparency and ensure there are outcome measures for children in care.

As proposed, S.B. 1398 amends current law 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.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Department of Family and Protective Services in SECTION 3 (Section 262.411, Family Code) and SECTION 17 (Section 264.2031, Family Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 262.401(3), Family Code, to redefine "family preservation service."

SECTION 2. Amends the heading to Section 262.411, Family Code, to read as follows:

Sec. 262.411. SELECTION OF SERVICE PROVIDER; REIMBURSEMENT.

SECTION 3. Amends Section 262.411, Family Code, by amending Subsection (c) and adding Subsections (c-1) and (c-2), as follows:

(c) Provides that a 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. Deletes existing text providing that a parent who obtains family preservation services from a provider selected by the person is responsible for the cost of those services.

(c-1) Requires the Department of Family and Protective Services (DFPS) to reimburse a service provider selected by the parent under Subsection (a) (relating to authorizing certain members of a household to obtain family preservation services from certain providers) who is not under contract with DFPS in an amount equal to the average cost for the specific service, including any virtual services, from DFPS contractors providing the service in the region where the parent resides.

(c-2) Requires DFPS to adopt rules relating to the manner in which providers are reimbursed for services provided under Section 262.411 (Selection of Service Provider), implement this section using existing resources, and prioritize payments to providers of in-home support services under Section 264.2011 (Enhanced In-Home Support Program).

SECTION 4. Amends Subchapter A, Chapter 263, Family Code, by adding Section 263.0022, as follows:

Sec. 263.0022. TEMPORARY EMERGENCY SUPERVISION; MONTHLY REPORT. (a) Defines "temporary emergency supervision."

(b) Prohibits DFPS or a single source continuum contractor from advocating for and a court from rendering an order placing a child in temporary emergency supervision if a safe and appropriate placement is available. Prohibits DFPS or the contractor and the court from considering a child's refusal to stay in a placement when determining whether the placement is safe and appropriate.

(c) Requires DFPS or the single source continuum contractor, before a court is authorized to order temporary emergency supervision for a child, to submit a report to the court that includes information regarding each attempted placement, including the type of placement, the location of the placement, the date DFPS or the contractor contacted the placement, and the reason DFPS or the contractor determined the placement was not safe or appropriate.

(d) Requires DFPS to prepare and submit a monthly report to the legislature related to children in temporary emergency supervision. Requires that the report include, for the preceding month:

(1) the total number of children in temporary emergency supervision;

(2) certain information for each child in temporary emergency supervision; and

(3) the total cost of providing temporary emergency supervision, including certain costs.

SECTION 5. Amends Section 264.107(g), Family Code, as follows:

(g) Authorizes an employee of DFPS or contractor who has on file with DFPS or contractor, as applicable, a background and criminal history check, if DFPS or single source continuum contractor is unable to find a safe and appropriate placement for a child, to provide temporary emergency supervision, rather than emergency care, for the child. Makes conforming and nonsubstantive changes.

SECTION 6. Amends Section 264.1261(b), Family Code, to make a nonsubstantive change.

SECTION 7. Amends Section 264.152, Family Code, by amending Subdivision (2) and adding Subdivisions (5) and (6) to redefine "case management" and to define "faith-based organization" and "family preservation service."

SECTION 8. Amends Section 264.153, Family Code, as follows:

Sec. 264.153. COMMUNITY-BASED CARE IMPLEMENTATION PLAN. (a) Requires that the plan for implementing community-based care include certain information, including DFPS'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 evaluation, rather than an independent evaluation, of each contractor's processes and fiscal and qualitative outcomes.

(b) Requires DFPS to annually:

(1) makes no changes to this subdivision;

(2) post on DFPS's Internet website the progress DFPS 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) any contractor responses to the plans described by Paragraph (B).

SECTION 9. Amends the heading to Section 264.154, Family Code, to read as follows:

Sec. 264.154. QUALIFICATIONS OF SINGLE SOURCE CONTINUUM CONTRACTOR; SELECTION; PUBLICATION.

SECTION 10. Amends Section 264.154, Family Code, by adding Subsections (d) and (e), as follows:

(d) Requires DFPS to annually post on DFPS'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) Requires a single source continuum contractor to provide information described by Subsection (d)(2) to DFPS.

SECTION 11. Amends the heading to Section 264.155, Family Code, to read as follows:

Sec. 264.155. CONTRACT PROVISIONS.

SECTION 12. Amends Section 264.155, Family Code, by amending Subsection (a) and adding Subsection (a-1), as follows:

(a) Requires that a contract with a single source continuum contractor to provide community-based care services in a catchment area include provisions that:

(1) establish a timeline for the implementation of community-based care in the catchment area, including a timeline for implementing the following in an order determined by DFPS based on community needs and contractor capacity:

(A) family preservation services; and

(B)-(C) redesignates existing Paragraphs (A)-(B) as Paragraphs (B)-(C) and makes no further changes;

(2)-(4) makes no changes to these subdivisions;

(5) require DFPS to conduct annual performance reviews of the contractor beginning on the first anniversary of the contract to:

(A) determine if the contractor has achieved certain applicable performance outcomes specified in the contract as determined by services implemented at the time of the review;

(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, rather than allow, DFPS to:

(A) publish the review on DFPS's Internet website;

(B)� impose financial penalties on the contractor for failing to meet applicable performance outcomes as determined by services implemented at the time of the review, rather than any specified performance outcomes;

(C)� redesignates existing Paragraph (B) as Paragraph (C) and makes a conforming change; and

(D) if deficiencies in the provision of services are identified, impose a corrective action plan to address the deficiencies that includes a timeline for addressing the deficiencies and provides for escalating interventions if deficiencies are not addressed;

(7) allow DFPS 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) except as provided by Subdivision (9), following the review under Subdivision (5), transfer the provision of family preservation services to the contractor only if:

(A) the contractor is not subject to a corrective action plan or other contract remedy for failure to meet applicable performance outcomes;

(B) DFPS determines that the contractor has demonstrated sufficient capacity to provide family preservation services; and

(C) an external review indicates the contractor has adequate systems and processes in place to effectively provide family preservation services;

(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) redesignates existing Subdivision (7) as Subdivision (10) and makes no further changes;

(11) require the contractor to implement, rather than 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 meets at least quarterly, maintains, as the majority of the committee's membership, members not employed by or contracted with the contractor, and includes certain representatives;

(12) require DFPS to include findings and recommendations from the advisory committee established under Subdivision (11) in the annual performance review under Subdivision (5), any corrective action plan under Subdivision (6)(D), and any other applicable quality improvement measures; and

(13) redesignates existing Subdivision (9) as Subdivision (13) and makes no further changes.

Deletes existing text requiring that a contract with a single source continuum contractor to provide community-based care services in a catchment area include provisions that allow DFPS to conduct a performance review of the contractor beginning 18 months after the contractor has begun providing ease management and family reunification support services to all children and families in the catchment area. Makes nonsubstantive changes.

(a-1) Authorizes a contract with a single source continuum contractor to provide community-based care services in a catchment area to 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 the need for foster parents in the community, the requirements for becoming a foster parent, and 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. Amends Section 264.156(a), Family Code, as follows:

(a) Requires DFPS to 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 certain services, including family preservation services. Makes nonsubstantive changes.

SECTION 14. Amends Sections 264.158(a) and (b), Family Code, to makes conforming and nonsubstantive changes.

SECTION 15. Amends Section 264.162, Family Code, as follows:

Sec. 264.162. REVIEW OF CONTRACTOR PERFORMANCE. Requires DFPS to 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. Requires DFPS to post the monitoring schedule on DFPS's Internet website.

SECTION 16. Amends the heading to Section 264.2031, Family Code, to read as follows:

Sec. 264.2031. SELECTION OF SERVICE PROVIDER; REIMBURSEMENT.

SECTION 17. Amends Section 264.2031, Family Code, by amending Subsection (b) and adding Subsections (b-1) and (d), to make conforming changes.

(b) Provides that a 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. Deletes existing text providing that a parent who obtains family preservation services from a provider selected by the person is responsible for the cost of those services.

(b-1) Requires DFPS to reimburse a service provider selected by the parent under Subsection (a) (relating to authorizing certain members of a household to obtain family preservation services from certain providers) who is not under contract with DFPS in an amount equal to the average cost for the specific service, including any virtual services, from DFPS contractors providing the service in the region where the parent resides.

(d) Requires DFPS to adopt rules relating to the manner in which providers are reimbursed for services provided under Section 264.2031 (Selection of Service Provider), implement this section using existing resources, and prioritize payments to providers of in-home support services under Section 264.2011.

SECTION 18. Repealers: Sections 264.113(a) (relating to defining "faith-based organization") and (b) (relating to requiring DFPS to develop a program to recruit and retain foster parents from faith-based organizations), Family Code.

Repealer: Section 264.113(c) (relating to requiring DFPS to work with OneStar Foundation to increase the number of foster families available for DFPS and its private providers), Family Code.

SECTION 19. (a) Provides that 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 DFPS is named the child's managing conservator.

(b) Makes application of Sections 264.152, 264.155, 264.156(a), and 264.158(a) and (b), Family Code, as amended by this Act, prospective.

SECTION 20. Effective date: September 1, 2025.