Relating to a rural community-based care pilot program.

BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Recent efforts to implement community-based care (CBC) in rural regions, such as Region 9 in West Texas, have failed to receive bids for contract. Region 9 stakeholders have expressed concerns that the CBC model, in its current form, merely privatizes existing structures rather than transforming them. To improve the viability of CBC in these areas, the Texas Department of Family & Protective Services (DFPS) conducted a 2024 Request for Information, which revealed significant infrastructure challenges and resource gaps in rural regions. Considering declining performance data and ongoing issues in the state's child welfare system, S.B. 513 proposes a rural short-term pilot project using a distributed network model, empowering local lead agencies to manage services through regional providers. S.B. 513 seeks to address the challenges faced by rural Texas communities in providing effective child welfare services by introducing a community-driven, innovative approach to CBC.

As proposed, S.B. 513 amends current law relating to a community-based care pilot program.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Department of Family and Protective Services in SECTION 1 (Section 264.194, Family Code) of this bill.����������

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 264, Family Code, by adding Subchapter B-2, as follows:

SUBCHAPTER B-2. RURAL COMMUNITY-BASED CARE PILOT PROGRAM

Sec. 264.181. DEFINITIONS. Defines "catchment area," "community-based care," "eligible rural region," and "pilot program."

Sec. 264.182. ESTABLISHMENT OF PILOT PROGRAM. Requires the Department of Family and Protective Services (DFPS) to establish a rural community-based care pilot program (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) Requires an entity, to enter into a contract with DFPS to serve as a lead entity to provide services under this subchapter, to be a nonprofit entity that has a board of directors composed entirely of residents of the catchment area or a local government entity.

(b) Requires DFPS, in selecting a lead entity, to consider whether a prospective contractor has strong community support and partnerships, demonstrated experience leading collaborative initiatives in the region, and the capacity to coordinate with local community organizations to serve children and families.

(c) Requires DFPS to request local stakeholders in an eligible rural region to provide any necessary information about the region that will assist DFPS in preparing DFPS's request for bids, proposals, or other applicable expressions of interest to provide community-based care in the eligible rural region and selecting a lead entity to provide community-based care in the eligible rural region.

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

(1) includes certain services for families and children;

(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) Authorizes a lead entity, to implement the program model developed under Subsection (a), to develop and implement policies and procedures regarding the provision of community-based care within the scope of applicable law, to allocate resources as needed to meet community needs, and to enter into contracts with service providers.

Sec. 264.185. COLLABORATIVE GOVERNANCE STRUCTURE. (a) Requires the lead entity to establish a collaborative governance structure to provide oversight and guidance for the provision of community-based care under the pilot program. Requires the lead entity to 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) Requires the lead entity to collaborate with the entities described by Subsection (a) to develop program policies and procedures, identify community needs and resources, monitor program performance and outcomes, and make recommendations for continuous program improvement.

(c) Provides that DFPS is authorized only to provide advice to the lead agency in the implementation of the pilot program.

Sec. 264.186. FUNDING AND RESOURCES. (a) Requires DFPS to 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 increased transportation costs, challenges in achieving economies of scale in the provision of services, increased costs for recruiting and retaining qualified staff in rural areas, and 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) Requires DFPS to explore and leverage various funding sources, including state and federal funds, to implement and sustain the pilot program.

(c) Authorizes DFPS to provide the lead entity with resources, including funds and personnel, to implement the pilot program.

Sec. 264.187. INTEGRATED ELECTRONIC MANAGEMENT SYSTEM. (a) Requires DFPS and the lead entity to implement an integrated electronic management system for community-based care provided under the pilot program that allows for real-time case management, facilitates coordination among service providers, and supports outcome tracking and reporting.

�(b) Requires DFPS to provide to the lead entity technical support and access to data as necessary to facilitate effective implementation of the integrated electronic management system.

(c) Requires DFPS and the lead entity to establish protocols related to the integrated electronic management system to ensure privacy and security of data and the efficient sharing of information.

Sec. 264.188. WORKFORCE DEVELOPMENT. Requires the lead entity, in collaboration with DFPS and local educational institutions, to support the implementation of the pilot program, to develop and implement a workforce development plan that includes strategies that address rural workforce challenges, including strategies for recruiting and retaining child welfare professionals; training programs aligned with best practices in child welfare; and career advancement opportunities.

Sec. 264.189. INDEPENDENT EVALUATION. (a) Requires DFPS to 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. Requires DFPS to consult with the lead entity and the entities described by Section 264.185(a) when selecting the independent evaluator.

(b) Requires the independent evaluator to assess certain data and information.

(c) Requires DFPS and the lead agency to cooperate with the evaluation process and provide the independent evaluator all necessary data and information to conduct the evaluation required by this section.

(d) Requires DFPS, the lead agency, and entities described by Section 264.185(a) to 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) Authorizes the lead entity to apply to the commissioner of DFPS (commissioner) for a waiver from any statutory or regulatory requirement that governs the provision of child welfare services.

(b) Requires that the waiver request 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) Requires the commissioner to grant a waiver request under this section if the commissioner determines that:

(1) the waiver will not jeopardize the health, safety, or well-being of children and families receiving services under the program and is likely to improve outcomes for children and families receiving services under the program; and

(2) the lead entity has a clear plan for implementing the change that requires the waiver and method for evaluating the effectiveness of the change being implemented under the waiver.

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

Sec. 264.191. CONFLICT RESOLUTION PROCESS. (a) Requires DFPS and the lead entity to establish a formal process for resolving conflicts or disputes that arise during the implementation of the pilot program. Provides that the process is required to prioritize collaborative problem solving and is authorized to include mediation if necessary.

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

Sec. 264.192. CHANGE ORDER PROCESS. (a) Prohibits DFPS, except as provided by this section, from changing any requirement or responsibility or the scope of work of the lead agency.

(b) Authorizes DFPS to 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 the source of funding for the proposed change or, 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) Provides that a change request under this section is subject to negotiation between the lead entity and DFPS. Authorizes the lead entity to reject any proposed change that is not adequately funded or substantially alters the provision of community-based care under the contract executed between DFPS and the entity. Requires DFPS and the lead entity, in the event of a dispute between DFPS and the entity regarding a proposed change or the funding for the change, to follow the conflict resolution process described by Section 264.191.

(d) Requires that an agreed-upon change order be documented in a written amendment to the contract between DFPS and the entity and executed by both parties.

Sec. 264.193. ANNUAL REPORT. Requires DFPS to 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 the change and the reason for the change and the cost of funding the change and how the cost was addressed.

Sec. 264.194. RULEMAKING. Authorizes DFPS to adopt rules necessary to implement this subchapter.

Sec. 264.195. PROGRAM REVIEW; EXPIRATION. (a) Requires the legislature, not later than January 1, 2029, to review the outcomes and effectiveness of the pilot program to determine whether to extend, modify, or conclude the program.

(b) Provides that this subchapter expires September 1, 2029.

SECTION 2. Effective date: September 1, 2025.