89R18939 AMF-F     By: Craddick H.B. No. 1536     Substitute the following for H.B. No. 1536:     By:  Hull C.S.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" means the provision of   child welfare services in accordance with state and federal child   welfare goals by a community-based nonprofit or local governmental   entity under the pilot program.                (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 implemented under this subchapter.          Sec. 264.182.  IMPLEMENTATION OF PILOT PROGRAM. The   department, in partnership with a lead entity selected under   Section 264.183, shall develop and implement 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;   PROCUREMENT.  (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.          (d)  The department's request for bids, proposals, or other   applicable expressions of interest to provide community-based care   in the eligible rural region may include, in a single request,   services to develop the pilot program model and implement the pilot   program.          (e)  Notwithstanding any other law and to address the unique   challenges of providing community-based care to rural areas of this   state in an efficient manner the department may:                (1)  procure, as a single procurement, services to   develop a pilot program model under Section 264.184(a) and   implement the pilot program under Section 264.184(b); and                (2)  separately procure the services of the independent   evaluator under Section 264.194.          Sec. 264.184.  PILOT PROGRAM MODEL AND IMPLEMENTATION   SCHEDULE; AUTHORITY.  (a)  The department, in partnership with the   lead entity, shall develop a pilot program model that includes a   timeline, with identified funding, for implementing   community-based care in the eligible rural region and that   addresses:                (1)  the following services for families and children:                      (A)  family-based services to ensure child safety   and prevent entry into foster care;                      (B)  family preservation services, as defined by   Section 262.401;                      (C)  case management;                      (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)  the development of and coordination with a diverse   network of service providers, including faith-based organizations,   local mental health authorities, and others to ensure comprehensive   service delivery;                (3)  the development and implementation of innovative   approaches to improve outcomes for children and families;                (4)  any identified geographic disparities in service   availability and access in the region's child welfare system;                (5)  the creation and oversight of a quality assurance   system; and                (6)  the implementation of a system to manage financial   risks and resources, including state and federal funds.          (b)  To implement the pilot 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 and consistent with department policies and   procedures, unless waived under Section 264.189;                (2)  allocate resources as needed to meet community   needs; and                (3)  enter into contracts with service providers,   including contracts for case management services.          Sec. 264.185.  COMMUNITY ALLIANCE. (a)  The department and   lead entity shall establish a community alliance or similar group   of stakeholders to provide a forum for community participation and   governance of community-based care under the pilot program. The   department and lead entity shall collaborate with:                (1)  local families with lived experience in the child   welfare system;                (2)  local representatives from sectors related to the   child welfare system, including the judiciary, education, and   health care; and                (3)  other community stakeholders.          (b)  The duties of the community alliance or similar group of   stakeholders described by Subsection (a) shall include:                (1)  joint planning with the department and lead entity   regarding resource utilization in the community, including   resources appropriated to the department and any funds provided by   local funding sources for that purpose;                (2)  conducting needs assessments and establishing of   community priorities for service delivery;                (3)  determining community outcome goals to supplement   state-required outcomes;                (4)  serving as a catalyst for community resource   development, including:                      (A)  identifying existing programs, services, and   assistance available from community- and faith-based   organizations;                      (B)  encouraging the development and increased   availability of programs, services, and assistance available from   community- and faith-based organizations; and                      (C)  informing the department and the lead entity   of programs, services, and assistance available from community- and   faith-based organizations and working to facilitate the lead   entity's use of the available resources;                (5)  providing for community education and advocacy   regarding issues related to delivery of services; and                (6)  promoting family preservation services.          Sec. 264.186.  DEVELOPMENT OF FUNDING AND RESOURCES. (a)   The department shall seek input from the lead entity regarding the   feasibility of a capitated funding model for the provision of   services under the pilot program.  If the department determines   that a capitated funding model is feasible, the department shall   develop a capitated funding model that provides a fixed rate of   funding per child receiving services under the pilot program.          (b) Regardless of whether the department implements a   capitated funding model under Subsection (a), the department   shall ensure that the funding model for the pilot program:                (1)  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;                (2)  includes financial risk-sharing mechanisms;                (3)  incentivizes desired outcomes and cost savings;                (4)  supports innovation;                (5)  allows for the reinvestment of cost savings into   the program; and                (6)  allows the lead entity to flexibly allocate funds   within the scope of applicable law.          (c)  The department shall pursue leveraging various funding   sources, including state and federal funds, to implement and   sustain the pilot program.          Sec. 264.187.  DATA MANAGEMENT AND INFORMATION SHARING. (a)     The department shall determine the feasibility of implementing an   integrated electronic case 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)  Regardless of whether the department implements an   integrated electronic case management system, the department   shall:                (1)  provide to the lead entity technical support and   access to data as necessary to facilitate implementation of a data   management system for effective case management and service   coordination;                (2)  ensure secure and efficient information sharing   with stakeholders; and                (3)  support outcome tracking and reporting through   existing or modified systems.          (c)  The department shall establish protocols related to any   data management and information-sharing systems used for the pilot   program to ensure:                (1)  privacy and security of data; and                (2)  the efficient sharing of information.          Sec. 264.188.  WORKFORCE DEVELOPMENT.  The department, in   collaboration with the lead entity, shall incorporate into the   pilot program 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.  WAIVERS.  To implement the pilot program, the   lead entity may apply to the commissioner of the department for a   waiver from any department policy or procedure that governs the   provision of child welfare services.  The commissioner shall adopt   a procedure for the application for a waiver described by this   section.          Sec. 264.190.  CONFLICT RESOLUTION PROCESS. The department   and lead entity shall establish a formal process for resolving   conflicts or disputes that arise related to the pilot program.          Sec. 264.191.  CHANGE ORDER PROCESS. (a)  The department   shall request any change to the contracted scope of work of the lead   entity related to the pilot program in writing.  The request must   include:                (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.          (b)  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, unless   the change is required by federal or state law or court order or is   necessary to ensure child health or safety. 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   264.190.          (c)  This section may not be construed to limit or restrict   the authority of the department to include necessary oversight   measures and review processes in a contract under this subchapter   to maintain compliance with federal and state requirements. The   department retains responsibility for the quality of contracted   services and programs and shall ensure that, at a minimum, services   are delivered in accordance with applicable state and federal law.          (d)  A lead entity and its subcontractors must comply with   each applicable court order:                (1)  issued in a suit regarding a child for whom the   lead entity or its subcontractors have assumed case management   responsibilities; or                (2)  imposing a requirement on the department that   relates to contracted functions assumed by the lead entity or its   subcontractors.          Sec. 264.192.  CONFIDENTIALITY. Subchapter C, Chapter 261,   of this code and Chapter 552, Government Code, apply to the records   of a lead entity or its subcontractors that relate to the provision   of community-based care under the pilot program in the same manner   as the records of the department.          Sec. 264.193.  PRIVILEGED COMMUNICATION. The lead entity   and its employees, agents, and representatives are client's   representatives of the department for purposes of the   attorney-client privilege under Rule 503, Texas Rules of Evidence,   as that privilege applies to communications with a prosecuting   attorney or other attorney representing the department or that   attorney's representative in a proceeding under this subtitle.          Sec. 264.194.  POST-IMPLEMENTATION 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 entity 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 entity, 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. 264.195.  PROGRAM DEVELOPMENT REPORT. Not later than   January 1, 2027, the department shall submit a report to the   legislature regarding the pilot program model developed under this   subchapter. The department shall implement the pilot program only   if the pilot program is sufficiently funded.          Sec. 264.196.  ANNUAL IMPLEMENTATION REPORT. Not later than   December 1, 2028, and annually thereafter, the department shall   submit a report to the legislature relating to the implementation   of the pilot program that includes:                (1)  the findings of the independent evaluator under   Section 264.194, if applicable, including any recommendations from   the independent evaluator for improving and expanding the pilot   program;                (2)  information about each denied waiver under Section   264.189, including the reason for denial; and                (3)  a detailed account of each agreed-upon change   order under Section 264.191 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. 264.197.  RULEMAKING. The department may adopt rules   necessary to implement this subchapter.          Sec. 264.198.  PROGRAM REVIEW; EXPIRATION. (a) Not later   than September 1, 2031, 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, 2031.          SECTION 2.  This Act takes effect September 1, 2025.