89R7262 AMF-F     By: Craddick 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" has the meaning assigned by   Section 264.152.                (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 established under this subchapter.          Sec. 264.182.  ESTABLISHMENT OF PILOT PROGRAM. The   department shall establish 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. (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.          Sec. 264.184.  PROGRAM MODEL AND IMPLEMENTATION SCHEDULE;   AUTHORITY. (a) The lead entity shall develop a program model that   includes a timeline for implementing community-based care in the   eligible rural region and that:                (1)  includes the following services for families and   children:                      (A)  early intervention services to prevent entry   into foster care;                      (B)  family preservation services, as defined by   Section 262.401;                      (C)  case management, as defined by Section   264.152;                      (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)  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)  To implement the 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;                (2)  allocate resources as needed to meet community   needs; and                (3)  enter into contracts with service providers.          Sec. 264.185.  COLLABORATIVE GOVERNANCE STRUCTURE. (a)  The   lead entity shall establish a collaborative governance structure to   provide oversight and guidance for the provision of community-based   care under the pilot program. The lead entity shall 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)  The lead entity shall collaborate with the entities   described by Subsection (a) to:                (1)  develop program policies and procedures;                (2)  identify community needs and resources;                (3)  monitor program performance and outcomes; and                (4)  make recommendations for continuous program   improvement.          (c)  The department may only provide advice to the lead   agency in the implementation of the pilot program.          Sec. 264.186.  FUNDING AND RESOURCES. (a) The department   shall 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:                      (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;                (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)  The department shall explore and leverage various   funding sources, including state and federal funds, to implement   and sustain the pilot program.          (c)  The department may provide the lead entity with   resources, including funds and personnel, to implement the pilot   program.          Sec. 264.187.  INTEGRATED ELECTRONIC MANAGEMENT SYSTEM. (a)     The department and the lead entity shall implement an integrated   electronic 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)  The department shall provide to the lead entity   technical support and access to data as necessary to facilitate   effective implementation of the integrated electronic management   system.          (c)  The department and lead entity shall establish   protocols related to the integrated electronic management system to   ensure:                (1)  privacy and security of data; and                (2)  the efficient sharing of information.          Sec. 264.188.  WORKFORCE DEVELOPMENT. To support the   implementation of the pilot program, the lead entity, in   collaboration with the department and local educational   institutions, shall develop and implement 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.  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 agency 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 agency, 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. 264.190.  WAIVERS. (a)  The lead entity may apply to   the commissioner of the department for a waiver from any statutory   or regulatory requirement that governs the provision of child   welfare services.          (b)  The waiver request must 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)  The commissioner of the department shall grant a waiver   request under this section if the commissioner determines that:                (1)  the waiver:                      (A)  will not jeopardize the health, safety, or   well-being of children and families receiving services under the   program; and                      (B)  is likely to improve outcomes for children   and families receiving services under the program; and                (2)  the lead entity has a:                      (A)  clear plan for implementing the change that   requires the waiver; and                      (B)  method for evaluating the effectiveness of   the change being implemented under the waiver.          (d)  Not later than the 30th day after the date the   commissioner of the department receives a waiver request, the   commissioner shall make a determination on the waiver request. If   the commissioner denies a waiver request, the commissioner shall   provide to the lead entity a written explanation of the reason for   the denial.          Sec. 264.191.  CONFLICT RESOLUTION PROCESS. (a)  The   department and lead entity shall establish a formal process for   resolving conflicts or disputes that arise during the   implementation of the pilot program. The process must prioritize   collaborative problem solving and may include mediation if   necessary.          (b)  If a conflict or dispute cannot be resolved through the   process described by Subsection (a), the department or the lead   entity may request a review by an independent panel of residents of   the catchment area appointed by the governor.          Sec. 264.192.  CHANGE ORDER PROCESS. (a) Except as provided   by this section, the department may not change any requirement or   responsibility or the scope of work of the lead agency.          (b)  The department may 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:                      (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.          (c)  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. 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 264.191.          (d)  An agreed-upon change order must be documented in a   written amendment to the contract between the department and the   entity and executed by both parties.          Sec. 264.193.  ANNUAL REPORT. The department shall 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:                      (A)  the change and the reason for the change; and                      (B)  the cost of funding the change and how the   cost was addressed.          Sec. 264.194.  RULEMAKING. The department may adopt rules   necessary to implement this subchapter.          Sec. 264.195.  PROGRAM REVIEW; EXPIRATION. (a) Not later   than January 1, 2029, 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, 2029.          SECTION 2.  This Act takes effect September 1, 2025.