S.B. No. 513

	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.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 513 passed the Senate on
	March 26, 2025, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 513 passed the House on
	April 29, 2025, by the following vote:  Yeas 145, Nays 1, two
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor