HB 1536

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
(2)  "Community-based care" has the meaning assigned by
(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
(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
(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
(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
(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
(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
(A)  early intervention services to prevent entry
(B)  family preservation services, as defined by
(C)  case management, as defined by Section
(D)  foster care and kinship care services;
(E)  adoption and post-adoption services;
(F)  transition services for youth aging out of
(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
(3)  develops and implements innovative approaches to
improve outcomes for children and families;
(4)  addresses any inequities in the region's child
(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
(2)  allocate resources as needed to meet community
(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
(1)  the entity's leadership and staff;
(2)  local families with lived experience in the child
(3)  local representatives from sectors related to the
child welfare system, including the judiciary, education, 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
(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
(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,
(A)  increased transportation costs;
(B)  challenges in achieving economies of scale in
(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;
(6)  allows for the reinvestment of cost savings into
(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
(c)  The department may provide the lead entity with
resources, including funds and personnel, to implement the pilot
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
(1)  allows for real-time case management;
(2)  facilitates coordination among service providers;
(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
(c)  The department and lead entity shall establish
protocols related to the integrated electronic management system to
(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
(1)  strategies that address rural workforce
challenges, including strategies for recruiting and retaining
(2)  training programs aligned with best practices in
(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
(b)  The independent evaluator shall assess:
(1)  the outcomes for children and families receiving
(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
(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
(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
(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
(c)  The commissioner of the department shall grant a waiver
request under this section if the commissioner determines that:
(A)  will not jeopardize the health, safety, or
well-being of children and families receiving services under the
(B)  is likely to improve outcomes for children
and families receiving services under the program; and
(A)  clear plan for implementing the change that
(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
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
(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
(A)  the source of funding for the proposed
(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
(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
(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
(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
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.