SB 1398

relating to certain procedures in a suit affecting the parent-child
relationship for a child placed in the conservatorship of the
Department of Family and Protective Services and the provision of
family preservation services and community-based foster care.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 262.401(3), Family Code, is amended to
(3)  "Family preservation service" means [a]
time-limited, family-focused services [service], including
services [a service] subject to the Family First Prevention
Services Act (Title VII, Div. E, Pub. L. No. 115-123), family-based
safety services, and services approved under the Title IV-E state
plan provided to the family of a child who is:
(A)  a candidate for foster care to prevent or
eliminate the need to remove the child and to allow the child to
remain safely with the child's family; [or]
(B)  a pregnant or parenting foster youth;
(C)  a member of a household that is subject to an
order rendered under Section 264.203; or
(D)  the subject of a monitored return under
SECTION 2.  The heading to Section 262.411, Family Code, is
Sec. 262.411.  SELECTION OF SERVICE PROVIDER;
SECTION 3.  Section 262.411, Family Code, is amended by
amending Subsection (c) and adding Subsections (c-1) and (c-2) to
(c)  A [parent,] managing conservator, guardian, or other
member of a household who is not a parent and who obtains family
preservation services from a provider selected by the person is
responsible for the cost of those services.
(c-1)  The department shall reimburse a service provider
selected by the parent under Subsection (a) who is not under
contract with the department in an amount equal to the average cost
for the specific service, including any virtual services, from
department contractors providing the service in the region where
(1)  adopt rules relating to the manner in which
providers are reimbursed for services provided under this section;
(2)  implement this section using existing resources;
(3)  prioritize payments to providers of in-home
support services under Section 264.2011.
SECTION 4.  Subchapter A, Chapter 263, Family Code, is
amended by adding Section 263.0022 to read as follows:
Sec. 263.0022.  TEMPORARY EMERGENCY SUPERVISION; MONTHLY
REPORT.  (a)  In this section, "temporary emergency supervision"
means the supervision and care provided by the department or a
single source continuum contractor for a child without placement
for whom the department has been appointed as the temporary or
permanent managing conservator.
(b)  The department or a single source continuum contractor
may not advocate for and a court may not render an order placing a
child in temporary emergency supervision if a safe and appropriate
placement is available.  The department or the contractor and the
court may not consider a child's refusal to stay in a placement when
determining whether the placement is safe and appropriate.
(c)  Before a court may order temporary emergency
supervision for a child, the department or the single source
continuum contractor shall submit a report to the court that
includes information regarding each attempted placement,
(2)  the location of the placement;
(3)  the date the department or the contractor
(4)  the reason the department or the contractor
determined the placement was not safe or appropriate.
(d)  The department shall prepare and submit a monthly report
to the legislature related to children in temporary emergency
supervision. The report must include, for the preceding month:
(1)  the total number of children in temporary
(2)  for each child in temporary emergency supervision:
(i)  age, sex, race, and ethnicity; and
(ii)  foster care service level;
(B)  the location of the temporary emergency
(C)  the number of consecutive days the child has
been in temporary emergency supervision;
(D)  the number of times the child has been in
temporary emergency supervision while under the temporary or
permanent managing conservatorship of the department;
(E)  the reason the child was placed in temporary
(F)  if the child in temporary emergency
supervision refused a placement, whether the department or the
single source continuum contractor determined that the placement
(3)  the total cost of providing temporary emergency
(A)  direct supervision costs, including staff
hours dedicated to supervision calculated at the staff member's
hourly rate and overtime hours;
(B)  administrative costs related to temporary
emergency supervision, including time spent coordinating,
(C)  travel costs, including staff hours and
(D)  the cost of security personnel, including
SECTION 5.  Section 264.107(g), Family Code, is amended to
(g)  If the department or single source continuum contractor
is unable to find a safe and [an] appropriate placement for a child,
an employee of the department or contractor who has on file with the
department or contractor, as applicable, a background and criminal
history check may provide temporary emergency supervision [care]
for the child. The employee may not provide temporary emergency
supervision [care] under this subsection in the employee's
residence.  The department or contractor shall provide notice to
the court for a child placed in temporary emergency supervision
[care] under this subsection not later than the next business day
after the date the child is placed in temporary emergency
SECTION 6.  Section 264.1261(b), Family Code, is amended to
(b)  Appropriate department management personnel from a
child protective services region in which community-based care has
not been implemented, in collaboration with foster care providers,
faith-based organizations [entities], and child advocates in that
region, shall use data collected by the department on foster care
capacity needs and availability of each type of foster care and
kinship placement in the region to create a plan to address the
substitute care capacity needs in the region.  The plan must
identify both short-term and long-term goals and strategies for
addressing those capacity needs.
SECTION 7.  Section 264.152, Family Code, is amended by
amending Subdivision (2) and adding Subdivisions (5) and (6) to
(2)  "Case management" means the provision of case
management services to a child for whom the department has been
appointed temporary or permanent managing conservator or to the
child's family, a young adult in extended foster care, a relative or
kinship caregiver, or a child who has been placed in the catchment
area through the Interstate Compact on the Placement of Children,
(A)  caseworker visits with the child;
(B)  family and caregiver visits;
(C)  convening and conducting permanency planning
(D)  the development and revision of child and
family plans of service, including a permanency plan and goals for a
(E)  the coordination and monitoring of services
required by the child and the child's family or caregivers,
(i)  pre-adoption and post-adoption
(ii)  services for children in the
conservatorship of the department who must transition to
(iii)  services related to family
reunification, including services to support a monitored return;
(F)  the assumption of court-related duties
regarding the child, including:
(i)  providing any required notifications or
(iii)  attending judicial and permanency
hearings, trials, and mediations;
(iv)  complying with applicable court
(v)  ensuring the child is progressing
toward the goal of permanency within state and federally mandated
(G)  any other function or service that the
department determines necessary to allow a single source continuum
contractor to assume responsibility for case management.
(5)  "Faith-based organization" means a religious or
denominational institution or organization, including an
organization operated for religious, educational, or charitable
purposes and operated, supervised, or controlled, in whole or in
part, by or in connection with a religious organization.
(6)  "Family preservation service" means time-limited,
family-focused services, including services subject to the Family
First Prevention Services Act (Title VII, Div. E, Pub. L.
No. 115-123), family-based safety services, and services approved
under the Title IV-E state plan provided to the family of a child
(A)  a candidate for foster care to prevent or
eliminate the need to remove the child and to allow the child to
remain safely with the child's family;
(B)  a pregnant or parenting foster youth;
(C)  a member of a household that is subject to an
order rendered under Section 264.203; or
(D)  the subject of a monitored return under
SECTION 8.  Section 264.153, Family Code, is amended to read
Sec. 264.153.  COMMUNITY-BASED CARE IMPLEMENTATION PLAN.
(a)  The department shall develop and maintain a plan for
implementing community-based care.  The plan must:
(1)  describe the department's expectations, goals, and
approach to implementing community-based care;
(2)  include a timeline for implementing
community-based care throughout this state, any limitations
related to the implementation, and a progressive intervention plan
and a contingency plan to provide continuity of the delivery of
foster care services and services for relative and kinship
caregivers if a contract with a single source continuum contractor
(3)  delineate and define the case management roles and
responsibilities of the department and the department's
contractors and the duties, employees, and related funding that
will be transferred to the contractor by the department;
(4)  identify any training needs and include long-range
and continuous plans for training and cross-training staff,
including plans to train caseworkers using the standardized
curriculum created by the human trafficking prevention task force
under Section 402.035(d)(6), Government Code, as that section
(5)  include a plan for evaluating the costs and tasks
associated with each contract procurement, including the initial
and ongoing contract costs for the department and contractor;
(6)  include the department's contract monitoring
approach and a plan for evaluating the continuous performance of
each contractor and the community-based care system as a whole that
includes an [independent] evaluation of each contractor's
processes and fiscal and qualitative outcomes; and
(7)  include a report on transition issues resulting
from implementation of community-based care.
(b)  The department shall annually:
(1)  update the implementation plan developed under
this section and post the updated plan on the department's Internet
(2)  post on the department's Internet website the
progress the department has made toward its goals for implementing
community-based care, including:
(A)  performance measure data from each single
(B)  quality improvement plans and corrective
action plans for each contractor; and
(C)  any contractor responses to the plans
SECTION 9.  The heading to Section 264.154, Family Code, is
Sec. 264.154.  QUALIFICATIONS OF SINGLE SOURCE CONTINUUM
CONTRACTOR; SELECTION; PUBLICATION.
SECTION 10.  Section 264.154, Family Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d)  The department shall annually post on the department's
(1)  the list of single source continuum contractors
providing services under this subchapter; and
(2)  a description of each contractor's full corporate
structure, including divisions and subsidiaries.
(e)  A single source continuum contractor shall provide
information described by Subsection (d)(2) to the department.
SECTION 11.  The heading to Section 264.155, Family Code, is
Sec. 264.155.  [REQUIRED] CONTRACT PROVISIONS.
SECTION 12.  Section 264.155, Family Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
(a)  A contract with a single source continuum contractor to
provide community-based care services in a catchment area must
(1)  establish a timeline for the implementation of
community-based care in the catchment area, including a timeline
for implementing the following in an order determined by the
department based on community needs and contractor capacity:
(A)  family preservation services;
(B)  case management services for children,
families, and relative and kinship caregivers receiving services in
(C) [(B)]  family reunification support services
to be provided after a child receiving services from the contractor
is returned to the child's family;
(2)  establish conditions for the single source
continuum contractor's access to relevant department data and
require the participation of the contractor in the data access and
standards governance council created under Section 264.159;
(3)  require the single source continuum contractor to
create a single process for the training and use of alternative
caregivers for all child-placing agencies in the catchment area to
facilitate reciprocity of licenses for alternative caregivers
between agencies, including respite and overnight care providers,
as those terms are defined by department rule;
(4)  require the single source continuum contractor to
maintain a diverse network of service providers that offer a range
of foster capacity options and that can accommodate children from
(5)  require [allow] the department to conduct annual
[a] performance reviews [review] of the contractor beginning on the
first anniversary of the contract to:
(A)  [18 months after the contractor has begun
providing case management and family reunification support
services to all children and families in the catchment area and]
determine if the contractor has achieved applicable [any]
performance outcomes specified in the contract as determined by
services implemented at the time of the review, including:
(i)  the percentage of children reunified
with their families within 6 months, 12 months, 18 months, and 24
months or later, after the date a suit is filed by the department;
(ii)  the percentage of children who reenter
the conservatorship of the department within 6 months, 12 months,
or 36 months after the date the child leaves the conservatorship of
the department, disaggregated by case outcome and reason for
(iii)  the percentage of children who remain
in the conservatorship of the department until the age of majority,
including the percentage of children receiving extended foster care
(iv)  the number of placement moves per
1,000 days a child is in substitute care, disaggregated by
placement type and the number of days in each placement type;
(v)  the percentage of families completing
family preservation services within 3 months, 6 months, 9 months,
and 12 months, and after 12 months after the date a suit is filed by
the department, disaggregated by type of service;
(vi)  the percentage of children entering
the conservatorship of the department within 6 months, 12 months,
and 24 months of the date the child's family begins receiving family
preservation services, including the reason the department was
(vii)  the percentage of children entering
the conservatorship of the department within 6 months, 12 months,
24 months, and 48 months of the date the child's family completes
family preservation services, including the reason the department
was granted conservatorship; and
(viii)  the percentage of children residing
with one parent, with both parents, or in a shared custody
arrangement between parents on completion of family preservation
(B)  ensure service authorizations are based on
documented criteria and are not being used to negatively impact a
child's access to care by conducting utilization reviews on a
sample of cases at least biennially;
(C)  review the contractor's compliance with
requirements related to conflicts of interest and financial
(D)  assess the adequacy of the contractor's
provider network and service delivery system;
(6)  following the review under Subdivision (5),
require [allow] the department to:
(A)  publish the review on the department's
(B)  impose financial penalties on the contractor
for failing to meet applicable [any specified] performance outcomes
as determined by services implemented at the time of the review;
[(B)]  award financial incentives to the
contractor for exceeding applicable [any specified] performance
outcomes as determined by services implemented at the time of the
(D)  if deficiencies in the provision of services
are identified, impose a corrective action plan to address the
(i)  includes a timeline for addressing the
(ii)  provides for escalating interventions
if deficiencies are not addressed;
(7)  allow the department to implement formal measures
to ensure the contractor is delivering high-quality service,
including quality improvement plans, financial interventions, and
other appropriate interventions or restrictions;
(8)  except as provided by Subdivision (9), following
the review under Subdivision (5), transfer the provision of family
preservation services to the contractor only if:
(A)  the contractor is not subject to a corrective
action plan or other contract remedy for failure to meet applicable
(B)  the department determines that the
contractor has demonstrated sufficient capacity to provide family
(C)  an external review indicates the contractor
has adequate systems and processes in place to effectively provide
(9)  for a catchment area in which a contractor has not
implemented services before September 1, 2023, if family
preservation services are included in the initial service
(A)  an external review to ensure the contractor
has adequate systems and processes in place to effectively provide
(B)  the establishment of performance outcomes
specific to family preservation services; and
(C)  the achievement of the performance outcomes
as a condition of continued provision or expansion of family
(10) [(7)]  require the contractor to give preference
for employment to employees of the department:
(A)  whose position at the department is impacted
by the implementation of community-based care; and
(B)  who are considered by the department to be
(11) [(8)]  require the contractor to implement
[provide] preliminary and ongoing community engagement plans to
ensure communication and collaboration with local stakeholders in
the catchment area that include the establishment of a community
(B)  maintains, as the majority of the committee's
membership, members not employed by or contracted with the
(C)  includes representatives from[, including]
(i) [(A)] community faith-based
(iii) [(C)]  court-appointed special
(iv) [(D)]  child advocacy centers;
(vii) [(G)]  biological parents;
(viii) [(H)]  foster youth and former foster
(ix) [(I)]  relative or kinship caregivers;
(x) [(J)]  child welfare boards, if
(xi) [(K)]  attorneys ad litem;
(xii) [(L)]  attorneys that represent
parents involved in suits filed by the department; and
(xiii) [(M)]  any other stakeholders, as
(12)  require the department to include findings and
recommendations from the advisory committee established under
(A)  the annual performance review under
(B)  any corrective action plan under Subdivision
(C)  any other applicable quality improvement
(13) [(9)]  require that the contractor comply with any
applicable court order issued by a court of competent jurisdiction
in the case of a child for whom the contractor has assumed case
management responsibilities or an order imposing a requirement on
the department that relates to functions assumed by the contractor.
(a-1)  A contract with a single source continuum contractor
to provide community-based care services in a catchment area may
include provisions that require the contractor to develop a program
to recruit and retain foster parents from faith-based
organizations, including requirements for the contractor to:
(1)  collaborate with faith-based organizations to
inform prospective foster parents about:
(A)  the need for foster parents in the community;
(B)  the requirements for becoming a foster
(C)  any other aspect of the foster care program
that is necessary to recruit foster parents;
(2)  provide training for prospective foster parents;
(3)  identify and recommend ways in which faith-based
organizations may support persons as they are recruited, are
trained, and serve as foster parents.
SECTION 13.  Section 264.156(a), Family Code, is amended to
(a)  The department shall develop a formal review process to
assess the ability of a single source continuum contractor to
satisfy the responsibilities and administrative requirements of
delivering foster care services and services for relative and
kinship caregivers, including the contractor's ability to provide:
(1)  family preservation services;
(2)  case management services for children and
(3) [(2)]  evidence-based, promising practice, or
evidence-informed supports for children and families; and
(4) [(3)]  sufficient available capacity for inpatient
and outpatient services and supports for children at all service
levels who have previously been placed in the catchment area.
SECTION 14.  Sections 264.158(a) and (b), Family Code, are
(a)  In each initial catchment area where community-based
care has been implemented or a contract with a single source
continuum contractor has been executed before September 1, 2017,
the department shall transfer to the single source continuum
contractor providing foster care services in that area:
(1)  family preservation services;
(2)  the case management of children, relative and
kinship caregivers, and families receiving services from that
(3) [(2)]  family reunification support services to be
provided after a child receiving services from the contractor is
returned to the child's family for the period of time ordered by the
(b)  The commission shall include a provision in a contract
with a single source continuum contractor to provide foster care
services and services for relative and kinship caregivers in a
catchment area to which community-based care is expanded after
September 1, 2017, that requires the transfer to the contractor of
(1)  family preservation services;
(2)  the case management services for children,
relative and kinship caregivers, and families in the catchment area
where the contractor will be operating; and
(3) [(2)]  family reunification support services to be
provided after a child receiving services from the contractor is
returned to the child's family.
SECTION 15.  Section 264.162, Family Code, is amended to
Sec. 264.162.  REVIEW OF CONTRACTOR PERFORMANCE.  The
department shall develop a formal review process that includes a
monitoring schedule to evaluate a single source continuum
contractor's implementation of placement services and case
management services in a catchment area.  The department shall post
the monitoring schedule on the department's Internet website.
SECTION 16.  The heading to Section 264.2031, Family Code,
Sec. 264.2031.  SELECTION OF SERVICE PROVIDER;
SECTION 17.  Section 264.2031, Family Code, is amended by
amending Subsection (b) and adding Subsections (b-1) and (d) to
(b)  A [parent,] managing conservator, guardian, or other
member of a household who is not a parent and who obtains services
from a provider selected by the person is responsible for the cost
(b-1)  The department shall reimburse a service provider
selected by the parent under Subsection (a) who is not under
contract with the department in an amount equal to the average cost
for the specific service, including any virtual services, from
department contractors providing the service in the region where
(1)  adopt rules relating to the manner in which
providers are reimbursed for services provided under this section;
(2)  implement this section using existing resources;
(3)  prioritize payments to providers of in-home
support services under Section 264.2011.
SECTION 18.  Sections 264.113(a), (b), and (c), Family Code,
SECTION 19.  (a)  Section 263.0022, Family Code, as added by
this Act, applies to a placement review hearing of a child
regardless of the date on which the Department of Family and
Protective Services is named the child's managing conservator.
(b)  Sections 264.152, 264.155, 264.156(a), and 264.158(a)
and (b), Family Code, as amended by this Act, apply only to a
contract with a single source continuum contractor entered into on
or after the effective date of this Act.  A contract with a single
source continuum contractor entered into before the effective date
of this Act is governed by the law in effect on the date the contract
was entered into, and the former law is continued in effect for that
SECTION 20.  This Act takes effect September 1, 2025.