Monitoring the Session

HB 1536

Craddick’s Rural Foster Care Pilot Runs Only If Funded

Companion SB 513 became law

Verdict: Smells

SmellsNeeds review
Rep. Tom CraddickRHouse 82
Why it's charged
Study, task force, commission, report

THE TEXT

“The department shall implement the pilot program only if the pilot program is sufficiently funded.”

Bill text, House committee report version (H)

The firm early duty is to design a model and report to the legislature by January 1, 2027. Actually running the pilot waits on funding the bill does not provide.

Study, task force, commission, report

Needs review · Nov 1, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to a rural community-based care pilot program.

Caption from analyzed text · version H.

Summary

Report due January 2027. The pilot itself waits on funding the bill doesn’t provide.

The bill tells the state child welfare department to set up a pilot program that hands foster care and family services in one rural region to a local nonprofit or local government acting as the lead entity. It reaches rural areas where no one bid to run community-based care, along with the families, children and service providers there, a new community stakeholder group, and a paid outside evaluator. The lead entity gets contracts, funding flexibility and the right to seek waivers from department rules, but the department must first design the model and report by January 2027, will run the pilot only if it is funded, and the law expires September 1, 2031.

Receipt

The receipt

89R-HB1536 · 2024-12-06

SOLD BY

ITEM

relating to a rural community-based care pilot program.

WHAT IT DOES

Report due January 2027. The pilot itself waits on funding the bill doesn’t provide.

The bill tells the state child welfare department to set up a pilot program that hands foster care and family services in one rural region to a local nonprofit or local government acting as the lead entity. It reaches rural areas where no one bid to run community-based care, along with the families, children and service providers there, a new community stakeholder group, and a paid outside evaluator. The lead entity gets contracts, funding flexibility and the right to seek waivers from department rules, but the department must first design the model and report by January 2027, will run the pilot only if it is funded, and the law expires September 1, 2031.

CHARGES

[x] STUDY, TASK FORCE, COMMISSION, REPORTanalysis confidence 40%

THE TEXT

“The department shall implement the pilot program only if the pilot program is sufficiently funded.”

Bill text, House committee report version (H)

The firm early duty is to design a model and report to the legislature by January 1, 2027. Actually running the pilot waits on funding the bill does not provide.

TOTAL

Net to General Revenue · FY 2026($2,056,348)

LBB estimate, flow · fiscal note version H · ( ) = negative · source

Sources

Fiscal note · version H · March 25, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB1536, Committee Report 1st House, Substituted: a negative impact of ($4,143,056) through the biennium ending August 31, 2027. This analysis cannot determine the cost related to the implementation of the pilot program due to the timing of the report and the uncertainty of the costs that could be identified in the third-party evaluation.

First year · FY 2026 · ($2,056,348)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Human Services
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Testimony taken/registration(s) recorded in committee
  7. Left pending in committee
  8. Considered in public hearing
  9. Committee substitute considered in committee
  10. Reported favorably as substituted
  11. Comte report filed with Committee Coordinator
  12. Committee report distributed
  13. Committee report sent to Calendars
  14. Considered in Calendars
  15. Considered in Calendars
  16. Placed on General State Calendar
  17. Companion considered in lieu of SB 513
  18. Laid on the table subject to call
FILED UNDER

TAXPAYER-FUNDED NGOS

THE TEXT

“a nonprofit entity that has a board of directors composed entirely of residents of the catchment area; or”…

Bill text, House committee report version (H)

The bill lets the state route child welfare money and case management through a contracted local nonprofit as the lead entity.

GOVERNMENT GROWTH UNDER A CONSERVATIVE BANNER

THE TEXT

“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.”

Bill text, House committee report version (H)

The bill requires a paid outside evaluation contract for the pilot.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 29, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Associated General Contractors of Texas PAC$100,500.00

Associated General Contractors of Texas PAC

$100,500.00

Cash
$100,500.00
Paid by others
$0.00
Total
$100,500.00

Also funds 120 other sitting lawmakers.

Derived recipient stock · Jul 19, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 18, 2025 to May 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028957, 101058926.

Texans for Lawsuit Reform PAC$70,000.00

Texans for Lawsuit Reform PAC

$70,000.00

Cash
$70,000.00
Paid by others
$0.00
Total
$70,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 29, 2024 to Oct 1, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986335, 101009831, 101028957, 101071728.

John R. Weisman$30,000.00
Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Associated General Contractors of Texas PAC

$100,500.00

Cash
$100,500.00
Paid by others
$0.00
Total
$100,500.00

Also funds 120 other sitting lawmakers.

Derived recipient stock · Jul 19, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Sep 18, 2025 to May 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028957, 101058926.

×

Texans for Lawsuit Reform PAC

$70,000.00

Cash
$70,000.00
Paid by others
$0.00
Total
$70,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 29, 2024 to Oct 1, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100986335, 101009831, 101028957, 101071728.

Votes

No floor vote loaded for this bill.

Witnesses17
For
16
Against
0
On
1
Names

For

  • AARP Texas1 registration
  • Buckner International1 registration
  • Children at Risk1 registration
  • Self; Addy’s Hope Social Services1 registration
  • Self; CASA of West Texas1 registration
  • Self; One Accord for Kids1 registration
  • Self; Students Engaged in Advancing Texas1 registration
  • Self; West tx together1 registration
  • Texans care for children1 registration
  • Texas CASA1 registration
  • Texas Medical Association1 registration
  • Texas Network of Youth Services1 registration
  • Texas Pediatric Society1 registration
  • Texas Public Policy Foundation1 registration
  • TexProtects1 registration
  • The Texas Catholic Conference of Bishops1 registration

On

  • DFPS Resource Witness1 registration
Sources

17 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal
Net to General Revenue · FY 2026($2,056,348)

LBB estimate, flow · fiscal note version H · ( ) = negative · source

Sources

Fiscal note · version H · March 25, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB1536, Committee Report 1st House, Substituted: a negative impact of ($4,143,056) through the biennium ending August 31, 2027. This analysis cannot determine the cost related to the implementation of the pilot program due to the timing of the report and the uncertainty of the costs that could be identified in the third-party evaluation.

First year · FY 2026 · ($2,056,348)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version H by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Dec 6, 2024

04/28/2025 H Laid on the table subject to call

Texas Legislature Online · Introduced · House Committee Report

Data snapshot Nov 1, 2026 at 1:40 PM CST. Grades, charges, quotes and corrections follow the published record.

House committee · Human Services · Committee vote 11 aye, 0 nay · Out of committee

Companion

SB 513 by Sparks (identical)

Subjects

Electronic Information Systems

Family--Child Protection

Human Services--Child Services

Labor--Workforce Development--Rural

State Finances--Management & Control

ADOPTION

FOSTER CARE

RURAL

FAMILY & PROTECTIVE SERVICES, DEPARTMENT OF

Text

The text as introduced · 1,977 words

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.