Monitoring the Session

SB 1398

Kolkhorst Bill Hands Family Preservation To Foster Care Contractors

Became law, effective Sep 1, 2025

Verdict: No flags

No flagsInitial review
Sen. Lois KolkhorstRSenate 18

Initial review · graded Oct 22, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

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.

Caption from analyzed text · version H.

Summary

Judges see every failed placement before kids sleep in offices. Contractors face yearly reviews and money penalties.

The bill tightens the rules for kids in state foster custody who have no placement and end up sleeping in offices under staff watch, and it hands more family services to the private contractors who run community-based foster care. It touches the Department of Family and Protective Services, its regional single source continuum contractors, courts, and families getting help meant to keep kids out of foster care. On the ground, judges get a report on every failed placement attempt before ordering this emergency supervision, contractors face required yearly reviews, money penalties and public posting of their results and corporate structure, and family preservation services move to the contractors.

Receipt

The receipt

89R-SB1398 · 2025-02-19

SOLD BY

+ 1 coauthor

ITEM

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.

WHAT IT DOES

Judges see every failed placement before kids sleep in offices. Contractors face yearly reviews and money penalties.

The bill tightens the rules for kids in state foster custody who have no placement and end up sleeping in offices under staff watch, and it hands more family services to the private contractors who run community-based foster care. It touches the Department of Family and Protective Services, its regional single source continuum contractors, courts, and families getting help meant to keep kids out of foster care. On the ground, judges get a report on every failed placement attempt before ordering this emergency supervision, contractors face required yearly reviews, money penalties and public posting of their results and corporate structure, and family preservation services move to the contractors.

CHARGES

[ ] NONE FOUND

TOTAL

Net to General Revenue · FY 2026($8,984)

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

Sources

Fiscal note · version F · May 24, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for SB1398, As Passed 2nd House: a negative impact of ($454,080) through the biennium ending August 31, 2027. The fiscal implications of any additional technology costs cannot be determined until the conclusion of the results from the capitated funding model.

First year · FY 2026 · ($8,984)

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. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Health & Human Services
  5. Scheduled for public hearing on . . .
  6. Considered in public hearing
  7. Testimony taken in committee
  8. Left pending in committee
  9. Considered in public hearing
  10. Vote taken in committee
  11. Reported favorably as substituted
  12. Committee report printed and distributed
  13. Placed on intent calendar
  14. Not again placed on intent calendar
  15. Placed on intent calendar
  16. Co-author authorized
  17. Rules suspended-Regular order of business
  18. Read 2nd time & passed to engrossment
  19. Vote recorded in Journal
  20. Three day rule suspended
  21. Record vote
  22. Read 3rd time
  23. Passed
  24. Record vote
  25. Reported engrossed
  26. Received from the Senate
  27. Read first time
  28. Referred to Human Services
  29. Scheduled for public hearing on . . .
  30. Considered in public hearing
  31. Testimony taken/registration(s) recorded in committee
  32. Left pending in committee
  33. Considered in formal meeting
  34. Reported favorably w/o amendment(s)
  35. Comte report filed with Committee Coordinator
  36. Committee report distributed
  37. Committee report sent to Calendars
  38. Considered in Calendars
  39. Placed on General State Calendar
  40. Read 2nd time
  41. Amended 1-Noble
  42. Record vote RV#3395
  43. Statement(s) of vote recorded in Journal
  44. Passed to 3rd reading as amended
  45. Record vote RV#3396
  46. Statement(s) of vote recorded in Journal
  47. Read 3rd time
  48. Passed
  49. Record vote RV#3455
  50. Statement(s) of vote recorded in Journal
  51. House passage as amended reported
  52. House amendment(s) laid before the Senate
  53. Read
  54. Senate concurs in House amendment(s)
  55. Record vote
  56. Reported enrolled
  57. Senate concurs in House amendment(s)-reported
  58. Signed in the Senate
  59. Signed in the House
  60. Sent to the Governor
  61. Signed by the Governor
  62. Effective on 9/1/25
FILED UNDER

TAXPAYER-FUNDED NGOS

THE TEXT

…“the department shall transfer to the single source continuum contractor providing foster care services in that area:”

Bill text, House committee report version (H)

The bill moves family preservation services, along with case management, from the state agency to private regional contractors paid with state money.

SIGNED FOR BY

House · 133 yea · 0 nay

Senate · 31 yea · 0 nay

Sources

House: Final passage · May 24, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · Apr 22, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

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 · Jul 11, 2024 to Oct 23, 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.

Texans for Lawsuit Reform PAC$60,000.00

Texans for Lawsuit Reform PAC

$60,000.00

Cash
$60,000.00
Paid by others
$0.00
Total
$60,000.00

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 · Nov 19, 2024 to Oct 23, 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: 101007416, 101012417, 101070754.

Border Health PAC$35,000.00

Border Health PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 17 other sitting lawmakers.

Derived recipient stock · Oct 28, 2024 to Aug 26, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Dec 6, 2024. 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: 101012417.

SRR Ranches, LLC$30,000.00

SRR Ranches, LLC

$30,000.00

Cash
$30,000.00
Paid by others
$0.00
Total
$30,000.00

Also funds 3 other sitting lawmakers.

Derived recipient stock · Oct 23, 2024 to Oct 8, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Oct 23, 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: 101012417, 101070754.

Money

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

×

Texans for Lawsuit Reform PAC

$60,000.00

Cash
$60,000.00
Paid by others
$0.00
Total
$60,000.00

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 · Nov 19, 2024 to Oct 23, 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: 101007416, 101012417, 101070754.

×

Border Health PAC

$35,000.00

Cash
$35,000.00
Paid by others
$0.00
Total
$35,000.00

Also funds 17 other sitting lawmakers.

Derived recipient stock · Oct 28, 2024 to Aug 26, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Dec 6, 2024. 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: 101012417.

×

SRR Ranches, LLC

$30,000.00

Cash
$30,000.00
Paid by others
$0.00
Total
$30,000.00

Also funds 3 other sitting lawmakers.

Derived recipient stock · Oct 23, 2024 to Oct 8, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Oct 23, 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: 101012417, 101070754.

Votes7

Senate May 28, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator Kolkhorst moved to concur in the House amendment to SB 1398. The motion prevailed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House May 24, 2025

Yea
133
Nay
0
Present, not voting
2
Absent
6
Excused
9
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3455

SB 1398 was passed by (Record 3455): 133 Yeas, 0 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 133 (published)
  • Nay: 0 (published)
  • Present, not voting: 2 (published)
  • Absent: 6 (derived from named list)
  • Excused: 9 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 23, 2025

Yea
137
Nay
0
Present, not voting
1
Absent
5
Excused
7
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3396

SB 1398, as amended, was passed to third reading by (Record 3396): 137 Yeas, 0 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 137 (published)
  • Nay: 0 (published)
  • Present, not voting: 1 (published)
  • Absent: 5 (derived from named list)
  • Excused: 7 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 23, 2025

Yea
132
Nay
0
Present, not voting
2
Absent
9
Excused
7
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3395

Amendment No. 1 was adopted by (Record 3395): 132 Yeas, 0 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 132 (published)
  • Nay: 0 (published)
  • Present, not voting: 2 (published)
  • Absent: 9 (derived from named list)
  • Excused: 7 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate Apr 22, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator Kolkhorst moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSB 1398 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0. The bill was read third time and was passed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 22, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator Kolkhorst moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSB 1398 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 22, 2025

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

The bill was read second time and was passed to engrossment by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Witnesses20
For
17
Against
2
On
1
Names

For

  • Arrow Child and Family Ministries1 registration
  • Buckner International1 registration
  • East Texas CASA1 registration
  • Parent Guidance Center1 registration
  • Self; Buckner International1 registration
  • Self; One Accord for Kids1 registration
  • Self; Texas Association of Family Defense Attorneys - TAFDA1 registration
  • Texans Care for Children2 registrations
  • Texas Alliance of Child and Family Services (TACFS)2 registrations
  • Texas CASA2 registrations
  • Texas Family Initiative1 registration
  • Texas Network of youth Services1 registration
  • TexProtects1 registration
  • TFI1 registration

Against

  • Self2 registrations

On

  • Self1 registration
Sources

20 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.

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

Fiscal
Net to General Revenue · FY 2026($8,984)

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

Sources

Fiscal note · version F · May 24, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for SB1398, As Passed 2nd House: a negative impact of ($454,080) through the biennium ending August 31, 2027. The fiscal implications of any additional technology costs cannot be determined until the conclusion of the results from the capitated funding model.

First year · FY 2026 · ($8,984)

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 Senate · Filed Feb 19, 2025

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · Senate Committee Report · Engrossed · House Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors
Sponsors

House committee · Human Services · Committee vote 10 aye, 0 nay, 1 absent · Out of committee

Senate committee · Health & Human Services · Committee vote 9 aye, 0 nay · Out of committee

Subjects

Family--Child Protection

Family--Parent & Child

Purchasing--State

Religion

ADOPTION

CONSERVATORSHIP

CONTRACTORS & SUBCONTRACTORS

FOSTER CARE

INTERNET

FAMILY & PROTECTIVE SERVICES, DEPARTMENT OF

Text

The text as introduced · 4,055 words

89R6076 AMF-D

By: Kolkhorst
S.B. No. 1398

A BILL TO BE ENTITLED

AN ACT

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

read as follows:

(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 263.403 .

SECTION 2. The heading to Section 262.411, Family Code, is

amended to read as follows:

Sec. 262.411. SELECTION OF SERVICE PROVIDER ;

REIMBURSEMENT .

SECTION 3. Section 262.411, Family Code, is amended by

amending Subsection (c) and adding Subsections (c-1) and (c-2) to

read as follows:

(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

the parent resides.

(c-2) The department shall:

(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;

and

(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,

including:

(1) the type of placement;

(2) the location of the placement;

(3) the date the department or the contractor

contacted the placement; and

(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

emergency supervision;

(2) for each child in temporary emergency supervision:

(A) the child's:

(i) age, sex, race, and ethnicity; and

(ii) foster care service level;

(B) the location of the temporary emergency

supervision;

(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

emergency supervision; and

(F) if the child in temporary emergency

supervision refused a placement, whether the department or the

single source continuum contractor determined that the placement

was safe and appropriate; and

(3) the total cost of providing temporary emergency

supervision, including:

(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,

documenting, and reporting;

(C) travel costs, including staff hours and

mileage reimbursement;

(D) the cost of security personnel, including

off-duty law enforcement; and

(E) facility or room costs.

SECTION 5. Section 264.107(g), Family Code, is amended to

read as follows:

(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

supervision [ care ].

SECTION 6. Section 264.1261(b), Family Code, is amended to

read as follows:

(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

read as follows:

(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,

and includes:

(A) caseworker visits with the child;

(B) family and caregiver visits;

(C) convening and conducting permanency planning

meetings;

(D) the development and revision of child and

family plans of service, including a permanency plan and goals for a

child or young adult in care;

(E) the coordination and monitoring of services

required by the child and the child's family or caregivers,

including:

(i) pre-adoption and post-adoption

assistance;

(ii) services for children in the

conservatorship of the department who must transition to

independent living ; and

(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

consultations;

(ii) preparing court reports;

(iii) attending judicial and permanency

hearings, trials, and mediations;

(iv) complying with applicable court

orders; and

(v) ensuring the child is progressing

toward the goal of permanency within state and federally mandated

guidelines; and

(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

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;

(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 263.403.

SECTION 8. Section 264.153, Family Code, is amended to read

as follows:

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

ends prematurely;

(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

existed on August 31, 2017;

(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

website; and

(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

source continuum contractor;

(B) quality improvement plans and corrective

action plans for each contractor; and

(C) any contractor responses to the plans

described by Paragraph (B) .

SECTION 9. The heading to Section 264.154, Family Code, is

amended to read as follows:

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

Internet website:

(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

amended to read as follows:

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

follows:

(a) A contract with a single source continuum contractor to

provide community-based care services in a catchment area must

include provisions that:

(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

the catchment area; and

(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

diverse cultural backgrounds;

(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

reentry;

(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

services;

(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

granted conservatorship;

(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

services ;

(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

disclosures; and

(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

Internet website;

(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 ;

(C) [ or

[ (B) ] award financial incentives to the

contractor for exceeding applicable [ any specified ] performance

outcomes as determined by services implemented at the time of the

review ; and

(D) if deficiencies in the provision of services

are identified, impose a corrective action plan to address the

deficiencies that:

(i) includes a timeline for addressing the

deficiencies; and

(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

performance outcomes;

(B) the department determines that the

contractor has demonstrated sufficient capacity to provide family

preservation services; and

(C) an external review indicates the contractor

has adequate systems and processes in place to effectively provide

family preservation services;

(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

implementation, require:

(A) an external review to ensure the contractor

has adequate systems and processes in place to effectively provide

family preservation services;

(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

preservation services;

(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

employees in good standing;

(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

advisory committee that:

(A) meets at least quarterly;

(B) maintains, as the majority of the committee's

membership, members not employed by or contracted with the

contractor; and

(C) includes representatives from [ , including ]

any of the following:

(i) [ (A) ] community faith-based

organizations [ entities ];

(ii) [ (B) ] the judiciary;

(iii) [ (C) ] court-appointed special

advocates;

(iv) [ (D) ] child advocacy centers;

(v) [ (E) ] service providers;

(vi) [ (F) ] foster families;

(vii) [ (G) ] biological parents;

(viii) [ (H) ] foster youth and former foster

youth;

(ix) [ (I) ] relative or kinship caregivers;

(x) [ (J) ] child welfare boards, if

applicable;

(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

determined by the contractor;

(12) require the department to include findings and

recommendations from the advisory committee established under

Subdivision (11) in:

(A) the annual performance review under

Subdivision (5);

(B) any corrective action plan under Subdivision

(6)(D); and

(C) any other applicable quality improvement

measures; and

(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

parent; and

(C) any other aspect of the foster care program

that is necessary to recruit foster parents;

(2) provide training for prospective foster parents;

and

(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

read as follows:

(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

families;

(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

amended to read as follows:

(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

contractor; 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 for the period of time ordered by the

court.

(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

the provision 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

read as follows:

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,

is amended to read as follows:

Sec. 264.2031. SELECTION OF SERVICE PROVIDER ;

REIMBURSEMENT .

SECTION 17. Section 264.2031, Family Code, is amended by

amending Subsection (b) and adding Subsections (b-1) and (d) to

read as follows:

(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

of those services.

(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

the parent resides.

(d) The department shall:

(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;

and

(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,

are repealed.

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

purpose.

SECTION 20. This Act takes effect September 1, 2025.