§ 264.155 — CONTRACT PROVISIONS.

Texas § 264.155

• Jurisdiction: Texas
• Code FA: Family Code

Text

Sec. 264.155. CONTRACT PROVISIONS.
Text of subsection as amended by Acts 2025, 89th Leg., R.S., Ch. 648 (H.B. 4129 ), Sec. 1
(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:
(A) case management services for children, families, and relative and kinship caregivers receiving services in the catchment area; and
(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) allow the department to conduct a performance review of the contractor beginning 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 any performance outcomes specified in the contract;
(6) following the review under Subdivision (5), allow the department to:
(A) impose financial penalties on the contractor for failing to meet any specified performance outcomes; or
(B) award financial incentives to the contractor for exceeding any specified performance outcomes;
(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;
(8) require the contractor to provide preliminary and ongoing community engagement plans to ensure communication and collaboration with local stakeholders in the catchment area, including any of the following:
(A) community faith-based entities;
(B) the judiciary;
(C) court-appointed special advocates;
(D) child advocacy centers;
(E) service providers;
(F) foster families;
(G) biological parents;
(H) foster youth and former foster youth;
(I) relative or kinship caregivers;
(J) child welfare boards, if applicable;
(K) attorneys ad litem;
(L) attorneys that represent parents involved in suits filed by the department; and
(M) any other stakeholders, as determined by the contractor;
(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; and
(10) require 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.
Text of subsection as amended by Acts 2025, 89th Leg., R.S., Ch. 825 (S.B. 1398 ), Sec. 12
(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 sequential plan for the implementation of community-based care in the catchment area, including a sequential plan for implementing the following in an order determined by the department based on community needs and readiness 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) 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 the department to conduct annual performance reviews of the contractor beginning on the first anniversary of the contract to:
(A) determine if the contractor has achieved applicable performance outcomes and other requirements specified in the contract as determined by services implemented at the time of the review, including data related to:
(i) the percentage of children reunified with their families after a suit is filed by the department;
(ii) the percentage of children who reenter the conservatorship of the department;
(iii) the percentage of children who remain in the conservatorship of the department until the age of majority;
(iv) the percentage of children who experience multiple placement moves while in substitute care; and
(v) the percentage of families completing family preservation services to mitigate findings of abuse or neglect;
(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 the department to:
(A) publish the review on the department's Internet website;
(B) impose financial remedies on the contractor for failing to:
(i) meet applicable performance outcomes, contract requirements, or deliverables, as determined by services implemented at the time of the review; or
(ii) follow applicable court orders relating to child welfare;
(C) award financial incentives to the contractor for exceeding applicable 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) require 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) require the adoption of a capitated funding methodology for the provision of all services not later than the third anniversary of the date the contract is executed;
(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) 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) require the contractor to implement 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 any of the following:
(i) community faith-based organizations;
(ii) the judiciary;
(iii) court-appointed special advocates;
(iv) child advocacy centers;
(v) service providers;
(vi) foster families;
(vii) biological parents;
(viii) foster youth and former foster youth;
(ix) relative or kinship caregivers;
(x) child welfare boards, if applicable;
(xi) attorneys ad litem;
(xii) attorneys that represent parents involved in suits filed by the department; and
(xiii) 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) 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.
Text of subsection as amended by Acts 2025, 89th Leg., R.S., Ch. 844 (S.B. 1589 ), Sec. 1
(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:
(A) case management services for children, families, and relative and kinship caregivers receiving services in the catchment area; and
(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) allow the department to conduct a performance review of the contractor beginning 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 any performance outcomes specified in the contract;
(6) following the review under Subdivision (5), allow the department to:
(A) impose financial penalties on the contractor for failing to meet any specified performance outcomes; or
(B) award financial incentives to the contractor for exceeding any specified performance outcomes;
(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;
(8) require the contractor to provide preliminary and ongoing community engagement plans to ensure communication and collaboration with local stakeholders in the catchment area, including any of the following:
(A) community faith-based entities;
(B) the judiciary;
(C) court-appointed special advocates;
(D) child advocacy centers;
(E) service providers;
(F) foster families;
(G) biological parents;
(H) foster youth and former foster youth;
(I) relative or kinship caregivers;
(J) child welfare boards, if applicable;
(K) attorneys ad litem;
(L) attorneys that represent parents involved in suits filed by the department; and
(M) any other stakeholders, as determined by the contractor;
(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; and
(10) allow the department, at the department's sole discretion, to:
(A) reclaim the case management authority over any or all of the cases in a catchment area from the single source continuum contractor; or
(B) transfer the case management authority over any or all of the cases in a catchment area from the single source continuum contractor to another single source continuum 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.
(b) A contract with a single source continuum contractor under this subchapter must be consistent with the requirements of applicable law and may only include terms authorized by the laws or rules of this state.
(c) In regions identified for implementing community-based care and in regions where community-based care has been implemented, a contractor may apply to the department for a waiver from any statutory and regulatory requirement to increase innovation and flexibility for achieving contractual performance outcomes.

Legislative History

Added by Acts 2017, 85th Leg., R.S., Ch. 319 (S.B. 11 ), Sec. 18(a), eff. September 1, 2017. Amended by: Acts 2021, 87th Leg., R.S., Ch. 621 (S.B. 1896 ), Sec. 8, eff. June 14, 2021. Acts 2025, 89th Leg., R.S., Ch. 648 (H.B. 4129 ), Sec. 1, eff. September 1, 2025. Acts 2025, 89th Leg., R.S., Ch. 825 (S.B. 1398 ), Sec. 11, eff. September 1, 2025. Acts 2025, 89th Leg., R.S., Ch. 825 (S.B. 1398 ), Sec. 12, eff. September 1, 2025. Acts 2025, 89th Leg., R.S., Ch. 844 (S.B. 1589 ), Sec. 1, eff. September 1, 2025.