SB 513

Overall Vote Recommendation
Yes
Principle Criteria
positive
Free Enterprise
neutral
Property Rights
positive
Personal Responsibility
positive
Limited Government
positive
Individual Liberty
Digest

SB 513 seeks to establish a Rural Community-Based Care Pilot Program within the Texas Family Code. The initiative addresses persistent gaps in the delivery of child welfare services in rural areas where the state’s existing community-based care (CBC) model has failed to take root due to a lack of provider interest or capacity. The pilot program will be implemented in “eligible rural regions”—specifically defined as areas where at least two-thirds of counties have populations of 50,000 or fewer and where the Texas Department of Family and Protective Services (DFPS) previously received no bids to provide CBC under the existing Subchapter B-1 framework.

The bill directs DFPS to partner with a “lead entity,” which may be either a nonprofit organization with a board composed entirely of local residents or a local governmental body. This lead entity would assume responsibility for coordinating and delivering child welfare services in its designated region. SB 513 outlines several objectives for the pilot program, including increasing community engagement in the child welfare system, expanding access to services, and developing a replicable model that can be scaled to other rural regions.

Ultimately, SB 513 represents a policy innovation designed to tailor child welfare services to the unique needs of rural Texas. By shifting responsibility from centralized state agencies to community-rooted organizations, the bill aims to enhance service quality, accountability, and sustainability in areas that have long been underserved. The pilot’s performance could serve as a template for future expansion and a broader shift toward localized child welfare governance.

The Committee Substitute for SB 513 represents a significant simplification of the originally filed version while preserving its fundamental aim—establishing a rural community-based care pilot program in underserved Texas regions. The original version laid out an expansive, highly structured policy framework encompassing detailed service requirements, a funding formula, stakeholder governance structures, and mechanisms for oversight and evaluation. In contrast, the substitute version reduces the legislative footprint of the bill, focusing on broader objectives and deferring much of the program’s structure to agency discretion and implementation.

One of the most notable changes is the removal of specific implementation details. The original bill included mandates for a capitated funding model, an integrated electronic management system, formal workforce development plans, and independent evaluation procedures. These were designed to ensure rural providers could overcome geographic and operational challenges and to hold the program accountable for outcomes. The substitute omits these elements, instead entrusting DFPS and selected lead entities with greater flexibility to shape the program based on local context.

Furthermore, the Committee Substitute eliminates provisions for conflict resolution processes, formal change order requirements, and the ability to request statutory waivers. It also removes the original sunset provision and legislative review requirement, signaling a possible intention to allow the pilot to evolve without a predetermined end date or formal legislative reassessment. Overall, the Committee Substitute scales back the regulatory architecture of the bill, opting for a more flexible and administratively manageable model, albeit with reduced built-in accountability and fewer statutory safeguards.

Author (1)
Kevin Sparks
Co-Author (3)
Cesar Blanco
Juan Hinojosa
Charles Perry
Sponsor (1)
Tom Craddick
Fiscal Notes

The fiscal implications of SB 513, as outlined in the Legislative Budget Board's fiscal note, suggest a projected negative impact of approximately $4.14 million to the General Revenue Fund over the 2026–2027 biennium. These costs are primarily associated with planning and evaluation rather than full-scale implementation of the pilot program itself. Specifically, the Department of Family and Protective Services (DFPS) is expected to incur expenses in fiscal year 2026 ($2,056,348) and fiscal year 2027 ($2,086,708) to contract with a third-party evaluator. This evaluator will assist in developing the pilot program, analyzing the feasibility of a capitated funding model, and assessing the potential for an integrated electronic case management system.

The bill requires DFPS to submit a report by January 1, 2027, outlining the model for the pilot program. However, the actual implementation of the pilot is contingent upon sufficient funding being available after this report is submitted. Because of this contingency, the fiscal analysis does not include implementation costs for the pilot program itself, as these will depend on future legislative or budgetary action and the findings of the third-party evaluation.

Additionally, while the bill anticipates coordination with the Health and Human Services Commission (HHSC), any associated costs for HHSC are expected to be absorbed within existing appropriations. There is also no significant fiscal implication anticipated for local government units. In essence, SB 513 initiates a planning and analysis phase with known costs but leaves the larger fiscal impact of program rollout undetermined, pending further legislative review and funding decisions.

Vote Recommendation Notes

SB 513 reflects a targeted and thoughtful legislative response to persistent challenges in delivering child welfare services in rural Texas. The bill is rooted in the recognition that the existing community-based care (CBC) model has struggled to take hold in less-populated regions, largely due to the system’s inflexibility and centralized design. By shifting toward a locally-led, distributed model, SB 513 aims to transform service delivery in these underserved areas through increased community engagement, flexible funding mechanisms, and innovative care coordination.

The pilot program established under SB 513 is deliberately structured to empower local nonprofit organizations or government entities to serve as lead agencies, coordinating services through a regional network. This decentralization enhances Individual Liberty and Limited Government by moving child welfare functions closer to the communities they serve. At the same time, the bill incorporates essential safeguards and oversight mechanisms—such as independent evaluations, waiver flexibility, annual legislative reporting, and a built-in sunset review in 2031—that promote Personal Responsibility and program accountability.

Though the bill carries a projected short-term cost of approximately $4.1 million over the 2026–2027 biennium, these expenditures are directed solely toward planning, evaluation, and feasibility assessment—not full implementation. This measured fiscal approach reduces financial risk while ensuring that any future investment is based on sound data and operational insights. The bill’s emphasis on outcome-based funding, stakeholder collaboration, and rural workforce development also aligns with Free Enterprise and Private Property Rights principles by supporting voluntary partnerships and incentivizing innovation without expanding state bureaucracy.

In sum, SB 513 offers a balanced, liberty-forward framework that corrects past shortcomings in rural child welfare implementation. It achieves this through community empowerment, limited but strategic public investment, and strong accountability measures—As such, Texas Policy Research recommends that lawmakers vote YES on SB 513.

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