1. SB-11 Implementation
All residential contracts will be updated to comply with SB-11 effective September 1st, 2018.
A grace period will exist where DFPS will collect data, but no incentives, remedies or liquidated damages will be incurred from September 1st, 2018 to December 31, 2018.
75% of remedies and damages collected during a fiscal year will be distributed as Incentives. The remaining 25% will be held into the next fiscal year to be used to repay any fees collected for remedies and/or damages that were subsequently overturned and must be refunded to the contractor.
DFPS will limit remedies and damages to an annual amount of 10% of total contract utilization.

2. SB11 - Section 30
SECTION 30. (a) Subchapter C, Chapter 42, Human Resources Code, is amended by adding Section to read as follows: Sec HEALTH SCREENING REQUIREMENTS FOR CHILD PLACED WITH CHILD-PLACING AGENCY. (a) A child-placing agency or general residential operation that contracts with the department to provide services must ensure that the children that are in the managing conservatorship of the department and are placed with the child-placing agency or general residential operation receive a complete early and periodic screening, diagnosis, and treatment checkup in accordance with the requirements specified in the contract between the child- placing agency or general residential operation and the department. (b) The commission shall include a provision in a contract with a child-placing agency or general residential operation specifying progressive monetary penalties for the child-placing agency's or general residential operation's failure to comply with Subsection (a).

3. RCC Schedule of Liquidated Damages
Progressive Monetary Damages for EPSDT
As part of the required progressive monetary penalties, those instances of non-compliance reported by the contractor will be assessed a liquidated damage of $100 per instance. Instances of non-compliance found by the RCC monitors (from the pool that the Contractor asserted had received their EPSDT) will be assessed at $150 per instance.
Trauma Informed Based Care Training
$500 per instance of non-compliance
EBI Training
Licensing Background Checks

4. EPSDT Process
RCC will compile a report of the population (e.g. – list of children who are: (1) in conservatorship for 90 days or less AND (2) have been placed with the contractor for at least 30 days) and send this list to providers with a request that the provider identify those children who have and have not received an EPSDT checkup. For those children the Contractor reports have received an EPSDT checkup, the provider will be asked to provide verifiable documentation of the check for a sample of children to be validated by the contract manager.

5. Background Check, TIC, & EBI Process
Quarterly process that applies to all Providers based on minimum standards and contract requirements.
RCC will send a report to Contractors of people who received a background check. Contractor will review their list for completeness and to identify which individuals required TIC and EBI training. RCC will then conduct a desk review by sampling the applicable identified population and validating compliance based on documentation supplied by the contractor.

6. SB11 – Section 27
SECTION 27. (a) Section (f), Human Resources Code, is amended to read as follows:
(f) A contract for residential child-care services provided by a general residential operation or by a child-placing agency must include provisions that:
(1) enable the department and commission to monitor the effectiveness of the services;
(2) specify performance outcomes, financial penalties for failing to meet any specified performance outcomes, and financial incentives for exceeding any specified performance outcomes;
(3) authorize the department or commission to terminate the contract or impose monetary sanctions for a violation of a provision of the contract that specifies performance criteria or for underperformance in meeting any specified performance outcomes;

7. Contract Performance Remedy: Safe In Care
Each quarter, RCC will notify the Contractor of their ongoing standing. At the end of the fiscal year , RCC will collect remedies equivalent to the percentage of total contract utilization of DFPS of kids not kept safe in care (e.g. – For a provider with a 97.5% performance measure, DFPS would recoup 2.5% of total payments from the Contractor). DFPS will exclude the minimum pass through from the pool of remedy funds.

8. Safe In Care Process
RCC will provide a listing of the children/youth not kept safe in care to the Contractor.
Penalties will be assessed based upon date of RTB issuance.
If all RTB dispositions associated with the child/youth not kept safe in care are overturned through the administrative review process, DFPS will reimburse the Contractor any fees collected.

9. Contract Performance Incentive: PAL
This is an annual process. DFPS will provide financial incentives in instances where Contractor exceeds the target for PAL Life Skills Training completion for GROs and CPAs and the baseline of TBD for IPTP. If Contractor exceeds the baseline, RCC will pull a report of the youth in contractor’s care that completed PAL Life Skills during the reporting period and provide a per youth incentive to the Contractor.
DFPS will provide an incentive payment per youth trained during the fiscal year up to a capped amount to contractors who meet or exceed the performance measure target.

10. Contract Performance Incentive: Treatment Foster Care
DFPS will provide financial incentives in instances where Contractor meets or exceeds the baseline for Performance Measure Outcome #2a (Percentage of children who have entered a less restrictive placement during their initial transition from treatment foster care.) AND 2b (The percentage of children who have not entered a more restrictive environment for a period of 6 months after their initial transition from treatment foster care).

11. TFC Incentive Process
DFPS will disperse incentives based on the percentage of the total number of TFC children in their care. (e.g. – if a contractor had 30% of TFC children/youth in their care for a state fiscal year, and met or exceeded both relevant performance measures, they would receive 30% of the total available TFC incentives for that fiscal year)

12. Future Incentives
The Agency plans to look at placement stability and permanency for future incentives once processes are in place which allow for it.

13. SB-11 Future Communication
CARP meeting in October.
An will be sent from the RCC mailbox to all providers in August notifying you of the contract language reflecting the SB11 requirements.
RCC will attend the regional provider meetings October – December and give updates and Q&A.
RCC will present on the impact of SB11 on residential contracts at the October Texas Child Care Administrators Conference.
RCC will send an will be sent from the RCC mailbox to all providers in December reminding you that incentives, remedies and damages will be live January 1.