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TexasSB 203489th Legislature Regular SessionSenate

Relating to the receivership of a single-source continuum contractor providing child welfare services.

Sponsored By: Aicha Davis, Angela Paxton (Republican)

Signed by Governor

Civil Remedies & LiabilitiesCourts--GeneralFamily--Child ProtectionCONTRACTORS & SUBCONTRACTORSFAMILY & PROTECTIVE SERVICES, DEPARTMENT OF

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 2 costs, 0 mixed.

Court takeovers protect children in care

Texas law lets courts appoint a temporary manager, called a receiver, for a community-based child welfare contractor or part of its operations. The Department of Family and Protective Services must request the takeover. Grounds include continued poor performance after corrective steps, imminent danger to children, missing child information, court-order violations, or current or likely financial failure. A planned shutdown also qualifies when the contractor gives at least 60 days’ notice without arranging continued services. The court must find that the problem threatens a child’s health, safety, or welfare while in state custody. It selects a receiver qualified through education, training, or experience from the department’s list; department employees may serve. The court can appoint a receiver without first hearing from the contractor, but must hold an evidence hearing within five days of filing, with reasonable notice. The initial term is 90 days. The court can grant repeated 60-day extensions when the department files by the current expiration date. The department must assess the contractor by day 60 and every 60 days afterward. The court can end the takeover when the problems end or a replacement contractor or the department is ready to take over. A full, sworn financial accounting is due within 60 days after the takeover ends, unless the court extends that deadline.

Temporary managers keep child care running

Court-appointed receivers must protect children and keep community-based child welfare services running in the contractor’s service area. They can manage property and staff, hire workers, and enter contracts without normal advertising, bidding, or proposal reviews. They must conserve assets, keep takeover funds in a separate account, and honor leases, mortgages, and other contracts as payments come due. Payments tied to the contractor’s obligations count toward those obligations. Receivers can ask the court for temporary contract relief when the original price, rent, or interest rate substantially exceeded a reasonable amount. Relief is also available when a key contract term is unreasonable compared with similar contracts. Receivers who are not department employees must coordinate with the department on child welfare and legal compliance.

Child welfare contractors pay takeover costs

Child welfare contractors under receivership must pay the receiver’s court-set compensation; the law sets no dollar amount. When a department employee serves, the department pays first and the contractor must reimburse it. Pay for workers hired by the receiver requires court approval and comes from receivership funds. The takeover does not erase the contractor’s, employees’, or agents’ earlier civil or criminal liability or other continuing legal duties. Taxes, operating and maintenance costs, mortgages, leases, other contract payments, and liens remain obligations. The contractor also needs court approval to sell or lease a facility during the takeover.

Lawsuits against child welfare receivers limited

People generally cannot sue a receiver for actions within the scope of the child welfare takeover. Exceptions allow claims for breaking a legal duty of trust, gross negligence, or intentional acts. The law does not waive the department’s or its employees’ immunity from lawsuits for official actions.

Sponsors & Cosponsors

Sponsors

  • Aicha Davis

    House

  • Angela Paxton

    Republican • Senate

Cosponsors

  • Royce West

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 165 • No: 0

House vote • 5/6/2025

Record vote

Yes: 148 • No: 0

Senate vote • 4/16/2025

Record vote

Yes: 0 • No: 0

Senate vote • 4/16/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Human Services

Yes: 8 • No: 0

Senate vote • Unknown

Committee vote: Health & Human Services

Yes: 9 • No: 0

Actions Timeline

  1. Effective immediately

    5/19/2025House

  2. Signed by the Governor

    5/19/2025House

  3. Sent to the Governor

    5/7/2025House

  4. Signed in the House

    5/7/2025House

  5. Signed in the Senate

    5/7/2025Senate

  6. Reported enrolled

    5/6/2025Senate

  7. House passage reported

    5/6/2025Senate

  8. Record vote (RV#1479)

    5/6/2025House

  9. Passed

    5/6/2025House

  10. Read 3rd time

    5/6/2025House

  11. Passed to 3rd reading

    5/5/2025House

  12. Read 2nd time

    5/5/2025House

  13. Laid out in lieu of companion (HB 4131)

    5/5/2025House

  14. Committee report sent to Calendars

    5/2/2025House

  15. Committee report distributed

    5/1/2025House

  16. Comte report filed with Committee Coordinator

    5/1/2025House

  17. Reported favorably w/o amendment(s)

    4/29/2025House

  18. Considered in public hearing

    4/29/2025House

  19. Referred to Human Services

    4/22/2025House

  20. Read first time

    4/22/2025House

  21. Received from the Senate

    4/17/2025House

  22. Reported engrossed

    4/16/2025Senate

  23. Record vote

    4/16/2025Senate

  24. Passed

    4/16/2025Senate

  25. Read 3rd time

    4/16/2025Senate

Bill Text

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