Texas 2025 - 89th Regular

Texas House Bill HB5364 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R9872 AMF-F
2	2	By: Shaheen H.B. No. 5364
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the receivership of a single-source continuum
10	10	contractor providing child welfare services.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 64.001(a), Civil Practice and Remedies
13	13	Code, is amended to read as follows:
14	14	(a) A court of competent jurisdiction may appoint a
15	15	receiver:
16	16	(1) in an action by a vendor to vacate a fraudulent
17	17	purchase of property;
18	18	(2) in an action by a creditor to subject any property
19	19	or fund to his claim;
20	20	(3) in an action between partners or others jointly
21	21	owning or interested in any property or fund;
22	22	(4) in an action by a mortgagee for the foreclosure of
23	23	the mortgage and sale of the mortgaged property;
24	24	(5) for a corporation that is insolvent, is in
25	25	imminent danger of insolvency, has been dissolved, or has forfeited
26	26	its corporate rights;
27	27	(6) for a single-source continuum contractor as
28	28	provided by Subchapter B-2, Chapter 264, Family Code; or
29	29	(7) [(6)] in any other case in which a receiver may be
30	30	appointed under the rules of equity.
31	31	SECTION 2. Chapter 264, Family Code, is amended by adding
32	32	Subchapter B-2 to read as follows:
33	33	SUBCHAPTER B-2. RECEIVER FOR SINGLE-SOURCE CONTINUUM CONTRACTOR
34	34	Sec. 264.191. DEFINITIONS. In this subchapter:
35	35	(1) "Catchment area" has the meaning assigned by
36	36	Section 264.152.
37	37	(2) "Community-based care contract" means a contract
38	38	between a single-source continuum contractor and the department or
39	39	the Health and Human Services Commission under Subchapter B-1.
40	40	(3) "Single-source continuum contractor" means an
41	41	entity that has entered into a contract with the department or the
42	42	Health and Human Services Commission under Subchapter B-1.
43	43	Sec. 264.1915. RECEIVER OF SINGLE-SOURCE CONTINUUM
44	44	CONTRACTOR. A court of competent jurisdiction may appoint a
45	45	receiver for a single-source continuum contractor or any of its
46	46	parts, divisions, components, or companies on the petition of the
47	47	department if:
48	48	(1) after being subject to a quality improvement plan,
49	49	corrective action plan, or other remedial statutory or contract
50	50	measures, the contractor continues to fail to satisfactorily
51	51	perform under the community-based care contract;
52	52	(2) the contractor:
53	53	(A) provides the department notice of the
54	54	contractor's intent to cease operations not later than the 60th day
55	55	before the date the contractor intends to cease operations; and
56	56	(B) has not made arrangements for another
57	57	single-source continuum contractor or the department to continue
58	58	the uninterrupted provision of services under the community-based
59	59	care contract;
60	60	(3) conditions exist, as determined by the department,
61	61	within the contractor that present an imminent danger to the
62	62	health, safety, or welfare of the children under the
63	63	conservatorship of the department in the contractor's care;
64	64	(4) the contractor has failed to provide adequate
65	65	information to the department regarding a child under the
66	66	conservatorship of the department in the contractor's care;
67	67	(5) the contractor has failed to comply with a court
68	68	order or incurred a sanction against the department due to failure
69	69	to comply with a court order; or
70	70	(6) the contractor cannot meet or is unlikely to be
71	71	able to meet financial obligations related to services provided
72	72	under the community-based care contract, including financial
73	73	obligations to employees, contractors, or foster parents.
74	74	Sec. 264.192. PROCEEDING TO APPOINT RECEIVER. (a) Except
75	75	as otherwise provided by law, a court shall give precedence to a
76	76	petition for the appointment of a receiver under this subchapter
77	77	over other matters.
78	78	(b) A court shall conduct an evidentiary hearing on a
79	79	petition for the appointment of a receiver under this subchapter
80	80	not later than the fifth day after the date the petition is filed.
81	81	The department shall make reasonable efforts to notify the
82	82	single-source continuum contractor of the hearing under this
83	83	subsection.
84	84	(c) A court shall grant a petition for the appointment of a
85	85	receiver under this subchapter on finding that:
86	86	(1) one of the conditions described by Section
87	87	264.1915 exists; and
88	88	(2) the continued existence of the condition
89	89	jeopardizes the health, safety, or welfare of a child under the
90	90	conservatorship of the department.
91	91	(d) A court may grant a petition for the appointment of a
92	92	receiver under this subchapter ex parte.
93	93	(e) The issuance of a check without sufficient money by the
94	94	single-source continuum contractor or the existence of delinquent
95	95	obligations for salaries, utilities, or essential services or
96	96	commodities for the contractor is prima facie evidence that the
97	97	contractor cannot meet or is unlikely to be able to meet financial
98	98	obligations related to services provided under the community-based
99	99	care contract as provided by Section 264.1915(6).
100	100	Sec. 264.1925. QUALIFICATIONS. (a) To be appointed as a
101	101	receiver under this subchapter, a person must be qualified by
102	102	education, training, or experience to carry out the duties of the
103	103	receiver under this subchapter. Notwithstanding Section 64.021,
104	104	Civil Practice and Remedies Code, a receiver appointed under this
105	105	subchapter may be an employee of the department.
106	106	(b) A court must appoint a receiver selected from a list of
107	107	qualified persons developed by the department and filed with the
108	108	court.
109	109	Sec. 264.193. LIMITED DURATION; ASSESSMENT. (a) A
110	110	receivership under this subchapter expires on the 90th day after
111	111	the date a receiver is appointed, unless the department files a
112	112	petition for a 60-day extension of the receivership with the
113	113	appointing court on or before the date the receivership expires.
114	114	The department may request multiple extensions under this
115	115	subsection.
116	116	(b) On or before the 60th day after the date a receiver is
117	117	appointed under this subchapter and every 60 days thereafter until
118	118	the expiration or termination of the receivership, the department
119	119	shall file with the appointing court an assessment of ability of the
120	120	single-source continuum contractor under receivership to ensure
121	121	the health, safety, and welfare of the children under the
122	122	conservatorship of the department in the contractor's care.
123	123	Sec. 264.1935. BOND. Notwithstanding Section 64.023, Civil
124	124	Practice and Remedies Code, a receiver appointed under this
125	125	subchapter who is an employee of the department is not required to
126	126	execute a bond.
127	127	Sec. 264.194. POWERS AND DUTIES OF RECEIVER. (a) A
128	128	receiver appointed under this subchapter shall take all actions:
129	129	(1) ordered by the appointing court; and
130	130	(2) necessary to ensure the continued health, safety,
131	131	and welfare of children under the conservatorship of the department
132	132	in the care of the single-source continuum contractor under
133	133	receivership, which may include:
134	134	(A) taking actions reasonably necessary to
135	135	protect or conserve the assets or property of the contractor;
136	136	(B) using of the property of the contractor for
137	137	the provision of care and services to children under the
138	138	conservatorship of the department and their families in the
139	139	applicable catchment area;
140	140	(C) entering into contracts with or hiring agents
141	141	or employees to carry out the powers and duties of the receiver;
142	142	(D) directing, managing, hiring, or discharging
143	143	employees or agents of the contractor; and
144	144	(E) honoring leases, mortgages, and contractual
145	145	obligations of the contractor as those payments become due during
146	146	the period of the receivership.
147	147	(b) Notwithstanding any other law and to ensure continuous
148	148	provision of necessary services to children under the
149	149	conservatorship of the department and their families, a contract
150	150	entered into by a receiver acting in accordance with the receiver's
151	151	duties under this section is not subject to advertising,
152	152	competitive bidding, or proposal evaluation requirements.
153	153	(c) A receiver shall compensate an employee hired in
154	154	accordance with this section at a rate of compensation, including
155	155	benefits, approved by the appointing court.
156	156	(d) A receiver may petition the appointing court for
157	157	temporary relief from obligations under a contract entered into by
158	158	the single-source continuum contractor under receivership if:
159	159	(1) the rent, price, or rate of interest substantially
160	160	exceeds a reasonable rent, price, or rate of interest at the time
161	161	the contractor entered into the contract; or
162	162	(2) any material provision of the contract is
163	163	unreasonable when compared to contracts negotiated under similar
164	164	conditions.
165	165	(e) Any relief granted by a court under Subsection (d) is
166	166	limited to the life of the receivership, unless otherwise
167	167	determined by the court.
168	168	(f) A receiver appointed under this subchapter shall
169	169	deposit all money related to the receivership in a separate account
170	170	and shall use that account for all disbursements related to the
171	171	receivership. A payment to a receiver of a sum owed to the
172	172	single-source continuum contractor under receivership shall be
173	173	considered a payment to the contractor with respect to the
174	174	discharge of the obligation.
175	175	(g) A receiver who is not a department employee shall
176	176	coordinate with the department to ensure:
177	177	(1) the continued health, safety, and welfare of the
178	178	children in the department's conservatorship; and
179	179	(2) compliance with all state and federal laws
180	180	relating to child welfare.
181	181	(h) A receiver shall make a reasonable effort to facilitate
182	182	the continued operation of the community-based care program under
183	183	Subchapter B-1 in the applicable catchment area.
184	184	Sec. 264.1945. COMPENSATION OF RECEIVER. The appointing
185	185	court shall order compensation for a receiver appointed under this
186	186	subchapter to be paid by the single-source continuum contractor
187	187	under receivership. If the receiver is a department employee, the
188	188	department shall pay the receiver the compensation ordered under
189	189	this section and the single-source continuum contractor shall
190	190	reimburse the department.
191	191	Sec. 264.195. LIABILITY OF RECEIVER. (a) A person does not
192	192	have a cause of action against a receiver appointed under this
193	193	subchapter for an action taken within the scope of the receivership
194	194	unless the cause of action arises from a breach of fiduciary duty or
195	195	the gross negligence or intentional acts of the receiver.
196	196	(b) Notwithstanding Subsection (a), this section does not
197	197	waive the sovereign immunity to suit and from liability of the
198	198	department or a department employee acting in an official capacity.
199	199	Sec. 264.1955. OBLIGATIONS AND LIABILITY OF SINGLE-SOURCE
200	200	CONTINUUM CONTRACTOR; SALE OR LEASE OF PROPERTY BY SINGLE-SOURCE
201	201	CONTINUUM CONTRACTOR. (a) The appointment of a receiver under this
202	202	subchapter does not relieve the single-source continuum contractor
203	203	under receivership or any employee or agent of the contractor of:
204	204	(1) civil or criminal liability arising out of an act
205	205	or omission that occurred before the appointment of the receiver;
206	206	(2) an obligation for the payment of taxes,
207	207	operational or maintenance expenses, mortgages, leases,
208	208	contractual obligations, or liens; or
209	209	(3) a duty imposed by law.
210	210	(b) A single-source continuum contractor under receivership
211	211	may sell or lease a facility under receivership, subject to the
212	212	approval of the appointing court.
213	213	Sec. 264.196. TERMINATION OF RECEIVERSHIP. (a) The
214	214	appointing court may terminate a receivership if:
215	215	(1) the court determines that the receivership is no
216	216	longer necessary because the conditions that gave rise to the
217	217	receivership no longer exist;
218	218	(2) the department has entered into a new contract
219	219	with a single-source continuum contractor and that contractor is
220	220	ready and able to assume the duties of the single-source continuum
221	221	contractor under receivership; or
222	222	(3) the department is ready and able to assume the
223	223	duties of the single-source continuum contractor under
224	224	receivership.
225	225	(b) Not later than the 60th day after the date a
226	226	receivership is terminated or expires under this subchapter, unless
227	227	such time is extended by order of the appointing court, the receiver
228	228	shall file with the clerk of the appointing court a full and final
229	229	and sworn account of:
230	230	(1) all property received by the receiver;
231	231	(2) all money collected and disbursed; and
232	232	(3) the expenses of the receivership.
233	233	SECTION 3. This Act takes effect immediately if it receives
234	234	a vote of two-thirds of all the members elected to each house, as
235	235	provided by Section 39, Article III, Texas Constitution. If this
236	236	Act does not receive the vote necessary for immediate effect, this
237	237	Act takes effect September 1, 2025.