2025S0102-1 02/13/25
By: Perry S.B. No. 1558
A BILL TO BE ENTITLED
AN ACT
relating to the liability of nonprofit entities contracted with the
Department of Family and Protective Services or with a single
source continuum contractor to provide community-based care or
child welfare services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 84, Civil Practice and Remedies Code, is
amended by adding Section 84.0068 to read as follows:
Section 84.0068. LIABILITY FOR SINGLE SOURCE
CONTINUUM CONTRACTORS AND CONTRACTED CHILD WELFARE CONTINUUM
PROVIDERS. (a) An entity considered to be a charitable
organization under Section 264.170, Family Code, and that is
in good standing under Subsection (b) of this section is
immune from civil liability under this chapter, except as
provided by Subsection (d) of this section.
(b) With respect to a claim under this chapter, an entity is
in good standing if it has substantially complied with the
following actions with respect to each of its staffers:
(1) conducted a timely criminal background check as
required by applicable rules and laws;
(2) checked appropriate state agency offender
registries or databases to determine if the staffer is listed
before hiring, contracting with, or engaging the staffer and,
afterwards, performed the same check at least once every five
years;
(3) taken appropriate administrative or personnel
action with respect to a staffer who has been grossly deficient in
the completion of their duties;
(4) required that staffers be trained in:
(A) child sexual abuse prevention at least every
five years; and
(B) reporting abuse and neglect; and
(5) reported any known allegation of misconduct by a
staffer as required by law.
(c) An entity described by Subsection (a) that fails to be
in substantial compliance with any applicable requirement of
Subsection (b) may be held vicariously liable to the recipient of
the entity's services, or to the recipient's legally authorized
representative, for acts of the entity's employees, contractors, or
volunteers only if the plaintiff can show the following:
(1) the requirement with which the entity failed to be
in substantial compliance was designed to prevent the specific type
of harm that occurred; and
(2) the failure to be in substantial compliance with
the requirement was a substantial factor in causing the actual harm
and damage.
(d) An entity that is in good standing under Subsection (b)
has limited liability only in the absence of gross negligence, as
that term is defined by Section 41.001, Civil Practice and Remedies
Code, in the performance of a contract or other agreement.
(e) In this section:
(1) "Entity" means a nonprofit entity described by
Section 264.170, Family Code.
(2) "Staffer" means an employee, clinical
professional, caregiver, or volunteer who works for an entity.
SECTION 2. Section 264.170, Family Code, is amended to read
as follows:
Sec. 264.170. LIMITED LIABILITY FOR SINGLE SOURCE CONTINUUM
CONTRACTOR OR OTHER NONPROFIT ENTITY CONTRACTED TO PROVIDE CHILD
WELFARE SERVICES AND RELATED PERSONNEL. (a) A nonprofit entity
that contracts with the department to provide services as a single
source continuum contractor or a nonprofit entity that contracts
with the department or with a single source continuum contractor to
provide foster care or adoption services under this subchapter is
considered to be a charitable organization for the purposes of
Chapter 84, Civil Practice and Remedies Code, with respect to the
provision of those services, and that chapter applies to the entity
and any person who is an employee, clinical professional,
caregiver, or volunteer of the entity.
(b) The limitations on liability provided by this section
apply:
(1) only to an act or omission by the entity or
person, as applicable, that occurs:
(A) while the entity or person is acting
within the course and scope of the entity's contract with the
department or a single source continuum contractor; or
(B) while the person is acting within the
course and scope of [and] the person's duties for the entity;
and
(2) only if insurance coverage in the minimum amounts
required by Chapter 84, Civil Practice and Remedies Code, is in
force and effect at the time a cause of action for personal injury,
death, or property damage accrues.
SECTION 3. Section 84.0068, Civil Practice and Remedies
Code, as added by this Act, and Section 264.170, Family Code, as
amended by this Act, apply only to a cause of action that accrues on
or after the effective date of this Act. A cause of action that
accrued before the effective date of this Act is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2025.