Texas 2025 - 89th Regular

Texas Senate Bill SB2034 Compare Versions

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1	1	By: Paxton S.B. No. 2034
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the receivership of a single-source continuum
9	9	contractor providing child welfare services.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 64.001(a), Civil Practice and Remedies
12	12	Code, is amended to read as follows:
13	13	(a) A court of competent jurisdiction may appoint a
14	14	receiver:
15	15	(1) in an action by a vendor to vacate a fraudulent
16	16	purchase of property;
17	17	(2) in an action by a creditor to subject any property
18	18	or fund to his claim;
19	19	(3) in an action between partners or others jointly
20	20	owning or interested in any property or fund;
21	21	(4) in an action by a mortgagee for the foreclosure of
22	22	the mortgage and sale of the mortgaged property;
23	23	(5) for a corporation that is insolvent, is in
24	24	imminent danger of insolvency, has been dissolved, or has forfeited
25	25	its corporate rights;
26	26	(6) for a single-source continuum contractor as
27	27	provided by Subchapter B-2, Chapter 264, Family Code; or
28	28	(7) [(6)] in any other case in which a receiver may be
29	29	appointed under the rules of equity.
30	30	SECTION 2. Chapter 264, Family Code, is amended by adding
31	31	Subchapter B-2 to read as follows:
32	32	SUBCHAPTER B-2. RECEIVER FOR SINGLE-SOURCE CONTINUUM CONTRACTOR
33	33	Sec. 264.191. DEFINITIONS. In this subchapter:
34	34	(1) "Catchment area" has the meaning assigned by
35	35	Section 264.152.
36	36	(2) "Community-based care contract" means a contract
37	37	between a single-source continuum contractor and the department or
38	38	the Health and Human Services Commission under Subchapter B-1.
39	39	(3) "Single-source continuum contractor" means an
40	40	entity that has entered into a contract with the department or the
41	41	Health and Human Services Commission under Subchapter B-1.
42	42	Sec. 264.1915. RECEIVER OF SINGLE-SOURCE CONTINUUM
43	43	CONTRACTOR. A court of competent jurisdiction may appoint a
44	44	receiver for a single-source continuum contractor or any of its
45	45	parts, divisions, components, or companies on the petition of the
46	46	department if:
47	47	(1) after being subject to a quality improvement plan,
48	48	corrective action plan, or other remedial statutory or contract
49	49	measures, the contractor continues to fail to satisfactorily
50	50	perform under the community-based care contract;
51	51	(2) the contractor:
52	52	(A) provides the department notice of the
53	53	contractor's intent to cease operations not later than the 60th day
54	54	before the date the contractor intends to cease operations; and
55	55	(B) has not made arrangements for another
56	56	single-source continuum contractor or the department to continue
57	57	the uninterrupted provision of services under the community-based
58	58	care contract;
59	59	(3) conditions exist, as determined by the department,
60	60	within the contractor that present an imminent danger to the
61	61	health, safety, or welfare of the children under the
62	62	conservatorship of the department in the contractor's care;
63	63	(4) the contractor has failed to provide adequate
64	64	information to the department regarding a child under the
65	65	conservatorship of the department in the contractor's care;
66	66	(5) the contractor has failed to comply with a court
67	67	order or incurred a sanction against the department due to failure
68	68	to comply with a court order; or
69	69	(6) the contractor cannot meet or is unlikely to be
70	70	able to meet financial obligations related to services provided
71	71	under the community-based care contract, including financial
72	72	obligations to employees, contractors, or foster parents.
73	73	Sec. 264.192. PROCEEDING TO APPOINT RECEIVER. (a) Except
74	74	as otherwise provided by law, a court shall give precedence to a
75	75	petition for the appointment of a receiver under this subchapter
76	76	over other matters.
77	77	(b) A court shall conduct an evidentiary hearing on a
78	78	petition for the appointment of a receiver under this subchapter
79	79	not later than the fifth day after the date the petition is filed.
80	80	The department shall make reasonable efforts to notify the
81	81	single-source continuum contractor of the hearing under this
82	82	subsection.
83	83	(c) A court shall grant a petition for the appointment of a
84	84	receiver under this subchapter on finding that:
85	85	(1) one of the conditions described by Section
86	86	264.1915 exists; and
87	87	(2) the continued existence of the condition
88	88	jeopardizes the health, safety, or welfare of a child under the
89	89	conservatorship of the department.
90	90	(d) A court may grant a petition for the appointment of a
91	91	receiver under this subchapter ex parte.
92	92	(e) The issuance of a check without sufficient money by the
93	93	single-source continuum contractor or the existence of delinquent
94	94	obligations for salaries, utilities, or essential services or
95	95	commodities for the contractor is prima facie evidence that the
96	96	contractor cannot meet or is unlikely to be able to meet financial
97	97	obligations related to services provided under the community-based
98	98	care contract as provided by Section 264.1915(6).
99	99	Sec. 264.1925. QUALIFICATIONS. (a) To be appointed as a
100	100	receiver under this subchapter, a person must be qualified by
101	101	education, training, or experience to carry out the duties of the
102	102	receiver under this subchapter. Notwithstanding Section 64.021,
103	103	Civil Practice and Remedies Code, a receiver appointed under this
104	104	subchapter may be an employee of the department.
105	105	(b) A court must appoint a receiver selected from a list of
106	106	qualified persons developed by the department and filed with the
107	107	court.
108	108	Sec. 264.193. LIMITED DURATION; ASSESSMENT. (a) A
109	109	receivership under this subchapter expires on the 90th day after
110	110	the date a receiver is appointed, unless the department files a
111	111	petition for a 60-day extension of the receivership with the
112	112	appointing court on or before the date the receivership expires.
113	113	The department may request multiple extensions under this
114	114	subsection.
115	115	(b) On or before the 60th day after the date a receiver is
116	116	appointed under this subchapter and every 60 days thereafter until
117	117	the expiration or termination of the receivership, the department
118	118	shall file with the appointing court an assessment of ability of the
119	119	single-source continuum contractor under receivership to ensure
120	120	the health, safety, and welfare of the children under the
121	121	conservatorship of the department in the contractor's care.
122	122	Sec. 264.1935. BOND. Notwithstanding Section 64.023, Civil
123	123	Practice and Remedies Code, a receiver appointed under this
124	124	subchapter who is an employee of the department is not required to
125	125	execute a bond.
126	126	Sec. 264.194. POWERS AND DUTIES OF RECEIVER. (a) A
127	127	receiver appointed under this subchapter shall take all actions:
128	128	(1) ordered by the appointing court; and
129	129	(2) necessary to ensure the continued health, safety,
130	130	and welfare of children under the conservatorship of the department
131	131	in the care of the single-source continuum contractor under
132	132	receivership, which may include:
133	133	(A) taking actions reasonably necessary to
134	134	protect or conserve the assets or property of the contractor;
135	135	(B) using of the property of the contractor for
136	136	the provision of care and services to children under the
137	137	conservatorship of the department and their families in the
138	138	applicable catchment area;
139	139	(C) entering into contracts with or hiring agents
140	140	or employees to carry out the powers and duties of the receiver;
141	141	(D) directing, managing, hiring, or discharging
142	142	employees or agents of the contractor; and
143	143	(E) honoring leases, mortgages, and contractual
144	144	obligations of the contractor as those payments become due during
145	145	the period of the receivership.
146	146	(b) Notwithstanding any other law and to ensure continuous
147	147	provision of necessary services to children under the
148	148	conservatorship of the department and their families, a contract
149	149	entered into by a receiver acting in accordance with the receiver's
150	150	duties under this section is not subject to advertising,
151	151	competitive bidding, or proposal evaluation requirements.
152	152	(c) A receiver shall compensate an employee hired in
153	153	accordance with this section at a rate of compensation, including
154	154	benefits, approved by the appointing court.
155	155	(d) A receiver may petition the appointing court for
156	156	temporary relief from obligations under a contract entered into by
157	157	the single-source continuum contractor under receivership if:
158	158	(1) the rent, price, or rate of interest substantially
159	159	exceeds a reasonable rent, price, or rate of interest at the time
160	160	the contractor entered into the contract; or
161	161	(2) any material provision of the contract is
162	162	unreasonable when compared to contracts negotiated under similar
163	163	conditions.
164	164	(e) Any relief granted by a court under Subsection (d) is
165	165	limited to the life of the receivership, unless otherwise
166	166	determined by the court.
167	167	(f) A receiver appointed under this subchapter shall
168	168	deposit all money related to the receivership in a separate account
169	169	and shall use that account for all disbursements related to the
170	170	receivership. A payment to a receiver of a sum owed to the
171	171	single-source continuum contractor under receivership shall be
172	172	considered a payment to the contractor with respect to the
173	173	discharge of the obligation.
174	174	(g) A receiver who is not a department employee shall
175	175	coordinate with the department to ensure:
176	176	(1) the continued health, safety, and welfare of the
177	177	children in the department's conservatorship; and
178	178	(2) compliance with all state and federal laws
179	179	relating to child welfare.
180	180	(h) A receiver shall make a reasonable effort to facilitate
181	181	the continued operation of the community-based care program under
182	182	Subchapter B-1 in the applicable catchment area.
183	183	Sec. 264.1945. COMPENSATION OF RECEIVER. The appointing
184	184	court shall order compensation for a receiver appointed under this
185	185	subchapter to be paid by the single-source continuum contractor
186	186	under receivership. If the receiver is a department employee, the
187	187	department shall pay the receiver the compensation ordered under
188	188	this section and the single-source continuum contractor shall
189	189	reimburse the department.
190	190	Sec. 264.195. LIABILITY OF RECEIVER. (a) A person does not
191	191	have a cause of action against a receiver appointed under this
192	192	subchapter for an action taken within the scope of the receivership
193	193	unless the cause of action arises from a breach of fiduciary duty or
194	194	the gross negligence or intentional acts of the receiver.
195	195	(b) Notwithstanding Subsection (a), this section does not
196	196	waive the sovereign immunity to suit and from liability of the
197	197	department or a department employee acting in an official capacity.
198	198	Sec. 264.1955. OBLIGATIONS AND LIABILITY OF SINGLE-SOURCE
199	199	CONTINUUM CONTRACTOR; SALE OR LEASE OF PROPERTY BY SINGLE-SOURCE
200	200	CONTINUUM CONTRACTOR. (a) The appointment of a receiver under this
201	201	subchapter does not relieve the single-source continuum contractor
202	202	under receivership or any employee or agent of the contractor of:
203	203	(1) civil or criminal liability arising out of an act
204	204	or omission that occurred before the appointment of the receiver;
205	205	(2) an obligation for the payment of taxes,
206	206	operational or maintenance expenses, mortgages, leases,
207	207	contractual obligations, or liens; or
208	208	(3) a duty imposed by law.
209	209	(b) A single-source continuum contractor under receivership
210	210	may sell or lease a facility under receivership, subject to the
211	211	approval of the appointing court.
212	212	Sec. 264.196. TERMINATION OF RECEIVERSHIP. (a) The
213	213	appointing court may terminate a receivership if:
214	214	(1) the court determines that the receivership is no
215	215	longer necessary because the conditions that gave rise to the
216	216	receivership no longer exist;
217	217	(2) the department has entered into a new contract
218	218	with a single-source continuum contractor and that contractor is
219	219	ready and able to assume the duties of the single-source continuum
220	220	contractor under receivership; or
221	221	(3) the department is ready and able to assume the
222	222	duties of the single-source continuum contractor under
223	223	receivership.
224	224	(b) Not later than the 60th day after the date a
225	225	receivership is terminated or expires under this subchapter, unless
226	226	such time is extended by order of the appointing court, the receiver
227	227	shall file with the clerk of the appointing court a full and final
228	228	and sworn account of:
229	229	(1) all property received by the receiver;
230	230	(2) all money collected and disbursed; and
231	231	(3) the expenses of the receivership.
232	232	SECTION 3. This Act takes effect immediately if it receives
233	233	a vote of two-thirds of all the members elected to each house, as
234	234	provided by Section 39, Article III, Texas Constitution. If this
235	235	Act does not receive the vote necessary for immediate effect, this
236	236	Act takes effect September 1, 2025.