Relating to the regulation of child welfare, including licensure, community-based care contractors, family homes, and child-care facilities, the official text

H.B. No. 2789

AN ACT

relating to the regulation of child welfare, including licensure,

community-based care contractors, family homes, and child-care

facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 42, Human Resources Code,

is amended by adding Section 42.0413 to read as follows:

Sec. 42.0413. EXEMPTION FOR SINGLE SOURCE CONTINUUM

CONTRACTORS. (a) In this section, "contractor" means a "single

source continuum contractor," which is contracted by the department

to provide community-based care, including the management and

oversight of foster care and other child welfare services,

consistent with the plan described by Section 264.153, Family Code.

(b) Notwithstanding any other provision of this chapter, a

contractor is not required to obtain a child-placing agency license

for the purpose of fulfilling its contractual obligations to the

department.

(c) The exemption under Subsection (b) does not relieve a

contractor from compliance with other applicable laws, rules, or

regulations governing the provision of foster care, adoption

services, or other child welfare services, including requirements

to ensure the health, safety, and well-being of children in its

care.

(d) Nothing in this section may be construed to exempt any

subcontractor or child-placing agency working under a contractor

from the applicable licensing requirements under this chapter.

(e) A contractor may choose to obtain a child-placing agency

license under this chapter if it determines that obtaining such a

license would facilitate the performance of its contractual

obligations or provide additional operational flexibility.

Obtaining a license is not a requirement for a contractor to fulfill

its duties under this section.

SECTION 2. Section 42.043(b), Human Resources Code, is

amended to read as follows:

(b) The department shall require that each child at an

appropriate age [have a test for tuberculosis and] be immunized

against diphtheria, tetanus, poliomyelitis, mumps, rubella,

rubeola, invasive pneumococcal disease, and hepatitis A and against

any other communicable disease as recommended by the Department of

State Health Services. The immunization must be effective on the

date of first entry into the facility. However, a child may be

provisionally admitted if the required immunizations have begun and

are completed as rapidly as medically feasible.

SECTION 3. Section 42.049(a), Human Resources Code, is

amended to read as follows:

(a) A license or registration holder under this chapter

shall maintain liability insurance coverage in the amount of

$100,000 [$300,000] for each occurrence of negligence. An

insurance policy or contract required under this section must cover

injury to a child that occurs while the child is on the premises of

or in the care of the holder.

SECTION 4. Section 42.0495, Human Resources Code, is

amended to read as follows:

Sec. 42.0495. LIABILITY INSURANCE REQUIRED FOR LISTED

FAMILY HOMES. (a) A listed family home shall maintain liability

insurance coverage in the amount of $100,000 [$300,000] for each

occurrence of negligence. An insurance policy or contract required

under this section must cover injury to a child that occurs while

the child is on the premises of or in the care of the listed family

home.

(b) [A listed family home shall annually file with the

commission a certificate or other evidence of coverage from an

insurance company demonstrating that the listed family home has an

unexpired and uncanceled insurance policy or contract that meets

the requirements of this section.

[(c)] If a listed family home is unable to secure a policy or

contract required under this section for financial reasons or for

lack of availability of an underwriter willing to issue a policy or

contract or the home's policy or contract limits are exhausted, the

home shall timely provide written notice to the parent or guardian

of each child attending the home that the liability coverage is not

provided.

(c) [(d)] A listed family home described by Subsection (b)

[(c)] shall timely provide written notice to the commission that

the home is unable to secure liability insurance and the reason the

insurance could not be secured.

(d) [(e)] If a listed family home complies with the notice

requirements under this section, the commission may not assess an

administrative penalty or suspend or revoke the family home's

listing for violating Subsection (a). This subsection may not be

construed to indemnify a family home for damages due to negligence.

SECTION 5. Section 42.051(b), Human Resources Code, is

amended to read as follows:

(b) An initial license is valid for 12 [six] months from the

date it is issued and may be renewed for an additional six months.

SECTION 6. Section 42.068, Human Resources Code, is amended

to read as follows:

Sec. 42.068. REQUIRED POSTING OF NO TRESPASSING NOTICE;

CRIMINAL PENALTY. (a) Each general residential operation

operating as a residential treatment center shall post "No

Trespassing" notices on the grounds of the general residential

operation [in the following locations:

[(1) parallel to and along the exterior boundaries of

the general residential operation's grounds;

[(2) at each roadway or other way of access to the

grounds;

[(3) for grounds not fenced, at least every five

hundred feet along the exterior boundaries of the grounds;

[(4) at each entrance to the grounds; and

[(5) at conspicuous places reasonably likely to be

viewed by intruders].

(b) [Each "No Trespassing" notice posted on the grounds of a

general residential operation operating as a residential treatment

center must:

[(1) state that entry to the property is forbidden;

[(2) include a description of the provisions of

Section 30.05, Penal Code, including the penalties for violating

Section 30.05, Penal Code;

[(3) include the name and address of the person under

whose authority the notice is posted;

[(4) be written in English and Spanish; and

[(5) be at least 8-1/2 by 11 inches in size.

[(c)] The executive commissioner by rule shall determine

and prescribe the requirements regarding the placement,

installation, design, size, wording, and maintenance procedures

for the "No Trespassing" notices.

(c) [(d)] The commission shall provide without charge to

each general residential operation operating as a residential

treatment center the number of "No Trespassing" notices required to

comply with this section and rules adopted under this section.

(d) [(e)] A person who operates a general residential

operation operating as a residential treatment center commits an

offense if the commission provides "No Trespassing" notices to the

facility and the person fails to display the "No Trespassing"

notices on the operation's grounds as required by this section

before the end of the 30th business day after the date the operation

receives the notices. An offense under this subsection is a Class C

misdemeanor.

SECTION 7. Sections 43.004(a) and (b), Human Resources

Code, are amended to read as follows:

(a) To be eligible for a child-care administrator's license

a person must:

(1) provide information for the department's use in

conducting a criminal history and background check under Subsection

(c), including a complete set of the person's fingerprints;

(2) satisfy the minimum requirements under department

rules relating to criminal history and background checks;

(3) pass an examination developed and administered by

the department that demonstrates competence in the field of

child-care administration; and

(4) have an experiential or educational equivalent to

that of a bachelor's degree in social work, child development, or a

similar [one year of full-time experience in management or

supervision of child-care personnel and programs; and

[(5) have one of the following educational and

experience qualifications:

[(A) a master's or doctoral degree in social work

or other area of study; or

[(B) a bachelor's degree and two years' full-time

experience in child care or a closely related] field.

(b) To be eligible for a child-placing agency

administrator's license a person must:

(1) provide information for the department's use in

conducting a criminal history and background check under Subsection

(c), including a complete set of the person's fingerprints;

(2) satisfy the minimum requirements under department

rules relating to criminal history and background checks;

(3) pass an examination developed and administered by

the department that demonstrates competence in the field of placing

children in residential settings or adoptive homes; and

(4) have an experiential or educational equivalent to

that of a bachelor's degree in social work, child development, or a

similar [one year of full-time experience in management or

supervision of child-placing personnel and programs; and

[(5) have one of the following educational and

experience qualifications:

[(A) a master's or doctoral degree in social work

or other area of study; or

[(B) a bachelor's degree and two years' full-time

experience in the field of placing children in residential settings

or adoptive homes or a closely related] field.

SECTION 8. Section 43.009(e), Human Resources Code, is

amended to read as follows:

(e) If a person's license has been expired for longer than

90 days but less than one year, the person may renew the license by

paying to the department one and one-half [two] times the required

renewal fee.

SECTION 9. Section 42.0431(b), Human Resources Code, is

repealed.

SECTION 10. (a) The commissioner of the Department of

Family and Protective Services shall adopt rules necessary to

implement the changes in law made by this Act not later than

December 1, 2025.

(b) The rules adopted to implement Section 42.0413, Human

Resources Code, as added by this Act, must ensure that single source

continuum contractors operate in a manner that continues to

prioritize the safety and well-being of children in the foster care

system.

SECTION 11. (a) Sections 3 and 4 of this Act take effect

January 1, 2026.

(b) Except as provided by Subsection (a) of this section,

this Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 2789 was passed by the House on April

29, 2025, by the following vote: Yeas 141, Nays 6, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2789 was passed by the Senate on May

19, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor