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, the official text

S.B. No. 1558

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:

Sec. 84.0068. LIABILITY OF SINGLE SOURCE CONTINUUM

CONTRACTORS OR CERTAIN NONPROFIT ENTITIES PROVIDING

COMMUNITY-BASED CARE OR CHILD WELFARE SERVICES. (a) This section

applies only to an entity described by Section 264.170(a), Family

Code.

(b) Subject to Subsection (c) and except as provided by

Subsection (d), an entity may not be held liable for damages

resulting from an act or omission of a person who is an employee or

volunteer of the entity or a caregiver providing services on behalf

of the entity if, at the time of the act or omission giving rise to

the claim, the entity has:

(1) conducted timely criminal background checks for

the person as required by law;

(2) before hiring, contracting with, or otherwise

enlisting the services of the person and then at least once every

five years, confirmed the person is not listed in a state registry

or database that indicates the person is ineligible to supervise or

treat children;

(3) reported any known allegation of misconduct by the

person as required by law;

(4) taken timely and proportionate administrative or

personnel action in response to deficiency in the performance of

duties by the person; and

(5) required the person to complete training for:

(A) child sexual abuse prevention at least once

every five years; and

(B) the reporting of child abuse and neglect.

(c) An entity may be held vicariously liable by a claimant

on the basis of services received from the entity for the act or

omission of a person who is an employee or volunteer of the entity

or a caregiver providing services on behalf of the entity only if

the claimant shows:

(1) the entity was not in substantial compliance with

a requirement described by Subsection (b) at the time of the act or

omission giving rise to the claim;

(2) the requirement was designed to prevent the

specific type of harm alleged to have occurred; and

(3) the entity's failure to be in substantial

compliance with the requirement was a contributing factor in

bringing about the harm.

(d) Subsection (b) does not affect the liability of an

entity for damages resulting from the gross negligence of the

entity.

(e) This section may not be construed to limit:

(1) the liability of an entity for a claim otherwise

authorized by state or federal law; or

(2) the ability of a governmental entity to take

administrative, regulatory, or prosecutorial action against an

entity described by Section 264.170(a), Family Code.

SECTION 2. Section 264.170, Family Code, is amended to read

as follows:

Sec. 264.170. LIMITED LIABILITY FOR SINGLE SOURCE CONTINUUM

CONTRACTOR OR NONPROFIT ENTITY CONTRACTED TO PROVIDE

COMMUNITY-BASED CARE OR CHILD WELFARE SERVICES AND RELATED

PERSONNEL. (a) A nonprofit entity that contracts with the

department to provide services as a single source continuum

contractor under this subchapter or a nonprofit entity that

contracts with the department or with a single source continuum

contractor to provide community-based care or child welfare

services 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:

(1) an employee or volunteer of the entity; or

(2) a caregiver providing services on behalf 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

with 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.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 1558 passed the Senate on

April 28, 2025, by the following vote: Yeas 30, Nays 1.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1558 passed the House on

May 28, 2025, by the following vote: Yeas 109, Nays 31, one

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor