HB 2789

relating to the regulation of child welfare, including licensure,
community-based care contractors, family homes, and child-care
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
(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
(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
SECTION 2.  Section 42.043(b), Human Resources Code, is
(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
(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
SECTION 4.  Section 42.0495, Human Resources Code, is
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
(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
(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
(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
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
[(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
(b)  [Each "No Trespassing" notice posted on the grounds of a
general residential operation operating as a residential treatment
[(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
[(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
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
(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
(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
[(A)  a master's or doctoral degree in social work
[(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
[(A)  a master's or doctoral degree in social work
[(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
(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
SECTION 9.  Section 42.0431(b), Human Resources Code, is
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
(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
SECTION 11.  (a)  Sections 3 and 4 of this Act take effect
(b)  Except as provided by Subsection (a) of this section,
this Act takes effect September 1, 2025.