Monitoring the Session

HB 2789

Frank Bill Cuts Required Child-Care Insurance From $300K To $100K

Became law

Verdict: Smells

SmellsReviewed
Rep. James FrankRHouse 69
Why it's charged
Carve-out

THE TEXT

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

Bill text, engrossed version (E)

One uniquely described class, the state's single source continuum contractors, is exempted from a license that other child-placing agencies, including their own subcontractors, must still hold. The caption does name community-based care contractors, so this favor is disclosed rather than hidden.

Carve-out

Reviewed · Nov 1, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the regulation of child welfare, including licensure, community-based care contractors, family homes, and child-care facilities.

Caption from analyzed text · version E.

Summary

Foster care’s main contractors skip the child-placing agency license. Their own subcontractors still need one.

The bill lets the state's main foster care contractors, called single source continuum contractors, run community-based care without a child-placing agency license, and it cuts required liability insurance for licensed child-care operations and listed family homes from $300,000 to $100,000 per occurrence. It touches foster care contractors, child-care facilities, listed family homes, residential treatment centers and people seeking child-care administrator licenses. On the ground, contractors skip one license, homes carry less insurance and no longer file annual proof of coverage, the tuberculosis test requirement is dropped, initial licenses last 12 months instead of six, administrator education and experience rules are loosened, and late renewal penalties shrink.

Labels

Labels: ACROSS THE AISLE. Joint authors: 3 Republicans, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.

Receipt

The receipt

89R-HB2789 · 2025-02-13

SOLD BY

+ 1 more author

ITEM

relating to the regulation of child welfare, including licensure, community-based care contractors, family homes, and child-care facilities.

WHAT IT DOES

Foster care’s main contractors skip the child-placing agency license. Their own subcontractors still need one.

The bill lets the state's main foster care contractors, called single source continuum contractors, run community-based care without a child-placing agency license, and it cuts required liability insurance for licensed child-care operations and listed family homes from $300,000 to $100,000 per occurrence. It touches foster care contractors, child-care facilities, listed family homes, residential treatment centers and people seeking child-care administrator licenses. On the ground, contractors skip one license, homes carry less insurance and no longer file annual proof of coverage, the tuberculosis test requirement is dropped, initial licenses last 12 months instead of six, administrator education and experience rules are loosened, and late renewal penalties shrink.

CHARGES

[x] CARVE-OUTanalysis confidence 40%

THE TEXT

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

Bill text, engrossed version (E)

One uniquely described class, the state's single source continuum contractors, is exempted from a license that other child-placing agencies, including their own subcontractors, must still hold. The caption does name community-based care contractors, so this favor is disclosed rather than hidden.

TOTAL

No first-year general revenue figure available here.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 12, 2025

The fiscal implications of the bill related to the change in the liability insurance coverage cannot be determined due to the uncertainty of the impact on the insurance premium tax revenue.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Human Services
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Testimony taken/registration(s) recorded in committee
  7. Left pending in committee
  8. Considered in public hearing
  9. Reported favorably w/o amendment(s)
  10. Comte report filed with Committee Coordinator
  11. Committee report distributed
  12. Committee report sent to Calendars
  13. Considered in Calendars
  14. Placed on General State Calendar
  15. Read 2nd time
  16. Passed to engrossment
  17. Record vote RV#608
  18. Statement(s) of vote recorded in Journal
  19. Read 3rd time
  20. Passed
  21. Record vote RV#719
  22. Reported engrossed
  23. Received from the House
  24. Read first time
  25. Referred to Health & Human Services
  26. Scheduled for public hearing on . . .
  27. Considered in public hearing
  28. Testimony taken in committee
  29. Left pending in committee
  30. Considered in public hearing
  31. Vote taken in committee
  32. Reported favorably w/o amendments
  33. Committee report printed and distributed
  34. Co-sponsor authorized
  35. Placed on intent calendar
  36. Rules suspended-Regular order of business
  37. Read 2nd time & passed to 3rd reading
  38. Vote recorded in Journal
  39. Three day rule suspended
  40. Record vote
  41. Read 3rd time
  42. Passed
  43. Record vote
  44. Senate passage reported
  45. Reported enrolled
  46. Signed in the House
  47. Signed in the Senate
  48. Sent to the Governor
  49. Signed by the Governor
  50. See remarks for effective date
FILED UNDER

TAXPAYER-FUNDED NGOS

THE TEXT

…“to provide community-based care, including the management and”…

Bill text, engrossed version (E)

The bill frees the private contractors that the state pays to manage foster care from the child-placing agency license that other providers must hold.

SIGNED FOR BY

House · 141 yea · 6 nay

Senate · 31 yea · 0 nay

Sources

House: Final passage · Apr 29, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 19, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$20,000.00

Texans for Lawsuit Reform PAC

$20,000.00

Cash
$20,000.00
Paid by others
$0.00
Total
$20,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 30, 2025 to Oct 19, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007594, 101028399, 101073104.

Kickapoo Traditional Tribe of Texas$10,000.00

Kickapoo Traditional Tribe of Texas

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 53 other sitting lawmakers.

Derived recipient stock · Aug 15, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team
Sources

Derived itemized flow · Nov 25, 2024 to Aug 18, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100992188, 101068805.

PROVIDER COALITION FOR CARE PAC (NURSING HOME COALITION)$5,000.00

PROVIDER COALITION FOR CARE PAC (NURSING HOME COALITION)

$5,000.00

Cash
$5,000.00
Paid by others
$0.00
Total
$5,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Sep 19, 2025. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Sep 19, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028399.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$20,000.00

Cash
$20,000.00
Paid by others
$0.00
Total
$20,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 30, 2025 to Oct 19, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007594, 101028399, 101073104.

×

Kickapoo Traditional Tribe of Texas

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 53 other sitting lawmakers.

Derived recipient stock · Aug 15, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team
Sources

Derived itemized flow · Nov 25, 2024 to Aug 18, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100992188, 101068805.

×

PROVIDER COALITION FOR CARE PAC (NURSING HOME COALITION)

$5,000.00

Cash
$5,000.00
Paid by others
$0.00
Total
$5,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Sep 19, 2025. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Sep 19, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028399.

Votes5

Senate May 19, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator Sparks moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that HB 2789 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0. The bill was read third time and was passed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 19, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator Sparks moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that HB 2789 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 19, 2025

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

The bill was read second time and was passed to third reading by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House Apr 29, 2025

Yea
141
Nay
6
Present, not voting
1
Absent
1
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 719

HB 2789 was passed by (Record 719): 141 Yeas, 6 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 141 (published)
  • Nay: 6 (published)
  • Present, not voting: 1 (published)
  • Absent: 1 (derived from named list)
  • Excused: 1 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House Apr 28, 2025

Yea
138
Nay
8
Present, not voting
2
Absent
0
Excused
2
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 608

HB 2789 was passed to engrossment by (Record 608): 138 Yeas, 8 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 138 (published)
  • Nay: 8 (published)
  • Present, not voting: 2 (published)
  • Absent: 0 (derived from named list)
  • Excused: 2 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses16
For
14
Against
0
On
2
Names

For

  • Buckner International1 registration
  • Conference of Urban Counites1 registration
  • National Association of Social Workers-Texas1 registration
  • Self; One Accord for Kids1 registration
  • TCCB1 registration
  • Texans Care for Children1 registration
  • Texas Alliance of Child and Family Services1 registration
  • Texas Alliance of Child and Family Services (TACFS)2 registrations
  • Texas CASA2 registrations
  • Texas Conference of Catholic Bishops1 registration
  • Texas Public Policy Foundation2 registrations

On

  • Health and Human Services Commission2 registrations
Sources

16 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No first-year general revenue figure available here.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 12, 2025

The fiscal implications of the bill related to the change in the liability insurance coverage cannot be determined due to the uncertainty of the impact on the insurance premium tax revenue.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version E by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Feb 13, 2025

06/20/2025 E See remarks for effective date

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

Data snapshot Nov 1, 2026 at 1:46 PM CST. Grades, charges, quotes and corrections follow the published record.

Sponsors
Cosponsors

House committee · Human Services · Committee vote 11 aye, 0 nay · Out of committee

Senate committee · Health & Human Services · Committee vote 8 aye, 0 nay, 1 absent · Out of committee

Companion

SB 1149 by Sparks (identical)

Subjects

Day Care

Family--Child Protection

Family--Parent & Child

Human Services--Child Services

ADOPTION

CONTRACTORS & SUBCONTRACTORS

FOSTER CARE

FAMILY & PROTECTIVE SERVICES, DEPARTMENT OF

Text

The text as introduced · 1,635 words

By: Frank
H.B. No. 2789

A BILL TO BE ENTITLED

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.