Bonnen Nonprofit Bill Caps Damages For Foster Care Contractors Only

The text as introduced · 726 words

By: Bonnen
H.B. No. 4724

A BILL TO BE ENTITLED

AN ACT

relating to the civil liability of nonprofit entities.

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 FOSTER CARE OR

ADOPTION SERVICES. (a) Subject to Subsection (b) and except as

provided by Subsection (c), an entity described by Section

264.170(a), Family Code, may not be held liable for damages in

excess of the amounts provided by Section 84.006 for any act or

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

or a caregiver or clinical professional providing services to the

entity if, for each person, the entity has:

(1) conducted timely criminal background checks 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 appropriate administrative or personnel

action in response to misconduct 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.

(b) An entity described by Section 264.170(a), Family Code,

may only be held vicariously liable by a claimant for the act or

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

or a caregiver or clinical professional providing services to the

entity if the claimant shows:

(1) the entity was not in substantial compliance with

a requirement described by Subsection (a);

(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 substantial factor in

bringing about the harm.

(c) Subsection (a) does not affect the liability of an

entity described by Section 264.170(a), Family Code, arising from

an act or omission by the entity that constitutes gross negligence.

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 FOSTER CARE OR

ADOPTION 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 state or a single source continuum

contractor to provide foster care or adoption 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 or clinical professional providing

services to 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

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.