S.B. No. 2034 amends the Civil Practice and Remedies Code and introduces a new subchapter in the Family Code that addresses the receivership of single-source continuum contractors providing child welfare services. The bill empowers a court to appoint a receiver for these contractors under specific circumstances, such as inadequate performance under community-based care contracts, threats to children's health and safety, or financial instability. It establishes a process for appointing a receiver, which includes a court hearing within five days of a petition and requires the department to notify the contractor of the hearing. The bill also delineates the receiver's responsibilities, which include ensuring the welfare of children, managing assets, and entering contracts without standard bidding processes. The receivership is set to last for 90 days unless extended, and the contractor is responsible for the receiver's compensation.

Furthermore, the bill outlines the management and termination of receiverships, allowing contractors to sell or lease facilities with court approval. It specifies conditions for terminating a receivership, such as the court's finding that it is no longer necessary or the readiness of the department to take over the contractor's duties. Additionally, within 60 days of a receivership's termination or expiration, the receiver must submit a detailed sworn account to the court clerk, documenting all property, funds, and expenses related to the receivership. The bill is designed to take effect immediately upon a two-thirds vote from both legislative houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Civil Practice and Remedies Code 64.001 (Civil Practice and Remedies Code 64)
Senate Committee Report: Civil Practice and Remedies Code 64.001 (Civil Practice and Remedies Code 64)