S.B. No. 2034 establishes a framework for the receivership of single-source continuum contractors providing child welfare services in Texas. It amends Section 64.001(a) of the Civil Practice and Remedies Code to empower courts to appoint receivers for these contractors under the newly created Subchapter B-2 of Chapter 264 in the Family Code. This subchapter outlines the conditions for appointing a receiver, which include failure to meet community-based care contract obligations, threats to children's health and safety, and financial instability. The bill also details the appointment process, requiring a court hearing within five days of a petition and specifying the criteria for granting such petitions.

Furthermore, the bill delineates the powers and responsibilities of the appointed receiver, including the management of the contractor's assets and ensuring the welfare of children in care, while allowing the receiver to enter contracts without standard bidding processes. It also addresses the compensation and liability protections for the receiver, as well as the contractor's obligations during receivership. The bill includes provisions for the management and termination of receiverships, allowing contractors to sell or lease facilities with court approval and stipulating conditions for termination. Additionally, it mandates that receivers file a detailed account of their activities within 60 days of the receivership's conclusion. The bill is set 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)
Engrossed: Civil Practice and Remedies Code 64.001 (Civil Practice and Remedies Code 64)
House Committee Report: Civil Practice and Remedies Code 64.001 (Civil Practice and Remedies Code 64)
Enrolled: Civil Practice and Remedies Code 64.001 (Civil Practice and Remedies Code 64)