House Bill No. 4131 amends the Civil Practice and Remedies Code and introduces a new subchapter in the Family Code that establishes a framework for the receivership of single-source continuum contractors providing child welfare services. The bill empowers courts 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 details the appointment process, requiring an evidentiary hearing within five days of a petition, and outlines the receiver's powers and responsibilities, including ensuring child safety, managing assets, and entering contracts without competitive bidding. The bill also clarifies that the appointment of a receiver does not relieve contractors or their employees of any civil or criminal liabilities incurred prior to the receivership.

Furthermore, the bill introduces provisions for the management and termination of receiverships, allowing contractors under receivership to sell or lease facilities with court approval. It specifies conditions for terminating a receivership, such as the resolution of the issues that led to its establishment or the readiness of a new contractor to take over responsibilities. Additionally, the bill requires the receiver to submit a detailed sworn account to the court clerk within 60 days following the termination or expiration of the receivership, documenting all financial transactions and property management during the period. The bill is set to take effect immediately upon a two-thirds legislative vote 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)
House Committee Report: Civil Practice and Remedies Code 64.001 (Civil Practice and Remedies Code 64)