H.B. No. 5364 establishes new provisions for the appointment of a receiver for single-source continuum contractors providing child welfare services in Texas. It amends Section 64.001(a) of the Civil Practice and Remedies Code to allow courts to appoint a receiver for these contractors under the newly added Subchapter B-2 of Chapter 264 of the Family Code. This subchapter outlines the conditions for appointing a receiver, such as failure to fulfill community-based care contracts or posing an imminent danger to children's health and safety. The bill also details the procedures for appointing a receiver, including a court hearing requirement within five days of a petition and the receiver's powers and responsibilities, which include managing operations and ensuring the welfare of children.

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 court's assessment that it is no longer needed or the readiness of the department to take over the contractor's duties. Additionally, it requires the receiver to file a comprehensive sworn account with the court clerk within 60 days of the receivership's termination, detailing all financial transactions and property management during the period. The bill is set to take effect immediately upon a two-thirds vote from both 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)