Relating to the civil liability of nonprofit entities.
Summary
HB 4724 would expand and clarify civil liability protections for certain nonprofit entities that provide foster care or adoption services in Texas, including nonprofits acting as single source continuum contractors and related personnel such as employees, volunteers, caregivers, and clinical professionals. The bill amends the Family Code to state that these entities are treated as charitable organizations for purposes of Chapter 84 of the Civil Practice and Remedies Code, which limits liability, so long as the services at issue are within the scope of the contract and the required insurance coverage is in place.
The bill also adds a new Civil Practice and Remedies Code provision that further limits when these nonprofits can be held liable for acts or omissions of their personnel. To receive the liability cap, the entity must have conducted required criminal background checks, checked relevant state registries, reported known misconduct, taken appropriate administrative or personnel action, and required child-abuse-prevention and reporting training. Even then, a claimant may only recover beyond the statutory limits if the nonprofit was not in substantial compliance with a requirement designed to prevent the specific harm and that failure was a substantial factor in causing the injury. The bill preserves liability for the nonprofit’s own gross negligence.
Impact
HB 4724 would amend Chapter 84 of the Civil Practice and Remedies Code and Section 264.170 of the Family Code to extend charitable-liability protections to certain foster care and adoption service nonprofits and their related workers. It would effectively cap damages for qualifying entities and create a more specific standard for vicarious liability claims tied to employee, volunteer, caregiver, or clinical professional misconduct. The changes would apply only to causes of action accruing on or after September 1, 2025.
Sentiment
No committee transcript or vote record was provided, so there is no direct evidence of debate or recorded support/opposition in the available materials. Based on the bill text, the measure appears designed to support nonprofit foster care and adoption providers by reducing litigation exposure while preserving liability for gross negligence and for failures to meet key child-safety compliance requirements.
Contention
The likely point of contention is the balance between protecting nonprofit foster care and adoption providers from large damage awards and preserving remedies for children and families harmed by misconduct. Supporters would likely emphasize stability for providers, recruitment and retention of caregivers and professionals, and alignment with existing charitable-immunity limits. Critics would likely focus on whether the bill makes it harder for injured parties to recover damages, especially where harm results from inadequate screening, training, or response to misconduct, and whether the liability shield is too broad for entities serving vulnerable children.
Relating to the liability of nonprofit entities contracted with the Department of Family and Protective Services or with a single source continuum contractor to provide community-based care or child welfare services.
Relating to the liability of nonprofit entities contracted with the Department of Family and Protective Services or with a single source continuum contractor to provide community-based care or child welfare services.