A receiver must follow the appointing court’s orders, protect children’s welfare, manage receivership money in a separate account, coordinate with the department if not a department employee, and make reasonable efforts to keep the community-based care program operating.
Sec. 264.194. POWERS AND DUTIES OF RECEIVER. (a) A receiver appointed under this subchapter shall take all actions: (1) ordered by the appointing court; and (2) necessary to ensure the continued health, safety, and welfare of children under the conservatorship of the department in the care of the single-source continuum contractor under receivership, which may include: (A) taking actions reasonably necessary to protect or conserve the assets or property of the contractor; (B) using of the property of the contractor for the provision of care and services to children under the conservatorship of the department and their families in the applicable catchment area; (C) entering into contracts with or hiring agents or employees to carry out the powers and duties of the receiver; (D) directing, managing, hiring, or discharging employees or agents of the contractor; and (E) honoring leases, mortgages, and contractual obligations of the contractor as those payments become due during the period of the receivership. (b) Notwithstanding any other law and to ensure continuous provision of necessary services to children under the conservatorship of the department and their families, a contract entered into by a receiver acting in accordance with the receiver's duties under this section is not subject to advertising, competitive bidding, or proposal evaluation requirements. (c) A receiver shall compensate an employee hired in accordance with this section at a rate of compensation, including benefits, approved by the appointing court. (d) A receiver may petition the appointing court for temporary relief from obligations under a contract entered into by the single-source continuum contractor under receivership if: (1) the rent, price, or rate of interest substantially exceeds a reasonable rent, price, or rate of interest at the time the contractor entered into the contract; or (2) any material provision of the contract is unreasonable when compared to contracts negotiated under similar conditions. (e) Any relief granted by a court under Subsection (d) is limited to the life of the receivership, unless otherwise determined by the court. (f) A receiver appointed under this subchapter shall deposit all money related to the receivership in a separate account and shall use that account for all disbursements related to the receivership. A payment to a receiver of a sum owed to the single-source continuum contractor under receivership shall be considered a payment to the contractor with respect to the discharge of the obligation. (g) A receiver who is not a department employee shall coordinate with the department to ensure: (1) the continued health, safety, and welfare of the children in the department's conservatorship; and (2) compliance with all state and federal laws relating to child welfare. (h) A receiver shall make a reasonable effort to facilitate the continued operation of the community-based care program under Subchapter B-1 in the applicable catchment area. Added by Acts 2025, 89th Leg., R.S., Ch. 73 (S.B. 2034), Sec. 2, eff. May 19, 2025.