LIABILITY OF SINGLE SOURCE CONTINUUM CONTRACTORS OR CERTAIN NONPROFIT ENTITIES PROVIDING COMMUNITY-BASED CARE OR CHILD WELFARE SERVICES.

(a) This section applies only to an entity described by Section 264.170(a), Family Code.

(b) Subject to Subsection (c) and except as provided by Subsection (d), an entity may not be held liable for damages resulting from an act or omission of a person who is an employee or volunteer of the entity or a caregiver providing services on behalf of the entity if, at the time of the act or omission giving rise to the claim, the entity has:

(1) conducted timely criminal background checks for the person as required by law;

(2) before hiring, contracting with, or otherwise enlisting the services of the person and then at least once every five years, confirmed the person is not listed in a state registry or database that indicates the person is ineligible to supervise or treat children;

(3) reported any known allegation of misconduct by the person as required by law;

(4) taken timely and proportionate administrative or personnel action in response to deficiency in the performance of duties by the person; and

(5) required the person to complete training for:

(A) child sexual abuse prevention at least once every five years; and

(B) the reporting of child abuse and neglect.

(c) An entity may be held vicariously liable by a claimant on the basis of services received from the entity for the act or omission of a person who is an employee or volunteer of the entity or a caregiver providing services on behalf of the entity only if the claimant shows:

(1) the entity was not in substantial compliance with a requirement described by Subsection (b) at the time of the act or omission giving rise to the claim;

(2) the requirement was designed to prevent the specific type of harm alleged to have occurred; and

(3) the entity's failure to be in substantial compliance with the requirement was a contributing factor in bringing about the harm.

(d) Subsection (b) does not affect the liability of an entity for damages resulting from the gross negligence of the entity.

(e) This section may not be construed to limit:

(1) the liability of an entity for a claim otherwise authorized by state or federal law; or

(2) the ability of a governmental entity to take administrative, regulatory, or prosecutorial action against an entity described by Section 264.170(a), Family Code.