Limits lawsuits against nonprofits helping foster and at-risk children if they can prove due diligence.

This bill would shield certain nonprofit organizations that contract with the Tennessee Department of Children’s Services (DCS) to provide community-based or child welfare services from being sued for damages caused by the acts or omissions of their employees, volunteers, or associated caregivers—so long as the nonprofit meets specified due-diligence requirements. Those requirements include timely criminal background checks, regular inspections of state abuse registries, mandatory reporting of misconduct, proportionate personnel actions in the face of performance deficiencies, and periodic child-abuse prevention and reporting training. If a nonprofit fails to comply substantially with these duties, or if its gross negligence is proven, it remains fully liable. The immunity does not bar other claims authorized by state or federal law, nor does it limit governmental regulatory or prosecutorial actions against the entity. The measure takes effect July 1, 2026, and has no significant fiscal impact on the state’s courts.