Relating to the contract requirements for a contract between a single source continuum contractor and the Department of Family and Protective Services.
ModeratePlan for compliance
Medium Cost
Effective:2025-06-20
Enforcing Agencies
Department of Family and Protective Services (DFPS)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Applies immediately to contracts entered into or modified on/after this date).
Compliance Deadline: The requirements trigger upon the execution of any new contract, renewal, extension, amendment, or modification. If you touch an existing contract after June 20, 2025, the entire agreement becomes subject to these new mandates.
Agency Rulemaking: While formal rulemaking is not explicitly mandated with a deadline, DFPS must develop the specific contract terms defining "financial interventions" and "high-quality service" immediately to incorporate them into upcoming renewals.
Immediate Action Plan
1.Audit Contract Dates: Identify all DFPS contracts and subcontracts up for renewal or modification after June 20, 2025.
2.Define "Financial Interventions": Legal counsel must draft redline language for upcoming negotiations to cap financial penalties and require a "notice and cure" period before funds are withheld.
3.Update Subcontracts: Draft an amendment for all downstream providers that explicitly requires compliance with court orders and indemnifies the SSCC against related DFPS penalties.
4.System Configuration: Update case management software to flag "Court Ordered" tasks as high-priority/mandatory fields that trigger alerts if not marked complete by the deadline.
Operational Changes Required
Contracts
Master Service Agreements (MSA): Legal teams must prepare for DFPS to insert non-negotiable clauses regarding court order compliance (Subsection 9) and financial penalties (Subsection 10).
Subcontractor Agreements: SSCCs must immediately amend contracts with Child Placing Agencies (CPAs) and other providers. You must flow down the requirement to comply with court orders and include indemnification clauses. If a subcontractor ignores a judge's order and DFPS penalizes the SSCC, the subcontractor must be contractually liable for that cost.
The "Amendment Trap": Do not sign *any* minor contract modification (e.g., a small scope change) without realizing it triggers the full weight of HB4129 on your existing MSA.
Hiring/Training
Court Liaison Protocols: Case management teams require training on the new legal weight of court orders. A missed visitation order or therapy mandate is no longer just a compliance ding; it is a breach of contract.
Rapid Response Teams: Establish a workflow to ingest court orders within 24 hours and assign them to specific personnel for execution.
Reporting & Record-Keeping
Judicial Order Logs: Maintain an auditable registry of all court orders received, including date of receipt, assigned owner, and date of compliance. This log is your primary defense against breach of contract claims.
Quality Improvement Plans (QIPs): QIPs are now tied to financial penalties. Documentation for QIPs must be data-driven and defensive, proving adherence to "high-quality service" metrics to avoid financial interventions.
Fees & Costs
Financial Interventions: The law authorizes DFPS to withhold payments or levy penalties for failure to meet quality standards. Budget for potential revenue volatility and increased legal reserves for contract disputes.
Strategic Ambiguities & Considerations
"Financial Interventions": The statute does not define the scope, cap, or trigger mechanism for these interventions. Is it a 1% withhold or a 10% clawback? This will be determined during contract negotiation.
"High-Quality Service": This term is subjective. If DFPS defines this using metrics outside of your control (e.g., judicial availability), you face unavoidable penalties. You must advocate for objective, achievable definitions in the contract exhibits.
"Applicable Court Orders": It is unclear if SSCCs are liable for orders issued in hearings where they were not present or properly noticed.
Need Help Understanding Implementation?
Our government affairs experts can walk you through this bill's specific impact on your operations.
Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
Current law requires the Department of Family and Protective Services (DFPS) to evaluate the performance of community-based care single source continuum contractors (SSCC) that serve children and families in Texas. The bill author has informed the committee that, while SSCC performance is evaluated on an ongoing basis in compliance with current law, DFPS has limited remedies available under current law to enforce compliance in an SSCC contract related to performance and currently uses methods of technical assistance, corrective action plans, increased monitoring through continuous quality improvement plans, or contract termination as remedies. The bill author has additionally informed the committee that financial remedies are only available when an SSCC has moved to Stage III of implementation, which occurs 18 months after the start of Stage II, but that DFPS should have the option to use additional dispute resolution methods when deficiencies in an SSCC's performance are identified. H.B. 4129 seeks to address this issue by allowing DFPS to implement formal measures to ensure an SSCC is delivering high-quality service, including quality improvement plans, financial interventions, and other appropriate interventions or restrictions.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 4129 amends the Family Code to include provisions that allow the Department of Family and Protective Services (DFPS) to implement formal measures to ensure a single source continuum contractor is delivering high-quality service, including quality improvement plans, financial interventions, and other appropriate interventions or restrictions, among the provisions required to be included in a contract between DFPS and such a contractor to provide community-based care services in a catchment area.
H.B. 4129 applies only to a contract entered into or amended, modified, renewed, or extended on after the bill's effective date. A contract entered into or amended, modified, renewed, or extended before the bill's effective date is governed by the law in effect on the date the contract was entered into or amended, modified, renewed, or extended, and the former law is continued in effect for that purpose.
Honorable Lacey Hull, Chair, House Committee on Human Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4129 by Davis, Aicha (Relating to the contract requirements for a contract between a single source continuum contractor and the Department of Family and Protective Services.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would allow the Department of Family and Protective Services to implement formal measures to ensure contactors provide high-quality services.
It is assumed that any costs to the Department of Family and Protective Services could be absorbed within existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
530 Family and Protective Services, Department of
LBB Staff:
JMc, NPe, ER, AN
Related Legislation
Explore more bills from this author and on related topics
HB4129 fundamentally alters the risk profile for Single Source Continuum Contractors (SSCCs) by converting judicial orders regarding specific children into strict contractual deliverables. The law mandates that all future DFPS contracts include provisions authorizing "financial interventions" for service failures and treating non-compliance with court orders as a breach of contract. This creates a direct line of liability from a judge’s bench to the SSCC’s balance sheet, necessitating immediate updates to downstream provider agreements.
Q
Who authored HB4129?
HB4129 was authored by Texas Representative Aicha Davis during the Regular Session.
Q
When was HB4129 signed into law?
HB4129 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB4129?
HB4129 is enforced by Department of Family and Protective Services (DFPS).
Q
How urgent is compliance with HB4129?
The compliance urgency for HB4129 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB4129?
The cost impact of HB4129 is estimated as "medium". This may vary based on industry and implementation requirements.
Q
What topics does HB4129 address?
HB4129 addresses topics including family, family--child protection, contractors & subcontractors and family & protective services, department of.
Legislative data provided by LegiScanLast updated: November 25, 2025
Need Strategic Guidance on This Bill?
Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.
