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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB4129

Regular Session

Relating to the contract requirements for a contract between a single source continuum contractor and the Department of Family and Protective Services.

Government Affairs & Regulatory Compliance Analysis

HB4129: Government Affairs Overview

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.

Rep. Aicha Davis·House Bill·Regular Session

Moderate
Medium Cost
Effective:2025-06-20
Business Impact

Who HB4129 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.

🏗️

Construction

Affected business types:

  • General contractors
  • Specialty contractors
  • Construction firms
  • Building developers
View all construction legislation

Key Operational Considerations

  • 1Master 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).
  • 2The "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.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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HB4129
Relating to the contract requirements for a contract between a single source continuum contractor and the Department of Family and Protective Services...
Moderate Urgency
Unanimous Passage
House Vote135 - 0
YEA
100% in favor135 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
Cost Impact
Medium
Effective
2025-06-20
Enforcing Agencies
DFPS
Primary Author: Rep. Aicha Davis
89th Texas Legislature
jdkey.com
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.

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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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 10, 2025
Passed House
Apr 30, 2025
Passed Senate
May 25, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsFamilyFamily--child ProtectionContractors & SubcontractorsFamily & Protective Services, Department of
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House Authors

Rep. Aicha DavisDemocrat · Primary Author
Joint Authors

Senate Sponsor

Sen. Angela PaxtonRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB4129

Q

What does Texas HB4129 do?

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 significant are the changes in HB4129?

The regulatory priority for HB4129 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

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.

Q

What are the key dates for HB4129?

Key dates for HB4129: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

What are the penalties under HB4129?

HB4129 establishes the following penalties: administrative/contractual penalty of Unspecified 'financial interventions' or 'restrictions' for Failure to deliver high-quality service as determined by DFPS formal measures.; contractual penalty of Contract breach/enforcement for Failure to comply with applicable court orders regarding a specific child or orders imposing requirements on the department related to contractor functions.. Consult with legal counsel for specific applicability to your situation.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026