HB5394

Regular Session

Relating to prohibiting single source continuum contractors and child-placing agencies from imposing certain requirements on or adopting certain policies and procedures related to relative and designated caregivers.

CriticalImmediate action required

Low Cost

Effective:2025-06-20

Enforcing Agencies

Department of Family and Protective Services (DFPS) • Health and Human Services Commission (HHSC)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).
Compliance Deadline: Immediate. All pending and future verifications for relative/designated caregivers must comply as of today. You must cease enforcing non-statutory requirements on current applicants immediately.
Agency Rulemaking: While the bill does not mandate new rulemaking, HHSC may eventually amend minimum standards to bridge safety gaps created by this restriction. Until such rules are formally adopted, you are restricted to the current Texas Administrative Code (TAC).

Immediate Action Plan

Immediate Audit: By close of business, scrub all relative/designated caregiver intake packets. Remove any form, signature, or inspection item not mandated by HHSC Minimum Standards.
Issue "Stop Work" Order: Direct licensing staff to immediately process any relative applications currently stalled solely due to agency-specific requirements.
Legal Review: Task in-house counsel with creating a "Statutory Cross-Walk" document that links every remaining verification step to a state law or rule.
Insurance Notification: Formally notify your carrier of the legislative change to document that your inability to enforce higher standards is a matter of law, not negligence.

Operational Changes Required

Contracts

SSCC-CPA Vendor Agreements: SSCCs must review subcontracts to ensure they do not contractually obligate CPAs to enforce standards on kinship homes that are now illegal under HB5394.
Caregiver Agreements: "Rights and Responsibilities" documents signed by relative caregivers must be redacted. Clauses requiring compliance with "all agency policies" are unenforceable if those policies exceed the TAC.

Hiring/Training

Caseworker Retraining: Staff must be retrained immediately to stop requesting discretionary documentation. Intake staff must shift from a "best practice" mindset to a "statutory compliance" mindset.
Scripting: Provide staff with scripts to explain to families why certain previously standard requirements (e.g., specific fire safety equipment not in TAC, extra training hours) are no longer mandatory.

Reporting & Record-Keeping

Citation Mapping: You must audit your kinship verification checklists. Every single item on the checklist must map to a specific citation in the Texas Family Code or Texas Administrative Code. If you cannot cite the state rule, you must remove the requirement.
Denial Justifications: You can no longer deny or delay a relative placement based on failure to meet agency-specific criteria. Denial documentation must explicitly reference a state violation.

Fees & Costs

Liability Insurance: There are no new state fees; however, you must contact your liability insurance carrier. You are now statutorily barred from enforcing risk management policies that exceed state minimums. This may impact your premiums or coverage terms regarding negligence claims.

Strategic Ambiguities & Considerations

The "Safety vs. Policy" Gap: The law prohibits "requirements," but does not clearly define how an agency should handle a unique safety hazard not explicitly codified in rule (e.g., a specific environmental danger not listed in minimum standards).
*Guidance:* If a unique hazard exists, document it as a general safety threat under Chapter 261 (neglect/abuse prevention) rather than a violation of agency policy.
"Voluntary" Compliance: It is unclear if agencies can suggest "voluntary" best practices.
*Warning:* Do not rely on this. If a "voluntary recommendation" is perceived as a prerequisite for licensure, regulators will likely view it as a prohibited "requirement."

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsFamily Family--child Protection Contractors & Subcontractors Foster Care

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

C.S.H.B. 5394

By: Rose

Human Services

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The Health and Human Services Commission (HHSC) collaborates with the Department of Family and Protective Services (DFPS) to develop and adopt different licensing rules or approval standards for relative or kinship foster family homes with the intent to facilitate more relative or kinship homes to qualify for full foster care payments. The state is also continuing to implement community-based foster care in which the state contracts with a single source continuum contractor (SSCC). The bill author has informed the committee that SSCCs enter contracts with the state that grant these entities broad authority to overlay rules or even preempt some rules promulgated in the Texas Administrative Code in order to shield themselves from liability or simply to conform with practices preferred by that SSCC. C.S.H.B. 5394 seeks to address this issue by prohibiting an SSCC or a child-placing agency from subjecting a kinship caregiver to requirements other than those provided by law or HHSC or DFPS rule.

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

C.S.H.B. 5394 amends the Family Code to prohibit a single source continuum contractor or a child-placing agency from doing the following:

·subjecting a relative or designated caregiver to any requirement other than as provided by law or Department of Family and Protective Services (DFPS) or Health and Human Services Commission (HHSC) rule; and

·adopting any policies or procedures related to a relative or designated caregiver other than as authorized by law or DFPS or HHSC rule.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 5394 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

While both the introduced and the substitute prohibit a child-placing agency from subjecting a relative or designated caregiver to any requirement other than as provided by law or DFPS or HHSC rule, the substitute also prohibits a single source continuum contractor from taking that action, whereas the introduced did not. Additionally, the substitute further prohibits a single source continuum contractor or a child-placing agency from adopting any policies or procedures related to a relative or designated caregiver other than as authorized by law or DFPS or HHSC rule.

House Authors

Rep. Toni RoseDemocrat · Primary Author

Senate Sponsor

Sen. Royce WestDemocrat · Primary Sponsor

Bill Text(with markup)

H.B. No. 5394

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to prohibiting single source continuum contractors and
	child-placing agencies from imposing certain requirements on or
	adopting certain policies and procedures related to relative and
	designated caregivers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 264.752, Family Code, is amended by
	adding Subsection (d) to read as follows:
	(d) A single source continuum contractor or a child-placing
	agency may not:
	(1) subject a relative or designated caregiver to any
	requirement other than as provided by law or department or Health
	and Human Services Commission rule; or
	(2) adopt any policies or procedures related to a
	relative or designated caregiver other than as authorized by law or
	department or Health and Human Services Commission rule.
	SECTION 2. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 20, 2025

TO:	Honorable Lacey Hull, Chair, House Committee on Human Services

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB5394 by Rose (Relating to prohibiting child-placing agencies from imposing certain requirements on relative and designated caregivers.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would prohibit a child placing agency from subjecting a relative or designated caregiver to any requirements not provided by law or department or Health and Human Services Commission rule.

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:

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Frequently Asked Questions

Common questions about HB5394

What does Texas HB5394 do?

HB5394 enacts an immediate statutory prohibition preventing Single Source Continuum Contractors (SSCCs) and Child-Placing Agencies (CPAs) from imposing any requirements on relative or designated caregivers that exceed state law or HHSC/DFPS administrative rules. This legislation effectively strips private agencies of the authority to enforce "agency-specific" best practices or risk-management policies on kinship families, mandating strict adherence to state minimums only. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).

Who authored HB5394?

HB5394 was authored by Texas Representative Toni Rose during the Regular Session.

When was HB5394 signed into law?

HB5394 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB5394?

HB5394 is enforced by Department of Family and Protective Services (DFPS) and Health and Human Services Commission (HHSC).

How urgent is compliance with HB5394?

The compliance urgency for HB5394 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB5394?

The cost impact of HB5394 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB5394 address?

HB5394 addresses topics including family, family--child protection, contractors & subcontractors and foster care.

Legislative data provided by LegiScanLast updated: November 25, 2025

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