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

Government Affairs & Regulatory Compliance Analysis

Business Impact

Who HB5394 Affects

Regulatory Priority: critical

Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.

Estimated Cost Impact

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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Immediate Action Plan

Operational Changes Required

Strategic Ambiguities & Considerations

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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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Quick Reference

Frequently Asked Questions

Common questions about HB5394

Q

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.

Q

Who authored HB5394?

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

Q

When was HB5394 signed into law?

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

Q

Which agencies enforce HB5394?

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

Q

How significant are the changes in HB5394?

The regulatory priority for HB5394 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

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.

Q

What topics does HB5394 address?

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

Q

What are the key dates for HB5394?

Key dates for HB5394: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

What are the penalties under HB5394?

HB5394 establishes the following penalties: administrative/contractual penalty of Contract termination, licensure sanctions, or liability exposure for Subjecting relative or designated caregivers to requirements or policies not explicitly authorized by state law or HHSC/DFPS rule.. Consult with legal counsel for specific applicability to your situation.

Legislative data provided by LegiScanLast updated: January 11, 2026