Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB1398

Regular Session

Relating to certain procedures in a suit affecting the parent-child relationship for a child placed in the conservatorship of the Department of Family and Protective Services and the provision of family preservation services and community-based foster care.

Government Affairs & Regulatory Compliance Analysis

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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 SB1398

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What does Texas SB1398 do?

SB 1398 fundamentally alters the financial and operational risk profile for Single Source Continuum Contractors (SSCCs) by mandating a transition to capitated (risk-based) funding and enforcing strict "no-refusal" protocols for child placement. This legislation shifts significant financial liability from the state to contractors and requires immediate standardization of caregiver training reciprocity and corporate transparency.

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Who authored SB1398?

SB1398 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

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When was SB1398 signed into law?

SB1398 was signed into law by Governor Greg Abbott on June 20, 2025.

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Which agencies enforce SB1398?

SB1398 is enforced by Department of Family and Protective Services (DFPS), State Auditor (Biennial Reviews) and Texas Civil Courts (Family Law).

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How significant are the changes in SB1398?

The regulatory priority for SB1398 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

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What is the cost impact of SB1398?

The cost impact of SB1398 is estimated as "high". This may vary based on industry and implementation requirements.

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What topics does SB1398 address?

SB1398 addresses topics including family, family--child protection, family--parent & child, purchasing and purchasing--state.

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What are the key dates for SB1398?

Key dates for SB1398: Effective date is 2025-09-01. Rulemaking: Define 'respite' and 'overnight care' providers by rule to facilitate license reciprocity (Section 12 / Sec. 264.155(a)(3)). (Prior to contract execution/amendment). Consult with legal counsel regarding applicability.

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What are the penalties under SB1398?

SB1398 establishes the following penalties: administrative/contractual penalty of Unspecified financial remedies for Single Source Continuum Contractor (SSCC) failure to meet performance outcomes, contract requirements, deliverables, or court orders (Section 12 / Sec. 264.155(a)(6)(B)).; administrative penalty of Corrective Action Plan / Escalating Interventions for Identified deficiencies in the provision of services by an SSCC (Section 12 / Sec. 264.155(a)(6)(D)).. Consult with legal counsel for specific applicability to your situation.

Legislative data provided by LegiScanLast updated: January 11, 2026