Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB1589

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

Business Impact

Who SB1589 Affects

Regulatory Priority: critical

Significant regulatory changes (effective 2025-09-01). 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 SB1589

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What does Texas SB1589 do?

SB 1589 fundamentally alters the risk profile for Community-Based Care (CBC) by granting the Department of Family and Protective Services (DFPS) unilateral "sole discretion" to reclaim case management authority from Single Source Continuum Contractors (SSCCs). Furthermore, it codifies judicial orders regarding children or departmental requirements as strict contractual obligations, meaning a failure to follow a court order is now a material breach of your Master Services Agreement.

Q

Who authored SB1589?

SB1589 was authored by Texas Senator Kelly Hancock during the Regular Session.

Q

When was SB1589 signed into law?

SB1589 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1589?

SB1589 is enforced by Department of Family and Protective Services (DFPS).

Q

How significant are the changes in SB1589?

The regulatory priority for SB1589 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1589?

The cost impact of SB1589 is estimated as "high". This may vary based on industry and implementation requirements.

Q

What topics does SB1589 address?

SB1589 addresses topics including family, family--child protection, family & protective services, department of and contractors & subcontractors.

Q

What are the key dates for SB1589?

Key dates for SB1589: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB1589?

SB1589 establishes the following penalties: Contractual/Administrative penalty of Loss of revenue associated with reclaimed or transferred cases (variable) for DFPS exercises 'sole discretion' to reclaim case management authority or transfer cases to a competitor (typically triggered by performance issues, though statutory language allows broad discretion).. Consult with legal counsel for specific applicability to your situation.

Legislative data provided by LegiScanLast updated: January 11, 2026