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

Contracts

• Upstream (State): Any modification to your existing SSCC contract after September 1, 2025, retroactively applies the 180-day notice requirement.
• Downstream (Subcontractors): You must amend Master Service Agreements (MSAs) with Child Placing Agencies (CPAs) and other providers. Currently, most allow for 30-60 day termination. This creates a liability gap. You must extend subcontractor notice periods to 180 days to ensure you maintain a provider network during the mandatory six-month wind-down.

Hiring/Training

• Retention Strategy: HR must develop "stay bonuses" or retention plans for the 180-day transition period. Maintaining staff morale and preventing mass exodus after a termination notice is served is now a contractual performance requirement.

Reporting & Record-Keeping

• Dual Notice Protocol: Legal notice templates must be updated immediately. The law requires notice of intent to terminate be sent to both the Department of Family and Protective Services (DFPS) and the Health and Human Services Commission (HHSC). Failure to notify HHSC specifically may render the notice defective.

Fees & Costs

• Liquidity Reserves: Finance departments must adjust risk models to account for six months of full operating costs (payroll, vendor payments, insurance) post-termination notice.
• Insurance Tails: Professional Liability and D&O policies must be reviewed to ensure coverage extends through the full 180-day transition period, particularly if termination is for cause.