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Signed Into Law
Signed May 29, 2025Effective 2025-05-29
HB3560

Regular Session

Relating to the licensing of mental hospitals and mental health facilities and the definition of facility for the purposes of the employee misconduct registry.

Government Affairs & Regulatory Compliance Analysis

HB3560: Government Affairs Overview

Effective immediately, Texas law expands the Employee Misconduct Registry (EMR) to include licensed mental hospitals and mental health facilities (Chapter 577). You are now statutorily prohibited from hiring unlicensed personnel listed in the EMR and must report any employee acts of abuse, neglect, or exploitation to the Health and Human Services Commission (HHSC).

Rep. Katrina Pierson·House Bill·Regular Session

Critical
Medium Cost
Effective:2025-05-29
Business Impact

Who HB3560 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: critical

Significant regulatory changes (effective 2025-05-29). Review with your legal and compliance teams to understand implications.

🏥

Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation

Key Operational Considerations

  • 1Pre-Employment "Hard Stop": HR must verify the employability of every unlicensed applicant (techs, aides, orderlies) by searching the public EMR database *before* extending an offer.
  • 2Internal Investigations: Train compliance staff on the new mandatory reporting threshold. If an internal investigation substantiates abuse, you no longer have discretion; you must report it to HHSC.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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HB3560
Relating to the licensing of mental hospitals and mental health facilities and the definition of facility for the purposes of the employee misconduct ...
Critical Urgency
Passed with Opposition
House Vote148 - 0
YEA
100% in favor148 voting
Senate Vote30 - 1
YEA
97% in favor31 voting
1
Total Opposition Votes
Cost Impact
Medium
Effective
2025-05-29
Enforcing Agencies
HHSC
Primary Author: Rep. Katrina Pierson
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: May 29, 2025 (Passed by supermajority, overriding the standard September 1 date).
  • Compliance Deadline: Immediate. You must integrate EMR checks into your hiring workflow today.
  • Agency Rulemaking: HHSC must update the EMR technology to accept Chapter 577 provider reports. Expect a "regulatory gray zone" where the statutory duty exists, but the online portal may not yet list your facility type.

Immediate Action Plan

  • 1. Hiring Freeze/Pause: Halt all unlicensed offers pending verification that your HR team has access to and is checking the EMR database.
  • 2. Update Checklists: Insert the EMR search step prior to the criminal background check phase in your Applicant Tracking System (ATS).
  • 3. Risk Audit: While not explicitly retroactive, run a batch EMR check on your *current* roster of unlicensed staff to eliminate latent liability.
  • 4. Notify Insurer: Contact your Employment Practices Liability Insurance (EPLI) carrier to ensure coverage includes defense costs for mandatory state reporting claims.
  • 5. Manual Reporting: If the HHSC portal is not updated to accept Chapter 577 reports immediately, file misconduct reports via certified mail to establish a compliance record.

Operational Changes Required

Contracts

  • Staffing Agencies: Update Master Service Agreements (MSAs) immediately. Require agencies to perform EMR checks for all placements and indemnify your facility for penalties arising from the placement of a barred individual.
  • Employment Agreements: Revise termination clauses to explicitly state that substantiated findings of abuse, neglect, or exploitation will result in a mandatory report to the state EMR, effectively barring future employment in the sector.

Hiring/Training

  • Pre-Employment "Hard Stop": HR must verify the employability of every unlicensed applicant (techs, aides, orderlies) by searching the public EMR database *before* extending an offer.
  • Internal Investigations: Train compliance staff on the new mandatory reporting threshold. If an internal investigation substantiates abuse, you no longer have discretion; you must report it to HHSC.

Reporting & Record-Keeping

  • Audit Trail: Place a time-stamped screenshot or printout of the "No Record Found" EMR search result in the permanent personnel file of every new hire.
  • License Applications: On your next initial or renewal application, you must provide the specific name and physical address of the "person responsible for daily operations" (e.g., Administrator or CEO).

Fees & Costs

  • Administrative Burden: Absorb the operational cost of additional background screenings and the legal costs associated with defending potential defamation claims from employees reported to the registry.
  • Liability: Failure to check the EMR constitutes negligence per se, likely voiding standard liability defenses in patient injury lawsuits.

Strategic Ambiguities & Considerations

  • The "Appropriation" Trigger: Section 3 states HHSC is only required to implement this if the legislature appropriates specific funding. The Fiscal Note estimates a $3.7M cost. If funding is delayed, HHSC enforcement may lag. Counsel: Do not rely on this technicality. Perform the checks to mitigate civil liability regardless of agency readiness.
  • "Person Responsible for Daily Operations": The statute requires this designation but does not define the role. To avoid administrative rejection of license applications, designate your highest-ranking non-clinical officer (CEO/Administrator) rather than a shift supervisor or medical director.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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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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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 28, 2025
Passed House
May 6, 2025
Passed Senate
May 19, 2025
Signed
May 29, 2025
Effective
May 29, 2025
TopicsHospitalsOccupational RegulationOccupational Regulation--health OccupationsCriminal RecordsMental Health & Substance AbuseHealth & Human Services Commission
03

House Authors

Rep. Katrina PiersonRepublican · Primary Author
Joint Authors

Senate Sponsor

Sen. Angela PaxtonRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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Related by Topic

View more Hospitals legislation
Quick Reference

Frequently Asked Questions

Common questions about HB3560

Q

What does Texas HB3560 do?

Effective immediately, Texas law expands the Employee Misconduct Registry (EMR) to include licensed mental hospitals and mental health facilities (Chapter 577). You are now statutorily prohibited from hiring unlicensed personnel listed in the EMR and must report any employee acts of abuse, neglect, or exploitation to the Health and Human Services Commission (HHSC).

Q

Who authored HB3560?

HB3560 was authored by Texas Representative Katrina Pierson during the Regular Session.

Q

When was HB3560 signed into law?

HB3560 was signed into law by Governor Greg Abbott on May 29, 2025.

Q

Which agencies enforce HB3560?

HB3560 is enforced by Health and Human Services Commission (HHSC).

Q

How significant are the changes in HB3560?

The regulatory priority for HB3560 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB3560?

The cost impact of HB3560 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does HB3560 address?

HB3560 addresses topics including hospitals, occupational regulation, occupational regulation--health occupations, criminal records and mental health & substance abuse.

Q

What are the key dates for HB3560?

Key dates for HB3560: Effective date is 2025-05-29. Consult with legal counsel regarding applicability.

Q

What are the penalties under HB3560?

HB3560 establishes the following penalties: administrative penalty of Variable (governed by Chapter 253 Health & Safety Code) for Hiring an individual listed in the Employee Misconduct Registry (EMR) or failing to report reportable conduct to the EMR.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by HB3560?

HB3560 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026