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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB3801

Regular Session

Relating to the establishment of the Health Professions Workforce Coordinating Council and a workgroup on nursing career pathways and the abolition of the statewide health coordinating council and the nursing advisory committee of that council.

Government Affairs & Regulatory Compliance Analysis

HB3801: Government Affairs Overview

HB3801 immediately abolishes the Statewide Health Coordinating Council (SHCC) and replaces it with the Health Professions Workforce Coordinating Council (HPWCC). This restructuring fundamentally alters how Texas designates "critical shortage areas," which directly dictates eligibility for state recruitment grants, loan repayment funds, and tuition reimbursement for your healthcare staff.

Rep. Angelia Orr·House Bill·Regular Session

Moderate
Low Cost
Effective:2025-06-20
Enforcing Agencies

Department of State Health Services (DSHS) • Health Professions Workforce Coordinating Council (HPWCC)

Business Impact

Who HB3801 Affects

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

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.

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Healthcare

Affected business types:

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

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB3801
Relating to the establishment of the Health Professions Workforce Coordinating Council and a workgroup on nursing career pathways and the abolition of...
Moderate Urgency
Heavily Contested
House Vote110 - 36
YEA
NAY
75% in favor146 voting
Senate Vote25 - 6
YEA
NAY
81% in favor31 voting
42
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
DSHSHPWCC
Primary Author: Rep. Angelia Orr
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Passed with supermajority; immediate effect).
  • Compliance Deadline: October 1, 2026 (Publication of first Strategic Plan). However, internal HR data tracking must be updated immediately to prepare for upcoming reporting cycles.
  • Agency Rulemaking: The Department of State Health Services (DSHS) and licensing boards (TMB, TBN) will engage in rulemaking between Late 2025 and Mid-2026 to define new data collection parameters required by the HPWCC.

Immediate Action Plan

  • 1. Contract Review: General Counsel must immediately scan employment agreements for references to the abolished "Statewide Health Coordinating Council" and draft addendums.
  • 2. Update HR Intake: Modify applicant tracking systems to specifically capture military medical experience in anticipation of the Dec 2026 credit-transfer rules.
  • 3. Monitor Appointments: Track the Governor’s and Agency appointments to the HPWCC in October 2025. The composition of this board will signal whether the state will focus on education (producing graduates) or retention (regulating work environments).
  • 4. Data Prep: Instruct HR to aggregate vacancy and turnover data now to prevent a scramble during the next facility license renewal.

Operational Changes Required

Contracts

  • Loan Repayment Agreements: Audit all employment contracts offering state loan repayment assistance. If your contracts specifically reference the "Statewide Health Coordinating Council" as the designating authority for shortage areas, amend them immediately to reference the "Health Professions Workforce Coordinating Council" or "state-designated shortage areas" to prevent enforceability disputes.
  • Staffing Vendor Agreements: Review agreements regarding nurse aides and technicians. The new "Gateway Professions" focus may alter certification standards; ensure vendors are contractually obligated to meet *current* standards to avoid liability during this transition.

Hiring/Training

  • Military Credentialing: HR Directors must update hiring protocols to flag applicants with military medical experience. The law mandates a pathway to credit military training toward nursing licensure; you may soon be able to fast-track these hires into higher-level clinical roles.
  • Gateway Professions: Anticipate new clinical rotation requests. The state is prioritizing pathways for Nurse Aides and Techs. Facilities should prepare to expand clinical sites for these lower-level certifications to secure future workforce pipelines.

Reporting & Record-Keeping

  • Data Collection: The law repeals the specific statutory authority for civil penalties regarding failure to report data (repeal of Chapter 104, Health & Safety Code). However, do not cease reporting. The enforcing agencies will likely integrate these data demands into mandatory licensure renewals.
  • New Metrics: Configure HR information systems to track turnover rates, vacancy durations, and specific reasons for separation. The HPWCC is mandated to analyze "systemic causes" of shortages, and licensing boards will demand this granular data during your next renewal cycle.

Fees & Costs

  • No Direct Fee Increases: The Fiscal Note indicates costs will be absorbed by the General Revenue Fund.
  • Grant Eligibility Risk: Facilities currently receiving state workforce grants must verify they remain in a designated shortage area once the HPWCC publishes its new map in October 2026.

Strategic Ambiguities & Considerations

  • "Systemic Causes" Scope: The Council is required to identify "systemic causes of workforce shortages." It is currently unclear if this will result in intrusive inquiries regarding workplace safety, burnout rates, or compensation data. Watch the initial rulemaking closely for definitions of "systemic causes."
  • Data Enforcement Mechanisms: With the repeal of civil penalties for non-response to surveys, it is unclear how DSHS will enforce data collection. The agency may pivot to holding up license renewals for non-compliance, which is a more severe operational risk than a fine.

Need Compliance Guidance on This Legislation?

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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 5, 2025
Passed House
May 8, 2025
Passed Senate
May 25, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsGovernorHealth Care ProvidersHealthHealth--generalOccupational RegulationOccupational Regulation--health OccupationsState Agencies, Boards & CommissionsState Agencies, Boards & Commissions--newly ProposedBehavioral Health Executive Council, TexasChiropractic Examiners, Texas Board ofDental Examiners, State Board ofEducation Agency, TexasExecutive Council of Physical Therapy & Occupational Therapy ExaminersHealth & Human Services CommissionHealth Professions Workforce Coordinating CouncilHigher Education Coordinating Board, TexasMedical Board, TexasNursing, Texas Board ofPharmacy, Texas State Board ofState Health Services, Department ofStatewide Health Coordinating CouncilTexas Optometry BoardVeterinary Medical Examiners, State Board ofWorkforce Commission, TexasLaborLabor--workforce DevelopmentNurses & Nurse Aides
03

House Authors

Rep. Angelia OrrRepublican · Primary Author
Joint Authors

Senate Sponsors

Sen. Molly CookDemocrat · Primary Sponsor
Cosponsors (2)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Angelia Orr

View all bills by Rep. Angelia Orr

Related by Topic

View more Governor legislation
Quick Reference

Frequently Asked Questions

Common questions about HB3801

Q

What does Texas HB3801 do?

HB3801 immediately abolishes the Statewide Health Coordinating Council (SHCC) and replaces it with the Health Professions Workforce Coordinating Council (HPWCC). This restructuring fundamentally alters how Texas designates "critical shortage areas," which directly dictates eligibility for state recruitment grants, loan repayment funds, and tuition reimbursement for your healthcare staff.

Q

Who authored HB3801?

HB3801 was authored by Texas Representative Angelia Orr during the Regular Session.

Q

When was HB3801 signed into law?

HB3801 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB3801?

HB3801 is enforced by Department of State Health Services (DSHS) and Health Professions Workforce Coordinating Council (HPWCC).

Q

How significant are the changes in HB3801?

The regulatory priority for HB3801 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB3801?

The cost impact of HB3801 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB3801 address?

HB3801 addresses topics including governor, health care providers, health, health--general and occupational regulation.

Q

What are the key dates for HB3801?

Key dates for HB3801: Effective date is 2025-06-20. Rulemaking: Designate representatives to the new Health Professions Workforce Coordinating Council (HPWCC). (2025-10-01); Publish the initial Health Professions Strategic Plan (required biennially thereafter in even-numbered years). (2026-10-01). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB3801?

HB3801 primarily affects healthcare providers and medical facilities, employers and workforce development organizations. 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