Regular Session
Government Affairs & Regulatory Compliance Analysis
HB4454 fundamentally alters the business model for mental health and chemical dependency facilities by criminalizing "indirect" and "covert" payments for patient solicitation and eliminating the "lead generation" regulatory gray area. Facilities must immediately implement strict transparency protocols regarding how patients are acquired and how marketers are compensated, as the law takes effect immediately due to a supermajority vote.
Rep. Hubert Vo·House Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.
Affected business types:
mediumModerate costs expected for implementation.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with 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.
Schedule a ConsultationInformation 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.
This bill's path through the Texas Legislature
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Common questions about HB4454
HB4454 fundamentally alters the business model for mental health and chemical dependency facilities by criminalizing "indirect" and "covert" payments for patient solicitation and eliminating the "lead generation" regulatory gray area. Facilities must immediately implement strict transparency protocols regarding how patients are acquired and how marketers are compensated, as the law takes effect immediately due to a supermajority vote.
HB4454 was authored by Texas Representative Hubert Vo during the Regular Session.
HB4454 was signed into law by Governor Greg Abbott on June 20, 2025.
HB4454 is enforced by County Attorneys (Criminal/Civil), District Attorneys (Criminal), Health and Human Services Commission (Administrative/Task Force Oversight) and Office of the Attorney General (Civil/Injunctive).
The regulatory priority for HB4454 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB4454 is estimated as "medium". This may vary based on industry and implementation requirements.
HB4454 addresses topics including crimes, crimes--against persons, crimes--against persons--general, electronic information systems and health care providers.
Key dates for HB4454: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.
HB4454 establishes the following penalties: civil penalty of Minimum $2,000 (increased from $1,000) to Maximum $25,000 per violation for Violation of Health and Safety Code Chapter 164 (Treatment Facilities Marketing Practices Act), including false advertising or failure to disclose affiliations.; criminal penalty of Varies by offense classification (Class A Misdemeanor to Felony depending on value) for Occupations Code Ch. 102 expansion: Now explicitly criminalizes accepting 'benefits' or 'commissions' (not just cash) and 'indirect' or 'covert' payments for patient solicitation.. Consult with legal counsel for specific applicability to your situation.
HB4454 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
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.
