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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB4623

Regular Session

Relating to liability of public schools and professional school employees for sexual misconduct involving students.

Government Affairs & Regulatory Compliance Analysis

HB4623: Government Affairs Overview

HB4623 fundamentally alters the risk landscape for public education vendors by abolishing official immunity for professional school employees and waiving governmental immunity for schools regarding sexual misconduct and failure to report abuse. This legislation creates immediate civil liability exposure for private staffing agencies, transportation vendors, and educational service providers, with damages capped at $500,000 per claimant plus uncapped attorney's fees.

Rep. Mitch Little·House Bill·Regular Session

Critical
High Cost
Effective:2025-06-20
Enforcing Agencies

Texas Civil Courts

Business Impact

Who HB4623 Affects

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

Regulatory Priority: critical

Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.

🎓

Education

Affected business types:

  • School districts
  • Charter schools
  • Private schools
  • Education service providers
View all education legislation

Key Operational Considerations

  • 1Indemnification: Expect School Districts (ISDs) to amend Master Service Agreements (MSAs) to require vendors to indemnify the district for acts of vendor employees.
  • 2Subcontractors: You must update contracts with your own subcontractors (e.g., independent drivers, third-party staffing) to mirror these liability flows.
  • 3Legal Representation: Determine policy on joint defense. The law requires the employee to be named as a defendant; conflicts of interest between the firm and the employee will arise.
  • 4Enhanced Vetting: Standard background checks are insufficient defense against "gross negligence." You must verify references and check the TEA "Do Not Hire" registry for all deployed staff.

Estimated Cost Impact

highSignificant operational investment may be required.

Enforcing Agencies

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HB4623
Relating to liability of public schools and professional school employees for sexual misconduct involving students.
Critical Urgency
Passed with Opposition
House Vote109 - 19
YEA
85% in favor128 voting
Senate Vote30 - 1
YEA
97% in favor31 voting
20
Total Opposition Votes
Cost Impact
High
Effective
2025-06-20
Enforcing Agencies
Texas Civil Courts
Primary Author: Rep. Mitch Little
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 (Immediate effect due to supermajority vote).
  • Compliance Deadline: June 20, 2025. Liability applies to any act or omission occurring on or after this date. You must audit current staff immediately.
  • Agency Rulemaking: None. This is a statutory change enforced through civil litigation. Case law will define the boundaries of "gross negligence" over the coming years.

Immediate Action Plan

  • 1. Insurance Audit: Contact your broker immediately to verify Sexual Abuse and Molestation (SAM) coverage limits and defense cost provisions.
  • 2. Personnel Audit: Review files for all staff currently deployed to schools. If a background check is older than 12 months or lacks reference verification, re-screen immediately.
  • 3. Deploy Training: Issue a mandatory training module on Child Abuse Reporting (Family Code 261.101) to all employees before June 20, 2025.
  • 4. Legal Review: Instruct corporate counsel to prepare for potential conflicts of interest regarding employee representation in future litigation.

Operational Changes Required

Contracts

  • Indemnification: Expect School Districts (ISDs) to amend Master Service Agreements (MSAs) to require vendors to indemnify the district for acts of vendor employees.
  • Subcontractors: You must update contracts with your own subcontractors (e.g., independent drivers, third-party staffing) to mirror these liability flows.
  • Legal Representation: Determine policy on joint defense. The law requires the employee to be named as a defendant; conflicts of interest between the firm and the employee will arise.

Hiring/Training

  • Enhanced Vetting: Standard background checks are insufficient defense against "gross negligence." You must verify references and check the TEA "Do Not Hire" registry for all deployed staff.
  • Mandatory Reporting: You must train all deployed staff on Texas Family Code Sec. 261.101 (duty to report abuse). Failure to report is now a direct trigger for civil liability.
  • Definition of "Teacher": The law applies to "teachers employed by a company." Treat any employee with instructional duties or student supervision as falling under this statute.

Reporting & Record-Keeping

  • Training Logs: Maintain signed acknowledgments of sexual misconduct prevention and mandatory reporter training.
  • Incident Logs: Create a permanent record of *every* complaint regarding employee conduct with a minor, regardless of how minor it seems. Failure to document and investigate establishes a pattern of recklessness.

Fees & Costs

  • Insurance Premiums: General Liability policies often exclude Sexual Abuse and Molestation (SAM). You must purchase specific SAM endorsements or standalone policies immediately.
  • Litigation Costs: The statute awards "reasonable and necessary attorney’s fees" to prevailing plaintiffs. These fees are uncapped and are in addition to the $500,000 damages cap.

Strategic Ambiguities & Considerations

  • "Teacher" Scope: The statute applies to a "teacher employed by a company" but does not define "teacher" in the private vendor context. It is unclear if this extends to tutors, coaches, or after-school program leaders. Guidance: Adopt a conservative approach and assume any instructional staff member is covered.
  • Gross Negligence Threshold: Plaintiffs will attempt to frame *any* gap in hiring documentation (e.g., a missed reference check) as "gross negligence" to bypass immunity. The courts have not yet set the evidentiary standard for this specific statute.

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 12, 2025
Passed House
May 14, 2025
Passed Senate
May 27, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsCivil Remedies & LiabilitiesEducationEducation--primary & SecondaryEducation--primary & Secondary--other School PersonnelEducation--primary & Secondary--teachersMinorsMinors--health & SafetyChild AbuseSexual MisconductMinors--crimes Against
03

House Authors

Rep. Mitch LittleRepublican · Primary Author
Joint Authors
Coauthors (42)

Senate Sponsors

Sen. Angela PaxtonRepublican · Primary Sponsor
Cosponsors (18)

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

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Quick Reference

Frequently Asked Questions

Common questions about HB4623

Q

What does Texas HB4623 do?

HB4623 fundamentally alters the risk landscape for public education vendors by abolishing official immunity for professional school employees and waiving governmental immunity for schools regarding sexual misconduct and failure to report abuse. This legislation creates immediate civil liability exposure for private staffing agencies, transportation vendors, and educational service providers, with damages capped at $500,000 per claimant plus uncapped attorney's fees.

Q

Who authored HB4623?

HB4623 was authored by Texas Representative Mitch Little during the Regular Session.

Q

When was HB4623 signed into law?

HB4623 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB4623?

HB4623 is enforced by Texas Civil Courts.

Q

How significant are the changes in HB4623?

The regulatory priority for HB4623 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB4623?

The cost impact of HB4623 is estimated as "high". This may vary based on industry and implementation requirements.

Q

What topics does HB4623 address?

HB4623 addresses topics including civil remedies & liabilities, education, education--primary & secondary, education--primary & secondary--other school personnel and education--primary & secondary--teachers.

Q

What are the key dates for HB4623?

Key dates for HB4623: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

What are the penalties under HB4623?

HB4623 establishes the following penalties: civil penalty of Up to $500,000 per claimant (Actual Damages) + Attorney's Fees + Court Costs for Public school gross negligence, recklessness, or intentional misconduct in hiring/supervising an employee who commits sexual misconduct or fails to report child abuse.; civil penalty of Joint and Several Liability for Professional school employees (including contractors and bus drivers) are personally liable alongside the school district; official immunity is abolished for these claims.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by HB4623?

HB4623 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