Regular Session
Government Affairs & Regulatory Compliance Analysis
SB1188 mandates a fundamental restructuring of Electronic Health Record (EHR) systems in Texas, requiring strict US-only data residency, specific biological sex data fields, and mandatory disclosure of AI usage in diagnostics. This law affects all "Covered Entities" (practitioners, hospitals, clinics) and introduces a "three-strikes" license revocation penalty for repeated non-compliance.
Sen. Lois Kolkhorst·Senate Bill·Regular Session
Health and Human Services Commission (HHSC) • Texas Attorney General (Injunctive relief and civil penalties) • Texas Department of Insurance • Texas Department of Licensing and Regulation • Texas Medical Board
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.
Affected business types:
highSignificant operational investment may be required.
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 SB1188
SB1188 mandates a fundamental restructuring of Electronic Health Record (EHR) systems in Texas, requiring strict US-only data residency, specific biological sex data fields, and mandatory disclosure of AI usage in diagnostics. This law affects all "Covered Entities" (practitioners, hospitals, clinics) and introduces a "three-strikes" license revocation penalty for repeated non-compliance.
SB1188 was authored by Texas Senator Lois Kolkhorst during the Regular Session.
SB1188 was signed into law by Governor Greg Abbott on June 20, 2025.
SB1188 is enforced by Health and Human Services Commission (HHSC), Texas Attorney General (Injunctive relief and civil penalties), Texas Department of Insurance, Texas Department of Licensing and Regulation and Texas Medical Board.
The regulatory priority for SB1188 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB1188 is estimated as "high". This may vary based on industry and implementation requirements.
SB1188 addresses topics including artificial intelligence, electronic information systems, health care providers, health and health--general.
Key dates for SB1188: Effective date is 2025-09-01. Rulemaking: Must enter into a memorandum of understanding and adopt rules to implement Chapter 183, specifically regarding biological sex documentation standards. (Prior to 2025-09-01 (Implied)). Consult with legal counsel regarding applicability.
SB1188 establishes the following penalties: civil penalty of Up to $5,000 per violation (annual cap applies) for Negligent violation of EHR requirements (assessed per violation occurring in a single year).; civil penalty of Up to $25,000 per violation (annual cap applies) for Knowing or intentional violation of EHR requirements.; civil penalty of Up to $250,000 per violation for Knowing or intentional use of protected health information for financial gain.. Consult with legal counsel for specific applicability to your situation.
SB1188 primarily affects healthcare providers and medical facilities, insurance companies and financial institutions. 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.
