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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB2480

Regular Session

Relating to the Texas Physician Health Program and the regulation of certain occupations by the Texas Medical Board; expanding the applicability of surcharges.

Government Affairs & Regulatory Compliance Analysis

SB2480: Government Affairs Overview

SB2480 significantly expands the regulatory scope of the Texas Medical Board (TMB) by extending mandatory federal background monitoring and specific health program surcharges to all Board-regulated occupations, not just physicians. Effective December 1, 2025, healthcare entities employing Respiratory Therapists, Radiologic Technologists, Perfusionists, and other allied health professionals must adjust credentialing budgets and compliance monitoring to account for continuous National Practitioner Data Bank (NPDB) queries.

Sen. Donna Campbell·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Enforcing Agencies

Texas Medical Board

Business Impact

Who SB2480 Affects

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

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). 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

Key Operational Considerations

  • 1Adverse Action Reporting: HR teams must be trained that allied health professionals are now subject to mandatory TxPHP participation for substance or mental health issues as a condition of licensure.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB2480
Moderate
Relating to the Texas Physician Health Program and the regulation of certain occupations by the Texas Medical Board; expanding the applicability of su...
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Texas Medical Board
Primary Author: Sen. Donna Campbell
89th Texas Legislature
jdkey.com
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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: December 1, 2025 (Surcharges and new application requirements apply to filings submitted on or after this date).
  • Agency Rulemaking: The TMB is required to adopt rules implementing these changes by December 1, 2025. Expect a "regulatory gray zone" between September and November 2025 where the law is active but fee structures are not yet finalized.

Immediate Action Plan

  • 1. Audit Roster: Identify all employees holding TMB-regulated allied health licenses (MRTs, LMRTs, Respiratory Care, Perfusionists, Acupuncturists).
  • 2. Execute "Early Bird" Renewals: Instruct staff with renewals due in December 2025 or January 2026 to submit applications before December 1, 2025, to lock in current rates and delay new monitoring requirements for one cycle.
  • 3. Adjust FY2026 Budget: Factor in the ~$16.25 increase per head for all affected allied health staff.
  • 4. Monitor Rulemaking: Assign compliance staff to track TMB proposed rules in Fall 2025 regarding the definition of "relevant information" from the NPDB.

Operational Changes Required

Contracts

  • Staffing Agency MSAs: Update Master Service Agreements with allied health staffing vendors. Require warranties that placed staff (e.g., MRTs, Respiratory Therapists) are compliant with the new Texas Physician Health Program (TxPHP) requirements.
  • Employment Agreements: Review "Licensure Reimbursement" clauses. If you cap reimbursement at a fixed dollar amount, the new surcharges (approx. $16.25 increase) may trigger contract disputes or require payroll adjustments.

Hiring/Training

  • Credentialing Protocols: The TMB will now perform "continuous queries" on the NPDB. Credentialing staff must increase the frequency of license verification checks; a clear license can now be flagged with disciplinary data within 10 days of a federal report.
  • Adverse Action Reporting: HR teams must be trained that allied health professionals are now subject to mandatory TxPHP participation for substance or mental health issues as a condition of licensure.

Reporting & Record-Keeping

  • Profile Alignment: Internal credentialing files must mirror the TMB public profile. If the TMB updates a profile based on an NPDB hit, your internal records must reflect this immediately to avoid negligent credentialing liability.
  • Surcharge Accounting: Update accounts payable systems to recognize two new line items for allied health renewals: the TxPHP Surcharge and the NPDB Query Surcharge.

Fees & Costs

  • Budget Impact: Anticipate an increase of approximately $16.25 per licensee per renewal cycle.
  • Specific Fees:
  • TxPHP Surcharge: Capped at $15 (Fiscal Note estimates $5.25).
  • NPDB Query Surcharge: At cost (Fiscal Note estimates $11.00).
  • Penalty: Failure to pay these surcharges results in automatic denial of licensure or renewal.

Strategic Ambiguities & Considerations

  • "Relevant Information" Threshold: The statute allows the Board to query the NPDB for "relevant information." It is currently unclear what level of federal data (e.g., minor administrative flags vs. major malpractice payments) will trigger a public profile update for allied health professionals.
  • TxPHP Referral Triggers: The Board has discretion on requiring TxPHP participation. Rulemaking must clarify the threshold for mandatory referral versus voluntary self-referral for these newly affected occupation groups.
  • Final Fee Schedule: While estimates exist, the exact dollar amounts will be set during the October/November 2025 Board meetings.

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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
Mar 13, 2025
Passed Senate
May 5, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsOccupational RegulationOccupational Regulation--health OccupationsPhysiciansMedical Board, Texas
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Senate Authors

Sen. Donna CampbellRepublican · Primary Author

House Sponsor

Rep. Tom OliversonRepublican · Primary Sponsor

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 Sen. Donna Campbell

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Related by Topic

View more Occupational Regulation legislation
Quick Reference

Frequently Asked Questions

Common questions about SB2480

Q

What does Texas SB2480 do?

SB2480 significantly expands the regulatory scope of the Texas Medical Board (TMB) by extending mandatory federal background monitoring and specific health program surcharges to all Board-regulated occupations, not just physicians. Effective December 1, 2025, healthcare entities employing Respiratory Therapists, Radiologic Technologists, Perfusionists, and other allied health professionals must adjust credentialing budgets and compliance monitoring to account for continuous National Practitioner Data Bank (NPDB) queries.

Q

Who authored SB2480?

SB2480 was authored by Texas Senator Donna Campbell during the Regular Session.

Q

When was SB2480 signed into law?

SB2480 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB2480?

SB2480 is enforced by Texas Medical Board.

Q

How significant are the changes in SB2480?

The regulatory priority for SB2480 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB2480?

The cost impact of SB2480 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB2480 address?

SB2480 addresses topics including occupational regulation, occupational regulation--health occupations, physicians and medical board, texas.

Q

What are the key dates for SB2480?

Key dates for SB2480: Effective date is 2025-09-01. Rulemaking: Adopt rules to implement the expanded applicability of surcharges and the Texas Physician Health Program administration. (2025-12-01). Consult with legal counsel regarding applicability.

Q

What are the penalties under SB2480?

SB2480 establishes the following penalties: administrative penalty of Denial of licensure/renewal for Failure to pay the newly mandated NPDB and TxPHP surcharges upon application or renewal.; administrative penalty of Mandatory Program Participation for The Board may now require participation in the Texas Physician Health Program as a prerequisite for issuing or maintaining a license for any regulated occupation (expanded from just physicians/PAs).. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by SB2480?

SB2480 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