Regular Session
Government Affairs & Regulatory Compliance Analysis
SB2587 mandates retroactive fingerprinting for all pharmacy licensees and significantly expands "veil-piercing" background check authority to include "managing employees" and indirect owners (5% threshold) for Medicaid providers and insurers. This legislation effectively removes "grandfathered" status for long-tenured licensees and creates new liability for negligent hiring across healthcare, environmental, and fiduciary sectors.
Sen. Judith Zaffirini·Senate Bill·Regular Session
County Clerks (Guardianship proceedings) • Health and Human Services Commission • State Fire Marshal • Texas Behavioral Health Executive Council • Texas Commission on Environmental Quality • Texas Department of Housing and Community Affairs • Texas Department of Insurance • Texas Department of Motor Vehicles • Texas Department of Public Safety • Texas Medical Board • Texas State Board of Pharmacy
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:
Affected business types:
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.
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This bill's path through the Texas Legislature
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Common questions about SB2587
SB2587 mandates retroactive fingerprinting for all pharmacy licensees and significantly expands "veil-piercing" background check authority to include "managing employees" and indirect owners (5% threshold) for Medicaid providers and insurers. This legislation effectively removes "grandfathered" status for long-tenured licensees and creates new liability for negligent hiring across healthcare, environmental, and fiduciary sectors.
SB2587 was authored by Texas Senator Judith Zaffirini during the Regular Session.
SB2587 was signed into law by Governor Greg Abbott on June 20, 2025.
SB2587 is enforced by County Clerks (Guardianship proceedings), Health and Human Services Commission, State Fire Marshal, Texas Behavioral Health Executive Council, Texas Commission on Environmental Quality, Texas Department of Housing and Community Affairs, Texas Department of Insurance, Texas Department of Motor Vehicles, Texas Department of Public Safety, Texas Medical Board and Texas State Board of Pharmacy.
The regulatory priority for SB2587 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB2587 is estimated as "medium". This may vary based on industry and implementation requirements.
SB2587 addresses topics including environment, environment--solid waste, environment--water, insurance and insurance--insurers & agents.
Key dates for SB2587: Effective date is 2025-09-01. Rulemaking: Adopt rules regarding the issuance of 'associate' licenses (replacing 'temporary' licenses) and supervisory agreements. (Not specified (implied prior to 2025-09-01)); Adopt rules providing for uniform methods of requesting criminal history, including requirements for digital photos and fingerprints. (Not specified (implied prior to 20
SB2587 establishes the following penalties: administrative penalty of License Suspension / Refusal to Renew for Failure of a pharmacy license/registration holder to submit fingerprints upon renewal if not previously submitted (Retroactive requirement).; administrative penalty of Dismissal / Refusal to Hire for Refusal of a Texas State Board of Pharmacy employee or applicant to provide fingerprints or true name.; administrative penalty of Denial of License/Appointment for Failure to submit to required background checks for applicants across all affected agencies (TDI, TCEQ, TDHCA, TMB, etc.).. Consult with legal counsel for specific applicability to your situation.
SB2587 primarily affects insurance companies and financial institutions, utility companies and energy providers, 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.
