Texas 2025 - 89th Regular

Texas House Bill HB4454 Compare Versions

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1-89R23851 KRM-F
21 By: Vo H.B. No. 4454
3- Substitute the following for H.B. No. 4454:
4- By: VanDeaver C.S.H.B. No. 4454
5-
6-
72
83
94 A BILL TO BE ENTITLED
105 AN ACT
116 relating to solicitation of patients and other prohibited marketing
12- practices, the establishment of the task force on patient
13- solicitation, and the prosecution of certain related criminal
14- offenses.
7+ practices and the establishment of the task force on patient
8+ solicitation; increasing criminal penalties.
159 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1610 SECTION 1. Subtitle E, Title 2, Health and Safety Code, is
1711 amended by adding Chapter 110 to read as follows:
1812 CHAPTER 110. TASK FORCE ON PATIENT SOLICITATION
1913 Sec. 110.001. DEFINITION. In this chapter, "task force"
2014 means the task force on patient solicitation created under this
2115 chapter.
2216 Sec. 110.002. PURPOSE. The task force is established to
2317 study and make recommendations on preventing conduct that violates
2418 Chapter 164 of this code or Chapter 102, Occupations Code, and to
2519 improve enforcement of those chapters.
26- Sec. 110.003. MEMBERSHIP. (a) The task force is composed of
27- eight members as follows:
20+ Sec. 110.003. MEMBERSHIP. (a) The task force is composed
21+ of eight members as follows:
2822 (1) four members the executive commissioner appoints;
2923 and
3024 (2) four members the attorney general appoints.
3125 (b) Each task force member must have expertise in the field
3226 of health care or advertising.
3327 (c) Task force members serve without compensation.
3428 Sec. 110.004. ADMINISTRATIVE ATTACHMENT. The task force is
3529 administratively attached to the commission.
3630 Sec. 110.005. ACCESS TO INFORMATION; CONFIDENTIALITY OF
37- PROVIDED INFORMATION. The attorney general and the commission shall
38- provide the task force with information the task force requests to
39- allow the task force to fulfill its duties. Information provided
40- under this section is confidential and is not subject to disclosure
41- under Chapter 552, Government Code.
31+ PROVIDED INFORMATION. The attorney general and the commission
32+ shall provide the task force with information the task force
33+ requests to allow the task force to fulfill its duties. Information
34+ provided under this section is confidential and is not subject to
35+ disclosure under Chapter 552, Government Code.
4236 Sec. 110.006. REPORT. Not later than December 1 of each
4337 even-numbered year, the task force shall submit to the legislature
4438 a report that includes:
4539 (1) a summary of civil or criminal actions brought on
4640 behalf of the state and administrative actions by state regulatory
4741 agencies in the preceding biennium for conduct that violates
4842 Chapter 164 of this code or Chapter 102, Occupations Code; and
4943 (2) legislative recommendations for preventing
5044 conduct that violates Chapter 164 of this code or Chapter 102,
5145 Occupations Code, and improving enforcement of those chapters.
5246 SECTION 2. Section 164.002, Health and Safety Code, is
5347 amended to read as follows:
5448 Sec. 164.002. LEGISLATIVE PURPOSE. The purpose of this
5549 chapter is to safeguard the public against fraud, deceit, and
5650 misleading marketing practices and to foster and encourage
5751 competition and fair dealing by mental health facilities and
5852 chemical dependency [treatment] facilities by prohibiting or
5953 restricting practices by which the public has been injured in
6054 connection with the marketing and advertising of mental health
6155 services and the admission of patients. Nothing in this chapter
6256 should be construed to prohibit a mental health facility or
6357 chemical dependency facility from advertising its services in a
6458 general way or promoting its specialized services. However, the
6559 public should be able to clearly distinguish between the marketing
6660 activities of the facility and its clinical functions.
6761 SECTION 3. Section 164.003(1), Health and Safety Code, is
6862 amended to read as follows:
6963 (1) "Advertising" or "advertise" means a solicitation
7064 or inducement, through print or electronic media, including radio,
7165 television, the Internet, or direct mail, to purchase the services
7266 provided by a treatment facility.
7367 SECTION 4. Section 164.006, Health and Safety Code, is
7468 amended to read as follows:
7569 Sec. 164.006. SOLICITING AND CONTRACTING WITH CERTAIN
7670 REFERRAL SOURCES. A treatment facility or a person employed or
7771 under contract with a treatment facility, if acting on behalf of the
7872 treatment facility, may not:
7973 (1) contact a referral source or potential client for
8074 the purpose of soliciting, directly or indirectly, a referral of a
8175 patient to the treatment facility without disclosing its soliciting
8276 agent's, employee's, or contractor's affiliation with the treatment
8377 facility;
8478 (2) offer to provide or provide mental health or
8579 chemical dependency services to a public or private school in this
86- state, on a part-time or full-time basis, or the services of any of
87- its employees or agents who make, or are in a position to make, a
80+ state, on a part-time or full-time basis, the services of any of its
81+ employees or agents who make, or are in a position to make, a
8882 referral, if the services are provided on an individual basis to
8983 individual students or their families. Nothing herein prohibits a
9084 treatment facility from:
9185 (A) offering or providing educational programs
9286 in group settings to public schools in this state if the affiliation
9387 between the educational program and the treatment facility is
9488 disclosed;
9589 (B) providing counseling services to a public
9690 school in this state in an emergency or crisis situation if the
9791 services are provided in response to a specific request by a school;
9892 provided that, under no circumstances may a student be referred to
9993 the treatment facility offering the services; or
10094 (C) entering into a contract under Section
10195 464.020 with the board of trustees of a school district with a
10296 disciplinary alternative education program, or with the board's
10397 designee, for the provision of chemical dependency treatment
10498 services;
10599 (3) provide to an entity of state or local government,
106100 on a part-time or full-time basis, the mental health or chemical
107101 dependency services of any of its employees, agents, or contractors
108102 who make or are in a position to make referrals unless:
109103 (A) the treatment facility discloses to the
110104 governing authority of the entity:
111105 (i) the employee's, agent's, or
112106 contractor's relationship to the facility; and
113107 (ii) the fact that the employee, agent, or
114108 contractor might make a referral, if permitted, to the facility;
115109 and
116110 (B) the employee, agent, or contractor makes a
117111 referral only if:
118112 (i) the treatment facility obtains the
119113 governing authority's authorization in writing for the employee,
120114 agent, or contractor to make the referrals; and
121115 (ii) the employee, agent, or contractor
122116 discloses to the prospective patient the employee's, agent's, or
123117 contractor's relationship to the facility at initial contact; [or]
124118 (4) in relation to intervention and assessment
125119 services, contract with, offer to remunerate, or remunerate a
126120 person who operates an intervention and assessment service that
127121 makes referrals to a treatment facility for inpatient or outpatient
128122 treatment of mental illness or chemical dependency unless the
129123 intervention and assessment service is:
130124 (A) operated by a community mental health and
131125 intellectual disability center the commission funds [funded by the
132126 department and the Department of Aging and Disability Services];
133127 (B) operated by a county or regional medical
134128 society;
135129 (C) a qualified mental health referral service as
136130 defined by Section 164.007; or
137131 (D) owned and operated by a nonprofit or
138132 not-for-profit organization offering counseling concerning family
139133 violence, help for runaway children, or rape; or
140134 (5) contract with a marketing provider who agrees to
141135 provide general referrals or leads for the placement of prospective
142136 patients with a service provider or in a recovery residence through
143137 a call center or Internet website presence, unless the terms of that
144138 contract are disclosed to the prospective patient.
145139 SECTION 5. Section 164.010, Health and Safety Code, is
146140 amended to read as follows:
147141 Sec. 164.010. PROHIBITED ACTS. It is a violation of this
148142 chapter, in connection with the marketing of mental health
149143 services, for a person to:
150144 (1) advertise, expressly or impliedly, the services of
151145 a treatment facility through the use of:
152146 (A) promises of cure or guarantees of treatment
153147 results that cannot be substantiated; or
154148 (B) any unsubstantiated claims;
155149 (2) advertise, expressly or impliedly, the
156150 availability of intervention and assessment services unless and
157151 until the services are available and are provided by mental health
158152 professionals licensed or certified to provide the particular
159153 service;
160154 (3) fail to disclose before soliciting a referral
161155 source or prospective patient to induce a person to use the services
162156 of the treatment facility an affiliation between a treatment
163157 facility and its soliciting agents, employees, or contractors;
164158 (4) obtain or disclose information considered
165159 confidential by state or federal law regarding a person for the
166160 purpose of soliciting that person to use the services of a treatment
167161 facility unless and until consent is obtained from the person or, in
168162 the case of a minor, the person's parent, managing conservator, or
169163 legal guardian or another person with authority to give that
170164 authorization; [or]
171165 (5) represent that a referral service is a qualified
172166 mental health referral service unless and until the referral
173167 service complies with Section 164.007;
174168 (6) make a false or misleading statement or provide
175- false or misleading information about the treatment facility's
176- services or location in the treatment facility's advertising media
177- or on its Internet website; or
178- (7) provide a link on the treatment facility's
179- Internet website that redirects the user to another Internet
180- website containing false or misleading statements or information
181- described by Subdivision (6).
169+ false or misleading information about the facility's services or
170+ location in the facility's advertising media or on its Internet
171+ website; or
172+ (7) provide a link on the facility's Internet website
173+ that redirects the user to another Internet website containing
174+ false or misleading statements or information described by
175+ Subdivision (6).
182176 SECTION 6. Section 164.011(a), Health and Safety Code, is
183177 amended to read as follows:
184178 (a) If it appears that a person is in violation of this
185179 chapter, the attorney general, a district attorney, or a county
186180 attorney may institute an action for injunctive relief to restrain
187181 the person from continuing the violation and for civil penalties of
188182 not less than $2,000 [$1,000] and not more than $25,000 per
189183 violation.
190- SECTION 7. Section 102.001(a), Occupations Code, is amended
191- to read as follows:
192- (a) A person commits an offense if the person knowingly
193- offers to pay or agrees to accept, directly or indirectly, overtly
194- or covertly any remuneration in cash or in kind or any benefit or
195- commission to or from another for securing or soliciting a patient
196- or patronage for or from a person licensed, certified, or
197- registered by a state health care regulatory agency.
184+ SECTION 7. Section 102.001, Occupations Code, is amended to
185+ read as follows:
186+ Sec. 102.001. SOLICITING PATIENTS; OFFENSE. (a) A person
187+ commits an offense if the person knowingly offers to pay or agrees
188+ to accept, directly or indirectly, overtly or covertly any
189+ remuneration in cash or in kind or any benefit or commission to or
190+ from another for securing or soliciting a patient or patronage for
191+ or from a person licensed, certified, or registered by a state
192+ health care regulatory agency.
193+ (b) Except as provided by Subsection (c), an offense under
194+ this section is a state jail felony [Class A misdemeanor].
195+ (c) An offense under this section is a felony of the second
196+ [third] degree if it is shown on the trial of the offense that the
197+ person:
198+ (1) has previously been convicted of an offense under
199+ this section; or
200+ (2) was employed by a federal, state, or local
201+ government at the time of the offense.
198202 SECTION 8. Section 102.004, Occupations Code, is amended to
199203 read as follows:
200204 Sec. 102.004. APPLICABILITY TO ADVERTISING. Section
201205 102.001 does not prohibit advertising, unless the advertising is:
202206 (1) false, misleading, or deceptive; [or]
203207 (2) not readily subject to verification, if the
204208 advertising claims professional superiority or the performance of a
205209 professional service in a superior manner; or
206210 (3) prohibited under Chapter 164, Health and Safety
207211 Code, as applicable.
208- SECTION 9. Section 102.006(a), Occupations Code, is amended
209- to read as follows:
210- (a) A person commits an offense if:
212+ SECTION 9. Section 102.006, Occupations Code, is amended to
213+ read as follows:
214+ Sec. 102.006. FAILURE TO DISCLOSE; OFFENSE. (a) A person
215+ commits an offense if:
211216 (1) the person, in a manner otherwise permitted under
212217 Section 102.001, accepts remuneration, a benefit, or a commission
213218 to secure or solicit a patient or patronage for a person licensed,
214219 certified, or registered by a state health care regulatory agency;
215220 and
216221 (2) does not, at the time of initial contact and at the
217222 time of referral, disclose to the patient:
218223 (A) the person's affiliation, if any, with the
219224 person for whom the patient is secured or solicited; and
220225 (B) that the person will receive, directly or
221226 indirectly, remuneration, a benefit, or a commission for securing
222227 or soliciting the patient.
223- SECTION 10. Sections 102.051(a) and (b), Occupations Code,
224- are amended to read as follows:
228+ (b) Except as provided by Subsection (c), an offense under
229+ this section is a state jail felony [Class A misdemeanor].
230+ (c) An offense under this section is a felony of the second
231+ [third] degree if it is shown on the trial of the offense that the
232+ person:
233+ (1) has previously been convicted of an offense under
234+ this section; or
235+ (2) was employed by a federal, state, or local
236+ government at the time of the offense.
237+ SECTION 10. Sections 102.051(a), (b), and (c), Occupations
238+ Code, are amended to read as follows:
225239 (a) A person commits an offense if the person:
226240 (1) practices the art of healing with or without the
227241 use of medicine; and
228242 (2) employs or agrees to employ, pays or promises to
229243 pay, or rewards or promises to reward or provide any benefit or
230244 commission to another for soliciting or securing a patient or
231245 patronage.
232246 (b) A person commits an offense if the person accepts or
233247 agrees to accept anything of value or any benefit or commission for
234248 soliciting or securing a patient or patronage for a person who
235249 practices the art of healing with or without the use of medicine.
250+ (c) An offense under this section is a Class B misdemeanor
251+ [punishable by a fine of not less than $100 or more than $200]. Each
252+ violation of this section is a separate offense.
236253 SECTION 11. The changes in law made by this Act apply only
237254 to an offense committed on or after the effective date of this Act.
238255 An offense committed before the effective date of this Act is
239256 governed by the law in effect on the date the offense was committed,
240257 and the former law is continued in effect for that purpose. For
241258 purposes of this section, an offense was committed before the
242259 effective date of this Act if any element of the offense occurred
243260 before that date.
244261 SECTION 12. This Act takes effect September 1, 2025.