According to the Legislative Budget Board (LBB), SB 397 is not expected to have a significant fiscal impact on the state. The bill requires regulatory agencies overseeing health professionals providing telemedicine, teledentistry, and telehealth services to adopt standardized rules for consent documentation and mandates an in-person examination before any irreversible medical procedure. Despite these administrative changes, the implementation costs are anticipated to be minimal.
The fiscal note indicates that any expenses arising from the rulemaking process or implementation activities could be absorbed within existing agency resources. Agencies such as the Texas Medical Board, State Board of Dental Examiners, Board of Nursing, Behavioral Health Executive Council, Board of Pharmacy, and the Health and Human Services Commission are all expected to manage these duties without needing additional appropriations.
Similarly, no significant fiscal implications are projected for local governments. The regulatory adjustments primarily affect state-level oversight functions and do not impose direct financial or administrative burdens on municipal or county agencies. As a result, SB 397 is considered fiscally neutral for both state and local government entities.
SB 397 seeks to standardize consent documentation procedures for telemedicine, teledentistry, and telehealth services in Texas. It aims to improve regulatory clarity and patient protection in virtual healthcare settings by requiring uniform consent formats and establishing audio-only documentation standards aligned with the appropriate standard of care. These goals are generally aligned with liberty principles such as individual liberty and personal responsibility, and would typically merit positive consideration under a limited regulatory framework.
However, the bill contains a critical provision in Subsection (e) that fundamentally undermines core liberty principles. This subsection mandates that rules “must require that a health professional conduct an in-person examination of a patient before an irreversible medical procedure is initiated.” The language is both vague and overly broad, granting sweeping discretion to state licensing agencies—most notably the Texas Medical Board (TMB)—to define what constitutes an "irreversible procedure" and who qualifies as a "health professional" authorized to perform the required in-person exam. This effectively empowers regulatory bodies to constrain scope-of-practice flexibility, impose onerous requirements on midlevel practitioners, and undermine longstanding delegation authority to advanced practice registered nurses (APRNs) and physician assistants (PAs).
There is also strong concern that this regulatory latitude could be used by interest groups, such as organized physician networks or specialty lobbies (e.g., dermatologists or groups like TX 400), to restrict competition and consolidate control over high-demand service lines such as aesthetic or med spa procedures. This poses a direct threat to free enterprise and could jeopardize the viability of thousands of small businesses—particularly independent med spas that rely on delegated, protocol-driven care delivery under telemedicine models. If the TMB were to interpret Subsection (e) in a way that excludes delegation or requires physician-only on-site involvement, the resulting rule could functionally eliminate telemedicine in vast areas of elective and wellness care.
Furthermore, the bill runs counter to recent legislative momentum that has explicitly expanded access to care and restricted the ability of agencies to narrow provider scopes or impose burdensome in-person requirements without legislative direction. By contrast, SB 397 would move policy in the opposite direction—granting wide latitude to agencies with a documented history of resisting telemedicine, and doing so in the absence of clear statutory guardrails.
Although the goals of improving patient consent and protecting data are valid, those benefits are outweighed by the risk that this bill could be used to reverse or undermine legislative gains made in access to care, market innovation, and scope-of-practice reform. As drafted, the bill substantially violates liberty principles and poses a material threat to the decentralized, accessible delivery of healthcare services in Texas.
SB 397 should not advance in its current form. It must be significantly amended to:
Until these concerns are addressed, Texas Policy Research recommends that lawmakers vote NO on SB 397. Originally, Texas Policy Research recommends that lawmakers vote YES on SB 397. After further review, we have revised that recommendation.