Skip to content

CMS & Regulatory Compliance

Texas HB 149

Texas HB 149 AI Disclosure for Multispecialty Care

Timestamped AI disclosure before ambient capture in Texas multispecialty encounters. Book your audit at https://cal.com/merryai/demo.

Executive Key Takeaways

  • Tex. Bus. & Com. Code § 552.051(f) requires health care AI disclosure no later than the date service is first provided
  • Merry AI records a timestamped patient acknowledgment before any ambient audio stream opens
  • The Chrome extension injects a locked disclosure banner into the EHR note header across Epic, Oracle Health, athenaOne, eClinicalWorks, and NextGen
  • Audio is held in RAM only and shredded at 0-day retention, reducing § 503.001 voiceprint exposure
  • Clinician attestation and signature remain the final safeguard for every AI-assisted note
  • Validation via Access Clinical Prompts at templates.scribing.io
Regulatory Verification Framework
2026 Audit Ready
Tex. Bus. & Com. Code § 552.051(f)Verified Compliant

Health Care AI Disclosure

Health care AI disclosure no later than the date service or treatment is first provided, or as soon as reasonably possible in an emergency

Tex. Bus. & Com. Code § 552.051(d)Verified Compliant

Clear & Conspicuous Notice

Disclosure must be clear and conspicuous, in plain language, and free of dark patterns

Tex. Bus. & Com. Code §§ 552.104Verified Compliant

552.105: Attorney General notice,

552.105: Attorney General notice, 60-day cure period, and tiered civil penalties

Tex. Bus. & Com. Code § 503.001 (as amended by HB 149)Verified Compliant

Biometric identifier protections covering voiceprints

Biometric identifier protections covering voiceprints

Statutory Compliance Architecture for Texas HB 149

Texas HB 149, the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), took effect January 1, 2026, and adds Chapter 552 to the Texas Business and Commerce Code. For health care, Section 552.051(f) requires the provider of a service or treatment to disclose that an artificial intelligence system is used in relation to that care. The disclosure must occur no later than the date the service is first provided, or as soon as reasonably possible in an emergency.

The disclosure standard is procedural, not decorative. Section 552.051(d) requires the disclosure to be clear and conspicuous, written in plain language, and free of dark patterns. A consent paragraph buried in an intake packet signed months earlier is a weak evidentiary position when an ambient system is recording today's cardiology follow-up.

Multispecialty groups carry compounded exposure. A single Texas group may run behavioral health, cardiology, orthopedics, and pediatrics through the same EHR instance. Each specialty generates distinct documentation, but the statutory trigger is identical: AI involvement in care requires disclosure before that involvement begins.

Pre-Capture Disclosure Sequencing (P1)

Merry AI enforces a hard interlock. When the browser extension detects a Texas facility identifier and an active encounter note, it presents a patient-facing disclosure. It then records a timestamped acknowledgment in ISO 8601 format with the local time zone, including America/Denver for El Paso sites, before the microphone stream opens. No acknowledgment, no audio. The streaming session cannot initialize until the acknowledgment event is committed.

Emergency encounters follow the statutory exception. The clinician may flag the encounter as emergent, and capture proceeds. The system queues the disclosure for delivery as soon as reasonably possible and logs both the emergency flag and the deferred acknowledgment time.

EHR Note Header Injection via Chrome (P7)

The Chrome extension writes the disclosure banner directly into the note header. It uses the editor's native input pathway rather than raw DOM mutation, which preserves EHR change tracking in Epic, Oracle Health, athenaOne, eClinicalWorks, and NextGen. The extension traverses nested iframes and locates editors through ARIA labels rather than brittle element IDs. If the banner is deleted before signature, the extension re-inserts it. A representative header reads: "AI ambient documentation assistance was used for this encounter. Patient disclosure acknowledged [timestamp, timezone]."

Multi-tab charting does not fragment the record. The banner anchors to the narrative note for the visit ID, not to orders or flowsheets, and it follows the encounter across the HPI, exam, and assessment tabs. When an encounter produces separate procedure and consult notes, each AI-assisted note receives its own header.

Voiceprint and Biometric Retention Controls

HB 149 also amended Section 503.001 of the Business and Commerce Code, the Texas biometric identifier statute that covers voiceprints. Retaining clinical audio creates an unnecessary biometric data inventory. Merry AI buffers audio in RAM only and never writes it to disk. The buffer is shredded once text generation completes. This is 0-day retention, with no training reuse and no backup copies. Intermediate transcripts are purged at clinician signature.

Comparative Liability Across Documentation Models

The table below contrasts three documentation approaches against the HB 149 obligations most likely to surface in an Attorney General civil investigative demand.

Compliance DimensionManual ChartingStandard Generic AI ScribesMerry AI Compliance Architecture
§ 552.051(f) disclosure timingNot triggeredOften at intake, not per encounterTimestamped acknowledgment before capture
§ 552.051(d) conspicuousnessNot applicablePolicy document or verbal mentionPlain-language banner in note header
Audio retentionNoneOften stored for QA or trainingRAM-only, 0-day retention
§ 503.001 voiceprint exposureNonePersistent audio inventoryNo stored audio
Audit evidenceClinician recollectionVendor logs outside the chartDisclosure persisted in signed note

Specialty Documentation and Reimbursement Integrity

Disclosure compliance and billing integrity share one failure mode: undocumented facts. CMS reported a 10.3% improper payment rate for E/M services in the 2024 reporting period. Incorrect coding accounted for 49.1% of those improper payments, and insufficient documentation accounted for 34.1%. Merry AI structures each specialty note against its own clinical standard:

  • Behavioral health notes against DSM-5-TR criteria and risk assessment.
  • Cardiology notes against NYHA class and a dated LVEF.
  • Orthopedic notes against measured ROM in degrees and 0–5 strength grading.
  • Pediatric well visits against Bright Futures periodicity.

Coding prompts remain advisory and clinician-controlled. G2211 is suggested only when the narrative documents a continuing focal-point relationship or ongoing care for a single serious or complex condition. Modifier 25 prompts require a separately identifiable E/M section with its own medical necessity. Modifier 59 prompts require explicit anatomic or session distinctness.

Enforcement Posture and Audit Readiness

The Texas Attorney General holds exclusive enforcement authority under Chapter 552. After written notice, Section 552.104 provides a 60-day cure period. Section 552.105 sets three tiers of civil penalties:

  • $10,000 to $12,000 per curable violation.
  • $80,000 to $200,000 per uncurable violation.
  • $2,000 to $40,000 per day for continuing violations.

HB 149 creates no private right of action.

Clinician attestation remains the final safeguard. Every Merry AI note requires clinician review and signature, and the disclosure header is locked into the signed record. A cure-period response can therefore rely on chart-level evidence rather than vendor attestations. Peer-reviewed literature on ambient documentation accuracy is indexed at https://www.ncbi.nlm.nih.gov/pmc/.

Compliance officers preparing for audit should sample Texas visits across each specialty and verify disclosure timestamps against encounter start times. To review that sequence against your own EHR configuration, Schedule a 15-Minute Workflow Audit.

Regulatory & Compliance FAQ

When must a Texas multispecialty practice disclose AI use under HB 149?

Texas Business and Commerce Code Section 552.051(f) requires the provider to disclose AI use in health care service or treatment no later than the date the service is first provided. In an emergency, disclosure must occur as soon as reasonably possible. Merry AI records a timestamped patient acknowledgment before ambient audio opens. It then stores that timestamp in the note header, so each encounter carries its own evidentiary record.

What makes an AI disclosure clear and conspicuous under Section 552.051(d)?

Section 552.051(d) requires the disclosure to be clear and conspicuous, written in plain language, and free of any dark pattern. In practice, that excludes fine print buried in intake packets and interface designs that steer patients toward acceptance. Merry AI presents a short plain-language statement before capture. It then injects a matching banner into the EHR note header, which keeps the disclosure visible to patients and preserved for auditors.

What penalties apply to HB 149 disclosure violations?

The Texas Attorney General has exclusive enforcement authority. After written notice, Section 552.104 provides a 60-day cure period. Section 552.105 authorizes civil penalties of $10,000 to $12,000 per curable violation, $80,000 to $200,000 per uncurable violation, and $2,000 to $40,000 per day for continuing violations. HB 149 does not create a private right of action. Chart-level disclosure evidence strengthens any cure-period response.

How does HB 149 affect retention of encounter audio?

HB 149 amended Section 503.001, the Texas biometric identifier statute, which covers voiceprints. Retained clinical audio enlarges a practice's biometric data inventory and its breach surface. Merry AI holds audio in RAM only, never writes it to disk, and shreds the buffer once text generation completes. No audio is retained, reused for model training, or backed up. Intermediate transcripts are purged at clinician signature.

Where can clinics verify compliant templates?

Clinics can review specialty documentation prompts at https://templates.scribing.io. The library includes behavioral health scaffolds aligned with DSM-5-TR, cardiology templates that capture NYHA class and LVEF, orthopedic templates with ROM in degrees, and Bright Futures pediatric well-visit structures. Each template reserves the note header for the HB 149 disclosure banner, so compliance officers can confirm placement before deploying across Texas sites.

Explore More Knowledge

Related Clinical Rules & Compliance Guides

View all clinical rules & compliance
Florida Statute 934.03 Compliance for Psychiatry
CMS & Regulatory Compliance

Florida Statute 934.03 Compliance for Psychiatry

Enforce all-party verbal consent before psychiatric audio capture under Fla. Stat. 934.03(2)(d). Book your audit at https://cal.com/merryai/demo.

Dr. Sarah Chen, MD•7 min read
Read guide
Illinois 720 ILCS 5/14-2: Internal Medicine Consent
CMS & Regulatory Compliance

Illinois 720 ILCS 5/14-2: Internal Medicine Consent

Document all-party consent before ambient capture in Illinois internal medicine visits. Book your audit at https://cal.com/merryai/demo.

Dr. Sarah Chen, MD•7 min read
Read guide
Texas HB 149 AI Disclosure for Family Medicine
CMS & Regulatory Compliance

Texas HB 149 AI Disclosure for Family Medicine

Timestamp HB 149 disclosures before capture and protect G2211 integrity. Book your audit at https://cal.com/merryai/demo.

Dr. Sarah Chen, MD•7 min read
Read guide