Blog Overview

Does your organization think about protecting health data? HIPAA Compliance is the first regulation that comes to mind. Does your organization operate in Texas? Handles health information tied to Texas residents? If your answer is yes! HIPAA alone may not be enough.

Texas House Bill 300 (HB 300) expands and strengthens HIPAA Compliance requirements. It creates additional obligations that many organizations are unaware of. To reduce regulatory risk, it is essential to understand the differences between these two laws. It also ensures your compliance program is complete.

HIPAA Sets the Baseline

HIPAA Compliance is a federal law that applies to healthcare providers, health plans, healthcare clearinghouses, and their business associates. It is to protect Protected Health Information (PHI) that is used for treatment, payment, and healthcare operations.

HIPAA establishes requirements for safeguarding data, training staff, and responding to breaches. It intentionally allows flexibility in how organizations implement those controls.

Texas HB 300 Raises the Bar

HB 300 builds on HIPAA. It significantly broadens the scope of those who must comply and the types of data that are protected.

HB 300 applies to any person or organization that creates, receives, maintains, or uses health information of a Texas resident. They are part of the healthcare industry. Healthcare IT vendors, employers, consultants, billing services, cloud providers, and cybersecurity firms may all fall under HB 300 if they touch Texas health data.

HB 300 protects health information in any context. Not just within traditional healthcare workflows. If identifiable health data exists, digital, paper, or verbal, and relates to a Texas resident, it is protected under Texas law.

Breach Notification: Less Flexibility in Texas

HIPAA allows up to 60 days for breach notification and permits smaller breaches to be reported annually. But HB 300 removes much of that flexibility.

Under HB 300:

• All breaches must be reported
• Notification must occur as soon as practicable (up to 60 days)
• Affected individuals and the Texas Attorney General must be notified

This creates a faster, more transparent reporting obligation. It increases enforcement visibility. HB 300 specifies timing and documentation.

Texas law requires documented, role-based training:

• Within 90 days of hire
• At least every two years
• Whenever policies materially change

Organizations must be able to prove that training occurred. Not just that policies exist.

Higher Penalties, Higher Risk

HIPAA penalties are capped annually at the federal level. HB 300 has per-violation penalties, with fines up to $250,000 per violation. And also, each affected record counts separately.

Even a single incident can escalate quickly if HB 300 requirements are not met.

In Texas, HIPAA compliance is the foundation, but it is not the finish line.

If your organization:

• Operates in Texas, or
• Handles health information of Texas residents

Your compliance program should explicitly address the HB 300 requirement. It must include training, breach response, documentation, and vendor accountability.

Ensure your Healthcare IT proactively layers HB 300 on top of HIPAA. This will help to reduce regulatory exposure, improve audit readiness. You can also demonstrate stronger stewardship of sensitive data.