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CMS & Regulatory Compliance

Texas HB 149

Texas HB 149 AI Disclosure for Multispecialty Clinics

Timestamp HB 149 AI disclosures before ambient capture and write them into the note header. Book your audit at https://cal.com/merryai/demo.

Executive Key Takeaways

  • Tex. Bus. & Com. Code §552.051(f) requires health care providers to disclose AI use no later than the date service is first provided, with an emergency exception
  • Ambient capture stays locked until a timestamped patient acknowledgment exists, and the disclosure line is injected as the first node of the note header DOM field
  • Clinician attestation safeguards keep AI as a documentation aide, with no code or modifier suggestions and RAM-only audio shredded after transcription
  • Validation via Access Clinical Prompts at templates.scribing.io
Regulatory Verification Framework
2026 Audit Ready
Tex. Bus. & Com. Code §552.051(f) (HB 149, 89th Leg., R.S., 2025)Verified Compliant

AI disclosure for health care services or treatment no later than the date service is first provided

AI disclosure for health care services or treatment no later than the date service 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, conspicuous, and in plain language, and may not use a dark pattern

Tex. Bus. & Com. Code §§552.101Verified Compliant

552.104: Exclusive Attorney General

552.104: Exclusive Attorney General enforcement, civil investigative demands, and written notice with a 60-day opportunity to cure

Tex. Bus. & Com. Code §552.105: Civil penalties of $10,000Verified Compliant

$12,000 per curable violation,

$12,000 per curable violation, $80,000 — $200,000 per uncurable violation, and $2,000 — $40,000 per day for continuing violations

Statutory Scope of Texas HB 149 in Multispecialty Practice

Texas HB 149, the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), took effect January 1, 2026. It adds Chapters 551 through 554 to the Texas Business and Commerce Code. For health care, the operative provision is Section 552.051(f). When an artificial intelligence system is used in relation to a health care service or treatment, the provider must disclose that use to the patient or the patient's personal representative no later than the date the service is first provided. In an emergency, the disclosure is due as soon as reasonably possible.

Multispecialty groups carry a compounded exposure profile. A single organization may route cardiology, behavioral health, orthopedic, and pediatric encounters through one ambient documentation pipeline, while each department keeps its own intake script. Section 552.051(d) requires the disclosure to be clear, conspicuous, written in plain language, and free of dark patterns. A notice buried in portal terms of use, or delivered inconsistently across departments, is difficult to defend.

Enforcement rests exclusively with the Texas Attorney General. After written notice, a provider has 60 days to cure. Uncured violations carry 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. Disclosure therefore needs to be reproducible at the encounter level. A policy-level statement is not enough.

Pre-Capture Disclosure and Note Header Injection

Merry AI separates the disclosure event from the evidence of disclosure. The statute governs what the patient is told. The chart proves that it happened. Both records must exist, and they must share one timestamp.

P1: Timestamped Acknowledgment Before Ambient Capture

The microphone remains hard-locked until the clinician confirms that the patient or a personal representative has received the plain-language disclosure. The overlay presents a visible notice in the exam room or telehealth interface and pairs it with a standardized verbal script. It then records the patient's affirmative acknowledgment with an ISO 8601 timestamp. Ambient capture cannot begin until that acknowledgment exists. Audio is processed in volatile memory only and shredded from RAM after transcription. Retention is zero-day, and audio is never reused for model training.

Emergency encounters follow a deferred pathway consistent with the statutory exception. The overlay logs a deferred-disclosure flag, prompts completion as soon as reasonably possible, and preserves both timestamps.

P7: Disclosure Line Injected Into the Note Header DOM Field

Before the first dictated word, the overlay writes a labeled header block as the first node of the active progress note. It binds only to the foreground editor, whether that editor is a contenteditable region, a textarea, or an iframe-nested editor. It also verifies the patient and encounter identifiers before any write. The node carries a data-ai-disclosure attribute and a machine-readable timestamp, so auditors can query disclosure coverage across every department.

The header text is plain and fixed: AI-assisted documentation disclosed to patient and acknowledged at [timestamp]; drafted with AI assistance, reviewed and finalized by the signing clinician. The header renders in print, PDF, and portal exports. It sits outside the clinical narrative and never functions as medical decision-making content.

Statutory Comparison of Documentation Architectures

Compliance DimensionManual ChartingStandard Generic AI ScribesMerry AI Compliance Architecture
§552.051(f) disclosure timingNot triggered absent AI useGlobal consent or app icon; timing undocumentedTimestamped acknowledgment required before capture unlocks
Encounter-level evidenceNot applicableVendor dashboard outside the legal recordHeader DOM node inside the signed note
§552.051(d) plain languageNot applicableVariable; often embedded in terms of serviceStandardized script and fixed header text
Audio retentionNoneFrequently retained for QA or trainingRAM-only; shredded after transcription
Wrong-chart write riskLowActive-field typing across open tabsPatient and encounter ID match before any write
Coding influenceClinician-drivenBoilerplate may imply complexityNo code or modifier suggestions

Specialty Criteria Under Clinician Attestation

Disclosure compliance does not excuse weak clinical documentation. In behavioral health, the overlay preserves PHQ-9, GAD-7, and PCL-5 results as discrete scores and requires confirmation of each DSM-5-TR symptom cluster. In cardiology, NYHA class and LVEF are captured with the study date and source. In orthopedics, entries require numeric range-of-motion degrees and strength grades on the 0 to 5 scale. Pediatric templates follow Bright Futures periodicity and never mark a screening as performed without clinician confirmation.

Audit Readiness and Coding Integrity

CMS reports a 10.3 percent improper payment rate for E/M services in the 2024 reporting period. Incorrect coding and insufficient documentation drive most of those denials. A disclosure-compliant note that overstates complexity still fails review.

Coding Separation for G2211, Modifier 25, and Modifier 59

The overlay never suggests codes. Longitudinal complexity language for G2211 appears only when the clinician explicitly selects it. Same-day E/M and procedure documentation is structured into distinct sections. This structure supports a significant, separately identifiable service under modifier 25 but does not presume one. The overlay also never proposes modifier 59. The disclosure header stays excluded from any complexity narrative.

Governance logs record when AI was active, which fields it touched, and when each disclosure was inserted. For peer-reviewed literature on ambient documentation accuracy, consult https://www.ncbi.nlm.nih.gov/pmc/.

Clinics preparing for Attorney General inquiries should test disclosure coverage department by department before any notice arrives. Schedule a 15-Minute Workflow Audit to map your note fields, consent scripts, and header injection against Section 552.051.

Regulatory & Compliance FAQ

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

Tex. Bus. & Com. Code §552.051(f) requires providers to disclose AI use in relation to a health care service or treatment to the patient or personal representative no later than the date the service is first provided. Emergencies permit disclosure as soon as reasonably possible. Merry AI locks ambient capture until a timestamped acknowledgment exists. When the emergency pathway is used, it logs a deferred-disclosure flag with both timestamps.

Does the disclosure line in the note header satisfy HB 149 by itself?

No. The header DOM line is evidence that disclosure occurred, not the disclosure itself. Section 552.051(d) requires a clear, conspicuous, plain-language notice delivered to the patient without dark patterns. Merry AI pairs a visible on-screen notice and a standardized verbal script with the header entry. The patient-facing event and the chart record therefore share one timestamp that auditors can verify encounter by encounter.

What penalties apply if AI disclosure is missing across departments?

The Texas Attorney General holds exclusive enforcement authority under Chapter 552 and must provide written notice and a 60-day cure period. Under Section 552.105, uncured violations carry $10,000 to $12,000 per curable violation and $80,000 to $200,000 per uncurable violation. Continuing violations add $2,000 to $40,000 per day. Department-level gaps can multiply exposure, so coverage should be queried through tagged header nodes.

How does zero-day audio retention support HB 149 compliance?

HB 149 does not mandate a specific retention period. It does prohibit deceptive AI use, and it operates alongside HIPAA and the Texas Medical Records Privacy Act, Health and Safety Code Chapter 181. Merry AI processes audio in volatile memory only and shreds it after transcription, with no disk copies, QA archives, or training reuse. This narrows breach impact, simplifies BAA language, and limits discoverable recordings.

Where can clinics verify compliant templates?

Clinics can review specialty prompts at https://templates.scribing.io. These include behavioral health templates that preserve PHQ-9 and GAD-7 as discrete scores, cardiology prompts that capture NYHA class and LVEF with study date, orthopedic ROM entries in degrees, and Bright Futures pediatric structures. Each template keeps the AI disclosure header separate from clinical narrative and requires clinician attestation before signature.

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