Relating to human trafficking, prostitution, and child pornography and to the prosecution of sexual or assaultive offenses or the prosecution of a failure to stop or report those offenses; amending and harmonizing certain statute of limitations provisions; creating a criminal offense; increasing a criminal penalty.

Contracts

• Employment Agreements (Tattoo/Piercing & Cosmetology): You must amend contracts to state that maintaining active licensure and completing state-mandated human trafficking training is a *condition of continued employment*.
• Commercial Leases: Salon suite owners and landlords leasing to massage establishments must update lease terms to require immediate compliance with HB1778. The law expands license revocation and nuisance abatement risks for the property owner based on tenant conduct.

Hiring/Training

• Tattoo & Body Piercing: You must integrate HHSC-approved human trafficking training into your onboarding process. No employee may work on the floor after Jan 1, 2026, without this certification.
• Cosmetology & Barbering: License renewal requirements now include a mandatory Continuing Education (CE) module on human trafficking. Staff cannot renew licenses without this.
• General Management: All managers must be trained on the new "Failure to Report" standard. If they witness a simple assault against a minor and fail to call the police, they are personally liable for a 3rd Degree Felony.

Reporting & Record-Keeping

• Training Verification: Tattoo and body piercing studios must maintain a physical or digital compliance folder containing training certificates for *every* employee, ready for inspection by TDLR or local health officials.
• Signage Logs: Body piercing studios must post the specific human trafficking emergency sign (previously only required for tattoo/massage). Document this placement with dated photos in your compliance log.

Fees & Costs

• Training Costs: The law mandates HHSC approve at least one course that is free of charge. However, budget for "time off floor" operational costs while staff complete training.
• Insurance Gaps: Review General Liability and EPLI policies. Most exclude coverage for criminal acts. If a manager is charged with a felony for failing to report an assault, your policy will likely not cover their legal defense.