Relating to the criminal and licensing consequences for the commission of certain offenses by massage establishments, massage schools, massage therapists, and massage therapy instructors.

Contracts

• Employment Agreements: Amend termination clauses to permit immediate dismissal upon *charge* or *deferred adjudication* for SB703-listed offenses (e.g., Indecent Assault), not just conviction.
• Staffing Agency MSAs: If you utilize third-party staffing, amend Master Service Agreements to require specific screening for Penal Code 22.012 (Indecent Assault) and include indemnification for regulatory fines resulting from placement of ineligible therapists.

Hiring/Training

• Background Checks: Standard "felony-only" checks are no longer sufficient. You must expand screening criteria to include specific misdemeanors, particularly Indecent Assault (PC 22.012) and Online Solicitation of a Minor.
• Mandatory Training: Update sexual misconduct training modules to explicitly state that LMTs are "Health Care Services Providers." Staff must understand that under PC 22.011, a client *cannot legally consent* to sexual contact during a session; such acts are now automatically felonies.

Reporting & Record-Keeping

• Roster Audit: Conduct an internal audit of all current employees and contractors against the new disqualifying offenses list before September 1, 2025.
• Policy Acknowledgment: Require all therapists to sign a specific acknowledgment form recognizing their new legal status as Health Care Services Providers and the removal of the consent defense.

Fees & Costs

• Direct Costs: No new state licensing fees are introduced.
• Indirect Costs: Budget for increased legal review of contracts and potential premium hikes in Professional Liability Insurance (PLI), as carriers may adjust rates due to the elevated "Health Care Provider" liability classification.