The bill, H.B. No. 1065, amends the Private Security Act to enhance the verification process for the classification of employees by company license holders. It introduces new provisions requiring the Texas Department of Public Safety to inspect employment records before issuing or renewing a company license. Specifically, Section 1702.116 mandates that the department confirm that applicants have not misclassified employees as independent contractors in violation of federal guidelines. Additionally, Section 1702.3025 establishes a similar requirement for license renewals.

Furthermore, the bill includes a new prohibition in Section 1702.127(b-1) against intentionally misclassifying employees as independent contractors, reinforcing compliance with federal guidelines. The provisions apply only to applications submitted on or after the effective date of the Act, which is set for September 1, 2025. Applications submitted prior to this date will be governed by the existing law.

Statutes affected:
Introduced: Occupations Code 1702.127 (Occupations Code 1702)