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A BILL TO BE ENTITLED
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AN ACT
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relating to the classification of employees of a company license |
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holder under the Private Security Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 1702, Occupations Code, is |
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amended by adding Section 1702.116 to read as follows: |
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Sec. 1702.116. VERIFICATION OF EMPLOYMENT CLASSIFICATION |
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FOR COMPANY LICENSE ISSUANCE. Before the department may issue a |
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company license under this chapter, the department must inspect the |
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employment records of the applicant to confirm that the applicant |
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has not misclassified employees as independent contractors in |
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violation of applicable federal guidelines. |
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SECTION 2. Section 1702.127, Occupations Code, is amended |
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by adding Subsection (b-1) to read as follows: |
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(b-1) A company license holder may not intentionally |
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misclassify an employee as an independent contractor in violation |
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of applicable federal guidelines. |
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SECTION 3. Subchapter M, Chapter 1702, Occupations Code, is |
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amended by adding Section 1702.3025 to read as follows: |
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Sec. 1702.3025. VERIFICATION OF EMPLOYMENT CLASSIFICATION |
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FOR COMPANY LICENSE RENEWAL. Before the department may renew a |
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company license under this chapter, the department must inspect the |
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employment records of the license holder to confirm that the |
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license holder has not misclassified employees as independent |
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contractors in violation of applicable federal guidelines. |
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SECTION 4. Sections 1702.116 and 1702.3025, Occupations |
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Code, as added by this Act, apply only to an application for the |
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issuance or renewal of a company license under Chapter 1702, |
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Occupations Code, that is submitted on or after the effective date |
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of this Act. An application submitted before the effective date of |
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this Act is governed by the law in effect on the date the |
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application was submitted, and the former law is continued in |
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effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2025. |