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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 certain companies |
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operating 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. 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 person licensed only as a security services |
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contractor may not intentionally misclassify an employee as an |
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independent contractor in violation of applicable federal |
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guidelines. |
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SECTION 2. Subchapter L, Chapter 1702, Occupations Code, is |
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amended by adding Section 1702.290 to read as follows: |
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Sec. 1702.290. VERIFICATION OF CERTAIN EMPLOYMENT |
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CLASSIFICATIONS DURING AUDIT OR INSPECTION. During an audit or |
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inspection by the department under Section 1702.289 of a person |
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licensed only as a security services contractor, the department |
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shall inspect the employment records of the license holder to |
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confirm that the license holder has not misclassified employees as |
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independent contractors in violation of applicable federal |
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guidelines. If the department determines that the license holder |
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misclassified an employee as described by this section, the |
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department shall notify the Texas Workforce Commission of that |
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determination. |
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SECTION 3. Section 1702.290, Occupations Code, as added by |
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this Act, applies only to an audit or inspection that occurs on or |
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after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2025. |