89R20828 GP-D
 
  By: Dorazio H.B. No. 1065
 
  Substitute the following for H.B. No. 1065:
 
  By:  Hefner C.S.H.B. No. 1065
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the classification of employees of certain companies
  operating under the Private Security Act.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1702.127, Occupations Code, is amended
  by adding Subsection (b-1) to read as follows:
         (b-1)  A person licensed only as a security services
  contractor may not intentionally misclassify an employee as an
  independent contractor in violation of applicable federal
  guidelines.
         SECTION 2.  Subchapter L, Chapter 1702, Occupations Code, is
  amended by adding Section 1702.290 to read as follows:
         Sec. 1702.290.  VERIFICATION OF CERTAIN EMPLOYMENT
  CLASSIFICATIONS DURING AUDIT OR INSPECTION. During an audit or
  inspection by the department under Section 1702.289 of a person
  licensed only as a security services contractor, the department
  shall inspect the employment records of the license holder to
  confirm that the license holder has not misclassified employees as
  independent contractors in violation of applicable federal
  guidelines. If the department determines that the license holder
  misclassified an employee as described by this section, the
  department shall notify the Texas Workforce Commission of that
  determination.
         SECTION 3.  Section 1702.290, Occupations Code, as added by
  this Act, applies only to an audit or inspection that occurs on or
  after the effective date of this Act.
         SECTION 4.  This Act takes effect September 1, 2025.