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89(R) HB 1065 - House Committee Report version - Bill Text
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.