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.