Relating to the classification of employees of certain companies operating under the Private Security Act.

HB 1065 requires Texas private security companies to verify employee classification before obtaining or renewing licenses. Specifically, the state department must inspect employment records to confirm companies aren’t misclassifying workers as independent contractors in violation of federal rules. This applies only to license applications submitted on or after September 1, 2025, and does not affect existing licenses. The bill directly impacts private security companies seeking new or renewed licenses under the Private Security Act.