Relating to the regulation of code enforcement officers and code enforcement officers in training.
ModeratePlan for compliance
Low Cost
Effective:2025-06-20
Enforcing Agencies
Texas Commission of Licensing and Regulation • Texas Department of Licensing and Regulation
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).
Compliance Deadline:Immediate. You must validate that all staff using the title "Code Enforcement Officer" meet the new "works for" definition and registration requirements today.
Agency Rulemaking: The Texas Department of Licensing and Regulation (TDLR) will likely issue rules regarding the consolidated "application fee" structure and may provide guidance on the "works for" interpretation within 6-12 months.
Immediate Action Plan
1.Roster Audit: Immediately review all personnel using the title "Code Enforcement Officer." Confirm they hold a valid registration or fall under a specific trade exemption (e.g., licensed plumber).
2.Supervisor Check: Verify that every "Officer in Training" is assigned to a supervisor with an active, valid CEO registration number.
3.Contract Review: If you are a third-party vendor, consult outside counsel regarding the "works for" definition to determine if your staff must be retitled (e.g., to "Inspectors") to avoid statutory violation.
4.Update Job Descriptions: Revise internal job descriptions to align with the new statutory language, specifically regarding the employment relationship with the political subdivision.
Operational Changes Required
Contracts
Vendor Agreements (MSAs): Municipalities contracting with private firms for code enforcement must review Master Services Agreements. The shift from "agent" to "works for" creates a risk that third-party contractors can no longer legally hold the title "Code Enforcement Officer."
Indemnification: Update vendor contracts to require warranties that all deployed personnel meet the new statutory definition of employment; failure to do so could invalidate citations issued by those personnel.
Hiring/Training
Supervision Verification: You must audit all "Code Enforcement Officers in Training." They can no longer be supervised by merely experienced staff; the law now explicitly mandates supervision by a registered Code Enforcement Officer.
Reciprocity Protocols: HR departments should update hiring policies for out-of-state applicants. TDLR is now mandated to issue registration to applicants from states with substantially equivalent standards, streamlining recruitment.
Reporting & Record-Keeping
Employment Validation: Maintain documentation proving that every CEO "works for" the political subdivision. This will be critical for defending against challenges to citation authority.
Renewal Applications: The statute now explicitly requires the submission of a "proper application" for renewal, removing any implied ability to renew solely via fee payment. Ensure administrative workflows include the physical or digital application submission.
Fees & Costs
Fee Structure: The statute removes separate references to examination and registration fees, consolidating them into an "application fee." While the total cost impact is expected to be neutral (per the Fiscal Note), expect a new fee schedule from TDLR.
Strategic Ambiguities & Considerations
Definition of "Works For": The legislature replaced "agent of" with "works for." It is unclear if this strictly mandates a W-2 employment relationship or if a 1099 contractor relationship suffices.
*Risk:* Until TDLR rulemaking clarifies this, a conservative legal interpretation suggests that only direct employees of the municipality should use the official title to avoid Deceptive Trade Practices claims or citation dismissal.
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The bill author has informed the committee that the regulation of code enforcement officers currently lacks clarity in statutory definitions, registration requirements, and oversight, creating inconsistencies in enforcement practices across Texas. H.B. 4765 seeks to update statutory language to strengthen regulatory authority and ensure uniform standards for individuals engaged in code enforcement.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 4765 amends the Occupations Code to condition the authority of the state or a political subdivision of the state to engage in code enforcement without employing a code enforcement officer who is registered under applicable state law on the individual who is engaging in such authorized enforcement being exempt from registration as a code enforcement officer under that applicable state law because the individual is required to be licensed or registered under another state law and engages in code enforcement under that license or registration. In addition, the bill does the following:
·replaces references to a "person" with references to an "individual" in the applicable state law governing the registration of code enforcement officers;
·defines "code enforcement officer in training" as an individual who works for the state or a political subdivision of the state and engages in code enforcement under the supervision of a code enforcement officer registered under applicable state law governing such registration;
·with respect to the prohibition against an individual claiming to be a code enforcement officer or using the title "code enforcement officer" unless the individual holds a certificate of registration under applicable state law governing such registration, specifies that such a certificate must be a valid certificate;
·removes the requirement that an individual must pay examination and registration fees to be eligible to receive a certificate of registration as a code enforcement officer;
·with respect to the provision requiring the Texas Department of Licensing and Regulation to issue a certificate of registration to a license holder or registrant of another state if that state's requirements for the licensing or registration are at least equivalent to those of Texas, specifies that those requirements instead must be substantially equivalent; and
·clarifies that biennial renewal of a certificate of registration is not only on payment of the required renewal fee and completion of continuing education requirements prescribed by Texas Commission of Licensing and Regulation rule, as provided under current law, but is also on proper application.
HB4765 fundamentally alters the statutory definition of a Code Enforcement Officer (CEO) by changing the requisite relationship with a political subdivision from "agent of" to "works for. " This subtle but critical shift immediately jeopardizes the compliance status of third-party contractors using the CEO title and requires immediate verification of supervision lines for trainees. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).
Q
Who authored HB4765?
HB4765 was authored by Texas Representative Dade Phelan during the Regular Session.
Q
When was HB4765 signed into law?
HB4765 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB4765?
HB4765 is enforced by Texas Commission of Licensing and Regulation and Texas Department of Licensing and Regulation.
Q
How urgent is compliance with HB4765?
The compliance urgency for HB4765 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB4765?
The cost impact of HB4765 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB4765 address?
HB4765 addresses topics including occupational regulation, occupational regulation--other trades & professions and licensing & regulation, texas commission of.
Legislative data provided by LegiScanLast updated: November 25, 2025
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