JD Key Consulting Logo
Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB1202

Regular Session

Relating to third-party review of property development documents and inspections of improvements related to those documents, including home backup power installations.

Government Affairs & Regulatory Compliance Analysis

SB1202: Government Affairs Overview

Effective September 1, 2025, SB1202 fundamentally alters the workflow for residential backup power installations (solar, battery, and generators) by allowing businesses to bypass municipal review delays through the use of third-party Master Electricians. While this enables a "submit-and-start" construction model, it explicitly shifts liability for negligent reviews from the municipality to the third-party reviewer, necessitating immediate updates to insurance and risk management protocols.

Phil King·Senate Bill·Regular Session

Low Cost
Effective:2025-09-01
Enforcing Agencies

County Regulatory Authorities • Municipal Regulatory Authorities

Business Impact

Who SB1202 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

⚡

Energy

Affected business types:

  • Power generators
  • Electric utilities
  • Renewable energy developers
  • Battery storage operators
View all energy legislation
🏢

Real Estate

Affected business types:

  • Property developers
  • Commercial landlords
  • Property managers
  • Real estate investors
View all real estate legislation
🏗️

Construction

Affected business types:

  • General contractors
  • Specialty contractors
  • Construction firms
  • Building developers
View all construction legislation

Key Operational Considerations

  • 1Master Electricians: You must designate specific licensed Master Electricians (Ch. 1305) or Electrical Inspectors to perform these reviews.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Need Government Relations Support?

JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.

Need Help Navigating This Legislation?

JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.

SB1202
Relating to third-party review of property development documents and inspections of improvements related to those documents, including home backup pow...
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
County Regulatory AuthoritiesMunicipal Regulatory Authorities
Primary Author: Phil King
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: September 1, 2025 (Businesses must have third-party reviewers under contract to utilize the expedited workflow immediately).
  • Agency Rulemaking: No state-level rulemaking is required. However, municipalities may establish "reasonable formats" for notice submission prior to September; monitor local ordinances for new portal requirements.

Immediate Action Plan

  • 1. Audit Insurance: Verify your Professional Liability (E&O) coverage explicitly includes design review and inspection activities for your Master Electricians.
  • 2. Secure Reviewers: Finalize contracts with third-party Master Electricians or certify internal staff by August 15, 2025.
  • 3. Web Audit: On September 1, document which municipalities in your territory have failed to post fee schedules online to leverage the statutory fee waiver.
  • 4. Prepare Legal Templates: Draft demand letters citing Sec. 247.0025(i) to deploy immediately when municipalities miss the 3-day permit issuance deadline.

Operational Changes Required

Contracts

  • Vendor Agreements: Update Master Services Agreements (MSAs) with third-party inspection firms to require specific indemnification for "negligent acts or omissions" in reviews, as SB1202 shifts liability to them.
  • Customer Contracts: Revise installation timelines to reflect faster starts. Include specific force majeure clauses regarding "regulatory authority refusal to accept third-party notice" to protect against initial municipal non-compliance.

Hiring/Training

  • Master Electricians: You must designate specific licensed Master Electricians (Ch. 1305) or Electrical Inspectors to perform these reviews.
  • Liability Awareness: In-house Master Electricians must be briefed that their license is now the primary liability shield for the project; General Liability policies may need review to ensure professional services (inspection/review) are covered.

Reporting & Record-Keeping

  • The 15-Day Rule: Implement a strict protocol ensuring the regulatory authority receives notice of results and copies of documents no later than the 15th day after the review or inspection is completed.
  • The 3-Day Trigger: Establish a tracking system for the 3-business-day deadline. If the city does not issue the permit within 3 days of receiving your final inspection notice, the law mandates issuance.

Fees & Costs

  • Fee Prohibition: Municipalities are prohibited from charging review or inspection fees for projects handled by third parties.
  • Fee Waiver: Verify if your target municipalities have posted their fee schedules on their websites. If they have not, you are not required to pay any permit issuance fees (Sec. 247.0025(g)).

Strategic Ambiguities & Considerations

  • "Reasonable Format" Friction: Sec. 247.004(b) allows cities to prescribe a "reasonable format" for notices. We anticipate hostile municipalities may create cumbersome digital portals to artificially slow this process. The law allows email submission if no format is prescribed, but "reasonableness" will likely be litigated.
  • Unposted Code Amendments: If a city fails to post specific local code amendments online, your reviewer is authorized to approve plans based on standard state/international codes. Expect disputes where cities attempt to enforce "hidden" local ordinances.

Need Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

Schedule a Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 10, 2025
Passed Senate
Mar 31, 2025
Passed House
May 23, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsElectronic Information SystemsEnergyEnergy--solarUtilitiesUtilities--electricProperty InterestsProperty Interests--generalBuilding Construction
03

House Sponsors

Rep. Phil KingRepublican · Primary Sponsor
Joint Sponsors

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Phil King

View all bills by Rep. Phil King

Related by Topic

View more Electronic Information Systems legislation
Quick Reference

Frequently Asked Questions

Common questions about SB1202

Q

What does Texas SB1202 do?

Effective September 1, 2025, SB1202 fundamentally alters the workflow for residential backup power installations (solar, battery, and generators) by allowing businesses to bypass municipal review delays through the use of third-party Master Electricians. While this enables a "submit-and-start" construction model, it explicitly shifts liability for negligent reviews from the municipality to the third-party reviewer, necessitating immediate updates to insurance and risk management protocols.

Q

Who authored SB1202?

SB1202 was authored by Texas Senator Phil King during the Regular Session.

Q

When was SB1202 signed into law?

SB1202 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1202?

SB1202 is enforced by County Regulatory Authorities and Municipal Regulatory Authorities.

Q

What is the cost impact of SB1202?

The cost impact of SB1202 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1202 address?

SB1202 addresses topics including electronic information systems, energy, energy--solar, utilities and utilities--electric.

Q

What are the key dates for SB1202?

Key dates for SB1202: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB1202?

SB1202 establishes the following penalties: civil penalty of Damages resulting from negligent acts or omissions for Negligence by the third-party reviewer or inspector conducting the review/inspection; administrative penalty of Forfeiture of permit/approval fees for Regulatory authority fails to post fee schedules on their website as required by Sec. 247.0025(d). Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by SB1202?

SB1202 primarily affects energy companies and power generators, utility companies and energy providers, property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026