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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB1818

Regular Session

Relating to the issuance of a license or provisional license to certain military service members, military veterans, and military spouses to engage in a business or occupation in this state.

Government Affairs & Regulatory Compliance Analysis

SB1818: Government Affairs Overview

SB1818 fundamentally alters the hiring landscape for military service members, veterans, and spouses by mandating the immediate issuance of provisional licenses upon application receipt, effective September 1, 2025. While this accelerates time-to-hire, it introduces a strict 180-day liability window; if the permanent license is denied or the 180 days lapse, the employee immediately becomes unlicensed, creating significant regulatory and malpractice risk.

Sen. Kelly Hancock·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Business Impact

Who SB1818 Affects

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

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation

Key Operational Considerations

  • 1Onboarding Protocols: Revise intake checklists. Stop requiring a "final" license for military candidates. Instead, validate:
  • 2Insurance Verification: Contact your malpractice/liability carrier immediately. Confirm that coverage extends to employees operating under a *provisional* license status.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB1818
Moderate
Relating to the issuance of a license or provisional license to certain military service members, military veterans, and military spouses to engage in...
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
All other state agencies issuing...Texas Board of NursingTDLRTexas Medical Board+2 more
Primary Author: Sen. Kelly Hancock
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 (HR teams must be ready to process provisional statuses immediately).
  • Agency Rulemaking: Agencies (TDLR, TMB, etc.) have until December 1, 2025, to finalize rules.
  • *Regulatory Gray Zone:* Between Sept 1 and Dec 1, the statutory right to a provisional license exists, but agency IT systems may not be updated to generate the physical document. You must document the "Notice of Intent" and application receipt heavily during this quarter.

Immediate Action Plan

  • 1. Update HRIS: Add a mandatory "Provisional Expiration Date" field for all new hires starting Sept 1, 2025.
  • 2. Revise Offer Letters: Add the "180-Day Conversion" contingency clause to standard templates.
  • 3. Audit Insurance: Obtain written confirmation from your liability carrier regarding coverage for provisional licensees.
  • 4. Budget Adjustment: Increase projected licensing renewal costs for general staff by 5-10% for FY2026 to account for cost-shifting.
  • 5. Monitor Rulemaking: Assign compliance staff to watch the Texas Register in October/November 2025 for the specific forms required by your primary regulator (TDLR, TMB, etc.).

Operational Changes Required

Contracts

  • Employment Agreements: Insert a specific termination clause for military hires operating under SB1818. Employment must be explicitly contingent upon converting the provisional license to a permanent license within 180 days.
  • Staffing Agency MSAs: Amend Master Service Agreements to require staffing firms to warrant the validity of provisional licenses and accept liability if a placed candidate’s license lapses or is denied mid-assignment.

Hiring/Training

  • Onboarding Protocols: Revise intake checklists. Stop requiring a "final" license for military candidates. Instead, validate:
  • 1. Proof of Military Status (DD-214/Military ID).
  • 2. Proof of Application Submission.
  • 3. Issuance of Provisional License Number.
  • Insurance Verification: Contact your malpractice/liability carrier immediately. Confirm that coverage extends to employees operating under a *provisional* license status.

Reporting & Record-Keeping

  • The "Tickler" System: You must track the 180-day expiration date in your HRIS. This is a hard stop.
  • Frequency of Verification: Unlike standard annual verifications, provisional licenses require weekly status checks. If an agency denies the application on Day 45, the provisional license is void *immediately*. You cannot wait until Day 180 to check.

Fees & Costs

  • Fee Waivers: No licensing fees for the military applicant (per existing Sec. 55.009).
  • Budget Impact: The Fiscal Note explicitly warns that agencies must cover the administrative cost of this program. Expect fee increases for your non-military staff in the FY2026-2027 licensing cycles to offset the $1.4M state implementation cost.

Strategic Ambiguities & Considerations

  • "Prompt" Issuance vs. IT Reality: The law requires "prompt" issuance, but the Fiscal Note indicates TDLR needs significant IT upgrades. Expect delays in receiving physical license numbers in Q4 2025.
  • Denial Notification Latency: The statute does not mandate real-time notification to employers if a provisional license is revoked due to application denial. You are at risk of employing an unlicensed individual during the lag time between agency denial and your next manual check.
  • Scope of Practice: While the provisional license allows practice, ensure agency rules do not impose stricter supervision requirements on provisional licensees compared to full licensees.

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.

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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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 3, 2025
Passed Senate
Apr 16, 2025
Passed House
May 23, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsMilitary & VeteransOccupational RegulationOccupational Regulation--health OccupationsOccupational Regulation--other Trades & ProfessionsState Agencies, Boards & Commissions
03

Senate Authors

Sen. Kelly HancockRepublican · Primary Author
Coauthors (2)

House Sponsors

Rep. John McQueeneyRepublican · Primary Sponsor
Cosponsors (1)

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 Sen. Kelly Hancock

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Related by Topic

View more Military & Veterans legislation
Quick Reference

Frequently Asked Questions

Common questions about SB1818

Q

What does Texas SB1818 do?

SB1818 fundamentally alters the hiring landscape for military service members, veterans, and spouses by mandating the immediate issuance of provisional licenses upon application receipt, effective September 1, 2025. While this accelerates time-to-hire, it introduces a strict 180-day liability window; if the permanent license is denied or the 180 days lapse, the employee immediately becomes unlicensed, creating significant regulatory and malpractice risk.

Q

Who authored SB1818?

SB1818 was authored by Texas Senator Kelly Hancock during the Regular Session.

Q

When was SB1818 signed into law?

SB1818 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1818?

SB1818 is enforced by All other state agencies issuing occupational licenses, Texas Board of Nursing, Texas Department of Licensing and Regulation (TDLR), Texas Medical Board, Texas Real Estate Commission and Texas State Board of Pharmacy.

Q

How significant are the changes in SB1818?

The regulatory priority for SB1818 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1818?

The cost impact of SB1818 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1818 address?

SB1818 addresses topics including military & veterans, occupational regulation, occupational regulation--health occupations, occupational regulation--other trades & professions and state agencies, boards & commissions.

Q

What are the key dates for SB1818?

Key dates for SB1818: Effective date is 2025-09-01. Rulemaking: Adopt rules to implement the mandatory issuance of provisional licenses to military members, veterans, and spouses pending full application review. (2025-12-01). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB1818?

SB1818 primarily affects healthcare providers and medical facilities. 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