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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB764

Regular Session

Relating to the procedure for a hearing by the Texas Department of Licensing and Regulation on the denial of an electrician's license or disciplinary action against an electrician.

Government Affairs & Regulatory Compliance Analysis

SB764: Government Affairs Overview

SB764 removes the Texas Department of Licensing and Regulation's (TDLR) authority to appoint internal hearing officers for electrician license denials and disciplinary actions, mandating that all such proceedings strictly follow the Administrative Procedure Act (Chapter 2001, Government Code). This shifts license defense from an informal agency process to formal administrative litigation, likely before the State Office of Administrative Hearings (SOAH), impacting all Electrical Contractors and individual licensees facing disciplinary action.

Sen. Judith Zaffirini·Senate Bill·Regular Session

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

Who SB764 Affects

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

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

🏗️

Construction

Affected business types:

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

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB764
Low
Relating to the procedure for a hearing by the Texas Department of Licensing and Regulation on the denial of an electrician's license or disciplinary ...
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
SOAHTDLR
Primary Author: Sen. Judith Zaffirini
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 (Applies to any hearing *commenced* on or after this date).
  • Agency Rulemaking: TDLR must update procedural rules to align with Chapter 2001. Watch the *Texas Register* in Summer 2025 for rules defining the "referral" process from TDLR enforcement to the administrative court.

Immediate Action Plan

  • Immediate: Audit your Professional Liability insurance policy for "License Defense" coverage limits.
  • Q2 2025: Update internal "Regulatory Response Protocols" to mandate immediate legal counsel engagement upon receipt of any TDLR Notice of Alleged Violation.
  • Q3 2025: Review outside counsel retainers to ensure access to attorneys with Administrative Procedure Act (Chapter 2001) experience.
  • Ongoing: Ensure all apprentice supervision logs are digitized and audit-ready to support potential defense claims.

Operational Changes Required

Contracts

  • Employment Agreements: Revise termination/suspension clauses for licensed electricians. Because formal administrative hearings take longer than internal reviews, ensure you have the contractual right to place an employee on unpaid leave or terminate them if their license remains in limbo for an extended period.
  • Subcontractor MSAs: Update Master Service Agreements to require immediate notification (within 24 hours) if a subcontractor receives a Notice of Alleged Violation (NOAV), as the resolution timeline is now extended.

Hiring/Training

  • HR & Safety Training: Train safety officers and HR managers on evidence preservation. Internal incident reports regarding safety violations or negligence must now be drafted with the understanding that they will serve as evidence in a formal court setting under strict rules of evidence.
  • Legal Counsel: Verify your retained counsel has specific experience with SOAH (State Office of Administrative Hearings). General construction litigation experience is insufficient for Chapter 2001 administrative proceedings.

Reporting & Record-Keeping

  • Disciplinary Documentation: Maintain rigorous supervision logs for apprentices. In a formal hearing, the burden of proof regarding "direct supervision" will be higher. Gaps in documentation will be fatal to a defense case.

Fees & Costs

  • Defense Budget: While statutory fees remain unchanged, legal defense costs will increase. Formal administrative hearings require more billable hours for discovery, motions, and trial than internal agency hearings.
  • Insurance Review: Review Professional Liability/E&O policies. Check the sub-limit for "Disciplinary Proceedings" or "License Defense." If currently set at $5,000 or $10,000, request a quote to increase this limit to cover the higher costs of formal litigation.

Strategic Ambiguities & Considerations

  • Pre-Hearing Hurdles: The law mandates formal hearings for contested cases, but TDLR may use rulemaking to insert mandatory "informal settlement conferences" prior to the formal hearing. We must monitor if these become helpful resolution tools or bureaucratic bottlenecks.
  • Definition of "Commenced": The law applies to hearings "commenced" on or after Sept 1, 2025. It is currently ambiguous whether "commenced" refers to the date the Notice of Hearing is filed or the date the gavel actually drops. We advise treating any case not fully resolved by August 2025 as subject to the new rules.

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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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 10, 2025
Passed Senate
Mar 11, 2025
Passed House
May 21, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsOccupational RegulationOccupational Regulation--other Trades & ProfessionsElectricians & Electrical ContractorsLicensing & Regulation, Texas Department of
03

Senate Authors

Sen. Judith ZaffiriniDemocrat · Primary Author

House Sponsor

Rep. Dade PhelanRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Judith Zaffirini

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB764

Q

What does Texas SB764 do?

SB764 removes the Texas Department of Licensing and Regulation's (TDLR) authority to appoint internal hearing officers for electrician license denials and disciplinary actions, mandating that all such proceedings strictly follow the Administrative Procedure Act (Chapter 2001, Government Code). This shifts license defense from an informal agency process to formal administrative litigation, likely before the State Office of Administrative Hearings (SOAH), impacting all Electrical Contractors and individual licensees facing disciplinary action.

Q

Who authored SB764?

SB764 was authored by Texas Senator Judith Zaffirini during the Regular Session.

Q

When was SB764 signed into law?

SB764 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB764?

SB764 is enforced by State Office of Administrative Hearings (SOAH) and Texas Department of Licensing and Regulation (TDLR).

Q

How significant are the changes in SB764?

The regulatory priority for SB764 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB764?

The cost impact of SB764 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB764 address?

SB764 addresses topics including occupational regulation, occupational regulation--other trades & professions, electricians & electrical contractors and licensing & regulation, texas department of.

Q

What are the key dates for SB764?

Key dates for SB764: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

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