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.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Department of Licensing and Regulation (TDLR) • State Office of Administrative Hearings (SOAH)

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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Legislative Timeline

This bill's path through the Texas Legislature

TopicsOccupational Regulation Occupational Regulation--other Trades & Professions Electricians & Electrical Contractors Licensing & Regulation, Texas Department of

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 764
89R5471 AND-F	By: Zaffirini
	Business & Commerce
	2/14/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 3155 (1999) required the State Office of Administrative Hearings to conduct Iicensure hearings for the Texas Department of Licensing and Regulation (TDLR). There are, however, antiquated references to TDLR hearing officers conducting licensed electrician hearings in existing law. S.B. 764 simply would cure these defects by removing obsolete language to bring the law into alignment with current TDLR licensure hearing practices.

As proposed, S.B. 764 amends current law 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.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1305.253(b), Occupations Code, to delete existing text authorizing a hearing under Chapter 1305 (Electricians) to be conducted by a hearings officer designated by the Texas Commission of Licensing and Regulation.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 2025.

Senate Authors

Sen. Judith ZaffiriniDemocrat · Primary Author

House Sponsor

Rep. Dade PhelanRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 764

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	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.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 1305.253(b), Occupations Code, is
	amended to read as follows:
	(b) The proceedings relating to a license denial and
	disciplinary action by the department under this chapter are
	governed by Chapter 2001, Government Code. [~~A hearing under this~~
	~~chapter may be conducted by a hearings officer designated by the~~
	~~commission.~~]
	SECTION 2. The change in law made by this Act applies only
	to a hearing that commences on or after the effective date of this
	Act. A hearing that commences before the effective date of this Act
	is governed by the law in effect on the date the hearing commenced,
	and the former law is continued in effect for that purpose.
	SECTION 3. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


February 17, 2025

TO:	Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB764 by Zaffirini (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.), As Introduced

No fiscal implication to the State is anticipated.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

452 Department of Licensing and Regulation

LBB Staff:

JMc, CMA, GDZ, BFa

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Frequently Asked Questions

Common questions about SB764

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. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Applies to any hearing commenced on or after this date).

Who authored SB764?

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

When was SB764 signed into law?

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

Which agencies enforce SB764?

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

How urgent is compliance with SB764?

The compliance urgency for SB764 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

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.

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.

Legislative data provided by LegiScanLast updated: November 25, 2025

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