TX SB1254

Redefines "license holder" for professional employer organizations (PEOs) to specify it means a person holding a license issued by the department to provide professional employer services

Requires license renewals to follow Subchapter H, Chapter 51 of the Occupations Code and department rules, replacing the previous simple application and fee payment process

Allows PEOs whose licenses expire to maintain employer status for covered employees for up to 18 months after expiration if they fail to timely renew; employer status terminates after 18 months without renewal application

Expands disciplinary authority to apply to any person engaging in professional employer services, regardless of whether they hold a license, including those operating with expired, suspended, or inactive licenses

Takes effect September 1, 2025, applying only to conduct occurring on or after that date