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TITLE 37PUBLIC SAFETY AND CORRECTIONS
PART 1TEXAS DEPARTMENT OF PUBLIC SAFETY
CHAPTER 35PRIVATE SECURITY
SUBCHAPTER BREGISTRATION AND LICENSING
RULE §35.26Reclassification, Assignment, and Termination

(a) When a Class A or B license is reclassified as a Class C license, a fee in the amount of the difference in the cost of the licenses shall be paid. There shall be no refund when a Class C license is reclassified as a Class A or Class B license.

(b) The department may approve the assignment of a company license to the spouse or heir(s) of a deceased owner provided:

  (1) A copy of the owner's death certificate is filed with the department;

  (2) A copy of the Will, Order Admitting Will to Probate, Letters of Testament, Affidavit of Heirship with two affiants' signatures, or Order of Heirship is filed with the department; and

  (3) In the case of the death of a qualified manager, that a replacement manager is qualified within ninety (90) days.

(c) Other assignments will be permitted only under one of the conditions detailed in this subsection:

  (1) the ownership in the assignor and assignee will remain the same;

  (2) the registered owners holding at least 25% ownership in the original license, and collectively holding a majority ownership interest, consent to the assignment; or

  (3) if there is an insufficient number of registered owners holding at least 25% ownership in the original license to potentially hold a majority in ownership interest in the license, the license may be assigned by written consent of the qualified manager or an individual designated and verified by affidavit by the qualified manager as authorized to assign the license.

(d) The assignor must provide the department written documentation establishing the intended date of assignment and notarized statements establishing the consent of a majority of the owners of the current license, or if applicable, the qualified manager, from the appropriate individuals. The assignee must ensure any new owners required to register are currently approved by the department. The assignee may not perform regulated services prior to the proposed date of assignment or the date of the department's approval of all required registration applications for new owners, whichever is later. The assignor must cease performance of all regulated services on the earlier of either the proposed date of assignment or the date of surrender or termination of any related owner registrations.

(e) An additional assignment fee will be assessed as provided by this chapter upon assignment of a license under subsection (b) or (c) of this section.

(f) A license may only be terminated by consent of the registered owners holding at least 25% in the licensed company and collectively holding a majority ownership interest, unless the ownership structure of the company has an insufficient number of such owners to potentially represent a majority, in which case the license may be terminated by written consent of the qualified manager or an individual designated by the qualified manager verified by affidavit by the manager as authorized to terminate the license. The license holder must provide the department written documentation reflecting the intended date of termination and the consent of the appropriate individuals in the form of notarized statements.

(g) An assignment or termination effected by written consent of the qualified manager may be overturned within thirty (30) calendar days of the department's receipt of the qualified manager's consent documentation by majority vote of the entity's board of directors or the equivalent level decision making body of the licensee. Documentation of the vote must be received by the department within ten (10) business days of the board's decision.


Source Note: The provisions of this §35.26 adopted to be effective May 6, 2014, 39 TexReg 3606; amended to be effective March 15, 2018, 43 TexReg 1444

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