TEXAS SECURITY GUARD AGENCY LICENSE

The license. Class B Security Services Contractor License (company license; the guard company is one Class B service category). DPS also calls it a security contractor company license. A company that also does investigations holds a Class C license (Class A + Class B). [1]

Who needs it. A person may not act as a guard company, or offer to perform a guard company's services, unless the person holds a security services contractor license (Occ. Code 1702.102). A person acts as a guard company if the person provides a private watchman, guard or street patrol service on a contractual basis for another person, or if it employs an individual described by 1702.323(d) (1702.108). [1]

Local licensing. Licensing is state-level only. Occ. Code 1702.134(a) says a municipality, county or other political subdivision cannot require a company license holder or its employees to get a local authorization, permit, franchise or license, pay another fee or franchise tax, or post a bond to do work the chapter authorizes. The exceptions in 1702.134(b)-(c) cover municipal alarm charges and fees for alarm devices with repeated false alarms; they concern alarm companies, not guard companies. DPS says that whether a particular local rule complies is a legal question for counsel (dps-local-exemption). General business requirements still apply, such as an assumed-name certificate (from the county clerk for an individual; 37 TAC 35.25). No county or city licensing layer or exam for guard companies was found.

Your guards. Each guard needs a DPS individual license and must work for a licensed company (1702.221): a noncommissioned security officer license for unarmed guards, or a security officer commission for armed guards. The company submits employee applications through TOPS. Under 1702.230 and 37 TAC 35.3, unarmed work may begin before licensure only after the required pre-employment check; commissioned (armed) officers need DPS approval before they start (1702.282(b)). Individual licenses run 2 years (37 TAC 35.31(b)). [1]

Role

Company representative: the individual whose qualifications the company license is obtained on. The role was formerly 'qualified manager'; the manager registration ended under SB 616 (86th Leg., 2019), see 37 TAC 35.43(c). An individual applicant is the company representative. An entity applicant designates an officer who oversees the security-related aspects of the business, or a partner or shareholder who owns at least 25%. TOPS scheduling materials still say 'manager exam'. [3]

Experience

Guard company (37 TAC 35.122): at least 3 years of accumulated employment experience in the field the company is licensed in, AND at least 1 year in a managerial or supervisory position. The statute's default for security services contractors is 2 consecutive years in each field 'or satisfy other requirements set by the commission' (Occ. Code 1702.115(a)). The guard-specific rule governs guard companies; DPS applies the 2-year statutory rule only to Class B categories other than guard. Experience must be legally obtained and reviewed by DPS (1702.115(b)). DPS says experience legally obtained in another state may count. [3]

Age & background

Guard company applicant or company representative must be at least 21 at application (37 TAC 35.122(1); the DPS company representative page agrees). The statute sets 18 as the general minimum for any company license applicant (1702.113(a)); the more specific guard-company rule controls. Statutory bars (1702.113): at application, charged with a Class A/B misdemeanor or felony that a rule makes disqualifying; found incompetent by a court and not restored; dishonorable or other prohibited discharge; required to register as a sex offender. A fingerprint-based state and FBI criminal history check is required (1702.282). Offense guidelines are in 37 TAC 35.4. [3]

• Statute: minimum age 18 and the general disqualifiers for any company license applicant (stated alongside the 21-year rule for guard companies). [1]
• Must pass the written company representative examination administered by DPS (minimum passing score 70%). [3]
• Entity applicants: the company representative must be an officer who oversees the security-related aspects of the business, or a partner or shareholder with at least a 25% interest. Formal documentation of status goes in with the application; DPS Form PSP-62 designates an officer who is not a 25% owner. Several company representatives may be appointed to cover several service categories. [3]
• Effective July 2, 2026: the guard company applicant or prospective company representative must prove eligibility for a license under PRWORA 1996 with one of the listed documents, verified through DHS SAVE (REAL ID license or ID, U.S. passport, birth certificate, permanent resident card, EAD, etc.). [3]
• If the company representative leaves, an owner, officer, partner or shareholder may run the business temporarily for up to 90 days. [3]
• A security services contractor applicant must keep a physical address in Texas. [1]
• Owners with at least a 51% interest must hold an individual (owner) license. [1]
• Owners, partners and shareholders who hold individual licenses as owners only must complete 8 hours of continuing education to renew (7 hours on the company's regulated service plus 1 hour of ethics). [3]

Exam

Company Representative Examination (TOPS scheduling materials call it the 'Manager Exam') [4]

Who sits it

Every company representative: the individual applicant, or each officer or 25%+ partner/shareholder an entity designates. When the primary representative is not qualified in every service on the license, an additional company representative is needed, and that person must also pass. [4]

Administered by

None: Texas DPS administers the exam itself, and it is scheduled through TOPS. No official source names a third-party testing vendor. [3]

Delivery

In person, paper and pencil, at a DPS exam date, time and facility the candidate picks in TOPS (My Applications > paid application > View Checklist > Schedule Exam). Arrive 30 minutes early. Bring a driver license or state ID, your own printed copy of the statutes and rules (none is provided at the site), and two sharpened pencils with erasers. An oral exam is available with proof of dyslexia (37 TAC 35.42(c)). [4]

Questions

50 [4]

Time limit (minutes)

120 [4]

Passing score

70% (DPS page: 'a score of 70 percent or greater'; 37 TAC 35.42(a): 'minimum passing score is 70%') [4]

Open book

Yes [4]

Retakes

The application fee covers one exam (Occ. Code 1702.117(b); 37 TAC 35.42(d)). Each retake costs a $100 re-examination fee. Candidates may retest as often as the exam schedule allows within the 90-day application window. Results are emailed. By statute, results are due within 30 days, and a failing examinee may ask in writing for an analysis of their performance (1702.118). [4]

Candidate handbook ↗

Insurance

A general liability policy, either countersigned by an insurance agent licensed in Texas or written as surplus lines coverage through a licensed Texas resident surplus lines agent (1702.124(a)). Minimum limits: $100,000 per occurrence for bodily injury and property damage; $50,000 per occurrence for personal injury; $200,000 total aggregate (1702.124(c)). Coverage must also be enough to cover all of the company's private-security business activities (1702.124(f)). Proof is filed on DPS Form PSP-05; binders are not accepted. The certificate stays in effect until the insurer gives DPS at least 10 days' notice (1702.124(e)). If insurance is not on file, the license is suspended immediately (1702.123(b); 37 TAC 35.27(d)). To get the suspension rescinded, proof of no lapse is due by the 10th day after suspension under the statute (1702.123(c)), or within 10 business days under the rule (35.27(e)). Knowingly failing to keep enough insurance is a Class A misdemeanor (1702.3841). [1]

Branch offices

Notify DPS in writing within 14 days after a branch office is established, closed, or changes address (1702.129(b)). Register each branch in TOPS: there is no fee, branches renew with the business license, and each gets a letter designation rather than a separate certificate (dps-faq-company). Post the company license in the principal place of business and in each branch office (1702.128). [1]

• Class B license, original or renewal: $400 (rule figure 37 TAC 35.131(a)). [3]
• Company subscription fee (Gov't Code 2054.252) on a $400 application or renewal: $12, so the DPS total is $412. [3]
• DPS Fee Schedule (Rev. 09/03/2019), Class B: original or renewal $412 ($400 + $12); renewal 0-90 days late $612 (includes a $200 late fee); renewal more than 90 days late $812 (includes a $400 late fee). [7]
• Class C license (Class A investigations + Class B), original or renewal: $540 (+$16 subscription = $556). [3]
• Reexamination (company representative exam retake): $100. The first exam is covered by the application fee. [3]
• Owner, officer, partner or shareholder individual license (DPS fee schedule): $50 + $5 pocket card + $2 subscription = $57, original or renewal. [7]
• FBI fingerprint check: $28.25 (DPS fee schedule, 2019). The rule figure says fingerprint fees are set by state law and federal regulation and may change. [7]
• Rule figure (37 TAC 35.131(a)): assignment of license $150; change of license name $75; reinstatement of a suspended license $150; preliminary background check and evaluation letter $100. [3]
• DPS fee schedule amounts with subscription included: reinstatement of a suspended license $150; assignment of a business license $155 ($150 + $5 subscription); company name change $77 ($75 + $2 subscription). [7]
• Late renewal (statute 1702.302): expired 90 days or less, 1-1/2 times the renewal fee; more than 90 days but less than 1 year, 2 times; 1 year or more, the license cannot be renewed and the holder must apply again, including the exam. [1]
• Branch office registration: no fee. [14]
• Fees cannot be refunded or transferred. [3]

1. Start a new business application in Texas Online Private Security (TOPS): business type, services offered (e.g., Guard), business name or assumed name, physical and mailing address, business structure, and every stakeholder (owners, company representative, partners, shareholders, officers). [9]
2. Each stakeholder completes a stakeholder application from the emailed link. Stakeholder applications and payment must be in within 15 days, or the business application is deleted. [9]
3. Pay one combined payment (company + stakeholder fees) by credit card in TOPS. [9]
4. Submit fingerprints: for an individual applicant, the applicant's; for an entity, each officer who oversees the security-related aspects of the business and each partner or shareholder with a 25% or larger interest. [1]
5. File proof of general liability insurance on Form PSP-05, completed by the Texas-licensed agent. [15]
6. Provide entity documents: an assumed name certificate (county clerk for individuals; Texas SOS for entities) and, for corporations, a certificate of existence or authority from the Texas SOS. [3]
7. The company representative documents qualifying experience (guard: age 21+, 3 years accumulated experience + 1 year supervisory) and, from July 2, 2026, PRWORA/SAVE proof of eligibility. [4]
8. The company representative schedules the exam in TOPS from the paid application's checklist ('Schedule Exam') and must pass it (70%). [6]
9. Incomplete applications: DPS sends a deficiency notice. The applicant has 90 days to fix it, extendable once by another 90 days on request, or the application is terminated. [3]

Renewal

Company licenses are valid for 1 year from issuance and expire on the first anniversary (37 TAC 35.31(a)). The statute caps any license term at 2 years, with dates set under Gov't Code 411.511 (1702.301(b)). To renew, pay the renewal fee ($400 + $12) in TOPS before expiration (1702.302(a)); current insurance must be on file. Late renewal costs 1.5x (90 days or less) or 2x (over 90 days but under 1 year). After 1 year the license cannot be renewed, and the holder must apply again and retake the exam (1702.302(d)). DPS must send notice at least 30 days before expiration (1702.302(e)). [3]

Disqualifiers & waivers

Statutory bars (1702.113): a pending charge for a disqualifying Class A/B misdemeanor or felony; adjudicated incompetence; dishonorable or prohibited discharge; sex-offender registration. 37 TAC 35.4 lists directly related Penal Code offense categories. A felony conviction for a listed offense disqualifies for 10 years, a Class A misdemeanor for 5 years, and a Class B misdemeanor for 2 years. Offenses under 3g/42A.054, sexually violent offenses and burglary of a habitation disqualify permanently, subject to Occ. Code ch. 53. Mitigating factors (age at the offense, time elapsed, rehabilitation, references) are weighed under 35.4 and Occ. Code ch. 53. Entity stakeholders (officers, 25%+ owners) must also meet 35.4 and the SAVE proof rules (35.30). Military members, veterans and spouses: alternative licensing, credit for military experience, and recognition of out-of-state licenses (37 TAC 35.183-35.186; 1702.1183(c)). DPS says Texas has no reciprocal agreements with other states. [3]

• 2026-07-02PRWORA lawful-presence proof through DHS SAVE now required for guard company applicants and prospective company representatives (37 TAC 35.122(4)), for entity stakeholders (35.30), and for individual license and commission applicants and renewals, with companion amendments to 35.21, 35.22, 35.81, 35.83, 35.121, 35.123 and 35.124. 51 TexReg 4200-4202 (37 TAC 35.122 at 51 TexReg 4202; 35.30 at 51 TexReg 4200) [3]
• 2026-01-01Military service members, veterans and spouses: alternative licensing amended (a similar license from another state, or a Texas license held within the preceding 5 years; other ways to show competence), and new 35.186 on recognizing out-of-state licenses under Occ. Code 55.0041. 50 TexReg 8621 (37 TAC 35.183, 35.186) [3]
• 2025-09-01Occ. Code 55.0041 (recognition of out-of-state licenses of military service members and spouses) amended by HB 5629 and SB 1818, 89th Leg. R.S. Each bill adds a different subsection (b-1): HB 5629 requires agency notice within 10 business days; SB 1818 provides a provisional license of up to 180 days. Former (f) repealed. This is a cross-cutting statute that applies to all state licensing agencies, including DPS. Acts 2025, 89th Leg., R.S., Ch. 686 (H.B. 5629); Ch. 857 (S.B. 1818) [27]
• 2025-05-27Occ. Code 53.021 and 53.0211 (criminal-conviction consequences for state licenses) amended by SB 1080, 89th Leg. R.S. Current text: a licensing authority may revoke a license on imprisonment following a felony conviction (53.021(a-2)), and provisional licenses are available for certain inmates and parolees in Windham or higher-education programs (53.0211(b-1)). The codified text does not show which subsections SB 1080 itself added. Section 53.0211(a) excludes licenses for 'safety services', and its application to private security licenses was not confirmed. Acts 2025, 89th Leg., R.S., Ch. 175 (S.B. 1080) [26]
• 2025-06-06DPS enforcement policy, not a rule: a commissioned security officer or personal protection officer whose TOPS status is ACTIVE may start work before the pocket card arrives, carrying a TOPS screenshot or printout. DPS Private Security News, June 6, 2025 [17]
• 2025-10-08Redesigned polycarbonate private security license card. Previously issued cards stay valid until they expire. Administrative only. DPS Private Security News, October 8, 2025 [17]
• 2024-09-11(Before the 2025-2027 window but in force on 2027-01-01, and missing from DPS's printed exam compilation.) Amendments to the standards-of-conduct, advertising and drug-free-workplace rules (37 TAC 35.5, 35.9, 35.13). Advertisements, including business cards, must show the company name, address (a residential address is excepted) and license number. 49 TexReg 7052 [3]

• Tex. Occ. Code ch. 1702 (Private Security Act), esp. §§1702.005, 1702.102, 1702.108, 1702.110, 1702.113, 1702.115, 1702.117-1702.118, 1702.122-1702.125, 1702.128-1702.129, 1702.134, 1702.221, 1702.282, 1702.301-1702.302, 1702.3841 — Private Security [1]
• Tex. Gov't Code ch. 411, Subch. Q-1 (§411.511 license terms/staggered renewal) and Subch. R (administrative penalties) — DPS regulatory programs; administrative penalties [2]
• Tex. Occ. Code ch. 53 — Consequences of Criminal Conviction [26]
• Tex. Occ. Code ch. 55 — Licensing of Military Service Members, Military Veterans, and Military Spouses [27]
• 37 Tex. Admin. Code Part 1, ch. 35 (§§35.1-35.186), esp. §35.4, §35.27, §35.30, §35.31, §§35.41-35.43, §35.122, §§35.131-35.132, §§35.181-35.186 — Private Security [3]
• 37 TAC §35.131(a) Figure — Private Security Licensing and Administrative Fees [28]

1. Texas Occupations Code Chapter 1702, Private Security (Private Security Act) - official Texas Legislature statutes file · retrieved 2026-11-09
2. Texas Government Code Ch. 411, Subch. Q-1 (Sec. 411.511 staggered renewal) and Subch. R (administrative penalties) · retrieved 2026-11-09
3. 37 Tex. Admin. Code Ch. 35, Private Security (all rules in effect 11/09/2026, Texas SOS official TAC portal, incl. figures 35.131(a) and 35.52(a)) · retrieved 2026-11-09
4. Texas DPS PSP - Company Representative Experience and Examination Information · retrieved 2026-11-09
5. Texas Private Security Statutes & Rules, 2023-2024 Edition (DPS, January 2025) - required printed reference for the open-book exam · retrieved 2026-11-09
6. Texas DPS - Scheduling a Manager Exam (TOPS instructions, Rev. 06-27-2018) · retrieved 2026-11-09
7. Texas DPS Private Security Fee Schedule (Rev. 09/03/2019) · retrieved 2026-11-09
8. Texas DPS Private Security Military Exemption Fee Schedule · retrieved 2026-11-09
9. Texas DPS - New Business Application Instructions (TOPS, Rev. 06-13-2018) · retrieved 2026-11-09
10. Texas DPS - Renewing a Business License (TOPS, Rev. 10-01-2021) · retrieved 2026-11-09
11. Texas DPS Form PSP-05 Certificate of Liability Insurance · retrieved 2026-11-09
12. Texas DPS Form PSP-62 Notice of Designation as Officer Overseeing Regulated Functions (Rev. 03/2025) · retrieved 2026-11-09
13. Texas DPS PSP - Company and School License Types · retrieved 2026-11-09
14. Texas DPS PSP - FAQ: Company Questions · retrieved 2026-11-09
15. Texas DPS PSP - FAQ: Insurance Questions · retrieved 2026-11-09
16. Texas DPS PSP - FAQ: Eligibility/Compliance Questions · retrieved 2026-11-09
17. Texas DPS PSP - Private Security News · retrieved 2026-11-09
18. Texas DPS PSP - Pending Administrative Rules · retrieved 2026-11-09
19. Texas DPS PSP - Exemptions from Local Regulations · retrieved 2026-11-09
20. Texas DPS PSP - Am I eligible to work? (working prior to licensure) · retrieved 2026-11-09
21. Texas DPS PSP - Licensing and Registration · retrieved 2026-11-09
22. Texas DPS PSP - Getting Started with TOPS · retrieved 2026-11-09
23. Texas DPS PSP - Laws and Regulations · retrieved 2026-11-09
24. Texas DPS PSP - Summary of New Laws Impacting Private Security (88th Legislature) · retrieved 2026-11-09
25. Texas DPS PSP - Overview · retrieved 2026-11-09
26. Texas Occupations Code ch. 53 Consequences of Criminal Conviction · retrieved 2026-11-09
27. Texas Occupations Code ch. 55 Licensing of Military Service Members, Veterans, and Spouses · retrieved 2026-11-09
28. Figure: 37 TAC §35.131(a) Private Security Licensing and Administrative Fees · retrieved 2026-11-09
29. DPS Private Security Application Instructions and Examples · retrieved 2026-11-09
30. DPS Private Security Laws and Regulations / Archived Legislation / Pending Rules · retrieved 2026-11-09
31. DPS Business Compliance Inspections · retrieved 2026-11-09
32. DPS TOPS Stakeholder Application Instructions · retrieved 2026-11-09

Compiled from the primary government sources above, retrieved on the dates shown. This page is a research summary, not legal advice. Confirm current requirements with the issuing authority before you file.