1. (a) The employment relationship between a licensed company and its registrants or commissioned guards must be such that the licensee's commercial liability insurance policy provides coverage for claims arising from the regulated services provided on behalf of the licensee by its registrants or commissioned guards. The failure to obtain and maintain such coverage is a violation of §1702.123 of the Act.
2. (b) A licensee shall not make application for any person knowing that the conditions of that person's employment do not conform to subsection (a) of this section.
3. (c) Registrants may only perform regulated services for the employer with whom they are registered. Registrants may not contract to perform a regulated service without being licensed as a company.
4. (d) No licensee shall place on duty any employee who tests positive for any drug(s) or substance(s) until a successive test indicates no trace of the drug(s) or substance(s) for which the tests are performed, unless such medication is being taken under the direction of a licensed physician.

Source Note:The provisions of this §35.181 adopted to be effective October 21, 2004, 29 TexReg 9686; amended to be effective February 7, 2008, 33 TexReg 948; amended to be effective April 19, 2011, 36 TexReg 2416.