Texas Department of Licensing and Regulation (TDLR) Market Research Report

Background

The Texas Department of Licensing and Regulation (TDLR) is a state agency established in 1909, responsible for licensing and regulating a diverse array of occupations, businesses, facilities, and equipment within Texas. TDLR's mission is to earn the trust of Texans daily by providing innovative regulatory solutions for its licensees and those they serve. The agency's vision is to be the best at creating 'next' practices that deliver low-cost licensing and regulatory services, coupled with an exceptional customer experience.

Key Strategic Focus

TDLR's strategic focus encompasses:

Comprehensive Licensing and Regulation: Overseeing 39 occupational and business licensing programs, ensuring compliance and professional standards across various industries.

Technological Modernization: Implementing digital licenses and consolidating licensing systems to enhance operational efficiency and customer service.

Human Trafficking Prevention: Providing certification for multiple public-facing license holders, including speech-language pathologists and behavior analysts, to combat human trafficking.

Financials and Funding

For the fiscal year 2024, TDLR's budget is set at $83.3 million, with a reduction to $51.7 million in 2025. The Texas Legislature allocated $33 million for the department to acquire a modern and comprehensive licensing system, reflecting a commitment to technological advancement.

Pipeline Development

TDLR is actively working on:

Digital Licensing Implementation: Following the enactment of HB 2453, the agency is developing digital licenses for the professions it oversees.

Licensing System Modernization: Utilizing the allocated $33 million to consolidate and modernize its licensing systems, aiming for completion in the upcoming biennium.

Technological Platform and Innovation

TDLR is committed to leveraging technology to enhance its regulatory functions:

Digital Licensing Platforms: Developing systems to issue digital licenses, improving accessibility and efficiency for licensees.

System Consolidation: Plans to consolidate multiple databases and manual processes into a unified, modern licensing system to streamline operations.

Leadership Team

Executive Director: Mike Arismendez leads the agency, overseeing its strategic direction and operations.

Chief Information Officer: John Fowler, serving since October 2021, is responsible for the agency's technological infrastructure and initiatives.

Leadership Changes

In 2025, TDLR is seeking a Chief Information Security Officer to guide strategic planning and safeguard systems, especially as the agency assumes responsibility for the state's lottery.

Competitor Profile

Market Insights and Dynamics

TDLR operates within the public administration sector, focusing on licensing and regulation. The agency's role is critical in maintaining professional standards and public safety across various industries in Texas.

Competitor Analysis

While TDLR is a unique entity within Texas, other state agencies with regulatory functions include:

Texas Alcoholic Beverage Commission (TABC): Regulates the production, sale, and use of alcoholic beverages in Texas.

Railroad Commission of Texas: Oversees the state's oil and gas industry, gas utilities, pipeline safety, and surface coal and uranium mining.

Strategic Collaborations and Partnerships

TDLR collaborates with various advisory boards composed of licensees, industry representatives, public members, and other professionals. These boards provide technical knowledge and industry expertise, offering real-world insights that are critical in helping TDLR effectively carry out its mission.