Senate Bill 1255 took effect Sept. 1, 2025, and significantly rewrites Texas’ rules for mold assessors and remediators. The law amends Chapter 1958 of the Occupations Code, and the Texas Department of Licensing and Regulation (TDLR) is now reviewing the statute and preparing updated regulations. Although agencies caution that day‑to‑day operations remain unchanged until formal rules are adopted, several provisions in the statute have immediate implications for contractors and property owners.

Key changes to the mold program

• Mycotoxins removed from definition of “mold.” The law explicitly removes mycotoxins—hazardous compounds produced by some molds—from the statutory definition of mold, narrowing the scope of regulated contaminants.
• Demolition exemptions after disasters. Demolition of a structure after a fire or other disaster is now excluded from the scope of regulated activities. The statute does not define “structure,” “demolition” or “disaster,” which leaves considerable room for interpretation.
• Licensing requirements tightened. Previously, employees could perform mold assessment or remediation under a license holder’s supervision without holding individual licenses. SB 1255 repeals that provision, meaning workers must now obtain their own licenses.

Independent mold‑inspection firm NTX Enviro warns that these undefined terms could create loopholes. Questions remain about whether demolition includes interior gutting, whether a “structure” covers partial walls, and whether smaller events like burst pipes qualify as disasters. Without clarity, unscrupulous contractors might interpret the law broadly to bypass licensed Mold Assessment Consultants (MACs), leading to incomplete cleanup, cross‑contamination and legal problems.

Impacts on remediation contractors

The revised law aims to streamline emergency response, but it may create new risks and liabilities for contractors:

• Expanded licensing burden. Because employees can no longer work under their employer’s license, firms will need to ensure each worker holds a current Mold Assessment Technician or Mold Remediator license. Failing to license personnel could lead to citations or project shutdowns.
• Ambiguity around demolition exemptions. Contractors that demolish structures after disasters may believe they are exempt from mold‑licensing rules, yet misinterpreting the statute could expose them to enforcement actions or lawsuits from property owners.
• Potential for cross‑contamination and property disputes. NTX Enviro notes that poorly managed demolition and remediation can spread mold spores and mycotoxins, endanger occupants and jeopardize future property transactions. Without a proper Certificate of Mold Damage Remediation (CMDR), sellers may face disclosure issues and reduced property values.
• Higher scrutiny from insurers and lenders. Construction lenders and insurance carriers may require documentation of proper licensing and adherence to industry standards such as IICRC S520 and ASTM D7338. Gaps in compliance could lead to coverage denials.

Protecting businesses with pollution liability insurance

General liability policies often exclude pollution‑related losses, leaving contractors exposed if mold or mycotoxin contamination leads to health claims, property damage or regulatory fines. A tailored pollution liability policy can help mitigate these risks by covering:

• Cleanup and remediation costs. Expenses to remove mold, mycotoxins and associated hazardous materials from affected structures.
• Third‑party bodily injury and property damage. Claims from homeowners or tenants alleging illness, property loss or reduced property value due to inadequate remediation.
• Legal defense and settlements. Lawyer fees and court‑awarded damages arising from lawsuits or regulatory enforcement actions.
• Business interruption. Loss of revenue when operations are halted for investigations, licensing issues or corrective actions.

Takeaways for contractors

SB 1255 was designed to make it easier to rebuild after disasters, yet its vague language and added licensing requirements could catch contractors off guard. Remediation firms should:

1. Review the new statute and monitor TDLR’s rulemaking. Stay informed about the final definitions and administrative rules to avoid unintentional violations.
2. Ensure all employees hold appropriate licenses. Update training and renewals to reflect the repeal of the supervision loophole.
3. Clarify scope and terms before starting demolition. When responding to fire or water damage, verify whether work falls under the exemption and document decisions thoroughly.
4. Invest in comprehensive pollution liability insurance. Partner with an insurance advisor to secure coverage that addresses mold, mycotoxins and other environmental hazards.

Bottom line: The new Texas law offers opportunities to expedite post‑disaster cleanup, but its ambiguities raise liability concerns. Contractors who perform mold remediation or demolition should proceed carefully, ensure full compliance and carry robust pollution insurance to safeguard their businesses and protect clients.