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TX-QM Study Guide 2026: How to Pass on Your First Attempt

TL;DR
  • The exam is 50 open-book multiple-choice/true-false questions in 2 hours, and you need 70% to pass.
  • Study Texas Occupations Code Chapter 1702 and Texas Administrative Code Chapter 35 line by line - this is an open-book test of statute application, not...
  • One exam attempt is included with your original company license fee; retakes cost $100 each, subject to appointment availability within your 90-day application...
  • The standalone "qualified manager" registration ended September 1, 2019 - the role tested today is the Company Representative, a designated role, not a...

What TX-QM Means Today

If you searched "Texas Qualified Manager" or "Texas QM," you landed on the right topic, but the credential itself has changed shape. The Texas Department of Public Safety's Private Security Program retired the standalone qualified-manager registration on September 1, 2019. What remains - and what this guide is built around - is the Company Representative Examination, the current DPS-administered test that private security company representatives must pass to satisfy the state's licensing requirements under Texas Occupations Code Chapter 1702.

In practice, "company representative" is a designated role tied to a licensed security company, not a separate license or pocket card you carry independently. That distinction matters for how you prepare: the exam still tests the same regulatory backbone that the old qualified-manager exam covered, but the administrative structure around it has been simplified. If you're mapping out exactly what falls under this credential, our What Is TX-QM? and TX-QM Meaning breakdowns walk through the terminology in more depth, and What Does TX-QM Stand For? untangles the acronym confusion many candidates run into during their first search.

Why the Terminology Still Matters: Employers, training providers, and even some older study guides still use "TX-QM" and "qualified manager" interchangeably with the current company representative role. When you're researching prep materials, confirm they reference the DPS Company Representative Examination and current Chapter 35 rules - not a discontinued registration structure.

Exam Format and Passing Score

The exam itself is refreshingly predictable once you understand its structure. DPS administers a written, open-book examination consisting of 50 multiple-choice and true-false questions, and you're given 2 hours to complete it. The passing threshold is 70%.

Because the exam is open-book, the real skill being tested isn't recall - it's your ability to locate and apply the correct statute or rule quickly under time pressure. That changes how you should study. Instead of trying to memorize every subsection of Chapter 1702, focus on knowing where each topic lives in the statute and administrative code so you can find it fast during the test.

For a deeper look at exactly how many points separate a pass from a retake, and how the 70% threshold is calculated against the 50-question format, see TX-QM Passing Score 2026: Exactly What You Need to Pass. If you're still deciding how much runway to give yourself before test day, How Hard Is the TX-QM Exam? Complete Difficulty Guide 2026 breaks down what makes the open-book format both easier and harder than a closed-book test.

Key Takeaway

Tab and highlight your printed Chapter 1702 and Chapter 35 copies by topic before test day - an open-book exam only helps you if you can navigate it in seconds, not minutes.

Core Content Areas to Master

DPS builds the Company Representative Examination around a specific set of statutory and regulatory topics rather than abstract security-management theory. Treat each of the following as its own mini-domain when you build your study plan.

Individual-License Eligibility

Covers who qualifies for individual licenses under Chapter 1702, including the age, experience, and background requirements that differ by license category.

  • Know the baseline eligibility criteria before layering on company-specific rules

Pre-Employment Procedures

The steps a licensed company must follow before hiring security personnel, including background checks and documentation timing.

  • Expect scenario-style questions testing sequence and timing, not just definitions

Applications

How individual and company applications are submitted, processed, and maintained through the state's licensing system.

  • Understand which forms correspond to which license types and roles

Employee and Business Records

Recordkeeping obligations for both personnel files and company operational records, including retention expectations.

  • Pay attention to what must be kept on-site versus what can be maintained centrally

Disciplinary Actions

The grounds and process DPS uses to discipline license holders, including how violations are categorized.

  • Focus on the relationship between violation type and consequence

Administrative Fines

How fines are assessed and the statutory basis for enforcement actions against companies and individuals.

  • Know the difference between fines tied to company-level violations versus individual conduct

For a full narrative walkthrough of how these content areas interconnect and where DPS tends to weight questions, our companion piece TX-QM Exam Domains 2026: Complete Guide to All 0 Content Areas goes topic by topic in more detail than we can cover here.

Eligibility Requirements

Before you can sit for the exam, you need to meet the eligibility criteria tied to the type of company you're representing. These requirements diverge depending on whether you're pursuing a guard-company or investigation-company designation.

Requirement TrackMinimum Criteria
Guard-Company RepresentativeAt least 21 years old; three years of relevant accumulated employment; one year of managerial or supervisory experience
Investigation-Company RepresentativeThree consecutive years of investigative experience, OR a qualifying criminal-justice/related bachelor's degree, OR specified degree-plus-experience combinations, OR a qualifying university-affiliated specialized course of at least 200 instructional hours

Note that additional service categories a company offers can require additional qualified representatives beyond the primary one - so a company operating both guard and investigation services may need to satisfy both eligibility tracks with different people. A full breakdown of every pathway, including how degree-plus-experience combinations are evaluated, lives in TX-QM Requirements 2026: Eligibility, Prerequisites & How to Qualify.

Registration, Fees, and TOPS Application

Applications for company and representative licensing go through TOPS, the state's online portal, and require both company and representative documentation submitted together.

One examination attempt is included with the original company license fee. The posted company fee schedule, including subscription charges, is:

License ClassFee (Including Subscription Charges)
Class A$361
Class B$412
Class C$556

These figures cover the company license itself; applicant fees, fingerprint processing, and insurance costs are billed separately and aren't included in the numbers above. If you don't pass on your first attempt, retakes cost $100 each, and scheduling depends on appointment availability within your 90-day application window - which is one more reason to walk in prepared rather than treat the first sitting as a practice run. Company licenses renew annually, while individual licenses generally run on a two-year cycle, with continuing education tied to the individual's licensed role rather than a separate qualified-manager credential.

For the complete cost picture - including how the included exam attempt factors into total first-year spending - see TX-QM Certification Cost 2026: Complete Pricing Breakdown. And if you're trying to time your application around available test slots, TX-QM Exam Dates 2026: Testing Windows, Deadlines & Scheduling covers how the 90-day window interacts with appointment availability.

Budget Reality Check: The $361-$556 range only reflects the company license fee. Factor applicant, fingerprint, and insurance costs into your total budget before applying, and remember a $100 retake fee adds up fast if you sit for the exam unprepared.

A Focused Study Timeline

Because the exam draws so heavily from two specific legal texts, your prep schedule should be organized around those documents rather than generic test-taking drills. Here's a structure that maps directly onto the content areas covered above.

Week 1

Statute Orientation

  • Read through Texas Occupations Code Chapter 1702 in full, tabbing sections on individual-license eligibility and applications
  • Cross-reference the 2023-2024 DPS-linked study compilation as your baseline
Week 2

Administrative Code Deep Dive

  • Work through Texas Administrative Code Chapter 35, focusing on pre-employment procedures and recordkeeping
  • Note any amendments beyond the 2023-2024 compilation, including licensing-document changes effective July 2, 2026
Week 3

Enforcement and Discipline

  • Study disciplinary action provisions and administrative fine schedules together, since exam questions often pair the two
  • Practice locating the correct citation for a given scenario under timed conditions
Week 4

Open-Book Simulation

  • Run a full 2-hour, 50-question practice session using only your tabbed printed statutes and rules
  • Review missed questions by returning to the specific Chapter 1702 or Chapter 35 section that governs them

This timeline compresses or stretches depending on your prior exposure to Chapter 1702 - someone already working in a supervisory security role may need only two weeks, while a first-time applicant may want six. For a broader look at how to structure prep beyond the four-week version, our main TX-QM Study Guide 2026: How to Pass on Your First Attempt resource pulls together additional pacing strategies alongside practice questions on our practice test platform.

Common Mistakes That Cause Retakes

Most avoidable failures on this exam trace back to a handful of predictable errors:

  • Studying the wrong edition. Relying solely on the 2023-2024 compilation without checking for subsequent Chapter 35 amendments - including licensing-document changes effective July 2, 2026 - can leave gaps in your understanding of current requirements.
  • Treating "open-book" as "open-note." DPS expects you to reference the actual statute and rule text, not personal summaries, so practice navigating the real documents rather than condensed cheat sheets alone.
  • Skipping the recordkeeping sections. Employee and business records questions are easy to underestimate because they feel administrative rather than legal, but they carry real weight on the exam.
  • Confusing company and individual eligibility rules. Guard-company and investigation-company eligibility tracks have different thresholds, and mixing them up on scenario questions is a common trap.
  • Waiting too long to schedule a retake. Retake availability depends on appointment slots within your 90-day application window, so don't assume you can simply resit the next day.

If you want a condensed, single-page reference to sanity-check your knowledge before test day, bookmark the TX-QM Cheat Sheet 2026: One-Page Review of Must-Know Facts.

What to Bring on Exam Day

Because this is an open-book exam, what you bring matters as much as what you've studied. DPS requires:

  • Printed copies of the relevant statutes and rules (Texas Occupations Code Chapter 1702 and Texas Administrative Code Chapter 35)
  • A driver license or other state-issued ID
  • Two sharpened pencils with erasers

Digital copies or annotated PDFs on a phone or tablet aren't a substitute for printed materials - plan to print, tab, and physically bring your reference documents. Arriving without them can cost you valuable exam time even if your knowledge is solid.

Key Takeaway

Organize your printed statute and rule copies by the six core content areas - eligibility, pre-employment, applications, records, discipline, and fines - so you can flip directly to the relevant section instead of scanning page by page.

Once you've passed, it's worth thinking beyond the exam itself. If you're weighing whether the credential and the underlying role are worth the investment relative to career trajectory, Is the TX-QM Certification Worth It? Complete ROI Analysis 2026 and TX-QM Salary Guide 2026: Complete Earnings Analysis look at the bigger picture, while TX-QM Jobs surveys where company representative qualifications tend to open doors. And if you want to keep testing your readiness with realistic practice questions, our practice exam platform mirrors the 50-question, open-book format described above.

Frequently Asked Questions

Is the Texas Qualified Manager exam still a separate credential from the Company Representative Examination?

No. The standalone qualified-manager registration ended September 1, 2019. What candidates now take is the DPS Company Representative Examination, which covers much of the same statutory ground under a designated-role structure rather than a separate license.

How many questions are on the exam and how long do I have?

The exam has 50 multiple-choice/true-false questions, and you're given 2 hours to complete it. It is open-book, so you're permitted to reference printed statutes and rules during the test.

What score do I need to pass?

You need to score at least 70% to pass. See the passing score guide linked above for how that percentage translates across the 50-question format.

How much does it cost if I need to retake the exam?

Retakes cost $100 each, and scheduling depends on appointment availability within your 90-day application window. One exam attempt is already included in the original company license fee, so retakes are an added cost beyond that initial fee.

Do eligibility requirements differ for guard companies versus investigation companies?

Yes. Guard-company representatives must be at least 21 with three years of relevant accumulated employment and one year of managerial or supervisory experience. Investigation-company eligibility can be met through three consecutive years of investigative experience, a qualifying degree, degree-plus-experience combinations, or a qualifying specialized course of at least 200 instructional hours.

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