(1) Amend HB 1465 as follows:
In SECTION 1, amend Sec. 91.001(7) (the definition of
controlling person) to read as follows:
(7) "Controlling person" means an individual who:
(A) possesses direct or indirect control of 25 percent
<an officer or director of a corporation that offers or proposes to
offer staff leasing services, a shareholder holding 10 percent> or
more of the voting securities <stock> of a corporation that offers
or proposes to offer staff leasing services<, or a partner of a
partnership that offers or proposes to offer staff leasing
services>; <or>
(B) possesses the authority to set policy and direct
management of a company that offers or proposes to offer staff
leasing services;
(C) is employed, appointed, or authorized by a company
that offers or proposes to offer staff leasing services to enter
into a contract with a client company on behalf of the company; or
(D) a person who is an officer or director of a
corporation or a general partner of a partnership that offers or
proposes to offer staff leasing services <an individual who
directly or indirectly has the power to direct or cause the
direction of the management or policies of a company that offers or
proposes to offer staff leasing services through:>
<(i) the ownership of voting securities;>
<(ii) contract; or>
<(iii) another means>.
(2) In SECTION 8, amend Sec. 91.015(d) to read as follows
and add a Subsection (f):
Sec. 91.015. LICENSE APPLICATION. (a) To receive a staff
leasing services company original <or renewal> license, a person
shall <must> file with the department a written application
accompanied by the application fee.
(b) The department shall <may> require an applicant for a
license to provide information <and certifications> necessary to
determine that the applicant meets the licensing requirements of
this chapter. The department shall <may> also require the
applicant to provide information <and certifications> necessary to
determine whether individuals affiliated with the applicant are
qualified to serve as controlling persons.
(c) Before denying a license application, the department
shall provide written notice to an applicant specifying the reasons
for the denial. <An applicant or license holder is ineligible for
a license for two years after the date of a final department action
on the denial or revocation of a license applied for or issued
under this chapter. This restriction does not apply to a denial or
revocation of a license because of:>
<(1) an inadvertant error or omission in the
application if that error or omission is promptly corrected;>
<(2) insufficient experience documented to the
department at the time of the previous application; or>
<(3) the inability of the department to complete
the criminal background investigation required under Section 91.013
because of insufficient information received from a local, state,
or federal law enforcement agency.>
(d) Removal, demotion, or discharge of a controlling person
in response to an order of the department of the alleged
unsuitability of that controlling person is an affirmative defense
to any claim by that individual based on the removal, demotion, or
discharge. <An applicant or license holder is ineligible for a
license for one year after the date of a final department action on
the denial or revocation of a license applied for or issued under
this chapter if the reason for the denial or revocation was that
one or more of the controlling persons affiliated with the
applicant or license holder was determined by the department to be
unsuitable and each unsuitable controlling person has in fact
ceased to be a controlling person of the applicant or license
holder.>
(e) A controlling person who has been evaluated by the
department under this chapter is not required to be reevaluated if
that person changes the person's affiliation or employment from one
applicant or license holder to another applicant or license holder.
(f) Following denial or revocation of a license, and prior
to issuing a new license or reinstating a license, the Department
shall consider:
(1) the extent to which the applicant or license
holder has adequately corrected any problems; and
(2) whether the applicant or license holder has
demonstrated that the applicant or license holder had exercised due
diligence to avoid the reason or reasons for the denial or
revocation.
The applicant or license holder shall bear the burden of
proof with respect to Subdivisions (1) and (2).
(3) In SECTION 14, amend 91.021(a) to read as follows:
Sec. 91.021. SANCTIONS <DISCIPLINARY PROCEDURES;
REINSTATEMENT> (a) On a finding that a ground for disciplinary
action exists under one or more provisions of Section 91.020(a),
the department shall impose administrative sanctions as provided in
Section 17, Article 9100, Revised Statutes; provided however, for
the purposes of this Act, the department may impose an
administrative penalty in an amount not less than $1,000 for each
violation, but not more than $50,000 <may:>
<(1) deny an application for a license;>
<(2) revoke, restrict, or refuse to renew a license;>
<(3) impose an administrative penalty in an amount not
less than $1,000 for each violation, but not more than $50,000;>
<(4) issue a reprimand; or>
<(5) place the license holder on probation for the
period and subject to conditions that the department specifies>.
(4) deleting SECTION 16; and
(5) In SECTION 22, replace the existing language in
Subsection (i) with the following:
(i) An assigned employee of a staff leasing services company
is considered to have left the assigned employee's last work
without good cause if the staff leasing services company
demonstrates that:
(1) the staff leasing services company gave written
notice to the assigned employee to contact the staff leasing
services company on termination of assignment at a client company;
and
(2) the assigned employee did not contact the staff
leasing services company regarding reassignment or continued
employment; provided that the assigned employee may show that good
cause existed for the assigned employee's failure to contact the
staff leasing services company.