1-1 AN ACT
1-2 relating to the regulation of staff leasing services companies;
1-3 providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 91.001, Labor Code, is amended to read as
1-6 follows:
1-7 Sec. 91.001. DEFINITIONS. In this chapter:
1-8 (1) "Applicant" means a business entity applying for a
1-9 license or the renewal of a license under this chapter.
1-10 (2) "Assigned employee" means an [a full-time]
1-11 employee under a staff leasing services arrangement [whose normal
1-12 work week is at least 25 hours and] whose work is performed in this
1-13 state. The term does not include an employee hired to support or
1-14 supplement a client company's work force in a special work
1-15 situation, including:
1-16 (A) an employee absence;
1-17 (B) a temporary skill shortage;
1-18 (C) a seasonal workload; or
1-19 (D) a special assignment or project.
1-20 (3) "Client company" means a person that contracts
1-21 with a license holder and is assigned employees by the license
1-22 holder under that contract.
1-23 (4) "Commission" means the Texas Commission of
1-24 Licensing and Regulation.
2-1 (5) "Commissioner" means the commissioner of licensing
2-2 and regulation.
2-3 (6) "Common ownership" means a direct or indirect
2-4 ownership interest in excess of 33-1/3 percent. The term includes
2-5 ownership through subsidiaries or affiliates.
2-6 (7) "Controlling person" means an individual who:
2-7 (A) possesses direct or indirect control of 25
2-8 percent [an officer or director of a corporation that offers or
2-9 proposes to offer staff leasing services, a shareholder holding 10
2-10 percent] or more of the voting securities [stock] of a corporation
2-11 that offers or proposes to offer staff leasing services[, or a
2-12 partner of a partnership that offers or proposes to offer staff
2-13 leasing services]; [or]
2-14 (B) possesses the authority to set policy and
2-15 direct management of a company that offers or proposes to offer
2-16 staff leasing services;
2-17 (C) is employed, appointed, or authorized by a
2-18 company that offers or proposes to offer staff leasing services to
2-19 enter into a contract with a client company on behalf of the
2-20 company; or
2-21 (D) a person who is an officer or director of a
2-22 corporation or a general partner of a partnership that offers or
2-23 proposes to offer staff leasing services [an individual who
2-24 directly or indirectly has the power to direct or cause the
2-25 direction of the management or policies of a company that offers or
2-26 proposes to offer staff leasing services through:]
2-27 [(i) the ownership of voting securities;]
3-1 [(ii) contract; or]
3-2 [(iii) another means].
3-3 (8) [(7)] "Department" means the Texas Department of
3-4 Licensing and Regulation.
3-5 (9) "Governmental entity" means this state, or an
3-6 agency, county, or municipality of this state.
3-7 (10) [(8)] "Independent contractor" means a person who
3-8 contracts to perform work or provide a service for the benefit of
3-9 another and who:
3-10 (A) is paid by the job, not by the hour or some
3-11 other time-measured basis;
3-12 (B) is free to hire as many helpers as the
3-13 person desires and to determine what each helper will be paid; and
3-14 (C) is free to work for other contractors, or to
3-15 send helpers to work for other contractors, while under contract to
3-16 the hiring employer.
3-17 (11) [(9)] "License holder" means a person licensed
3-18 under this chapter to provide staff leasing services.
3-19 (12) "Net worth" of an applicant means the applicant's
3-20 assets minus the applicant's liabilities, as shown on the
3-21 applicant's financial statement or most recent federal tax return,
3-22 plus the sum of any guarantees, letters of credit, or securities
3-23 that may be submitted to the department.
3-24 (13) "Offer" means a proposal for acceptance or
3-25 rejection that is made in such a form that the promises or
3-26 performance to be rendered by each party are reasonably certain.
3-27 (14) [(10) "Public company" means a corporation whose
4-1 shares are listed on the New York Stock Exchange and that has
4-2 total assets that exceed $1 billion.]
4-3 [(11)] "Staff leasing services" means an arrangement
4-4 by which employees of a license holder are assigned to work at a
4-5 client company and in which employment responsibilities are in fact
4-6 shared by the license holder and the client company, the employee's
4-7 assignment is intended to be of a long-term or continuing nature,
4-8 rather than temporary or seasonal in nature, and a majority of the
4-9 work force at a client company worksite or a specialized group
4-10 within that work force consists of assigned employees of the
4-11 license holder. The term does not include:
4-12 (A) [a] temporary help [service];
4-13 (B) an independent contractor;
4-14 (C) the provision of services that otherwise
4-15 meet the definition of "staff leasing services" by one person
4-16 solely to other persons who are related to the service provider by
4-17 common ownership [a public company or any other person in which
4-18 that public company has a direct or indirect ownership interest in
4-19 excess of 33-1/3 percent, including ownership through subsidiaries
4-20 and affiliates]; or
4-21 (D) a temporary common worker employer as
4-22 defined by Chapter 92.
4-23 (15) [(12)] "Staff leasing services company" means a
4-24 business entity that offers staff leasing services.
4-25 [(13) "Temporary employee" means an employee hired for
4-26 a temporary help service.]
4-27 (16) [(14)] "Temporary help [service]" means an
5-1 arrangement by which an organization hires its own employees and
5-2 assigns them to a client to support or supplement the client's work
5-3 force in a special work situation, including:
5-4 (A) an employee absence;
5-5 (B) a temporary skill shortage;
5-6 (C) a seasonal workload; or
5-7 (D) a special assignment or project.
5-8 SECTION 2. Sections 91.002(a) and (c), Labor Code, are
5-9 amended to read as follows:
5-10 (a) The commissioner shall adopt rules as necessary to
5-11 administer this chapter[, including rules for the form and content
5-12 of a license issued under this chapter and a notice required under
5-13 Section 91.045].
5-14 (c) Notwithstanding any other provision of this chapter,
5-15 nothing in this [This] chapter preempts [does not preempt] the
5-16 existing statutory or rulemaking authority of any other state
5-17 agency or entity to regulate staff leasing services in a manner
5-18 consistent with the statutory authority of that state agency or
5-19 entity.
5-20 SECTION 3. Section 91.003(b), Labor Code, is amended to read
5-21 as follows:
5-22 (b) In particular, the Texas Workforce [Employment]
5-23 Commission, the Texas Department of Insurance, the Texas Workers'
5-24 Compensation Commission, and the attorney general's office shall
5-25 assist in the implementation of this chapter and shall provide
5-26 information to the department on request.
5-27 SECTION 4. Section 91.004, Labor Code, is amended by adding
6-1 Subsection (c) to read as follows:
6-2 (c) A license holder is not engaged in the unauthorized
6-3 practice of an occupation, trade, or profession that is licensed,
6-4 certified, or otherwise regulated by a governmental entity solely
6-5 by entering into a staff leasing agreement with a client company
6-6 and assigned employees.
6-7 SECTION 5. Section 91.012, Labor Code, is amended to read as
6-8 follows:
6-9 Sec. 91.012. GENERAL LICENSE REQUIREMENTS. [(a)] To be
6-10 qualified to serve as a controlling person of a license holder
6-11 under this chapter, that person must be at least 18 years of age[,
6-12 be of good moral character,] and have educational, managerial, or
6-13 business experience relevant to:
6-14 (1) operation of a business entity offering staff
6-15 leasing services; or
6-16 (2) service as a controlling person of a staff leasing
6-17 services company.
6-18 [(b) For purposes of this section, "good moral character"
6-19 means a personal history of honesty, trustworthiness, fairness, a
6-20 good reputation for fair dealing, and respect for the rights of
6-21 others and for the laws of this state and nation.]
6-22 SECTION 6. Section 91.013(a), Labor Code, is amended to read
6-23 as follows:
6-24 (a) On receipt of an original application for a license, the
6-25 [The] department shall conduct a thorough background investigation
6-26 of each individual applicant and of each controlling person of each
6-27 applicant to determine whether that applicant or controlling person
7-1 is qualified under this chapter. The department may deny an
7-2 application for the issuance [or renewal] of a license if the
7-3 department finds that an applicant or a controlling person is not
7-4 qualified under this chapter. The investigation must include:
7-5 (1) the submission of fingerprints for processing
7-6 through appropriate local, state, and federal law enforcement
7-7 agencies; and
7-8 (2) examination by the department of police or other
7-9 law enforcement records maintained by local, state, or federal law
7-10 enforcement agencies.
7-11 SECTION 7. Sections 91.014(b) and (d), Labor Code, are
7-12 amended to read as follows:
7-13 (b) The applicant may demonstrate the applicant's net worth
7-14 to the department by providing the department with the applicant's
7-15 financial statement or a copy of the applicant's most recent
7-16 federal tax return. The applicant may also satisfy the net worth
7-17 requirement through guarantees, letters of credit, a bond in an
7-18 amount that demonstrates compliance with the requirements of
7-19 Subsection (a), or other security acceptable to the department. A
7-20 guaranty is not acceptable to satisfy this subsection unless the
7-21 applicant submits sufficient evidence to satisfy the department
7-22 that the guarantor has adequate resources to satisfy the
7-23 obligations of the guaranty.
7-24 (d) A document submitted to establish net worth must show
7-25 the net worth on a date not earlier than nine [six] months before
7-26 the date on which the application is submitted. A document
7-27 submitted to establish net worth must be prepared or certified by
8-1 an independent certified public accountant. Information submitted
8-2 to or maintained by the department is subject to Chapter 552,
8-3 Government Code, other than information related to:
8-4 (1) identification of client companies;
8-5 (2) [supplied about] net worth;
8-6 (3) financial statements; or
8-7 (4) [, including copies of] federal tax returns[, is
8-8 proprietary and confidential and is exempt from disclosure to
8-9 persons other than other governmental agencies having a reasonable,
8-10 legitimate purpose for obtaining the information].
8-11 SECTION 8. Section 91.015, Labor Code, is amended to read as
8-12 follows:
8-13 Sec. 91.015. LICENSE APPLICATION. (a) To receive a staff
8-14 leasing services company original [or renewal] license, a person
8-15 shall [must] file with the department a written application
8-16 accompanied by the application fee.
8-17 (b) The department shall [may] require an applicant for a
8-18 license to provide information [and certifications] necessary to
8-19 determine that the applicant meets the licensing requirements of
8-20 this chapter. The department shall [may] also require the
8-21 applicant to provide information [and certifications] necessary to
8-22 determine whether individuals affiliated with the applicant are
8-23 qualified to serve as controlling persons.
8-24 (c) Before denying a license application, the department
8-25 shall provide written notice to an applicant specifying the reasons
8-26 for the denial. [An applicant or license holder is ineligible for
8-27 a license for two years after the date of a final department action
9-1 on the denial or revocation of a license applied for or issued
9-2 under this chapter. This restriction does not apply to a denial or
9-3 revocation of a license because of:]
9-4 [(1) an inadvertent error or omission in the
9-5 application if that error or omission is promptly corrected;]
9-6 [(2) insufficient experience documented to the
9-7 department at the time of the previous application; or]
9-8 [(3) the inability of the department to complete
9-9 the criminal background investigation required under Section 91.013
9-10 because of insufficient information received from a local, state,
9-11 or federal law enforcement agency.]
9-12 (d) Removal, demotion, or discharge of a controlling person
9-13 in response to an order of the department of the alleged
9-14 unsuitability of that controlling person is an affirmative defense
9-15 to any claim by that individual based on the removal, demotion, or
9-16 discharge. [An applicant or license holder is ineligible for a
9-17 license for one year after the date of a final department action on
9-18 the denial or revocation of a license applied for or issued under
9-19 this chapter if the reason for the denial or revocation was that
9-20 one or more of the controlling persons affiliated with the
9-21 applicant or license holder was determined by the department to be
9-22 unsuitable and each unsuitable controlling person has in fact
9-23 ceased to be a controlling person of the applicant or license
9-24 holder.]
9-25 (e) A controlling person who has been evaluated by the
9-26 department under this chapter is not required to be reevaluated if
9-27 that person changes the person's affiliation or employment from one
10-1 applicant or license holder to another applicant or license holder.
10-2 (f) Following denial or revocation of a license, and prior
10-3 to issuing a new license or reinstating a license, the department
10-4 shall consider:
10-5 (1) the extent to which the applicant or license
10-6 holder has adequately corrected any problems; and
10-7 (2) whether the applicant or license holder has
10-8 demonstrated that the applicant or license holder had exercised due
10-9 diligence to avoid the reason or reasons for the denial or
10-10 revocation.
10-11 The applicant or license holder shall bear the burden of
10-12 proof with respect to Subdivisions (1) and (2).
10-13 SECTION 9. Section 91.016, Labor Code, is amended to read as
10-14 follows:
10-15 Sec. 91.016. LICENSE ISSUANCE; TERM. (a) The department
10-16 shall issue a license to an applicant who the department determines
10-17 has met [determined to meet] the requirements of this chapter. The
10-18 department shall notify an applicant of any deficiency in the
10-19 application not later than the 30th day after the date on which the
10-20 department receives the application forms. The department shall
10-21 issue the license not later than the 90th day after the date on
10-22 which the completed application is filed with the department.
10-23 (b) A license issued or renewed by the department under this
10-24 chapter is valid for two years from the date of the issuance or
10-25 renewal [one year]. The department shall renew a license on
10-26 receipt of a complete renewal application form [approved by the
10-27 department] and payment of the license [required] renewal fee
11-1 [fees].
11-2 (c) Each applicant or license holder shall disclose to the
11-3 department the addition of a new controlling person not later than
11-4 the 45th day after the date on which the person assumes the duties
11-5 of a controlling person. That person may serve as a controlling
11-6 person while the department is conducting any necessary
11-7 investigation. If the department determines not to approve the new
11-8 controlling person, the department shall notify the applicant or
11-9 license holder and that controlling person at least 20 days before
11-10 taking action against the applicant or license holder.
11-11 SECTION 10. Section 91.017(a), Labor Code, is amended to
11-12 read as follows:
11-13 (a) Each applicant for an original or renewal staff leasing
11-14 services company license shall pay to the department before [on]
11-15 the issuance of the license or license renewal a fee set by the
11-16 commission by rule in an amount not to exceed $6,000 for the
11-17 two-year license period [$3,000].
11-18 SECTION 11. Section 91.018, Labor Code, is amended by adding
11-19 Subsections (d)-(f) to read as follows:
11-20 (d) A license holder may amend the name specified in its
11-21 license to add a trade name, trademark, service mark, or parent
11-22 company name. An amendment made under this subsection must comply
11-23 with the requirements imposed under Subsection (a). The department
11-24 may charge a fee not to exceed $50 for processing of such an
11-25 amendment.
11-26 (e) A license holder offering staff leasing services in more
11-27 than one state may advertise in this state using the name of its
12-1 parent company or under a trade name, trademark, or service mark.
12-2 The trade name, trademark, service mark, or parent company name
12-3 must be listed on the license in addition to the licensed name used
12-4 by the license holder in this state.
12-5 (f) Each written proposal provided to a prospective client
12-6 company and each contract between a license holder and a client
12-7 company or assigned employee shall clearly identify the name of the
12-8 license holder. A proposal or contract may also identify the trade
12-9 name, trademark, service mark, or parent company name of the
12-10 license holder. A license holder may use written materials
12-11 including forms, benefit information, letterhead, and business
12-12 cards that bear only the trade name, trademark, service mark, or
12-13 parent company name of the license holder.
12-14 SECTION 12. Section 91.019, Labor Code, is amended to read
12-15 as follows:
12-16 Sec. 91.019. LIMITED LICENSE. (a) The commissioner by rule
12-17 shall provide for the issuance of a limited license to [for] a
12-18 person who seeks to offer [offers] limited staff leasing services
12-19 in this state and is domiciled [primarily engaged in offering
12-20 staff leasing services] in another state and licensed or registered
12-21 as a staff leasing services company in the state in which the
12-22 person is domiciled. [The principal place of business of a person
12-23 offering staff leasing services and who applies for a license under
12-24 this section must be located in a state other than this state.]
12-25 (b) For purposes of this section, a staff leasing services
12-26 company is considered to be offering [person offers] limited staff
12-27 leasing services if the staff leasing services company:
13-1 (1) [person] employs fewer than 50 [20] assigned
13-2 employees in this state at any one time;
13-3 (2) does not provide assigned employees to a client
13-4 company based or domiciled in this state; and
13-5 (3) does not maintain an office in this state or
13-6 solicit client companies located or domiciled in this state.
13-7 (c) A staff leasing services company that offers [person
13-8 offering] limited staff leasing services shall complete the
13-9 application forms and pay the fees for a limited license as
13-10 prescribed by the department. A limited license is valid for one
13-11 year from the date of issuance and may be renewed annually on
13-12 submission of a renewal application and payment of the required
13-13 fees [must comply with all provisions of this chapter with respect
13-14 to those services performed within this state].
13-15 (d) The department may use information obtained from
13-16 regulatory agencies in other states in evaluating an applicant for
13-17 a limited license.
13-18 SECTION 13. Section 91.020(a), Labor Code, is amended to
13-19 read as follows:
13-20 (a) The department may take disciplinary action against a
13-21 license holder on any of the following grounds:
13-22 (1) being convicted or having a controlling person of
13-23 the license holder who is convicted of:
13-24 (A) bribery, fraud, or intentional or material
13-25 misrepresentation in obtaining, attempting to obtain, or renewing a
13-26 license;
13-27 (B) a crime that relates to the operation of a
14-1 staff leasing service or the ability of the license holder or any
14-2 controlling person of the license holder to operate a staff leasing
14-3 service;
14-4 (C) a crime that relates to the classification,
14-5 misclassification, or under-reporting of employees under Subtitle
14-6 A, Title 5;
14-7 (D) a crime that relates to the establishment or
14-8 maintenance of a self-insurance program, whether health insurance,
14-9 workers' compensation insurance, or other insurance; or
14-10 (E) a crime that relates to fraud, deceit, or
14-11 misconduct in the operation of a staff leasing service;
14-12 (2) engaging in staff leasing services or offering to
14-13 engage in the provision of staff leasing services without a
14-14 license;
14-15 (3) transferring or attempting to transfer a license
14-16 issued under this chapter;
14-17 (4) violating this chapter or any order or rule issued
14-18 by the department or commissioner under this chapter;
14-19 (5) failing after the 31st day after the date on which
14-20 a felony conviction of a controlling person is final to notify the
14-21 department in writing of the conviction;
14-22 (6) failing to cooperate with an investigation,
14-23 examination, or audit of the license holder's records conducted by
14-24 the license holder's insurance company or the insurance company's
14-25 designee, as allowed by the insurance contract or as authorized by
14-26 law by the Texas Department of Insurance;
14-27 (7) failing after the 31st day after the effective
15-1 date of a change in ownership, principal business address, or the
15-2 address of accounts and records to notify the department and the
15-3 Texas Department of Insurance of the change;
15-4 (8) failing to correct any tax filings or payment
15-5 deficiencies within a reasonable time as determined by the
15-6 commissioner;
15-7 (9) refusing, after reasonable notice, to meet
15-8 reasonable health and safety requirements within the license
15-9 holder's control and made known to the license holder by a federal
15-10 or state agency;
15-11 (10) being delinquent in the payment of the license
15-12 holder's insurance premiums other than those subject to a
15-13 legitimate dispute;
15-14 (11) being delinquent in the payment of any employee
15-15 benefit plan premiums or contributions other than those subject to
15-16 a legitimate dispute;
15-17 (12) knowingly making a material misrepresentation to
15-18 an insurance company or to the department or other governmental
15-19 agency;
15-20 (13) failing to maintain the net worth requirements
15-21 required under Section 91.014; or
15-22 (14) using staff leasing services to avert or avoid an
15-23 existing collective bargaining agreement.
15-24 SECTION 14. Section 91.021, Labor Code, is amended to read
15-25 as follows:
15-26 Sec. 91.021. SANCTIONS [DISCIPLINARY PROCEDURES;
15-27 REINSTATEMENT]. (a) On a finding that a ground for disciplinary
16-1 action exists under one or more provisions of Section 91.020(a),
16-2 the department shall impose administrative sanctions as provided in
16-3 Section 17, Article 9100, Revised Statutes; provided however, for
16-4 the purposes of this Act, the department may impose an
16-5 administrative penalty in an amount not less than $1,000 for each
16-6 violation, but not more than $50,000 [may:]
16-7 [(1) deny an application for a license;]
16-8 [(2) revoke, restrict, or refuse to renew a license;]
16-9 [(3) impose an administrative penalty in an amount not
16-10 less than $1,000 for each violation, but not more than $50,000;]
16-11 [(4) issue a reprimand; or]
16-12 [(5) place the license holder on probation for the
16-13 period and subject to conditions that the department specifies].
16-14 (b) On revocation of a license, the license holder shall
16-15 immediately return the revoked license to the department.
16-16 (c) Disciplinary action may be taken, an application for a
16-17 new or renewal license may be denied, a license may be revoked, or
16-18 a determination that a controlling person is unqualified may be
16-19 made by the department only subject to Chapter 2001, Government
16-20 Code, with notice and an opportunity for hearing provided to the
16-21 affected applicant, license holder, or controlling person.
16-22 [(d) If a license is revoked or renewal is denied, the
16-23 affected license holder may request a reinstatement hearing after a
16-24 minimum of one year. The department may reinstate or renew the
16-25 license only if the cause of the revocation or nonrenewal has been
16-26 corrected.]
16-27 SECTION 15. Section 91.031, Labor Code, is amended by adding
17-1 Subsection (c) to read as follows:
17-2 (c) The written notice required by Subsection (b) must be
17-3 given to each assigned employee not later than the first payday
17-4 after the date on which that individual becomes an assigned
17-5 employee.
17-6 SECTION 16. Section 91.041(b), Labor Code, is amended to
17-7 read as follows:
17-8 (b) With respect to any insurance or benefit plan provided
17-9 by a license holder for the benefit of its assigned employees, a
17-10 [Each] license holder shall disclose the following information to
17-11 the department, each client company, and its assigned employees
17-12 [information relating to any insurance or benefit plan provided for
17-13 the benefit of its assigned employees. The information must
17-14 include]:
17-15 (1) the type of coverage;
17-16 (2) the identity of each insurer for each type of
17-17 coverage;
17-18 (3) the amount of benefits provided for each type of
17-19 coverage and to whom or in whose behalf benefits are to be paid;
17-20 (4) the policy limits on each insurance policy; and
17-21 (5) whether the coverage is fully insured, partially
17-22 insured, or fully self-funded.
17-23 SECTION 17. Section 91.044, Labor Code, is amended to read
17-24 as follows:
17-25 Sec. 91.044. UNEMPLOYMENT TAXES; PAYROLL. (a) A license
17-26 holder is the employer of an assigned employee for purposes of
17-27 Subtitle A, Title 4, and Chapter 61. In addition to any other
18-1 reports required to be filed by law, a license holder shall report
18-2 quarterly to the Texas Workforce [Employment] Commission on a form
18-3 prescribed by the Texas Workforce [Employment] Commission the name,
18-4 address, telephone number, federal income tax identification
18-5 number, and classification code as described in the "Standard
18-6 Industrial Classification Manual" published by the United States
18-7 Office of Management and Budget of each client company.
18-8 (b) [On contracting with a client company, a license holder
18-9 shall notify the Texas Employment Commission of the contract. The
18-10 notification shall be made in the form prescribed by the Texas
18-11 Employment Commission.]
18-12 [(c)] For purposes of Subtitle A, Title 4, in the event of
18-13 the termination of a contract between a license holder and a client
18-14 company or the failure by a staff leasing entity to submit reports
18-15 or make tax payments as required by that subtitle, the contracting
18-16 client company shall be treated as a new employer without a
18-17 previous experience record unless that client company is otherwise
18-18 eligible for an experience rating.
18-19 SECTION 18. Section 91.048, Labor Code, is amended to read
18-20 as follows:
18-21 Sec. 91.048. REQUIRED INFORMATION. Each license holder
18-22 shall:
18-23 (1) maintain adequate books and records regarding the
18-24 license holder's duties and responsibilities;
18-25 (2) maintain and make available at all times to the
18-26 commissioner the following information, which shall be treated as
18-27 proprietary and confidential and is exempt from disclosure to
19-1 persons other than other governmental agencies having a reasonable,
19-2 legitimate purpose for obtaining the information:
19-3 (A) the correct name, address, and telephone
19-4 number of each client company;
19-5 (B) each client company contract; and
19-6 (C) a listing by classification code as
19-7 described in the "Standard Industrial Classification Manual"
19-8 published by the United States Office of Management and Budget, of
19-9 each client company;
19-10 (3) notify the department of any addition or deletion
19-11 of a controlling person as listed on the license application or
19-12 renewal form by providing the name of the person not later than the
19-13 45th [30th] day after the date on which the person is added or
19-14 deleted as a controlling person; and
19-15 (4) provide a [notarized] biographical history to the
19-16 department in connection with the addition of a new controlling
19-17 person.
19-18 SECTION 19. Section 91.061, Labor Code, is amended to read
19-19 as follows:
19-20 Sec. 91.061. PROHIBITED ACTS. A person may not:
19-21 (1) engage in or offer staff leasing services without
19-22 holding a license under this chapter as a staff leasing services
19-23 company;
19-24 (2) use the name or title "staff leasing company,"
19-25 "employee leasing company," "licensed staff leasing company," [or]
19-26 "staff leasing services company," "professional employer
19-27 organization," or "administrative employer" or otherwise represent
20-1 that the entity is licensed under this chapter unless the entity
20-2 holds a license issued under this chapter;
20-3 (3) represent as the person's own the license of
20-4 another person or represent that a person is licensed if the person
20-5 does not hold a license;
20-6 (4) give materially false or forged evidence to the
20-7 department in connection with obtaining or renewing a license or in
20-8 connection with disciplinary proceedings under this chapter; or
20-9 (5) use or attempt to use a license that has expired
20-10 or been revoked.
20-11 SECTION 20. Subchapter C, Chapter 201, Labor Code, is
20-12 amended by adding Section 201.030 to read as follows:
20-13 Sec. 201.030. STAFF LEASING SERVICES COMPANY. For the
20-14 purposes of this subtitle, "staff leasing services company" has the
20-15 meaning assigned by Section 91.001.
20-16 SECTION 21. Section 207.045, Labor Code, is amended by
20-17 adding Subsection (i) to read as follows:
20-18 (i) An assigned employee of a staff leasing services company
20-19 is considered to have left the assigned employee's last work
20-20 without good cause if the staff leasing services company
20-21 demonstrates that:
20-22 (1) the staff leasing services company gave written
20-23 notice to the assigned employee to contact the staff leasing
20-24 services company on termination of assignment at a client company;
20-25 and
20-26 (2) the assigned employee did not contact the staff
20-27 leasing services company regarding reassignment or continued
21-1 employment; provided that the assigned employee may show that good
21-2 cause existed for the assigned employee's failure to contact the
21-3 staff leasing services company.
21-4 SECTION 22. Chapter 91, Labor Code, as amended by this Act,
21-5 applies only to a staff leasing services company license that is
21-6 issued or renewed on or after the effective date of this Act.
21-7 SECTION 23. Section 207.045, Labor Code, as amended by this
21-8 Act, applies only to a claim for unemployment compensation benefits
21-9 that is filed with the Texas Workforce Commission on or after the
21-10 effective date of this Act. A claim filed before that date is
21-11 governed by the law in effect on the date that the claim was filed,
21-12 and the former law is continued in effect for that purpose.
21-13 SECTION 24. This Act takes effect September 1, 1997.
21-14 SECTION 25. The importance of this legislation and the
21-15 crowded condition of the calendars in both houses create an
21-16 emergency and an imperative public necessity that the
21-17 constitutional rule requiring bills to be read on three several
21-18 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1465 was passed by the House on May
16, 1997, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1465 on May 28, 1997, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1465 was passed by the Senate, with
amendments, on May 26, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor