By Brimer                                             H.B. No. 1399
         77R3649 JMM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to workers' compensation insurance coverage for employees
 1-3     placed through a staff leasing services company.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 91.042(c) and (d), Labor Code, are
 1-6     amended to read as follows:
 1-7           (c)  For workers' compensation insurance purposes, a license
 1-8     holder and the license holder's client company shall be coemployers
 1-9     of the assigned employees only to the extent of the consequences of
1-10     the license holder's election to obtain workers' compensation
1-11     insurance.  If the license holder does not elect to obtain workers'
1-12     compensation insurance, both the license holder and the client
1-13     company are subject to Sections 406.004 and 406.033 and the
1-14     assigned employees are not entitled to workers' compensation
1-15     benefits.  If a license holder elects to obtain workers'
1-16     compensation insurance, the client company and the license holder
1-17     are subject to Sections 406.034 and 408.001.
1-18           (d)  For purposes of workers' compensation insurance coverage
1-19     and the determination of whether a license holder or a client
1-20     company is the employer of assigned employees, this chapter
1-21     supersedes the common-law right-of-control test [If a license
1-22     holder does not elect to obtain workers' compensation insurance,
1-23     both the license holder and the client company are subject to
1-24     Sections 406.004 and 406.033].
 2-1           SECTION 2.  This Act takes effect immediately if it receives
 2-2     a vote of two-thirds of all the members elected to each house, as
 2-3     provided by Section 39, Article III, Texas Constitution.  If this
 2-4     Act does not receive the vote necessary for immediate effect, this
 2-5     Act takes effect September 1, 2001.