79R5079 PB-D

By:  Elkins                                                       H.B. No. 2552



A BILL TO BE ENTITLED

AN ACT

relating to the operation of staff leasing services companies.                
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 91.031, Labor Code, is amended to read as 
follows:       
	Sec. 91.031.  AGREEMENT[;  NOTICE].  [(a)]  A license holder 
shall establish the terms of a staff leasing services agreement by a 
written contract between the license holder and the client company.
	[(b)  The license holder shall give written notice of the 
agreement as it affects assigned employees to each employee 
assigned to a client company worksite.
	[(c)  The written notice required by Subsection (b) must be 
given to each assigned employee not later than the first payday 
after the date on which that individual becomes an assigned 
employee.]
	SECTION 2.  Section 91.043, Labor Code, is amended to read as 
follows:       
	Sec. 91.043.  HEALTH BENEFIT PLANS.  (a)  A license holder 
may [not] sponsor a plan of self-insurance for health benefits 
provided by the license holder for the benefit of assigned 
employees.  The license holder's health benefit plan must comply 
with the requirements of [except as permitted by] the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et 
seq.).
	(b)  For purposes of this section, a "plan of self-insurance" 
includes any arrangement other than [except] an arrangement under 
which an insurer [insurance carrier] authorized by the Texas 
Department of Insurance to engage in the [do] business of health 
insurance in this state has issued an insurance policy that covers 
all of the obligations of the health benefits plan.
	SECTION 3.  This Act takes effect September 1, 2005.