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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of certain staff leasing services |
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arrangements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 91.031(b) and (c), Labor Code, are |
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amended to read as follows: |
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(b) The license holder shall give [written] notice of the |
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agreement as it affects assigned employees to each employee |
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assigned to a client company worksite. The license holder shall |
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give the notice in writing or in an electronic document with a proof |
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of delivery receipt. |
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(c) The [written] notice required by Subsection (b) must be |
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given to each assigned employee not later than the first payday |
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after the date on which that individual becomes an assigned |
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employee. |
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SECTION 2. Section 91.043, Labor Code, is amended by adding |
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Subsection (c) to read as follows: |
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(c) A license holder, on behalf of its client companies, may |
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establish and sponsor a multiple employer welfare arrangement as |
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provided by Chapter 846, Insurance Code, to provide a health |
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benefit plan for the assigned employees of those client companies. |
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For purposes of this subsection, "health benefit plan" has the |
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meaning assigned by Section 846.001, Insurance Code. |
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SECTION 3. Section 846.053, Insurance Code, is amended by |
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adding Subsection (e-1) to read as follows: |
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(e-1) Notwithstanding Subsections (b) through (e), a |
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license holder under Chapter 91, Labor Code, on behalf of its client |
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companies, may establish and sponsor a multiple employer welfare |
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arrangement under this chapter to the extent authorized by the |
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Employee Retirement Income Security Act of 1974 (29 U.S.C. Section |
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1001 et seq.). |
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SECTION 4. This Act applies only to a contract between a |
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staff leasing services license holder and a client company that is |
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entered into on or after the effective date of this Act. A contract |
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entered into before that date is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2007. |