SENATE ENGROSSED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Subchapter A,
Chapter 21, Labor Code, is amended by adding Section 21.0022 to read as
follows:
Sec. 21.0022. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
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SECTION 1. Subchapter A,
Chapter 21, Labor Code, is amended by adding Section 21.0022 to read as
follows:
Sec. 21.0022. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
(c) With respect to a specific claim for relief under this chapter
made by a franchisee or a franchisee's employee, this section does not
apply to a franchisor who has been found by a court of competent
jurisdiction to have exercised a type or degree of control over the
franchisee or the franchisee's employees not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademarks and
brand.
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SECTION 2. Subchapter A,
Chapter 61, Labor Code, is amended by adding Section 61.0031 to read as
follows:
Sec. 61.0031. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
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SECTION 2. Subchapter A,
Chapter 61, Labor Code, is amended by adding Section 61.0031 to read as
follows:
Sec. 61.0031. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
(c) With respect to a specific claim for relief under this chapter
made by a franchisee or a franchisee's employee, this section does not
apply to a franchisor who has been found by a court of competent
jurisdiction to have exercised a type or degree of control over the
franchisee or the franchisee's employees not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademarks and
brand.
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SECTION 3. Subchapter A,
Chapter 62, Labor Code, is amended by adding Section 62.006 to read as follows:
Sec. 62.006. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
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SECTION 3. Subchapter A,
Chapter 62, Labor Code, is amended by adding Section 62.006 to read as
follows:
Sec. 62.006. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
(c) With respect to a specific claim for relief under this chapter
made by a franchisee or a franchisee's employee, this section does not
apply to a franchisor who has been found by a court of competent
jurisdiction to have exercised a type or degree of control over the
franchisee or the franchisee's employees not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademarks and
brand.
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SECTION 4. Chapter 91, Labor
Code, is amended by adding Section 91.0013 to read as follows:
Sec. 91.0013. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be in a coemployment
relationship with:
(1) a franchisee; or
(2) a franchisee's
employees.
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SECTION 4. Chapter 91, Labor
Code, is amended by adding Section 91.0013 to read as follows:
Sec. 91.0013. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be in a coemployment
relationship with:
(1) a franchisee; or
(2) a franchisee's
employees.
(c) With respect to a specific claim for relief under this chapter
made by a franchisee or a franchisee's employee, this section does not
apply to a franchisor who has been found by a court of competent
jurisdiction to have exercised a type or degree of control over the
franchisee or the franchisee's employees not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademarks and
brand.
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SECTION 5. Section 201.021,
Labor Code, is amended by adding Subsection (d) to read as follows:
(d) In this subsection,
"franchisee" and "franchisor" have the meanings
assigned by 16 C.F.R. Section 436.1. The definition of employer provided
by this section does not apply to a franchisor with respect to:
(1) a franchisee; or
(2) a franchisee's
employees.
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SECTION 5. Section 201.021,
Labor Code, is amended by adding Subsections (d) and (e) to read as
follows:
(d) In this subsection,
"franchisee" and "franchisor" have the meanings
assigned by 16 C.F.R. Section 436.1. The definition of employer provided
by this section does not apply to a franchisor with respect to:
(1) a franchisee; or
(2) a franchisee's
employees.
(e) With respect to a specific claim for relief under this
subtitle made by a franchisee or a franchisee's employee, Subsection (d)
does not apply to a franchisor who has been found by a court of competent
jurisdiction to have exercised a type or degree of control over the
franchisee or the franchisee's employees not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademarks and
brand.
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SECTION 6. Subchapter B,
Chapter 401, Labor Code, is amended by adding Section 401.014 to read as
follows:
Sec. 401.014. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
subtitle, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
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SECTION 6. Subchapter B,
Chapter 401, Labor Code, is amended by adding Section 401.014 to read as
follows:
Sec. 401.014. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
subtitle, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
(c) With respect to a specific claim for relief under this subtitle
made by a franchisee or a franchisee's employee, this section does not
apply to a franchisor who has been found by a court of competent
jurisdiction to have exercised a type or degree of control over the
franchisee or the franchisee's employees not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademarks and
brand.
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SECTION 7. Subchapter A,
Chapter 411, Labor Code, is amended by adding Section 411.005 to read as
follows:
Sec. 411.005. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
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SECTION 7. Subchapter A,
Chapter 411, Labor Code, is amended by adding Section 411.005 to read as
follows:
Sec. 411.005. FRANCHISORS
EXCLUDED. (a) In this section, "franchisee" and
"franchisor" have the meanings assigned by 16 C.F.R. Section
436.1.
(b) For purposes of this
chapter, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's
employees.
(c) With respect to a specific claim for relief under this chapter
made by a franchisee or a franchisee's employee, this section does not
apply to a franchisor who has been found by a court of competent
jurisdiction to have exercised a type or degree of control over the
franchisee or the franchisee's employees not customarily exercised by a
franchisor for the purpose of protecting the franchisor's trademarks and
brand.
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SECTION 8. The change in law
made by this Act applies only to the liability of a franchisor based on
conduct occurring on or after the effective date of this Act. Conduct by a
franchisor occurring before the effective date of this Act is governed by
the law in effect on the date the conduct occurred, and the former law is
continued in effect for that purpose.
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SECTION 8. Same as engrossed
version.
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SECTION 9. This Act takes
effect September 1, 2015.
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SECTION 9. Same as engrossed
version.
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