LABOR CODE
SUBTITLE E. REGULATION OF CERTAIN OCCUPATIONS
CHAPTER 91. STAFF LEASING SERVICES
SUBCHAPTER A. GENERAL PROVISIONS
§ 91.001. DEFINITIONS. In this chapter:
(1) "Applicant" means a business entity applying for a
license or the renewal of a license under this chapter.
(2) "Assigned employee" means an employee under a
staff leasing services arrangement whose work is performed in this
state. The term does not include an employee hired to support or
supplement a client company's work force in a special work
situation, including:
(A) an employee absence;
(B) a temporary skill shortage;
(C) a seasonal workload; or
(D) a special assignment or project.
(3) "Client company" means a person that contracts
with a license holder and is assigned employees by the license
holder under that contract.
(4) "Commission" means the Texas Commission of
Licensing and Regulation.
(5) Repealed by Acts 2003, 78th Leg., ch. 816, §
14.010(1).
(6) "Common ownership" means a direct or indirect
ownership interest in excess of 33-1/3 percent. The term includes
ownership through subsidiaries or affiliates.
(7) "Controlling person" means an individual who:
(A) possesses direct or indirect control of 25
percent or more of the voting securities of a corporation that
offers or proposes to offer staff leasing services;
(B) possesses the authority to set policy and
direct management of a company that offers or proposes to offer
staff leasing services;
(C) is employed, appointed, or authorized by a
company that offers or proposes to offer staff leasing services to
enter into a contract with a client company on behalf of the
company; or
(D) a person who is an officer or director of a
corporation or a general partner of a partnership that offers or
proposes to offer staff leasing services.
(8) "Department" means the Texas Department of
Licensing and Regulation.
(8-a) "Executive director" means the executive director of
the department.
(9) "Governmental entity" means this state, or an
agency, county, or municipality of this state.
(10) "Independent contractor" means a person who
contracts to perform work or provide a service for the benefit of
another and who:
(A) is paid by the job, not by the hour or some
other time-measured basis;
(B) is free to hire as many helpers as the person
desires and to determine what each helper will be paid; and
(C) is free to work for other contractors, or to
send helpers to work for other contractors, while under contract to
the hiring employer.
(11) "License holder" means a person licensed under
this chapter to provide staff leasing services.
(12) "Net worth" of an applicant means the applicant's
assets minus the applicant's liabilities, as shown on the
applicant's financial statement or most recent federal tax return,
plus the sum of any guarantees, letters of credit, or securities
that may be submitted to the department.
(13) "Offer" means a proposal for acceptance or
rejection that is made in such a form that the promises or
performance to be rendered by each party are reasonably certain.
(14) "Staff leasing services" means an arrangement by
which employees of a license holder are assigned to work at a client
company and in which employment responsibilities are in fact shared
by the license holder and the client company, the employee's
assignment is intended to be of a long-term or continuing nature,
rather than temporary or seasonal in nature, and a majority of the
work force at a client company worksite or a specialized group
within that work force consists of assigned employees of the
license holder. The term includes professional employer
organization services. The term does not include:
(A) temporary help;
(B) an independent contractor;
(C) the provision of services that otherwise meet
the definition of "staff leasing services" by one person solely to
other persons who are related to the service provider by common
ownership; or
(D) a temporary common worker employer as defined
by Chapter 92.
(15) "Staff leasing services company" means a business
entity that offers staff leasing services. The term includes a
professional employer organization.
(16) "Temporary help " means an arrangement by which
an organization hires its own employees and assigns them to a client
to support or supplement the client's work force in a special work
situation, including:
(A) an employee absence;
(B) a temporary skill shortage;
(C) a seasonal workload; or
(D) a special assignment or project.
(17) "Wages" means:
(A) compensation for labor or services rendered
by an assigned employee, whether computed on a time, task, piece, or
other basis; and
(B) vacation pay, holiday pay, sick leave pay,
parental leave pay, severance pay, bonuses, commissions, stock
option grants, or deferred compensation owed to an assigned
employee under a written agreement.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 1, eff. Sept.
1, 1997; Acts 1999, 76th Leg., ch. 771, § 1, eff. Sept. 1, 1999;
Acts 2003, 78th Leg., ch. 816, § 14.001, 14.010(1), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 833, § 1, eff. Sept. 1, 2003.
§ 91.002. RULES. (a) The commission shall adopt rules
as necessary to administer this chapter.
(b) Each person who offers staff leasing services is subject
to this chapter and the rules adopted by the commission.
(c) Notwithstanding any other provision of this chapter,
nothing in this chapter preempts the existing statutory or
rulemaking authority of any other state agency or entity to
regulate staff leasing services in a manner consistent with the
statutory authority of that state agency or entity.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 2, eff. Sept.
1, 1997; Acts 1999, 76th Leg., ch. 771, § 2, eff. Sept. 1, 1999;
Acts 2003, 78th Leg., ch. 816, § 14.002, eff. Sept. 1, 2003.
§ 91.003. INTERAGENCY COOPERATION. (a) Each state
agency that in performing duties under other law affects the
regulation of staff leasing services shall cooperate with the
department and other state agencies as necessary to implement and
enforce this chapter.
(b) In particular, the Texas Workforce Commission, the
Texas Department of Insurance, the Texas Workers' Compensation
Commission, and the attorney general's office shall assist in the
implementation of this chapter and shall provide information to the
department on request.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 3, eff. Sept.
1, 1997; Acts 2003, 78th Leg., ch. 816, § 26.016, eff. Sept. 1,
2003.
§ 91.004. EFFECT OF OTHER LAW ON CLIENTS AND
EMPLOYEES. (a) This chapter does not exempt a client of a license
holder, or any assigned employee, from any other license
requirements imposed under local, state, or federal law.
(b) An employee who is licensed, registered, or certified
under law and who is assigned to a client company is considered to
be an employee of the client company for the purpose of that
license, registration, or certification.
(c) A license holder is not engaged in the unauthorized
practice of an occupation, trade, or profession that is licensed,
certified, or otherwise regulated by a governmental entity solely
by entering into a staff leasing agreement with a client company and
assigned employees.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 4, eff. Sept.
1, 1997.
§ 91.005. APPLICATION OF CERTAIN PROCUREMENT
LAWS. With respect to a bid, contract, purchase order, or
agreement entered into with the state or a political subdivision of
the state, a client company's status or certification as a small,
minority-owned, disadvantaged, or woman-owned business enterprise
or as a historically underutilized business is not affected because
the client company has entered into an agreement with a license
holder or uses the services of a license holder.
Added by Acts 1999, 76th Leg., ch. 771, § 3, eff. Sept. 1, 1999.
§ 91.006. WORKERS' COMPENSATION COVERAGE. (a) A
certificate of insurance coverage showing that a license holder
maintains a policy of workers' compensation insurance constitutes
proof of workers' compensation insurance coverage for the license
holder and the client company with respect to all employees of the
license holder assigned to the client company. The state and a
political subdivision of the state shall accept a certificate of
insurance coverage described by this section as proof of workers'
compensation coverage under Chapter 406.
(b) For a client company that has employees who are not
assigned employees under a staff leasing services agreement, the
state or a political subdivision of the state may require the client
company to furnish separate proof of workers' compensation
insurance coverage for those employees.
Added by Acts 1999, 76th Leg., ch. 771, § 3, eff. Sept. 1, 1999.
§ 91.007. APPLICATION OF LABOR RELATIONS LAWS. This
chapter does not relieve a client company of a right, obligation, or
duty under:
(1) Chapter 101;
(2) the federal National Labor Relations Act (29
U.S.C. Section 151 et seq.);
(3) the federal Railway Labor Act (45 U.S.C. Section
151 et seq.); or
(4) any other law governing labor relations.
Added by Acts 1999, 76th Leg., ch. 771, § 3, eff. Sept. 1, 1999.
§ 91.008. APPLICABILITY OF CONTINUING EDUCATION
LAW. Section 51.405, Occupations Code, does not apply to this
chapter.
Added by Acts 2003, 78th Leg., ch. 816, § 14.003, eff. Sept. 1,
2003.
SUBCHAPTER B. LICENSE REQUIREMENTS
§ 91.011. LICENSE REQUIRED. A person may not engage in
or offer staff leasing services in this state unless the person
holds a license issued under this chapter.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995.
§ 91.012. GENERAL LICENSE REQUIREMENTS. To be
qualified to serve as a controlling person of a license holder under
this chapter, that person must be at least 18 years of age and have
educational, managerial, or business experience relevant to:
(1) operation of a business entity offering staff
leasing services; or
(2) service as a controlling person of a staff leasing
services company.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 5, eff. Sept.
1, 1997.
§ 91.013. BACKGROUND INVESTIGATIONS. (a) On receipt
of an original application for a license, the department shall
conduct a thorough background investigation of each individual
applicant and of each controlling person of each applicant to
determine whether that applicant or controlling person is qualified
under this chapter. The department may deny an application for the
issuance of a license if the department finds that an applicant or a
controlling person is not qualified under this chapter. The
investigation must include:
(1) the submission of fingerprints for processing
through appropriate local, state, and federal law enforcement
agencies; and
(2) examination by the department of police or other
law enforcement records maintained by local, state, or federal law
enforcement agencies.
(b) Department background investigations are governed by
this chapter, Section 411.122, Government Code, and Chapter 53,
Occupations Code. Conviction of a crime does not automatically
disqualify a controlling person, require the revocation of a
license, or require the denial of an application for a new or
renewed license. The department shall consider criminal
convictions as provided by Section 411.122, Government Code, and
Chapter 53, Occupations Code.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 6, eff. Sept.
1, 1997; Acts 2001, 77th Leg., ch. 1420, § 14.815, eff. Sept. 1,
2001.
§ 91.014. NET WORTH REQUIREMENTS. (a) An applicant
for an original or renewal license must demonstrate a net worth as
follows:
(1) $50,000 if the applicant employs fewer than 250
assigned employees;
(2) $75,000 if the applicant employs at least 250 but
not more than 750 assigned employees; and
(3) $100,000 if the applicant employs more than 750
assigned employees.
(b) The applicant may demonstrate the applicant's net worth
to the department by providing the department with the applicant's
financial statement or a copy of the applicant's most recent
federal tax return. The applicant may also satisfy the net worth
requirement through guarantees, letters of credit, a bond in an
amount that demonstrates compliance with the requirements of
Subsection (a), or other security acceptable to the department. A
guaranty is not acceptable to satisfy this subsection unless the
applicant submits sufficient evidence to satisfy the department
that the guarantor has adequate resources to satisfy the
obligations of the guaranty.
(c) In computing net worth, an applicant shall include
adequate reserves for all taxes and insurance, including reserves
for claims incurred but not paid and for claims incurred but not
reported under plans of self-insurance for health benefits. The
computation of net worth by an applicant is to be made according to
Section 448, Internal Revenue Code (26 U.S.C. Section 448).
(d) A document submitted to establish net worth must show
the net worth on a date not earlier than nine months before the date
on which the application is submitted. A document submitted to
establish net worth must be prepared or certified by an independent
certified public accountant. Information submitted to or
maintained by the department is subject to Chapter 552, Government
Code, other than information related to:
(1) identification of client companies;
(2) net worth;
(3) financial statements; or
(4) federal tax returns.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 7, eff. Sept.
1, 1997.
§ 91.015. LICENSE APPLICATION. (a) To receive a staff
leasing services company original license, a person shall file with
the department a written application accompanied by the application
fee.
(b) The department shall require an applicant for a license
to provide information necessary to determine that the applicant
meets the licensing requirements of this chapter. The department
shall also require the applicant to provide information necessary
to determine whether individuals affiliated with the applicant are
qualified to serve as controlling persons.
(c) Before denying a license application, the department
shall provide written notice to an applicant specifying the reasons
for the denial. The department shall provide the applicant at least
30 days after the date of the notice to address the reasons for the
denial. For good cause and on a showing of a good faith effort to
remedy the reasons for the denial, the executive director may grant
an additional 30 days to remedy the reasons for denial.
(d) Removal, demotion, or discharge of a controlling person
in response to notice from the department of the alleged
unsuitability of that controlling person is an affirmative defense
to any claim by that individual based on the removal, demotion, or
discharge.
(e) A controlling person who has been evaluated by the
department under this chapter is not required to be reevaluated if
that person changes the person's affiliation or employment from one
applicant or license holder to another applicant or license holder.
(f) Following denial or revocation of a license, and prior
to issuing a new license or reinstating a license, the department
shall consider:
(1) the extent to which the applicant or license
holder has adequately corrected any problems; and
(2) whether the applicant or license holder has
demonstrated that the applicant or license holder had exercised due
diligence to avoid the reason or reasons for the denial or
revocation.
The applicant or license holder shall bear the burden of
proof with respect to Subdivisions (1) and (2).
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 8, eff. Sept.
1, 1997; Acts 1999, 76th Leg., ch. 771, § 4, eff. Sept. 1, 1999;
Acts 2003, 78th Leg., ch. 816, § 26.017, eff. Sept. 1, 2003.
§ 91.016. LICENSE ISSUANCE; TERM. (a) The department
shall issue a license to an applicant who the department determines
has met the requirements of this chapter. The department shall
notify an applicant of any deficiency in the application not later
than the 30th day after the date on which the department receives
the application forms. The department shall issue the license not
later than the 90th day after the date on which the completed
application is filed with the department.
(b) A license issued or renewed by the department under this
chapter is valid for one year from the date of the issuance or
renewal. The department shall renew a license on receipt of a
complete renewal application form and payment of the license
renewal fee.
(c) Each applicant or license holder shall disclose to the
department the addition of a new controlling person not later than
the 45th day after the date on which the person assumes the duties
of a controlling person. That person may serve as a controlling
person while the department is conducting any necessary
investigation. If the department determines not to approve the new
controlling person, the department shall notify the applicant or
license holder and that controlling person at least 20 days before
taking action against the applicant or license holder.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 9, eff. Sept.
1, 1997; Acts 2003, 78th Leg., ch. 816, § 14.004, eff. Sept. 1,
2003.
§ 91.017. FEES. (a) Each applicant for an original or
renewal staff leasing services company license shall pay to the
department before the issuance of the license or license renewal a
fee set by the commission by rule.
(b) The commission is authorized to charge reasonable fees
for license applications and renewals, investigations,
inspections, and any other administrative or enforcement
responsibilities created under this chapter.
(c) Fees collected by the department under this chapter
shall be used to implement this chapter.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 10, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 816, § 14.005, eff.
Sept. 1, 2003.
§ 91.018. LICENSE NOT ASSIGNABLE; CHANGE OF NAME OR
LOCATION. (a) A license holder may not conduct business under any
name other than that specified in the license. A license issued
under this chapter is not assignable. A license holder may not
conduct business under any fictitious or assumed name without prior
written authorization from the department. The department may not
authorize the use of a name that is so similar to that of a public
office or agency or to that of another license holder that the
public may be confused or misled by the name's use. A license
holder may not conduct business under more than one name unless the
license holder has obtained a separate license for each name.
(b) A license holder may change the license holder's
licensed name at any time by notifying the department and paying a
fee for each change of name. The commission by rule shall set the
fee for a name change. A license holder may change the license
holder's name on renewal of the license without the payment of the
name change fee.
(c) A license holder must notify the department in writing
of:
(1) any change in the location of the license holder's
primary business office;
(2) the addition of more business offices; or
(3) a change in the location of business records
maintained by the license holder.
(d) A license holder may amend the name specified in its
license to add a trade name, trademark, service mark, or parent
company name. An amendment made under this subsection must comply
with the requirements imposed under Subsection (a). The department
may charge a fee for processing of such an amendment.
(e) A license holder offering staff leasing services in more
than one state may advertise in this state using the name of its
parent company or under a trade name, trademark, or service mark.
The trade name, trademark, service mark, or parent company name
must be listed on the license in addition to the licensed name used
by the license holder in this state.
(f) Each written proposal provided to a prospective client
company and each contract between a license holder and a client
company or assigned employee shall clearly identify the name of the
license holder. A proposal or contract may also identify the trade
name, trademark, service mark, or parent company name of the
license holder. A license holder may use written materials
including forms, benefit information, letterhead, and business
cards that bear only the trade name, trademark, service mark, or
parent company name of the license holder.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 11, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 816, § 14.006, eff.
Sept. 1, 2003.
§ 91.019. LIMITED LICENSE. (a) The commission by rule
shall provide for the issuance of a limited license to a person who
seeks to offer limited staff leasing services in this state.
(b) For purposes of this section, a staff leasing services
company is considered to be offering limited staff leasing services
if the staff leasing services company:
(1) employs fewer than 50 assigned employees in this
state at any one time;
(2) does not provide assigned employees to a client
company based or domiciled in this state; and
(3) does not maintain an office in this state or
solicit client companies located or domiciled in this state.
(c) A staff leasing services company that offers limited
staff leasing services shall complete the application forms and pay
the fees for a limited license as prescribed by the department. A
limited license is valid for one year from the date of issuance and
may be renewed annually on submission of a renewal application and
payment of the required fees.
(d) The department may use information obtained from
regulatory agencies in other states in evaluating an applicant for
a limited license.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 12, eff.
Sept. 1, 1997; Acts 1999, 76th Leg., ch. 771, § 5, eff. Sept. 1,
1999; Acts 2003, 78th Leg., ch. 816, § 14.007, eff. Sept. 1,
2003.
§ 91.020. GROUNDS FOR DISCIPLINARY ACTION. The
department may take disciplinary action against a license holder on
any of the following grounds:
(1) engaging in staff leasing services or offering to
engage in the provision of staff leasing services without a
license;
(2) transferring or attempting to transfer a license
issued under this chapter;
(3) violating this chapter or any order or rule issued
by the executive director or commission under this chapter;
(4) failing after the 31st day after the date on which
a felony conviction of a controlling person is final to notify the
department in writing of the conviction;
(5) failing to cooperate with an investigation,
examination, or audit of the license holder's records conducted by
the license holder's insurance company or the insurance company's
designee, as allowed by the insurance contract or as authorized by
law by the Texas Department of Insurance;
(6) failing after the 31st day after the effective
date of a change in ownership, principal business address, or the
address of accounts and records to notify the department and the
Texas Department of Insurance of the change;
(7) failing to correct any tax filings or payment
deficiencies within a reasonable time as determined by the
executive director;
(8) refusing, after reasonable notice, to meet
reasonable health and safety requirements within the license
holder's control and made known to the license holder by a federal
or state agency;
(9) being delinquent in the payment of the license
holder's insurance premiums other than those subject to a
legitimate dispute;
(10) being delinquent in the payment of any employee
benefit plan premiums or contributions other than those subject to
a legitimate dispute;
(11) knowingly making a material misrepresentation to
an insurance company or to the department or other governmental
agency;
(12) failing to maintain the net worth requirements
required under Section 91.014; or
(13) using staff leasing services to avert or avoid an
existing collective bargaining agreement.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 13, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 816, § 14.008, eff.
Sept. 1, 2003.
SUBCHAPTER C. STAFF LEASING SERVICES AGREEMENT
§ 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.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 15, eff.
Sept. 1, 1997.
§ 91.032. CONTRACT REQUIREMENTS. (a) A contract
between a license holder and a client company must provide that the
license holder:
(1) shares, as provided by Subsection (b), with the
client company the right of direction and control over employees
assigned to a client's worksites;
(2) assumes responsibility for the payment of wages to
the assigned employees without regard to payments by the client to
the license holder;
(3) assumes responsibility for the payment of payroll
taxes and collection of taxes from payroll on assigned employees;
(4) shares, as provided by Subsection (b), with the
client company the right to hire, fire, discipline, and reassign
the assigned employees; and
(5) shares, as provided by Subsection (b), with the
client company the right of direction and control over the adoption
of employment and safety policies and the management of workers'
compensation claims, claim filings, and related procedures.
(b) Notwithstanding any other provision of this chapter, a
client company retains responsibility for:
(1) the direction and control of assigned employees as
necessary to conduct the client company's business, discharge any
applicable fiduciary duty, or comply with any licensure,
regulatory, or statutory requirement;
(2) goods and services produced by the client company;
and
(3) the acts, errors, and omissions of assigned
employees committed within the scope of the client company's
business.
(c) Notwithstanding Subsection (a)(2), a client company is
solely obligated to pay any wages for which:
(1) obligation to pay is created by an agreement,
contract, plan, or policy between the client company and the
assigned employee; and
(2) the staff leasing services company has not
contracted to pay.
(d) Each staff leasing services company shall disclose the
requirements of Subsection (c) in writing to each assigned
employee.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1999, 76th Leg., ch. 771, § 7, eff. Sept.
1, 1999; Acts 2003, 78th Leg., ch. 833, § 2, eff. Sept. 1, 2003.
SUBCHAPTER D. POWERS AND DUTIES OF LICENSE HOLDER
§ 91.041. EMPLOYEE BENEFIT PLANS; REQUIRED DISCLOSURE;
OTHER REPORTS. (a) A license holder may sponsor and maintain
employee benefit plans for the benefit of assigned employees. A
client company may include assigned employees in any benefit plan
sponsored by the client company.
(b) With respect to any insurance or benefit plan provided
by a license holder for the benefit of its assigned employees, a
license holder shall disclose the following information to the
department, each client company, and its assigned employees:
(1) the type of coverage;
(2) the identity of each insurer for each type of
coverage;
(3) the amount of benefits provided for each type of
coverage and to whom or in whose behalf benefits are to be paid;
(4) the policy limits on each insurance policy; and
(5) whether the coverage is fully insured, partially
insured, or fully self-funded.
(c) The commission by rule may require a license holder to
file other reports that are reasonably necessary for the
implementation of this chapter.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 16, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 816, § 14.009, eff.
Sept. 1, 2003.
§ 91.042. WORKERS' COMPENSATION INSURANCE. (a) A
license holder may elect to obtain workers' compensation insurance
coverage for the license holder's assigned employees through an
insurance company as defined under Section 401.011(28) or through
self-insurance as provided under Chapter 407.
(b) If a license holder maintains workers' compensation
insurance, the license holder shall pay workers' compensation
insurance premiums based on the experience rating of the client
company for the first two years the client company has a contract
with the license holder and as further provided by rule by the Texas
Department of Insurance.
(c) For workers' compensation insurance purposes, a license
holder and the license holder's client company shall be
coemployers. If a license holder elects to obtain workers'
compensation insurance, the client company and the license holder
are subject to Sections 406.034 and 408.001.
(d) If a license holder does not elect to obtain workers'
compensation insurance, both the license holder and the client
company are subject to Sections 406.004 and 406.033.
(e) After the expiration of the two-year period under
Subsection (b), if the client company obtains a new workers'
compensation insurance policy in the company's own name or adds the
company's former assigned workers to an existing policy, the
premium for the workers' compensation insurance policy of the
company shall be based on the lower of:
(1) the experience modifier of the company before
entering into the staff leasing arrangement; or
(2) the experience modifier of the license holder at
the time the staff leasing arrangement terminated.
(f) On request, the Texas Department of Insurance shall
provide the necessary computations to the prospective workers'
compensation insurer of the client company to comply with
Subsection (e).
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995.
§ 91.043. HEALTH BENEFIT PLANS. (a) A license holder
may not sponsor a plan of self-insurance for health benefits 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 except an arrangement under which an
insurance carrier authorized to do business in this state has
issued an insurance policy that covers all of the obligations of the
health benefits plan.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995.
§ 91.044. UNEMPLOYMENT TAXES; PAYROLL. (a) A license
holder is the employer of an assigned employee for purposes of
Subtitle A, Title 4, and, except for wages subject to Section
91.032(c), for purposes of Chapter 61. In addition to any other
reports required to be filed by law, a license holder shall report
quarterly to the Texas Workforce Commission on a form prescribed by
the Texas Workforce Commission the name, address, telephone number,
federal income tax identification number, and classification code
as described in the "Standard Industrial Classification Manual"
published by the United States Office of Management and Budget of
each client company.
(b) For purposes of Subtitle A, Title 4, in the event of the
termination of a contract between a license holder and a client
company or the failure by a staff leasing entity to submit reports
or make tax payments as required by that subtitle, the contracting
client company shall be treated as a new employer without a previous
experience record unless that client company is otherwise eligible
for an experience rating.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 17, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 833, § 3, eff. Sept. 1,
2003.
§ 91.045. POSTING REQUIREMENTS. (a) Each license
holder shall post in a conspicuous place in the license holder's
principal place of business in this state the license issued under
this chapter.
(b) Each license holder shall display, in a place that is in
clear and unobstructed public view, a notice stating that the
business operated at the location is licensed and regulated by the
department and that any questions or complaints should be directed
to the department.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995.
§ 91.046. CONTRACTUAL DUTIES. Each license holder is
responsible for the license holder's contractual duties and
responsibilities to manage, maintain, collect, and make timely
payments for:
(1) insurance premiums;
(2) benefit and welfare plans;
(3) other employee withholding; and
(4) any other expressed responsibility within the
scope of the contract for fulfilling the duties imposed under this
section and Sections 91.032, 91.047, and 91.048.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995.
§ 91.047. COMPLIANCE WITH OTHER LAWS. Each license
holder shall comply with all appropriate state and federal laws
relating to reporting, sponsoring, filing, and maintaining benefit
and welfare plans.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995.
§ 91.048. REQUIRED INFORMATION. Each license holder
shall:
(1) maintain adequate books and records regarding the
license holder's duties and responsibilities;
(2) maintain and make available at all times to the
executive director the following information, which shall be
treated as proprietary and confidential and is exempt from
disclosure to persons other than other governmental agencies having
a reasonable, legitimate purpose for obtaining the information:
(A) the correct name, address, and telephone
number of each client company;
(B) each client company contract; and
(C) a listing by classification code as described
in the "Standard Industrial Classification Manual" published by the
United States Office of Management and Budget, of each client
company;
(3) notify the department of any addition or deletion
of a controlling person as listed on the license application or
renewal form by providing the name of the person not later than the
45th day after the date on which the person is added or deleted as a
controlling person; and
(4) provide a biographical history to the department
in connection with the addition of a new controlling person.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 18, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 816, § 26.018, eff.
Sept. 1, 2003.
§ 91.049. AGENT FOR SERVICE OF PROCESS. Each license
holder shall maintain a registered agent for the service of process
in this state.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995.
SUBCHAPTER E. PROHIBITED ACTS; PENALTY
§ 91.061. PROHIBITED ACTS. A person may not:
(1) engage in or offer staff leasing services without
holding a license under this chapter as a staff leasing services
company;
(2) use the name or title "staff leasing company,"
"employee leasing company," "licensed staff leasing company,"
"staff leasing services company," "professional employer
organization," or "administrative employer" or otherwise represent
that the entity is licensed under this chapter unless the entity
holds a license issued under this chapter;
(3) represent as the person's own the license of
another person or represent that a person is licensed if the person
does not hold a license;
(4) give materially false or forged evidence to the
department in connection with obtaining or renewing a license or in
connection with disciplinary proceedings under this chapter; or
(5) use or attempt to use a license that has expired or
been revoked.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1379, § 19, eff.
Sept. 1, 1997.
§ 91.062. ACTION BY ATTORNEY GENERAL. (a) The
executive director may notify the attorney general of a violation
of this chapter. The attorney general may apply to a district court
in Travis County for permission to file for quo warranto relief,
injunctive relief, or both.
(b) The attorney general may not be required to post a bond
for injunctive relief under this section.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995. Amended by Acts 2003, 78th Leg., ch. 816, § 26.019, eff.
Sept. 1, 2003.
§ 91.063. CRIMINAL PENALTY. (a) A person who violates
Section 91.061 commits an offense.
(b) An offense under this section is a Class A misdemeanor.
Added by Acts 1995, 74th Leg., ch. 76, § 9.20(a), eff. Sept. 1,
1995.
