Texas 2009 - 81st Regular

Texas House Bill HB2249 Compare Versions

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1	1	H.B. No. 2249
2	2
3	3
4	4	AN ACT
5	5	relating to the regulation of staff leasing services.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 91.001, Labor Code, is amended by adding
8	8	Subdivisions (2-a) and (18) to read as follows:
9	9	(2-a) "Assurance organization" means an independent
10	10	entity approved by the commission that:
11	11	(A) provides a national program of accreditation
12	12	and financial assurance for staff leasing services companies;
13	13	(B) has documented qualifications, standards,
14	14	and procedures acceptable to the department; and
15	15	(C) agrees to provide information, compliance
16	16	monitoring services, and financial assurance useful to the
17	17	department in accomplishing the provisions of this chapter.
18	18	(18) "Working capital" of an applicant means the
19	19	applicant's current assets minus the applicant's current
20	20	liabilities as determined by generally accepted accounting
21	21	principles.
22	22	SECTION 2. Section 91.014, Labor Code, is amended to read as
23	23	follows:
24	24	Sec. 91.014. WORKING CAPITAL [NET WORTH] REQUIREMENTS. (a)
25	25	An applicant for an original or renewal license must demonstrate
26	26	positive working capital in the following amounts [a net worth as
27	27	follows]:
28	28	(1) $50,000 if the applicant employs fewer than 250
29	29	assigned employees;
30	30	(2) $75,000 if the applicant employs at least 250 but
31	31	not more than 750 assigned employees; and
32	32	(3) $100,000 if the applicant employs more than 750
33	33	assigned employees.
34	34	(b) The applicant shall [may] demonstrate the applicant's
35	35	working capital [net worth] to the department by providing the
36	36	department with the applicant's financial statement [or a copy of
37	37	the applicant's most recent federal tax return]. The financial
38	38	statement must be prepared in accordance with generally accepted
39	39	accounting principles, be audited by an independent certified
40	40	public accountant, and be without qualification as to the going
41	41	concern status of the applicant. An applicant that has not had
42	42	sufficient operating history to have audited financial statements
43	43	based on at least 12 months of operations must meet the financial
44	44	capacity requirements required by Subsection (a) and provide the
45	45	department with financial statements that have been reviewed by a
46	46	certified public accountant. The applicant may [also] satisfy
47	47	any deficiencies in the working capital [the net worth] requirement
48	48	through guarantees, letters of credit, a bond in an amount that
49	49	demonstrates compliance with the amounts required under
50	50	[requirements of] Subsection (a), or other security acceptable to
51	51	the department. A guaranty is not acceptable to satisfy this
52	52	subsection unless the applicant submits sufficient evidence to
53	53	satisfy the department that the guarantor has adequate resources to
54	54	satisfy the obligations of the guaranty.
55	55	(c) [In computing net worth, an applicant shall include
56	56	adequate reserves for all taxes and insurance, including reserves
57	57	for claims incurred but not paid and for claims incurred but not
58	58	reported under plans of self-insurance for health benefits. The
59	59	computation of net worth by an applicant is to be made according to
60	60	Section 448, Internal Revenue Code (26 U.S.C. Section 448).
61	61	[(d) A document submitted to establish net worth must show
62	62	the net worth on a date not earlier than nine months before the date
63	63	on which the application is submitted. A document submitted to
64	64	establish net worth must be prepared or certified by an independent
65	65	certified public accountant.] Information submitted to or
66	66	maintained by the department is subject to Chapter 552, Government
67	67	Code, other than information related to:
68	68	(1) identification of client companies;
69	69	(2) working capital [net worth];
70	70	(3) financial statements; or
71	71	(4) federal tax returns.
72	72	SECTION 3. Section 91.020, Labor Code, is amended to read as
73	73	follows:
74	74	Sec. 91.020. GROUNDS FOR DISCIPLINARY ACTION. The
75	75	department may take disciplinary action against a license holder on
76	76	any of the following grounds:
77	77	(1) engaging in staff leasing services or offering to
78	78	engage in the provision of staff leasing services without a
79	79	license;
80	80	(2) transferring or attempting to transfer a license
81	81	issued under this chapter;
82	82	(3) violating this chapter or any order or rule issued
83	83	by the executive director or commission under this chapter;
84	84	(4) failing after the 31st day after the date on which
85	85	a felony conviction of a controlling person is final to notify the
86	86	department in writing of the conviction;
87	87	(5) failing to cooperate with an investigation,
88	88	examination, or audit of the license holder's records conducted by
89	89	the license holder's insurance company or the insurance company's
90	90	designee, as allowed by the insurance contract or as authorized by
91	91	law by the Texas Department of Insurance;
92	92	(6) failing after the 31st day after the effective
93	93	date of a change in ownership, principal business address, or the
94	94	address of accounts and records to notify the department and the
95	95	Texas Department of Insurance of the change;
96	96	(7) failing to correct any tax filings or payment
97	97	deficiencies within a reasonable time as determined by the
98	98	executive director;
99	99	(8) refusing, after reasonable notice, to meet
100	100	reasonable health and safety requirements within the license
101	101	holder's control and made known to the license holder by a federal
102	102	or state agency;
103	103	(9) being delinquent in the payment of the license
104	104	holder's insurance premiums other than those subject to a
105	105	legitimate dispute;
106	106	(10) being delinquent in the payment of any employee
107	107	benefit plan premiums or contributions other than those subject to
108	108	a legitimate dispute;
109	109	(11) knowingly making a material misrepresentation to
110	110	an insurance company or to the department or other governmental
111	111	agency;
112	112	(12) failing to maintain the working capital [net
113	113	worth requirements] required under Section 91.014; or
114	114	(13) using staff leasing services to avert or avoid an
115	115	existing collective bargaining agreement.
116	116	SECTION 4. Subchapter B, Chapter 91, Labor Code, is amended
117	117	by adding Section 91.021 to read as follows:
118	118	Sec. 91.021. ELECTRONIC FILING AND COMPLIANCE. (a) The
119	119	commission may adopt rules to permit the acceptance of electronic
120	120	filings under this chapter, including the filing of applications,
121	121	documents, reports, and other documents required by this chapter.
122	122	The rules may provide for the acceptance of electronic filing and
123	123	other assurance by an assurance organization, qualified and
124	124	approved by the commission, that provides satisfactory assurance
125	125	and documentation of compliance acceptable to the department that
126	126	meets or exceeds the requirements of this chapter.
127	127	(b) A staff leasing services company may authorize an
128	128	assurance organization that is qualified and approved by the
129	129	commission to act on its behalf in complying with the licensing
130	130	requirements of this chapter, including the electronic filing of
131	131	information and the payment of application and licensing fees. Use
132	132	of an assurance organization is optional and is not mandatory for a
133	133	staff leasing services company.
134	134	(c) Nothing in this section may be construed to change or
135	135	affect the department's authority to issue licenses, revoke
136	136	licenses, conduct investigations, or enforce any provision of this
137	137	chapter.
138	138	SECTION 5. Subchapter D, Chapter 91, Labor Code, is amended
139	139	by adding Section 91.050 to read as follows:
140	140	Sec. 91.050. TAX CREDITS AND OTHER INCENTIVES. (a) For the
141	141	purpose of determining tax credits, grants, and other economic
142	142	incentives provided by this state or other governmental entities
143	143	that are based on employment, assigned employees are considered
144	144	employees of the client and the client is solely entitled to the
145	145	benefit of any tax credit, economic incentive, or other benefit
146	146	arising from the employment of assigned employees of the client.
147	147	This subsection applies even if the staff leasing services company
148	148	is the reporting employer for federal income tax purposes.
149	149	(b) If a grant or the amount of any incentive described by
150	150	Subsection (a) is based on the number of employees, each client
151	151	shall be treated as employing only those assigned employees
152	152	co-employed by the client. Assigned employees working for other
153	153	clients of the staff leasing services company may not be included in
154	154	the computation.
155	155	(c) Each staff leasing services company shall provide, on
156	156	the request of a client or an agency of this state, employment
157	157	information reasonably required by the state agency responsible
158	158	for the administration of any tax credit or economic incentive
159	159	described by Subsection (a) and necessary to support a request,
160	160	claim, application, or other action by a client seeking the tax
161	161	credit or economic incentive.
162	162	SECTION 6. Section 91.001(12), Labor Code, is repealed.
163	163	SECTION 7. The changes in law made by this Act regarding the
164	164	qualifications for or the issuance or renewal of a license apply to
165	165	a staff leasing services license issued or renewed under Chapter
166	166	91, Labor Code, on or after December 31, 2010. A license issued or
167	167	renewed before December 31, 2010, is governed by the law as it
168	168	existed immediately before that date, and that law is continued in
169	169	effect for that purpose.
170	170	SECTION 8. (a) Except as provided by Subsection (b) of this
171	171	section, this Act takes effect September 1, 2009.
172	172	(b) Section 91.014, Labor Code, as amended by this Act,
173	173	takes effect December 31, 2011.
174	174	______________________________ ______________________________
175	175	President of the Senate Speaker of the House
176	176	I certify that H.B. No. 2249 was passed by the House on April
177	177	24, 2009, by the following vote: Yeas 137, Nays 0, 1 present, not
178	178	voting.
179	179	______________________________
180	180	Chief Clerk of the House
181	181	I certify that H.B. No. 2249 was passed by the Senate on May
182	182	14, 2009, by the following vote: Yeas 31, Nays 0.
183	183	______________________________
184	184	Secretary of the Senate
185	185	APPROVED: _____________________
186	186	Date
187	187	_____________________
188	188	Governor