| 1 | 1 | | 88R11507 MAW-D |
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| 2 | 2 | | By: Dorazio H.B. No. 3909 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the classification of employees of a company license |
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| 8 | 8 | | holder under the Private Security Act. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter F, Chapter 1702, Occupations Code, is |
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| 11 | 11 | | amended by adding Section 1702.116 to read as follows: |
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| 12 | 12 | | Sec. 1702.116. VERIFICATION OF EMPLOYMENT CLASSIFICATION |
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| 13 | 13 | | FOR COMPANY LICENSE ISSUANCE. Before the department may issue a |
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| 14 | 14 | | company license under this chapter, the department must inspect the |
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| 15 | 15 | | employment records of the applicant to confirm that the applicant |
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| 16 | 16 | | has not misclassified employees as independent contractors in |
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| 17 | 17 | | violation of applicable federal guidelines. |
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| 18 | 18 | | SECTION 2. Section 1702.127, Occupations Code, is amended |
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| 19 | 19 | | by adding Subsection (b-1) to read as follows: |
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| 20 | 20 | | (b-1) A company license holder may not intentionally |
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| 21 | 21 | | misclassify an employee as an independent contractor in violation |
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| 22 | 22 | | of applicable federal guidelines. |
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| 23 | 23 | | SECTION 3. Subchapter M, Chapter 1702, Occupations Code, is |
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| 24 | 24 | | amended by adding Section 1702.3025 to read as follows: |
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| 25 | 25 | | Sec. 1702.3025. VERIFICATION OF EMPLOYMENT CLASSIFICATION |
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| 26 | 26 | | FOR COMPANY LICENSE RENEWAL. Before the department may renew a |
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| 27 | 27 | | company license under this chapter, the department must inspect the |
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| 28 | 28 | | employment records of the license holder to confirm that the |
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| 29 | 29 | | license holder has not misclassified employees as independent |
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| 30 | 30 | | contractors in violation of applicable federal guidelines. |
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| 31 | 31 | | SECTION 4. Sections 1702.116 and 1702.3025, Occupations |
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| 32 | 32 | | Code, as added by this Act, apply only to an application for the |
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| 33 | 33 | | issuance or renewal of a company license under Chapter 1702, |
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| 34 | 34 | | Occupations Code, that is submitted on or after the effective date |
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| 35 | 35 | | of this Act. An application submitted before the effective date of |
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| 36 | 36 | | this Act is governed by the law in effect on the date the |
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| 37 | 37 | | application was submitted, and the former law is continued in |
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| 38 | 38 | | effect for that purpose. |
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| 39 | 39 | | SECTION 5. This Act takes effect September 1, 2023. |
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