Texas 2025 - 89th Regular

Texas Senate Bill SB1254 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Zaffirini, Alvarado S.B. No. 1254
2		-
3		-
	1	+	By: Zaffirini S.B. No. 1254
	2	+	(In the Senate - Filed February 13, 2025; February 28, 2025,
	3	+	read first time and referred to Committee on Business & Commerce;
	4	+	March 31, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 10, Nays 0; March 31, 2025,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1254 By: Zaffirini
4	9
5	10
6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to the regulation of professional employer organizations.
9	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	15		SECTION 1. Section 91.001(11), Labor Code, is amended to
11	16		read as follows:
12	17		(11) "License holder" means a person who holds a
13	18		license issued by the department [licensed under this chapter] to
14	19		provide professional employer services.
15	20		SECTION 2. The heading to Section 91.016, Labor Code, is
16	21		amended to read as follows:
17	22		Sec. 91.016. LICENSE ISSUANCE; TERM; EFFECT OF
18	23		EXPIRATION.
19	24		SECTION 3. Section 91.016, Labor Code, is amended by
20	25		amending Subsection (b) and adding Subsection (d) to read as
21	26		follows:
22	27		(b) A license issued or renewed by the department under this
23	28		chapter is valid for one year from the date of the issuance or
24	29		renewal. The department shall renew a license in accordance with
25	30		Subchapter H, Chapter 51, Occupations Code, and the rules adopted
26	31		by the department [on receipt of a complete renewal application
27	32		form and payment of the license renewal fee].
28	33		(d) Notwithstanding any other law, for purposes of this
29	34		chapter, if a license holder fails to timely apply for license
30	35		renewal, the license holder's status as employer of a covered
31	36		employee continues until the expiration of 18 months after the date
32	37		the license expires. If the license holder fails to apply for
33	38		license renewal before the expiration of the 18th month after the
34	39		license expiration date:
35	40		(1) the license holder's status as employer of a
36	41		covered employee terminates; and
37	42		(2) the license holder is subject to disciplinary
38	43		action if the license holder engages in or offers professional
39	44		employer services at any time while the license is expired.
40	45		SECTION 4. Section 91.020, Labor Code, is amended to read as
41	46		follows:
42	47		Sec. 91.020. GROUNDS FOR DISCIPLINARY ACTION. The
43	48		department may take disciplinary action against a person under
44	49		Subchapter F, Chapter 51, Occupations Code, regardless of whether
45	50		the person holds a license under this chapter, [license holder] on
46	51		any of the following grounds:
47	52		(1) engaging in professional employer services or
48	53		offering to engage in the provision of professional employer
49	54		services:
50	55		(A) without a license; or
51	56		(B) while the person's license is expired,
52	57		suspended, or inactive;
53	58		(2) transferring or attempting to transfer a license
54	59		issued under this chapter;
55	60		(3) violating this chapter or any order or rule issued
56	61		by the executive director or commission under this chapter;
57	62		(4) failing after the 31st day after the date on which
58	63		a felony conviction of a controlling person is final to notify the
59	64		department in writing of the conviction;
60	65		(5) failing to cooperate with an investigation,
61	66		examination, or audit of the license holder's records conducted by
62	67		the license holder's insurance company or the insurance company's
63	68		designee, as allowed by the insurance contract or as authorized by
64	69		law by the Texas Department of Insurance;
65	70		(6) failing after the 31st day after the effective
66	71		date of a change in ownership, principal business address, or the
67	72		address of accounts and records to notify the department and the
68	73		Texas Department of Insurance of the change;
69	74		(7) failing to correct any tax filings or payment
70	75		deficiencies within a reasonable time as determined by the
71	76		executive director;
72	77		(8) refusing, after reasonable notice, to meet
73	78		reasonable health and safety requirements within the license
74	79		holder's control and made known to the license holder by a federal
75	80		or state agency;
76	81		(9) being delinquent in the payment of the license
77	82		holder's insurance premiums other than those subject to a
78	83		legitimate dispute;
79	84		(10) being delinquent in the payment of any employee
80	85		benefit plan premiums or contributions other than those subject to
81	86		a legitimate dispute;
82	87		(11) knowingly making a material misrepresentation to
83	88		an insurance company or to the department or other governmental
84	89		agency;
85	90		(12) failing to maintain the working capital required
86	91		under Section 91.014; or
87	92		(13) using professional employer services to avert or
88	93		avoid an existing collective bargaining agreement.
89	94		SECTION 5. The changes in law made by this Act apply only to
90	95		conduct that occurs on or after the effective date of this Act.
91	96		Conduct that occurs before that date is governed by the law in
92	97		effect on the date the conduct occurred, and the former law is
93	98		continued in effect for that purpose.
94	99		SECTION 6. This Act takes effect September 1, 2025.
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