83(R) - 2013
Business, Industry, & Commerce
Relating to the regulation of professional employer services.
No significant fiscal impact is anticipated on the State or local governments.
Summary: Some groups contend that code relating to staff leasing services or professional employer services are outdated and unclear. HB 2763 seeks to address this issue. The noteworthy provisions of this legislation follow:
- This bill clarifies parts of the code with changes such as "professional employer organization", "coemployment relationship", and "covered employees".
- This bill classifies a client and license holder as employers under the law.
- This bill allows a license holder to sponsor a single welfare benefit plan of which a covered employee may participate.
- This bill allows a license holder to sponsor a benefit plan if it is not fully insured, provided it is approved by the commissioner of insurance.
- This bill specifies under what circumstances the client or license holder pay worker's compensation premiums.
- This bill places the burden of computations for worker's compensation on the insurer instead of the Texas Department of Insurance.
Analysis: Updating the code to modernize and clean up language is a healthy practice and we support provisions in this bill to accomplish that goal. However, excessive regulations place a heavy burden on businesses. Adding more regulations expands the size and scope of government. For instance, this bill grants additional rulemaking authority to both the insurance commissioner and the Texas Commission of Licensing and Regulation. Expanding the size and scope of government offends our limited government principle. For these reasons, TPPA remains neutral on HB 2763.