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               A BILL TO BE ENTITLED
             | 
         
         
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			 | 
            
               AN ACT
             | 
         
         
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            relating to the deregulation of certain activities and occupations. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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			 | 
                   SECTION 1.  The following provisions are repealed: | 
         
         
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			 | 
                         (1)  Title 9, Agriculture Code; | 
         
         
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			 | 
                         (2)  Article 42A.511(b), Code of Criminal Procedure; | 
         
         
            | 
                
			 | 
                         (3)  Sections 91.001(1), (2-a), (4), (8), (8-a), (11),  | 
         
         
            | 
                
			 | 
            and (18), Labor Code; | 
         
         
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			 | 
                         (4)  Section 91.002, Labor Code; | 
         
         
            | 
                
			 | 
                         (5)  Section 91.008, Labor Code; | 
         
         
            | 
                
			 | 
                         (6)  Subchapter B, Chapter 91, Labor Code; | 
         
         
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			 | 
                         (7)  Section 91.045, Labor Code; | 
         
         
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			 | 
                         (8)  Section 91.048, Labor Code; | 
         
         
            | 
                
			 | 
                         (9)  Section 91.061, Labor Code; | 
         
         
            | 
                
			 | 
                         (10)  Chapter 802, Occupations Code; | 
         
         
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			 | 
                         (11)  Sections 1305.002(11-b) and (12), Occupations  | 
         
         
            | 
                
			 | 
            Code; | 
         
         
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			 | 
                         (12)  Section 1305.1601, Occupations Code; | 
         
         
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			 | 
                         (13)  Section 1305.1605, Occupations Code; | 
         
         
            | 
                
			 | 
                         (14)  Section 1305.162(e), Occupations Code; and | 
         
         
            | 
                
			 | 
                         (15)  Chapter 1802, Occupations Code. | 
         
         
            | 
                
			 | 
                   SECTION 2.  Section 22.001(1), Business & Commerce Code, is  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
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			 | 
                         (1)  "Auction company" means a person who engages in  | 
         
         
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			 | 
            the business of arranging, managing, sponsoring, advertising, or  | 
         
         
            | 
                
			 | 
            conducting auctions [has the meaning assigned by Section 1802.001,  | 
         
         
            | 
                
			 | 
            Occupations Code]. | 
         
         
            | 
                
			 | 
                   SECTION 3.  Articles 18.19(c), (d), and (e), Code of  | 
         
         
            | 
                
			 | 
            Criminal Procedure, are amended to read as follows: | 
         
         
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			 | 
                   (c)  If there is no prosecution or conviction for an offense  | 
         
         
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			 | 
            involving the weapon seized, the magistrate to whom the seizure was  | 
         
         
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			 | 
            reported shall, before the 61st day after the date the magistrate  | 
         
         
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			 | 
            determines that there will be no prosecution or conviction, notify  | 
         
         
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            in writing the person found in possession of the weapon that the  | 
         
         
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			 | 
            person is entitled to the weapon upon written request to the  | 
         
         
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			 | 
            magistrate. The magistrate shall order the weapon returned to the  | 
         
         
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			 | 
            person found in possession before the 61st day after the date the  | 
         
         
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            magistrate receives a request from the person. If the weapon is not  | 
         
         
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			 | 
            requested before the 61st day after the date of notification, the  | 
         
         
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			 | 
            magistrate shall, before the 121st day after the date of  | 
         
         
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			 | 
            notification, order the weapon destroyed, sold at public sale by  | 
         
         
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            the law enforcement agency holding the weapon or by an auctioneer  | 
         
         
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            [licensed under Chapter 1802, Occupations Code], or forfeited to  | 
         
         
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			 | 
            the state for use by the law enforcement agency holding the weapon  | 
         
         
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			 | 
            or by a county forensic laboratory designated by the magistrate. If  | 
         
         
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			 | 
            the magistrate does not order the return, destruction, sale, or  | 
         
         
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			 | 
            forfeiture of the weapon within the applicable period prescribed by  | 
         
         
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			 | 
            this subsection, the law enforcement agency holding the weapon may  | 
         
         
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            request an order of destruction, sale, or forfeiture of the weapon  | 
         
         
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			 | 
            from the magistrate. Only a firearms dealer licensed under 18  | 
         
         
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			 | 
            U.S.C. Section 923 may purchase a weapon at public sale under this  | 
         
         
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            subsection. Proceeds from the sale of a  seized weapon under this  | 
         
         
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            subsection shall be transferred, after the deduction of court costs  | 
         
         
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			 | 
            to which a district court clerk is entitled under Article 59.05(f),  | 
         
         
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			 | 
            followed by the deduction of auction costs, to the law enforcement  | 
         
         
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			 | 
            agency holding the weapon. | 
         
         
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                   (d)  A person either convicted or receiving deferred  | 
         
         
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			 | 
            adjudication under Chapter 46, Penal Code, is entitled to the  | 
         
         
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            weapon seized upon request to the court in which the person was  | 
         
         
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            convicted or placed on deferred adjudication. However, the court  | 
         
         
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            entering the judgment shall order the weapon destroyed, sold at  | 
         
         
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			 | 
            public sale by the law enforcement agency holding the weapon or by  | 
         
         
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			 | 
            an auctioneer [licensed under Chapter 1802, Occupations Code],  or  | 
         
         
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			 | 
            forfeited to the state for use by the law enforcement agency holding  | 
         
         
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			 | 
            the weapon or by a county forensic laboratory designated by the  | 
         
         
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			 | 
            court if: | 
         
         
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			 | 
                         (1)  the person does not request the weapon before the  | 
         
         
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            61st day after the date of the judgment of conviction or the order  | 
         
         
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			 | 
            placing the person on deferred adjudication; | 
         
         
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                         (2)  the person has been previously convicted under  | 
         
         
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			 | 
            Chapter 46, Penal Code; | 
         
         
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                         (3)  the weapon is one defined as a prohibited weapon  | 
         
         
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            under Chapter 46, Penal Code; | 
         
         
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                         (4)  the offense for which the person is convicted or  | 
         
         
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			 | 
            receives deferred adjudication was committed in or on the premises  | 
         
         
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			 | 
            of a playground, school, video arcade facility, or youth center, as  | 
         
         
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			 | 
            those terms are defined by Section 481.134, Health and Safety Code;  | 
         
         
            | 
                
			 | 
            or | 
         
         
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			 | 
                         (5)  the court determines based on the prior criminal  | 
         
         
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            history of the defendant or based on the circumstances surrounding  | 
         
         
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            the commission of the offense that possession of the seized weapon  | 
         
         
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			 | 
            would pose a threat to the community or one or more individuals. | 
         
         
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                   (e)  If the person found in possession of a weapon is  | 
         
         
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			 | 
            convicted of an offense involving the use of the weapon, before the  | 
         
         
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            61st day after the date of conviction the court entering judgment of  | 
         
         
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			 | 
            conviction shall order destruction of the weapon, sale at public  | 
         
         
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			 | 
            sale by the law enforcement agency holding the weapon or by an  | 
         
         
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			 | 
            auctioneer [licensed under Chapter 1802, Occupations Code],  or  | 
         
         
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			 | 
            forfeiture to the state for use by the law enforcement agency  | 
         
         
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			 | 
            holding the weapon or by a county forensic laboratory designated by  | 
         
         
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            the court. If the court entering judgment of conviction does not  | 
         
         
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			 | 
            order the destruction, sale, or forfeiture of the weapon within the  | 
         
         
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			 | 
            period prescribed by this subsection, the law enforcement agency  | 
         
         
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			 | 
            holding the weapon may request an order of destruction, sale, or  | 
         
         
            | 
                
			 | 
            forfeiture of the weapon from a magistrate. Only a firearms dealer  | 
         
         
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			 | 
            licensed under 18 U.S.C. Section 923 may purchase a weapon at public  | 
         
         
            | 
                
			 | 
            sale under this subsection. Proceeds from the sale of a seized  | 
         
         
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			 | 
            weapon under this subsection shall be transferred, after the  | 
         
         
            | 
                
			 | 
            deduction of court costs to which a district court clerk is entitled  | 
         
         
            | 
                
			 | 
            under Article 59.05(f), followed by the deduction of auction costs,  | 
         
         
            | 
                
			 | 
            to the law enforcement agency holding the weapon. | 
         
         
            | 
                
			 | 
                   SECTION 4.  Article 42A.511(a), Code of Criminal Procedure,  | 
         
         
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            is amended to read as follows: | 
         
         
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			 | 
                   (a)  If a judge grants community supervision to a defendant  | 
         
         
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			 | 
            convicted of an offense under Section 42.09, 42.091, 42.092, or  | 
         
         
            | 
                
			 | 
            42.10, Penal Code, the judge may require the defendant to[: | 
         
         
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			 | 
                         [(1)  complete an online responsible pet owner course  | 
         
         
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			 | 
            approved and certified by the Texas Department of Licensing and  | 
         
         
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			 | 
            Regulation; or | 
         
         
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                         [(2)]  attend a responsible pet owner course sponsored  | 
         
         
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			 | 
            by a municipal animal shelter, as defined by Section 823.001,  | 
         
         
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            Health and Safety Code, that: | 
         
         
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                         (1) [(A)]  receives federal, state, county, or  | 
         
         
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			 | 
            municipal funds; and | 
         
         
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                         (2) [(B)]  serves the county in which the court is  | 
         
         
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			 | 
            located. | 
         
         
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			 | 
                   SECTION 5.  Section 411.093(a), Government Code, is amended  | 
         
         
            | 
                
			 | 
            to read as follows: | 
         
         
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			 | 
                   (a)  The Texas Department of Licensing and Regulation is  | 
         
         
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			 | 
            entitled to obtain criminal history record information as provided  | 
         
         
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            by Subsection (b) that relates to: | 
         
         
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			 | 
                         (1)  an applicant for or the holder of: | 
         
         
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			 | 
                               (A)  a driver education instructor license under  | 
         
         
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			 | 
            Chapter 1001, Education Code; | 
         
         
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                               (B)  a license under Chapter 202, Occupations  | 
         
         
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			 | 
            Code; | 
         
         
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                               (C)  a license under Chapter 401, Occupations  | 
         
         
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            Code; | 
         
         
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                               (D)  a license under Chapter 402, Occupations  | 
         
         
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			 | 
            Code; or | 
         
         
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                               (E)  an instructor license or motorcycle school  | 
         
         
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            license under Chapter 662, Transportation Code; or | 
         
         
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                         (2)  [a person who is: | 
         
         
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                               [(A)  an applicant for or the holder of a license  | 
         
         
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            under Chapter 91, Labor Code; or | 
         
         
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                               [(B)  a controlling person, as defined by Chapter  | 
         
         
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            91, Labor Code, of an entity described by Paragraph (A); or | 
         
         
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                         [(3)]  a person who: | 
         
         
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                               (A)  is an applicant for or the holder of a license  | 
         
         
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			 | 
            under Chapter 455, Occupations Code; or | 
         
         
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                               (B)  has an interest described under Section  | 
         
         
            | 
                
			 | 
            455.1525(e), Occupations Code, in an entity described by Paragraph  | 
         
         
            | 
                
			 | 
            (A). | 
         
         
            | 
                
			 | 
                   SECTION 6.  Section 2165.456(g), Government Code, is amended  | 
         
         
            | 
                
			 | 
            to read as follows: | 
         
         
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			 | 
                   (g)  If a person may legally possess the weapon in this  | 
         
         
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			 | 
            state: | 
         
         
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			 | 
                         (1)  the forfeited weapon may be sold at public sale by  | 
         
         
            | 
                
			 | 
            an auctioneer [licensed under Chapter 1802, Occupations Code]; or | 
         
         
            | 
                
			 | 
                         (2)  the law enforcement agency holding the weapon may  | 
         
         
            | 
                
			 | 
            release the weapon to another person if: | 
         
         
            | 
                
			 | 
                               (A)  the person: | 
         
         
            | 
                
			 | 
                                     (i)  claims a right to or interest in the  | 
         
         
            | 
                
			 | 
            weapon and provides an affidavit confirming that the person wholly  | 
         
         
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			 | 
            or partly owns the weapon or otherwise has a right to or interest in  | 
         
         
            | 
                
			 | 
            the weapon; or | 
         
         
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			 | 
                                     (ii)  is an alternate person designated by  | 
         
         
            | 
                
			 | 
            the person under Section 2165.453(d) or 2165.454(c)(4); and | 
         
         
            | 
                
			 | 
                               (B)  for a weapon that is a firearm, the law  | 
         
         
            | 
                
			 | 
            enforcement agency conducts a check of state and national criminal  | 
         
         
            | 
                
			 | 
            history record information and verifies that the person may  | 
         
         
            | 
                
			 | 
            lawfully possess a firearm under 18 U.S.C. Section 922(g). | 
         
         
            | 
                
			 | 
                   SECTION 7.  Section 91.001(3), Labor Code, is amended to  | 
         
         
            | 
                
			 | 
            read as follows: | 
         
         
            | 
                
			 | 
                         (3)  "Client" means any person who enters into a  | 
         
         
            | 
                
			 | 
            professional employer services agreement with a professional  | 
         
         
            | 
                
			 | 
            employer organization [license holder]. | 
         
         
            | 
                
			 | 
                   SECTION 8.  Section 91.003, Labor Code, is amended to read as  | 
         
         
            | 
                
			 | 
            follows: | 
         
         
            | 
                
			 | 
                   Sec. 91.003.  INTERAGENCY COOPERATION.  (a) Each state  | 
         
         
            | 
                
			 | 
            agency that in performing duties under other law affects the  | 
         
         
            | 
                
			 | 
            regulation of professional employer 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  | 
         
         
            | 
                
			 | 
            division of workers' compensation of the Texas Department of  | 
         
         
            | 
                
			 | 
            Insurance, the Department of Assistive and Rehabilitative  | 
         
         
            | 
                
			 | 
            Services, and the attorney general's office shall assist in the  | 
         
         
            | 
                
			 | 
            implementation of this chapter [and shall provide information to  | 
         
         
            | 
                
			 | 
            the department on request]. | 
         
         
            | 
                
			 | 
                   SECTION 9.  Sections 91.004(a) and (c), Labor Code, are  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
                   (a)  This chapter does not exempt a client of a professional  | 
         
         
            | 
                
			 | 
            employer organization [license holder], or any covered employee,  | 
         
         
            | 
                
			 | 
            from any other license requirements imposed under local, state, or  | 
         
         
            | 
                
			 | 
            federal law. | 
         
         
            | 
                
			 | 
                   (c)  A professional employer organization [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  | 
         
         
            | 
                
			 | 
            professional employer services agreement with a client and covered  | 
         
         
            | 
                
			 | 
            employees. | 
         
         
            | 
                
			 | 
                   SECTION 10.  Section 91.005, Labor Code, is amended to read  | 
         
         
            | 
                
			 | 
            as follows: | 
         
         
            | 
                
			 | 
                   Sec. 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'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 has entered into a professional employer services agreement  | 
         
         
            | 
                
			 | 
            with [a license holder] or uses the services of a professional  | 
         
         
            | 
                
			 | 
            employer organization [license holder]. | 
         
         
            | 
                
			 | 
                   SECTION 11.  Section 91.006(a), Labor Code, is amended to  | 
         
         
            | 
                
			 | 
            read as follows: | 
         
         
            | 
                
			 | 
                   (a)  A certificate of insurance coverage or other evidence of  | 
         
         
            | 
                
			 | 
            coverage showing that either a professional employer organization | 
         
         
            | 
                
			 | 
            [license holder] or a client maintains workers' compensation  | 
         
         
            | 
                
			 | 
            insurance coverage constitutes proof of workers' compensation  | 
         
         
            | 
                
			 | 
            insurance coverage for the organization [license holder] and the  | 
         
         
            | 
                
			 | 
            client with respect to all covered employees of the organization | 
         
         
            | 
                
			 | 
            [license holder] and the client.  The state and a political  | 
         
         
            | 
                
			 | 
            subdivision of the state shall accept a certificate of insurance  | 
         
         
            | 
                
			 | 
            coverage or other evidence of coverage described by this section as  | 
         
         
            | 
                
			 | 
            proof of workers' compensation coverage under Chapter 406. | 
         
         
            | 
                
			 | 
                   SECTION 12.  Sections 91.031(a) and (b), Labor Code, are  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
                   (a)  A professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            shall establish the terms of a professional employer services  | 
         
         
            | 
                
			 | 
            agreement by a written contract between the organization [license  | 
         
         
            | 
                
			 | 
            holder] and the client. | 
         
         
            | 
                
			 | 
                   (b)  The professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            shall give written notice of the agreement as it affects covered  | 
         
         
            | 
                
			 | 
            employees to each covered employee. | 
         
         
            | 
                
			 | 
                   SECTION 13.  Section 91.032(a), Labor Code, is amended to  | 
         
         
            | 
                
			 | 
            read as follows: | 
         
         
            | 
                
			 | 
                   (a)  A professional employer services agreement between a  | 
         
         
            | 
                
			 | 
            professional employer organization [license holder] and a client  | 
         
         
            | 
                
			 | 
            must provide that the organization [license holder]: | 
         
         
            | 
                
			 | 
                         (1)  shares, as provided by Subsection (b), with the  | 
         
         
            | 
                
			 | 
            client the right of direction and control over covered employees; | 
         
         
            | 
                
			 | 
                         (2)  assumes responsibility for the payment of wages to  | 
         
         
            | 
                
			 | 
            the covered employees without regard to payments by the client to  | 
         
         
            | 
                
			 | 
            the organization [license holder]; | 
         
         
            | 
                
			 | 
                         (3)  assumes responsibility for the payment of payroll  | 
         
         
            | 
                
			 | 
            taxes and collection of taxes from payroll on covered employees; | 
         
         
            | 
                
			 | 
                         (4)  shares, as provided by Subsection (b), with the  | 
         
         
            | 
                
			 | 
            client the right to hire, fire, discipline, and reassign the  | 
         
         
            | 
                
			 | 
            covered employees; and | 
         
         
            | 
                
			 | 
                         (5)  shares, as provided by Subsection (b), with the  | 
         
         
            | 
                
			 | 
            client 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. | 
         
         
            | 
                
			 | 
                   SECTION 14.  The heading to Subchapter D, Chapter 91, Labor  | 
         
         
            | 
                
			 | 
            Code, is amended to read as follows: | 
         
         
            | 
                
			 | 
            SUBCHAPTER D.  POWERS AND DUTIES OF PROFESSIONAL EMPLOYER  | 
         
         
            | 
                
			 | 
            ORGANIZATION [LICENSE HOLDER] | 
         
         
            | 
                
			 | 
                   SECTION 15.  Section 91.041, Labor Code, is amended to read  | 
         
         
            | 
                
			 | 
            as follows: | 
         
         
            | 
                
			 | 
                   Sec. 91.041.  EMPLOYEE BENEFIT PLANS; REQUIRED DISCLOSURE;  | 
         
         
            | 
                
			 | 
            OTHER REPORTS.  (a)  A client and professional employer  | 
         
         
            | 
                
			 | 
            organization [license holder] are each considered an employer under  | 
         
         
            | 
                
			 | 
            the laws of this state for purposes of sponsoring retirement and  | 
         
         
            | 
                
			 | 
            welfare benefit plans for covered employees. | 
         
         
            | 
                
			 | 
                   (a-1)  A professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            may sponsor a single welfare benefit plan under which eligible  | 
         
         
            | 
                
			 | 
            covered employees of one or more clients may elect to participate. | 
         
         
            | 
                
			 | 
                   (a-2)  A fully insured welfare benefit plan offered to the  | 
         
         
            | 
                
			 | 
            covered employees of a professional employer organization [license  | 
         
         
            | 
                
			 | 
            holder] and provided by an insurance company authorized to provide  | 
         
         
            | 
                
			 | 
            that insurance in this state or a self-funded health benefit plan  | 
         
         
            | 
                
			 | 
            sponsored by a professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            as provided by Section 91.0411 shall be treated for purposes of  | 
         
         
            | 
                
			 | 
            state law as a single employer welfare benefit plan. | 
         
         
            | 
                
			 | 
                   (b)  With respect to any insurance or benefit plan provided  | 
         
         
            | 
                
			 | 
            by a professional employer organization [license holder] for the  | 
         
         
            | 
                
			 | 
            benefit of its assigned employees, the organization [a license  | 
         
         
            | 
                
			 | 
            holder] shall disclose the following information to [the  | 
         
         
            | 
                
			 | 
            department,] each client[,] and its covered 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.] | 
         
         
            | 
                
			 | 
                   SECTION 16.  Sections 91.0411(b), (c), (e), and (f), Labor  | 
         
         
            | 
                
			 | 
            Code, are amended to read as follows: | 
         
         
            | 
                
			 | 
                   (b)  A professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            may sponsor a benefit plan that is not fully insured if the  | 
         
         
            | 
                
			 | 
            organization [license holder] meets the requirements of this  | 
         
         
            | 
                
			 | 
            section and is approved to sponsor the plan by the commissioner. | 
         
         
            | 
                
			 | 
                   (c)  The commissioner may, on notice and opportunity for all  | 
         
         
            | 
                
			 | 
            interested persons to be heard, adopt rules and issue orders  | 
         
         
            | 
                
			 | 
            reasonably necessary to augment and implement the regulation of  | 
         
         
            | 
                
			 | 
            benefit plans sponsored by a professional employer organization | 
         
         
            | 
                
			 | 
            [license holder] that are not fully insured.  The commissioner may  | 
         
         
            | 
                
			 | 
            not adopt a rule that requires clients or covered employees to be  | 
         
         
            | 
                
			 | 
            members of an association or group in the same trade or industry in  | 
         
         
            | 
                
			 | 
            order to be covered by a [license holder-sponsored] benefit plan  | 
         
         
            | 
                
			 | 
            that is not fully insured.  The rules must include all requirements  | 
         
         
            | 
                
			 | 
            that must be met by the organization [license holder] and the plan,  | 
         
         
            | 
                
			 | 
            including: | 
         
         
            | 
                
			 | 
                         (1)  initial and final approval requirements; | 
         
         
            | 
                
			 | 
                         (2)  authority to prescribe forms and items to be  | 
         
         
            | 
                
			 | 
            submitted to the commissioner by the organization [license holder]; | 
         
         
            | 
                
			 | 
                         (3)  a fidelity bond; | 
         
         
            | 
                
			 | 
                         (4)  use of an independent actuary; | 
         
         
            | 
                
			 | 
                         (5)  use of a third-party administrator; | 
         
         
            | 
                
			 | 
                         (6)  authority for the commissioner to examine an  | 
         
         
            | 
                
			 | 
            application or a plan; | 
         
         
            | 
                
			 | 
                         (7)  the minimum number of clients and covered  | 
         
         
            | 
                
			 | 
            employees covered by the plan; | 
         
         
            | 
                
			 | 
                         (8)  standards for those natural persons managing the  | 
         
         
            | 
                
			 | 
            plan; | 
         
         
            | 
                
			 | 
                         (9)  the minimum amount of gross contributions; | 
         
         
            | 
                
			 | 
                         (10)  the minimum amount of written commitment, binder,  | 
         
         
            | 
                
			 | 
            or policy for stop-loss insurance; | 
         
         
            | 
                
			 | 
                         (11)  the minimum amount of reserves; and | 
         
         
            | 
                
			 | 
                         (12)  a fee in an amount reasonable and necessary to  | 
         
         
            | 
                
			 | 
            defray the costs of administering this section to be deposited to  | 
         
         
            | 
                
			 | 
            the credit of the operating fund of the Texas Department of  | 
         
         
            | 
                
			 | 
            Insurance. | 
         
         
            | 
                
			 | 
                   (e)  Each professional employer organization [license  | 
         
         
            | 
                
			 | 
            holder] under this section shall appoint the commissioner as its  | 
         
         
            | 
                
			 | 
            resident agent for purposes of service of process.  The fee for that  | 
         
         
            | 
                
			 | 
            service is $50, payable at the time of appointment. | 
         
         
            | 
                
			 | 
                   (f)  The commissioner may examine the affairs of any plan and  | 
         
         
            | 
                
			 | 
            shall have access to the records of the plan.  The commissioner may  | 
         
         
            | 
                
			 | 
            examine under oath a manager or employee of the professional  | 
         
         
            | 
                
			 | 
            employer organization [license holder] in connection with the plan. | 
         
         
            | 
                
			 | 
                   SECTION 17.  Sections 91.042(a), (a-1), (b), (c), (d), (e),  | 
         
         
            | 
                
			 | 
            (g), (h), and (i), Labor Code, are amended to read as follows: | 
         
         
            | 
                
			 | 
                   (a)  A professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            or client may elect to obtain workers' compensation insurance  | 
         
         
            | 
                
			 | 
            coverage for covered employees through an insurance company as  | 
         
         
            | 
                
			 | 
            defined under Section 401.011(28) or through self-insurance as  | 
         
         
            | 
                
			 | 
            provided under Chapter 407. | 
         
         
            | 
                
			 | 
                   (a-1)  The client and the professional employer organization  | 
         
         
            | 
                
			 | 
            shall specify in the professional employer services agreement  | 
         
         
            | 
                
			 | 
            whether the parties have elected to obtain workers' compensation  | 
         
         
            | 
                
			 | 
            insurance coverage for the covered employees and shall specify  | 
         
         
            | 
                
			 | 
            which party must maintain coverage.  If the organization [license  | 
         
         
            | 
                
			 | 
            holder] maintains workers' compensation insurance coverage for the  | 
         
         
            | 
                
			 | 
            client, an individual who is an executive employee, as described by  | 
         
         
            | 
                
			 | 
            Section 406.097, of the client is eligible to be treated as an  | 
         
         
            | 
                
			 | 
            executive employee for premium calculation and classification  | 
         
         
            | 
                
			 | 
            purposes.  A copy of the professional employer services agreement  | 
         
         
            | 
                
			 | 
            must be provided to the Texas Department of Insurance on request.   | 
         
         
            | 
                
			 | 
            Information obtained by the Texas Department of Insurance under  | 
         
         
            | 
                
			 | 
            this section is confidential and not subject to disclosure under  | 
         
         
            | 
                
			 | 
            Chapter 552, Government Code. | 
         
         
            | 
                
			 | 
                   (b)  If a professional employer organization [license  | 
         
         
            | 
                
			 | 
            holder] maintains workers' compensation insurance coverage for  | 
         
         
            | 
                
			 | 
            covered employees, the organization [license holder] shall pay  | 
         
         
            | 
                
			 | 
            workers' compensation insurance premiums for the covered employees  | 
         
         
            | 
                
			 | 
            based on the experience rating of the client for the first two years  | 
         
         
            | 
                
			 | 
            the covered employees are covered under the [professional employer]  | 
         
         
            | 
                
			 | 
            organization's policy and as further provided by rule by the Texas  | 
         
         
            | 
                
			 | 
            Department of Insurance. | 
         
         
            | 
                
			 | 
                   (c)  For workers' compensation insurance purposes, a  | 
         
         
            | 
                
			 | 
            professional employer organization [license holder] and the  | 
         
         
            | 
                
			 | 
            organization's [license holder's] client shall be coemployers.  If  | 
         
         
            | 
                
			 | 
            either a professional employer organization [license holder] or a  | 
         
         
            | 
                
			 | 
            client elects to obtain workers' compensation insurance coverage  | 
         
         
            | 
                
			 | 
            for covered employees, the client and the organization [license  | 
         
         
            | 
                
			 | 
            holder] are subject to Sections 406.005, 406.034, 408.001, and  | 
         
         
            | 
                
			 | 
            411.032. | 
         
         
            | 
                
			 | 
                   (d)  If a professional employer organization [license  | 
         
         
            | 
                
			 | 
            holder] or a client does not elect to obtain workers' compensation  | 
         
         
            | 
                
			 | 
            insurance coverage for covered employees, both the organization | 
         
         
            | 
                
			 | 
            [license holder] and the client are subject to Sections 406.004,  | 
         
         
            | 
                
			 | 
            406.005, 406.033, and 411.032. | 
         
         
            | 
                
			 | 
                   (e)  After the expiration of the two-year period under  | 
         
         
            | 
                
			 | 
            Subsection (b), if the client elects to obtain workers'  | 
         
         
            | 
                
			 | 
            compensation insurance coverage for covered employees through  | 
         
         
            | 
                
			 | 
            coverage maintained by the client, or if the professional employer  | 
         
         
            | 
                
			 | 
            services agreement is terminated and the client elects to maintain,  | 
         
         
            | 
                
			 | 
            through coverage maintained by the client or through coverage  | 
         
         
            | 
                
			 | 
            maintained by a successor professional employer organization,  | 
         
         
            | 
                
			 | 
            workers' compensation insurance coverage for employees previously  | 
         
         
            | 
                
			 | 
            covered by the former professional employer organization's policy,  | 
         
         
            | 
                
			 | 
            the premium for the workers' compensation insurance coverage for  | 
         
         
            | 
                
			 | 
            the client shall be based on the lower of: | 
         
         
            | 
                
			 | 
                         (1)  the experience modifier of the client before being  | 
         
         
            | 
                
			 | 
            covered under the professional employer organization's coverage;  | 
         
         
            | 
                
			 | 
            or | 
         
         
            | 
                
			 | 
                         (2)  the experience modifier of the former professional  | 
         
         
            | 
                
			 | 
            employer organization [license holder] at the time the client's  | 
         
         
            | 
                
			 | 
            coverage under the professional employer organization's coverage  | 
         
         
            | 
                
			 | 
            is terminated. | 
         
         
            | 
                
			 | 
                   (g)  On the written request of a client, a professional  | 
         
         
            | 
                
			 | 
            employer organization [license holder] that elects to provide  | 
         
         
            | 
                
			 | 
            workers' compensation insurance for covered employees shall  | 
         
         
            | 
                
			 | 
            provide to the client a list of: | 
         
         
            | 
                
			 | 
                         (1)  claims associated with that client made against  | 
         
         
            | 
                
			 | 
            the organization's [license holder's] workers' compensation policy;  | 
         
         
            | 
                
			 | 
            and | 
         
         
            | 
                
			 | 
                         (2)  payments made and reserves established on each  | 
         
         
            | 
                
			 | 
            claim. | 
         
         
            | 
                
			 | 
                   (h)  The professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            shall provide the information described by Subsection (g) in  | 
         
         
            | 
                
			 | 
            writing from the organization's [license holder's] own records, if  | 
         
         
            | 
                
			 | 
            the organization [license holder] is a qualified self-insurer, or  | 
         
         
            | 
                
			 | 
            from information the organization [license holder] received from  | 
         
         
            | 
                
			 | 
            the organization's [license holder's] workers' compensation  | 
         
         
            | 
                
			 | 
            insurance provider following the organization's [license holder's]  | 
         
         
            | 
                
			 | 
            request under Section 2051.151, Insurance Code, not later than the  | 
         
         
            | 
                
			 | 
            60th day after the date the organization [license holder] receives  | 
         
         
            | 
                
			 | 
            the client's written request. For purposes of this subsection,  | 
         
         
            | 
                
			 | 
            information is considered to be provided to the client on the date  | 
         
         
            | 
                
			 | 
            the information is: | 
         
         
            | 
                
			 | 
                         (1)  received by the United States Postal Service; or | 
         
         
            | 
                
			 | 
                         (2)  personally delivered to the client. | 
         
         
            | 
                
			 | 
                   (i)  A professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            that fails to comply with Subsection (g) or (h) commits a Class D  | 
         
         
            | 
                
			 | 
            administrative violation as provided by Section 415.011. | 
         
         
            | 
                
			 | 
                   SECTION 18.  Section 91.044, Labor Code, is amended to read  | 
         
         
            | 
                
			 | 
            as follows: | 
         
         
            | 
                
			 | 
                   Sec. 91.044.  UNEMPLOYMENT TAXES; PAYROLL. (a) A  | 
         
         
            | 
                
			 | 
            professional employer organization [license holder] is the  | 
         
         
            | 
                
			 | 
            employer of a covered employee for purposes of Subtitle A, Title 4,  | 
         
         
            | 
                
			 | 
            and, except for wages subject to Section 91.032(c), for purposes of  | 
         
         
            | 
                
			 | 
            Chapter 61. | 
         
         
            | 
                
			 | 
                   (a-1)  A professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            may, in a calendar year during which an employee becomes a covered  | 
         
         
            | 
                
			 | 
            employee of the organization [license holder], apply toward the  | 
         
         
            | 
                
			 | 
            maximum amount of taxable wages established in Section 201.082(1)  | 
         
         
            | 
                
			 | 
            any wages paid to the employee in that calendar year by: | 
         
         
            | 
                
			 | 
                         (1)  the client; or | 
         
         
            | 
                
			 | 
                         (2)  another professional employer organization | 
         
         
            | 
                
			 | 
            [license holder] under a prior professional employer services  | 
         
         
            | 
                
			 | 
            agreement with that client. | 
         
         
            | 
                
			 | 
                   (a-2)  In addition to any other reports required to be filed  | 
         
         
            | 
                
			 | 
            by law, a professional employer organization [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 according to the North American Industry  | 
         
         
            | 
                
			 | 
            Classification System of each client. | 
         
         
            | 
                
			 | 
                   (b)  For purposes of Subtitle A, Title 4, in the event of the  | 
         
         
            | 
                
			 | 
            termination of a contract between a professional employer  | 
         
         
            | 
                
			 | 
            organization [license holder] and a client or the failure by a  | 
         
         
            | 
                
			 | 
            professional employer organization to submit reports or make tax  | 
         
         
            | 
                
			 | 
            payments as required by that subtitle, the contracting client shall  | 
         
         
            | 
                
			 | 
            be treated as a new employer without a previous experience record  | 
         
         
            | 
                
			 | 
            unless that client is otherwise eligible for an experience rating. | 
         
         
            | 
                
			 | 
                   SECTION 19.  Section 91.046, Labor Code, is amended to read  | 
         
         
            | 
                
			 | 
            as follows: | 
         
         
            | 
                
			 | 
                   Sec. 91.046.  CONTRACTUAL DUTIES.  Each professional  | 
         
         
            | 
                
			 | 
            employer organization [license holder] is responsible for the  | 
         
         
            | 
                
			 | 
            organization's [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 professional employer services agreement for  | 
         
         
            | 
                
			 | 
            fulfilling the duties imposed under this section and Sections  | 
         
         
            | 
                
			 | 
            91.032 and[,] 91.047[, and 91.048]. | 
         
         
            | 
                
			 | 
                   SECTION 20.  Section 91.047, Labor Code, is amended to read  | 
         
         
            | 
                
			 | 
            as follows: | 
         
         
            | 
                
			 | 
                   Sec. 91.047.  COMPLIANCE WITH OTHER LAWS.  Each professional  | 
         
         
            | 
                
			 | 
            employer organization [license holder] shall comply with all  | 
         
         
            | 
                
			 | 
            appropriate state and federal laws relating to reporting,  | 
         
         
            | 
                
			 | 
            sponsoring, filing, and maintaining benefit and welfare plans. | 
         
         
            | 
                
			 | 
                   SECTION 21.  Section 91.049, Labor Code, is amended to read  | 
         
         
            | 
                
			 | 
            as follows: | 
         
         
            | 
                
			 | 
                   Sec. 91.049.  AGENT FOR SERVICE OF PROCESS.  Each  | 
         
         
            | 
                
			 | 
            professional employer organization [license holder] shall maintain  | 
         
         
            | 
                
			 | 
            a registered agent for the service of process in this state. | 
         
         
            | 
                
			 | 
                   SECTION 22.  The heading to Subchapter E, Chapter 91, Labor  | 
         
         
            | 
                
			 | 
            Code, is amended to read as follows: | 
         
         
            | 
                
			 | 
            SUBCHAPTER E. [PROHIBITED ACTS;] ENFORCEMENT | 
         
         
            | 
                
			 | 
                   SECTION 23.  Section 91.062(a), Labor Code, is amended to  | 
         
         
            | 
                
			 | 
            read as follows: | 
         
         
            | 
                
			 | 
                   (a)  A state agency with duties related to the regulation of  | 
         
         
            | 
                
			 | 
            professional employer services [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. | 
         
         
            | 
                
			 | 
                   SECTION 24.  Section 415.011, Labor Code, is amended to read  | 
         
         
            | 
                
			 | 
            as follows: | 
         
         
            | 
                
			 | 
                   Sec. 415.011.  NOTICE OF PROFESSIONAL EMPLOYER ORGANIZATION  | 
         
         
            | 
                
			 | 
            WORKERS' COMPENSATION CLAIM AND PAYMENT INFORMATION;  | 
         
         
            | 
                
			 | 
            ADMINISTRATIVE VIOLATION.  (a)  In this section, "professional  | 
         
         
            | 
                
			 | 
            employer organization" ["license holder"] has the meaning assigned  | 
         
         
            | 
                
			 | 
            by Section 91.001. | 
         
         
            | 
                
			 | 
                   (a-1)  Except as provided by Subsection (c), a professional  | 
         
         
            | 
                
			 | 
            employer organization [license holder] commits a violation if the  | 
         
         
            | 
                
			 | 
            organization [license holder] fails to provide the information  | 
         
         
            | 
                
			 | 
            required by Sections 91.042(g) and (h). | 
         
         
            | 
                
			 | 
                   (b)  A violation under Subsection (a-1) [(a)] is an  | 
         
         
            | 
                
			 | 
            administrative violation. | 
         
         
            | 
                
			 | 
                   (c)  A professional employer organization [license holder]  | 
         
         
            | 
                
			 | 
            does not commit an administrative violation under this section if  | 
         
         
            | 
                
			 | 
            the organization [license holder] requested the information  | 
         
         
            | 
                
			 | 
            required by Sections 91.042(g) and (h) from the organization's | 
         
         
            | 
                
			 | 
            [license holder's] workers' compensation insurance provider and the  | 
         
         
            | 
                
			 | 
            provider does not provide the information to the organization | 
         
         
            | 
                
			 | 
            [license holder] within the required time.  A professional employer  | 
         
         
            | 
                
			 | 
            organization [license holder] shall notify the Texas Department of  | 
         
         
            | 
                
			 | 
            Insurance of a provider's failure to comply with the requirements  | 
         
         
            | 
                
			 | 
            of Section 2051.151, Insurance Code. | 
         
         
            | 
                
			 | 
                   SECTION 25.  Section 252.022(a), Local Government Code, is  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
                   (a)  This chapter does not apply to an expenditure for: | 
         
         
            | 
                
			 | 
                         (1)  a procurement made because of a public calamity  | 
         
         
            | 
                
			 | 
            that requires the immediate appropriation of money to relieve the  | 
         
         
            | 
                
			 | 
            necessity of the municipality's residents or to preserve the  | 
         
         
            | 
                
			 | 
            property of the municipality; | 
         
         
            | 
                
			 | 
                         (2)  a procurement necessary to preserve or protect the  | 
         
         
            | 
                
			 | 
            public health or safety of the municipality's residents; | 
         
         
            | 
                
			 | 
                         (3)  a procurement necessary because of unforeseen  | 
         
         
            | 
                
			 | 
            damage to public machinery, equipment, or other property; | 
         
         
            | 
                
			 | 
                         (4)  a procurement for personal, professional, or  | 
         
         
            | 
                
			 | 
            planning services; | 
         
         
            | 
                
			 | 
                         (5)  a procurement for work that is performed and paid  | 
         
         
            | 
                
			 | 
            for by the day as the work progresses; | 
         
         
            | 
                
			 | 
                         (6)  a purchase of land or a right-of-way; | 
         
         
            | 
                
			 | 
                         (7)  a procurement of items that are available from  | 
         
         
            | 
                
			 | 
            only one source, including: | 
         
         
            | 
                
			 | 
                               (A)  items that are available from only one source  | 
         
         
            | 
                
			 | 
            because of patents, copyrights, secret processes, or natural  | 
         
         
            | 
                
			 | 
            monopolies; | 
         
         
            | 
                
			 | 
                               (B)  films, manuscripts, or books; | 
         
         
            | 
                
			 | 
                               (C)  gas, water, and other utility services; | 
         
         
            | 
                
			 | 
                               (D)  captive replacement parts or components for  | 
         
         
            | 
                
			 | 
            equipment; | 
         
         
            | 
                
			 | 
                               (E)  books, papers, and other library materials  | 
         
         
            | 
                
			 | 
            for a public library that are available only from the persons  | 
         
         
            | 
                
			 | 
            holding exclusive distribution rights to the materials; and | 
         
         
            | 
                
			 | 
                               (F)  management services provided by a nonprofit  | 
         
         
            | 
                
			 | 
            organization to a municipal museum, park, zoo, or other facility to  | 
         
         
            | 
                
			 | 
            which the organization has provided significant financial or other  | 
         
         
            | 
                
			 | 
            benefits; | 
         
         
            | 
                
			 | 
                         (8)  a purchase of rare books, papers, and other  | 
         
         
            | 
                
			 | 
            library materials for a public library; | 
         
         
            | 
                
			 | 
                         (9)  paving drainage, street widening, and other public  | 
         
         
            | 
                
			 | 
            improvements, or related matters, if at least one-third of the cost  | 
         
         
            | 
                
			 | 
            is to be paid by or through special assessments levied on property  | 
         
         
            | 
                
			 | 
            that will benefit from the improvements; | 
         
         
            | 
                
			 | 
                         (10)  a public improvement project, already in  | 
         
         
            | 
                
			 | 
            progress, authorized by the voters of the municipality, for which  | 
         
         
            | 
                
			 | 
            there is a deficiency of funds for completing the project in  | 
         
         
            | 
                
			 | 
            accordance with the plans and purposes authorized by the voters; | 
         
         
            | 
                
			 | 
                         (11)  a payment under a contract by which a developer  | 
         
         
            | 
                
			 | 
            participates in the construction of a public improvement as  | 
         
         
            | 
                
			 | 
            provided by Subchapter C, Chapter 212; | 
         
         
            | 
                
			 | 
                         (12)  personal property sold: | 
         
         
            | 
                
			 | 
                               (A)  at an auction [by a state licensed  | 
         
         
            | 
                
			 | 
            auctioneer]; | 
         
         
            | 
                
			 | 
                               (B)  at a going out of business sale held in  | 
         
         
            | 
                
			 | 
            compliance with Subchapter F, Chapter 17, Business & Commerce Code; | 
         
         
            | 
                
			 | 
                               (C)  by a political subdivision of this state, a  | 
         
         
            | 
                
			 | 
            state agency of this state, or an entity of the federal government;  | 
         
         
            | 
                
			 | 
            or | 
         
         
            | 
                
			 | 
                               (D)  under an interlocal contract for cooperative  | 
         
         
            | 
                
			 | 
            purchasing administered by a regional planning commission  | 
         
         
            | 
                
			 | 
            established under Chapter 391; | 
         
         
            | 
                
			 | 
                         (13)  services performed by blind or severely disabled  | 
         
         
            | 
                
			 | 
            persons; | 
         
         
            | 
                
			 | 
                         (14)  goods purchased by a municipality for subsequent  | 
         
         
            | 
                
			 | 
            retail sale by the municipality; | 
         
         
            | 
                
			 | 
                         (15)  electricity; or | 
         
         
            | 
                
			 | 
                         (16)  advertising, other than legal notices. | 
         
         
            | 
                
			 | 
                   SECTION 26.  Section 262.024(a), Local Government Code, is  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
                   (a)  A contract for the purchase of any of the following  | 
         
         
            | 
                
			 | 
            items is exempt from the requirement established by Section 262.023  | 
         
         
            | 
                
			 | 
            if the commissioners court by order grants the exemption: | 
         
         
            | 
                
			 | 
                         (1)  an item that must be purchased in a case of public  | 
         
         
            | 
                
			 | 
            calamity if it is necessary to make the purchase promptly to relieve  | 
         
         
            | 
                
			 | 
            the necessity of the citizens or to preserve the property of the  | 
         
         
            | 
                
			 | 
            county; | 
         
         
            | 
                
			 | 
                         (2)  an item necessary to preserve or protect the  | 
         
         
            | 
                
			 | 
            public health or safety of the residents of the county; | 
         
         
            | 
                
			 | 
                         (3)  an item necessary because of unforeseen damage to  | 
         
         
            | 
                
			 | 
            public property; | 
         
         
            | 
                
			 | 
                         (4)  a personal or professional service; | 
         
         
            | 
                
			 | 
                         (5)  any individual work performed and paid for by the  | 
         
         
            | 
                
			 | 
            day, as the work progresses, provided that no individual is  | 
         
         
            | 
                
			 | 
            compensated under this subsection for more than 20 working days in  | 
         
         
            | 
                
			 | 
            any three month period; | 
         
         
            | 
                
			 | 
                         (6)  any land or right-of-way; | 
         
         
            | 
                
			 | 
                         (7)  an item that can be obtained from only one source,  | 
         
         
            | 
                
			 | 
            including: | 
         
         
            | 
                
			 | 
                               (A)  items for which competition is precluded  | 
         
         
            | 
                
			 | 
            because of the existence of patents, copyrights, secret processes,  | 
         
         
            | 
                
			 | 
            or monopolies; | 
         
         
            | 
                
			 | 
                               (B)  films, manuscripts, or books; | 
         
         
            | 
                
			 | 
                               (C)  electric power, gas, water, and other utility  | 
         
         
            | 
                
			 | 
            services; and | 
         
         
            | 
                
			 | 
                               (D)  captive replacement parts or components for  | 
         
         
            | 
                
			 | 
            equipment; | 
         
         
            | 
                
			 | 
                         (8)  an item of food; | 
         
         
            | 
                
			 | 
                         (9)  personal property sold: | 
         
         
            | 
                
			 | 
                               (A)  at an auction [by a state licensed  | 
         
         
            | 
                
			 | 
            auctioneer]; | 
         
         
            | 
                
			 | 
                               (B)  at a going out of business sale held in  | 
         
         
            | 
                
			 | 
            compliance with Subchapter F, Chapter 17, Business & Commerce Code;  | 
         
         
            | 
                
			 | 
            or | 
         
         
            | 
                
			 | 
                               (C)  by a political subdivision of this state, a  | 
         
         
            | 
                
			 | 
            state agency of this state, or an entity of the federal government; | 
         
         
            | 
                
			 | 
                         (10)  any work performed under a contract for community  | 
         
         
            | 
                
			 | 
            and economic development made by a county under Section 381.004; or | 
         
         
            | 
                
			 | 
                         (11)  vehicle and equipment repairs. | 
         
         
            | 
                
			 | 
                   SECTION 27.  Section 263.153(c), Local Government Code, is  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
                   (c)  A county that contracts with an auctioneer [licensed  | 
         
         
            | 
                
			 | 
            under Chapter 1802, Occupations Code,] who uses an Internet auction  | 
         
         
            | 
                
			 | 
            site offering online bidding through the Internet to sell surplus  | 
         
         
            | 
                
			 | 
            or salvage property under this subchapter having an estimated value  | 
         
         
            | 
                
			 | 
            of not more than $500 shall satisfy the notice requirement under  | 
         
         
            | 
                
			 | 
            this section by posting the property on the site for at least 10  | 
         
         
            | 
                
			 | 
            days unless the property is sold before the 10th day. | 
         
         
            | 
                
			 | 
                   SECTION 28.  Section 365.006(g), Local Government Code, is  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
                   (g)  If a person may legally possess the weapon in this  | 
         
         
            | 
                
			 | 
            state: | 
         
         
            | 
                
			 | 
                         (1)  the forfeited weapon may be sold at public sale by  | 
         
         
            | 
                
			 | 
            an auctioneer [licensed under Chapter 1802, Occupations Code]; or | 
         
         
            | 
                
			 | 
                         (2)  the law enforcement agency holding the weapon may  | 
         
         
            | 
                
			 | 
            release the weapon to another person if: | 
         
         
            | 
                
			 | 
                               (A)  the person: | 
         
         
            | 
                
			 | 
                                     (i)  claims a right to or interest in the  | 
         
         
            | 
                
			 | 
            weapon and provides an affidavit confirming that the person wholly  | 
         
         
            | 
                
			 | 
            or partly owns the weapon or otherwise has a right to or interest in  | 
         
         
            | 
                
			 | 
            the weapon; or | 
         
         
            | 
                
			 | 
                                     (ii)  is an alternate person designated by  | 
         
         
            | 
                
			 | 
            the person under Section 365.003(d) or 365.004(c)(4); and | 
         
         
            | 
                
			 | 
                               (B)  for a weapon that is a firearm, the law  | 
         
         
            | 
                
			 | 
            enforcement agency conducts a check of state and national criminal  | 
         
         
            | 
                
			 | 
            history record information and verifies that the person may  | 
         
         
            | 
                
			 | 
            lawfully possess a firearm under 18 U.S.C. Section 922(g). | 
         
         
            | 
                
			 | 
                   SECTION 29.  Section 1101.005, Occupations Code, is amended  | 
         
         
            | 
                
			 | 
            to read as follows: | 
         
         
            | 
                
			 | 
                   Sec. 1101.005.  APPLICABILITY OF CHAPTER.  This chapter  | 
         
         
            | 
                
			 | 
            does not apply to: | 
         
         
            | 
                
			 | 
                         (1)  an attorney licensed in this state; | 
         
         
            | 
                
			 | 
                         (2)  an attorney-in-fact authorized under a power of  | 
         
         
            | 
                
			 | 
            attorney to conduct not more than three real estate transactions  | 
         
         
            | 
                
			 | 
            annually; | 
         
         
            | 
                
			 | 
                         (3)  a public official while engaged in official  | 
         
         
            | 
                
			 | 
            duties; | 
         
         
            | 
                
			 | 
                         (4)  an auctioneer [licensed under Chapter 1802] while  | 
         
         
            | 
                
			 | 
            conducting the sale of real estate by auction if the auctioneer does  | 
         
         
            | 
                
			 | 
            not perform another act of a broker; | 
         
         
            | 
                
			 | 
                         (5)  a person conducting a real estate transaction  | 
         
         
            | 
                
			 | 
            under a court order or the authority of a will or written trust  | 
         
         
            | 
                
			 | 
            instrument; | 
         
         
            | 
                
			 | 
                         (6)  a person employed by an owner in the sale of  | 
         
         
            | 
                
			 | 
            structures and land on which structures are located if the  | 
         
         
            | 
                
			 | 
            structures are erected by the owner in the course of the owner's  | 
         
         
            | 
                
			 | 
            business; | 
         
         
            | 
                
			 | 
                         (7)  an on-site manager of an apartment complex; | 
         
         
            | 
                
			 | 
                         (8)  an owner or the owner's employee who leases the  | 
         
         
            | 
                
			 | 
            owner's improved or unimproved real estate; or | 
         
         
            | 
                
			 | 
                         (9)  a transaction involving: | 
         
         
            | 
                
			 | 
                               (A)  the sale, lease, or transfer of a mineral or  | 
         
         
            | 
                
			 | 
            mining interest in real property; | 
         
         
            | 
                
			 | 
                               (B)  the sale, lease, or transfer of a cemetery  | 
         
         
            | 
                
			 | 
            lot; | 
         
         
            | 
                
			 | 
                               (C)  the lease or management of a hotel or motel;  | 
         
         
            | 
                
			 | 
            or | 
         
         
            | 
                
			 | 
                               (D)  the sale of real property under a power of  | 
         
         
            | 
                
			 | 
            sale conferred by a deed of trust or other contract lien. | 
         
         
            | 
                
			 | 
                   SECTION 30.  Section 1305.102(a), Occupations Code, is  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
                   (a)  The commission shall adopt rules for the licensing of  | 
         
         
            | 
                
			 | 
            electricians, sign electricians, electrical sign contractors,  | 
         
         
            | 
                
			 | 
            electrical contractors, [journeyman industrial electricians,  | 
         
         
            | 
                
			 | 
            journeyman linemen,] residential appliance installers, and  | 
         
         
            | 
                
			 | 
            residential appliance installation contractors as prescribed by  | 
         
         
            | 
                
			 | 
            this chapter. | 
         
         
            | 
                
			 | 
                   SECTION 31.  Sections 33.25(b), (f), and (g), Tax Code, are  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
                   (b)  The commissioners court of a county by official action  | 
         
         
            | 
                
			 | 
            may authorize a peace officer or the collector for the county  | 
         
         
            | 
                
			 | 
            charged with selling property under this subchapter by public  | 
         
         
            | 
                
			 | 
            auction to enter into an agreement with an auctioneer [a person who  | 
         
         
            | 
                
			 | 
            holds an auctioneer's license] to advertise the auction sale of the  | 
         
         
            | 
                
			 | 
            property and to conduct the auction sale of the property. The  | 
         
         
            | 
                
			 | 
            agreement may provide for on-line bidding and sale. | 
         
         
            | 
                
			 | 
                   (f)  The proceeds of a sale of property under this section  | 
         
         
            | 
                
			 | 
            shall be applied to: | 
         
         
            | 
                
			 | 
                         (1)  any compensation owed to or any expense advanced  | 
         
         
            | 
                
			 | 
            by the [licensed] auctioneer under an agreement entered into under  | 
         
         
            | 
                
			 | 
            Subsection (b) or a service provider under an agreement entered  | 
         
         
            | 
                
			 | 
            into under Subsection (c); | 
         
         
            | 
                
			 | 
                         (2)  all usual costs, expenses, and fees of the seizure  | 
         
         
            | 
                
			 | 
            and sale, payable to the peace officer conducting the sale; | 
         
         
            | 
                
			 | 
                         (3)  all additional expenses incurred in advertising  | 
         
         
            | 
                
			 | 
            the sale or in removing, storing, preserving, or safeguarding the  | 
         
         
            | 
                
			 | 
            seized property pending its sale; | 
         
         
            | 
                
			 | 
                         (4)  all usual court costs payable to the clerk of the  | 
         
         
            | 
                
			 | 
            court that issued the tax warrant; and | 
         
         
            | 
                
			 | 
                         (5)  taxes, penalties, interest, and attorney's fees  | 
         
         
            | 
                
			 | 
            included in the application for warrant. | 
         
         
            | 
                
			 | 
                   (g)  The peace officer or [licensed] auctioneer conducting  | 
         
         
            | 
                
			 | 
            the sale shall pay all proceeds from the sale to the collector  | 
         
         
            | 
                
			 | 
            designated in the tax warrant for distribution as required by  | 
         
         
            | 
                
			 | 
            Subsection (f). | 
         
         
            | 
                
			 | 
                   SECTION 32.  Section 151.3503(a), Tax Code, is amended to  | 
         
         
            | 
                
			 | 
            read as follows: | 
         
         
            | 
                
			 | 
                   (a)  The following are exempted from the taxes imposed by  | 
         
         
            | 
                
			 | 
            this chapter: | 
         
         
            | 
                
			 | 
                         (1)  a service performed by an employee for the  | 
         
         
            | 
                
			 | 
            employee's employer in the regular course of business, within the  | 
         
         
            | 
                
			 | 
            scope of the employee's duties, and for which the employee is paid  | 
         
         
            | 
                
			 | 
            regular wages or salary; | 
         
         
            | 
                
			 | 
                         (2)  a service performed by an employee of a temporary  | 
         
         
            | 
                
			 | 
            employment service for a host employer to supplement the host  | 
         
         
            | 
                
			 | 
            employer's existing work force on a temporary basis, if: | 
         
         
            | 
                
			 | 
                               (A)  the service is normally performed by the host  | 
         
         
            | 
                
			 | 
            employer's own employees; | 
         
         
            | 
                
			 | 
                               (B)  the host employer provides all supplies and  | 
         
         
            | 
                
			 | 
            equipment necessary to perform the service, other than personal  | 
         
         
            | 
                
			 | 
            protective equipment provided by the temporary employment service  | 
         
         
            | 
                
			 | 
            pursuant to a federal law or regulation; | 
         
         
            | 
                
			 | 
                               (C)  the host employer does not rent, lease,  | 
         
         
            | 
                
			 | 
            purchase, or otherwise acquire for use the supplies and equipment  | 
         
         
            | 
                
			 | 
            described by Paragraph (B), other than the personal protective  | 
         
         
            | 
                
			 | 
            equipment described by that paragraph, from the temporary  | 
         
         
            | 
                
			 | 
            employment service or an entity that is a member of an affiliated  | 
         
         
            | 
                
			 | 
            group of which the temporary employment service is also a member;  | 
         
         
            | 
                
			 | 
            and | 
         
         
            | 
                
			 | 
                               (D)  the host employer has the sole right to  | 
         
         
            | 
                
			 | 
            supervise, direct, and control the work performed by the employee  | 
         
         
            | 
                
			 | 
            of the temporary employment service as necessary to conduct the  | 
         
         
            | 
                
			 | 
            host employer's business or to comply with any licensing,  | 
         
         
            | 
                
			 | 
            statutory, or regulatory requirement applicable to the host  | 
         
         
            | 
                
			 | 
            employer; or | 
         
         
            | 
                
			 | 
                         (3)  a service performed by covered employees of a  | 
         
         
            | 
                
			 | 
            professional employer organization[, either licensed under Chapter  | 
         
         
            | 
                
			 | 
            91, Labor Code, or exempt from the licensing requirements of that  | 
         
         
            | 
                
			 | 
            chapter,] for a client under a written contract that provides for  | 
         
         
            | 
                
			 | 
            shared employment responsibilities between the professional  | 
         
         
            | 
                
			 | 
            employer organization and the client for the covered employees,  | 
         
         
            | 
                
			 | 
            most of whom must have been previously employed by the client. | 
         
         
            | 
                
			 | 
                   SECTION 33.  Section 151.3503(c), Tax Code, is amended by  | 
         
         
            | 
                
			 | 
            adding Subdivision (2-a) to read as follows: | 
         
         
            | 
                
			 | 
                         (2-a)  "Professional employer organization" has the  | 
         
         
            | 
                
			 | 
            meaning assigned by Section 91.001, Labor Code. | 
         
         
            | 
                
			 | 
                   SECTION 34.  Section 460.406(c), Transportation Code, is  | 
         
         
            | 
                
			 | 
            amended to read as follows: | 
         
         
            | 
                
			 | 
                   (c)  The board of directors may authorize the negotiation of  | 
         
         
            | 
                
			 | 
            a contract without competitive sealed bids or proposals if: | 
         
         
            | 
                
			 | 
                         (1)  the aggregate amount involved in the contract is  | 
         
         
            | 
                
			 | 
            less than the greater of: | 
         
         
            | 
                
			 | 
                               (A)  $50,000; or | 
         
         
            | 
                
			 | 
                               (B)  the amount of an expenditure under a contract  | 
         
         
            | 
                
			 | 
            that would require a municipality to comply with Section  | 
         
         
            | 
                
			 | 
            252.021(a), Local Government Code; | 
         
         
            | 
                
			 | 
                         (2)  the contract is for construction for which not  | 
         
         
            | 
                
			 | 
            more than one bid or proposal is received; | 
         
         
            | 
                
			 | 
                         (3)  the contract is for services or property for which  | 
         
         
            | 
                
			 | 
            there is only one source or for which it is otherwise impracticable  | 
         
         
            | 
                
			 | 
            to obtain competition, including: | 
         
         
            | 
                
			 | 
                               (A)  items that are available from only one source  | 
         
         
            | 
                
			 | 
            because of patents, copyrights, secret processes, or natural  | 
         
         
            | 
                
			 | 
            monopolies; | 
         
         
            | 
                
			 | 
                               (B)  gas, water, and other utility services; and | 
         
         
            | 
                
			 | 
                               (C)  captive replacement parts or components for  | 
         
         
            | 
                
			 | 
            equipment; | 
         
         
            | 
                
			 | 
                         (4)  the contract is to respond to an emergency for  | 
         
         
            | 
                
			 | 
            which the public exigency does not permit the delay incident to the  | 
         
         
            | 
                
			 | 
            competitive process; | 
         
         
            | 
                
			 | 
                         (5)  the contract is for personal, professional, or  | 
         
         
            | 
                
			 | 
            planning services; | 
         
         
            | 
                
			 | 
                         (6)  the contract, without regard to form and which may  | 
         
         
            | 
                
			 | 
            include bonds, notes, loan agreements, or other obligations, is for  | 
         
         
            | 
                
			 | 
            the purpose of borrowing money or is a part of a transaction  | 
         
         
            | 
                
			 | 
            relating to the borrowing of money, including: | 
         
         
            | 
                
			 | 
                               (A)  a credit support agreement, such as a line or  | 
         
         
            | 
                
			 | 
            letter of credit or other debt guaranty; | 
         
         
            | 
                
			 | 
                               (B)  a bond, note, debt sale or purchase, trustee,  | 
         
         
            | 
                
			 | 
            paying agent, remarketing agent, indexing agent, or similar  | 
         
         
            | 
                
			 | 
            agreement; | 
         
         
            | 
                
			 | 
                               (C)  an agreement with a securities dealer,  | 
         
         
            | 
                
			 | 
            broker, or underwriter; and | 
         
         
            | 
                
			 | 
                               (D)  any other contract or agreement considered by  | 
         
         
            | 
                
			 | 
            the board of directors to be appropriate or necessary in support of  | 
         
         
            | 
                
			 | 
            the authority's financing activities; | 
         
         
            | 
                
			 | 
                         (7)  the contract is for work that is performed and paid  | 
         
         
            | 
                
			 | 
            for by the day as the work progresses; | 
         
         
            | 
                
			 | 
                         (8)  the contract is for the lease or purchase of an  | 
         
         
            | 
                
			 | 
            interest in land; | 
         
         
            | 
                
			 | 
                         (9)  the contract is for the purchase of personal  | 
         
         
            | 
                
			 | 
            property sold: | 
         
         
            | 
                
			 | 
                               (A)  at an auction [by a state licensed  | 
         
         
            | 
                
			 | 
            auctioneer]; | 
         
         
            | 
                
			 | 
                               (B)  at a going out of business sale held in  | 
         
         
            | 
                
			 | 
            compliance with Subchapter F, Chapter 17, Business & Commerce Code;  | 
         
         
            | 
                
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            or | 
         
         
            | 
                
			 | 
                               (C)  by a political subdivision of this state, a  | 
         
         
            | 
                
			 | 
            state agency, or an entity of the federal government; | 
         
         
            | 
                
			 | 
                         (10)  the contract is for services performed by persons  | 
         
         
            | 
                
			 | 
            who are blind or have severe disabilities; | 
         
         
            | 
                
			 | 
                         (11)  the contract is for the purchase of electricity; | 
         
         
            | 
                
			 | 
                         (12)  the contract is one for an authority project and  | 
         
         
            | 
                
			 | 
            awarded for alternate project delivery using the procedures,  | 
         
         
            | 
                
			 | 
            requirements, and limitations under Subchapters E, F, G, H, and I,  | 
         
         
            | 
                
			 | 
            Chapter 2269, Government Code; or | 
         
         
            | 
                
			 | 
                         (13)  the contract is for fare enforcement officer  | 
         
         
            | 
                
			 | 
            services under Section 460.1092. | 
         
         
            | 
                
			 | 
                   SECTION 35.  Sections 503.024(b) and (d), Transportation  | 
         
         
            | 
                
			 | 
            Code, are amended to read as follows: | 
         
         
            | 
                
			 | 
                   (b)  For the purposes of Section 503.021, a person is not  | 
         
         
            | 
                
			 | 
            engaging in business as a dealer by: | 
         
         
            | 
                
			 | 
                         (1)  selling or offering to sell, if the sale or offer  | 
         
         
            | 
                
			 | 
            is not made to avoid a requirement of this chapter, a vehicle the  | 
         
         
            | 
                
			 | 
            person acquired for personal or business use to: | 
         
         
            | 
                
			 | 
                               (A)  a person other than a retail buyer if not sold  | 
         
         
            | 
                
			 | 
            or offered through an [a licensed] auctioneer; or | 
         
         
            | 
                
			 | 
                               (B)  any person if the sale or offer is made  | 
         
         
            | 
                
			 | 
            through an [a licensed] auctioneer; | 
         
         
            | 
                
			 | 
                         (2)  selling, in a manner provided by law for the forced  | 
         
         
            | 
                
			 | 
            sale of vehicles, a vehicle in which the person holds a security  | 
         
         
            | 
                
			 | 
            interest; | 
         
         
            | 
                
			 | 
                         (3)  acting under a court order as a receiver, trustee,  | 
         
         
            | 
                
			 | 
            administrator, executor, guardian, or other appointed person; | 
         
         
            | 
                
			 | 
                         (4)  selling a vehicle the person acquired from the  | 
         
         
            | 
                
			 | 
            vehicle's owner as a result of paying an insurance claim if the  | 
         
         
            | 
                
			 | 
            person is an insurance company; | 
         
         
            | 
                
			 | 
                         (5)  selling an antique passenger car or truck that is  | 
         
         
            | 
                
			 | 
            at least 25 years of age; or | 
         
         
            | 
                
			 | 
                         (6)  selling a special interest vehicle that is at  | 
         
         
            | 
                
			 | 
            least 12 years of age if the person is a collector. | 
         
         
            | 
                
			 | 
                   (d)  For the purposes of Section 503.021, an [a licensed]  | 
         
         
            | 
                
			 | 
            auctioneer is not engaging in business as a dealer by, as a bid  | 
         
         
            | 
                
			 | 
            caller, selling or offering to sell property, including a business  | 
         
         
            | 
                
			 | 
            that holds the title to any number of vehicles, to the highest  | 
         
         
            | 
                
			 | 
            bidder at a bona fide auction if: | 
         
         
            | 
                
			 | 
                         (1)  legal or equitable title does not pass to the  | 
         
         
            | 
                
			 | 
            auctioneer; | 
         
         
            | 
                
			 | 
                         (2)  the auction is not held to avoid a requirement of  | 
         
         
            | 
                
			 | 
            this chapter; and | 
         
         
            | 
                
			 | 
                         (3)  for an auction of vehicles owned legally or  | 
         
         
            | 
                
			 | 
            equitably by a person who holds a general distinguishing number,  | 
         
         
            | 
                
			 | 
            the auction is conducted at the location for which the general  | 
         
         
            | 
                
			 | 
            distinguishing number was issued. | 
         
         
            | 
                
			 | 
                   SECTION 36.  Article 42A.511, Code of Criminal Procedure, as  | 
         
         
            | 
                
			 | 
            amended by this Act, applies to a defendant placed on community  | 
         
         
            | 
                
			 | 
            supervision on or after the effective date of this Act, regardless  | 
         
         
            | 
                
			 | 
            of whether the offense for which the defendant was placed on  | 
         
         
            | 
                
			 | 
            community supervision was committed before, on, or after the  | 
         
         
            | 
                
			 | 
            effective date of this Act. | 
         
         
            | 
                
			 | 
                   SECTION 37.  On the effective date of this Act: | 
         
         
            | 
                
			 | 
                         (1)  the Auctioneer Advisory Board is abolished; and | 
         
         
            | 
                
			 | 
                         (2)  money in the auctioneer education and recovery  | 
         
         
            | 
                
			 | 
            fund is transferred to the general revenue fund. | 
         
         
            | 
                
			 | 
                   SECTION 38.  On the effective date of this Act, a pending  | 
         
         
            | 
                
			 | 
            regulatory action, including a complaint investigation,  | 
         
         
            | 
                
			 | 
            disciplinary action, or administrative penalty proceeding, of the  | 
         
         
            | 
                
			 | 
            Texas Department of Licensing and Regulation with respect to a  | 
         
         
            | 
                
			 | 
            license, permit, or certification issued under a law repealed by  | 
         
         
            | 
                
			 | 
            this Act, is terminated. | 
         
         
            | 
                
			 | 
                   SECTION 39.  On the effective date of this Act, a license,  | 
         
         
            | 
                
			 | 
            permit, or certification issued under a law repealed by this Act  | 
         
         
            | 
                
			 | 
            expires. | 
         
         
            | 
                
			 | 
                   SECTION 40.  This Act takes effect September 1, 2025. |