Texas - applicant for a staff leasing license must demonstrate positive 'working capital'

At their meeting held July 19, 2010, the Texas Commission of Licensing and Regulationadopted new rulesat 16 Texas Administrative Code (“TAC”), Chapter 72, §§72.24, 72.25, and 72.100 regarding approved assurance organizations in the staff leasing services program. The rules are necessary to implement changes in law enacted by House Bill 2249 (“HB 2249”) which, among other provisions, authorized assurance organizations that are approved by the Commission to provide services to a staff leasing company during initial licensing and renewal and to provide ongoing compliance with the statute and rules.

The adoption will be published in the August 27, 2010, issue of theTexas Register. The adoption takes effect September 1, 2010.

TDLR encourages all persons interested in the staff leasing services program toreview the rule adoptionon TDLR's web site.

The Texas Department of Licensing and Regulation (Department) proposes amendments to existing rules at 16 Texas Administrative Code ("TAC"), Chapter 72, §§72.10, 72.20 - 72.23 and 72.40, regarding the Staff Leasing Services program.The proposed rules are necessary to implement the final phase of changes brought by House Bill 2249, 81st Legislature (2009).That bill contained several changes to Chapter 91, Texas Labor Code (the Code), some of which became effective in 2009.This final phase change mandates that effective December 31, 2011, an applicant for a staff leasing license must demonstrate positive 'working capital' to the Department, based on an audited financial statement.

The proposed amendments were published in the September 9, 2011, issue of the Texas Register (36 TexReg 5780). The Department will accept comments on the proposal until October 10, 2011.

TDLR encourages all persons interested in the Staff Leasing Services program to review the rule proposal.

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