Last revision April 5th, 1999
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Administrative Rules of the
Texas Department of Licensing and Regulation
16 Texas Administrative Code, Chapter 72

Table of Contents

72.1. Authority
72.10. Definitions
72.20. Licensing Requirements - General
72.21. Licensing Requirements
72.22. License Certificate
72.60. Responsibility of Department - Background Check
72.70. Responsibility of Licensee - General
72.71. Responsibility of Licensee - Records
72.80. Fees - Licensing Application
72.81. Fees - Licensing
72.82. Fees - Background Check
72.83. Fees - Duplicate Licensing/Name Change
72.90. Sanctions - Administrative Sanctions/Penalties
72.91. Sanctions - Revocation, Suspension, or Denial Because of a Criminal Conviction

72.1. Authority.(Effective November 19, 1993, 18 TexReg 8197; Amended effective April 15, 1998, 23 TexReg 3678)

These rules are promulgated under the authority of the Texas Labor Code Annotated, Chapter 91 (Vernon 1997) and Texas Revised Civil Statutes Annotated, article 9100 (Vernon 1991).

72.10. Definitions. (Effective November 19, 1993, 18 TexReg 8197; Amended effective April 15, 1998, 23 TexReg 3678)

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

The Code - the Texas Labor Code Annotated, Chapter 91 (Vernon 1997).

Application - a fully completed application form, all information required by the application form, finger prints as required and all required fees.

Person - means any individual, partnership, corporation, or any other business entity.

72.20. Licensing Requirements. (Effective November 19, 1993, 18 TexReg 8197; Amended effective April 15, 1998, 23 TexReg 3678)

(a)Any person who performs or offers to perform staff leasing services as defined by the Act, after February 28, 1994 must first become licensed with the Texas Department of Licensing and Regulation.

(b) Any person who desires an original or renewal staff leasing services license shall obtain all necessary forms from the Texas Department of Licensing and Regulation.

(c) A person whose license has expired and who wishes to continue staff leasing services shall apply for a new license and pay all fees of a new license.

(d) To obtain a "Limited" license an applicant shall meet the requirements of Texas Labor Code Annotated, Chapter 91 (Vernon 1997).

(e) Falsification of a required document is grounds for denial and/or revocation of license.

(f) License application forms shall be fully executed and sworn to.

72.21. Licensing Requirements. (Effective November 19, 1993, 18 TexReg 8197; Repealed effective April 15, 1998, 23 TexReg 3679)

72.22. License Certificate. (Effective November 19, 1993, 18 TexReg 8197; Repealed effective April 15, 1998, 23 TexReg 3679)

72.60. Responsibility of Department - Background Check. (Effective November 19, 1993, 18 TexReg 8197; Repealed effective April 15, 1998, 23 TexReg 3679)

72.70. Responsibility of Licensee. (Effective November 19, 1993, 18 TexReg 8197; Amended effective April 15, 1998, 23 TexReg 3678)

(a) All licensees shall notify assigned employees and clients of the name, mailing address, and telephone number of the Department. The notice shall also contain a statement that unresolved complaints concerning a licensee or questions concerning the regulation of staff leasing services may be addressed to the Department.

(1) The notice required by Section 72.70(a) shall be made a part of all contractual agreements between licensees and clients. The notification shall appear in a typeface no smaller than the body of the contract and shall be printed in bold face, all capital letters or contrasting color of ink, so as to be set out from the surrounding written material in a conspicious manner.

(2) Each assigned employee of a licensee shall be provided the notice required by subsection (a). The notice shall be provided as a wallet size card or as a notice printed not less often than once every six months on a pay check stub or a separate piece of paper provided to the assigned employee.

(3) The licensee shall have each assigned employee sign a document indicating they received the required notification set forth in Section 72.70(a), which shall be kept on file for two years after employment is terminated. The signed notice may be included as part of a contract or other agreement with the assigned employee or may be a separate document.

(b) License applications and licensee information required on the application shall be updated within 45 days after any material change to any of the information provided on original or renewal applications.

72.71. Responsibility of Licensee - Records. (Effective November 19, 1993, 18 TexReg 8197; Amended effective April 15, 1998, 23 TexReg 3678)

(a) Upon notification, the licensee shall allow the commissioner or his designee to audit records required by the Code and any records required by these rules.

(b) All licensees shall maintain the following documents for two (2) years following the termination of a staff leasing services contract:

(1) Insurance coverage documents which may be required for filing with the Texas Department of Insurance, or insurance coverage documents which the licensee may be required to retain by the Texas Department of Insurance;

(2) All documents pertaining to insurance claims;

(3) Workers compensation coverage documents;

(4) All documents pertaining to Workers compensation claims;

(5) Staff Leasing Services contracts between the license holder and client companies;

(6) Employee tax records which may be required to be retained by or filed with the Texas Workforce Commission;

(7) Employee tax records which may be required to be retained by or filed with the Internal Revenue Service; and

(8) Employee tax records which may be required to be retained by or filed with the county or state.

(c) This section does not require a licensee to obtain documents that it would not otherwise obtain in the course of business and does not require a licensee to obtain documents from any other person or entity. This section requires licensees to maintain copies of documents actually received in the course of business or required to be maintained by the governmental entities listed in this section.

72.80. Fees - Licensing Application. (Effective November 19, 1993, 18 TexReg 8197; amended effective February 23, 1995, 20 TexReg 962; Amended effective April 15, 1998, 23 TexReg 3678)

(a) All application fees are non-refundable.

(b) The application/administrative fee shall be $300 per application.

(c) The renewal application/administration fee shall be $300 per application.

(d) The limited license application/administration fee shall be $300.

72.81. Fees - Licensing. (Effective November 19, 1993, 18 TexReg 8197; Amended effective April 15, 1998, 23 TexReg 3678)

(a) The two year license and two year renewal licensing fee shall be:

(1) $3,000 for 0 to 249 assigned employees;

(2) $4,000 for 250 to 750 assigned employees; and,

(3) $5,000 for more than 750 assigned employees.

(b) The limited staff leasing services license shall be $1,000.

72.82. Fees - Background Check. (Effective November 19, 1993, 18 TexReg 8197; amended effective February 23, 1995, 20 TexReg 962; Amended effective April 15, 1998, 23 TexReg 3678)

Non-refundable background check fees, when required, shall be $150 for each business/corporation and controllings person(s).

72.83. Fees - Duplicate Licensing/Name Change. (Effective November 19, 1993, 18 TexReg 8197; Amended effective April 15, 1998, 23 TexReg 3678)

The fee shall be $50 for issuing a duplicate license or for a license name change. If adding more than one trademark an additional $10 per trademark shall be required.

72.90. Sanctions - Administrative Sanctions/Penalties. (Effective November 19, 1993, 18 TexReg 8197; Amended effective April 15, 1998, 23 TexReg 3678)

If a person violates Texas Labor Code Annotated, Chapter 91 (Vernon 1997), or a rule, or order of the commissioner or commision relating to this Code and Chapter, proceedings may be instituted to impose administrative sanctions and/or recommend administrative penalties in accordance with this Code or Texas Revised Civil Statutes Annotated, article 9100 (Vernon 1991), and 16 Texas Administrative Code, Chapter 60 (1994) of this title (relating to the Texas Department of Licensing and Regulation).

72.91. Sanctions - Revocation, Suspension, or Denial Because of a Criminal Conviction. (Effective November 19, 1993, 18 TexReg 8197; Repealed effective April 15, 1998, 23 TexReg 3679)

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