Table of Contents
64.1 Authority
64.10 Definitions
64.20 Licensing Requirements General
64.60 Powers and Duties of the Department and Commissioner
64.70 Rights and Duties of a License Holder
64.71 Other Duties of License Holder
64.72 Additional Provisions for Labor Halls
64.80 Fees - License
64.90 Sanctions
64.91 Sanctions - Denial, Revocation or Suspension Because of Criminal
Conviction
64.1 Authority.
(a) The sections in this Chapter are promulgated under the Employers of Certain
Temporary Common Workers Act (Texas Civil Statutes, Article 5221a-10) and the Texas
Department of Licensing and Regulation Act ( Texas
Civil Statutes, Article 9100).
(b) Regulatory, administrative, and licensing activities under this Act shall be
carried out by the department and commissioner under Texas
Civil Statutes, Article 9100.
64.10 Definitions.
The following words and terms, when used in this chapter, shall have the following
meanings, unless the context clearly indicates otherwise.
Consumer - A common worker and/or a third party user as defined in the Act.
Registered agent - The individual or entity, designated by the temporary common
worker employer to which all departmental communications or correspondence will be
addressed.
Temporary Common Worker Employer - A person that provides common worker
employees to a third party user and includes both a temporary common worker agent and a
temporary common worker agency.
64.20 Licensing Requirements General.
(a) Each person desiring a state of Texas temporary common worker employer license
shall request an application from the department. A separate application and fee must be
submitted for each place of business or labor hall operated in the state.
(b) All applications shall be submitted on the form approved by the commissioner and
provided by the department.
(c) The application for a license must:
(1) state the name, address, and telephone number of the applicant, including the trade
name by which the applicant does business; the names, addresses, and telephone numbers of
all partners or corporate officers and the street address and telephone number of the
place of business or labor hall to be operated by the license holder;
(2) state the name, address, and telephone number of the registered agent for the place
of business or labor hall, including the office or position held by that person with the
labor hall;
(3) contain a certification that the applicant has met fire and health standards
established by state or federal law, or municipal ordinance for the labor hall location;
(4) certify that the applicant, if an individual, is 18 years of age or older; and
(5) include a certificate of insurance showing coverage as required in section 64.71(c) of this title (relating to Other Duties of License
Holder).
64.60 Powers and Duties of the Department and Commissioner.
(a) All temporary common worker employers holding licenses shall be notified by the
department, in writing, of the pending expiration of their license not later than the 30th
day before the date on which the license expires.
(b) The department shall issue a license to an applicant who meets the application
requirements and pays the fee as required in section 64.80 of this title (Fees - License).
(c) The commissioner shall enforce this Act pursuant to Texas Civil Statutes, Article
5221a-10 and Article 9100.
64.70 Rights and Duties of a License Holder.
(a) A license holder must display the license in a conspicuous place in each place of
business or labor hall operated by the license holder in the state.
(b) Each temporary common worker employer must notify the department, in writing, of
any changes in information regarding location or ownership. The notification must be
received by the department no later than 30 days after the change occurs.
(c) Each temporary common worker employer shall provide employees and consumers with
access to the name, mailing address, and telephone number of the department for the
purpose of directing complaints to the department.
(d) The license holder must allow department representatives, as part of an inspection
or investigation, to enter the business premises during regular business hours and examine
and copy any records that relate directly or indirectly to the inspection or investigation
being conducted. The department representatives may inspect all records, books, and
documents, whether paper or electronic, pertaining to the business operation. All
information collected is privileged and confidential for the exclusive use of the
department for the administration of the Act.
(e) Each license holder must respond within two working days from its receipt of a
written complaint from a consumer, and must attempt to resolve the complaint not later
than the 10th day after the date of receipt. If the license holder is unable to resolve
the complaint within the specified 10 days, the complaint shall be referred to the
department.
64.71 Other Duties of License Holder.
(a) A license holder shall promptly pay or distribute to the proper individuals all
money or other things of value entrusted to the license holder by a third person for such
purpose.
(b) A license holder shall comply with the terms and provisions of contracts entered
into between the license holder and common workers and third party users.
(c) A license holder shall maintain a policy of insurance with
an insurance carrier authorized to do business in the State of Texas in the amount of at
least $100,000/$300,000, which insures the license holder against liability for damage to
persons or property arising out of the license holder's operation, or ownership of any
motor vehicle for the transportation of individuals in connection with their business,
activities or operations as a temporary common worker employer. A certificate of the
required insurance shall be filed with the department.
(d) All vehicles used for hire by a license holder for the transportation of
individuals in his operations as a labor hall shall:
(1) have displayed prominently at the passenger entrance of the vehicle the name of the
temporary common worker employer and the number of their license issued by the department;
(2) be equipped with one 10 pound BC fire extinguisher or two 5 pound BC fire
extinguishers; and
(3) comply with all Texas vehicle inspection and safety regulations for the
transportation of passengers for hire as defined by Texas Railroad Commission regulations.
(e) Each license holder shall, semimonthly or at the time of each payment of wages,
furnish each client/worker employed by the labor hall either a detachable part of the
check, draft, or voucher paying the employee's wages, or separately, an itemized statement
in writing showing in detail each and every deduction made from the wages.
64.72 Additional Provisions for Labor Halls.
(a) An attendant must be on the labor hall premises as an agent for legal process for
the temporary common worker employer at all times that common workers are on the premises
during normal business hours. In addition to service on the registered agent, any process
involving a license holder shall be served, in person or by registered mail, on the
license holder.
(b) The labor hall premises must have a lobby or waiting room with a floor area not
less than 450 square feet. The lobby or waiting room must have adequate heat and
ventilation.
(c) A labor hall may allow the pick up or drop off of workers only in a safe location.
(d) The sale of alcoholic beverages on the premises of a labor hall is prohibited.
(e) Prostitution, gambling, intoxication, illegal drug dealing or illegal drug use on
the premises of a labor hall is prohibited.
(f) Knowingly furnishing any person for immoral or illegal purposes, or causing to be
sent any person to enter as a servant, inmate or for any purpose whatsoever, to any place
of bad repute, house of ill fame, or assignation house, or any house or place of
amusementkept for illegal or immoral purposes, the character of which the license holder
could have ascertained by reasonable diligence, is prohibited.
(g) Knowingly sending a common worker to a place where a strike or lockout exists
without first informing the common worker with a written statement of the existence of the
strike or lockout is prohibited.
(h) Knowingly furnishing employment to a child, as defined by federal and state
statute, in violation of statutes regulating the employment of children or the compulsory
attendance at school is prohibited.
(i) A license holder shall comply with the provisions of all applicable Federal, State
and local statutes, ordinances, regulations or codes, including but not limited to Texas
Department of Health Rules on Food Service Sanitation; mechanical, building, electrical,
fire prevention and life safety codes.
(j) A license holder that violates a prohibition, statute, ordinance or code set forth
above may have its license suspended or revoked under section 64.90 of this title
(relating to Sanctions).
64.80 Fees - License. (Amended effective October 1, 1995, 20
TexReg 7278; amended effective February 25, 1999, 23 TexReg 13058)
(a) The fee for the initial license is $550.
(b) The fee for a renewal license is $550.
(c) These fees are not refundable.
64.90 Sanctions.
(a) Any person may file a complaint with the commissioner alleging a violation of the
Act or these rules. The commissioner shall investigate the alleged violation upon receipt
of the complaint and may investigate any common worker employer as necessary.
(b) If it appears that a person is in violation of the Act or a rule or an order of the
commissioner related to the Act, the commissioner may institute action under Texas Civil Statutes, Article 9100 by:
(1) giving notice to the license holder of the violation(s) by issuing a Preliminary
Report; and
(2) providing a statement of the right of the person charged to a hearing on the
occurrence of the violation and any proposed sanction and the terms thereof;
(3) not later than the 20th day after the date on which the notice is received, the
person charged may accept the determination of the commissioner made under this rule,
including the recommended sanction and all accompanying conditions, or make a written
request for a hearing on that determination;
(4) if the person charged with the violation accepts the determination of the
commissioner, the commission shall issue an order approving the determination and ordering
that the recommended sanction and accompanying conditions be imposed upon that person;
(5) if the person charged fails to respond in a timely manner to the notice or if the
person requests a hearing, the commissioner shall set a hearing, give written notice of
the hearing to the person, and designate a hearings examiner to conduct the hearing;
(6) if an administrative hearing is held and the person wishes to dispute the
administrative sanction imposed, not later than the 30th day after the date on which the
decision is final, as provided by the Administrative Procedure and Texas Register Act,
Texas Civil Statutes, Article 6252-13a, Section 16(c), the person charged shall file a
petition for judicial review contesting the fact of the violation and/or the
administrative sanction. Judicial review is subject to the substantial evidence rule and
shall be instituted by filing a petition with a Travis County district court as provided
by the Administrative Procedure and Texas Register Act, Texas Civil Statutes, Article
6252-13a, Section 19; and
(7) a motion for rehearing is a prerequisite for an appeal.
(c) The commissioner may institute an action with the Attorney General for collection
of any assessed administrative penalty not received by the department.
(d) If it appears that a person is in violation of, or is threatening to violate, the
Act or a rule or order of the commissioner related to the Act, the commissioner may
request from the Attorney General an action for injunctive relief to restrain the person
from continuing the violation.
64.91 Sanctions - Denial, Revocation or Suspension Because of
Criminal Conviction.
(a) Pursuant to Texas Civil Statutes, Article 6252.13c, the commissioner, after a
hearing, may deny a license, or suspend or revoke an existing license, because that person
has a felony or misdemeanor conviction that directly relates to the duties and
responsibilities involved in operating as a common worker employer and/or temporary common
worker agency. The department may also, after hearing, suspend, revoke or deny a license
because of a person's felony probation revocation, parole revocation or revocation of
mandatory supervision.
(b) In determining whether a criminal conviction directly relates to the operation as a
temporary common worker employer and/or temporary common worker agency, the commissioner
shall consider:
(1) the nature and seriousness of the crime;
(2) the relationship of the crime to the ability, capacity, or fitness to perform the
duties as a temporary common worker employer;
(3) the extent to which a license might offer an opportunity to engage in further
criminal activity of the same type as that in which the person was previously involved.
(c) In determining the present fitness of a person who has been convicted of a crime,
the commissioner shall also consider:
(1) the extent and nature of the person's past criminal activity;
(2) the age of the person at the time of the commission of the crime;
(3) the amount of time that has elapsed since the person's last criminal activity;
(4) the conduct and work activity of the person prior to and following the criminal
activity;
(5) evidence of the person's rehabilitation or rehabilitative effort while incarcerated
or following release; and
(6) other evidence of the persons' present fitness, including letters of recommendation
from prosecution, law enforcement, and correctional officers who prosecuted, arrested, or
had custodial responsibility for the person; the sheriff and chief of police in the
community where the person resides; and any other persons in contact with the convicted
person.
(d) It shall be the responsibility of the license holder or applicant, to the extent
possible, to secure and provide the department the recommendations of the prosecution, law
enforcement and correctional authorities as required.
(e) Proof shall be furnished in such form as may be required by the department, that he
or she has maintained a record of steady employment, has supported his or her dependents
per court order, has otherwise maintained a record of good conduct, and has paid all
outstanding court costs, supervision fees, fines and restitution as may have been ordered
in all criminal cases in which he or she has been convicted.
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