Relating to the deregulation of certain activities and occupations.

The text as introduced · 6,979 words

89R1291 JDK-D

By: Harrison
H.B. No. 1817

A BILL TO BE ENTITLED

AN ACT

relating to the deregulation of certain activities and occupations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The following provisions are repealed:

(1) Title 9, Agriculture Code;

(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;

(4) Section 91.002, Labor Code;

(5) Section 91.008, Labor Code;

(6) Subchapter B, Chapter 91, Labor Code;

(7) Section 91.045, Labor Code;

(8) Section 91.048, Labor Code;

(9) Section 91.061, Labor Code;

(10) Chapter 802, Occupations Code;

(11) Sections 1305.002(11-b) and (12), Occupations

Code;

(12) Section 1305.1601, Occupations Code;

(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:

(1) "Auction company" means a person who engages in

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:

(c) If there is no prosecution or conviction for an offense

involving the weapon seized, the magistrate to whom the seizure was

reported shall, before the 61st day after the date the magistrate

determines that there will be no prosecution or conviction, notify

in writing the person found in possession of the weapon that the

person is entitled to the weapon upon written request to the

magistrate. The magistrate shall order the weapon returned to the

person found in possession before the 61st day after the date the

magistrate receives a request from the person. If the weapon is not

requested before the 61st day after the date of notification, the

magistrate shall, before the 121st day after the date of

notification, order the weapon destroyed, sold at public sale by

the law enforcement agency holding the weapon or by an auctioneer

[ licensed under Chapter 1802, Occupations Code ], or forfeited to

the state for use by the law enforcement agency holding the weapon

or by a county forensic laboratory designated by the magistrate. If

the magistrate does not order the return, destruction, sale, or

forfeiture of the weapon within the applicable period prescribed by

this subsection, the law enforcement agency holding the weapon may

request an order of destruction, sale, or forfeiture of the weapon

from the magistrate. Only a firearms dealer 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 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.

(d) A person either convicted or receiving deferred

adjudication under Chapter 46, Penal Code, is entitled to the

weapon seized upon request to the court in which the person was

convicted or placed on deferred adjudication. However, the court

entering the judgment shall order the weapon destroyed, sold at

public sale by the law enforcement agency holding the weapon or by

an auctioneer [ licensed under Chapter 1802, Occupations Code ], or

forfeited to the state for use by the law enforcement agency holding

the weapon or by a county forensic laboratory designated by the

court if:

(1) the person does not request the weapon before the

61st day after the date of the judgment of conviction or the order

placing the person on deferred adjudication;

(2) the person has been previously convicted under

Chapter 46, Penal Code;

(3) the weapon is one defined as a prohibited weapon

under Chapter 46, Penal Code;

(4) the offense for which the person is convicted or

receives deferred adjudication was committed in or on the premises

of a playground, school, video arcade facility, or youth center, as

those terms are defined by Section 481.134, Health and Safety Code;

or

(5) the court determines based on the prior criminal

history of the defendant or based on the circumstances surrounding

the commission of the offense that possession of the seized weapon

would pose a threat to the community or one or more individuals.

(e) If the person found in possession of a weapon is

convicted of an offense involving the use of the weapon, before the

61st day after the date of conviction the court entering judgment of

conviction shall order destruction of the weapon, sale at public

sale by the law enforcement agency holding the weapon or by an

auctioneer [ licensed under Chapter 1802, Occupations Code ], or

forfeiture to the state for use by the law enforcement agency

holding the weapon or by a county forensic laboratory designated by

the court. If the court entering judgment of conviction does not

order the destruction, sale, or forfeiture of the weapon within the

period prescribed by this subsection, the law enforcement agency

holding the weapon may request an order of destruction, sale, or

forfeiture of the weapon from a magistrate. Only a firearms dealer

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

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,

is amended to read as follows:

(a) If a judge grants community supervision to a defendant

convicted of an offense under Section 42.09, 42.091, 42.092, or

42.10, Penal Code, the judge may require the defendant to[ :

[ (1) complete an online responsible pet owner course

approved and certified by the Texas Department of Licensing and

Regulation; or

[ (2) ] attend a responsible pet owner course sponsored

by a municipal animal shelter, as defined by Section 823.001,

Health and Safety Code, that:

(1) [ (A) ] receives federal, state, county, or

municipal funds; and

(2) [ (B) ] serves the county in which the court is

located.

SECTION 5. Section 411.093(a), Government Code, is amended

to read as follows:

(a) The Texas Department of Licensing and Regulation is

entitled to obtain criminal history record information as provided

by Subsection (b) that relates to:

(1) an applicant for or the holder of:

(A) a driver education instructor license under

Chapter 1001, Education Code;

(B) a license under Chapter 202, Occupations

Code;

(C) a license under Chapter 401, Occupations

Code;

(D) a license under Chapter 402, Occupations

Code; or

(E) an instructor license or motorcycle school

license under Chapter 662, Transportation Code; or

(2) [ a person who is:

[ (A) an applicant for or the holder of a license

under Chapter 91, Labor Code; or

[ (B) a controlling person, as defined by Chapter

91, Labor Code, of an entity described by Paragraph (A); or

[ (3) ] a person who:

(A) is an applicant for or the holder of a license

under Chapter 455, Occupations Code; or

(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:

(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 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;

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.