Personnel Employment Services

Until now, providers of personnel employment services have been required by law to obtain certificates of authority from the Texas Department of Licensing and Regulation (TDLR).

With recent enactment of legislation (S.B. 1168 and H.B.3167) by the 82nd Texas Legislature, providers of personnel employment services are no longer required to be certified by the State of Texas.

This means that (1) those providers who obtained certificates, or renewals, during Fiscal Year 2011 (or since September 1, 2010) will be receiving a refund of fees paid to the Department for those certificates, and (2) the financial security (bond, letter of credit, etc.) those providers were required to maintain to remain certified is no longer required.

Providers are advised that financial security documents previously filed with TDLR will not be returned to them because of state record-retention requirements.

Personnel Employment Services
16 TAC Chapter 63, §§63.1, 63.10, 63.20, 63.21, 63.40, 63.70, 63.80-63.82, and 63.90

(effective September 15, 2011)

The Texas Commission of Licensing and Regulation (Commission) adopts the repeal of 16 Texas Administrative Code (TAC) Chapter 63, §§63.1, 63.10, 63.20, 63.21, 63.40, 63.70, 63.80-63.82, and 63.90 regarding the Personnel Employment Services program. The adoption takes effect September 15, 2011.

Senate Bill (SB) 1168 and House Bill (HB) 3167, 82nd Legislature, Regular Session, (2011), each repealed the Department’s regulatory authority from Texas Occupations Code, Chapter 2501 relating to Personnel Employment Service (PES) providers effective May 20, 2011 and September 1, 2011, respectively. Due to the low number of complaints and limited authority to take disciplinary action under the statute, the regulatory burden outweighed the benefit to the public of having this occupation regulated by the Texas Department of Licensing and Regulation (Department).

Chapter 2501 continues to provide for civil and criminal causes of action for aggrieved persons. The repeal of the sections of Chapter 2501, Texas Occupations Code relating to the Department’s ability to regulate personnel employment service providers requires the repeal of the rules that implement this statute and the PES program. This rule adoption repeals all Commission rules relating to this program under 16 TAC, Chapter 63.

The Department drafted and distributed the proposed repeal to persons internal and external to the agency. The proposed repeal was published in the July 15, 2011, issue of the Texas Register. The 30-day public comment period closed on August 15, 2011. The Department did not receive any public comments on the proposed repeal.

The repeal is adopted under SB 1168 and HB 3167, 82nd Legislature, Regular Session (2011), which repealed the sections of Texas Occupations Code, Chapter 2501, which authorized the Department to regulate Personnel Employment Services providers; and Texas Occupations Code, Chapter 51, which authorizes the Commission, the Department’s governing body, to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51 and 2501. No other statutes, articles, or codes are affected by the adopted repeal.

§63.1. Authority
§63.10. Definitions.
§63.20. Certificate of Authority Requirements.
§63.21. Certificate of Authority Application Process.
§63.40. Security Requirements.
§63.70. Responsibilities of the Certificate Holder--General.
§63.80. Fees--Original Certificate of Authority.
§63.81. Fees--Renewal Certificate of Authority.
§63.82. Fees--Duplicate Certificate of Authority.
§63.90. Administrative Penalties and Sanctions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be within the agency’s legal authority to adopt.

Filed with the Office of the Secretary of State on August 26, 2011.

William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation


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