By: Schwertner	S.B. No. 652
	(In the Senate - Filed February 19, 2015; February 24, 2015,
	read first time and referred to Committee on Natural Resources and
	Economic Development; March 11, 2015, reported favorably by the
	following vote:  Yeas 10, Nays 1; March 11, 2015, sent to printer.)
Click here to see the committee vote

	A BILL TO BE ENTITLED
	AN ACT
	relating to excluding a franchisor as an employer of a franchisee or
	a franchisee's employees.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter A, Chapter 21, Labor Code, is amended
	by adding Section 21.0022 to read as follows:
	Sec. 21.0022.  FRANCHISORS EXCLUDED. (a)  In this section,
	"franchisee" and "franchisor" have the meanings assigned by 16
	C.F.R. Section 436.1.
	(b)  For purposes of this chapter, a franchisor is not
	considered to be an employer of:
	(1)  a franchisee; or
	(2)  a franchisee's employees.
	SECTION 2.  Subchapter A, Chapter 61, Labor Code, is amended
	by adding Section 61.0031 to read as follows:
	Sec. 61.0031.  FRANCHISORS EXCLUDED. (a)  In this section,
	"franchisee" and "franchisor" have the meanings assigned by 16
	C.F.R. Section 436.1.
	(b)  For purposes of this chapter, a franchisor is not
	considered to be an employer of:
	(1)  a franchisee; or
	(2)  a franchisee's employees.
	SECTION 3.  Subchapter A, Chapter 62, Labor Code, is amended
	by adding Section 62.006 to read as follows:
	Sec. 62.006.  FRANCHISORS EXCLUDED. (a)  In this section,
	"franchisee" and "franchisor" have the meanings assigned by 16
	C.F.R. Section 436.1.
	(b)  For purposes of this chapter, a franchisor is not
	considered to be an employer of:
	(1)  a franchisee; or
	(2)  a franchisee's employees.
	SECTION 4.  Chapter 91, Labor Code, is amended by adding
	Section 91.0013 to read as follows:
	Sec. 91.0013.  FRANCHISORS EXCLUDED. (a)  In this section,
	"franchisee" and "franchisor" have the meanings assigned by 16
	C.F.R. Section 436.1.
	(b)  For purposes of this chapter, a franchisor is not
	considered to be in a coemployment relationship with:
	(1)  a franchisee; or
	(2)  a franchisee's employees.
	SECTION 5.  Section 201.021, Labor Code, is amended by
	adding Subsection (d) to read as follows:
	(d)  In this subsection, "franchisee" and "franchisor" have
	the meanings assigned by 16 C.F.R. Section 436.1. The definition of
	employer provided by this section does not apply to a franchisor
	with respect to:
	(1)  a franchisee; or
	(2)  a franchisee's employees.
	SECTION 6.  Subchapter B, Chapter 401, Labor Code, is
	amended by adding Section 401.014 to read as follows:
	Sec. 401.014.  FRANCHISORS EXCLUDED. (a)  In this section,
	"franchisee" and "franchisor" have the meanings assigned by 16
	C.F.R. Section 436.1.
	(b)  For purposes of this subtitle, a franchisor is not
	considered to be an employer of:
	(1)  a franchisee; or
	(2)  a franchisee's employees.
	SECTION 7.  Subchapter A, Chapter 411, Labor Code, is
	amended by adding Section 411.005 to read as follows:
	Sec. 411.005.  FRANCHISORS EXCLUDED. (a)  In this section,
	"franchisee" and "franchisor" have the meanings assigned by 16
	C.F.R. Section 436.1.
	(b)  For purposes of this chapter, a franchisor is not
	considered to be an employer of:
	(1)  a franchisee; or
	(2)  a franchisee's employees.
	SECTION 8.  The change in law made by this Act applies only
	to the liability of a franchisor based on conduct occurring on or
	after the effective date of this Act. Conduct by a franchisor
	occurring before the effective date of this Act is governed by the
	law in effect on the date the conduct occurred, and the former law
	is continued in effect for that purpose.
	SECTION 9.  This Act takes effect September 1, 2015.
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