(a) In this section, "leased employee" means a person who is not an employee of a participating subdivision within the meaning of Section 841.001(8), Government Code, or of a controlled entity within the meaning of Section 414(b), (c), (m), or (o) of the Internal Revenue Code of 1986 but who after December 31, 1996, performs services under the primary direction or control of a subdivision or controlled entity for a subdivision, controlled entity, or related persons within the meaning of Section 144(a)(3) of the Internal Revenue Code and under a written or oral agreement between the subdivision or controlled entity and a leasing organization, and the services are performed on a substantially full-time basis for at least one year.
(b) Notwithstanding any provision governing the retirement system to the contrary, a leased employee is not eligible to become a member of the retirement system.

Source Note: The provisions of this §107.13 adopted to be effective December 31, 2002, 27 TexReg 12371