By Crabb                                              H.B. No. 2193
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to claims for unemployment compensation benefits and to
    1-3  the wage credits used to compute eligibility for those benefits.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Sections 3(b), (d), and (e), Texas Unemployment
    1-6  Compensation Act (Article 5221b-1, Vernon's Texas Civil Statutes),
    1-7  are amended to read as follows:
    1-8        (b)  Benefit Amount for Total Unemployment:  Each eligible
    1-9  individual who is totally unemployed in any benefit period shall be
   1-10  paid with respect to such benefit period, benefits at the rate of
   1-11  one twenty-fifth (1/25) of his eligible benefit wage credits
   1-12  <wages> received from employment by employers during that quarter
   1-13  in his base period in which wages were highest, provided that:
   1-14              (1)  If such rate is not an even multiple of One Dollar
   1-15  ($1), it shall be adjusted to the next higher multiple of One
   1-16  Dollar ($1); and
   1-17              (2)  Such rate shall not be more than Eighty-four
   1-18  Dollars ($84) per benefit period nor less than Fifteen Dollars
   1-19  ($15) per benefit period on valid initial claims filed on or after
   1-20  October 1, 1977; provided that if the annual average of the
   1-21  manufacturing production workers average weekly wage in Texas
   1-22  exceeds by Ten Dollars ($10) the average weekly wage for those
   1-23  workers in 1976 as determined by the Texas Employment Commission
    2-1  and published in its report, "The Average Weekly Wage," the maximum
    2-2  weekly benefit amount shall be increased by Seven Dollars ($7) and
    2-3  the minimum weekly benefit amount shall be increased by One Dollar
    2-4  ($1) above the maximum and minimum amounts established herein, the
    2-5  increases to become effective on valid initial claims filed on or
    2-6  after October 1 following publication of "The Average Weekly Wage"
    2-7  report.  Thereafter, each cumulative (additional) Ten Dollar ($10)
    2-8  increase in the average weekly wage for manufacturing production
    2-9  workers in Texas, as annually determined and reported by the Texas
   2-10  Employment Commission, shall cumulatively increase the maximum
   2-11  weekly benefit amount by an additional Seven Dollars ($7) and the
   2-12  minimum weekly benefit amount by an additional One Dollar ($1)
   2-13  beginning with the next October 1 following publication of "The
   2-14  Average Weekly Wage" report.  The maximum benefit amount payable
   2-15  for benefit period under this section to any individual on the
   2-16  effective date of a valid claim shall remain the maximum benefit
   2-17  amount payable to that individual until that individual establishes
   2-18  a new benefit year.
   2-19        (d)  Duration of Benefits:  The Commission shall establish
   2-20  eligible benefit wage credits for each individual's <individual by
   2-21  crediting him with the wages for employment received by him during
   2-22  his> base period <from employers>.  The maximum total amount of
   2-23  benefits payable to any eligible individual during any benefit year
   2-24  shall not exceed whichever is the lesser of:
   2-25              (1)  Twenty-six (26) times his benefit amount, or
    3-1              (2)  Twenty-seven per cent (27%) of such wage credits;
    3-2  provided that if such is not an even multiple of One Dollar ($1),
    3-3  it shall be adjusted to the next higher multiple of One Dollar
    3-4  ($1).
    3-5        (e)  Eligible Benefit Wage Credits:  "Eligible benefit
    3-6  <"Benefit> wage credits" means those wages as defined in this
    3-7  subsection of the Act, that are not disallowed under Section 5-A of
    3-8  this Act and may be <which are> used in determining an individual's
    3-9  right to benefits under this Act.  "Wages" as used in this Section
   3-10  shall be as defined in subsection (n) of Section 19 of this Act,
   3-11  except that the limitation on wages as set out in subsection (n)(1)
   3-12  of Section 19 shall not be applicable for the purposes of this
   3-13  Section 3; provided that wages which have been used to qualify an
   3-14  individual for regular benefits under this Act or under any other
   3-15  unemployment compensation law shall not be used again to qualify
   3-16  such individual for regular benefits.  If an employer fails to
   3-17  report wages which were paid to a claimant during a base period
   3-18  when requested by the Commission, the Commission may establish wage
   3-19  credits for such claimant for such base period on the basis of the
   3-20  best information which has been obtained by the Commission.
   3-21        SECTION 2.  Section 4, Texas Unemployment Compensation Act
   3-22  (Article 5221b-2, Vernon's Texas Civil Statutes), is amended to
   3-23  read as follows:
   3-24        Sec. 4.  BENEFIT ELIGIBILITY CONDITIONS.  Except as provided
   3-25  by Section 31 of this Act, an unemployed individual shall be
    4-1  eligible to receive benefits with respect to any benefit period
    4-2  only if the Commission finds that:
    4-3              (a)  He has registered for work at, and thereafter has
    4-4  continued to report at, an employment office in accordance with
    4-5  such regulations as the Commission may prescribe;
    4-6              (b)  He has made a claim for benefits in accordance
    4-7  with the provisions of Subsection 6(a) of this Act;
    4-8              (c)  He is able to work;
    4-9              (d)  He is available for work;
   4-10              (e)  He has within his base period received eligible
   4-11  benefit wage credits for employment by employers in an amount not
   4-12  less than thirty-seven (37) times his weekly benefit amount and has
   4-13  eligible benefit wage credits in at least two (2) calendar quarters
   4-14  in his base period provided that any claimant who has had a prior
   4-15  benefit year must have earned wages in an amount equal to six (6)
   4-16  times his weekly benefit amount or more subsequent to the beginning
   4-17  date of the prior benefit year.
   4-18              (f)  Prior to the first payment of benefits following
   4-19  an initial claim he has been totally or partially unemployed for a
   4-20  waiting period of seven (7) consecutive days.  No week shall be
   4-21  counted as a waiting period week for the purposes of this
   4-22  Subsection:
   4-23                    (1)  Unless he has registered for work at an
   4-24  employment office in accordance with Subsection (a) of this
   4-25  Section;
    5-1                    (2)  Unless it is a week following the filing of
    5-2  an initial claim;
    5-3                    (3)  Unless he reports at an office of the
    5-4  Commission and certifies that he has met the waiting period
    5-5  requirements herein prescribed for the preceding seven (7) days;
    5-6                    (4)  If benefits have been paid or are payable
    5-7  with respect thereto;
    5-8                    (5)  If the individual does not meet the
    5-9  eligibility conditions of Subsections (c) and (d) of this Section
   5-10  4;
   5-11                    (6)  If the individual has been disqualified for
   5-12  benefits for such seven (7) day period under the provisions of
   5-13  Subsections (a), (b), (c), or (d) of Section 5 of this Act;
   5-14                    (7)  Provided, notwithstanding any other
   5-15  provision of this Subsection (f), when an individual has been paid
   5-16  benefits in his current benefit year equal to three times his
   5-17  weekly benefit amount, he shall be eligible to receive benefits on
   5-18  his waiting period claim in accordance with the terms of the Act.
   5-19        SECTION 3.  The Texas Unemployment Compensation Act (Article
   5-20  5221b-1 et seq., Vernon's Texas Civil Statutes) is amended by
   5-21  adding Section 5-A to read as follows:
   5-22        Sec. 5-A.  DISALLOWANCE OF CERTAIN BENEFIT WAGE CREDITS.
   5-23  After an initial claim is filed by an unemployed individual and
   5-24  before the commission determines whether that claim is a valid
   5-25  claim, the commission shall determine whether the wages the
    6-1  individual received from employers during the base period of the
    6-2  initial claim may be classified as eligible benefit wage credits
    6-3  under Section 3(e) of this Act.  If the individual who filed the
    6-4  initial claim would have been subject to a disqualification under
    6-5  Section 5(a), 5(b), 5(j), or 5(k) of this Act because of the reason
    6-6  for separation from the employment, the commission shall disallow
    6-7  the use of those wages as eligible benefit wage credits and shall
    6-8  issue a determination in accordance with Section 6(b) of this Act.
    6-9        SECTION 4.  Section 6(b), Texas Unemployment Compensation Act
   6-10  (Article 5221b-4, Vernon's Texas Civil Statutes), is amended to
   6-11  read as follows:
   6-12        (b)  An unemployed individual who has no current benefit year
   6-13  may file an initial claim in accordance with rules or regulations
   6-14  prescribed by the Commission.  The Commission shall mail a notice
   6-15  of the filing of such initial claim to each employer who paid wages
   6-16  to the claimant in the claimant's base period <the individual or
   6-17  organization for which the claimant last worked> prior to the
   6-18  effective date of the initial claim.  If an employer <the
   6-19  individual or organization> has more than one branch or division
   6-20  operating at different locations, notice of the filing of such
   6-21  initial claim shall be mailed to the branch or division where
   6-22  claimant last worked.  Mailing of notice of the initial claim to
   6-23  the correct address of the employer <individual or organization or
   6-24  the branch or division where claimant last worked> shall constitute
   6-25  due notice to such employer <individual or organization>.  All
    7-1  employers, including <A> governmental employers, <employer> may
    7-2  designate in writing to the Commission an address for mail service.
    7-3  When an <a governmental> employer has so designated a mailing
    7-4  address, mailing of notice of claims, determinations, or other
    7-5  decisions to such address shall constitute due notice to the
    7-6  <governmental> employer.  If the employer <individual or
    7-7  organization> to which such notice is mailed has knowledge of any
    7-8  facts that may adversely affect such claimant's right to benefits,
    7-9  or that may affect a charge to its account, it shall notify the
   7-10  Commission of such facts promptly.  If such employer <individual or
   7-11  organization> does not mail or deliver such notification to the
   7-12  Commission within twelve (12) days from the date notice of a claim
   7-13  was mailed to it by the Commission, such employer <individual or
   7-14  organization> shall be deemed to have waived all rights in
   7-15  connection with such claim, including any rights it may have under
   7-16  subsection 7(c)(2) of this Act, except with respect to a clerical
   7-17  or machine error as to the amount of its chargeback or maximum
   7-18  potential chargeback in connection with such claim.
   7-19        The Commission shall determine whether such initial claim is
   7-20  valid.  If such initial claim is valid, the Commission shall
   7-21  determine the benefit year, the benefit amount for total
   7-22  unemployment and the duration of benefits.  A notice of the
   7-23  determination of the initial claim shall be mailed to the claimant
   7-24  at his last known address as reflected by Commission records.  The
   7-25  claimant may within fourteen (14) calendar days from the date such
    8-1  notice was mailed request a redetermination or appeal in the manner
    8-2  provided in this Section.
    8-3        If an employer who paid wages to the <such individual or
    8-4  organization for which> claimant <last worked> has filed a
    8-5  notification with the Commission in accordance with this Section,
    8-6  an examiner shall make a determination as to whether the claimant
    8-7  is disqualified <from receipt of benefits> under Section 5 (Article
    8-8  5221b-3) of this Act, as to any other issue affecting the
    8-9  claimant's right to receive benefits which may have arisen under
   8-10  any other provision of this Act, and as to whether a chargeback
   8-11  shall be made to the account of the employer <individual or
   8-12  organization> if benefits are paid, and shall mail a copy of the
   8-13  determination to the claimant and <to such individual or
   8-14  organization, or the branch or division for which the claimant last
   8-15  worked, or> to the address for mail service designated by that <a
   8-16  governmental> employer.  In the absence of such notification <from
   8-17  such individual or organization>, if, from information on the claim
   8-18  or other information secured, an issue is raised affecting the
   8-19  claimant's rights to benefits under any provision of this Act, an
   8-20  examiner shall prepare a determination reflecting his decision and
   8-21  mail a copy of it to the claimant at his last known address.
   8-22        Unless the claimant or the employer <individual or
   8-23  organization or branch thereof> to which the copy of the
   8-24  determination is mailed files an appeal from such determination
   8-25  within fourteen (14) calendar days after such copy of the
    9-1  determination is mailed to his or its last known address as
    9-2  reflected by Commission records, such determination shall be final
    9-3  for all purposes and benefits shall be paid or denied in accordance
    9-4  therewith; provided, that within the same period of time, an
    9-5  examiner may file an appeal from such determination, or may, if he
    9-6  discovers error in connection therewith or additional information
    9-7  not previously available, reconsider and redetermine any such
    9-8  determination, and such redetermination shall replace such
    9-9  determination and shall become final unless an appeal therefrom is
   9-10  filed by such claimant or such employer <individual or
   9-11  organization> within fourteen (14) calendar days after a copy of
   9-12  such redetermination was mailed to his or its last known address as
   9-13  reflected by Commission records.
   9-14        Notwithstanding any provision in this Act under which
   9-15  benefits may be paid or denied, benefits shall be paid promptly in
   9-16  accordance with a determination or redetermination of an examiner,
   9-17  a decision of an appeal tribunal, the Commission, or a reviewing
   9-18  court, on the issuance of that determination, redetermination or
   9-19  decision (regardless of the pendency of the period to apply for
   9-20  reconsideration, file an appeal, or petition for judicial review,
   9-21  or the pendency of that application, filing, or petition), unless
   9-22  and until that determination, redetermination, or decision has been
   9-23  modified or reversed by a subsequent redetermination or decision,
   9-24  in which event benefits shall be paid or denied in accordance with
   9-25  the modifying or reversing redetermination or decision.  If a
   10-1  determination or decision is finally modified or reversed to deny
   10-2  benefits, no chargeback shall be made to the employer's account by
   10-3  reason of payments made to the claimant for any benefit period with
   10-4  respect to which he is finally denied benefits.  Any benefits paid
   10-5  to the claimant which were not in accordance with the final
   10-6  decision shall be refunded by the claimant to the Commission or in
   10-7  the discretion of the Commission shall be deducted from future
   10-8  benefits payable to him under this Act, and the amount of benefits
   10-9  paid which were not in accordance with the final decision shall
  10-10  also be collectible in the manner provided in Section 14(b) of this
  10-11  Act for the collection of past due contributions.
  10-12        SECTION 5.  Section 19(m), Texas Unemployment Compensation
  10-13  Act (Article 5221b-17, Vernon's Texas Civil Statutes), is amended
  10-14  to read as follows:
  10-15        (m)  "Valid claim" means either an initial claim filed by an
  10-16  unemployed individual who has <received> the eligible benefit wage
  10-17  credits <wages> necessary to qualify for benefits under the terms
  10-18  of subsection 4(e) of this Act, or a claim for benefits filed by an
  10-19  unemployed individual who has <received> the eligible benefit wage
  10-20  credits <wages> necessary to qualify for benefits under the terms
  10-21  of subsection 4(e) of this Act and "initial claim" means the notice
  10-22  filed by an individual who does not have a current benefit year
  10-23  that he is unemployed and may, if such unemployment continues, file
  10-24  a claim for benefits.
  10-25        SECTION 6.  This Act takes effect September 1, 1993, and
   11-1  applies only to an initial claim for unemployment compensation
   11-2  benefits that is filed with the Texas Employment Commission on or
   11-3  after that date.  An initial claim filed before that date is
   11-4  governed by the law in effect on the date that the claim was filed,
   11-5  and the former law is continued in effect for that purpose.
   11-6        SECTION 7.  The importance of this legislation and the
   11-7  crowded condition of the calendars in both houses create an
   11-8  emergency and an imperative public necessity that the
   11-9  constitutional rule requiring bills to be read on three several
  11-10  days in each house be suspended, and this rule is hereby suspended.