1-1 By: Campbell (Senate Sponsor - Parker) H.B. No. 2534
1-2 (In the Senate - Received from the House May 17, 1993;
1-3 May 19, 1993, read first time and referred to Committee on Economic
1-4 Development; May 24, 1993, reported favorably by the following
1-5 vote: Yeas 8, Nays 0; May 24, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Parker x
1-9 Lucio x
1-10 Ellis x
1-11 Haley x
1-12 Harris of Dallas x
1-13 Harris of Tarrant x
1-14 Leedom x
1-15 Madla x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the repeal of the disqualification for unemployment
1-22 compensation benefits based on the receipt of certain social
1-23 security benefits.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 5, Texas Unemployment Compensation Act
1-26 (Article 5221b-3, Vernon's Texas Civil Statutes), is amended to
1-27 read as follows:
1-28 Sec. 5. An individual shall be disqualified for benefits:
1-29 (a) If the Commission finds that he has left his last work
1-30 voluntarily without good cause connected with his work. The
1-31 disqualification continues until the claimant has returned to
1-32 employment and either worked for six weeks or earned wages equal to
1-33 six times his weekly benefit amount, unless the individual left
1-34 work to move with a spouse from the area in which the individual
1-35 worked. In that case, the disqualification shall be for not less
1-36 than six (6) nor more than twenty-five (25) benefit periods
1-37 following the filing of a valid claim, as determined by the
1-38 Commission according to the circumstances in each case. Provided
1-39 no claimant shall be disqualified because of his or her leaving due
1-40 to medically verified illness of the claimant or the claimant's
1-41 minor child, injury, disability, or pregnancy and is still
1-42 available for work. A medically verified illness of a minor child
1-43 only prevents disqualification under this subsection if there is no
1-44 reasonable alternative care available to the child and the employer
1-45 refused to allow the employee a reasonable amount of time off
1-46 during the illness. Military personnel who do not reenlist may not
1-47 be considered to have left work voluntarily without good cause
1-48 connected with work. An individual who is partially unemployed and
1-49 who resigns that employment to accept other employment that the
1-50 individual reasonably believes will increase the individual's
1-51 weekly wage is not disqualified under this subsection.
1-52 (b) If the Commission finds he has been discharged for
1-53 misconduct connected with his last work. The disqualification
1-54 continues until the claimant has returned to employment and either
1-55 worked for six weeks or earned wages equal to six times his weekly
1-56 benefit amount.
1-57 (c) If the Commission finds that during his current benefit
1-58 year he has failed, without good cause, either to apply for
1-59 available, suitable work when so directed by the Commission or to
1-60 accept suitable work when offered him, or to return to his
1-61 customary self-employment (if any) when so directed by the
1-62 Commission. The disqualification continues until the claimant has
1-63 returned to employment and either worked for six weeks or earned
1-64 wages equal to six times his weekly benefit amount.
1-65 (1) In determining whether or not any work is suitable
1-66 for an individual, the Commission shall consider the degree of risk
1-67 involved to his health, safety and morals at the place of
1-68 performance of his work, his physical fitness and prior training,
2-1 his experience and prior earnings, his length of unemployment and
2-2 prospects for securing local work in his customary occupation, and
2-3 the distance of the available work from his residence.
2-4 (2) Notwithstanding any other provisions of this Act,
2-5 no work shall be deemed suitable and benefits shall not be denied
2-6 under this Act to any otherwise eligible individual for refusing to
2-7 accept new work under any of the following conditions: (a) If the
2-8 position offered is vacant due directly to a strike, lockout, or
2-9 other labor dispute; (b) If the wages, hours, or other conditions
2-10 of the work offered are substantially less favorable to the
2-11 individual than those prevailing for similar work in the locality;
2-12 (c) If as a condition of being employed the individual would be
2-13 required to join a company union or to resign from or refrain from
2-14 joining any bona fide labor organization.
2-15 (d) For any benefit period with respect to which the
2-16 Commission finds that his total or partial unemployment is (i) due
2-17 to the claimant's stoppage of work because of a labor dispute at
2-18 the factory, establishment, or other premises (including a vessel)
2-19 at which he is or was last employed, or (ii) because of a labor
2-20 dispute at another place, either within or without this State,
2-21 which is owned or operated by the same employing unit which owns or
2-22 operates the premises at which he is or was last employed, and
2-23 supplies materials or services necessary to the continued and usual
2-24 operation of the premises at which he is or was last employed;
2-25 provided that this subsection shall not apply if it is shown to the
2-26 satisfaction of the Commission that:
2-27 (1) He is not participating in or financing or
2-28 directly interested in the labor dispute; provided, however, that
2-29 failure or refusal to cross a picket line or refusal for any reason
2-30 during the continuance of such labor dispute to accept and perform
2-31 his available and customary work at the factory, establishment, or
2-32 other premises (including a vessel) where he is or was last
2-33 employed shall be considered as participation and interest in the
2-34 labor dispute; and
2-35 (2) He does not belong to a grade or class of workers
2-36 of which, immediately before the commencement of the labor dispute,
2-37 there were members employed at the premises (including a vessel) at
2-38 which the labor dispute occurs, any of whom are participating in or
2-39 financing or directly interested in the dispute; provided, that if
2-40 in any case separate branches of work which are commonly conducted
2-41 as separate businesses in separate premises are conducted in
2-42 separate departments of the same premises, each such department
2-43 shall, for the purposes of this subsection, be deemed to be a
2-44 separate factory, establishment, or other premises; and where a
2-45 disqualification arises from the employee's failure to meet the
2-46 requirements of this paragraph (2) of this subsection (d) his
2-47 disqualification shall cease if he shall show that he is not, and
2-48 at the time of the labor dispute was not, a member of a labor
2-49 organization which is the same as, represented by, or directly
2-50 affiliated with, or that he, or such organization of which he is a
2-51 member, if any, is not acting in concert or in sympathy with a
2-52 labor organization involved in the labor dispute at the premises at
2-53 which the labor dispute occurred, and he has made an unconditional
2-54 offer to return to work at the premises at which he is or was last
2-55 employed.
2-56 (e) For any benefit period with respect to which he is
2-57 receiving or has received remuneration in the form of:
2-58 (1) Wages in lieu of notice; or
2-59 (2) Compensation for temporary partial disability,
2-60 temporary total disability or total and permanent disability under
2-61 the Workmen's Compensation Law of any State or under a similar law
2-62 of the United States<;>
2-63 <(3) Old Age Benefits under Title II of the Social
2-64 Security Act as amended, or similar payments under any Act of
2-65 Congress, or a State Legislature; provided, that if such
2-66 remuneration is less than the benefits which would otherwise be due
2-67 under this Act, he shall be entitled to receive for such benefit
2-68 period, if otherwise eligible, benefits reduced by the amount of
2-69 such remuneration. If any such benefits, payable under this
2-70 subsection, after being reduced by the amount of such remuneration,
3-1 are not an even multiple of One Dollar ($1), they shall be adjusted
3-2 to the next higher multiple of One Dollar ($1)>.
3-3 (f) For a benefit period occurring from the date of the sale
3-4 of a business until the date that an individual is employed and is
3-5 eligible for benefits based on the wage credits received through
3-6 the new employment, if:
3-7 (1) the business is a corporation and the individual
3-8 is:
3-9 (A) an officer of the corporation;
3-10 (B) a majority or controlling shareholder in the
3-11 corporation; and
3-12 (C) involved in the sale of the corporation;
3-13 (2) the business is a limited or general partnership
3-14 and the individual is a limited or general partner who is involved
3-15 in the sale of the partnership; or
3-16 (3) the business is a sole proprietorship and the
3-17 individual is the proprietor who sells the business.
3-18 (g) For the duration of any period of unemployment with
3-19 respect to which the Commission finds that such individual has left
3-20 his most recent work for the purpose of attending an established
3-21 educational institution; provided, that this subsection shall not
3-22 apply during a period in which an individual is in training with
3-23 the approval of the Commission.
3-24 (h) For weeks of unemployment beginning after March 31,
3-25 1980, for any benefit period with respect to which the individual
3-26 is receiving a governmental or other pension, retirement or retired
3-27 pay, annuity, or any other similar periodic payment which is based
3-28 on the previous work of the individual and which is reasonably
3-29 attributable to that benefit period; provided that if the
3-30 remuneration is less than the benefits which would otherwise be due
3-31 under this Act, the individual shall be entitled to receive for
3-32 that benefit period, if otherwise eligible, benefits reduced by the
3-33 amount of the remuneration. If those benefits payable under this
3-34 subsection, after being reduced by the amount of the remuneration,
3-35 are not an even multiple of One Dollar ($1), they shall be adjusted
3-36 to the next higher multiple of One Dollar ($1). If payments
3-37 referred to in this paragraph are being received by any individual
3-38 under the Federal Social Security Act, the Commission shall take
3-39 into account the individual's contribution and make no reduction in
3-40 the weekly benefit amount.
3-41 The Legislature declares that the preceding paragraph is
3-42 enacted because Section 3304(a)(15) of the Federal Unemployment Tax
3-43 Act as provided in Public Law 94-566 requires this provision in
3-44 State law as of January 1, 1978, as a condition for full tax credit
3-45 against the tax imposed by the Federal Unemployment Tax Act; and it
3-46 further declares that if Section 3304(a)(15) is amended to provide
3-47 modifications of these requirements, the modified requirements, to
3-48 the extent that they are required for full tax credit, shall be
3-49 considered applicable under the provisions of this Section rather
3-50 than the provision stated in the preceding paragraph.
3-51 (i) This Section does not disqualify a claimant whose
3-52 work-related reason for separation from employment was urgent,
3-53 compelling, and of a necessitous nature so as to make separation
3-54 involuntary.
3-55 (j) If the Commission finds that he has left his last work
3-56 voluntarily rather than provide services included within the course
3-57 and scope of his employment to an individual infected with a
3-58 communicable disease. The disqualification continues until the
3-59 claimant has returned to employment and either worked for six weeks
3-60 or earned wages equal to six times the claimant's weekly benefit
3-61 amount. A claimant is not disqualified under this subsection
3-62 unless the individual or organization for whom the claimant last
3-63 worked made available to the claimant the facilities, equipment,
3-64 training, and supplies necessary to permit the claimant to take
3-65 reasonable precautions to preclude the infection of the claimant
3-66 with the communicable disease.
3-67 (k) If the Commission finds that he has been discharged from
3-68 his last work based on a refusal by him to provide services
3-69 included within the course and scope of his employment to an
3-70 individual infected with a communicable disease. The
4-1 disqualification continues until the claimant has returned to
4-2 employment and either worked for six weeks or earned wages equal to
4-3 six times the claimant's weekly benefit amount. A claimant is not
4-4 disqualified under this subsection unless the individual or
4-5 organization for whom the claimant last worked made available to
4-6 the claimant the facilities, equipment, training, and supplies
4-7 necessary to preclude the infection of the claimant with the
4-8 communicable disease.
4-9 SECTION 2. The importance of this legislation and the
4-10 crowded condition of the calendars in both houses create an
4-11 emergency and an imperative public necessity that the
4-12 constitutional rule requiring bills to be read on three several
4-13 days in each house be suspended, and this rule is hereby suspended.
4-14 * * * * *
4-15 Austin,
4-16 Texas
4-17 May 24, 1993
4-18 Hon. Bob Bullock
4-19 President of the Senate
4-20 Sir:
4-21 We, your Committee on Economic Development to which was referred
4-22 H.B. No. 2534, have had the same under consideration, and I am
4-23 instructed to report it back to the Senate with the recommendation
4-24 that it do pass and be printed.
4-25 Parker,
4-26 Chairman
4-27 * * * * *
4-28 WITNESSES
4-29 No witnesses appeared on H.B. No. 2534.