BILL ANALYSIS H.B. 1029 By: Oliveira 02-21-95 Committee Report (Unamended) BACKGROUND The Texas Unemployment Compensation Act was codified last session (1993) into the Texas Labor Code. As a result of the rewriting and renumbering of the law, as well as ongoing attempts by the Texas Employment Commission (TEC) to simplify its statutory authority, some provisions of the Labor Code need updating or deleting. These changes are technical changes for the efficient function of the TEC and include: 1. Deleting taxable wages phase-in provisions that are now fully phased in and deleting reference to an obsolete Internal Revenue Code provision. 2. Allowing employers and claimants to report wages to TEC in whole dollar amounts by rounding to the nearest dollar. 3. Allowing non-governmental employers to designate a single mailing address for notices of filed claims. 4. Allowing TEC authority to correct clerical or machine errors after the 14-day protest period. 5. Codifying the levy provisions passed in 1993 and allow a levy at anytime during the 60-day freeze on accounts or assets (which conforms TEC's levy procedures with those in the Tax Code). PURPOSE Update the Labor Code to make technical changes for better and more efficient operations of TEC and to eliminate outdated provisions. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 201.082 of the Labor Code to delete phase in provisions for taxable wages that are no longer necessary and deletes a reference to the Internal Revenue Code that is obsolete. SECTION 2. Allows an employer or a claimant to report wages to the nearest dollar amount. SECTION 3. Authorizes the TEC to allow any employer to designate a special address for the receipt of notices. The current provision allows governmental employers to have designated addresses. SECTION 4. Authorizes the TEC to issue redetermination of benefits based on clerical or machine errors. Current law prohibits the correction of a benefit determination after the date for appeal passes. SECTION 5. Codifies the 1993 laws for the collection of delinquent unemployment taxes. Makes one substantive change to existing law in Section 213.059 (g) that allows the TEC to levy against frozen accounts or assets anytime during the 60 day freeze. SECTION 6. Effective date September 1, 1995. SECTION 7. Emergency clause. SUMMARY OF COMMITTEE ACTION H.B. 1029 was considered in a public hearing on February 20, 1995. Testifying on the bill was John Jennings, representing the Texas Employment Commission. Testifying in favor of the bill was Walter Hinojosa, representing the Texas AFL-CIO, and Ted Roberts, representing the Texas Association of Business and Chambers of Commerce. No one testified against the bill. A motion was made to report H.B. 1029 favorably to the House, without amendment, with the recommendation that it be placed on the consent calendar. The motion prevailed by a vote of 7 Ayes, 0 Nays, 0 PNV, and 2 Absent.