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efficient operations of TEC and to eliminate outdated provisions.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and deletes a reference to the Internal Revenue Code that is
obsolete.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.