BILL ANALYSIS
H.B. 1029
By: Oliveira (Sibley)
Economic Development
05-22-95
Senate Committee Report (Amended)
BACKGROUND
The Texas Unemployment Compensation Act was codified during the
73rd Legislature 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 to simplify its statutory
authority, some provisions of the Labor Code need updating or
deleting.
PURPOSE
As proposed, H.B. 1029 provides for the operation and
administration of the state unemployment compensation system.
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, Labor Code, as follows:
Sec. 201.082. EXCEPTIONS TO WAGES. Deletes from the provisions
"wages" does not include:
(1) that part of the remuneration paid by an employer to an
individual for employment during a calendar year that
exceeds remuneration to the individual by the employer of:
$7,000 for a calendar year before 1988; $8,000 for calendar
year 1988; or $9,000 for a calendar year after calendar year
1988; and
(5) a payment made to or for an employee or the employee's
beneficiary under or to a bond purchase plan that, at the
time of the payment, was a qualified bond purchase plan
under Section 405(a), Internal Revenue Code of 1954 (former
26 U.S.C. Section 405(a)).
SECTION 2. Amends Chapter 201F, Labor Code, by adding Section
201.083, as follows:
Sec. 201.083. ROUNDING OF WAGE AMOUNT. Provides that for the
purpose of reporting wages to the Texas Employment Commission
(commission), if wages are not a multiple of $1, the reported
wages may be rounded to the nearest dollar.
SECTION 3. Amends Section 208.003, Labor Code, as follows:
Sec. 208.003. New heading: NOTICE TO EMPLOYERS. (a) Makes no
change.
(b) Authorizes the commission to authorize a private
employer to designate in writing to the commission an
address for mail service.
(c) Provides that if an employer, rather than a governmental
employer, designates a mailing address under Subsection (a)
or (b), mailing of notice of claims, determinations, or
other decisions to that address constitutes notice to the
employer. Makes a conforming change.
SECTION 4. Amends Section 212.054(a), Labor Code, as follows:
(a) Authorizes an examiner to issue a redetermination to
correct a clerical or machine error at any time during a
claimant's benefit year. Makes a conforming change.
SECTION 5. Amends Chapter 213D, Labor Code, by adding Section
213.059, as follows:
Sec. 213.059. DELINQUENCY; NOTICE OF LEVY. (a) Authorizes the
commission, if a person is delinquent in the payment of any
amount, including contributions, penalties, and interest due
under this subtitle, to notify personally or by mail any other
person who:
(1) possesses or controls an asset belonging to the
delinquent person; or
(2) owes a debt to the delinquent person.
(b) Requires a notice under this section to a state officer,
department, or agency to be given before the officer,
department, or agency presents to the comptroller the claim of
the delinquent person.
(c) Authorizes a notice under this section to be given at any
time within three years after the amount due under this
subtitle becomes delinquent. Requires the notice to state the
amount of contributions, penalties, interest, or other amounts
due, and any additional amount that will accrue by operation
of law in a period not to exceed 30 days after the date on
which the notice is given, and, in the case of a credit, bank,
or savings account or deposit, is effective only up to that
amount.
(d) Provides that on receipt of a notice under this section,
the person receiving the notice:
(1) shall advise the commission no later than 20 days after
the notice is received of each asset belonging to the
delinquent person that is possessed or controlled by the
person receiving the notice and of each debt owed by the
person receiving the notice to the delinquent person; and
(2) unless the commission consents to an earlier
disposition, may not transfer or dispose of the asset or
debt possessed, controlled, or owed by the person receiving
the notice as of the time the person received the notice
during the 60-day period after the date of receipt of the
notice.
(e) Provides that a notice under this section that attempts to
prohibit the transfer or disposition of an asset possessed or
controlled by a bank is effective if it is delivered or mailed
to the principal office or any branch office of the bank,
including any office of the bank at which the deposit is
carried or the credit or property is held.
(f) Provides that a person who has received a notice under
this section and who transfers or disposes of an asset or debt
in a manner that violates Subsection (d) is liable to the
commission for the amount of the indebtedness of the
delinquent person with respect to whose obligation the notice
was given to the extent of the value of that asset or debt.
(g) Authorizes the commission, at any time during the 60-day
period described by Subsection (d), to levy on the asset or
debt by delivery of a notice of levy. Requires the person
possessing the asset or debt, on receipt of the levy notice,
to transfer the asset to the commission or pay to the
commission the amount owed to the delinquent person.
(h) Provides that a notice delivered under this section is
effective:
(1) at the time of delivery against all property, rights to
property, credits, and debts involving the delinquent person
that are not, as of the date of the notice, subject to a
preexisting lien, attachment, garnishment, or execution
issued through a judicial process; and
(2) against all property, rights to property, credits, or
debts involving the delinquent person that come into the
possession or control of the person served with a notice of
levy during the 60-day period provided by Subsection (d).
(i) Provides that a person acting in accordance with the terms
of the notice of freeze or levy issued by the commission is
discharged from any obligation or liability to the delinquent
person with respect to the affected property, rights to
property, credits, and debts of the person affected by
compliance with the notice of freeze or levy.
(j) Defines "asset."
(k) Provides that this section does not apply to a person
unless the person has received a notice of the right to
contest the amount claimed to be delinquent in an
administrative proceeding and those remedies have been
exhausted.
SECTION 6. Effective date: September 1, 1995.
SECTION 7. Emergency clause.