By Bosse                                               H.B. No. 427
       74R2682 PB-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the exclusion from coverage under the Texas
    1-3  Unemployment Compensation Act of services performed by certain
    1-4  securities representatives.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter E, Chapter  201, Labor Code, is
    1-7  amended by adding Section 201.0725 to read as follows:
    1-8        Sec. 201.0725.  SERVICE AS SECURITIES REPRESENTATIVE.  In
    1-9  this subtitle, "employment" does not include services performed for
   1-10  a private for-profit person by an individual as a securities
   1-11  dealer, agent, or salesman if:
   1-12              (1)  the individual is engaged in performing an act or
   1-13  transaction subject to the definition of "dealer," "agent," or
   1-14  "salesman" under Section 4, The Securities Act (Article 581-4,
   1-15  Vernon's Texas Civil Statutes);
   1-16              (2)  the individual is registered as a securities
   1-17  dealer, agent, or salesman by the securities commissioner under The
   1-18  Securities Act (Article 581-1 et seq., Vernon's Texas Civil
   1-19  Statutes);
   1-20              (3)  substantially all the remuneration for the
   1-21  performance of the services, whether paid in cash or otherwise, is
   1-22  directly related to sales or other output, including the
   1-23  performance of services, rather than the number of hours worked;
   1-24  and
    2-1              (4)  the services performed by the individual are
    2-2  performed under a written contract between the individual and the
    2-3  person for whom the services are performed and the contract
    2-4  provides that the individual is not treated as an employee with
    2-5  respect to those services for federal tax purposes.
    2-6        SECTION 2.  This Act takes effect September 1, 1995, and
    2-7  applies only to benefit eligibility based on a claim for
    2-8  unemployment compensation benefits that is filed with the Texas
    2-9  Employment Commission on or after that date.  A claim filed before
   2-10  that date is governed by the law in effect on the date that the
   2-11  claim was filed, and the former law is continued in effect for that
   2-12  purpose.
   2-13        SECTION 3.  The importance of this legislation and the
   2-14  crowded condition of the calendars in both houses create an
   2-15  emergency and an imperative public necessity that the
   2-16  constitutional rule requiring bills to be read on three several
   2-17  days in each house be suspended, and this rule is hereby suspended.