1-1 By: Oliveira (Senate Sponsor - Sibley) H.B. No. 1029
1-2 (In the Senate - Received from the House April 10, 1995;
1-3 April 11, 1995, read first time and referred to Committee on
1-4 Economic Development; May 22, 1995, reported favorably, as amended,
1-5 by the following vote: Yeas 9, Nays 0; May 22, 1995, sent to
1-6 printer.)
1-7 COMMITTEE AMENDMENT NO. 1 By: Sibley
1-8 Amend H.B. 1029 as follows:
1-9 (1) On page 4, line 27 insert the following before the word
1-10 "after":
1-11 "within three (3) years".
1-12 (2) On page 6, add a new subsection (k) as follows:
1-13 "(k) This section does not apply to a person unless they
1-14 have received a notice of their right to contest the amount claimed
1-15 to be delinquent in an administrative proceeding and those remedies
1-16 have been exhausted."
1-17 A BILL TO BE ENTITLED
1-18 AN ACT
1-19 relating to the operation and administration of the state
1-20 unemployment compensation system.
1-21 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-22 SECTION 1. Section 201.082, Labor Code, is amended to read
1-23 as follows:
1-24 Sec. 201.082. Exceptions to Wages. In this subtitle,
1-25 "wages" does not include:
1-26 (1) that part of the remuneration paid by an employer
1-27 to an individual for employment during a calendar year that exceeds
1-28 remuneration to the individual, excluding remuneration under
1-29 another subdivision of this section, by the employer, of<:>
1-30 <(A) $7,000 for a calendar year before 1988;>
1-31 <(B) $8,000 for calendar year 1988; or>
1-32 <(C)> $9,000 <for a calendar year after calendar
1-33 year 1988>;
1-34 (2) a payment, including an amount the employer pays
1-35 for insurance or an annuity or pays into a fund for the payment of
1-36 insurance or an annuity, that is made to or for an employee or the
1-37 employee's dependent under a plan the employer established for
1-38 employees generally, or a class of employees, including or
1-39 excluding the employee's dependents, for:
1-40 (A) retirement;
1-41 (B) sickness or accident disability;
1-42 (C) medical or hospitalization expenses in
1-43 connection with sickness or accident disability; or
1-44 (D) expenses related to death;
1-45 (3) a payment made to an individual employee for
1-46 retirement, including an amount an employer pays for insurance or
1-47 an annuity or pays into a fund for the payment of insurance or an
1-48 annuity;
1-49 (4) a payment for sickness or accident disability, or
1-50 medical or hospitalization expenses for sickness or accident
1-51 disability, an employer makes to or for an individual employee
1-52 after the expiration of six calendar months after the last calendar
1-53 month the employee worked for the employer;
1-54 (5) a payment made to or for an employee or the
1-55 employee's beneficiary:
1-56 (A) from or to a trust defined by Section
1-57 401(a), Internal Revenue Code of 1986 (26 U.S.C. Section 401(a)),
1-58 that is exempt from tax under Section 501(a), Internal Revenue Code
1-59 of 1986 (26 U.S.C. Section 501(a)), at the time of payment, unless
1-60 the payment is made to an employee of the trust as remuneration for
1-61 service as an employee and not as a beneficiary of the trust; or
1-62 (B) under or to an annuity plan that, at the
1-63 time of the payment, is a plan described by Section 403(a),
1-64 Internal Revenue Code of 1986 (26 U.S.C. Section 403(a)); <or>
1-65 <(C) under or to a bond purchase plan that, at
1-66 the time of the payment, was a qualified bond purchase plan under
1-67 Section 405(a), Internal Revenue Code of 1954 (former 26 U.S.C.
1-68 Section 405(a));>
2-1 (6) a tax an employer pays, without deduction from the
2-2 remuneration of the employee, that is imposed on the employee under
2-3 Section 3101, Internal Revenue Code of 1986 (26 U.S.C. Section
2-4 3101);
2-5 (7) noncash remuneration paid to an employee for
2-6 service not in the course of the employer's business;
2-7 (8) a payment, except vacation or sick pay, made to an
2-8 employee after the month the employee is 65 years of age, if the
2-9 employee did not work for the employer in the period for which the
2-10 payment is made; or
2-11 (9) the part of remuneration from a single employer
2-12 for services in a calendar year that exceeds the amount applicable
2-13 to the year under Subdivision (1) for which contributions have been
2-14 paid under a state unemployment law.
2-15 SECTION 2. Subchapter F, Chapter 201, Labor Code, is amended
2-16 by adding Section 201.083 to read as follows:
2-17 Sec. 201.083. ROUNDING OF WAGE AMOUNT. For the purpose of
2-18 reporting wages to the commission, if wages are not a multiple of
2-19 $1, the reported wages may be rounded to the nearest dollar.
2-20 SECTION 3. Section 208.003, Labor Code, is amended to read
2-21 as follows:
2-22 Sec. 208.003. NOTICE TO EMPLOYERS <GOVERNMENTAL EMPLOYER>.
2-23 (a) A governmental employer may designate in writing to the
2-24 commission an address for mail service.
2-25 (b) The commission may authorize a private employer to
2-26 designate in writing to the commission an address for mail service.
2-27 (c) If an employer <a governmental employer> designates a
2-28 mailing address under Subsection (a) or (b), mailing of notice of
2-29 claims, determinations, or other decisions to that address
2-30 constitutes notice to the <governmental> employer.
2-31 SECTION 4. Section 212.054(a), Labor Code, is amended to
2-32 read as follows:
2-33 (a) Except as otherwise provided by this subsection, if <If>
2-34 an examiner discovers an error in connection with a determination
2-35 or discovers additional information not previously available, the
2-36 examiner, within the period specified in Section 212.053(1), may
2-37 reconsider and redetermine the determination. An examiner may
2-38 issue a redetermination to correct a clerical or machine error at
2-39 any time during a claimant's benefit year.
2-40 SECTION 5. Subchapter D, Chapter 213, Labor Code, is amended
2-41 by adding Section 213.059 to read as follows:
2-42 Sec. 213.059. DELINQUENCY; NOTICE OF LEVY. (a) If a person
2-43 is delinquent in the payment of any amount, including
2-44 contributions, penalties, and interest due under this subtitle, the
2-45 commission may notify personally or by mail any other person who:
2-46 (1) possesses or controls an asset belonging to the
2-47 delinquent person; or
2-48 (2) owes a debt to the delinquent person.
2-49 (b) A notice under this section to a state officer,
2-50 department, or agency must be given before the officer, department,
2-51 or agency presents to the comptroller the claim of the delinquent
2-52 person.
2-53 (c) A notice under this section may be given at any time
2-54 after the amount due under this subtitle becomes delinquent. The
2-55 notice must state the amount of contributions, penalties, interest,
2-56 or other amounts due, and any additional amount that will accrue by
2-57 operation of law in a period not to exceed 30 days after the date
2-58 on which the notice is given, and, in the case of a credit, bank,
2-59 or savings account or deposit, is effective only up to that amount.
2-60 (d) On receipt of a notice under this section, the person
2-61 receiving the notice:
2-62 (1) shall advise the commission not later than the
2-63 20th day after the date the notice is received of each asset
2-64 belonging to the delinquent person that is possessed or controlled
2-65 by the person receiving the notice and of each debt owed by the
2-66 person receiving the notice to the delinquent person; and
2-67 (2) unless the commission consents to an earlier
2-68 disposition, may not transfer or dispose of the asset or debt
2-69 possessed, controlled, or owed by the person receiving the notice
2-70 as of the time the person received the notice during the 60-day
3-1 period after the date of receipt of the notice.
3-2 (e) A notice under this section that attempts to prohibit
3-3 the transfer or disposition of an asset possessed or controlled by
3-4 a bank is effective if it is delivered or mailed to the principal
3-5 office or any branch office of the bank, including any office of
3-6 the bank at which the deposit is carried or the credit or property
3-7 is held.
3-8 (f) A person who has received a notice under this section
3-9 and who transfers or disposes of an asset or debt in a manner that
3-10 violates Subsection (d) is liable to the commission for the amount
3-11 of the indebtedness of the delinquent person with respect to whose
3-12 obligation the notice was given to the extent of the value of that
3-13 asset or debt.
3-14 (g) At any time during the 60-day period described by
3-15 Subsection (d), the commission may levy on the asset or debt by
3-16 delivery of a notice of levy. On receipt of the levy notice, the
3-17 person possessing the asset or debt shall transfer the asset to the
3-18 commission or pay to the commission the amount owed to the
3-19 delinquent person.
3-20 (h) A notice delivered under this section is effective:
3-21 (1) at the time of delivery against all property,
3-22 rights to property, credits, and debts involving the delinquent
3-23 person that are not, as of the date of the notice, subject to a
3-24 preexisting lien, attachment, garnishment, or execution issued
3-25 through a judicial process; and
3-26 (2) against all property, rights to property, credits,
3-27 or debts involving the delinquent person that come into the
3-28 possession or control of the person served with a notice of levy
3-29 during the 60-day period provided by Subsection (d).
3-30 (i) A person acting in accordance with the terms of the
3-31 notice of freeze or levy issued by the commission is discharged
3-32 from any obligation or liability to the delinquent person with
3-33 respect to the affected property, rights to property, credits, and
3-34 debts of the person affected by compliance with the notice of
3-35 freeze or levy.
3-36 (j) In this section, "asset" means:
3-37 (1) a credit, bank, or savings account or deposit; or
3-38 (2) any other intangible or personal property.
3-39 SECTION 6. This Act takes effect September 1, 1995.
3-40 SECTION 7. The importance of this legislation and the
3-41 crowded condition of the calendars in both houses create an
3-42 emergency and an imperative public necessity that the
3-43 constitutional rule requiring bills to be read on three several
3-44 days in each house be suspended, and this rule is hereby suspended.
3-45 * * * * *