1-1 By: Oliveira, Yarbrough (Senate Sponsor - Ellis) H.B. No. 565
1-2 (In the Senate - Received from the House April 4, 1997;
1-3 April 8, 1997, read first time and referred to Committee on
1-4 Economic Development; April 29, 1997, reported favorably by the
1-5 following vote: Yeas 9, Nays 0; April 29, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to eligibility for and payment of unemployment
1-9 compensation benefits.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 204.022(a), Labor Code, is amended to
1-12 read as follows:
1-13 (a) Benefits computed on benefit wage credits of an employee
1-14 or former employee may not be charged to the account of an employer
1-15 if the employee's last separation from the employer's employment
1-16 before the employee's benefit year:
1-17 (1) was required by a federal statute;
1-18 (2) was required by a statute of this state or an
1-19 ordinance of a municipality of this state;
1-20 (3) would have disqualified the employee under Section
1-21 207.044, 207.045, 207.051, or 207.053 if the employment had been
1-22 the employee's last work;
1-23 (4) imposes a disqualification under Section 207.044,
1-24 207.045, 207.051, or 207.053;
1-25 (5) was caused by a medically verifiable illness of
1-26 the employee or the employee's minor child;
1-27 (6) was based on a natural disaster that results in a
1-28 disaster declaration by the president of the United States under
1-29 the Robert T. Stafford Disaster Relief and Emergency Assistance Act
1-30 (42 U.S.C. Section 5121 et seq.), if the employee would have been
1-31 entitled to unemployment assistance benefits under Section 410 of
1-32 that act (42 U.S.C. Section 5177) had the employee not received
1-33 state unemployment compensation benefits;
1-34 (7) was caused by a natural disaster, fire, flood, or
1-35 explosion that causes employees to be separated from one employer's
1-36 employment; or
1-37 (8) resulted from the employee's resigning from
1-38 partial employment to accept other employment that the employee
1-39 reasonably believed would increase the employee's weekly wage.
1-40 SECTION 2. Section 207.051, Labor Code, is amended to read
1-41 as follows:
1-42 Sec. 207.051. SALE OF BUSINESS. (a) An individual is
1-43 disqualified for benefits if the individual left the individual's
1-44 last work because of [after] the sale of:
1-45 (1) a corporation and the individual was [is]:
1-46 (A) an officer of the corporation;
1-47 (B) a majority or controlling shareholder in the
1-48 corporation; and
1-49 (C) involved in the sale of the corporation;
1-50 (2) a limited or general partnership and the
1-51 individual was [is] a limited or general partner who was [is]
1-52 involved in the sale of the partnership; or
1-53 (3) a sole proprietorship and the individual was [is]
1-54 the proprietor who sold [sells] the business.
1-55 (b) The disqualification under this section continues until
1-56 the individual has returned to employment and:
1-57 (1) worked for six weeks; or
1-58 (2) earned wages equal to six times the individual's
1-59 benefit amount [is effective for the benefit periods occurring
1-60 during the period beginning on the date of the sale of the business
1-61 and ending on the date the individual is employed and eligible for
1-62 benefits computed on benefit wage credits received through the new
1-63 employment].
1-64 SECTION 3. Chapter 207, Labor Code, is amended by adding
2-1 Subchapter G to read as follows:
2-2 SUBCHAPTER G. WITHHOLDING FROM UNEMPLOYMENT BENEFITS
2-3 FOR UNCOLLECTED OVERISSUANCES OF FOOD STAMPS
2-4 Sec. 207.111. DEFINITIONS. In this subchapter:
2-5 (1) "State agency" has the meaning assigned by Section
2-6 3(n), Food Stamp Act of 1977 (7 U.S.C. Section 2012(n)).
2-7 (2) "Uncollected overissuance" has the meaning
2-8 assigned by Section 13(c)(1), Food Stamp Act of 1977 (7 U.S.C.
2-9 Section 2022(c)(1)).
2-10 (3) "Unemployment benefits" means benefits payable
2-11 under this subtitle and any other amounts payable by the commission
2-12 under an agreement entered into under any federal law providing for
2-13 compensation, assistance, or allowances with respect to
2-14 unemployment.
2-15 Sec. 207.112. APPLICATION. This subchapter applies only if
2-16 arrangements have been made for reimbursement by the state agency
2-17 for the administrative costs incurred by the commission under this
2-18 subchapter that are attributable to the repayment of uncollected
2-19 overissuances to the state agency.
2-20 Sec. 207.113. REQUIRED DISCLOSURE; NOTICE TO FOOD STAMP
2-21 AGENCY. (a) An individual who files a new claim for unemployment
2-22 benefits shall disclose, at the time of filing of that claim,
2-23 whether the individual owes an uncollected overissuance.
2-24 (b) If an individual who discloses under Subsection (a) that
2-25 the individual does owe an uncollected overissuance is found
2-26 eligible for unemployment benefits, the commission shall notify
2-27 the state agency of the identity of that individual.
2-28 Sec. 207.114. WITHHOLDING. (a) The commission shall deduct
2-29 and withhold from unemployment benefits payable to an individual
2-30 who owes an uncollected overissuance:
2-31 (1) the amount the individual specifies to the
2-32 commission to be deducted and withheld under this section;
2-33 (2) the amount determined under an agreement submitted
2-34 to the state agency under Section 13(c)(3)(A), Food Stamp Act of
2-35 1977 (7 U.S.C. Section 2022(c)(3)(A)); or
2-36 (3) any amount otherwise required to be deducted and
2-37 withheld from unemployment benefits under Section 13(c)(3)(B), Food
2-38 Stamp Act of 1977 (7 U.S.C. Section 2022(c)(3)(B)).
2-39 (b) The commission shall pay any amount deducted and
2-40 withheld under this section to the state agency in this state.
2-41 (c) An amount deducted and withheld under this section shall
2-42 be treated for all purposes as if it were paid to the individual as
2-43 unemployment benefits and submitted by that individual to the state
2-44 agency as repayment of the individual's uncollected overissuance.
2-45 SECTION 4. This Act takes effect September 1, 1997, and
2-46 applies only to a claim for unemployment compensation benefits that
2-47 is filed with the Texas Workforce Commission on or after that date.
2-48 A claim filed before that date is governed by the law in effect on
2-49 the date that the claim was filed, and the former law is continued
2-50 in effect for that purpose.
2-51 SECTION 5. The importance of this legislation and the
2-52 crowded condition of the calendars in both houses create an
2-53 emergency and an imperative public necessity that the
2-54 constitutional rule requiring bills to be read on three several
2-55 days in each house be suspended, and this rule is hereby suspended.
2-56 * * * * *