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.

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