1-1 By: Oliveira, Yarbrough (Senate Sponsor - Ellis) H.B. No. 567
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 the operation and administration of the state
1-9 unemployment compensation system.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 201.082, Labor Code, is amended to read
1-12 as follows:
1-13 Sec. 201.082. EXCEPTIONS TO WAGES. In this subtitle,
1-14 "wages" does not include:
1-15 (1) that part of the remuneration paid by an employer
1-16 to an individual for employment during a calendar year that exceeds
1-17 remuneration to the individual, excluding remuneration under
1-18 another subdivision of this section, by the employer, of [:]
1-19 [(A) $7,000 for a calendar year before 1988;]
1-20 [(B) $8,000 for calendar year 1988; or]
1-21 [(C)] $9,000 [for a calendar year after calendar
1-22 year 1988];
1-23 (2) a payment, including an amount the employer pays
1-24 for insurance or an annuity or pays into a fund for the payment of
1-25 insurance or an annuity, that is made to or for an employee or the
1-26 employee's dependent under a plan the employer established for
1-27 employees generally, or a class of employees, including or
1-28 excluding the employee's dependents, for:
1-29 (A) retirement;
1-30 (B) sickness or accident disability;
1-31 (C) medical or hospitalization expenses in
1-32 connection with sickness or accident disability; or
1-33 (D) expenses related to death;
1-34 (3) a payment made to an individual employee for
1-35 retirement, including an amount an employer pays for insurance or
1-36 an annuity or pays into a fund for the payment of insurance or an
1-37 annuity;
1-38 (4) a payment for sickness or accident disability, or
1-39 medical or hospitalization expenses for sickness or accident
1-40 disability, an employer makes to or for an individual employee
1-41 after the expiration of six calendar months after the last calendar
1-42 month the employee worked for the employer;
1-43 (5) a payment made to or for an employee or the
1-44 employee's beneficiary:
1-45 (A) from or to a trust defined by Section
1-46 401(a), Internal Revenue Code of 1986 (26 U.S.C. Section 401(a)),
1-47 that is exempt from tax under Section 501(a), Internal Revenue Code
1-48 of 1986 (26 U.S.C. Section 501(a)), at the time of payment, unless
1-49 the payment is made to an employee of the trust as remuneration for
1-50 service as an employee and not as a beneficiary of the trust; or
1-51 (B) under or to an annuity plan that, at the
1-52 time of the payment, is a plan described by Section 403(a),
1-53 Internal Revenue Code of 1986 (26 U.S.C. Section 403(a)); [or]
1-54 [(C) under or to a bond purchase plan that, at
1-55 the time of the payment, was a qualified bond purchase plan under
1-56 Section 405(a), Internal Revenue Code of 1954 (former 26 U.S.C.
1-57 Section 405(a));]
1-58 (6) a tax an employer pays, without deduction from the
1-59 remuneration of the employee, that is imposed on the employee under
1-60 Section 3101, Internal Revenue Code of 1986 (26 U.S.C. Section
1-61 3101);
1-62 (7) noncash remuneration paid to an employee for
1-63 service not in the course of the employer's business;
1-64 (8) a payment, except vacation or sick pay, made to an
2-1 employee after the month the employee is 65 years of age, if the
2-2 employee did not work for the employer in the period for which the
2-3 payment is made; or
2-4 (9) the part of remuneration from a single employer
2-5 for services in a calendar year that exceeds the amount applicable
2-6 to the year under Subdivision (1) for which contributions have been
2-7 paid under a state unemployment law.
2-8 SECTION 2. Section 203.202(a), Labor Code, is amended to
2-9 read as follows:
2-10 (a) Money in the special administration fund may be spent in
2-11 accordance with this subtitle and may be used:
2-12 (1) to pay the cost of reimbursing the benefit account
2-13 in the compensation fund for benefits paid to former employees of
2-14 this state that are based on service for this state, and the cost
2-15 of construction and purchase of buildings and land necessary for
2-16 that administration;
2-17 (2) in the administration of Chapters 51, 61, and 62
2-18 [as provided by Section 203.103];
2-19 (3) for payment of interest on advances from the
2-20 federal trust fund;
2-21 (4) as a revolving fund to cover expenditures that are
2-22 necessary and proper under this subtitle and for which federal
2-23 funds have been requested but not received, subject to the charging
2-24 of the expenditures against the federal funds when received; [and]
2-25 (5) to refund a penalty as provided by Section
2-26 203.203; and
2-27 (6) subject to the provisions of Chapter 2107,
2-28 Government Code, to pay persons who contract with the commission to
2-29 collect delinquent unemployment taxes, penalties, and interest owed
2-30 under this subtitle.
2-31 SECTION 3. Section 208.003, Labor Code, is amended to read
2-32 as follows:
2-33 Sec. 208.003. NOTICE TO [GOVERNMENTAL] EMPLOYER. (a) An [A
2-34 governmental] employer may designate in writing to the commission
2-35 an address for mail service.
2-36 (b) If an [a governmental] employer designates a mailing
2-37 address under Subsection (a), mailing of notice of claims,
2-38 determinations, or other decisions to that address constitutes
2-39 notice to the [governmental] employer.
2-40 SECTION 4. Section 208.004(b), Labor Code, is amended to
2-41 read as follows:
2-42 (b) A person who does not mail or otherwise deliver that
2-43 notification to the commission within 14 [12] days after the date
2-44 notice of a claim was mailed to the person by the commission waives
2-45 all rights in connection with the claim, including rights the
2-46 person may have under Subchapter B, Chapter 204, other than rights
2-47 relating to a clerical or machine error as to the amount of the
2-48 person's chargeback or maximum potential chargeback in connection
2-49 with the claim for benefits.
2-50 SECTION 5. Section 212.054(a), Labor Code, is amended to
2-51 read as follows:
2-52 (a) Except as otherwise provided by this subsection, if [If]
2-53 an examiner discovers an error in connection with a determination
2-54 or discovers additional information not previously available, the
2-55 examiner, within the period specified in Section 212.053(1), may
2-56 reconsider and redetermine the determination. An examiner may
2-57 issue a redetermination to correct a clerical or machine error at
2-58 any time during a claimant's benefit year.
2-59 SECTION 6. Section 213.007, Labor Code, is amended to read
2-60 as follows:
2-61 Sec. 213.007. COLLATERAL ESTOPPEL DOCTRINE INAPPLICABLE. A
2-62 finding of fact, conclusion of law, judgment, or final order made
2-63 [regarding a claim for benefits] under this subtitle is not binding
2-64 and may not be used as evidence in an action or proceeding, other
2-65 than an action or proceeding brought under this subtitle, even if
2-66 the action or proceeding is between the same or related parties or
2-67 involves the same facts.
2-68 SECTION 7. Section 213.033, Labor Code, is amended to read
2-69 as follows:
3-1 Sec. 213.033. LIMITATIONS. (a) The commission may not
3-2 begin a civil action in court or make an assessment under this
3-3 subchapter to collect a contribution, a [or] penalty, or interest
3-4 from an employer after the third anniversary after the due date of
3-5 the contribution.
3-6 (b) The following proceedings suspend the running of the
3-7 limitations period prescribed under Subsection (a):
3-8 (1) an administrative proceeding to redetermine the
3-9 liability for a contribution, a penalty, or interest pending before
3-10 the commission; and
3-11 (2) a bankruptcy proceeding begun under Title 11 of
3-12 the United States Code pending before the court.
3-13 (c) After a proceeding described by Subsection (b) is
3-14 concluded, the running of the limitations period prescribed under
3-15 Subsection (a) resumes.
3-16 (d) In the case of a wilful attempt to evade the provisions
3-17 of this subtitle or a commission rule adopted under this subtitle,
3-18 the action or assessment may be begun or made at any time.
3-19 SECTION 8. Section 213.036, Labor Code, is amended to read
3-20 as follows:
3-21 Sec. 213.036. ABSTRACT OF JUDGMENT; ABSTRACT OF ASSESSMENT;
3-22 FEE; RELEASE. (a) The commission shall pay the fee for filing and
3-23 recording an abstract of a judgment or an abstract of an assessment
3-24 against an employer for a contribution, a penalty, or interest by
3-25 warrant drawn by the comptroller to the county clerk of each county
3-26 in which the abstract is recorded.
3-27 (b) The amount of the fee paid under Subsection (a) shall
3-28 be added to the amount due under the judgment or assessment.
3-29 (c) When the liability secured by the lien is paid, the
3-30 commission shall mail a release of the lien to the employer. The
3-31 employer is responsible for filing the release with the appropriate
3-32 county clerk and for paying the county clerk's fee for recording
3-33 the release.
3-34 SECTION 9. Section 213.054, Labor Code, is amended to read
3-35 as follows:
3-36 Sec. 213.054. OFFSET AGAINST STATE WARRANT. Any
3-37 contribution, penalty, interest, or court cost owed by an employer
3-38 [under a final court judgment] under this subtitle is a debt owed
3-39 by the employer to the state under Section 403.055, Government
3-40 Code, only for withholding of a warrant for:
3-41 (1) the refund of taxes, fees, assessments, or other
3-42 deposits required under the law of this state; or
3-43 (2) compensation for goods and services, other than a
3-44 warrant for:
3-45 (A) payment for services performed as an elected
3-46 or appointed employee of this state; or
3-47 (B) reimbursement of expenses incurred in the
3-48 performance of employment as an elected or appointed employee of
3-49 this state.
3-50 SECTION 10. Sections 213.059(a), (e), (g), and (h), Labor
3-51 Code, are amended to read as follows:
3-52 (a) If a person is delinquent in the payment of any amount,
3-53 including contributions, penalties, and interest due under this
3-54 subtitle, the commission may notify personally or by [registered]
3-55 mail any other person who:
3-56 (1) possesses or controls an asset belonging to the
3-57 delinquent person; or
3-58 (2) owes a debt to the delinquent person.
3-59 (e) A notice under this section that attempts to prohibit
3-60 the transfer or disposition of an asset possessed or controlled by
3-61 a bank is [not] effective if [unless] it is delivered or mailed to
3-62 the principal or any branch office of the bank, including any [or
3-63 the] office of the bank at which the deposit is carried or the
3-64 credit or property is held.
3-65 (g) At any time during [the last 45 days of] the 60-day
3-66 period described by Subsection (d), the commission may levy on the
3-67 asset or debt by delivery of a notice of levy. On receipt of the
3-68 levy notice, the person possessing the asset or debt shall transfer
3-69 the asset to the commission or pay to the commission the amount
4-1 owed to the delinquent person.
4-2 (h) A notice delivered under this section is effective:
4-3 (1) at the time of delivery against all property,
4-4 rights to property, credits, and debts involving the delinquent
4-5 person that are not, as of the date of the notice, subject to a
4-6 preexisting lien, attachment, garnishment, or execution issued
4-7 through a judicial process; and
4-8 (2) against all property, rights to property, credits,
4-9 and debts involving the delinquent party that come into the
4-10 possession or control of the person served with the notice within
4-11 the 60-day period described by Subsection (d).
4-12 SECTION 11. This Act takes effect September 1, 1997, and
4-13 applies only to a claim for unemployment compensation benefits that
4-14 is filed with the Texas Workforce Commission on or after that date.
4-15 A claim filed before that date is governed by the law in effect on
4-16 the date that the claim was filed, and the former law is continued
4-17 in effect for that purpose.
4-18 SECTION 12. The importance of this legislation and the
4-19 crowded condition of the calendars in both houses create an
4-20 emergency and an imperative public necessity that the
4-21 constitutional rule requiring bills to be read on three several
4-22 days in each house be suspended, and this rule is hereby suspended.
4-23 * * * * *