By Ellis S.B. No. 1003
75R3762 PB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation and administration of the state
1-3 unemployment compensation system.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 201.082, Labor Code, is amended to read
1-6 as follows:
1-7 Sec. 201.082. EXCEPTIONS TO WAGES. In this subtitle,
1-8 "wages" does not include:
1-9 (1) that part of the remuneration paid by an employer
1-10 to an individual for employment during a calendar year that exceeds
1-11 remuneration to the individual, excluding remuneration under
1-12 another subdivision of this section, by the employer, of [:]
1-13 [(A) $7,000 for a calendar year before 1988;]
1-14 [(B) $8,000 for calendar year 1988; or]
1-15 [(C)] $9,000 [for a calendar year after calendar
1-16 year 1988];
1-17 (2) a payment, including an amount the employer pays
1-18 for insurance or an annuity or pays into a fund for the payment of
1-19 insurance or an annuity, that is made to or for an employee or the
1-20 employee's dependent under a plan the employer established for
1-21 employees generally, or a class of employees, including or
1-22 excluding the employee's dependents, for:
1-23 (A) retirement;
1-24 (B) sickness or accident disability;
2-1 (C) medical or hospitalization expenses in
2-2 connection with sickness or accident disability; or
2-3 (D) expenses related to death;
2-4 (3) a payment made to an individual employee for
2-5 retirement, including an amount an employer pays for insurance or
2-6 an annuity or pays into a fund for the payment of insurance or an
2-7 annuity;
2-8 (4) a payment for sickness or accident disability, or
2-9 medical or hospitalization expenses for sickness or accident
2-10 disability, an employer makes to or for an individual employee
2-11 after the expiration of six calendar months after the last calendar
2-12 month the employee worked for the employer;
2-13 (5) a payment made to or for an employee or the
2-14 employee's beneficiary:
2-15 (A) from or to a trust defined by Section
2-16 401(a), Internal Revenue Code of 1986 (26 U.S.C. Section 401(a)),
2-17 that is exempt from tax under Section 501(a), Internal Revenue Code
2-18 of 1986 (26 U.S.C. Section 501(a)), at the time of payment, unless
2-19 the payment is made to an employee of the trust as remuneration for
2-20 service as an employee and not as a beneficiary of the trust; or
2-21 (B) under or to an annuity plan that, at the
2-22 time of the payment, is a plan described by Section 403(a),
2-23 Internal Revenue Code of 1986 (26 U.S.C. Section 403(a)); [or]
2-24 [(C) under or to a bond purchase plan that, at
2-25 the time of the payment, was a qualified bond purchase plan under
2-26 Section 405(a), Internal Revenue Code of 1954 (former 26 U.S.C.
2-27 Section 405(a));]
3-1 (6) a tax an employer pays, without deduction from the
3-2 remuneration of the employee, that is imposed on the employee under
3-3 Section 3101, Internal Revenue Code of 1986 (26 U.S.C. Section
3-4 3101);
3-5 (7) noncash remuneration paid to an employee for
3-6 service not in the course of the employer's business;
3-7 (8) a payment, except vacation or sick pay, made to an
3-8 employee after the month the employee is 65 years of age, if the
3-9 employee did not work for the employer in the period for which the
3-10 payment is made; or
3-11 (9) the part of remuneration from a single employer
3-12 for services in a calendar year that exceeds the amount applicable
3-13 to the year under Subdivision (1) for which contributions have been
3-14 paid under a state unemployment law.
3-15 SECTION 2. Section 203.202(a), Labor Code, is amended to
3-16 read as follows:
3-17 (a) Money in the special administration fund may be spent in
3-18 accordance with this subtitle and may be used:
3-19 (1) to pay the cost of reimbursing the benefit account
3-20 in the compensation fund for benefits paid to former employees of
3-21 this state that are based on service for this state, and the cost
3-22 of construction and purchase of buildings and land necessary for
3-23 that administration;
3-24 (2) in the administration of Chapters 51, 61, and 62
3-25 [as provided by Section 203.103];
3-26 (3) for payment of interest on advances from the
3-27 federal trust fund;
4-1 (4) as a revolving fund to cover expenditures that are
4-2 necessary and proper under this subtitle and for which federal
4-3 funds have been requested but not received, subject to the charging
4-4 of the expenditures against the federal funds when received; [and]
4-5 (5) to refund a penalty as provided by Section
4-6 203.203; and
4-7 (6) to pay persons who contract with the commission to
4-8 collect delinquent unemployment taxes, penalties, and interest owed
4-9 under this subtitle.
4-10 SECTION 3. Section 208.003, Labor Code, is amended to read
4-11 as follows:
4-12 Sec. 208.003. NOTICE TO [GOVERNMENTAL] EMPLOYER. (a) An [A
4-13 governmental] employer may designate in writing to the commission
4-14 an address for mail service.
4-15 (b) If an [a governmental] employer designates a mailing
4-16 address under Subsection (a), mailing of notice of claims,
4-17 determinations, or other decisions to that address constitutes
4-18 notice to the [governmental] employer.
4-19 SECTION 4. Section 208.004(b), Labor Code, is amended to
4-20 read as follows:
4-21 (b) A person who does not mail or otherwise deliver that
4-22 notification to the commission within 14 [12] days after the date
4-23 notice of a claim was mailed to the person by the commission waives
4-24 all rights in connection with the claim, including rights the
4-25 person may have under Subchapter B, Chapter 204, other than rights
4-26 relating to a clerical or machine error as to the amount of the
4-27 person's chargeback or maximum potential chargeback in connection
5-1 with the claim for benefits.
5-2 SECTION 5. Section 212.054(a), Labor Code, is amended to
5-3 read as follows:
5-4 (a) Except as otherwise provided by this subsection, if [If]
5-5 an examiner discovers an error in connection with a determination
5-6 or discovers additional information not previously available, the
5-7 examiner, within the period specified in Section 212.053(1), may
5-8 reconsider and redetermine the determination. An examiner may issue
5-9 a redetermination to correct a clerical or machine error at any
5-10 time during a claimant's benefit year.
5-11 SECTION 6. Section 213.007, Labor Code, is amended to read
5-12 as follows:
5-13 Sec. 213.007. COLLATERAL ESTOPPEL DOCTRINE INAPPLICABLE. A
5-14 finding of fact, conclusion of law, judgment, or final order made
5-15 [regarding a claim for benefits] under this subtitle is not binding
5-16 and may not be used as evidence in an action or proceeding, other
5-17 than an action or proceeding brought under this subtitle, even if
5-18 the action or proceeding is between the same or related parties or
5-19 involves the same facts.
5-20 SECTION 7. Section 213.033, Labor Code, is amended to read
5-21 as follows:
5-22 Sec. 213.033. LIMITATIONS. (a) The commission may not
5-23 begin a civil action in court or make an assessment under this
5-24 subchapter to collect a contribution, a [or] penalty, or interest
5-25 from an employer after the third anniversary after the due date of
5-26 the contribution.
5-27 (b) The following proceedings suspend the running of the
6-1 limitations period prescribed under Subsection (a):
6-2 (1) an administrative proceeding to redetermine the
6-3 liability for a contribution, a penalty, or interest pending before
6-4 the commission; and
6-5 (2) a bankruptcy proceeding begun under Title 11 of
6-6 the United States Code pending before the court.
6-7 (c) After a proceeding described by Subsection (b) is
6-8 concluded, the running of the limitations period prescribed under
6-9 Subsection (a) resumes.
6-10 (d) In the case of a wilful attempt to evade the provisions
6-11 of this subtitle or a commission rule adopted under this subtitle,
6-12 the action or assessment may be begun or made at any time.
6-13 SECTION 8. Section 213.036, Labor Code, is amended to read
6-14 as follows:
6-15 Sec. 213.036. ABSTRACT OF JUDGMENT; ABSTRACT OF ASSESSMENT;
6-16 FEE; RELEASE. (a) The commission shall pay the fee for filing
6-17 and recording an abstract of a judgment or an abstract of an
6-18 assessment against an employer for a contribution, a penalty, or
6-19 interest by warrant drawn by the comptroller to the county clerk of
6-20 each county in which the abstract is recorded.
6-21 (b) The amount of the fee paid under Subsection (a) shall
6-22 be added to the amount due under the judgment or assessment.
6-23 (c) When the liability secured by the lien is paid, the
6-24 commission shall mail a release of the lien to the employer. The
6-25 employer is responsible for filing the release with the appropriate
6-26 county clerk and for paying the county clerk's fee for recording
6-27 the release.
7-1 SECTION 9. Section 213.054, Labor Code, is amended to read
7-2 as follows:
7-3 Sec. 213.054. OFFSET AGAINST STATE WARRANT. Any
7-4 contribution, penalty, interest, or court cost owed by an employer
7-5 [under a final court judgment] under this subtitle is a debt owed
7-6 by the employer to the state under Section 403.055, Government
7-7 Code, only for withholding of a warrant for:
7-8 (1) the refund of taxes, fees, assessments, or other
7-9 deposits required under the law of this state; or
7-10 (2) compensation for goods and services, other than a
7-11 warrant for:
7-12 (A) payment for services performed as an elected
7-13 or appointed employee of this state; or
7-14 (B) reimbursement of expenses incurred in the
7-15 performance of employment as an elected or appointed employee of
7-16 this state.
7-17 SECTION 10. Sections 213.059(a), (e), (g), and (h), Labor
7-18 Code, are amended to read as follows:
7-19 (a) If a person is delinquent in the payment of any amount,
7-20 including contributions, penalties, and interest due under this
7-21 subtitle, the commission may notify personally or by [registered]
7-22 mail any other person who:
7-23 (1) possesses or controls an asset belonging to the
7-24 delinquent person; or
7-25 (2) owes a debt to the delinquent person.
7-26 (e) A notice under this section that attempts to prohibit
7-27 the transfer or disposition of an asset possessed or controlled by
8-1 a bank is [not] effective if [unless] it is delivered or mailed to
8-2 the principal or any branch office of the bank, including any [or
8-3 the] office of the bank at which the deposit is carried or the
8-4 credit or property is held.
8-5 (g) At any time during [the last 45 days of] the 60-day
8-6 period described by Subsection (d), the commission may levy on the
8-7 asset or debt by delivery of a notice of levy. On receipt of the
8-8 levy notice, the person possessing the asset or debt shall transfer
8-9 the asset to the commission or pay to the commission the amount
8-10 owed to the delinquent person.
8-11 (h) A notice delivered under this section is effective:
8-12 (1) at the time of delivery against all property,
8-13 rights to property, credits, and debts involving the delinquent
8-14 person that are not, as of the date of the notice, subject to a
8-15 preexisting lien, attachment, garnishment, or execution issued
8-16 through a judicial process; and
8-17 (2) against all property, rights to property, credits,
8-18 and debts involving the delinquent party that come into the
8-19 possession or control of the person served with the notice within
8-20 the 60-day period described by Subsection (d).
8-21 SECTION 11. This Act takes effect September 1, 1997, and
8-22 applies only to a claim for unemployment compensation benefits that
8-23 is filed with the Texas Workforce Commission on or after that date.
8-24 A claim filed before that date is governed by the law in effect on
8-25 the date that the claim was filed, and the former law is continued
8-26 in effect for that purpose.
8-27 SECTION 12. The importance of this legislation and the
9-1 crowded condition of the calendars in both houses create an
9-2 emergency and an imperative public necessity that the
9-3 constitutional rule requiring bills to be read on three several
9-4 days in each house be suspended, and this rule is hereby suspended.