By Ellis S.B. No. 1005
75R2988 PB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to eligibility for and payment of unemployment
1-3 compensation benefits.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 204.022(a), Labor Code, is amended to
1-6 read as follows:
1-7 (a) Benefits computed on benefit wage credits of an employee
1-8 or former employee may not be charged to the account of an employer
1-9 if the employee's last separation from the employer's employment
1-10 before the employee's benefit year:
1-11 (1) was required by a federal statute;
1-12 (2) was required by a statute of this state or an
1-13 ordinance of a municipality of this state;
1-14 (3) would have disqualified the employee under Section
1-15 207.044, 207.045, 207.051, or 207.053 if the employment had been
1-16 the employee's last work;
1-17 (4) imposes a disqualification under Section 207.044,
1-18 207.045, 207.051, or 207.053;
1-19 (5) was caused by a medically verifiable illness of
1-20 the employee or the employee's minor child;
1-21 (6) was based on a natural disaster that results in a
1-22 disaster declaration by the president of the United States under
1-23 the Robert T. Stafford Disaster Relief and Emergency Assistance Act
1-24 (42 U.S.C. Section 5121 et seq.), if the employee would have been
2-1 entitled to unemployment assistance benefits under Section 410 of
2-2 that act (42 U.S.C. Section 5177) had the employee not received
2-3 state unemployment compensation benefits;
2-4 (7) was caused by a natural disaster, fire, flood, or
2-5 explosion that causes employees to be separated from one employer's
2-6 employment; or
2-7 (8) resulted from the employee's resigning from
2-8 partial employment to accept other employment that the employee
2-9 reasonably believed would increase the employee's weekly wage.
2-10 SECTION 2. Section 207.051, Labor Code, is amended to read
2-11 as follows:
2-12 Sec. 207.051. SALE OF BUSINESS. (a) An individual is
2-13 disqualified for benefits if the individual left the individual's
2-14 last work because of [after] the sale of:
2-15 (1) a corporation and the individual was [is]:
2-16 (A) an officer of the corporation;
2-17 (B) a majority or controlling shareholder in the
2-18 corporation; and
2-19 (C) involved in the sale of the corporation;
2-20 (2) a limited or general partnership and the
2-21 individual was [is] a limited or general partner who was [is]
2-22 involved in the sale of the partnership; or
2-23 (3) a sole proprietorship and the individual was [is]
2-24 the proprietor who sold [sells] the business.
2-25 (b) The disqualification under this section continues until
2-26 the individual has returned to employment and:
2-27 (1) worked for six weeks; or
3-1 (2) earned wages equal to six times the individual's
3-2 benefit amount [is effective for the benefit periods occurring
3-3 during the period beginning on the date of the sale of the business
3-4 and ending on the date the individual is employed and eligible for
3-5 benefits computed on benefit wage credits received through the new
3-6 employment].
3-7 SECTION 3. Chapter 207, Labor Code, is amended by adding
3-8 Subchapter G to read as follows:
3-9 SUBCHAPTER G. WITHHOLDING FROM UNEMPLOYMENT BENEFITS
3-10 FOR UNCOLLECTED OVERISSUANCES OF FOOD STAMPS
3-11 Section 207.111. DEFINITIONS. In this subchapter:
3-12 (1) "State agency" has the meaning assigned by Section
3-13 3(n), Food Stamp Act of 1977 (7 U.S.C. Section 2012(n)).
3-14 (2) "Uncollected overissuance" has the meaning
3-15 assigned by Section 13(c)(1), Food Stamp Act of 1977 (7 U.S.C.
3-16 Section 2022(c)(1)).
3-17 (3) "Unemployment benefits" means benefits payable
3-18 under this subtitle and any other amounts payable by the commission
3-19 under an agreement entered into under any federal law providing for
3-20 compensation, assistance, or allowances with respect to
3-21 unemployment.
3-22 Sec. 207.112. APPLICATION. This subchapter applies only if
3-23 arrangements have been made for reimbursement by the state agency
3-24 for the administrative costs incurred by the commission under this
3-25 subchapter that are attributable to the repayment of uncollected
3-26 overissuances to the state agency.
3-27 Sec. 207.113. REQUIRED DISCLOSURE; NOTICE TO FOOD STAMP
4-1 AGENCY. (a) An individual who files a new claim for unemployment
4-2 benefits shall disclose, at the time of filing of that claim,
4-3 whether the individual owes an uncollected overissuance.
4-4 (b) If an individual who discloses under Subsection (a) that
4-5 the individual does owe an uncollected overissuance is found
4-6 eligible for unemployment benefits, the commission shall notify
4-7 the state agency of the identity of that individual.
4-8 Sec. 207.114. WITHHOLDING. (a) The commission shall deduct
4-9 and withhold from unemployment benefits payable to an individual
4-10 who owes an uncollected overissuance:
4-11 (1) the amount the individual specifies to the
4-12 commission to be deducted and withheld under this section;
4-13 (2) the amount determined under an agreement submitted
4-14 to the state agency under Section 13(c)(3)(A), Food Stamp Act of
4-15 1977 (7 U.S.C. Section 2022(c)(3)(A)); or
4-16 (3) any amount otherwise required to be deducted and
4-17 withheld from unemployment benefits under Section 13(c)(3)(B), Food
4-18 Stamp Act of 1977 (7 U.S.C. Section 2022(c)(3)(B)).
4-19 (b) The commission shall pay any amount deducted and
4-20 withheld under this section to the state agency in this state.
4-21 (c) An amount deducted and withheld under this section shall
4-22 be treated for all purposes as if it were paid to the individual as
4-23 unemployment benefits and submitted by that individual to the state
4-24 agency as repayment of the individual's uncollected overissuance.
4-25 SECTION 4. This Act takes effect September 1, 1997, and
4-26 applies only to a claim for unemployment compensation benefits that
4-27 is filed with the Texas Workforce Commission on or after that date.
5-1 A claim filed before that date is governed by the law in effect on
5-2 the date that the claim was filed, and the former law is continued
5-3 in effect for that purpose.
5-4 SECTION 5. The importance of this legislation and the
5-5 crowded condition of the calendars in both houses create an
5-6 emergency and an imperative public necessity that the
5-7 constitutional rule requiring bills to be read on three several
5-8 days in each house be suspended, and this rule is hereby suspended.