76R13116 JMM-D By Pitts H.B. No. 255 Substitute the following for H.B. No. 255: By Yarbrough C.S.H.B. No. 255 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the subsequent disallowance of certain unemployment 1-3 compensation benefits. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 212, Labor Code, is amended 1-6 by adding Section 212.007 to read as follows: 1-7 Sec. 212.007. SUBSEQUENT DISALLOWANCE OF CERTAIN BENEFITS. 1-8 (a) A reimbursing employer who determines, after the date on which 1-9 an individual is separated from the employer's employment, that the 1-10 individual engaged in conduct that is the basis of a criminal 1-11 prosecution and that would have constituted misconduct under 1-12 Section 201.012 may file a statement of potential disallowance with 1-13 the commission. The statement must include: 1-14 (1) the name and social security number of the 1-15 individual; 1-16 (2) the name and address of the employer; 1-17 (3) the basis for the employer's determination under 1-18 this subsection; and 1-19 (4) any other information required by the 1-20 commissioner. 1-21 (b) The commission shall maintain a list of individuals for 1-22 whom a statement is filed under Subsection (a). On receipt of a 1-23 claim for benefits by the individual, the commission shall provide 1-24 notice of the claim to the employer who filed the statement of 2-1 potential disallowance if: 2-2 (1) the claimant is determined to be entitled to 2-3 benefits; and 2-4 (2) wages paid by the employer to the claimant are 2-5 credited as benefit wage credits. 2-6 (c) An employer who receives notice from the commission 2-7 under Subsection (b) shall notify the commission not later than the 2-8 90th day after the date the claimant is finally convicted or placed 2-9 on community supervision, including deferred adjudication community 2-10 supervision, of a criminal offense connected with the claimant's 2-11 work for the employer. If the claimant was finally convicted or 2-12 placed on community supervision before the date on which the 2-13 employer received the notice under Subsection (b), the employer 2-14 shall notify the commission not later than the 90th day after the 2-15 date the employer receives the notice. 2-16 (d) On receipt of notice from an employer under Subsection 2-17 (c), the commission shall disallow as wage credits the wages the 2-18 claimant was paid by the employer. The commission shall determine 2-19 the amount of benefits paid to the claimant based on the disallowed 2-20 wage credits and issue an order for reimbursement. The commission 2-21 shall mail the order for reimbursement to the claimant's last known 2-22 address as shown by the commission's records and a copy of the 2-23 order to the employer. 2-24 (e) A claimant who received benefits and who is subsequently 2-25 determined to be subject to an order for reimbursement under 2-26 Subsection (d) is not entitled to retain the amount specified in 2-27 the order. The claimant shall pay the amount in the order to the 3-1 compensation fund in the manner prescribed by rules adopted by the 3-2 commission. The commission by rule may allow a repayment under 3-3 this subsection to be made in periodic payments. 3-4 (f) Benefits required to be repaid under this section are 3-5 collectible in the manner provided by Sections 213.031, 213.032, 3-6 213.033, and 213.035 for the collection of past due contributions. 3-7 (g) An employer who receives a copy of an order for 3-8 reimbursement may apply under Subchapter E, Chapter 213, for an 3-9 adjustment or refund. 3-10 SECTION 2. (a) This Act takes effect September 1, 1999. 3-11 (b) The change in law made by this Act applies to 3-12 eligibility for unemployment compensation benefits based on an 3-13 unemployment compensation claim that is filed with the Texas 3-14 Workforce Commission on or after the effective date of this Act. A 3-15 claim filed before the effective date of this Act is governed by 3-16 the law in effect on the date the claim was filed, and the former 3-17 law is continued in effect for that purpose. 3-18 SECTION 3. The importance of this legislation and the 3-19 crowded condition of the calendars in both houses create an 3-20 emergency and an imperative public necessity that the 3-21 constitutional rule requiring bills to be read on three several 3-22 days in each house be suspended, and this rule is hereby suspended.