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.