SRC-MWN C.S.H.B. 1103 77(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 1103
77R14535 PB-DBy: Yarbrough (Carona)
Business & Commerce
5/1/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Current law authorizes a notice of assessment to be used as a method of
debt collection under the Texas Unemployment Compensation Act. As a result
of the 1993 recodification of the Labor Code, not all sections of the code
reflect consistent language. C.S.H.B.1103 specifies that the Texas
Workforce Commission is authorized to bring an action against a successor
employer for the collection of a contribution, a penalty, or interest
incurred by a predecessor employer. C.S.H.B. 1103 also provides for
additional interest on a judgment or final assessment for past due
contributions.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 204.001, Labor Code, as follows:

 Sec. 204.001. DEFINITION. Redefines "manual."

SECTION 2. Amends Section 204.086(b), Labor Code, to authorize the Texas
Workforce Commission (commission) to bring an action under Chapter 213 for
the collection of a contribution, a penalty, or interest as though the
contribution, penalty, or interest had been incurred by the successor
employer. Makes a nonsubstantive change. 

SECTION 3. Amends Section 213.025, Labor Code, as follows:

Sec. 213.025. New heading: ADDITIONAL INTEREST ON JUDGMENT OR FINAL
ASSESSMENT FOR PAST DUE CONTRIBUTION. Provides that for a judgment or final
assessment that grants recovery of the amount of a contribution and the
amount of interest computed at the maximum rate permitted under Section
213.021(a), the part of the judgment or final assessment for the amount of
the contribution earns additional interest at the rate of one percent for
each month or part of a month it remains unpaid. 
 
SECTION 4. Amends Section 213.032(e), Labor Code, to provide that an
assessment described by this subsection is a final assessment. 

SECTION 5. Amends Section s 213.033(b) and (c), Labor Code, to provide that
certain actions, rather than proceedings, suspend the running of the
limitations period prescribed under Subsection (a). 

SECTION 6. Amends Section 213.051(a), Labor Code, to make a conforming
change. 

SECTION 7. (a) Effective date: September 1, 2001.

(b) Makes application of the amendments Sections 213.025 and 213.051, Labor
Code, prospective. 
 
  (c) Makes application of Section 204.001, Labor Code, as amended,
prospective. 


SUMMARY OF COMMITTEE CHANGES

SECTION 1. Amends As Filed S.B. 1103 by adding new proposed Section
204.001, Labor Code. 
(DEFINITION)

SECTION 2. Renumbers previously proposed SECTION 1 as SECTION 2.

Adds SECTIONS 3 through 6.

SECTION 7. New effective date and prospective clause.