By Yarbrough                                          H.B. No. 1695
         77R6874 PB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to wages used to compute eligibility for unemployment
 1-3     compensation benefits.
 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 as
 1-6     follows:
 1-7           Sec. 201.082.  EXCEPTIONS TO WAGES. In this subtitle, "wages"
 1-8     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)  $9,000, for a calendar year before calendar
1-14     year 2002;
1-15                       (B)  $10,000, for calendar year 2002;
1-16                       (C)  $11,000, for calendar year 2003;
1-17                       (D)  $12,000, for calendar year 2004;
1-18                       (E)  $13,000, for calendar year 2005;
1-19                       (F)  $14,000, for calendar year 2006; and
1-20                       (G)  $15,000, for a calendar year after calendar
1-21     year 2006;
1-22                 (2)  a payment, including an amount the employer pays
1-23     for insurance or an annuity or pays into a fund for the payment of
1-24     insurance or an annuity, that is made to or for an employee or the
 2-1     employee's dependent under a plan the employer established for
 2-2     employees generally, or a class of employees, including or
 2-3     excluding the employee's dependents, for:
 2-4                       (A)  retirement;
 2-5                       (B)  sickness or accident disability;
 2-6                       (C)  medical or hospitalization expenses in
 2-7     connection with sickness or accident disability; or
 2-8                       (D)  expenses related to death;
 2-9                 (3)  a payment made to an individual employee for
2-10     retirement, including an amount an employer pays for insurance or
2-11     an annuity or pays into a fund for the payment of insurance or an
2-12     annuity;
2-13                 (4)  a payment for sickness or accident disability, or
2-14     medical or hospitalization expenses for sickness or accident
2-15     disability, an employer makes to or for an individual employee
2-16     after the expiration of six calendar months after the last calendar
2-17     month the employee worked for the employer;
2-18                 (5)  a payment made to or for an employee or the
2-19     employee's beneficiary:
2-20                       (A)  from or to a trust defined by Section
2-21     401(a), Internal Revenue Code of 1986 (26 U.S.C. Section 401(a)),
2-22     that is exempt from tax under Section 501(a), Internal Revenue Code
2-23     of 1986 (26 U.S.C. Section 501(a)), at the time of payment, unless
2-24     the payment is made to an employee of the trust as remuneration for
2-25     service as an employee and not as a beneficiary of the trust; or
2-26                       (B)  under or to an annuity plan that, at the
2-27     time of the payment, is a plan described by Section 403(a),
 3-1     Internal Revenue Code of 1986 (26 U.S.C. Section 403(a));
 3-2                 (6)  a tax an employer pays, without deduction from the
 3-3     remuneration of the employee, that is imposed on the employee under
 3-4     Section 3101, Internal Revenue Code of 1986 (26 U.S.C. Section
 3-5     3101);
 3-6                 (7)  noncash remuneration paid to an employee for
 3-7     service not in the course of the employer's business;
 3-8                 (8)  a payment, except vacation or sick pay, made to an
 3-9     employee after the month the employee is 65 years of age, if the
3-10     employee did not work for the employer in the period for which the
3-11     payment is made; or
3-12                 (9)  the part of remuneration from a single employer
3-13     for services in a calendar year that exceeds the amount applicable
3-14     to the year under Subdivision (1) for which contributions have been
3-15     paid under a state unemployment law.      
3-16           SECTION 2. This Act takes effect September 1, 2001.