HBA-MPM C.S.H.B. 255 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 255 By: Pitts Economic Development 4/25/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Current law authorizes former employees of reimbursing employers to collect unemployment benefits, even if the employees are subsequently convicted of certain types of misconduct with their former employers. C.S.H.B. 255 disqualifies an individual for unemployment benefits if convicted for a criminal offense connected with the individual's last work. This bill also requires such individuals determined to be ineligible for benefits to refund the amount of compensation paid. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Workforce Commission in SECTION 1 (Section 212.007, Labor Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 212, Labor Code, by adding Section 212.007, as follows: Sec. 212.007. SUBSEQUENT DISALLOWANCE OF CERTAIN BENEFITS. (a) Authorizes a reimbursing employer who determines, after the date on which an individual is separated from the employer's employment, that the individual engaged in conduct that is the basis of a criminal prosecution and that would have constituted misconduct under Section 201.012 (Definition of Misconduct), Labor Code, to file a statement of potential disallowance with the Texas Workforce Commission (commission). Provides that the statement must include certain information with respect to the individual and employer. (b) Requires the commission to maintain a list of individuals for whom a statement is filed under Subsection (a) and, upon receipt of a claim for benefits by the individual, to provide notice of the claim to the employer who filed the statement of potential disallowance if the claimant is determined to be entitled to benefits and wages paid by the employer to the claimant are credited as benefit wage credit. (c) Requires an employer receiving notice from the commission under Subsection (b) to notify the commission no later than the 90th day after the claimant is finally convicted or placed on community supervision, including deferred adjudication community supervision, of a criminal offense connected with the claimant's work for the employer. Requires the employer to notify the commission no later than the 90th day after the date the employer receives the notice, if the claimant was finally convicted or placed on community supervision before the date on which the employer received the notice. (d) Requires the commission, on receipt of a notice from an employer under Subsection (c), to disallow as wage credits the wages the claimant was paid by the employer. Requires the commission to determine the amount of benefits paid to the claimant based on the disallowed wage credits and issue an order for reimbursement. Requires the commission to mail the order for reimbursement to the claimant's last known address as shown by the commission's records and a copy of the order to the employer. (e) Sets forth that a claimant who received benefits and is subsequently determined to be subject to an order for reimbursement under Subsection (d) is not entitled to the amount specified in the order. Requires the claimant to refund the amount in the order as prescribed by rules adopted by the commission. Authorizes the commission, by rule, to allow a repayment to be made in periodic payments. (f) Provides that benefits to be refunded are collectible in the manner provided by Sections 213.031 (Collection Required; Methods), 213.032 (Service of Notice of Assessment; Contents as Prima Facie Evidence; Judicial Review; Effect), 213.033 (Limitations), and 213.035 (Costs) for the collection of past due contributions. (g) Authorizes an employer who receives a copy of an order for reimbursement to apply under Subchapter E (Adjustment or Refund for Employer's Overpayment), Chapter 213 (Enforcement of Texas Unemployment Compensation Act), Labor Code, for an adjustment or refund. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. differs from the original bill as follows: The substitute deletes SECTION 1 of the original, which added proposed Section 207.0445 (Disqualification for Subsequent Conviction) to Subchapter C, Chapter 207, Labor Code, with the exception of Subsections (c) and (d), which are redesignated to the substitute (see below). The substitute replaces the deleted text in SECTION 1, by adding Section 212.007 to Subchapter A, Chapter 212, Labor Code. Please see the Section-by-Section Analysis in this document for the new text set forth in this section. Proposed Sections 207.0445(c) and (d) of the original bill are redesignated to Sections 212.007(e) and (f) of the substitute. The substitute makes changes within Subsection (e) as follows: (e) Sets forth that a claimant who received benefits and is subsequently determined to be subject to an order for reimbursement under Subsection (d), rather than determined to be ineligible under this section, is not entitled to retain the benefits paid. Requires the claimant to refund the amount paid in the order, rather than in the manner, as prescribed by rules adopted by the commission.