H.B. No. 2579
AN ACT
relating to relief for certain employers from penalties and
sanctions under the Texas Unemployment Compensation Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 213, Labor Code, is
amended by adding Section 213.011 to read as follows:
Sec. 213.011. EFFECT OF PREVIOUS EMPLOYMENT DETERMINATION.
(a) Subject to Subsection (c), it is reasonable for an employer to
rely on a court ruling or commission determination that, for the
purposes of this subtitle, service performed by an individual,
including service in interstate commerce, is not employment under
this subtitle if:
(1) the ruling is:
(A) a judicial decision or precedent, including a
published opinion, from a court in this state; or
(B) a commission decision involving the employer
as a party or a subject; and
(2) the ruling or determination has not been reversed
or otherwise invalidated.
(b) The commission shall relieve an employer that
reasonably relies on a ruling or determination described by
Subsection (a) from penalties, interest, or sanctions under this
chapter or Chapter 214 that result from a subsequent ruling or
determination that the service in question is employment. An
employer who receives relief under this subsection is not indebted
to the state for the penalties, interest, or sanctions from which
the employer is relieved and may not be considered delinquent on the
payment of taxes, to the extent of the amount from which the
employer is relieved.
(c) An employer may reasonably rely on a ruling or
determination under Subsection (a) until the earlier of:
(1) the effective date of the subsequent ruling or
determination invalidating the ruling or determination on which the
employer reasonably relied; or
(2) the third anniversary of the due date of a
contribution based on the service in question.
(d) This section applies only if the commission determines
that the nature of the business and the service in question are
substantially unchanged from the time the initial ruling was issued
or the initial determination was made.
SECTION 2. This Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2579 was passed by the House on April
26, 2011, by the following vote: Yeas 148, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2579 was passed by the Senate on May
24, 2011, by the following vote: Yeas 31, Nays 0
.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor