83R9201 MAW-F By: Deuell S.B. No. 1537 A BILL TO BE ENTITLED AN ACT relating to certain required notices under the Texas Unemployment Compensation Act, including employer liability arising from failure to provide the notice. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 205.013, Labor Code, is amended by adding Subsection (d) to read as follows: (d) If a reimbursing employer pays a reimbursement to the commission for benefits paid to a claimant that are not in accordance with the final determination or decision under this subtitle, the employer is not entitled to a refund of, or credit for, the amount paid by the employer to the commission unless the employer has complied with the requirements of Section 208.004 with respect to the claimant. SECTION 2. Section 208.004, Labor Code, is amended by adding Subsections (a-1), (c), (d), (e), and (f) to read as follows: (a-1) A notification provided by a person under Subsection (a), including an initial response to a notice mailed to the person under Section 208.002, must include sufficient factual information to allow the commission to make a determination regarding the claimant's eligibility for benefits under this subtitle. (c) Notwithstanding Subchapter B, Chapter 204, benefits paid to a claimant, including benefits paid to a claimant that are not in accordance with the final determination or decision under this subtitle, shall be charged to the account of a person if: (1) the person, or the person's agent, without good cause, fails to provide adequate notification under this section within the time required by Subsection (b); and (2) the commission determines that the person, or the person's agent, has failed to provide timely and adequate notification under this section on at least two prior occasions. (d) For purposes of Subsection (c), a notification is not adequate if the notification merely alleges that a claimant is not eligible for benefits without providing sufficient factual information, other than a general statement of the law, to support the allegation. (e) For purposes of Subsection (c), good cause is established only by showing that a person, or the person's agent, was prevented from complying with this section due to compelling circumstances that were beyond the person's control. (f) The commission may adopt rules as necessary to implement this section. SECTION 3. Section 212.005, Labor Code, is amended to read as follows: Sec. 212.005. CHARGEBACK ON REVERSAL OF DETERMINATION OR DECISION ALLOWING BENEFITS PROHIBITED; EXCEPTION. (a) Except as provided by Subsection (b), a [A] chargeback may not be made to an employer's account because of payments having been made under a determination or decision to the claimant for any benefit period with regard to which the claimant is finally denied benefits by a modification or reversal of the determination or decision. (b) A chargeback shall be made to an employer's account for benefits paid to a claimant that are not in accordance with the final determination or decision under this subtitle if the benefits were paid due to the failure of the employer, or the employer's agents, to comply with Section 208.004. SECTION 4. The change in law made by this Act applies only to a claim for unemployment compensation benefits filed with the Texas Workforce Commission on or after the effective date of this Act. A claim filed before the effective date of this Act is governed by the law in effect on the date the claim was filed, and the former law is continued in effect for that purpose. SECTION 5. This Act takes effect September 1, 2013.