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A BILL TO BE ENTITLED
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AN ACT
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relating to relief for certain employers from penalties and |
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sanctions under the Texas Unemployment Compensation Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 213, Labor Code, is |
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amended by adding Section 213.011 to read as follows: |
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Sec. 213.011. EFFECT OF PREVIOUS EMPLOYMENT DETERMINATION. |
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(a) Subject to Subsection (c), it is reasonable for an employer to |
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rely on a court ruling or commission determination that, for the |
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purposes of this subtitle, service performed by an individual, |
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including service in interstate commerce, is not employment under |
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this subtitle if: |
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(1) the ruling is: |
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(A) a judicial decision or precedent, including a |
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published opinion, from a court in this state; or |
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(B) a commission decision involving the employer |
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as a party or a subject; and |
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(2) the ruling or determination has not been reversed |
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or otherwise invalidated. |
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(b) The commission shall relieve an employer that |
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reasonably relies on a ruling or determination described by |
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Subsection (a) from penalties, interest, or sanctions under this |
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chapter or Chapter 214 that result from a subsequent ruling or |
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determination that the service in question is employment. An |
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employer who receives relief under this subsection is not indebted |
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to the state for the penalties, interest, or sanctions from which |
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the employer is relieved and may not be considered delinquent on the |
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payment of taxes, to the extent of the amount from which the |
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employer is relieved. |
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(c) An employer may reasonably rely on a ruling or |
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determination under Subsection (a) until the earlier of: |
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(1) the effective date of the subsequent ruling or |
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determination invalidating the ruling or determination on which the |
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employer reasonably relied; or |
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(2) the third anniversary of the due date of a |
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contribution based on the service in question. |
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(d) This section applies only if the commission determines |
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that the nature of the business and the service in question are |
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substantially unchanged from the time the initial ruling was issued |
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or the initial determination was made. |
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SECTION 2. This Act takes effect September 1, 2011. |