HBA-MPA H.B. 1331 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1331 By: Hardcastle Economic Development 3/9/1999 Introduced BACKGROUND AND PURPOSE Currently, only a certain type of post-termination payment known as wages in lieu of notice disqualifies a claimant from unemployment compensation benefits. Severance pay is another type of post-termination payment often provided by employers when releasing an employee. Unemployment benefits are currently offset by the amount of wages in lieu of notice received. If this was done for severance pay it would make both types of post-termination payments uniform, and would also end the current disincentive for employers to give severance pay. Savings from chargebacks to employers will also eventually lead to lower unemployment taxes for employers. H.B. 1331 allows severance pay to be included in the calculation to determine the amount of unemployment compensation benefits. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 207.049, Labor Code, to add severance pay to the list of forms of remuneration the receipt of which disqualifies an individual from benefits during that benefit period. Creates Subdivision (3) from existing text and makes a nonsubstantive change. SECTION 2.Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.