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.