HBA-NLM H.B. 1597 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1597
By: Deshotel
Economic Development
3/11/1999
Introduced

BACKGROUND AND PURPOSE 

Currently, unemployment benefits are calculated based on the average weekly
wage for manufacturing production workers during a fixed year. Because
today's economy is based increasingly on information and human services
jobs, the average weekly wage for those jobs is often different than that
for manufacturing employment;  the existing average weekly wage formula may
no longer adequately compensate many workers. 

 H.B. 1597 provides that the computed maximum weekly benefit amount is 52
percent of the average weekly wage in covered employment in this state and
the computed minimum weekly benefit amount is seven percent of the average
weekly wage in covered employment in this state.  This bill also requires
the Texas Workforce Commission (commission) to determine the average weekly
wage in covered employment and compute the maximum and minimum weekly
benefit amount by October 1 of each year by using the preceding quarterly
report on employment, wages, and contributions prepared by the commission
as required by federal  law. 

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 207.002, Labor Code, as follows:  

(a) Prohibits the rate of benefits under this section from being more than
the computed maximum weekly benefit amount, rather than $84, or less than
the computed minimum weekly benefit amount, rather than $15.   

(b) Provides that the computed maximum weekly benefit amount is 52 percent
of the average weekly wage in covered employment in this state.  Provides
that the computed minimum weekly benefit amount is seven percent of the
average weekly wage in covered employment in this state.  Deletes existing
text regarding the average weekly wage. 

(c) Requires the Texas Workforce Commission (commission) to determine the
average weekly wage in covered employment and compute the maximum and
minimum weekly benefit amount by October 1 of each year by using the
preceding quarterly report on employment, wages, and contributions prepared
by the commission as required by federal law. Requires  the commission to
increase the benefit amount to the next multiple of $1 if a  benefit amount
computed under this subsection is not a multiple of $1. Deletes existing
text regarding the average weekly wage. Makes a nonsubstantive change. 

(d)  Provides that an increase in maximum and minimum benefit amounts under
this section takes effect on October 1.  Deletes reference to the
publication of  "The Average Weekly Wage" report. 

SECTION 2.  Effective date: September 1, 1999.
                       Makes application of this Act prospective.

SECTION 3.  Emergency clause.