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.