HBA-TYH H.B. 3436 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3436
By: Isett
Economic Development
4/12/1999
Introduced



BACKGROUND AND PURPOSE 

According to Section 204.021, Labor Code, when an individual becomes
unemployed, unemployment benefits are charged to the accounts of each
employer for whom the employee worked during the claimed base period.  This
includes businesses who still employ the claimant on a periodic basis, so
businesses are sometimes charged for unemployment benefits when individuals
still remain in their employment.   

For example, if an individual holding a full-time job and a part-time
periodic job is terminated from the full-time job and the individual claims
unemployment benefits, then both the full-time and the part-time periodic
employers would be charged for the benefits, even though the claimant has
the part-time periodic job and still receives periodic paychecks from that
business. 

H.B. 3436 prevents a business from being charged for unemployment benefits
when an employee remains in its employment, even if it is periodic
employment. 

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 204.021, Labor Code, to require the amount of
benefits paid to a claimant for a benefit year to be charged to the account
of each employer of the claimant for whom the claimant worked, rather than
the accounts of each of the claimant's employers, during the claimant's
base period.  Prohibits benefits from being charged to the account of an
employer for a claimant who remains in that employer's employment.  Makes a
conforming change. 

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

SECTION 3.  Emergency clause.