HBA-EDN, MPM H.B. 134 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 134
By: Deshotel
Economic Development
3/2/2001
Introduced



BACKGROUND AND PURPOSE 

In the late 1970's, the Federal Unemployment Tax Act mandated that states
amend their unemployment compensation laws to disqualify recipients of
certain periodic payments including pensions and social security benefits,
and Texas amended its laws to conform to this requirement.  In 1995, Texas
amended its laws to remove the disqualification for the receipt of social
security benefits.  Federal law has been subsequently  interpreted to
provide the states discretion in applying disqualifications if the
pensioner had contributed to the pension.  House Bill 134 removes the
disqualification for unemployment benefits for an individual who receives a
pension to which the individual has contributed. 

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. 

ANALYSIS

House Bill 134 amends the Labor Code to expand the conditions under which
the Texas Employment Commission is prohibited from reducing weekly
unemployment benefits for an individual receiving periodic pension or
annuity payments to include cases in which the individual has made a
contribution toward the pension or annuity payment. 

EFFECTIVE DATE

September 1, 2001.