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.