HBA-EDN, SEP H.B. 567 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 567
By: Deshotel
Economic Development
3/2/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, unemployment benefits are calculated using a fixed base
year and the average weekly wage of manufacturing production workers.  The
current process of computing unemployment benefits was enacted over twenty
years ago and has become outdated in an economy which is no longer based on
manufacturing jobs.  House Bill 567 modifies the procedures for the
computation of unemployment benefits.        

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 567 amends the Labor Code to modify the method of computation of
the maximum and minimum benefit amounts for total unemployment under the
unemployment compensation system.  The bill provides that the maximum
weekly benefit amount for an eligible individual is 52 percent of the
average weekly wage in covered employment and the minimum weekly benefit
amount is seven percent of the average weekly wage in covered employment.
The bill requires the Texas Workforce Commission (commission) to determine
the average weekly wage in covered employment and to compute the maximum
and minimum weekly benefit amount not later than October 1 of each year by
using the preceding quarterly report on employment, wages, and
contributions prepared by the commission.  If the benefit amount is not a
multiple of one, the commission is required to increase the amount to the
next multiple of $1. 
 
EFFECTIVE DATE

September 1, 2001.  The Act applies beginning October 1, 2001.