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


Office of House Bill AnalysisC.S.H.B. 567
By: Deshotel
Economic Development
4/22/2001
Committee Report (Substituted)



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years ago and has become outdated in an economy which is no longer based on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.  C.S.H.B. 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

C.S.H.B. 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 47.6 percent of the
average weekly wage in covered employment and the minimum weekly benefit
amount is 7.6 percent of the average weekly wage in covered employment.
The bill requires the Texas Workforce Commission (TWC) 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 based
on the annual average weekly wage for the preceding year.  If the benefit
amount is not a multiple of one, TWC is required to increase the amount to
the next multiple of $1. 
 
EFFECTIVE DATE

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

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 567 modifies the original to decrease the maximum weekly benefit
amount for an eligible individual from 52 to 47.6 percent of the average
weekly wage in covered employment and increases the minimum weekly benefit
amount from seven to 7.6 percent of the average weekly wage in covered
employment.  The substitute specifies that the Texas Workforce Commission
(TWC) is required 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 based on the annual average weekly wage
for the preceding year rather than by using the preceding quarterly report
on employment, wages, and contributions prepared by TWC as required by
federal law.