HBA-TYH H.B. 1384 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1384
By: Keffer
Economic Development
3/10/1999
Introduced



BACKGROUND AND PURPOSE 

Current law allows claimants to collect unemployment compensation benefits
and other posttermination payments simultaneously and only disqualifies a
claimant for a type of post-termination payment known as wages in lieu of
notice.  This can provide a disincentive for employers to give severance
pay and to make payouts of accrued leave.  H.B. 1384 disqualifies claimants
receiving two additional types of post-termination payments, severance pay
and payouts of accrued personal leave. This bill also offsets unemployment
benefits by the amount of post-termination payments received when such a
payment is less than the benefits that the claimant would otherwise be
eligible to receive. 

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 207.049, Labor Code, as follows:

Sec. 207.049.  RECEIPT OF REMUNERATION.  (a)  Provides that  an individual
is disqualified for benefits for a benefit period for which the individual
is receiving or has received remuneration in the form of severance or other
separation pay, payments of accrued vacation leave, sick leave, or other
personal leave, or in other enumerated forms. 

(b)  Provides that notwithstanding Subsection (a), the individual is
entitled to receive benefits for the benefit period that are reduced by the
amount of the remuneration, adjusted as provided by Section 207.006
(Adjustment of Benefits), if the remuneration received by an individual
under Subsection (a)(1), (3), or (4) is less than the benefits that the
individual would otherwise be eligible to receive.  

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

SECTION 3.Emergency clause.