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.