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 The current process of computing unemployment benefits was enacted over twenty years ago and has become outdated in an economy which is no longer based on manufacturing jobs.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.