BILL ANALYSIS

H.B. 1782

By: Deshotel

Business & Industry

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Unemployment compensation eligibility is determined by analyzing earnings records reported by employers each quarter. These records are the basis of an individual's base period year of earnings for a benefits claim. Because of processing delays, the standard base period excludes up to six months of a worker's earnings, unnecessarily denying benefits to certain workers. By allowing a more recent quarter in which an employee earns wages under an alternative base period, more Texans would qualify for the help they need, especially low-income workers who are more prone to job interruptions. H.B. 1782 seeks to establish such an alternative base period.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Texas Workforce Commission in SECTION 1 of this bill.

ANALYSIS

H.B. 1782 amends the Labor Code to establish an alternative base period for the computation of unemployment compensation benefits for an individual who does not have sufficient benefit wage credits to qualify for benefits under the existing methods of computing the base period. The base period for such an individual is the four most recently completed calendar quarters preceding the first day of the individual's benefit year. For purpose of establishing qualifications for benefits under that base period computation, an individual for whom wage information for the most recent calendar quarter is not yet accessible to or obtainable by the Texas Workforce Commission (TWC) may demonstrate that qualification by providing an affidavit supported by payroll documentation available to the individual for the most recent calendar quarter. The bill requires the TWC by rule to adopt a procedure for an individual to provide the affidavit and documentation.

H.B. 1782 repeals Section 201.011(1), Labor Code.

EFFECTIVE DATE

September 1, 2021.