BILL ANALYSIS H.B. 1027 By: Oliveira 02-21-95 Committee Report (Unamended) BACKGROUND Recent amendments to the Federal Social Security Act require state employment agencies to use a worker profiling system. The profiling system attempts to identify claimants who are likely to exhaust their unemployment benefits before finding another job. These individuals are referred to intensive reemployment services by the Texas Employment Commission to enhance their job searches or to enroll in job retraining programs. A claimant referred to job assistance services through the profiling system who does not participate in those services would not be eligible for unemployment benefits. The federal provision requires state employment agencies to disqualify claimants that refuse job assistance services. Current state law does not allow such a disqualification. The Texas unemployment system needs this provision to conform with federal standards. PURPOSE This amendment is necessary for Texas law to conform with federal requirements for disqualifying unemployment benefit claimants who refuse job assistance services. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Adds a new subpart 8 to Section 207.021(a) of the Labor Code which makes an additional eligibility requirement in order for claimants to receive unemployment benefits. The new subpart provides that a claimant who has been identified through the TEC profiling system and referred to job search assistance services must attend and complete those offered services in order to receive benefits. SECTION 2. Effective date September 1, 1995. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION H.B. 1027 was considered in a public hearing on February 20, 1995. Testifying on the bill was Martin Aguirre, representing the Texas Employment Commission. Testifying in favor of the bill was Walter Hinojosa, representing the Texas AFL-CIO. No one testified against the bill. A motion was made to report H.B. 1027 favorably to the House, without amendment, with the recommendation that it be placed on the consent calendar. The motion prevailed by a vote of 7 Ayes, 0 Nays, 0 PNV, and 2 Absent.