BILL ANALYSIS



C.S.H.B. 2337
By: Clemons
April 12, 1995
Committee Report (Substituted)


BACKGROUND

Under existing state law, Texas Unemployment Compensation Act,
school employees are not eligible for unemployment compensation
benefits for that period of time (typically summer) between two
successive school years or academic terms, provided there is
reasonable assurance that the individual will perform the services 
in the second of the academic years or terms.  One substantial
problem is that many school employees, particularly non-professionals (those not serving in a capacity of instruction,
research, or principal administration) who are serving in dual
employment with the educational institution, are being terminated
from the higher paying position and offered only the (sometimes
far) lesser paying job.  Unfortunately, these people find
themselves being denied benefits due to ambiguous language in 
existing statutes which does not clearly define services.  They are
still offered assurance of performing "services" in the second of
the academic years or terms, but many times with a significant loss
of income.

PURPOSE

This Act attempts to alter the ability of educational institutions
to prevent non-professional school employees from qualifying for
unemployment compensation benefits unless offering a reasonable
assurance of essentially the same job or jobs in the second
academic year or term as the individual held during the first
academic year or term.  Federal law (in 1991) has already been
amended to this affect.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 207.041(a) and (b), Labor Code, by adding
that "reasonable assurance" only exists if the employment offered
to the individual in the second academic year or term is not
substantially less than the conditions of the employment performed
in the first of the academic year or term.

SECTION 2. Requires the Texas Employment Commission to perform an
interim study related to the eligibility for unemployment benefits
of employees of educational institutions.  Makes requirements for
what the study shall include.  Requires the commission to report
the Legislature the study no later than December 1, 1996.

SECTION 3. Effective date. Makes the act prospective with
provisional clause.

SECTION 4. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill added that benefits were not payable if the
individual is going to perform substantially the same services in
the second academic year or term.  The substitute removes the
original bill's language and adds that "reasonable assurance" only
exists if the employment offered to the individual is not
substantially less than the employment performed in the first of
the academic year or term.  The substitute adds a requirement that
the Texas Employment Commission must perform an interim study
related to the eligibility for unemployment benefits of employees
of educational institutions.  Sets requirements for the study and
the reporting deadline to the legislature.

SUMMARY OF COMMITTEE ACTION

H.B. 2337 was considered by the committee in a public hearing on
April 3, 1995.  Testifying on the bill was John Jennings,
representing the Texas Employment Commission.  No one testified
against the bill.  H.B. 2337 was left pending.  H.B. 2337 was
reconsidered by the committee in a public hearing on April 10,
1995.  The committee considered a complete substitute for the bill.
One amendment was offered to the substitute.  The one amendment was
adopted without objection.  The substitute as amended was adopted
without objection.  H.B. 2337 was reported favorably as
substituted, with the recommendation that it do pass and be
printed, by a record vote of 6 ayes, 3 nays, 0 pnv, 0 absent.