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.