BILL ANALYSIS



S.B. 215
By: Truan (Raymond)
April 12, 1995
Committee Report (Unamended)


BACKGROUND

The North American Free Trade Agreement (NAFTA), which was recently
passed by Congress, includes a Self-Employment Assistance Program
in its legislation. The program is part of a series of
administration innovations in the unemployment system and
authorizes states to create self-employment assistance programs as
part of their state unemployment compensation systems.

PURPOSE

As proposed, S.B. 215 provides for the establishment of a self-employment assistance program.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does expressly grant
additional rulemaking authority in Section 1, Sec. 303.005 (b) and
Sec. 303.007 (a).

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 4B, Labor Code, by adding Chapter 303, as
follows:

        CHAPTER 303. SELF-EMPLOYMENT ASSISTANCE PROGRAM

     Sec. 303.001. DEFINITIONS. Defines "commission," "regular
     benefits," "self-employment assistance activities," and "self-employment assistance allowance."
     
     Sec. 303.002. ELIGIBILITY FOR SELF-EMPLOYMENT ASSISTANCE
     ALLOWANCE. (a) Sets forth guidelines under which an individual
     is eligible to receive a self-employment assistance allowance
     (allowance).
     
     (b) Sets forth eligibility criteria for individuals to whom
       the Texas Employment Commission (commission) is required to
       pay an allowance.
       
       (c) Provides that an allowance is payable to an individual
       at the same interval and is subject to the same terms and
       conditions as regular benefits.
       
       (d) Provides that income from self-employment earned by an
       individual is not required to be reported and may not be
       considered by the commission for the purposes of Section
       207.003.
       
       (e) Provides that an individual who meets the requirements
       of this section is unemployed for purposes of Subtitle A.
       
       Sec. 303.003. DISQUALIFICATION. Provides that an individual
     who fails to participate in self-employment assistance
     activities or to engage on a full-time basis in activities
     related to establishing a business and becoming self-employed
     is disqualified from the allowance.
     
     Sec. 303.004. AMOUNT OF SELF-EMPLOYMENT ASSISTANCE ALLOWANCE.
     (a) Provides that the weekly amount payable to an eligible
     individual is equal to the weekly benefit amount otherwise
     payable for regular benefits.
     
     (b) Prohibits the total of the allowance and regular
       benefits paid under Subtitle A with respect to an
       individual's benefit year from exceeding a certain amount.
       
       Sec. 303.005. LIMITATION ON SCOPE OF PROGRAM. (a) Prohibits
     the number of individuals who receive an allowance from
     exceeding five percent of the total number of individuals
     receiving regular benefits.
     
     (b) Requires the commission to adopt rules as necessary to
       enforce this section.
       
       (c) Requires the commission to enter into interagency
       agreements with other state agencies to facilitate the goals
       of this program.  Goals include technical assistance, access
       to capital, bonding and any other needs necessary for small
       business success.
     Sec. 303.006. PROGRAM FINANCING. Requires allowances paid to
     be charged to employers in the same manner as the charging of
     regular benefits.
     
     Sec. 303.007. RULES; COMMISSION DUTIES. (a) Sets forth rules
     the commission is authorized to adopt to implement this
     chapter.
     
       (b) Requires the commission to develop a profiling system to
       identify individuals likely to exhaust regular benefits who
       may be eligible to participate in a program of self-employment assistance activities.
       
       Sec. 303.008. PROGRAM APPROVAL. Requires the commission, in
     approving a program that provides self-employment assistance
     activities, to attempt to identify and give priority treatment
     to existing training programs.
     
     SECTION 2.  (a) Effective date of September 1, 1995 and makes
application of this Act prospective.

     (b) Provides that this Act expires at the end of the week
     preceding the date federal law no longer authorizes a self-employment assistance program.
     
     (c) Provides that this Act, notwithstanding Subsection (b) of
     this section, expires December 8, 1998.
     
SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE ACTION

S.B. 215 was considered by the committee in a public hearing on
March 27, 1995.  Testifying on the bill was John Jennings,
representing the Texas Employment Commission and William
Grossenbacher, representing the Texas Employment Commission.  No
one testified against the bill.  S.B. 215 was left pending.  S.B.
215 was reconsidered by the committee in a public hearing on April
10, 1995.  S.B. 215 was reported favorably without amendment, with
the recommendation that it do pass and be printed, by a record vote
of 6 ayes, 0 nays, 0 pnv, 3 absent.