LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 2, 1995 TO: Honorable Rene O. Oliveira, Chair IN RE: House Bill No. 2337 Committee on Economic Development By: Clemons House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2337 (relating to the eligibility for unemployment compensation benefits of certain employees of educational institutions) this office has determined the following: The bill would amend the Texas Labor Code by changing the conditions of eligibility for unemployment benefits for employees of educational institutions. The amendment would change the requirements for individuals receiving unemployment benefits in between school terms. The U.S. Department of Labor maintains that the bill is not in conformance with federal requirements. Shoud Texas be found out of conformity, a loss of tax credit would occur resulting in an additional 5.4% federal tax on the first $7,000 paid most workder by most Texas employers, or approximately $2.5 billion dollars annually. No fiscal implication to the State or units of local government is anticipated. Source: Texas Employment Commission LBB Staff: JK, CG, RR