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