SRC-JFA S.B. 215 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 215
By: Nixon
Economic Development
2-3-97
As Filed


DIGEST 

Currently, a reimbursing employer has notice and protest rights only if it
is the final employer before a claimant files an unemployment claim.  A
reimbursing employer is a governmental agency or a non-profit entity that
does not pay state or federal unemployment insurance tax.  A reimbursing
employer reimburses the state for all payments made to former employees
who file eligible unemployment compensation claims.  Without additional
notice or protest rights, reimbursing employers cannot contest
unemployment compensation benefits that employers are required to pay to
former employees whose benefits were originally disqualified.  This bill
would give notice and protest rights to reimbursing employers (in lieu of
the final employer) if the claimant's last work was for a period of less
than six weeks, performed for a non-covered employer, and the reimbursing
employer was the claimant's last employer in the base period.  The term
"base period" refers to the first four of the last five completed calender
quarters immediately preceding the date of an initial claim for
unemployment compensation.   

PURPOSE

As proposed, S.B. 215 sets forth the conditions giving reimbursing
employers the opportunity to protest a claim for unemployment benefits
made by a base period employee.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 205B, Labor Code, by adding Section 205.0115, as
follows:  

Sec.  205.0115.  NOTICE AND PROTEST RIGHTS OF CERTAIN REIMBURSING
EMPLOYERS.  Sets forth the conditions by which a reimbursing employer is
entitled to the notice and protest rights afforded an employer who pays
contributions in lieu of the person for whom the claimant last worked,
notwithstanding Section 205.011, Labor Code, relating to the rights and
privileges of a reimbursing employer, and any other provision of Title 4A,
Labor Code, relating to the Texas Unemployment Compensation Act. 

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.