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


Senate Research CenterC.S.S.B. 215
By: Nixon
Economic Development
2-28-97
Committee Report (Substituted)


DIGEST 

Currently, a reimbursing employer is a governmental agency or a nonprofit
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.  A
reimbursing employer agrees to give up protest rights in return for not
having to contribute until a reimbursement is needed.  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.  If the
employer "for whom the person last worked" was defined as one for which
the employee had worked for at least six weeks or an employer who is
covered by unemployment insurance law, a reimbursing employer may obtain
notice and protest rights.  If an employee's "last work" did not fall
within each category, the employee would be prohibited from naming that
employer as the "last employer."  Such a result would give the reimbursing
employer notice of the separation and protest rights.  This bill sets
forth the definition of a "person for whom the claimant last worked" as
the last individual or organization for whom the claimant worked for at
least six weeks, or an entity that provides insured employment for whom
the claimant last worked prior to the initial claim.     

PURPOSE

As proposed, C.S.S.B. 215 defines a "person for whom the claimant last
worked" in regard to notice and protest rights of certain reimbursing
employers under the unemployment compensation system. 

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  Section 201.011, Chapter 201B, Labor Code, by adding
Subsection(16) to define a "person for whom the claimant last worked" as
the last individual or organization for whom the claimant worked for at
least six weeks, or an entity that provides insured employment under the
law of this State, another state, or the U.S. for whom the claimant last
worked prior to the initial claim.   

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

SECTION 3. Emergency clause.   

SUMMARY OF COMMITTEE CHANGES

Amends SECTION 1, Section 201.011, Labor Code, by replacing proposed new
Section 205.0115, Labor Code, relating to notice and protest rights for
certain reimbursing employers, with a definition for a "person for whom
the claimant last worked."  

Amends SECTION 2, to provide that the Act is applicable and prospective to
a claim for unemployment compensation benefits that is filed with the
Texas Workforce Commission (TWC) on or after the effective date.  The
original proposed session law provided that the Act applies only  to
notice and protest rights of an employer regarding a claim for
unemployment compensation benefits filed with the TWC on or after the
effective date.