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.