JKM S.B. 216 75(R)BILL ANALYSIS ECONOMIC DEVELOPMENT S.B. 216 By: Nixon, Drew (McCall) 5-15-97 Committee Report (Unamended) BACKGROUND Currently, Texas law does not disqualify an individual from receiving unemployment compensation benefits and severance pay simultaneously. This allows individuals to collect unemployment compensation benefits and other post-termination remuneration at the same time. This bill will disqualify certain persons from receiving unemployment compensation benefits. PURPOSE As proposed, S.B. 216 provides for disqualification for the receipt of unemployment compensation benefits of an individual receiving certain remuneration. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 207.049, Labor Code, to provide that an individual is disqualified for benefits for a benefit period for which the individual is receiving or has received remuneration in the form of severance pay, except severance pay that is explicitly outlined in a group employment contract. Provides that, notwithstanding Subsection (a), if the remuneration received by an individual under Subsection (a)(1) or (a)(3) is less than the benefits that the individual would otherwise be eligible to receive, the individual is entitled to receive benefits for the benefit period that are reduced by the amount of the remuneration, adjusted as provided by Section 207.006. States the legislative intent that a disqualification imposed under this section shall have only the effect of delaying the time that a claimant may begin drawing benefits to which the claimant is otherwise entitled and that the disqualification in noway reduces the maximum benefit amount determined on the basis of the wage credits earned by the claimant during the base period of the claim in question. SECTION 2. Makes application of this Act prospective. SECTION 3. Emergency clause. Effective date: upon passage.