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.