LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 28, 1997
TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 215, Committee Report 1st House, Substituted
Committee on Economic Development By: Nixon, Drew
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB215 ( Relating
to notice and protest rights of certain reimbursing employers
under the unemployment compensation system.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by SB215-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
This bill adds Section 205.0115 to Subchapter B, Chapter 205,
Labor Code to require that a reimbursing employer have the same
notice and protest rights as a taxed employer in lieu of the
person for whom the cliamant last worked under conditions which
are set out in the bill.
This bill would not give a reimbursing
employer the right to protection from chargeback that taxed
employers are afforded. It would, however, require the adjudication
of the separation from the reimbursing employer to determine
whether the claimant would be disqualified under the conditions
specified in the bill.
Methodolgy
This bill would result in additional costs to modify the automated
benefits system and investigate additional claims. The automated
benefits system would require 200 hours in programming adjustments.
This is calculated as follows:
ADP Programmer II (0.1 FTE),
at $2,757 in FY 1998 ($28,668/2080 hours = $13.7827 per hour;
200 hours X $13.7827).
The agency estimates this bill would
also incur the costs of investigating an additional 5,554 claims.
This is calculated as follows:
Claims Examiner II (2.7 FTE),
at $56,860 per year ($22,032/2080 hours = $10.5923 per hour;
5,368 hours X $10.5923).
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Change in Number
Savings/(Cost) Savings/(Cost) of State
from Workforce from Workforce Employees from
Commission Commission FY 1997
Federal Account Federal Account
- Federal - Federal
5026 5026
1998 ($59,617) ($15,029) 2.8
1998 (56,860) (14,334)
2000 (56,860) (14,334)
2001 (56,860) (14,334)
2002 (56,860) (14,334)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
No fiscal implication to units of local government is anticipated.
Source: Agencies:
LBB Staff: JK ,TH