LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 11, 1997
TO: Honorable Rene Oliveira, Chair IN RE: Senate Bill No. 216, As Engrossed
Committee on Economic Development By: Nixon, Drew
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB216 ( Relating
to the disqualification for the receipt of unemployment compensation
benefits of an individual receiving certain remuneration.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB216-As Engrossed
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 amends Section 207.049, Labor Code, to add payments
of severance pay to the list of disqualifying income. However,
severance payments as disqualifying income will not apply to
any amounts explicitly outlined in a group employment contract.
In addition, this bill requires benefits to be reduced dollar
for dollar by the amount of any disqualifying income received.
This bill adds disqualifications for benefits to individuals
in benefit periods in which the person is receiving remuneration.
Specifically, this bill disallows a person from receiving benefits
if he or she is receiving severance pay not related to a group
contract. The bill also reduces the benefit payment by the
amount of specific disqualified remuneration received.
Methodolgy
Costs: An unemployment specialist is required to make minor
one time alterations to benefits forms and changing the benefits
manual and the appeals policy and precedent manual, and a programmer
would be required to adjust screens to the Benefit Payment System.
No significant fiscal impact.
Savings: An estimated 5,400
claims would not be filed. This translates into 495 staff hours
per year for a Claims Examiner at a savings of $5,243 per year
in all fiscal years. Also, an estimated 400 continued claims
requiring investigations would be eliminated for a staff savings
of 166 staff hours per year or $1,758 per year for all fiscal
years.
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 Change in Number
Savings/(Cost) of State
from Workforce Employees from
Commission FY 1997
Federal Account
- Federal
5026
1998 $8,767 (3.0)
1998 8,767 0.0
2000 8,767 0.0
2001 8,767 0.0
2002 8,767 0.0
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
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies:
LBB Staff: JK ,TH