LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 3, 1997
TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 216
Committee on Economic Development By: Nixon, Drew
Senate
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 Introduced
This bill adds disqualifications for benefits to individuals in benefit periods
in which the person is receiving remuneration. Specifically, this bill would disallow
a person from receiving benefits if he or she is receiving severance pay or payment
for accrued vacation, sick, or other personal leave.
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,
accrued vacation leave, sick leave, and other personal leave to the list of disqualifying
income. The bill does not require benefits to be reduced dollar for dollar of disqualifying
income received. Therefore, a lump-sum payment of disqualifying income would be
prorated into weeks based on the amount of the claimant's prior earnings. The disqualification
period would then correspond to the number of weeks of disqualifying income.
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 (0.3)
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
No fiscal implication to units of local government is anticipated.
Source: Agencies: 478 Research & Oversight Council on Worker's Compensation
453 Workers' Compensation Commission
320 Texas Workforce Commission
LBB Staff: JK ,TH ,RA