By Lewis of Tarrant                                    H.B. No. 240
         77R2230 AEI-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to eligibility of certain employees for unemployment
 1-3     compensation benefits after the birth or adoption of a child.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 207, Labor Code, is amended
 1-6     by adding Section 207.026 to read as follows:
 1-7           Sec. 207.026.  BIRTH OR ADOPTION OF CHILD. (a)  An individual
 1-8     may not be denied benefits solely because the individual is on
 1-9     leave from or left the individual's last employment to care for a
1-10     child born to or adopted by the individual, if the individual took
1-11     leave or left the employment during the first year after the date
1-12     of the child's birth or placement with the individual for adoption.
1-13           (b)  An individual who is on leave or who has left employment
1-14     in accordance with Subsection (a)  is eligible for benefits under
1-15     this section.
1-16           (c)  An individual who is on leave or who has left employment
1-17     in accordance with Subsection (a)  is not required to comply with
1-18     the provisions of this chapter relating to the individual's:
1-19                 (1)  availability for work;
1-20                 (2)  active search for work; or
1-21                 (3)  refusal to apply for or refusal to accept suitable
1-22     work.
1-23           (d)  The benefit amount an individual who is eligible to
1-24     receive benefits under this section may receive shall be reduced
 2-1     by:
 2-2                 (1)  any amount paid to the individual by an employer
 2-3     because of the birth or adoption of the child; and
 2-4                 (2)  any amount paid to the individual under a
 2-5     disability insurance plan contributed to by an employer, in
 2-6     proportion to the employer's contribution to the plan.
 2-7           (e)  An employer shall post notices as prescribed by the
 2-8     commission by rule regarding the availability of benefits under
 2-9     this section. The notices must be posted at conspicuous places at
2-10     each of the employer's places of business.
2-11           (f)  This section shall be applied in accordance with any
2-12     applicable regulations of the United States Department of Labor.
2-13           SECTION 2.  Section 207.045(d), Labor Code, is amended to
2-14     read as follows:
2-15           (d)  Notwithstanding any other provision of this section, an
2-16     individual who is available to work may not be disqualified for
2-17     benefits because the individual left work because of:
2-18                 (1)  a medically verified illness of the individual or
2-19     the individual's minor child;
2-20                 (2)  injury;
2-21                 (3)  disability;  [or]
2-22                 (4)  pregnancy; or
2-23                 (5)  the birth of the individual's child or the
2-24     adoption of a child by the individual, if the individual took leave
2-25     or left work to care for the child during the first year after the
2-26     date of the child's birth or placement with the individual for
2-27     adoption.
 3-1           SECTION 3.  Section 204.022(a), Labor Code, is amended to
 3-2     read as follows:
 3-3           (a)  Benefits computed on benefit wage credits of an employee
 3-4     or former employee may not be charged to the account of an employer
 3-5     if the employee's last separation from the employer's employment
 3-6     before the employee's benefit year:
 3-7                 (1)  was required by a federal statute;
 3-8                 (2)  was required by a statute of this state or an
 3-9     ordinance of a municipality of this state;
3-10                 (3)  would have disqualified the employee under Section
3-11     207.044, 207.045, 207.051, or 207.053 if the employment had been
3-12     the employee's last work;
3-13                 (4)  imposes a disqualification under Section 207.044,
3-14     207.045, 207.051, or 207.053;
3-15                 (5)  was caused by a medically verifiable illness of
3-16     the employee or the employee's minor child;
3-17                 (6)  was based on a natural disaster that results in a
3-18     disaster declaration by the president of the United States under
3-19     the Robert T. Stafford Disaster Relief and Emergency Assistance Act
3-20     (42 U.S.C. Section 5121 et seq.), if the employee would have been
3-21     entitled to unemployment assistance benefits under Section 410 of
3-22     that act (42 U.S.C. Section 5177) had the employee not received
3-23     state unemployment compensation benefits;
3-24                 (7)  was caused by a natural disaster, fire, flood, or
3-25     explosion that causes employees to be separated from one employer's
3-26     employment;  [or]
3-27                 (8)  resulted from the employee's resigning from
 4-1     partial employment to accept other employment that the employee
 4-2     reasonably believed would increase the employee's weekly wage; or
 4-3                 (9)  resulted from the employee's taking leave or
 4-4     leaving employment to care for a child born to or adopted by the
 4-5     employee, if the employee took leave or left employment during the
 4-6     first year after the date of the child's birth or placement with
 4-7     the employee for adoption.
 4-8           SECTION 4.  (a)  This Act takes effect September 1, 2001, and
 4-9     applies only to eligibility for unemployment compensation benefits
4-10     under a claim that is filed with the Texas Workforce Commission on
4-11     or after December 1, 2001.  Eligibility for unemployment
4-12     compensation benefits under a claim that is filed before December
4-13     1, 2001, is governed by the law in effect on the date that the
4-14     claim was filed, and the former law is continued in effect for that
4-15     purpose.
4-16           (b)  The Texas Workforce Commission shall adopt rules as
4-17     necessary to implement Section 207.026, Labor Code, as added by
4-18     this Act, not later than November 1, 2001.