LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 6, 2001 TO: Honorable Jim Solis, Chair, House Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: HB134 by Deshotel (Relating to disqualification for the receipt of unemployment compensation benefits based on the receipt of certain periodic payments.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB134, As Introduced: positive impact of $0 through the biennium * * ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * Unemployment Compensation Benefit * * Account * * 0937 * * 2002 $(11,573,712) * * 2003 (11,573,712) * * 2004 (11,573,712) * * 2005 (11,573,712) * * 2006 (11,573,712) * ***************************************************** Fiscal Analysis The bill would amend Section 207.050(b) of the Labor Code effectively expanding the eligibility for unemployment insurance claims. Individuals would not be disqualified from claiming unemployment insurance benefits even if they were receiving payments from pensions, retirement plans, annuities, or any other similar periodic payment plan as long as they had contributed to the payment plan. Methodology The Texas Workforce Commission (TWC) estimates the fiscal impact of the bill would be approximately $11.6 million in each year of the 2002-03 biennium of additional unemployment insurance benefits claimed from the Unemployment Compensation Benefit Account 0937. TWC based its estimates on the 1,752 individuals who were disqualified from receiving unemployment insurance benefits under Section 207.050 (a) of the Labor Code in fiscal year 2000 and the average maximum benefit amount for those claimants of $6,606. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 320 Texas Workforce Commission LBB Staff: JK, JO, HL