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