LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 7, 2001 TO: Honorable Jim Solis, Chair, House Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: HB566 by Deshotel (Relating to eligibility for unemployment compensation benefits.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB566, 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 $(14,057,152) * * 2003 (14,057,152) * * 2004 (14,057,152) * * 2005 (14,057,152) * * 2006 (14,057,152) * ***************************************************** Fiscal Analysis The bill would amend Section 207.021 of the Labor Code by removing the seven-day waiting period for unemployment insurance benefits from the time an initial claim is filed. The bill would take effect on September 1, 2001. Methodology The fiscal impact of the bill is estimated to be $28.1 million on the Unemployment Insurance Benefit Account 0937 for the 2002-03 biennium. Based on calendar year 2000 claims, the Texas Workforce Commission (TWC) has concluded that there were 80,962 unemployment insurance claims with valid waiting periods that had not been paid when the claimants' benefit period ended. The amount potentially payable to those claimants for the seven-day waiting period was $14,057,152 in unemployment insurance benefits from Unemployment Compensation Benefit Account 0937. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 320 Texas Workforce Commission LBB Staff: JK, JO, RT, HL