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