LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 11, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB694 by Yarbrough (Relating to eligibility for
unemployment compensation benefits of certain sheltered
workshop employees who are blind.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB694, As Engrossed: 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. *
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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:
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*Fiscal Probable Revenue Gain/(Loss) Probable Savings/(Cost) from *
* Year from Unemployment Compensation Unemployment Compensation *
* Clearance Account Benefit Account *
* 0936 0937 *
* 2002 $905,429 $(905,429) *
* 2003 905,429 (905,429) *
* 2004 905,429 (905,429) *
* 2005 905,429 (905,429) *
* 2006 905,429 (905,429) *
***************************************************************************
Fiscal Analysis
The bill would amend Section 201.067 of the Labor Code to exclude
training for blind individuals at a sheltered workshop operated by a
charitable organization under a rehabilitation program from the
definition of "employment," thus exempting them from withholding taxes
and, in some cases, disqualifying the wages they receive as employees of
sheltered workshops from the calculation of unemployment insurance
benefits taxes. The bill would, however, define these individuals as
being employed for the purpose of qualifying for unemployment insurance
benefits. If enacted, the bill would take effect September 1, 2001.
Methodology
The fiscal impact of the bill is estimated by the Texas Workforce
Commission (TWC) to be $905,429 in each fiscal year of the 2002-03
biennium from Unemployment Compensation Benefit Account 0937. This
benefit payout would be reimbursed by the employers of these claimants on
a dollar-for-dollar basis to the Unemployment Compensation Clearance
Account 0936.
TWC used Texas Commission for the Blind information data that there are
636 blind individuals employed in "Lighthouse" workshops in Texas in
fiscal year 2001. TWC estimated that there would be an average 25
percent turnover among these employees and that all of these former
employees would file claims. TWC also assumed that these individuals
would receive the average weekly benefit amount of $219.02 for the
maximum benefit period of 26 weeks.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 449 Finance Commission of Texas, 320 Texas
Workforce Commission
LBB Staff: JK, SD, JO, HL