LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 14, 2001 TO: Honorable Jim Solis, Chair, House Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: HB2213 by Deshotel (Relating to the adoption of an alternative base period for computation of unemployment compensation benefits.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2213, 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 Probable Savings/(Cost) from Probable Savings/(Cost) from * * Year Unemployment Compensation Workforce Commission Federal * * Benefit Account Account - Federal * * 0937 5026 * * 2002 $(28,225,632) $(39,041) * * 2003 (28,225,632) (39,041) * * 2004 (28,225,632) (39,041) * * 2005 (28,225,632) (39,041) * * 2006 (28,225,632) (39,041) * *************************************************************************** Fiscal Analysis The bill would amend Section 201.011 of the Labor Code establishing a definition for an alternate base period for an individual who does not have sufficient benefit wage credits to receive unemployment insurance benefits under the definition of a base period or alternate base period for medical reasons. Based on the LBB's interpretation of the intent of the bill, it would take effect on September 1, 2001. Methodology The estimated fiscal impact of the bill would be approximately $56.5 million of the Unemployment Compensation Account 0937 for benefit payments and $78,028 of Workforce Commission Federal Funds Account 5026 (unemployment insurance funds provided by the federal government to the state for administration) for administration of the alternate base period in the 2002-03 biennium. The Texas Workforce Commission (TWC) analyzed fiscal year 2000 claims and determined that 13,116 additional persons would have qualified for unemployment insurance benefits under the alternate base period that would be established by the bill. The average maximum benefit amount was $2,152. 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