SRC-AMY H.B. 1221 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1221
78R5135 JMM-DBy: Telford (Van de Putte)
Veteran Affairs & Military Installations
5/1/2003
Engrossed


DIGEST AND PURPOSE 

Currently, when a member of the United States armed forces who owns a
small business is called to active duty and lays off employees, the
business owner's unemployment premiums increase when the former employees
claim their unemployment benefits.  H.B. 1221 exempts such small business
owners from an increase in unemployment insurance when employees are laid
off because of the business owner's active military service in any branch
of the United States armed forces. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 204.022(a), Labor Code, to prohibit benefits
computed on benefit wage credits of an employee or former employee from
being charged to the account of an employer if the employee's last
separation from the employer's employment before the employee's benefit
year was caused by the employer being called to active military service in
any branch of the United States armed forces on or after January 1, 2003. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.