H.B. 1221 78(R)    BILL ANALYSIS


H.B. 1221
Telford
Defense Affairs and State-Federal Relations
Committee Report (Unamended)



BACKGROUND AND PURPOSE
 
Many of the men and women who are currently being called to active duty
are business owners who provide jobs in communities across Texas.  In many
cases, their employees will lose their jobs as a result of their employer
being called to serve.  These employees have a right to collect
unemployment benefits; however, under current law, these claims cause the
employer's unemployment insurance premiums to rise.  H.B. 1221 exempts
these claims from unemployment insurance chargebacks so that employers
called into service are not forced to pay higher premiums. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 


ANALYSIS

SECTION 1.   H.B. 1221 amends Section 204.022(a) of the Labor Code to
create an exclusion from unemployment chargebacks based on a separation
from employment resulting from an employer being called to active military
duty. 


SECTION 2.  Effective Date -  If the Act does not receive the necessary
vote for immediate effect, this Act takes effect September 1, 2003.