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.