SRC-LBB H.B. 1819 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1819
78R3152 PB-DBy: Oliveira (Lucio)
Business & Commerce
4/17/2003
Engrossed


DIGEST AND PURPOSE 

In regards to unemployment insurance, a chargeback is when benefits of a
former employee are charged to the account of an employer; this is used in
determining an employer's unemployment insurance tax rate.  Chargeback
relief is when the employer's account is not charged. 

In 2001, the bridge connecting South Padre Island to the mainland
collapsed after being struck by a barge that was forced off course by high
tides.  The governor declared the area a disaster, but President Bush
declined to make the same declaration.  Although chargeback relief was
granted for this incident, it uncovered a weakness in current statute; if
the accident had been caused by human error, the Texas Workforce
Commission would not have been able to extend relief unless the president
had declared the area a disaster.  H.B. 1819 provides chargeback relief
for employers who have been affected by any event declared a disaster by
the governor. 



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 based on a disaster that results in a disaster declaration by the
governor under Section 418.014, Government Code. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date:  upon passage or September 1, 2003.