| TO: | Honorable John Davis, Chair, House Committee on Economic & Small Business Development |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | HB1580 by Reynolds (Relating to excluding certain short-term employment from unemployment compensation chargebacks and grounds for benefit disqualification.), As Introduced |
The bill would amend the Labor Code relating to excluding certain short-term employment from unemployment compensation chargebacks and grounds for benefit disqualification.
According to information provided by the Texas Workforce Commission (TWC), the U.S. Department of Labor issued an informal opinion that the charge protection of the bill is non-conforming to federal law, because it requires that an individual be drawing benefits in order for the employer's account to be protected.
TWC anticipates that this bill will have no significant fiscal impact to the Unemployment Compensation fund. While the bill would result in additional benefits to the claimant, the benefits would be offset by weeks not paid while the claimant is working, and by claimants trying new work and not returning to unemployment benefits, because the work was suitable.
Based on information provided by TWC, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
| Source Agencies: | 320 Texas Workforce Commission
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| LBB Staff: | UP, RB, MW, NV
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