BILL ANALYSIS

Senate Research Center	H.B. 3699
89R21372 RDS-F	By: Vo (Alvarado)
	Economic Development
	5/2/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Texas Workforce Commission (TWC) has identified a loophole in current law that enables bad actors to improperly qualify for unemployment benefits. To determine a claimant's qualification for benefits, TWC is statutorily required to notify the claimant's most recent employer and request relevant information to determine eligibility. However, under current law "last work" refers to the employer, as defined by the Texas Unemployment Compensation Act or another state's equivalent law, for whom the claimant most recently worked or the last person for whom the claimant worked for at least 30 hours in a single week. The 30-hour element of this definition allows individuals to create a new previous employer if separation from their actual last employer would be disqualifying; for example, an individual might work for a neighbor for 30 hours and claim the individual was laid off due to a lack of work. In these cases, the only version of events available to TWC comes from the claimant, allowing them to manipulate the process and secure benefits fraudulently.

H.B. 3699 addresses this issue and strengthens the integrity of the state's unemployment benefits system by revising the statutory definition of "last work" and "person for whom the claimant last worked."

H.B. 3699 amends current law relating to initial claims under the unemployment compensation system.

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 208.002(a), Labor Code, as follows:

(a)� Provides that, when used in connection with an initial claim, "last work" and "person for whom the claimant last worked" refer to the employer, as defined by Subchapter C (Definition of Employer), Chapter 201 (Unemployment Compensation Act--General Provisions), for whom the claimant last worked, unless otherwise provided by state or federal law. Deletes existing text providing that, when used in connection with an initial claim, "last work" and "person for whom the claimant last worked" refer to the last person for whom the claimant actually worked, if the claimant worked for that person for at least 30 hours during a week; or the employer, as defined by Subchapter C, Chapter 201, or by the unemployment law of any other state, for whom the claimant last worked.

SECTION 2.� Makes application of this Act prospective.

SECTION 3.� Effective date: January 1, 2026.