The bill, H.B. No. 199, amends the Texas Labor Code to establish a new maximum amount of unemployment benefits that can be paid to individuals during a benefit year, based on a sliding scale related to the state average unemployment rate. A new section, 207.0055, is added to define the "state average unemployment rate" and outlines the maximum benefits payable, which varies from 14 times to 27 times the individual's benefit amount depending on the unemployment rate, with specific thresholds set for each range. Additionally, the bill repeals the existing Section 207.005 and updates Section 215.043(a) to reference the new section for determining maximum benefits.

The changes will only apply to claims for unemployment compensation benefits filed on or after the effective date of the Act, which is set for January 1, 2026. Claims filed before this date will continue to be governed by the previous law. This legislative update aims to provide a more responsive unemployment benefits system that adjusts according to economic conditions as reflected in the unemployment rate.

Statutes affected:
Introduced: Labor Code 215.043, Labor Code 207.005 (Labor Code 207, Labor Code 215)