BILL ANALYSIS



H.B. 1233
By: Moffat
02-21-95
Committee Report (Unamended)


BACKGROUND

Federal legislation, passed as a part of the GATT requires state
employment agencies to give unemployment benefit claimants the
option of having federal income taxes withheld from unemployment
benefit payments.  Unemployment benefits have been included in
taxable income since 1986.  The federal requirement would allow
claimants to elect to have taxes withheld.

PURPOSE

This amendment implements a Federal requirement that must be
included in the state unemployment compensation laws for the state
to be in conformity with federal provisions.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Adds a new Subchapter F to the Labor Code to allow
unemployment benefit claimants to elect to have federal income tax
withheld from benefits.  The withholding would begin January 1,
1997.

SECTION 2.  Emergency clause.

SUMMARY OF COMMITTEE ACTION

H.B. 1233 was considered in public hearing on February 20, 1995. 
Testifying on the bill was William Grossenbacher, representing the
Texas Employment Commission.  Testifying in favor of the bill was
Ted Roberts, representing the Texas Association of Business and
Chambers of Commerce.  No one testified against the bill.  A motion
was made to report H.B. 1233 favorably to the House, without
amendment, with the recommendation that it be placed on the consent
calendar.  The motion prevailed by a vote of 8 Ayes, 0 Nays, 0 PNV,
and 1 Absent.