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.