By Moffat                                             H.B. No. 1233
       74R3423 PB-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to withholding for federal income tax purposes from
    1-3  unemployment compensation benefits.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 207, Labor Code, is amended by adding
    1-6  Subchapter F to read as follows:
    1-7                    SUBCHAPTER F.  TAX WITHHOLDING
    1-8        Sec. 207.101.  WITHHOLDING FROM BENEFITS FOR FEDERAL INCOME
    1-9  TAX.  (a)  An eligible individual may elect to have federal income
   1-10  tax withheld from benefits.  The commission shall withhold federal
   1-11  income taxes from the benefits of an individual who elects the
   1-12  withholding as provided by the Federal Unemployment Tax Act (26
   1-13  U.S.C. Section 3301 et seq.) and Section 303, Social Security Act
   1-14  (42 U.S.C. Section 503), as those laws are amended by P.L. 103-465.
   1-15        (b)  The commission may not withhold federal income tax from
   1-16  benefits as provided by this section until January 1, 1997.
   1-17        SECTION 2.  The importance of this legislation and the
   1-18  crowded condition of the calendars in both houses create an
   1-19  emergency and an imperative public necessity that the
   1-20  constitutional rule requiring bills to be read on three several
   1-21  days in each house be suspended, and this rule is hereby suspended,
   1-22  and that this Act take effect and be in force from and after its
   1-23  passage, and it is so enacted.