LEGISLATIVE BUDGET BOARD

                         Austin, Texas



                          FISCAL NOTE

                     74th Regular Session


                       February 19, 1995



         TO:    Honorable Rene O. Oliveira, Chair       IN RE:  House Bill No. 1233
      Committee on Economic Development               By: Moffat
      House of Representatives
      Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1233 (Relating to withholding for federal income tax purposes
from unemployment compensation benefits.) this office has
determined the following:

The bill would allow individuals eligible to receive unemployment
insurance benefits to elect to have federal income tax withheld
from the benefits.  The bill is necessary for Texas to be in
conformity with federal requirements to avoid the loss of certain
tax credits.


No significant fiscal implication to the State or units of local
government is anticipated.


Source:   Texas Employment Commission
          LBB Staff: JK, CG, RR



        Approval Status:    




        Comments:
        LBB Coordinator Section




        Director's Approval Section