By Palmer                                            H.C.R. No. 113

         Substitute the following for H.C.R. No. 113:

         By Siebert                                       C.S.H.C.R. No. 113

                             HOUSE CONCURRENT RESOLUTION

 1-1           WHEREAS, The Federal Unemployment Tax was imposed by the

 1-2     Social Security Act passed by the United States Congress in 1935 as

 1-3     part of New Deal social legislation for the purpose of coercing the

 1-4     states into enacting unemployment compensation laws that met

 1-5     federally mandated standards; and

 1-6           WHEREAS, The unemployment tax provisions of the Social

 1-7     Security Act were repealed and reenacted by the United States

 1-8     Congress as the Federal Unemployment Tax Act in 1939; and

 1-9           WHEREAS, The Internal Revenue Service has for many years

1-10     extracted from Texas employers federal unemployment taxes equal to

1-11     approximately twice the amount that the federal government has

1-12     returned to the state in the form of administrative grants; and

1-13           WHEREAS, The United States Department of Labor has used the

1-14     threat of withholding these funds to compel the state to comply

1-15     with its directives which has prevented the Texas Legislature from

1-16     enacting unemployment compensation laws that are more suitable to

1-17     the needs of the people of this state; and

1-18           WHEREAS, In addition, federal control over programs that

1-19     assist and train the unemployed for the workplace has hindered the

1-20     ability of the State of Texas to adapt federally funded job

1-21     training and workforce development programs to the specific needs

1-22     of state and local economies; and

1-23           WHEREAS, Texas has instituted an innovative workforce

1-24     development system that minimizes administrative costs and

 2-1     maximizes the ability of communities to customize workforce

 2-2     development services to local conditions; and

 2-3           WHEREAS, The Federal Unemployment Tax is a burden on Texas

 2-4     employers and a drain on the state's economy and federal control of

 2-5     state unemployment insurance, job training and workforce

 2-6     development programs has impeded the state's efforts to help the

 2-7     unemployed by hindering program effectiveness and the ability to

 2-8     respond quickly to local and state needs; now, therefore, be it

 2-9           RESOLVED, That the 75th Legislature of the State of Texas

2-10     hereby respectfully urges the Congress of the United States to

2-11     repeal the Federal Unemployment Tax Act and transfer control of

2-12     state unemployment insurance programs, and federally funded job

2-13     training and workforce development programs to the states; and, be

2-14     it further

2-15           RESOLVED, That the Texas secretary of state forward official

2-16     copies of this resolution to the president of the United States, to

2-17     the speaker of the house of representatives and the president of

2-18     the senate of the United States Congress, and to all members of the

2-19     Texas delegation to the congress with the request that this

2-20     resolution be officially entered in the Congressional Record as a

2-21     memorial to the Congress of the United States of America.