By Palmer                                      H.C.R. No. 113

      75R2282 AMB-D                           

                             HOUSE CONCURRENT RESOLUTION

 1-1           WHEREAS, The federal unemployment tax was imposed under the

 1-2     Federal Unemployment Tax Act in 1935 as part of New Deal social

 1-3     legislation for the purpose of coercing states to enact

 1-4     unemployment compensation laws that meet federally established

 1-5     standards; and

 1-6           WHEREAS, The Internal Revenue Service has for many years

 1-7     extracted from Texas employers federal unemployment taxes equal to

 1-8     approximately twice the amount that the federal government has

 1-9     returned to the state in the form of administrative grants; and

1-10           WHEREAS, The United States Department of Labor has used the

1-11     threat of withholding these funds to compel the state to comply

1-12     with its directives, which has prevented the Texas Legislature from

1-13     enacting unemployment compensation laws that are more suited to the

1-14     needs of the people of this state; and

1-15           WHEREAS, In addition, federal control over programs that

1-16     assist and train the unemployed for the workplace has hindered the

1-17     ability of the State of Texas to adapt federally funded employment

1-18     and workforce development programs to the specific needs of state

1-19     and local economies; and

1-20           WHEREAS, Texas has instituted an innovative workforce

1-21     development system that minimizes administrative costs and

1-22     maximizes the ability of communities to customize workforce

1-23     development services to local conditions; and

 2-1           WHEREAS, The federal unemployment tax is a burden on Texas

 2-2     employers and a drain on the state economy, and federal control of

 2-3     job training and workforce development programs has impeded the

 2-4     state's efforts to help the unemployed by hindering program

 2-5     effectiveness and the ability to respond quickly to local and state

 2-6     needs; now, therefore, be it

 2-7           RESOLVED, That the 75th Legislature of the State of Texas

 2-8     hereby respectfully urge the Congress of the United States to

 2-9     repeal the Federal Unemployment Tax Act and transfer control of

2-10     federally funded employment and workforce development programs to

2-11     the states; and, be it further

2-12           RESOLVED, That the Texas secretary of state forward official

2-13     copies of this resolution to the president of the United States, to

2-14     the speaker of the house of representatives and the president of

2-15     the senate of the United States Congress, and to all members of the

2-16     Texas delegation to the congress with the request that this

2-17     resolution be officially entered in the Congressional Record as a

2-18     memorial to the Congress of the United States of America.