By Palmer                                            H.C.R. No. 132
         76R6823 SMC-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 encouraging the states to enact
 1-4     unemployment compensation laws that met federally mandated
 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     nearly three times the amount that the federal government has
 1-9     returned to the state in the form of administrative grants; and
1-10           WHEREAS, The emergency temporary 0.2 percent Federal
1-11     Unemployment Tax Surtax authorized in 1976 accomplished its goal of
1-12     repaying the debt from that year's recession in 1987 and is no
1-13     longer needed, yet has remained in full effect and recently was
1-14     extended through the year 2007; and
1-15           WHEREAS, The United States Department of Labor has used the
1-16     threat of withholding these funds to compel the state to comply
1-17     with its directives, which has prevented the Texas Legislature from
1-18     enacting unemployment compensation laws that are more suitable to
1-19     the needs of the people of this state; and
1-20           WHEREAS, In addition to insufficient funding, federal control
1-21     over programs that rapidly re-employ workers hinders the ability of
1-22     the State of Texas to adapt federally funded employment service
1-23     programs to the specific needs of state and local economies; and
1-24           WHEREAS, Texas has instituted an innovative workforce
 2-1     development system that minimizes administrative costs and
 2-2     maximizes the ability of communities to customize workforce
 2-3     development services to local conditions; and
 2-4           WHEREAS, The federal unemployment tax is a burden on Texas
 2-5     employers and a drain on the state's economy, and federal control
 2-6     of state unemployment insurance programs has impeded the state's
 2-7     efforts to help the unemployed by hindering program effectiveness
 2-8     and the ability to respond quickly to local and state needs; now,
 2-9     therefore, be it
2-10           RESOLVED, That the 76th Legislature of the State of Texas
2-11     hereby respectfully urge the Congress of the United States to
2-12     reform financing of the Federal Unemployment Tax Act, provide for
2-13     adequate funding of the employment service so that employers can
2-14     rapidly identify skilled workers and job seekers can quickly be
2-15     re-employed, repeal the temporary 0.2 percent surtax, and transfer
2-16     control of state unemployment insurance programs to the states;
2-17     and, be it further
2-18           RESOLVED, That the Texas secretary of state forward official
2-19     copies of this resolution to the president of the United States, to
2-20     the speaker of the house of representatives and the president of
2-21     the senate of the United States Congress, and to all members of the
2-22     Texas delegation to the congress with the request that this
2-23     resolution be officially entered in the Congressional Record as a
2-24     memorial to the Congress of the United States of America.