SRC-MWN H.B. 1708 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1708
77R2797 AEI-FBy: Keffer (Carona)
Business & Commerce
5/10/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, cotton ginning employers (employers) are authorized to
elect which contribution rate they wish to pay for unemployment
compensation purposes and are required to notify the Texas Workforce
Commission (commission) of that election in writing not later than December
31 preceding the year for which the election is made. Reason suggests that
employers would elect to pay the lowest rate, and so it may seem
inefficient to have employers notify the commission. H.B. 1708 requires
that employers pay a contribution at the lowest of the current rates and
removes the election notification requirement.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 204.007, Labor Code, as follows:

Sec. 204.007. SPECIAL RATE--COTTON GINNING EMPLOYER. Requires an employer
identified by the commission as classified in the manual as Number 115111,
rather than 0724, cotton ginning, to pay a contribution at the lowest of
certain rates. Deletes text regarding electing to pay. Deletes text
regarding a total fixed rate. Deletes text regarding an employer being
required to notify the commission. 

SECTION 2. Effective date: September 1, 2001.