SRC-TBR H.B. 1757 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1757
By: Gutierrez (Lucio)
Business & Commerce
5/10/2001
Engrossed


DIGEST AND PURPOSE 

The law currently gives cotton ginning employers the choice to pay a
computed variable rate or a flat rate of 5.4%, but the employer must choose
which to pay in advance. Cotton ginning employees are given this option
because they often employ people seasonally.  H.B. 1757 extends the special
tax rate option to fruit, vegetable, and grain packing sheds that perform
the same general functions as cotton gins, but on crops other than cotton. 

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.  New heading: SPECIAL RATE; CERTAIN EMPLOYERS ENGAGED IN
AGRICULTURE.  (a)  Provides that this section applies to an employer
identified by the commission as classified in the manual as: Number 115114,
crop preparation services for market, or Number 115111, cotton ginning. 

(b)  Authorizes an employer subject to this section to elect to pay a
contribution at a total fixed rate of five and four-tenths percent instead
of paying a contribution computed on the general tax rate applicable to
that employer, with the deficit tax rate and replenishment tax rate or any
other tax rate applicable to that employer under this subtitle.  

SECTION 2.  Effective date: September 1, 2001.