By Carona                                             S.B. No. 1138
         77R2797 AEI-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to contribution rates for cotton ginners for unemployment
 1-3     compensation purposes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 204.007, Labor Code, is amended to read
 1-6     as follows:
 1-7           Sec. 204.007.  Special Rate--Cotton Ginning Employer. [(a)]
 1-8     An employer identified by the commission as classified in the
 1-9     manual as Number 115111 [0724], cotton ginning, shall [may elect
1-10     to] pay a contribution at the lowest of the following rates:
1-11                 (1)  [a total fixed rate of] five and four-tenths
1-12     percent; [instead of paying a contribution computed on:]
1-13                 (2) [(1)]  the general tax rate applicable to that
1-14     employer, with the deficit tax rate and replenishment tax rate; or
1-15                 (3) [(2)]  any other tax rate applicable to that
1-16     employer under this subtitle.
1-17           [(b)  An employer must notify the commission of an election
1-18     under this section in writing not later than December 31 preceding
1-19     the year for which the election is made.]
1-20           SECTION 2.  This Act takes effect September 1, 2001.