LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 21, 2001
  
  
          TO:  Honorable Jim Solis, Chair, House Committee on Economic
               Development
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1321  by Brimer (Relating to the eligibility of
               substitute teachers for unemployment compensation
               benefits.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill, being contingent on the passage of federal legislation
establishing the ineligibility of substitute teachers for unemployment
compensation benefits, would have no significant fiscal impact because
there is no federal legislation proposed or pending according to the US
Department of Labor. Without this contingency statement, the bill would
raise conformity issues with the Federal Unemployment Tax Act (FUTA).
The fiscal implication of being out of conformance with the federal law
is about $2.8 billion per year in additional unemployment insurance
taxes that employers would have to pay to make up for the state becoming
ineligible for the deferred tax credit under the FUTA.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   320   Texas Workforce Commission
LBB Staff:         JK, JO, HL, RT, DB