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 ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** 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