S.B. 1071 78(R) BILL ANALYSIS S.B. 1071 By: Jackson Economic Development Committee Report (Unamended) BACKGROUND AND PURPOSE Currently, an employer is permitted under the Texas Unemployment Compensation Act to make a voluntary contribution to reduce the employer's unemployment tax rate. However, employers must make those contributions within 30 days of the date the Texas Workforce Commission mails the annual tax rate notice to the employer. Some employers have requested more time to make such voluntary contributions. SB 1071 permits the Texas Workforce Commission to prescribe the time period for payment of voluntary contributions. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly granted to the Texas Workforce Commission in SECTION 1 (Section 204.048, Labor Code) of this bill. ANALYSIS SB 1071 amends the Labor Code to allow the Texas Workforce Commission to prescribe the time period for the payment of voluntary contributions, within federal limits. EFFECTIVE DATE Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2003.