LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 18, 2013

TO:	Honorable John Davis, Chair, House Committee on Economic & Small Business Development
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB1914 by Cortez (Relating to certain required notices under the Texas Unemployment Compensation Act, including employer liability arising from failure to provide the notice.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would amend the Labor Code relating to certain required notices under the Texas Unemployment Compensation Act, including employer liability arising from failure to provide the notice.

Based on information provided by the Texas Workforce Commission (TWC), it is assumed that duties and responsibilities necessary to implement the provisions of the bill could be accomplished within existing resources. 

In addition, TWC reports that the U.S. Department of Labor issued an informal opinion that the bill conforms to federal law.  According to information provided by TWC, if the state fails to implement these provisions, Texas contributing employers could lose the 5.4 percent Federal Unemployment Tax Act offset credit resulting in an estimated five-year cost to Texas' contributing employers of $22.8 billion over a five year period.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

320 Texas Workforce Commission, 304 Comptroller of Public Accounts

LBB Staff:

UP, NV, RB