HBA-RBT H.B. 754 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 754 By: Janek Economic Development 3/10/1999 Introduced BACKGROUND AND PURPOSE Currently, the unemployment compensation tax rate for a business is the greater of the rate established for the major group to which the employer is assigned or 2.7 percent. Some feel that the imposition of this preset rate may discourage people from starting new businesses. H.B. 754 reduces the tax rate to the greater of the rate established for the major group to which the employer is assigned or .17 percent. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 204.006(a), Labor Code, to provide that a person's unemployment compensation contribution rate is the greater of the rate established for that year for the major group to which the employer is assigned under Section 204.004 (Assignment to Major Group) or .17 percent, rather than two and seven tenths percent. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective from January 1, 2000, as it applies to a computation of an unemployment compensation contribution rate made by the Texas Workforce Commission. SECTION 3. Emergency clause.