HBA-SEP H.B. 1326 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1326
By: Brimer
Economic Development
3/20/2001
Introduced



BACKGROUND AND PURPOSE 

Current law imposes an unemployment insurance tax rate of two and seven
tenths percent on companies that have yet to establish an unemployment
experience rating.   This tax rate may be burdensome to new businesses that
already have high start-up costs.  House Bill 1326 reduces an employer's
initial contribution rate to one and five tenths 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. 

ANALYSIS

House Bill 1326 amends the Labor Code to redefine a person's contribution
rate to the unemployment compensation fund for the calendar year in which
the person becomes an employer as one and five tenths percent, instead of
the greater of two and seven tenths percent or the rate established for
that year for the major group to which the employer is assigned.  The bill
also repeals provisions for assignment to a major group and establishment
of a major group contribution rate.   

EFFECTIVE DATE

September 1, 1999 and applies beginning January 1, 2000.