HBA-EDN, SEP H.B. 1708 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1708 By: Keffer Economic Development 3/20/2001 Introduced BACKGROUND AND PURPOSE Under current law, cotton ginning employers (employers) are authorized to elect which contribution rate they wish to pay for unemployment compensation purposes and are required to notify the Texas Workforce Commission (commission) of that election in writing not later than December 31 preceding the year for which the election is made. Reason suggests that employers would elect to pay the lowest rate, and so it may seem inefficient to have employers notify the commission. House Bill 1708 requires that employers pay a contribution at the lowest of the current rates and removes the election notification requirement. 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 1708 amends the Labor Code to require an employer classified in the Standard Industrial Classification Manual as Number 115111, cotton ginning, to pay a contribution at the lowest of the following rates without having to notify the Texas Workforce Commission: five and four-tenths percent; the general tax rate applicable to that employer, with the deficit tax rate and replenishment tax rate; or any other tax rate applicable to that employer under the Texas Unemployment Compensation Act. EFFECTIVE DATE September 1, 2001.