HBA-JLV H.B. 1757 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1757
By: Gutierrez
Economic Development
7/17/2001
Enrolled



BACKGROUND AND PURPOSE 

Employers pay into the unemployment fund based on a variable rate scale.
Previous law gave cotton ginning employers the choice to pay a computed
variable rate or a flat rate of 5.4%, but the employer had to choose which
to pay in advance.  Cotton ginning employees were given this option because
they often employ people seasonally.  However, prior to the 77th
Legislative session, this special tax rate option  was not given to other
seasonal employers.  House Bill 1757 removes the rate election requirement
and requires cotton ginning and crop preparation services employers to pay
the lowest applicable tax rate. 

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 1757 amends the Labor Code to require employers primarily
engaged in crop preparation services for market or cotton ginning to pay
the lowest applicable unemployment tax rate. 

EFFECTIVE DATE

September 1, 2001.