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.