HBA-JLV H.B. 1757 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1757 By: Gutierrez Economic Development 4/29/2001 Committee Report (Amended) BACKGROUND AND PURPOSE Under current law, employers pay into the unemployment fund based on a variable rate scale. The law currently gives cotton ginning employers the choice to pay a computed variable rate or a flat rate of 5.4%, but the employer must choose which to pay in advance. Cotton ginning employees are given this option because they often employ people seasonally. However, this special tax rate option is not given to other seasonal employers. House Bill 1757 extends the special tax rate option to fruit, vegetable, and grain packing sheds that perform the same general functions as cotton gins, but on crops other than cotton. 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 extend a special unemployment tax rate to employers primarily engaged in crop preparation services for market. EFFECTIVE DATE September 1, 2001. EXPLANATION OF AMENDMENTS Committee Amendment No. 1 changes the Standard Industrial Classification number 0723, referencing crop preparation services for market, to the North American Industrial Classification System number 115114, and changes the Standard Industrial Classification number 0724, referencing cotton ginning, to the North American Industrial Classification System number 115111.