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.