HBA-AMW H.B. 2086 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2086
By: Yarbrough
Economic Development
3/13/2001
Introduced



BACKGROUND AND PURPOSE 

For Texas unemployment insurance (UI) purposes, the taxes paid by each
employer are determined by a taxable wage base which has been gradually
increased over the years to the current taxable wage base of $9,000 as set
by the legislature in 1987.  An increase in the taxable wage base may
provide for a safer UI system and may help protect the UI trust fund.  A
gradual increase of the wage base over a five-year period would help to
gradually introduce a UI tax increase to employers.  House Bill 2086
increases the taxable wage base from $9,000 to $15,000 over a five-year
period. 

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 2086 amends the Labor Code to modify the provisions for
computing unemployment compensation taxes by increasing the taxable wage
base from $9,000 to $15,000 over a five-year period. The bill increases the
taxable wage base by $1,000 a year beginning with $10,000 for calendar year
2002 and ending with $15,000 for a calendar year after calendar year 2006. 

EFFECTIVE DATE

September 1, 2001.