HBA-RBT H.B. 754 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 754
By: Janek
Economic Development
3/10/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, the unemployment compensation tax rate for a business is the
greater of the rate established for the major group to which the employer
is assigned or 2.7 percent.  Some feel that the imposition of this preset
rate may discourage people from starting new businesses.  H.B. 754 reduces
the tax rate to the greater of the rate established for the major group to
which the employer is assigned or .17 percent. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 204.006(a), Labor Code, to provide that a
person's unemployment compensation contribution rate is the greater of the
rate established for that year for the major group to which the employer is
assigned under Section 204.004 (Assignment to Major Group) or .17 percent,
rather than two and seven tenths percent. 

SECTION 2.  Effective date: September 1, 1999.
 Makes application of this Act prospective from January 1, 2000, as it
applies to a      computation of an unemployment compensation contribution
rate made by the Texas  Workforce Commission. 

SECTION 3.  Emergency clause.