HBA-AMW H.B. 2086 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2086 By: Yarbrough Economic Development 4/26/2001 Committee Report (Amended) 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. EXPLANATION OF AMENDMENTS Committee Amendment No. 1 caps the increase in the taxable wage base at $12,000 after calendar year 2003, rather than increasing the taxable wage base to $15,000 after calendar year 2006.