LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION Revision 1 May 18, 2015 TO: Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3150 by Huberty (Relating to the calculation of taxable wages paid by a professional employer organization for purposes of the Texas Unemployment Compensation Act.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would amend the Labor Code relating to the calculation of taxable wages paid by a professional employer organization for purposes of the Texas Unemployment Compensation Act. Based on provisions of the bill the Texas Workforce Commission (TWC) anticipates a total five-year cost of $84.2 million to the Unemployment Compensation Fund. According to information provided by TWC, the U.S. Department of Labor (DOL) issued a formal opinion indicating that the provisions of the bill are conforming to Federal law. If, however, DOL subsequently determines that the provisions are nonconforming, the language included in the Texas Labor Code, Section 201.101 would allow TWC to access the severability provisions of the Texas Unemployment Compensation Act until such time as the Legislature can address any issues raised by DOL. Based on information provided by TWC, all the duties and responsibilities associated with implementing the provisions of the bill, related to funds inside of the treasury, could be accomplished by utilizing existing resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:320 Texas Workforce Commission LBB Staff: UP, SZ, NV, JLi, CL
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
Revision 1
May 18, 2015
Revision 1
Revision 1
TO: Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3150 by Huberty (Relating to the calculation of taxable wages paid by a professional employer organization for purposes of the Texas Unemployment Compensation Act.), As Engrossed
TO: Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB3150 by Huberty (Relating to the calculation of taxable wages paid by a professional employer organization for purposes of the Texas Unemployment Compensation Act.), As Engrossed
Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB3150 by Huberty (Relating to the calculation of taxable wages paid by a professional employer organization for purposes of the Texas Unemployment Compensation Act.), As Engrossed
HB3150 by Huberty (Relating to the calculation of taxable wages paid by a professional employer organization for purposes of the Texas Unemployment Compensation Act.), As Engrossed
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Labor Code relating to the calculation of taxable wages paid by a professional employer organization for purposes of the Texas Unemployment Compensation Act. Based on provisions of the bill the Texas Workforce Commission (TWC) anticipates a total five-year cost of $84.2 million to the Unemployment Compensation Fund. According to information provided by TWC, the U.S. Department of Labor (DOL) issued a formal opinion indicating that the provisions of the bill are conforming to Federal law. If, however, DOL subsequently determines that the provisions are nonconforming, the language included in the Texas Labor Code, Section 201.101 would allow TWC to access the severability provisions of the Texas Unemployment Compensation Act until such time as the Legislature can address any issues raised by DOL. Based on information provided by TWC, all the duties and responsibilities associated with implementing the provisions of the bill, related to funds inside of the treasury, could be accomplished by utilizing existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 320 Texas Workforce Commission
320 Texas Workforce Commission
LBB Staff: UP, SZ, NV, JLi, CL
UP, SZ, NV, JLi, CL