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House Bill 3250 |
House Author: Ritter |
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Effective: 9-1-05 |
Senate Sponsor: Fraser |
House Bill 3250 amends the Texas Unemployment Compensation Act to revise and enhance provisions relating to the transfer of compensation experience following the acquisition of an experience-rated organization, trade, or business. The bill provides that the transfer of the predecessor employer's compensation experience to the successor employer is required if the predecessor employing unit transfers, through any means, all or part of the organization, trade, or business to the successor employer and there is substantially common management or control or substantially common ownership of the entities. The bill authorizes a successor employing unit and the predecessor employer, if the acquisition is without substantially common management or control or substantially common ownership, to jointly apply to the Texas Workforce Commission to transfer the compensation experience of the predecessor employer. The bill requires the commission to deny the transfer if the commission determines that the transfer was done primarily to qualify for a reduced compensation experience rating. The bill specifies the contribution rate to the compensation fund if the successor employing unit is an experience-rated employer and is not an employer under an acquisition without substantially common management or control or substantially common ownership. It sets the contribution rate for successor employers when substantially common management or control or substantially common ownership exists in the case of certain partial acquisitions and in the case of certain other acquisitions. The bill makes an offense under the provisions a Class A misdemeanor and provides that an employer or other person who commits an offense may be assessed a specified civil penalty.