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Senate Bill 679 |
Senate Author: Williams |
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Effective: 5-4-07 |
House Sponsor: Woolley |
Senate Bill 679 amends the Labor Code to provide that if the amount in the unemployment compensation fund on a tax rate computation day is more than the ceiling of the compensation fund, the Texas Workforce Commission may use all or part of that surplus to pay outstanding bond obligations or to provide a surplus credit or a surplus credit rate to an employer entitled to an experience rate on the computation date. The bill specifies that if there are outstanding bond obligations and bond administrative expenses for which employers are assessed an obligation tax, the commission may transfer all or part of the surplus to the obligation trust fund for payment of those obligations. The amount transferred may not exceed the amount of bond proceeds transferred to the compensation fund to pay unemployment benefits. The bill authorizes the commission to use any remaining portion of the surplus to compute a surplus credit based on the surplus ratio and an employer's contributions to the compensation fund or to compute an annual surplus credit rate based on the surplus ratio and an employer's general and replenishment tax rates. The bill modifies computation of the surplus ratio and authorizes the commission to adjust the tax rate for experience-rated employers at its own discretion.