By: Galloway S.B. No. 643
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the rate applicable to certain successor employers for
1-2 contributions under the unemployment compensation system.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 204.085, Labor Code, is amended to read
1-5 as follows:
1-6 Sec. 204.085. CONTRIBUTION RATE FOR SUCCESSOR EMPLOYER.
1-7 (a) If, on the date of an acquisition, at least one of the
1-8 employing units that is a party to the acquisition is an
1-9 experience-rated employer, and the [A] successor employing unit
1-10 [that] is subject to Section 204.083 or 204.084, the successor
1-11 employing unit [and is an experience-rated employer on the date of
1-12 the acquisition] shall pay contributions from the effective date of
1-13 the acquisition as provided by Section 204.082 until the end of the
1-14 calendar year in which the acquisition occurred at a [the] rate
1-15 computed by adding together the compensation experience of all the
1-16 employing units that are parties to the acquisition for the 12
1-17 calendar quarters preceding the quarter in which [applicable to the
1-18 successor employing unit on the date of] the acquisition occurred
1-19 and using that combined experience to compute an aggregate
1-20 experience rate.
1-21 (b) If, on the date of an acquisition, no employing unit
1-22 that is a party to the acquisition is an experience-rated employer,
1-23 and the [A] successor employing unit [that] is subject to Section
2-1 204.083 or 204.084, the successor employing unit [and is not an
2-2 experience-rated employer on the date of the acquisition] shall pay
2-3 contributions at the rates prescribed by Section 204.0065 and
2-4 Section 204.121, if [from the date of] the acquisition occurs
2-5 before January 1, 2000, and at the rate prescribed by Section
2-6 204.006, if the acquisition occurs on or after January 1, 2000,
2-7 until the successor employing unit is eligible for an experience
2-8 rate under Section 204.041. The rate under Section 204.041 shall
2-9 be computed by adding together the compensation experience of all
2-10 employing units that are parties [next tax rate computation date at
2-11 the highest rate applicable at the time of the acquisition to any
2-12 predecessor employer who is a party] to the acquisition and using
2-13 it to compute an aggregate experience rate.
2-14 SECTION 2. This Act takes effect September 1, 1997, and
2-15 applies only to a computation of an experience rate for
2-16 unemployment compensation contributions made by the Texas Workforce
2-17 Commission as a result of an acquisition that occurs on or after
2-18 the effective date of this Act. A computation of an experience
2-19 rate for unemployment compensation contributions made by the Texas
2-20 Workforce Commission as a result of an acquisition that occurs
2-21 before the effective date of this Act is governed by the law in
2-22 effect on the date that the acquisition occurs, and the former law
2-23 is continued in effect for that purpose.
2-24 SECTION 3. The importance of this legislation and the
2-25 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended.
3-4 COMMITTEE AMENDMENT NO. 1
3-5 Amend S.B. No. 643 as follows:
3-6 (1) In Section 204.085(a), Labor Code, as amended by
3-7 SECTION 1 of the bill (page 1, line 15, Senate Engrossment),
3-8 between "adding together the" and "compensation experience", insert
3-9 "applicable".
3-10 (2) In Section 204.085(b), Labor Code, as amended by
3-11 SECTION 1 of the bill (page 2, line 9, Senate Engrossment), between
3-12 "adding together the" and "compensation experience", insert
3-13 "applicable".
3-14 75R14178 PB-D Seaman