1-1 By: Galloway S.B. No. 643
1-2 (In the Senate - Filed February 18, 1997; February 20, 1997,
1-3 read first time and referred to Committee on Economic Development;
1-4 April 25, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 10, Nays 0; April 25, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 643 By: Patterson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the rate applicable to certain successor employers for
1-11 contributions under the unemployment compensation system.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 204.085, Labor Code, is amended to read
1-14 as follows:
1-15 Sec. 204.085. CONTRIBUTION RATE FOR SUCCESSOR EMPLOYER.
1-16 (a) If, on the date of an acquisition, at least one of the
1-17 employing units that is a party to the acquisition is an
1-18 experience-rated employer, and the [A] successor employing unit
1-19 [that] is subject to Section 204.083 or 204.084, the successor
1-20 employing unit [and is an experience-rated employer on the date of
1-21 acquisition] shall pay contributions from the effective date of the
1-22 acquisition as provided by Section 204.082 until the end of the
1-23 calendar year in which the acquisition occurred at a [the] rate
1-24 computed by adding together the compensation experience of all the
1-25 employing units that are parties to the acquisition for the 12
1-26 calendar quarters preceding the quarter in which [applicable to the
1-27 successor employing unit on the date of] the acquisition occurred
1-28 and using that combined experience to compute an aggregate
1-29 experience rate.
1-30 (b) If, on the date of an acquisition, no employing unit
1-31 that is a party to the acquisition is an experience-rated employer,
1-32 and the [A] successor employing unit [that] is subject to Section
1-33 204.083 or 204.084, the successor employing unit [and is not an
1-34 experience-rated employer on the date of the acquisition] shall pay
1-35 contributions at the rates prescribed by Section 204.0065 and
1-36 Section 204.121, if [from the date of] the acquisition occurs
1-37 before January 1, 2000, and at the rate prescribed by Section
1-38 204.006, if the acquisition occurs on or after January 1, 2000,
1-39 until the successor employing unit is eligible for an experience
1-40 rate under Section 204.041. The rate under Section 204.041 shall
1-41 be computed by adding together the compensation experience of all
1-42 employing units that are parties [next tax rate computation date at
1-43 the highest rate applicable at the time of the acquisition to any
1-44 predecessor employer who is a party] to the acquisition and using
1-45 it to compute an aggregate experience rate.
1-46 SECTION 2. This Act takes effect September 1, 1997, and
1-47 applies only to a computation of an experience rate for
1-48 unemployment compensation contributions made by the Texas Workforce
1-49 Commission as a result of an acquisition that occurs on or after
1-50 the effective date of this Act. A computation of an experience
1-51 rate for unemployment compensation contributions made by the Texas
1-52 Workforce Commission as a result of an acquisition that occurs
1-53 before the effective date of this Act is governed by the law in
1-54 effect on the date that the acquisition occurs, and the former law
1-55 is continued in effect for that purpose.
1-56 SECTION 3. The importance of this legislation and the
1-57 crowded condition of the calendars in both houses create an
1-58 emergency and an imperative public necessity that the
1-59 constitutional rule requiring bills to be read on three several
1-60 days in each house be suspended, and this rule is hereby suspended.
1-61 * * * * *