AN ACT

 1-1     relating to recomputation of an employer's unemployment

 1-2     compensation experience rate based on payment by the employer of

 1-3     certain voluntary contributions.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter C, Chapter 204, Labor Code, is amended

 1-6     by adding Section 204.048 to read as follows:

 1-7           Sec. 204.048.  VOLUNTARY CONTRIBUTIONS.  (a)  Notwithstanding

 1-8     any other provision of this subtitle, an employer for whom the

 1-9     commission has computed an experience rate as of October 1 of a

1-10     calendar year that is effective for the succeeding calendar year,

1-11     as provided by Section 204.047(a), may elect to make a voluntary

1-12     payment of contributions to the commission.

1-13           (b)  The amount of a voluntary contribution may be equal to

1-14     all or part of the employer's chargebacks  during the period ending

1-15     September 30 that are used in computing the employer's experience

1-16     rate for the succeeding calendar year.  The commission shall

1-17     allocate a voluntary contribution of less than the full amount of

1-18     the employer's chargebacks first to the employer's most recent

1-19     chargebacks.

1-20           (c)  On receipt of a voluntary contribution during the period

1-21     prescribed by Subsection (d), the commission shall reduce the

1-22     employer's chargebacks by an amount equal to the contribution and

1-23     shall recompute the  experience rate applicable to that employer

 2-1     for the succeeding calendar year.

 2-2           (d)  An employer who elects to make a voluntary contribution

 2-3     for the recomputation of the employer's experience rate must make

 2-4     the contribution not later than the 30th day after the date on

 2-5     which the commission mails to the employer the annual notice of the

 2-6     employer's experience rate.  The employer may not revoke the

 2-7     contribution after the date on which the commission uses the

 2-8     contribution to recompute the employer's experience rate.

 2-9           (e)  Notwithstanding Subsection (a), the commission may not

2-10     compute a new experience rate for an employer or reduce an

2-11     employer's experience rate based on a voluntary contribution made

2-12     by the employer after the expiration of the 120th day of the

2-13     calendar year for which the rate is effective.

2-14           (f)  The commission shall deposit a voluntary contribution

2-15     made under this section to the credit of the compensation fund.

2-16           SECTION 2.  This Act takes effect September 1, 1997, and

2-17     applies only to computation of an unemployment compensation

2-18     experience rate made by the Texas Workforce Commission on or after

2-19     that date.  A rate computed before that date is governed by the law

2-20     in effect on the date that the rate was computed, and the former

2-21     law is continued in effect for that purpose.

2-22           SECTION 3.  The importance of this legislation and the

2-23     crowded condition of the calendars in both houses create an

2-24     emergency and an imperative public necessity that the

2-25     constitutional rule requiring bills to be read on three several

 3-1     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 706 passed the Senate on

         April 16, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 706 passed the House on

         May 14, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor