By: Patterson S.B. No. 706 A BILL TO BE ENTITLED 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 1-24 for the succeeding calendar year. 2-1 (d) An employer who elects to make a voluntary contribution 2-2 for the recomputation of the employer's experience rate must make 2-3 the contribution not later than the 30th day after the date on 2-4 which the commission mails to the employer the annual notice of the 2-5 employer's experience rate. The employer may not revoke the 2-6 contribution after the date on which the commission uses the 2-7 contribution to recompute the employer's experience rate. 2-8 (e) Notwithstanding Subsection (a), the commission may not 2-9 compute a new experience rate for an employer or reduce an 2-10 employer's experience rate based on a voluntary contribution made 2-11 by the employer after the expiration of the 120th day of the 2-12 calendar year for which the rate is effective. 2-13 (f) The commission shall deposit a voluntary contribution 2-14 made under this section to the credit of the compensation fund. 2-15 SECTION 2. This Act takes effect September 1, 1997, and 2-16 applies only to computation of an unemployment compensation 2-17 experience rate made by the Texas Workforce Commission on or after 2-18 that date. A rate computed before that date is governed by the law 2-19 in effect on the date that the rate was computed, and the former 2-20 law is continued in effect for that purpose. 2-21 SECTION 3. The importance of this legislation and the 2-22 crowded condition of the calendars in both houses create an 2-23 emergency and an imperative public necessity that the 2-24 constitutional rule requiring bills to be read on three several 2-25 days in each house be suspended, and this rule is hereby suspended.