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.