1-1 By: Patterson S.B. No. 706 1-2 (In the Senate - Filed February 21, 1997; February 26, 1997, 1-3 read first time and referred to Committee on Economic Development; 1-4 April 4, 1997, reported favorably by the following vote: Yeas 6, 1-5 Nays 1; April 4, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to recomputation of an employer's unemployment 1-9 compensation experience rate based on payment by the employer of 1-10 certain voluntary contributions. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter C, Chapter 204, Labor Code, is amended 1-13 by adding Section 204.048 to read as follows: 1-14 Sec. 204.048. VOLUNTARY CONTRIBUTIONS. (a) Notwithstanding 1-15 any other provision of this subtitle, an employer for whom the 1-16 commission has computed an experience rate as of October 1 of a 1-17 calendar year that is effective for the succeeding calendar year, 1-18 as provided by Section 204.047(a), may elect to make a voluntary 1-19 payment of contributions to the commission. 1-20 (b) The amount of a voluntary contribution may be equal to 1-21 all or part of the employer's chargebacks during the period ending 1-22 September 30 that are used in computing the employer's experience 1-23 rate for the succeeding calendar year. The commission shall 1-24 allocate a voluntary contribution of less than the full amount of 1-25 the employer's chargebacks first to the employer's most recent 1-26 chargebacks. 1-27 (c) On receipt of a voluntary contribution during the period 1-28 prescribed by Subsection (d), the commission shall reduce the 1-29 employer's chargebacks by an amount equal to the contribution and 1-30 shall recompute the experience rate applicable to that employer 1-31 for the succeeding calendar year. 1-32 (d) An employer who elects to make a voluntary contribution 1-33 for the recomputation of the employer's experience rate must make 1-34 the contribution not later than the 30th day after the date on 1-35 which the commission mails to the employer the annual notice of the 1-36 employer's experience rate. The employer may not revoke the 1-37 contribution after the date on which the commission uses the 1-38 contribution to recompute the employer's experience rate. 1-39 (e) Notwithstanding Subsection (a), the commission may not 1-40 compute a new experience rate for an employer or reduce an 1-41 employer's experience rate based on a voluntary contribution made 1-42 by the employer after the expiration of the 120th day of the 1-43 calendar year for which the rate is effective. 1-44 (f) The commission shall deposit a voluntary contribution 1-45 made under this section to the credit of the compensation fund. 1-46 SECTION 2. This Act takes effect September 1, 1997, and 1-47 applies only to computation of an unemployment compensation 1-48 experience rate made by the Texas Workforce Commission on or after 1-49 that date. A rate computed before that date is governed by the law 1-50 in effect on the date that the rate was computed, and the former 1-51 law is continued in effect for that purpose. 1-52 SECTION 3. The importance of this legislation and the 1-53 crowded condition of the calendars in both houses create an 1-54 emergency and an imperative public necessity that the 1-55 constitutional rule requiring bills to be read on three several 1-56 days in each house be suspended, and this rule is hereby suspended. 1-57 * * * * *