2005S0402-1 03/01/05
By: Staples S.B. No. 1177
A BILL TO BE ENTITLED
AN ACT
relating to the establishment, operation, and funding of a skills
development program, including the reduction of and the imposition
of assessments for the unemployment compensation system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (a), Section 204.006, Labor Code, is
amended to read as follows:
(a) A person's contribution rate for the calendar year in
which the person becomes an employer is the greater of:
(1) the rate established for that year for the major
group to which the employer is assigned under Section 204.004, less
one-tenth percent; or
(2) two and six-tenths [seven-tenths] percent.
SECTION 2. Subchapter D, Chapter 204, Labor Code, is
amended by adding Section 204.0625 to read as follows:
Sec. 204.0625. ADJUSTMENT TO REPLENISHMENT TAX RATE. The
replenishment tax rate computed under Section 204.062 shall be
adjusted by subtracting 0.1 from the result of the calculation made
under Section 204.062(a).
SECTION 3. Chapter 204, Labor Code, is amended by adding
Subchapter G to read as follows:
SUBCHAPTER G. SKILLS DEVELOPMENT PROGRAM
Sec. 204.121. SKILLS DEVELOPMENT ASSESSMENT. (a) In
addition to any taxes imposed by this title, there is levied on each
employer paying contributions under this title a separate and
additional assessment of one-tenth percent of wages paid by the
employer. This assessment shall be known as the skills development
assessment.
(b) The commission shall deposit the revenue from the skills
development assessment to the credit of the general revenue account
holding fund 5069, which shall be known as the skills development
holding fund.
(c) The skills development assessment shall be due at the
same time, collected in the same manner, and subject to the same
penalties and interest as other contributions assessed under this
subtitle.
(d) On August 31 of each year, a reimbursement for the
amounts expended in collecting the skills development assessment
shall be charged to the skills development holding fund in
accordance with the cost allocation methodology agreed upon by the
Texas Workforce Commission and the United States Department of
Labor.
(e) On September 1 of each year, the commission shall
determine whether the amount in the compensation fund will be below
100 percent of its floor as computed under Section 204.061 on the
next October 1 computation date. If the amount in the compensation
fund is below 100 percent of its floor, the commission shall
transfer to the compensation fund as much of the amount in the
skills development holding fund as is necessary to raise the amount
in the compensation fund to 100 percent of its floor, up to the
entire amount in the skills development holding fund. The
commission shall transfer any remaining balance in the skills
development holding fund to the skills development operating trust
fund up to the amount appropriated by the legislature for that fund.
Any remaining funds in the skills development holding fund shall be
transferred to the skills development rainy day trust fund up to a
balance not to exceed $100 million. Any funds above the amount
appropriated by the legislature for the skills development
operating trust fund and the amount needed to bring the balance of
the skills development rainy day trust fund up to but not exceeding
$100 million shall be transferred to the compensation fund.
Interest accruing on amounts in the skills development holding fund
shall be deposited quarterly to the credit of the compensation
fund.
Sec. 204.122. SKILLS DEVELOPMENT OPERATING TRUST FUND.
(a) The skills development operating trust fund is established as
a dedicated trust fund in the custody of the comptroller separate
and apart from all public money or funds of this state.
(b) The skills development operating trust fund is composed
of:
(1) amounts transferred into the fund under Section
204.121(e);
(2) gifts, grants, and other donations received by the
commission for the fund; and
(3) any amounts appropriated by the legislature for
the skills development program.
(c) The skills development program is funded by the skills
development assessment.
(d) Amounts in the skills development operating trust fund
shall be used for purposes described in Chapter 303.
(e) The comptroller shall administer the skills development
operating trust fund in accordance with the directions of the
commission. Interest accruing on amounts in the fund shall be
deposited quarterly to the credit of the compensation fund.
Sec. 204.123. SKILLS DEVELOPMENT RAINY DAY TRUST FUND.
(a) The skills development rainy day trust fund is established as
a dedicated trust fund in the custody of the comptroller separate
and apart from all public money or funds of this state. The fund is
composed of:
(1) amounts transferred into the fund under Section
204.121(e); and
(2) gifts, grants, and other donations received by the
commission for the fund.
(b) Amounts in the skills development rainy day trust fund
shall be transferred to the skills development operating trust fund
in years when the funds in the skills development holding fund are
insufficient to meet the legislative appropriation made for the
skills development operating trust fund for that fiscal year.
(c) Amounts in the skills development rainy day trust fund
shall be transferred under Subsection (b) to the skills development
operating trust fund by September 30 of an applicable year.
(d) Interest accruing on amounts in the skills development
rainy day trust fund shall be deposited quarterly to the credit of
the compensation fund.
SECTION 4. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 5. This Act takes effect January 1, 2006.