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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of certain surplus revenue in the unemployment |
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compensation fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 203.102(a), Labor Code, is amended to |
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read as follows: |
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(a) The obligation trust fund is a dedicated trust fund |
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outside of the state treasury in the custody of the comptroller. |
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The obligation trust fund is composed of: |
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(1) revenue received under Section 203.105; and |
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(2) any surplus revenue transferred from the |
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compensation fund under Section 204.065. |
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SECTION 2. Subchapter D, Chapter 204, Labor Code, is |
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amended by amending Section 204.065 and adding Sections 204.0651 |
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and 204.0652 to read as follows: |
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Sec. 204.065. USE OF SURPLUS [CREDIT]. (a) If the amount |
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in the compensation fund on a tax rate computation date is more than |
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the ceiling of the compensation fund, the commission may use all or |
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part of that surplus to pay outstanding bond obligations as |
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provided by this section or to provide a surplus credit or a surplus |
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credit rate as provided by Sections 204.0651 and 204.0652 to an |
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employer entitled to an experience rate on the computation date. |
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(b) If, on the tax rate computation date, there are |
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outstanding bond obligations as described by Subchapter C, Chapter |
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203, including bond administrative expenses, the commission may |
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transfer all or part of the surplus described by Subsection (a) to |
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the obligation trust fund under Section 203.102 for payment of |
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those obligations. The amount transferred under this subsection |
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may not exceed any amount transferred to the unemployment |
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compensation fund under Section 203.255(b)(2). |
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(c) To the extent that any portion of the surplus is not used |
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to pay bond obligations, the commission shall use that amount to |
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compute: |
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(1) a surplus credit under Section 204.0651; or |
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(2) an annual surplus credit rate under Section |
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204.0652. |
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(d) In determining the use of any surplus, the commission |
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shall exercise the options that the commission determines to be in |
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the best interests of the state's employers and workers. |
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Sec. 204.0651. SURPLUS CREDIT. (a) The commission may use |
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any portion of the surplus under Section 204.065 that is not used to |
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pay bond obligations to compute a surplus credit for an employer |
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entitled to an experience rate on the computation date, [is
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entitled to a credit] to be applied beginning with contributions |
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for the first quarter of the following year. |
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(b) The amount of the surplus credit is computed by |
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multiplying the surplus ratio computed under Section 204.066 by the |
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employer's contributions due for the four calendar quarters ending |
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the preceding September 30. |
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(c) An employer may not apply a surplus credit against |
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delinquent contributions. A surplus credit may not be applied |
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until the employer has paid any delinquent contributions. |
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Sec. 204.0652. SURPLUS CREDIT RATE. (a) If the commission |
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does not compute a surplus credit under Section 204.0651, the |
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commission may use any portion of the surplus under Section 204.065 |
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that is not used to pay bond obligations to compute an annual |
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surplus credit rate for an employer entitled to an experience rate |
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on the computation date. |
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(b) The surplus credit rate is computed by multiplying the |
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surplus ratio computed under Section 204.066 by the employer's |
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general and replenishment tax rates for the preceding year. |
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(c) The surplus credit rate shall be subtracted from the sum |
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of the general and replenishment tax rates. The remainder may not be |
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less than zero. The results shall be rounded to the nearest |
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hundredth. |
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(d) An employer may not receive a surplus credit rate if any |
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delinquent contributions are due on the contribution date, but is |
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eligible for a surplus credit rate beginning on the calendar |
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quarter following the quarter in which the delinquent contributions |
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are paid. |
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SECTION 3. Section 204.066(b), Labor Code, is amended to |
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read as follows: |
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(b) The numerator is computed by subtracting the ceiling of |
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the compensation fund from the balance of the compensation fund and |
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subtracting from that amount any amount used to pay bond |
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obligations under Section 204.065(b). |
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SECTION 4. Subchapter D, Chapter 204, Labor Code, is |
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amended by adding Section 204.067 to read as follows: |
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Sec. 204.067. ADJUSTMENTS TO RATE. The commission, at its |
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own discretion, may adjust a rate under this subchapter. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |