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A BILL TO BE ENTITLED
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AN ACT
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relating to the transfer of compensation experience for purposes of |
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the Texas Unemployment Compensation Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 204.081, Labor Code, is amended to read |
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as follows: |
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Sec. 204.081. DEFINITIONS. (a) In this subchapter: |
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(1) "Compensation experience" includes the period |
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that benefit wage credits or benefits have been chargeable and any |
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other factor under Subchapter A, B, C, or D necessary to the |
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computation of experience rating under those subchapters. |
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(2) "Person" means an individual, trust, estate, |
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partnership, association, company, or corporation. |
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(3) "Substantially common management or control" |
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exists if, after the acquisition of the organization, trade, or |
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business of an employing unit, the predecessor employing unit |
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continues to: |
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(A) own or manage the organization that conducts |
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the organization, trade, or business; |
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(B) own or manage the assets necessary to conduct |
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the organization, trade, or business; |
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(C) control through security or lease |
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arrangements the assets necessary to conduct the organization, |
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trade, or business; or |
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(D) direct the internal affairs or conduct of the |
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organization, trade, or business. |
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(4) "Substantially common ownership" exists if, on the |
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date of an acquisition of the organization, trade, or business of an |
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employing unit, a shareholder, officer, or other owner of a legal or |
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equitable interest in the predecessor employing unit, or the spouse |
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or a person within the first degree of consanguinity or affinity, as |
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determined under Chapter 573, Government Code, of the shareholder, |
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officer, or other owner: |
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(A) is a shareholder, officer, or other owner of |
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a legal or equitable interest in the successor employing unit; or |
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(B) holds an option to purchase a legal or |
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equitable interest in the successor employing unit. |
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(5) "Transfer of trade or business" includes the |
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transfer of part or all of an employer's workforce to another |
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employer if, as the result of the transfer, the transferring |
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employer no longer performs trade or business with respect to the |
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transferred workforce and the employer to whom the workforce is |
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transferred performs trade or business with respect to the |
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workforce. |
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(6) "Knowingly" means having actual knowledge of or |
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acting with deliberate ignorance of or reckless disregard for the |
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prohibition involved. |
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(b) For purposes of Subsection (a)(4), following a partial |
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acquisition of an organization, trade, or business of an employing |
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unit, substantially common ownership does not exist solely because |
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the predecessor employing unit has the right to repossess the part |
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acquired by the successor employing unit in the event of the |
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successor's failure to complete a condition of the acquisition. |
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SECTION 2. Section 204.085, Labor Code, is amended by |
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adding Subsections (a-1) and (e) to read as follows: |
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(a-1) In the case of a partial acquisition for which the |
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transfer of compensation experience is required under Section |
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204.083, the predecessor employer and successor employer may |
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jointly submit, not later than the second anniversary of the date |
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the partial acquisition was completed, information necessary for |
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making the determination described by Subsection (a). The period |
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for which the information is submitted must be the lesser of: |
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(1) four years; or |
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(2) the length of time the predecessor employer was |
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liable for the payment of a tax under this subtitle. |
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(e) The commission shall include information about the |
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availability of a partial transfer of compensation experience under |
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this subchapter: |
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(1) with the information provided by the commission to |
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each new employer; and |
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(2) on any form, including in electronic format, |
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required to be submitted by an employer to report a change of |
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status. |
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SECTION 3. Sections 204.081(b) and 204.085(a-1), Labor |
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Code, as added by this Act, apply only to a partial acquisition of |
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an organization, trade, or business of an employing unit that |
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occurs on or after the effective date of this Act. An acquisition |
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that occurs before the effective date of this Act is governed by the |
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law in effect on the date the acquisition occurred, and the former |
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law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2015. |
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