CHAPTER 204. CONTRIBUTIONS
LABOR CODE
TITLE 4. EMPLOYMENT SERVICES AND UNEMPLOYMENT
SUBTITLE A. TEXAS UNEMPLOYMENT COMPENSATION ACT
CHAPTER 204. CONTRIBUTIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 204.001. DEFINITION. In this chapter, "manual" means the
North American Industrial Classification System Manual published
by the United States Office of Management and Budget.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 2001, 77th Leg., ch. 398, Sec. 1, eff. Sept. 1,
2001.
Sec. 204.002. CONTRIBUTION REQUIRED. (a) An employer shall pay
a contribution on wages for employment paid during a calendar
year or the portion of the calendar year in which the employer is
subject to this subtitle.
(b) The contribution shall be paid to the commission in
accordance with rules adopted by the commission.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.003. CONTRIBUTION NOT DEDUCTED FROM WAGES. An employer
may not deduct any part of a contribution from the wages of an
individual in the employer's employ.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.004. ASSIGNMENT TO MAJOR GROUP. The commission shall
assign each employer to a major group in accordance with the
definitions contained in the manual.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.005. ESTABLISHMENT OF MAJOR GROUP CONTRIBUTION RATE.
(a) For each calendar year, the commission shall establish by
industry an average contribution rate for each major group.
(b) The commission shall determine the year's contribution rate
for an industry by averaging the contribution rates paid by
employers in that industry during the preceding year ending on
September 30, as shown by the employment records maintained by
the commission.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.006. INITIAL CONTRIBUTION RATE. (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 of one percent; or
(2) two and six-tenths percent.
(b) A rate established under Subsection (a) applies to the
employer until the date the experience rate computed under
Section 204.041 takes effect for the employer.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch.
1115, Sec. 1, eff. January 1, 2006.
Sec. 204.007. SPECIAL RATE; CERTAIN EMPLOYERS ENGAGED IN
AGRICULTURE. (a) This section applies to an employer identified
by the commission as classified in the manual as:
(1) Number 115114, crop preparation services for market; or
(2) Number 115111, cotton ginning.
(b) An employer subject to this section shall pay a contribution
at the lowest of the following rates:
(1) five and four-tenths percent;
(2) the general tax rate applicable to that employer, with the
deficit tax rate and replenishment tax rate; or
(3) any other tax rate applicable to that employer under this
subtitle.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 2001, 77th Leg., ch. 864, Sec. 1, eff. Sept. 1,
2001.
Sec. 204.008. TIME BENEFITS ARE PAID. For the purpose of this
chapter, benefits are paid at the time the claim for the benefits
is certified by the commission to the comptroller for payment.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.009. APPLICATION TO LABOR AGENT. (a) A labor agent
who furnishes a farm and ranch laborer is liable for the payment
of a tax under this subtitle as if the labor agent were the
employer of the laborer, without regard to any factor used to
determine an employer-employee relationship, including the right
of control.
(b) If a labor agent does not pay the tax in accordance with
this subtitle, a person who contracts with the labor agent for
the services of a farm and ranch laborer is jointly and severally
liable with the labor agent for payment of the tax under this
subtitle as an employer.
(c) A labor agent shall notify each person with whom the labor
agent contracts whether the labor agent pays the tax under this
subtitle.
(d) A labor agent who pays the tax shall present evidence of
payment to each person with whom the labor agent contracts.
(e) In this section, "labor agent" means a person who is a farm
labor contractor under the Migrant and Seasonal Agricultural
Worker Protection Act (29 U.S.C. Section 1801 et seq.).
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.010. PAYMENT OF CONTRIBUTIONS BY INDIAN TRIBES. An
Indian tribe that is subject to this subtitle shall pay
contributions under the same terms and conditions as any other
subject employer unless the Indian tribe elects under Chapter 205
to make reimbursements for benefits instead of contributions.
Added by Acts 2001, 77th Leg., ch. 518, Sec. 5, eff. June 11,
2001.
SUBCHAPTER B. CHARGEBACKS
Sec. 204.021. CHARGEBACKS. (a) The amount of benefits paid to
a claimant for a benefit year shall be charged to the accounts of
each of the claimant's employers during the claimant's base
period. The chargebacks of an employer for a calendar quarter are
the benefits paid to all of the employer's employees or former
employees during that quarter.
(b) The chargeback of benefits of a claimant who has two or more
employers during the claimant's base period is allocated among
those employers according to the proportion of the total of the
claimant's benefit wage credits paid during the base period by
each employer.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.022. EXCLUSIONS FROM CHARGEBACKS. (a) Benefits
computed on benefit wage credits of an employee or former
employee may not be charged to the account of an employer if the
employee's last separation from the employer's employment before
the employee's benefit year:
(1) was required by a federal statute;
(2) was required by a statute of this state or an ordinance of a
municipality of this state;
(3) would have disqualified the employee under Section 207.044,
207.045, 207.051, or 207.053 if the employment had been the
employee's last work;
(4) imposes a disqualification under Section 207.044, 207.045,
207.051, or 207.053;
(5) was caused by a medically verifiable illness of the employee
or the employee's minor child;
(6) was based on a natural disaster that results in a disaster
declaration by the president of the United States under the
Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. Section 5121 et seq.), if the employee would have been
entitled to unemployment assistance benefits under Section 410 of
that act (42 U.S.C. Section 5177) had the employee not received
state unemployment compensation benefits;
(7) was caused by a natural disaster, fire, flood, or explosion
that causes employees to be separated from one employer's
employment;
(8) was based on a disaster that results in a disaster
declaration by the governor under Section 418.014, Government
Code;
(9) resulted from the employee's resigning from partial
employment to accept other employment that the employee
reasonably believed would increase the employee's weekly wage;
(10) was caused by the employer being called to active military
service in any branch of the United States armed forces on or
after January 1, 2003;
(11) resulted from the employee leaving the employee's workplace
to protect the employee from family violence or stalking as
evidenced by:
(A) an active or recently issued protective order documenting
family violence against, or the stalking of, the employee or the
potential for family violence against, or the stalking of, the
employee;
(B) a police record documenting family violence against, or the
stalking of, the employee; or
(C) a physician's statement or other medical documentation that
describes the family violence against the employee that:
(i) is recorded in any form or medium that identifies the
employee as the patient; and
(ii) relates to the history, diagnosis, treatment, or prognosis
of the patient;
(12) resulted from a move from the area of the employee's
employment that:
(A) was made with the employee's spouse who is a member of the
armed forces of the United States; and
(B) resulted from the spouse's permanent change of station of
longer than 120 days or a tour of duty of longer than one year;
(13) was caused by the employee being unable to perform the work
as a result of a disability for which the employee is receiving
disability insurance benefits under 42 U.S.C. Section 423; or
(14) resulted from the employee leaving the employee's workplace
to care for the employee's terminally ill spouse as evidenced by
a physician's statement or other medical documentation, but only
if no reasonable, alternative care was available.
(b) For the purpose of this section, if an employee's last
separation from the employment of an employer is a separation for
which the employee was determined to have been disqualified under
Section 207.048, the employee's last separation from the
employment of that employer is considered to be the next later
separation from the employment of that employer.
(c) Except as provided by law, evidence regarding an employee
described by Subsection (a)(11) may not be disclosed to any
person without the consent of the employee.
(d) For purposes of Subsection (a)(11):
(1) "Family violence" has the meaning assigned by Section
71.004, Family Code.
(2) "Stalking" means conduct described by Section 42.072, Penal
Code.
(e) Benefits may not be charged to the account of an employer,
regardless of whether the liability for the chargeback arises in
the employee's current benefit year or in a subsequent benefit
year, if the employee's last separation from the employer's
employment before the employee's benefit year was or would have
been excepted from disqualification under Section 207.052(b).
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 1997, 75th Leg., ch. 93, Sec. 1, eff. Sept. 1,
1997; Acts 2003, 78th Leg., ch. 77, Sec. 1, eff. May 15, 2003;
Acts 2003, 78th Leg., ch. 526, Sec. 1, eff. June 20, 2003; Acts
2003, 78th Leg., ch. 817, Sec. 7A.01, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
39, Sec. 1, eff. May 9, 2005.
Acts 2005, 79th Leg., Ch.
493, Sec. 2, eff. June 17, 2005.
Acts 2005, 79th Leg., Ch.
728, Sec. 12.0015, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 10.001, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 10.002, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1180, Sec. 1, eff. June 15, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1180, Sec. 2, eff. June 15, 2007.
Sec. 204.023. NOTICE SENT AT TIME BENEFITS PAID. The commission
shall mail to an employer a notice of the employer's maximum
potential chargebacks when benefits are first paid if:
(1) notice of an initial claim has not already been mailed to
the employer under Section 208.002; and
(2) the employer's account is potentially chargeable with
benefits as a result of the initial claim and payment of
benefits.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.024. PROTEST OF POTENTIAL CHARGEBACKS. To protest a
potential chargeback, an employer to whom notice is mailed under
Section 204.023 must mail to the commission at Austin a protest
not later than the 30th day after the date the notice was mailed
or the right to protest the chargeback is waived. The protest
must include a statement of the facts supporting the grounds of
the protest.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 1999, 76th Leg., ch. 773, Sec. 1, eff. Sept. 1,
1999.
Sec. 204.025. DECISION AND ADMINISTRATIVE REVIEW OF PROTEST.
(a) An examiner promptly shall decide the issues involved in a
timely protest filed under Section 204.024 and shall mail a
notice of the decision to the protesting employer.
(b) The examiner's decision becomes final 14 days from the date
the examiner mails the notice unless before that date the
employer mails to the commission at Austin a written appeal from
the examiner's decision.
(c) Administrative review under this section must be in
accordance with the rules of the commission.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.026. JUDICIAL REVIEW OF PROTEST. (a) An employer may
appeal an administrative determination made under Section 204.025
after the employer has exhausted the employer's administrative
remedies, not including a motion for rehearing, before the
commission. An appeal must be filed within the time prescribed by
Sections 212.153 and 212.201 for commission decisions on
benefits.
(b) An appeal to a court relating to a chargeback has the same
venue and jurisdiction as a suit to collect contributions and
penalties under this subtitle.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.027. NOTICE, PROTEST, AND APPEAL--NOTICE SENT AT TIME
OF CLAIM. (a) If notice of the claim was sent to an employer
under Section 208.002, the commission shall mail the employer a
notice of the amount of the employer's potential chargeback
resulting from the claim.
(b) The employer may protest a clerical or machine error
relating to the amount of the chargeback not later than the 14th
day after the date the notice was mailed.
(c) The commission shall mail a decision on the protest to the
employer.
(d) An employer may appeal the decision on the protest not later
than the 14th day after the date notice of the decision is mailed
to the employer.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
SUBCHAPTER C. GENERAL TAX RATE FOR EXPERIENCE-RATED EMPLOYERS
Sec. 204.041. TAX ON EXPERIENCE-RATED EMPLOYERS. (a) Each
employer whose account has been chargeable with benefits
throughout four or more consecutive calendar quarters shall pay
contributions at the rate prescribed by the table in Section
204.042 or a table extended under Section 204.043.
(b) Except as provided by Subsection (c), a change in the rate
applicable to an employer takes effect on January 1.
(c) The rate for an employer who becomes subject to
contributions under Subsection (a) for the first time at the
close of a calendar quarter takes effect on the first day of the
next calendar quarter and continues in effect until the January 1
of the next calendar year.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.042. TAX RATE TABLE.
If the
replenishment
ratio is
and the employer's benefit ratio does not exceed:
1.00
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
. . .
1.20
0.00
0.08
0.16
0.25
0.33
0.41
0.50
0.58
0.66
0.75
1.21
0.00
0.08
0.16
0.24
0.33
0.41
0.49
0.57
0.66
0.74
1.22
0.00
0.08
0.16
0.24
0.32
0.40
0.49
0.57
0.65
0.73
1.23
0.00
0.08
0.16
0.24
0.32
0.40
0.48
0.56
0.65
0.73
1.24
0.00
0.08
0.16
0.24
0.32
0.40
0.48
0.56
0.64
0.72
1.25
0.00
0.08
0.16
0.24
0.32
0.40
0.48
0.56
0.64
0.72
1.26
0.00
0.07
0.15
0.23
0.31
0.39
0.47
0.55
0.63
0.71
1.27
0.00
0.07
0.15
0.23
0.31
0.39
0.47
0.55
0.62
0.70
1.28
0.00
0.07
0.15
0.23
0.31
0.39
0.46
0.54
0.62
0.70
1.29
0.00
0.07
0.15
0.23
0.31
0.38
0.46
0.54
0.62
0.69
1.30
0.00
0.07
0.15
0.23
0.30
0.38
0.46
0.53
0.61
0.69
1.31
0.00
0.07
0.15
0.22
0.30
0.38
0.45
0.53
0.61
0.68
1.32
0.00
0.07
0.15
0.22
0.30
0.37
0.45
0.53
0.60
0.68
1.33
0.00
0.07
0.15
0.22
0.30
0.37
0.45
0.53
0.60
0.67
1.34
0.00
0.07
0.14
0.22
0.29
0.37
0.44
0.52
0.59
0.67
1.35
0.00
0.07
0.14
0.22
0.29
0.37
0.44
0.51
0.59
0.66
1.36
0.00
0.07
0.14
0.22
0.29
0.36
0.44
0.51
0.58
0.66
1.37
0.00
0.07
0.14
0.21
0.29
0.36
0.43
0.51
0.58
0.65
1.38
0.00
0.07
0.14
0.21
0.28
0.36
0.43
0.50
0.57
0.65
1.39
0.00
0.07
0.14
0.21
0.28
0.35
0.43
0.50
0.57
0.64
1.40
0.00
0.07
0.14
0.21
0.28
0.35
0.42
0.50
0.57
0.64
1.41
0.00
0.07
0.14
0.21
0.28
0.35
0.42
0.49
0.56
0.63
1.42
0.00
0.07
0.14
0.21
0.28
0.35
0.42
0.49
0.56
0.63
1.43
0.00
0.06
0.13
0.20
0.27
0.34
0.41
0.48
0.55
0.62
1.44
0.00
0.06
0.13
0.20
0.27
0.34
0.41
0.48
0.55
0.62
1.45
0.00
0.06
0.13
0.20
0.27
0.34
0.41
0.48
0.55
0.62
1.46
0.00
0.06
0.13
0.20
0.27
0.34
0.41
0.47
0.54
0.62
1.47
0.00
0.06
0.13
0.20
0.27
0.34
0.40
0.47
0.54
0.61
1.48
0.00
0.06
0.13
0.20
0.27
0.33
0.40
0.47
0.54
0.60
1.49
0.00
0.06
0.13
0.20
0.26
0.33
0.40
0.46
0.53
0.60
1.50
0.00
0.06
0.13
0.20
0.26
0.33
0.40
0.46
0.53
0.60
1.51
0.00
0.06
0.13
0.19
0.26
0.33
0.39
0.46
0.52
0.59
1.52
0.00
0.06
0.13
0.19
0.26
0.32
0.39
0.46
0.52
0.59
1.53
0.00
0.06
0.13
0.19
0.26
0.32
0.39
0.45
0.52
0.58
1.54
0.00
0.06
0.12
0.19
0.25
0.32
0.38
0.45
0.51
0.58
1.55
0.00
0.06
0.12
0.19
0.25
0.32
0.38
0.45
0.51
0.58
1.56
0.00
0.06
0.12
0.19
0.25
0.32
0.38
0.44
0.51
0.57
1.57
0.00
0.06
0.12
0.19
0.25
0.31
0.38
0.44
0.50
0.57
1.58
0.00
0.06
0.12
0.18
0.25
0.31
0.37
0.44
0.50
0.56
1.59
0.00
0.06
0.12
0.18
0.25
0.31
0.37
0.44
0.50
0.56
1.60
0.00
0.06
0.12
0.18
0.25
0.31
0.37
0.43
0.50
0.56
the employer's tax rate is:
0.00%
0.1%
0.2%
0.3%
0.4%
0.5%
0.6%
0.7%
0.8%
0.9%
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.043. EXTENSION OF TAX RATE TABLE UP TO SIX PERCENT.
(a) The commission shall extend the table in Section 204.042 by
providing additional replenishment ratios, benefit ratios, and
tax rates up to six percent.
(b) In extending the table in Section 204.042, the commission
shall use the same mathematical principles used in constructing
the table.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.044. BENEFIT RATIO. (a) The benefit ratio for an
employer is equal to the total amounts of the employer's
chargebacks for the 36 consecutive months preceding the tax rate
computation date divided by the total of the employer's taxable
wages for the same months.
(b) The benefit ratio of an employer whose account has been
chargeable with benefits for less than 36 consecutive months but
throughout each month of at least four calendar quarters is equal
to the total amount of the employer's chargebacks for those
months preceding the tax rate computation date divided by the
total of the employer's taxable wages for those months.
(c) In computing the benefit ratio, only taxable wages on which
contributions have been paid to the commission not later than the
last day of the month in which the computation date occurs may be
used.
(d) In computing the benefit ratio for employers who are subject
only to Section 201.027 and who have elected under that section
to file reports annually, only taxable wages for which
contributions have been paid to the commission on or before
January 31 may be used.
(e) The benefit ratio is expressed as a percentage.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 2001, 77th Leg., ch. 487, Sec. 2, eff. Sept. 1,
2001.
Sec. 204.045. REPLENISHMENT RATIO. (a) The replenishment ratio
for a calendar year is computed by:
(1) dividing the numerator described in Subsection (b) by the
denominator described in Subsection (c); and
(2) rounding the result to the nearest hundredth.
(b) The numerator is equal to the amount of benefits paid during
the 12 months ending September 30 of the preceding year that are
effectively charged to employers' accounts, plus one-half of the
amount of benefits paid during that period that are not
effectively charged to employers' accounts. In computing the
amount of the benefits charged or paid, the commission shall not
include the amount of:
(1) a canceled benefit warrant;
(2) that part of a benefit that has been overpaid and been
repaid; or
(3) benefits paid that are repayable from a reimbursing
employer, the federal government, or another governmental entity.
(c) The denominator is the total amount of benefits paid during
the 12 months ending September 30 of the preceding year that are
effectively charged to employers' accounts.
(d) The commission shall compute the replenishment ratio for
each calendar year before the date the first contribution payment
with respect to wages for employment paid in that year is due.
Once computed for the year, the replenishment ratio may not be
adjusted.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.046. EFFECTIVELY CHARGED BENEFITS. (a) A benefit is
not effectively charged if it is:
(1) not charged to an employer's account;
(2) charged to an employer's account after the employer has
reached maximum liability because of the maximum tax rate; or
(3) charged to an employer's account but considered not
collectible.
(b) A benefit not described in Subsection (a) is effectively
charged.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.047. TAX RATE COMPUTATION DATE FOR EXPERIENCE TAX RATE.
(a) The computation date for the tax rate for the contribution
under Section 204.041 is October 1 of the year preceding the
calendar year in which the rate takes effect, except as provided
by Subsections (b) and (c).
(b) The computation date for the tax rate for the contribution
under Section 204.041(a) for an employer who becomes subject to
that tax rate for the first time is the date on which the rate
takes effect under Section 204.041(c).
(c) An employer who reports annually under Section 201.027 has
the same computation date as other employers, but the final
computation of a rate for the employer may not occur before
February 1 of the year following the computation date.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 2001, 77th Leg., ch. 487, Sec. 3, eff. Sept. 1,
2001.
Sec. 204.048. VOLUNTARY CONTRIBUTIONS. (a) Notwithstanding any
other provision of this subtitle, an employer for whom the
commission has computed an experience rate as of October 1 of a
calendar year that is effective for the succeeding calendar year,
as provided by Section 204.047(a), may elect to make a voluntary
payment of contributions to the commission.
(b) The amount of a voluntary contribution may be equal to all
or part of the employer's chargebacks during the period ending
September 30 that are used in computing the employer's experience
rate for the succeeding calendar year. The commission shall
allocate a voluntary contribution of less than the full amount of
the employer's chargebacks first to the employer's most recent
chargebacks.
(c) On receipt of a voluntary contribution during the period
prescribed by Subsection (d), the commission shall reduce the
employer's chargebacks by an amount equal to the contribution and
shall recompute the experience rate applicable to that employer
for the succeeding calendar year.
(d) An employer who elects to make a voluntary contribution for
the recomputation of the employer's experience rate must make the
contribution as prescribed by rules adopted by the commission.
The employer may not revoke the contribution after the date on
which the commission uses the contribution to recompute the
employer's experience rate.
(e) Notwithstanding Subsection (a), the commission may not
compute a new experience rate for an employer or reduce an
employer's experience rate based on a voluntary contribution made
by the employer after the expiration of the 120th day of the
calendar year for which the rate is effective.
(f) The commission shall deposit a voluntary contribution made
under this section to the credit of the compensation fund.
Added by Acts 1997, 75th Leg., ch. 383, Sec. 1, eff. Sept. 1,
1997. Amended by Acts 2003, 78th Leg., ch. 934, Sec. 1, eff.
Sept. 1, 2003.
SUBCHAPTER D. ADJUSTMENTS TO TAX RATE FOR EXPERIENCE-RATED
EMPLOYERS
Sec. 204.061. CEILING AND FLOOR OF COMPENSATION FUND. In
computing the tax rates under this subchapter:
(1) the ceiling of the compensation fund is two percent of the
total taxable wages for the four calendar quarters ending the
preceding June 30; and
(2) the floor of the compensation fund is equal to the greater
of:
(A) $400 million; or
(B) one percent of the total taxable wages for the four calendar
quarters ending the preceding June 30.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.062. REPLENISHMENT TAX. (a) In addition to the
general tax computed under Subchapter C, an employer entitled to
an experience rate shall pay a replenishment tax at the rate
computed by:
(1) dividing the numerator described by Subsection (b) by the
denominator described by Subsection (c);
(2) multiplying that result by 100 to obtain a percentage; and
(3) rounding that result to the nearest hundredth.
(b) The numerator is an amount equal to one-half of the amount
of benefits paid by all employers during the 12 months ending the
preceding September 30 that are not effectively charged.
(c) The denominator is an amount equal to the taxable wages paid
by all employers during the four quarters ending the preceding
June 30.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 1995, 74th Leg., ch. 76, Sec. 9.31, eff. Sept. 1,
1995.
Sec. 204.0625. ADJUSTMENT TO REPLENISHMENT TAX RATE. On and
after January 1, 2006, the replenishment tax rate computed under
Section 204.062 shall be adjusted to a rate computed by
subtracting one-tenth of one percent from the percentage computed
under Section 204.062(a).
Added by Acts 2005, 79th Leg., Ch.
1115, Sec. 2, eff. June 18, 2005.
Sec. 204.063. DEFICIT ASSESSMENT. (a) If the amount of money
in the compensation fund on a tax rate computation date is less
than the floor of the compensation fund, a deficit tax rate is
added for the next calendar year to the general tax rate for each
employer entitled to an experience rate for that year.
(b) The deficit tax rate for a calendar year is the lesser of:
(1) the rate computed by multiplying the deficit ratio, as
computed under Section 204.064, by the sum of the employer's
general tax rate, the replenishment tax rate, and the deficit tax
rate for the previous calendar year; or
(2) two percent.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 2003, 78th Leg., ch. 317, Sec. 6, eff. June 18,
2003; Acts 2003, 78th Leg., ch. 817, Sec. 6.06, eff. June 20,
2003.
Sec. 204.064. DEFICIT RATIO. (a) The deficit ratio is computed
by:
(1) dividing the numerator computed under Subsection (b) by the
denominator described by Subsection (c); and
(2) rounding that result to the nearest hundredth.
(b) The numerator is computed by subtracting the balance of the
compensation fund, considering any federal advance, from the
floor of the compensation fund.
(c) The denominator is the amount of contributions due under the
general tax rate and the replenishment rate for the four calendar
quarters ending the preceding September 30 from employers
entitled to an experience rate on the tax rate computation date.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 2003, 78th Leg., ch. 317, Sec. 7, eff. June 18,
2003; Acts 2003, 78th Leg., ch. 817, Sec. 6.07, eff. June 20,
2003.
Sec. 204.065. USE OF SURPLUS. (a) If the amount in the
compensation fund on a tax rate computation date is more than the
ceiling of the compensation fund, the commission may use all or
part of that surplus to pay outstanding bond obligations as
provided by this section or to provide a surplus credit or a
surplus credit rate as provided by Sections 204.0651 and 204.0652
to an employer entitled to an experience rate on the computation
date.
(b) If, on the tax rate computation date, there are outstanding
bond obligations as described by Subchapter C, Chapter 203,
including bond administrative expenses, the commission may
transfer all or part of the surplus described by Subsection (a)
to the obligation trust fund under Section 203.102 for payment of
those obligations. The amount transferred under this subsection
may not exceed any amount transferred to the unemployment
compensation fund under Section 203.255(b)(2).
(c) To the extent that any portion of the surplus is not used to
pay bond obligations, the commission shall use that amount to
compute:
(1) a surplus credit under Section 204.0651; or
(2) an annual surplus credit rate under Section 204.0652.
(d) In determining the use of any surplus, the commission shall
exercise the options that the commission determines to be in the
best interests of the state's employers and workers.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
34, Sec. 2, eff. May 4, 2007.
Sec. 204.0651. SURPLUS CREDIT. (a) The commission may use any
portion of the surplus under Section 204.065 that is not used to
pay bond obligations to compute a surplus credit for an employer
entitled to an experience rate on the computation date, to be
applied beginning with contributions for the first quarter of the
following year.
(b) The amount of the surplus credit is computed by multiplying
the surplus ratio computed under Section 204.066 by the
employer's contributions due for the four calendar quarters
ending the preceding September 30.
(c) An employer may not apply a surplus credit against
delinquent contributions. A surplus credit may not be applied
until the employer has paid any delinquent contributions.
Added by Acts 2007, 80th Leg., R.S., Ch.
34, Sec. 2, eff. May 4, 2007.
Sec. 204.0652. SURPLUS CREDIT RATE. (a) If the commission does
not compute a surplus credit under Section 204.0651, the
commission may use any portion of the surplus under Section
204.065 that is not used to pay bond obligations to compute an
annual surplus credit rate for an employer entitled to an
experience rate on the computation date.
(b) The surplus credit rate is computed by multiplying the
surplus ratio computed under Section 204.066 by the employer's
general and replenishment tax rates for the preceding year.
(c) The surplus credit rate shall be subtracted from the sum of
the general and replenishment tax rates. The remainder may not
be less than zero. The results shall be rounded to the nearest
hundredth.
(d) An employer may not receive a surplus credit rate if any
delinquent contributions are due on the contribution date, but is
eligible for a surplus credit rate beginning on the calendar
quarter following the quarter in which the delinquent
contributions are paid.
Added by Acts 2007, 80th Leg., R.S., Ch.
34, Sec. 2, eff. May 4, 2007.
Sec. 204.066. SURPLUS RATIO. (a) The surplus ratio is computed
by:
(1) dividing the numerator computed under Subsection (b) by the
denominator described by Subsection (c); and
(2) rounding that result to the nearest hundredth.
(b) The numerator is computed by subtracting the ceiling of the
compensation fund from the balance of the compensation fund and
subtracting from that amount any amount used to pay bond
obligations under Section 204.065(b).
(c) The denominator is the amount of contributions due for the
four calendar quarters ending the preceding September 30 from
employers entitled to an experience rate on the tax rate
computation date.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
34, Sec. 3, eff. May 4, 2007.
Sec. 204.067. ADJUSTMENTS TO RATE. The commission, at its own
discretion, may adjust a rate under this subchapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
34, Sec. 4, eff. May 4, 2007.
SUBCHAPTER E. ACQUISITION OF EXPERIENCE-RATED EMPLOYER
Sec. 204.081. DEFINITIONS. In this subchapter:
(1) "Compensation experience" includes the period that benefit
wage credits or benefits have been chargeable and any other
factor under Subchapter A, B, C, or D necessary to the
computation of experience rating under those subchapters.
(2) "Person" means an individual, trust, estate, partnership,
association, company, or corporation.
(3) "Substantially common management or control" exists if,
after the acquisition of the organization, trade, or business of
an employing unit, the predecessor employing unit continues to:
(A) own or manage the organization that conducts the
organization, trade, or business;
(B) own or manage the assets necessary to conduct the
organization, trade, or business;
(C) control through security or lease arrangements the assets
necessary to conduct the organization, trade, or business; or
(D) direct the internal affairs or conduct of the organization,
trade, or business.
(4) "Substantially common ownership" exists if, on the date of
an acquisition of the organization, trade, or business of an
employing unit, a shareholder, officer, or other owner of a legal
or equitable interest in the predecessor employing unit, or the
spouse or a person within the first degree of consanguinity or
affinity, as determined under Chapter 573, Government Code, of
the shareholder, officer, or other owner:
(A) is a shareholder, officer, or other owner of a legal or
equitable interest in the successor employing unit; or
(B) holds an option to purchase a legal or equitable interest in
the successor employing unit.
(5) "Transfer of trade or business" includes the transfer of
part or all of an employer's workforce to another employer if, as
the result of the transfer, the transferring employer no longer
performs trade or business with respect to the transferred
workforce and the employer to whom the workforce is transferred
performs trade or business with respect to the workforce.
(6) "Knowingly" means having actual knowledge of or acting with
deliberate ignorance of or reckless disregard for the prohibition
involved.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch.
1315, Sec. 2, eff. September 1, 2005.
Sec. 204.082. EFFECTIVE DATE OF ACQUISITION. For purposes of
this subchapter, an acquisition is effective on the first day of
the calendar quarter in which the acquisition occurs.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.083. ACQUISITION OF ALL OR PART OF EXPERIENCE-RATED
ORGANIZATION, TRADE, OR BUSINESS; TRANSFER OF COMPENSATION
EXPERIENCE. The transfer of the predecessor employer's
compensation experience to the successor employer is required if
the predecessor employing unit transfers, through any means, all
or part of the organization, trade, or business, to the successor
employer and there is substantially common management or control
or substantially common ownership of the entities.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(27), eff.
Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch.
1315, Sec. 3, eff. September 1, 2005.
Sec. 204.084. ACQUISITION OF PART OF EXPERIENCE-RATED
ORGANIZATION, TRADE, OR BUSINESS: APPROVAL OF TRANSFER OF
COMPENSATION EXPERIENCE WITHOUT SUBSTANTIALLY COMMON MANAGEMENT
OR CONTROL OR SUBSTANTIALLY COMMON OWNERSHIP; CONTRIBUTION RATE.
(a) If an employing unit acquires or otherwise receives, through
any means, part of the organization, trade, or business of an
employer, and transfer of compensation experience is not required
by Section 204.083, the successor employing unit and the
predecessor employer may jointly make a written application to
the commission to transfer the compensation experience of the
predecessor employer that is attributable to the part of the
organization, trade, or business acquired to the successor
employing unit.
(b) If the acquisition results from the death of the predecessor
employer, the requirement that the predecessor employer join in
the application for transfer of the compensation experience does
not apply.
(c) Except as provided by Subsection (d), the commission shall
approve an application if:
(1) immediately after the acquisition the successor employing
unit continues operation of substantially the same part of the
organization, trade, or business acquired;
(2) the predecessor employer waives in writing all rights to an
experience rating computed on the compensation experience
attributable to the part of the organization, trade, or business
acquired by the successor employing unit, unless the acquisition
results from the death of the predecessor employer;
(3) a definitely identifiable and segregable part of the
predecessor employer's compensation experience is attributable to
the part of the organization, trade, or business acquired;
(4) for a successor employing unit that is not an employer at
the time of the acquisition, the successor employing unit elects
to become an employer on the date of the acquisition or otherwise
becomes an employer during the year in which the acquisition
occurs;
(5) the application was filed with the commission not later than
the first anniversary of the effective date of the acquisition;
and
(6) the applicants have shown that:
(A) the acquired part of the organization, trade, or business is
capable of operating independently and separately from the
predecessor employer; and
(B) the wages attributable to the acquired part of the
organization, trade, or business are solely attributable to
services provided on behalf of the acquired part of the
organization, trade, or business.
(d) The commission shall deny a transfer of compensation
experience under this section if the commission determines that
the transfer was done primarily to qualify for a reduced
compensation experience rating by either:
(1) circumventing the experience rating system; or
(2) manipulating the experience rating system by minimizing the
impact of chargebacks to the predecessor's or successor's tax
account.
(e) A successor employing unit that acquires compensation
experience under this section and that is an experience-rated
employer on the date of and during the period preceding the
acquisition shall pay contributions from the date of the
acquisition until the end of the calendar year in which the
acquisition occurred at the rate applicable to the successor
employing unit on the date of acquisition.
(f) A successor employing unit that acquires compensation
experience under this section and that is not an experience-rated
employer on the date of the acquisition shall pay contributions
from the date of the acquisition until the next contribution rate
computation date at the highest rate applicable at the time of
the acquisition to any predecessor employing unit that is a party
to the acquisition. If the commission determines that the
transfer was accomplished solely or primarily for the purpose of
obtaining a lower contribution rate, the successor employing
unit's contribution rate must be determined under Section
204.006.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 2003, 78th Leg., ch. 817, Sec. 7.01, eff. Sept.
1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
1315, Sec. 4, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch.
1315, Sec. 5, eff. September 1, 2005.
Sec. 204.085. CONTRIBUTION RATE FOR SUCCESSOR EMPLOYERS WHEN
SUBSTANTIALLY COMMON MANAGEMENT OR CONTROL OR SUBSTANTIALLY
COMMON OWNERSHIP EXISTS; CERTAIN PARTIAL ACQUISITIONS. (a)
Except as provided by Subsection (d), in the case of a partial
acquisition for which the transfer of compensation experience is
required under Section 204.083, if the commission determines that
the part of the organization, trade, or business transferred is
definitely identifiable and segregable and that compensation
experience can be specifically attributed to that part of the
organization, trade, or business, the contribution rate of the
successor must be computed:
(1) based on the successor employing unit's experience for the
part of the organization, trade, or business that was not
acquired by the transfer; and
(2) as provided by this section for the part of the
organization, trade, or business acquired through the transfer.
(b) A successor employing unit that acquires compensation
experience under Section 204.083 and is an experience-rated
employer on the date of the acquisition shall pay contributions
from the date of the acquisition until the end of the calendar
year in which the acquisition occurred at a rate computed by
using the compensation experience transferred from the
predecessor employer and that of the successor employing unit.
(c) A successor employing unit that acquires compensation
experience under Section 204.083 and is not an experience-rated
employer on the date of the acquisition shall pay contributions
from the date of the acquisition until the end of the calendar
year at the highest rate applicable at the time of the
acquisition to any predecessor employer who is a party to the
acquisition.
(d) If the commission determines that the transfer was
accomplished solely or primarily for the purpose of obtaining a
lower contribution rate, the successor's contribution rate must
be determined under Section 204.006.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch.
1315, Sec. 6, eff. September 1, 2005.
Sec. 204.0851. CONTRIBUTION RATE FOR SUCCESSOR EMPLOYERS WHEN
SUBSTANTIALLY COMMON MANAGEMENT OR CONTROL OR SUBSTANTIALLY
COMMON OWNERSHIP EXISTS; OTHER ACQUISITIONS. (a) For a transfer
of compensation experience required by Section 204.083 other than
a transfer described by Section 204.085(a), the contribution rate
shall be computed as provided by this section.
(b) A successor employing unit that acquires compensation
experience under Section 204.083 and is an experience-rated
employer on the date of the acquisition shall pay contributions
from the date of the acquisition until the end of the calendar
year in which the acquisition occurred at the rate computed by
using the prior 36-month combined compensation experience of the
predecessor employing unit and the successor employing unit on
the date of the acquisition.
(c) A successor employing unit that acquires compensation
experience under Section 204.083 and is not an experience-rated
employer on the date of the acquisition shall pay contributions
from the date of the acquisition until the end of the calendar
year at the highest rate applicable at the time of the
acquisition to any predecessor employing unit that is a party to
the acquisition.
(d) The contribution rate for experience-rated and
nonexperience-rated successor employing units shall, for the
years following the year of acquisition, be computed as follows:
(1) for the first year following acquisition, the successor
employing unit's compensation experience plus the predecessor
employing unit's 24-month compensation experience ending on
September 30 preceding the year of acquisition, combined with the
predecessor employing unit's compensation experience from that
date to the date of the acquisition;
(2) for the second year following acquisition, the successor
employing unit's compensation experience plus the predecessor
employing unit's 12-month compensation experience ending on
September 30 preceding the year of acquisition, combined with the
predecessor employing unit's compensation experience from that
date to the date of the acquisition;
(3) for the third year following acquisition, compensation
experience available to the successor employing unit plus the
predecessor employing unit's compensation experience from
September 30 preceding the year of acquisition to the date of the
acquisition; and
(4) for years subsequent to the acquisition and to the transfer
of compensation experience required under Section 204.083, the
predecessor employing unit's contribution rate is computed
without regard to any transfer of compensation experience
required by that section.
Added by Acts 2005, 79th Leg., Ch.
1315, Sec. 7, eff. September 1, 2005.
Sec. 204.086. COLLECTION OF CONTRIBUTION, PENALTY, OR INTEREST
FROM SUCCESSOR EMPLOYER. (a) An individual or employing unit
that acquires the organization, trade, or business or
substantially all of the assets of an organization, trade, or
business of an employer who, at the time of the acquisition, is
indebted to the commission for a contribution, a penalty, or
interest, is liable to the commission for prompt payment of the
contribution, penalty, or interest.
(b) If not paid, the commission may bring an action under
Chapter 213 for the collection of a contribution, a penalty, or
interest as though the contribution, penalty, or interest had
been incurred by the successor employer.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 2001, 77th Leg., ch. 398, Sec. 2, eff. Sept. 1,
2001.
Sec. 204.087. OFFENSE; CRIMINAL AND CIVIL PENALTIES. (a) A
person commits an offense if the person recklessly, knowingly, or
intentionally defeats, evades, or circumvents a provision of this
subchapter or if the person recklessly, knowingly, or
intentionally attempts, aids and abets an attempt, or advises
another to defeat, evade, or circumvent a provision of this
subchapter.
(b) An employer who commits an offense under this section may be
assessed a civil penalty in an amount equal to two percent of
wages as defined in Subchapter F, Chapter 201, for the year
during which the violation occurred and for the three years
following that year.
(c) A person, other than the employer, who commits an offense
under this section may be assessed a civil penalty of not more
than $5,000 for a first offense and not more than $5,000 for each
subsequent offense.
(d) A civil penalty assessed under Subsection (b) or (c) shall
be deposited in the special administration fund established under
Section 203.201.
(e) An offense under this section is a Class A misdemeanor.
Added by Acts 2005, 79th Leg., Ch.
1315, Sec. 7, eff. September 1, 2005.
Sec. 204.088. PROCEDURES TO IDENTIFY EXPERIENCE-RATING
TRANSFERS. The commission by rule shall establish procedures to
identify the transfer or acquisition of a business for the
purposes of this subchapter.
Added by Acts 2005, 79th Leg., Ch.
1315, Sec. 7, eff. September 1, 2005.
Sec. 204.089. CONFORMITY WITH FEDERAL REGULATIONS. The
commission shall administer this subchapter in conformity with
any regulations prescribed by the United States Secretary of
Labor relating to experience-rating transfers.
Added by Acts 2005, 79th Leg., Ch.
1315, Sec. 7, eff. September 1, 2005.
SUBCHAPTER F. SPECIAL CONTRIBUTIONS FOR GOVERNMENTAL EMPLOYERS
Sec. 204.101. CONTRIBUTION FROM GOVERNMENTAL EMPLOYER. A
governmental employer shall pay a contribution in accordance with
this subchapter and rules adopted by the commission on wages paid
for employment during each year or portion of the year in which
the governmental employer is subject to this subtitle.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.102. CONTRIBUTION NOT DEDUCTION FROM WAGES. A
contribution paid by a governmental employer may not be deducted
from the wages of individuals in the employer's employ.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.103. RATE OF CONTRIBUTIONS FOR GOVERNMENTAL EMPLOYERS.
(a) The rate of the contribution required under Section 204.101
for each calendar year is equal to the greater of:
(1) one-tenth of one percent; or
(2) the percentage, adjusted to the next higher one-tenth of one
percent, computed by dividing the numerator described by
Subsection (b) by the denominator described by Subsection (c).
(b) The numerator is the amount of all benefits paid during the
preceding calendar year based on wage credits earned from
employers that pay contributions under this subchapter, not
including benefit payments that are reimbursable from any other
source. If the amount of benefits paid during the period used for
determining the rate is greater than the contributions paid by
the same employers for the same period, the amount of the
benefits paid in excess of the amount of contributions collected
shall be added to the numerator in determining the contribution
rate. If the amount of benefits paid for the period used for
determining the rate is less than the contributions paid by the
same employers for the same period, that amount shall be deducted
from the numerator in computing the rate.
(c) The denominator is the amount of the total wages paid during
the preceding calendar year by all employers that pay
contributions under this subchapter.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.104. ACCOUNTING FOR GOVERNMENTAL EMPLOYERS. The
commission shall account separately for benefits paid and
contributions collected under this subchapter, and these benefits
and contributions may not be used in determining contribution
rates under Subchapters A, B, C, and D.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.105. PAST DUE CONTRIBUTIONS. (a) A governmental
employer that fails to pay a contribution due under this
subchapter on the date it is due as prescribed by the commission
is subject to the same penalties as provided for other employers
under Section 213.021.
(b) The provisions for collecting delinquent contributions under
Chapter 213 apply to a governmental employer.
(c) The commission shall notify the comptroller in writing of
the name of each governmental employer that is delinquent in
payment of contributions under this subtitle and the amount of
the delinquency. On receipt of the notice, the comptroller shall
pay the amount of the delinquency to the commission from any
funds that otherwise would be due from the state to the
delinquent governmental employer.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 204.106. REPORTS AND RECORDS. (a) A governmental employer
shall keep records and file reports with the commission relating
to individuals in its employ as required by rules adopted by the
commission.
(b) A governmental employer that does not keep the records or
file the reports when due is subject to the same penalties
provided for other employers under Sections 213.022, 213.023,
213.024, and 213.056.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
SUBCHAPTER G. EMPLOYMENT AND TRAINING INVESTMENT ASSESSMENT;
FUNDS
Sec. 204.121. EMPLOYMENT AND TRAINING INVESTMENT ASSESSMENT.
(a) In addition to any other taxes imposed under this subtitle,
an employment and training investment assessment is imposed on or
after January 1, 2006, on each employer paying contributions
under this subtitle as a separate assessment of one-tenth of one
percent of wages paid by the employer.
(b) The commission shall deposit the revenue from the employment
and training investment assessment to the credit of the holding
fund created under Section 204.122.
(c) The employment and training investment assessment is 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.
Added by Acts 2005, 79th Leg., Ch.
1115, Sec. 3, eff. June 18, 2005.
Sec. 204.122. HOLDING FUND. (a) The employment and training
investment holding fund is a special trust fund outside of the
state treasury in the custody of the comptroller separate and
apart from all public money or funds of this state.
(b) The comptroller shall administer the holding fund in
accordance with the directions of the commission. Interest
accruing on amounts in the holding fund shall be deposited
quarterly to the credit of the compensation fund.
Added by Acts 2005, 79th Leg., Ch.
1115, Sec. 3, eff. June 18, 2005.
Sec. 204.123. TRANSFER TO TEXAS ENTERPRISE FUND, SKILLS
DEVELOPMENT FUND, TRAINING STABILIZATION FUND, AND COMPENSATION
FUND. (a) If, on September 1 of a year, the commission
determines that the amount in the compensation fund will exceed
100 percent of its floor as computed under Section 204.061 on the
next October 1 computation date, the commission shall transfer
from the holding fund created under Section 204.122:
(1) from the first $160 million deposited in the holding fund in
any state fiscal biennium:
(A) during the state fiscal biennium ending August 31, 2007:
(i) 67 percent to the Texas Enterprise Fund created under
Section 481.078, Government Code, except that the amount
transferred under this paragraph may not exceed the amount
appropriated by the legislature to the Texas Enterprise Fund in
that biennium; and
(ii) 33 percent to the skills development fund created under
Section 303.003, except that the amount transferred under this
paragraph may not exceed the amount appropriated by the
legislature to the skills development program strategies and
activities in that biennium; and
(B) during any state fiscal biennium beginning on or after
September 1, 2007:
(i) 75 percent to the Texas Enterprise Fund created under
Section 481.078, Government Code, except that the amount
transferred under this paragraph may not exceed the amount
appropriated by the legislature to the Texas Enterprise Fund in
that biennium; and
(ii) 25 percent to the skills development fund created under
Section 303.003, except that the amount transferred under this
paragraph may not exceed the amount appropriated by the
legislature to the skills development program strategies and
activities in that biennium; and
(2) any remaining amount in the holding fund after the
distribution under Subdivision (1) to the training stabilization
fund created under Section 302.101.
(b) If, on September 1 of a year, the commission determines that
the amount in the compensation fund will be at or below 100
percent of its floor as computed under Section 204.061 on the
next October 1 computation date, the commission shall transfer to
the compensation fund as much of the amount in the holding fund
as is necessary to raise the amount in the compensation fund to
100 percent of its floor, up to and including the entire amount
in the holding fund. The commission shall transfer any remaining
balance in the holding fund to the Texas Enterprise Fund, the
skills development fund, and the training stabilization fund in
the percentages prescribed by Subsection (a).
Added by Acts 2005, 79th Leg., Ch.
1115, Sec. 3, eff. June 18, 2005.