CHAPTER 205. REIMBURSEMENTS
LABOR CODE
TITLE 4. EMPLOYMENT SERVICES AND UNEMPLOYMENT
SUBTITLE A. TEXAS UNEMPLOYMENT COMPENSATION ACT
CHAPTER 205. REIMBURSEMENTS
SUBCHAPTER A. ELECTION TO BECOME REIMBURSING EMPLOYER
Sec. 205.001. REIMBURSEMENTS OR CONTRIBUTIONS BY GOVERNMENTAL
ENTITY. (a) A state, a political subdivision of a state, an
Indian tribe, or an instrumentality of a state, political
subdivision of a state, or Indian tribe may elect to pay
reimbursements for benefits instead of contributions.
(b) The election must be made not later than the 45th day after
the date on which notice that an employer is subject to this
subtitle is mailed to the employer.
(c) The election is effective January 1 of the year in which the
employer becomes subject to this subtitle.
(d) An election is effective for at least two calendar years and
may be terminated after the minimum period by filing with the
commission not later than December 1 a written request for
termination. The termination is effective January 1 of the
following year.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Amended by Acts 2001, 77th Leg., ch. 518, Sec. 6, eff. June 11,
2001.
Sec. 205.002. ELECTION BY NONPROFIT ORGANIZATION. (a) A
nonprofit organization that is described by Section 201.023 or a
group of those organizations subject to this subtitle may elect
to pay reimbursements for benefits instead of contributions.
(b) An election under this section must be made not later than
the 45th day after the date on which notice that the employer is
subject to this subtitle is mailed to the employer.
(c) The election is effective January 1 of the year in which the
employer becomes subject to this subtitle.
(d) The election is effective for at least two calendar years
and may not be terminated before the expiration of that period,
except as provided in Sections 205.003 and 205.031.
(e) An election may be withdrawn by written application by the
employer filed with the commission not later than December 1
before the year for which the employer wishes to change the
employer's method of payment. The method of payment may be
changed again if a timely application is filed after a minimum of
two calendar years.
(f) An election to pay reimbursements terminates at any time
coverage terminates under this subtitle. An employer whose
election terminates because of termination of coverage, on again
becoming an employer subject to this subtitle, may reelect to pay
reimbursements.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.003. COMMISSION TERMINATION OF ELECTION. (a) The
commission may terminate an employer's election to make
reimbursements if the employer is delinquent in making
reimbursements under this chapter.
(b) A termination under this section takes effect at the
beginning of the next tax year and remains in effect for that tax
year and the following tax year.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.004. ELECTION BY INDIAN TRIBE. (a) An Indian tribe
that elects to make reimbursements for benefits instead of
contributions shall make the election under this chapter in the
same manner and subject to the same conditions as the state or a
political subdivision of the state.
(b) An Indian tribe that makes an election under this chapter
shall determine whether the election is for the tribe as a whole,
individual tribal units, or a combination of individual tribal
units.
(c) An Indian tribe that makes an election under this chapter
shall pay the full amount of benefits attributable to service
performed in the employ of the Indian tribe on the same schedule
as other employing units that have elected to make reimbursements
for benefits instead of contributions.
(d) An Indian tribe that fails to make a required payment,
including payment of a penalty and interest, before the 91st day
after receiving notice of the payment loses the option to pay
reimbursements instead of contributions for the following tax
year unless the commission receives payment in full before the
date contribution rates for that tax year are computed.
(e) An Indian tribe that loses the option to pay reimbursements
instead of contributions due to late payments under Subsection
(d) may resume that option if, after the expiration of one year
following the date of losing the option, the Indian tribe has
timely paid all contributions and no contributions, payments
instead of contributions for benefits paid, penalties, or
interest remain outstanding.
Added by Acts 2001, 77th Leg., ch. 518, Sec. 7, eff. June 11,
2001.
SUBCHAPTER B. GENERAL PROVISIONS
Sec. 205.011. APPLICABILITY OF SUBTITLE; WAIVER BY REIMBURSING
EMPLOYER. (a) A reimbursing employer is entitled to the rights
and privileges and subject to the duties and responsibilities of
all provisions of this subtitle other than the following
provisions of Chapter 204, which do not apply to a reimbursing
employer:
(1) Sections 204.001-204.008;
(2) Subchapters B, C, and D of Chapter 204; and
(3) Sections 204.081-204.085.
(b) An election to become a reimbursing employer is a waiver of
the rights afforded under Chapter 204 that do not apply to a
reimbursing employer.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.012. PAYMENT OF REIMBURSEMENT. A reimbursing employer
shall pay a reimbursement to the commission in accordance with
this chapter and rules adopted by the commission.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.013. BILLING; AMOUNT OF REIMBURSEMENTS. (a) A
reimbursing employer shall pay to the commission an amount equal
to the regular benefits plus, except as provided by Subsection
(c), one-half of the extended benefits paid during that quarter
that are attributable to service in the employ of the employer.
(b) At the end of each calendar quarter the commission shall
bill each reimbursing employer for the amount described under
Subsection (a).
(c) A state, a political subdivision of a state, or any
instrumentality of any one or more states or political
subdivisions of a state that is wholly owned by one or more
states or political subdivisions of a state that is a reimbursing
employer shall pay 100 percent of the extended benefits paid on
benefit wage credits earned from that employer.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.014. PROPORTIONATE ALLOCATION OF BENEFIT COSTS--MORE
THAN ONE EMPLOYER AND AT LEAST ONE REIMBURSING EMPLOYER. If
benefits to an individual are computed on benefit wage credits
earned from more than one employer, at least one of whom is a
reimbursing employer, the amount payable to the compensation fund
by each reimbursing employer is the amount that bears the same
ratio to the total benefits paid to the individual as the total
base period benefit wage credits for the individual from that
employer bears to the total base period benefit wage credits for
the individual from all employers.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.015. CONTINUED LIABILITY FOR REIMBURSEMENT. An
employer who has elected reimbursement under Section 205.001 or
205.002 shall pay reimbursements for benefits that are
attributable to service in the employ of the employer during the
period of the election, even if the employer is no longer a
reimbursing employer when the benefits are paid.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.016. COLLECTION OF DELINQUENT REIMBURSEMENT; EFFECT OF
FAILURE TO SUBMIT CERTAIN REPORTS. A reimbursing employer who
fails to pay a reimbursement on the date on which the
reimbursement is due, or who fails to submit records and reports,
as prescribed by the commission, is subject to the following in
the same manner as an employer who does not pay a contribution
when due:
(1) Sections 213.004, 213.005, 213.006, 213.008, and 213.009;
(2) Subchapters B, C, D, and E of Chapter 213, other than
Section 213.058; and
(3) Section 204.086.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.017. DELINQUENT GOVERNMENTAL EMPLOYERS. The commission
shall notify the comptroller in writing of the name of a
governmental employer that is delinquent in payment of
reimbursements 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. 205.018. PAYMENT OF BENEFITS FROM COMPENSATION FUND; NO
EFFECT ON REPLENISHMENT RATIO. Benefits computed on wages earned
from a reimbursing employer and reimbursements for the benefits
may not be used in computing the replenishment ratio under
Section 204.045.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.019. REIMBURSEMENT FROM NON-TREASURY FUNDS. (a) A
branch, department, or other instrumentality of this state that
reimburses the commission with funds that are held outside the
state treasury shall reimburse the commission by writing a check
to the commission for deposit into the appropriate unemployment
compensation account. A deposit under this section shall be made
not later than the 30th day after the date the instrumentality
receives the commission's statement of amounts due.
(b) The commission shall send a copy of each statement of
amounts due from a branch, department, or other instrumentality
of this state that reimburses the commission with funds that are
held outside the state treasury to the comptroller and the state
auditor.
(c) A branch, department, or other instrumentality affected by
this section may allocate appropriate funds to a revolving
account on its books to receive contributions from funds other
than general revenue funds, based on an assessment it determines
to be appropriate for the purpose of reimbursing the appropriate
unemployment compensation account for benefits paid.
(d) The state auditor may review the reimbursement of funds for
compliance by the affected entities with this section, subject to
a risk assessment performed by the state auditor and to the
legislative audit committee's approval of including the review in
the audit plan under Section 321.013, Government Code.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 1.38, eff. Sept. 1,
1999. Amended by Acts 2003, 78th Leg., ch. 785, Sec. 63, eff.
Sept. 1, 2003.
SUBCHAPTER C. GROUP ACCOUNT
Sec. 205.021. APPROVAL OF GROUP ACCOUNT; EFFECTIVE DATE. (a)
On approval of an application submitted by two or more
reimbursing employers, the commission shall establish a group
account for the employers to share the cost of benefits that are
attributable to service in the employ of the employers.
(b) The application must identify and authorize a group
representative to act as the group's agent for the purpose of
this subchapter.
(c) The group account takes effect at the beginning of the
calendar quarter in which the commission received the
application. The commission shall notify the group's
representative of the effective date of the account.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.022. DURATION AND TERMINATION OF GROUP ACCOUNT. (a) A
group account must remain in effect for not less than two years.
(b) After two years, the account may be terminated at the
discretion of the commission or on application by the group. The
termination is effective January 1 of the next year.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.023. GROUP MEMBER'S REIMBURSEMENT AMOUNT. On
establishment of a group account, each member of the group is
liable for reimbursements for each calendar quarter in the amount
that bears the same ratio to the total benefits paid in the
quarter attributable to service in the employ of all members of
the group as the total wages paid for service in employment in
the quarter by the member bears to the total wages paid in the
quarter by all members of the group.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.024. REPORTS AND RECORDS. Each member of a group shall
keep accurate employment records and submit reports as required
by the commission relating to persons employed by the member.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.025. COMMISSION RULES. The commission shall as
necessary adopt rules on:
(1) an application for the establishment, maintenance, and
termination of a group account authorized by this subchapter;
(2) the type of records to be kept and reports to be submitted
by a group of employers;
(3) the addition of a new member to a group;
(4) the withdrawal of an active member from a group; and
(5) the determination of the amount of reimbursements payable
under this subchapter by members of a group and the time and
manner of those payments.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
SUBCHAPTER D. BONDS AND OTHER SAFEGUARDS
Sec. 205.031. BOND. (a) The commission may require a
reimbursing employer or group of reimbursing employers to execute
and file with the commission a surety bond approved by the
commission.
(b) The amount of the bond shall be determined in accordance
with rules adopted by the commission.
(c) The commission may require adjustments to a filed bond as it
considers appropriate.
(d) If a reimbursing employer covered by a bond fails to pay the
full amount of reimbursements when due, together with any
applicable interest and penalties required under this subtitle,
the surety is liable on the bond, to the extent of the bond, as
though the surety were the employer.
(e) If a reimbursing employer fails to execute and file bond
when directed to do so by the commission, the commission may
terminate the employer's election to make reimbursements
effective at the beginning of the next tax year. The termination
remains effective for that tax year and the following tax year.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.032. ADDITIONAL SAFEGUARDS. The commission may provide
additional safeguards as necessary to ensure that a reimbursing
employer pays the reimbursements required under Subchapters B and
C.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
SUBCHAPTER E. STATE ELECTIONS
Sec. 205.041. STATE ELECTION TO BE REIMBURSING EMPLOYER. (a)
This state is a reimbursing employer subject to this subtitle for
all services performed in the employ of:
(1) this state;
(2) a branch or department of this state; or
(3) an instrumentality of this state that is not otherwise an
employer.
(b) All services performed in the employ of this state, a branch
or department of this state, or an instrumentality of this state
are employment.
(c) Subsection (a) does not apply to a political subdivision of
this state.
(d) The commission shall provide to each state agency an annual
statement showing the benefits paid by the commission during the
year that are attributable to that agency.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.
Sec. 205.042. COVERAGE OF STATE EMPLOYEES WORKING OUTSIDE STATE.
If the commission is unable to execute a reciprocal agreement
under Chapter 211 to cover an employee of this state who works
outside this state, the employing agency shall become a
reimbursing employer if permitted by the law of the state in
which the employee works. If the agency is not permitted to be a
reimbursing employer, the agency may pay the required
contribution for that employee from funds available for that
purpose.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.