CHAPTER 204. CONTRIBUTIONS

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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.

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

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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).

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.

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.

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).

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;

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.

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.

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.

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.

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.

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.

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.

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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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