CHAPTER 205. REIMBURSEMENTS

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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.

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.

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(e) An election may be withdrawn by written application by the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.

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).

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.

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.

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.

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

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.

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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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