82R4776 KCR-F
By: Jackson S.B. No. 638
A BILL TO BE ENTITLED
AN ACT
relating to the computation of a surplus credit and a surplus credit
rate for certain successor employing units.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 204, Labor Code, is
amended by adding Section 204.0861 to read as follows:
Sec. 204.0861. SURPLUS CREDIT AND SURPLUS CREDIT RATE FOR
SUCCESSOR EMPLOYING UNITS. (a) In this section:
(1) "Surplus credit" means a credit described by
Section 204.0651.
(2) "Surplus credit rate" means a rate described by
Section 204.0652.
(b) A successor employing unit to which compensation
experience is transferred under Section 204.083 is entitled to a
surplus credit and surplus credit rate attributable to, but not
applied or received by, the predecessor employing unit.
(c) A successor employing unit to which compensation
experience is transferred under Section 204.084 is entitled to a
surplus credit and surplus credit rate attributable to, but not
applied or received by, the predecessor employing unit for the part
of the organization, trade, or business acquired by the successor
employing unit if the commission determines that the requirement
described by Section 204.084(c)(3) is satisfied.
(d) If the commission determines that a transfer of
compensation experience was accomplished solely or primarily for
the purpose of obtaining a lower contribution rate, a successor
employing unit is not entitled to, and may not apply or receive, a
surplus credit and surplus credit rate under Subsection (b) or (c).
(e) A predecessor employing unit is not entitled to, and may
not apply or receive, all or any portion of a surplus credit or
surplus credit rate that is based on compensation experience that
is transferred to a successor employing unit under this subchapter.
(f) The commission shall adopt rules necessary to implement
and enforce this section, including rules that ensure that only a
successor employing unit applies or receives all or part of a
surplus credit or surplus credit rate previously attributable to a
predecessor employing unit.
SECTION 2. Section 204.0861, Labor Code, as added by this
Act, applies only to an acquisition of an organization, trade, or
business that occurs on or after the effective date of this Act. An
acquisition of an organization, trade, or business that occurs
before the effective date of this Act is governed by the law in
effect on the date the acquisition occurred, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.