LABOR CODE
CHAPTER 205. REIMBURSEMENTS
SUBCHAPTER A. ELECTION TO BECOME REIMBURSING EMPLOYER
§ 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, § 1, eff. Sept. 1, 1993. Amended
by Acts 2001, 77th Leg., ch. 518, § 6, eff. June 11, 2001.
§ 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(e) An election may be withdrawn by written application by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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 7, eff. June 11, 2001.
SUBCHAPTER B. GENERAL PROVISIONS
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1.38, eff. Sept. 1,
1999. Amended by Acts 2003, 78th Leg., ch. 785, § 63, eff. Sept.
1, 2003.
SUBCHAPTER C. GROUP ACCOUNT
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
SUBCHAPTER D. BONDS AND OTHER SAFEGUARDS
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
SUBCHAPTER E. STATE ELECTIONS
§ 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.
