Bill

HB 1251

84(R) - 2015
House Economic & Small Business Development
House Economic & Small Business Development
Business, Industry, & Commerce
Labor

Vote Recommendation

Yes
  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral

Author(s)

Carol Alvarado

Co-Author(s)

Charlie Geren
Ryan Guillen
Senfronia Thompson

Bill Caption

Relating to the transfer of compensation experience for purposes of the Texas Unemployment Compensation Act.

Fiscal Notes

A fiscal note dated May 12, 2015 anticipates no significant fiscal implication to the State or to units of local government.

Bill Analysis

House Bill 1251 would amend the Labor Code to codify the process of the transfer of compensation experience in cases of partial acquisitions.

The predecessor employer and successor employer could jointly submit, not later than the second anniversary of the date the partial acquisition was completed, information necessary for making the determination described by Subsection 204.085(a). The period for which the information would be submitted would have to be the lesser of four years or the time the predecessor employer was liable for the payment of the tax under Chapter 204.

The Texas Workforce Commission would have to include information on the availability of a partial transfer of compensation experience to each new employer and on any form, including in electronic format, required to be submitted by an employer to report a change of status.

The second chamber sponsor is Senator Royce West. Senator Robert Nichols is a co-sponsor.

Vote Recommendation Notes

According to the statement of intent for House Bill 1251, businesses pay an unemployment insurance tax rate made up of different components including a compensation experience-rated portion, which is based on the benefits that have been paid to former employees of the company and charged to the company‚Äôs account. 

Issues may arise in the process of obtaining a partial transfer of compensation experience for a franchisee.

House Bill 1251 aims at simplifying the process of obtaining a partial transfer of compensation experience for franchisees and hence making the unemployment insurance tax less burdensome for them.

As a consequence, we support House Bill 1251.