SECTION 815.129. Surety Bond

(a) A governmental employer, a nonprofit organization, or the group representative of a group account that elects to become liable for reimbursements shall furnish a surety bond on a form furnished or approved by the Agency within 30 days after a request by the Agency for the bond is mailed to the governmental employer, nonprofit organization, or group representative.

(b) The amount of the surety bond shall be a percentage of the projected amount of wages which would be subject to tax if the employer was an employer liable for contributions under the Act. The percentage used in determining the amount of the bond shall be equal to the maximum tax rate that any employer who is liable for contributions during the year would have to pay under the Act. The amount of taxable wages which the employer is expected to pay during the next 12 months shall be determined by the Agency after considering all available information.

(c) The surety bond shall be executed by a licensed surety company authorized to do business in the State of Texas, and the surety bond must be approved by the Agency.

Source Note: The provisions of this §815.129 adopted to be effective November 6, 2000, 25 TexReg 11093