Status Manual graphic

[ Status Procedures Manual - TOC ] [ Ch 1 - New Accounts ] [ Ch 2 - Changes to Accounts ] [ Ch 3 - Special Accounts ] [ Ch 4 - Other Units, Sections & Departments ] [ Ch 5 - Letters ] [ Ch 6 - Investigations & Assistance ] [ Ch 7 - Partial Transfer Applications ] [ Ch 8 - Traces ] [ Ch 9 - Special Reporting Situations ] [ Ch 10 - Account Numbers ] [ Ch 11 - Appeals Decisions and Hearings ] [ Ch 12 - Document Processing ] [ Ch 13 - Error Reports & Query List Instructions ] [ Ch 14 - Tax Performance System ] [ Ch 15 - Experience Rating Unit ] [ Ch 16 - SUTA Dumping Detection ]
[ 9.1 - Reciprocal Coverage Agreements ] [ 9.2 - Service on a Vessel - Vessel Listing ] [ 9.3 - Service on an American Aircraft ] [ 9.4 - Truck Drivers ][ 9.5 - Traveling Salesperson Residing in Texas ][ 9.6 - Workforce Development Boards ][ 9.7 - Blind Individuals Working for Certain Sheltered Workshops ] [ 9.8 - Annual Election for Domestic Employers ]

Chapter 9:  Special Reporting Situations


comments to: Tax Department

9.6     Workforce Development Boards

[ 9.6.1 - Background ][ 9.6.2 - Board Formation ][ 9.6.3 - Board Certifications ][ 9.6.4 - Staffing ][ 9.6.5 - Definitions ][ 9.6.6 - Classifications ][ 9.6.7 - Investigation ][ 9.6.8 - Personal Liability ]

This section discusses the aspects of the law that specifically apply to establishing UI Tax liability of Workforce Developments Boards.

9.6.1     Background

The 74th Legislature authorized the formation of Local Workforce Development Boards (LWDB) beginning July 1, 1996.

9.6.2     Board Formation

LWDB's can form as corporations or unincorporated associations. If a LWDB is formed, it will assume the responsibilities of the Private Industry Council (PIC) under the provisions of the Job Training Partnership Act.

9.6.3     Board Certifications

A LWDB's application will be reviewed by the Texas Workforce Commission and forwarded to the governor for approval and certification.

9.6.4     Staffing

A LWDB may employ staff to support its functions. However, the staff must be separate from and independent of any organization providing workforce education or workforce training and services in the workforce development area.

9.6.5     Definitions

Chief Elected Officials (CEOs)

A. Mayors

  1. Mayor of each city with a population greater than 100,000 in the workforce development area; or
  2. If (1) is not applicable, the Mayor of each city with a population greater than 50,000 in the workforce development area; or
  3. If (2) is not applicable, the mayor of the largest city in the workforce development area.

B. All County Judges in the workforce development area.

Board (WDB) is a local workforce development board created under the Workforce and Economic Competitiveness Act. Board formation will be decided by the CEOs of a workforce development area. Members of the Board include individuals representing both the private sector and local government.

Presiding Officer is an individual selected from the members of the board who represent the private sector.

Workforce Development Area is a geographic area designated by the governor based upon recommendations from the Texas Council on Workforce and Economic Competitiveness. There are 28 areas in the state.

9.6.6     Classification

For the purposes of the TUCA a LWDB can be classified as:

  1. A corporation if the LWDB's are registered with the Secretary of State; or
  2. Other if the LWDB is not registered with the Secretary of state or
  3. 501(c)(3) Non-Profit Reimbursing - if the LWDB is a corporation that has applied and received a 501(c)(3) exemption from the IRS.

If a Private Industry Council (PIC) is responsible for administration of the Job Training Partnership Act, it becomes the LWDB, a new UI Tax account may not be required if the PIC is registered with TWC and the LWDB assumes the PIC's corporate charter. If this occurs, the EMF status record will be updated to reflect the corporate name change.

9.6.7     Investigation

The Status Section will contact each certified LWDB and provide each board with a Status Report. Status will review the completed Status Report and establish a UI Tax account for each LWDB that meets TUCA liability criteria.

If the Status Section cannot obtain a Status Report, then a field assignment will be issued to obtain a completed Status Report. Field tax will then proceed with the investigation on the same premise as any other status investigation.

9.6.8     Personal Liability

A member or former member of a LWDB may not be held personally liable for any claim, damage, loss, or repayment obligation of federal or state funds…unless the act or omission that causes the claim, damage, loss or repayment obligation constitutes official misconduct on the part of the board member, willful disregard of the requirements of the Act on the part of the board member, or gross negligence on the part of the board member.


firstpreviousnextlast Tax Menu


Texas Workforce Commission  |  Unemployment Tax

Last Revision: October 19, 2011