73R7521 PB-F
By Oliveira, et al. H.B. No. 1387
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration and enforcement of the state
1-3 unemployment compensation system.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Texas Unemployment Compensation Act (Article
1-6 5221b-1 et seq., Vernon's Texas Civil Statutes) is amended by
1-7 adding Section 14-B to read as follows:
1-8 Sec. 14-B. (a) In this section, "asset" means:
1-9 (1) a credit, bank, or savings account or deposit; or
1-10 (2) any other intangible or personal property.
1-11 (b) If a party is delinquent in the payment of
1-12 contributions, penalties, interest, or other sums due under this
1-13 Act, the Commission may notify personally or by registered mail any
1-14 person who:
1-15 (1) possesses or controls an asset belonging to the
1-16 delinquent party; or
1-17 (2) owes a debt to the delinquent party.
1-18 (c) A notice under this section to a state officer,
1-19 department, or agency must be given before the officer, department,
1-20 or agency presents to the comptroller the claim of the delinquent
1-21 party.
1-22 (d) A notice under this section may be given at any time
1-23 after the contributions, penalties, interest, or other sums due
2-1 under this Act become delinquent. The notice must state the amount
2-2 of contributions, penalties, interest, or other sums due, and any
2-3 additional amount that will accrue by operation of law in a period
2-4 not to exceed 30 days after the date on which the notice is given,
2-5 and, in the case of a credit, bank, or savings account or deposit,
2-6 is effective only up to that amount.
2-7 (e) On receipt of a notice under this section, the recipient
2-8 of the notice shall advise the Commission not later than the 20th
2-9 day after the date the notice is received of each asset belonging
2-10 to the delinquent party that is possessed or controlled by the
2-11 recipient and of each debt owed by the recipient to the delinquent
2-12 party. The recipient of the notice may not transfer or dispose of
2-13 the asset or debt possessed, controlled, or owed by the recipient
2-14 as of the time the notice was received by the recipient during the
2-15 60-day period immediately after the date of receipt of the notice,
2-16 unless the Commission consents to an earlier disposition.
2-17 (f) A notice under this section that attempts to prohibit
2-18 the transfer or disposition of an asset possessed or controlled by
2-19 a bank is not effective unless it is delivered or mailed to the
2-20 principal office of the bank or the office of the bank at which the
2-21 deposit is carried or the credit or property is held.
2-22 (g) A person who has received a notice under this section
2-23 and who transfers or disposes of an asset or debt in a manner that
2-24 violates Subsection (e) of this section is liable to the Commission
2-25 for the amount of the indebtedness of the delinquent party with
3-1 respect to whose obligation the notice was given to the extent of
3-2 the value of that asset or debt.
3-3 (h) At any time during the last 45 days of the 60-day period
3-4 described by Subsection (e) of this section, the Commission may
3-5 levy on the asset or debt by delivery of a notice of levy. On
3-6 receipt of the levy notice, the person possessing the asset or debt
3-7 shall transfer the asset to the Commission or pay to the Commission
3-8 the amount owed to the delinquent party.
3-9 (i) A notice delivered under this section is effective at
3-10 the time of delivery against all property, rights to property,
3-11 credits, and debts involving the delinquent party that are not, as
3-12 of the date of the notice, subject to a preexisting lien,
3-13 attachment, garnishment, or execution issued through a judicial
3-14 process.
3-15 (j) A person acting in accordance with the terms of the
3-16 notice of freeze or levy issued by the Commission is discharged
3-17 from any obligation or liability to the delinquent party with
3-18 respect to the affected property, rights to property, credits, and
3-19 debts of the party affected by compliance with the notice of freeze
3-20 or levy.
3-21 SECTION 2. Section 14(a), Texas Unemployment Compensation
3-22 Act (Article 5221b-12, Vernon's Texas Civil Statutes), is amended
3-23 to read as follows:
3-24 (a) Interest <and Penalties> on Past Due Contributions: If
3-25 any employer subject to the provisions of this Act shall fail to
4-1 pay contributions due under this Act on the date on which they are
4-2 due and payable as prescribed by the Commission, such employer
4-3 shall be liable <forfeit> to the State of Texas for interest <a
4-4 penalty> of one and one-half per cent (1 1/2%) of such
4-5 contributions, and after the expiration of one (1) month such
4-6 employer shall be liable for <forfeit an> additional interest
4-7 <penalty> of one and one-half per cent (1 1/2%) of such
4-8 contributions for each month or fraction thereof, until such
4-9 contributions and interest payments <penalties> shall have been
4-10 paid in full; provided, however, that the interest <penalties>
4-11 applicable to the contributions due for any period (as prescribed
4-12 by the rules of the Commission) shall not exceed thirty-seven and
4-13 one-half per cent (37 1/2%) of the amount of contributions due at
4-14 due date; provided, however, that for the exclusive purpose of this
4-15 subsection, the liability for interest <forfeit of penalty>
4-16 provided herein shall not apply to any employer who failed to pay
4-17 contributions due under this Act because of the bona fide belief
4-18 that all or some of their employees are covered under the
4-19 unemployment insurance law of any other state if such employer
4-20 paid, pursuant to the unemployment insurance law of such other
4-21 state, the contributions thereunder when due on all such wages of
4-22 such employees.
4-23 In addition to the interest <penalties> provided above,
4-24 whenever the maximum interest <penalty> of thirty-seven and
4-25 one-half per cent (37 1/2%) shall accrue or shall have accrued as
5-1 provided above in cases in which the liability of the employer is
5-2 reduced to judgment, thereafter in addition to the interest
5-3 <penalties> provided above, contributions included in such judgment
5-4 shall bear additional interest at the rate of one per cent (1%) per
5-5 month or part of a month.
5-6 SECTION 3. This Act takes effect September 1, 1993.
5-7 SECTION 4. The importance of this legislation and the
5-8 crowded condition of the calendars in both houses create an
5-9 emergency and an imperative public necessity that the
5-10 constitutional rule requiring bills to be read on three several
5-11 days in each house be suspended, and this rule is hereby suspended.