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