1-1 By: Oliveira, et al. (Senate Sponsor - Parker) H.B. No. 1387
1-2 (In the Senate - Received from the House May 5, 1993;
1-3 May 6, 1993, read first time and referred to Committee on Economic
1-4 Development; May 17, 1993, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 9, Nays 0;
1-6 May 17, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR H.B. No. 1387 By: Parker
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the administration and enforcement of the state
1-24 unemployment compensation system.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. The Texas Unemployment Compensation Act (Article
1-27 5221b-1 et seq., Vernon's Texas Civil Statutes) is amended by
1-28 adding Section 14-B to read as follows:
1-29 Sec. 14-B. (a) In this section, "asset" means:
1-30 (1) a credit, bank, or savings account or deposit; or
1-31 (2) any other intangible or personal property.
1-32 (b) If a party is delinquent in the payment of
1-33 contributions, penalties, interest, or other sums due under this
1-34 Act, the Commission may notify personally or by registered mail any
1-35 person who:
1-36 (1) possesses or controls an asset belonging to the
1-37 delinquent party; or
1-38 (2) owes a debt to the delinquent party.
1-39 (c) A notice under this section to a state officer,
1-40 department, or agency must be given before the officer, department,
1-41 or agency presents to the comptroller the claim of the delinquent
1-42 party.
1-43 (d) A notice under this section may be given at any time
1-44 after the contributions, penalties, interest, or other sums due
1-45 under this Act become delinquent. The notice must state the amount
1-46 of contributions, penalties, interest, or other sums due, and any
1-47 additional amount that will accrue by operation of law in a period
1-48 not to exceed 30 days after the date on which the notice is given,
1-49 and, in the case of a credit, bank, or savings account or deposit,
1-50 is effective only up to that amount.
1-51 (e) On receipt of a notice under this section, the recipient
1-52 of the notice shall advise the Commission not later than the 20th
1-53 day after the date the notice is received of each asset belonging
1-54 to the delinquent party that is possessed or controlled by the
1-55 recipient and of each debt owed by the recipient to the delinquent
1-56 party. The recipient of the notice may not transfer or dispose of
1-57 the asset or debt possessed, controlled, or owed by the recipient
1-58 as of the time the notice was received by the recipient during the
1-59 60-day period immediately after the date of receipt of the notice,
1-60 unless the Commission consents to an earlier disposition.
1-61 (f) A notice under this section that attempts to prohibit
1-62 the transfer or disposition of an asset possessed or controlled by
1-63 a bank is not effective unless it is delivered or mailed to the
1-64 principal office of the bank or the office of the bank at which the
1-65 deposit is carried or the credit or property is held.
1-66 (g) A person who has received a notice under this section
1-67 and who transfers or disposes of an asset or debt in a manner that
1-68 violates Subsection (e) of this section is liable to the Commission
2-1 for the amount of the indebtedness of the delinquent party with
2-2 respect to whose obligation the notice was given to the extent of
2-3 the value of that asset or debt.
2-4 (h) At any time during the last 45 days of the 60-day period
2-5 described by Subsection (e) of this section, the Commission may
2-6 levy on the asset or debt by delivery of a notice of levy. On
2-7 receipt of the levy notice, the person possessing the asset or debt
2-8 shall transfer the asset to the Commission or pay to the Commission
2-9 the amount owed to the delinquent party.
2-10 (i) A notice delivered under this section is effective at
2-11 the time of delivery against all property, rights to property,
2-12 credits, and debts involving the delinquent party that are not, as
2-13 of the date of the notice, subject to a preexisting lien,
2-14 attachment, garnishment, or execution issued through a judicial
2-15 process.
2-16 (j) A person acting in accordance with the terms of the
2-17 notice of freeze or levy issued by the Commission is discharged
2-18 from any obligation or liability to the delinquent party with
2-19 respect to the affected property, rights to property, credits, and
2-20 debts of the party affected by compliance with the notice of freeze
2-21 or levy.
2-22 SECTION 2. Section 14(a), Texas Unemployment Compensation
2-23 Act (Article 5221b-12, Vernon's Texas Civil Statutes), is amended
2-24 to read as follows:
2-25 (a) Interest <and Penalties> on Past Due Contributions: If
2-26 any employer subject to the provisions of this Act shall fail to
2-27 pay contributions due under this Act on the date on which they are
2-28 due and payable as prescribed by the Commission, such employer
2-29 shall be liable <forfeit> to the State of Texas for interest <a
2-30 penalty> of one and one-half per cent (1 1/2%) of such
2-31 contributions, and after the expiration of one (1) month such
2-32 employer shall be liable for <forfeit an> additional interest
2-33 <penalty> of one and one-half per cent (1 1/2%) of such
2-34 contributions for each month or fraction thereof, until such
2-35 contributions and interest payments <penalties> shall have been
2-36 paid in full; provided, however, that the interest <penalties>
2-37 applicable to the contributions due for any period (as prescribed
2-38 by the rules of the Commission) shall not exceed thirty-seven and
2-39 one-half per cent (37 1/2%) of the amount of contributions due at
2-40 due date; provided, however, that for the exclusive purpose of this
2-41 subsection, the liability for interest <forfeit of penalty>
2-42 provided herein shall not apply to any employer who failed to pay
2-43 contributions due under this Act because of the bona fide belief
2-44 that all or some of their employees are covered under the
2-45 unemployment insurance law of any other state if such employer
2-46 paid, pursuant to the unemployment insurance law of such other
2-47 state, the contributions thereunder when due on all such wages of
2-48 such employees.
2-49 In addition to the interest <penalties> provided above,
2-50 whenever the maximum interest <penalty> of thirty-seven and
2-51 one-half per cent (37 1/2%) shall accrue or shall have accrued as
2-52 provided above in cases in which the liability of the employer is
2-53 reduced to judgment, thereafter in addition to the interest
2-54 <penalties> provided above, contributions included in such judgment
2-55 shall bear additional interest at the rate of one per cent (1%) per
2-56 month or part of a month.
2-57 SECTION 3. Section 19(m), Texas Unemployment Compensation
2-58 Act (Article 5221b-17, Vernon's Texas Civil Statutes), is amended
2-59 to read as follows:
2-60 (m) "Valid Claim" means either an initial claim filed by an
2-61 unemployed individual who has received the wages necessary to
2-62 qualify for benefits under the terms of subsection 4(e) of this Act
2-63 or a claim for benefits filed by an unemployed individual who has
2-64 received the wages necessary to qualify for benefits under the
2-65 terms of subsection 4(e) of this Act, and "initial claim" means the
2-66 notice filed by an individual who does not have a current benefit
2-67 year that he is unemployed and may, if such unemployment continues,
2-68 file a claim for benefits. For purposes of this Act, an individual
2-69 shall be considered unemployed if the individual is totally
2-70 unemployed as defined in Subsection 19(l) of this Act or if the
3-1 individual is partially unemployed as defined in Subsection 19(j)
3-2 of this Act.
3-3 SECTION 4. This Act takes effect September 1, 1993.
3-4 SECTION 5. The importance of this legislation and the
3-5 crowded condition of the calendars in both houses create an
3-6 emergency and an imperative public necessity that the
3-7 constitutional rule requiring bills to be read on three several
3-8 days in each house be suspended, and this rule is hereby suspended.
3-9 * * * * *
3-10 Austin,
3-11 Texas
3-12 May 17, 1993
3-13 Hon. Bob Bullock
3-14 President of the Senate
3-15 Sir:
3-16 We, your Committee on Economic Development to which was referred
3-17 H.B. No. 1387, have had the same under consideration, and I am
3-18 instructed to report it back to the Senate with the recommendation
3-19 that it do not pass, but that the Committee Substitute adopted in
3-20 lieu thereof do pass and be printed.
3-21 Parker,
3-22 Chairman
3-23 * * * * *
3-24 WITNESSES
3-25 FOR AGAINST ON
3-26 ___________________________________________________________________
3-27 Name: James Jackson x
3-28 Representing: Texas Employment Commission
3-29 City: Austin
3-30 -------------------------------------------------------------------
3-31 Name: Billy McCorkle x
3-32 Representing: Texas Employment Commission
3-33 City: Austin
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