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A BILL TO BE ENTITLED
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AN ACT
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relating to recovery of covered unemployment compensation debt |
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through participation in the federal Treasury Offset Program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 214, Labor Code, is amended by adding |
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Section 214.009 to read as follows: |
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Sec. 214.009. RECOVERY OF COVERED UNEMPLOYMENT |
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COMPENSATION DEBT THROUGH FEDERAL TREASURY OFFSET PROGRAM. (a) In |
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this section, "program" means the federal Treasury Offset Program |
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authorized by 26 U.S.C. Section 6402(f). |
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(b) The commission may collect the following covered |
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unemployment compensation debt through the program: |
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(1) a past-due debt for erroneous payment of benefits |
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due to fraud that has become final under law and remains |
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uncollected; |
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(2) a past-due debt for erroneous payment of benefits |
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due to a person's failure to report earnings, even if |
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non-fraudulent, that has become final under law and remains |
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uncollected; |
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(3) a past-due employer contribution owed to the |
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compensation fund for which the commission has determined the |
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person to be liable and that remains uncollected; and |
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(4) any penalties and interest assessed by the |
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commission on a debt described by Subdivision (1), (2), or (3). |
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(c) Before submitting covered unemployment compensation |
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debt for recovery under the program, the commission must: |
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(1) notify the debtor by regular United States mail |
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that the commission plans to recover the debt through the offset of |
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any federal tax refund; |
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(2) provide the debtor at least 60 days following the |
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date the notice is provided under Subdivision (1) to present to the |
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commission evidence that all or part of the debt is not: |
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(A) legally enforceable; |
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(B) due to fraud or unreported earnings; or |
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(C) a contribution owed to the compensation fund; |
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and |
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(3) consider any evidence presented by the debtor to |
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determine the amount of debt that is legally enforceable and owed. |
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(d) In considering evidence presented by a debtor under |
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Subsection (c), the commission may determine only whether the |
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debtor has demonstrated that the debt is not subject to recovery |
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through the program so that the commission is able to minimize |
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erroneous offsets. The commission may not review the initial |
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determination establishing the debtor's liability. |
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(e) The commission shall assess against the debtor the cost |
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of any administrative fee charged by the United States Department |
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of the Treasury for each offset. The commission may add the |
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assessed amount to the covered unemployment compensation debt that |
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is offset under the program. |
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SECTION 2. This Act takes effect September 1, 2015. |