By: Perry, Toth, Sanford, Laubenberg H.B. No. 3785
A BILL TO BE ENTITLED
AN ACT
relating to the nullification of unconstitutional federal laws that
create or increase taxes and the enforceability of related federal
tax liens or levies; providing for a filing fee and providing
criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that:
(1) The people of the several states comprising the
United States of America created the federal government to be their
agent for certain enumerated purposes and nothing more.
(2) The Tenth Amendment to the United States
Constitution defines the total scope of federal power as being that
which has been delegated by the people of the several states to the
federal government, and all powers not delegated to the federal
government in the United States Constitution are reserved to the
states, respectively, or to the people themselves.
(3) The assumption of power that the federal
government has made by enacting the "Patient Protection and
Affordable Care Act" (PPACA) interferes with the right of the
people of the State of Texas to regulate health care as they see
fit.
(4) The decision of the United States Supreme Court to
uphold the individual mandate in the PPACA as a tax is invalid
because:
(A) the legislative intent was to enforce it as a
penalty; the court chose to legislate from the bench by classifying
it as a tax; this is a clear overreach of judicial power, as all
legislative powers are vested in the United States Congress;
(B) after classifying the individual mandate as a
tax, the court failed to recognize it as a direct tax; just as a tax
on land based solely on its rental income is the same as a direct tax
on the land itself, a tax on individuals based solely on their
decision not to buy health insurance is a direct tax on individuals;
to get around this, Chief Justice Roberts ruled that the individual
mandate is indirect because not everyone will have to pay it;
however, the percentage of people ultimately subject to a tax does
not determine into which category it falls; less than two percent of
Americans were subject to the original income tax, yet the court
still viewed it as a direct tax; and
(C) the PPACA was improperly passed by Congress;
according to Section 7, Article I, United States Constitution, "All
Bills for raising Revenue shall originate in the House of
Representatives; but the Senate may propose or concur with
Amendments as on other Bills;" the bill that passed the House, H.R.
3590, was a revenue bill that the Senate amended; the original
bill's purpose was to amend the Internal Revenue Code of 1986 to
modify the first-time homebuyer's credit in the case of members of
the armed forces and certain other federal employees and for other
purposes; when the Senate amended the bill, nothing was left of the
original bill; it instead became a completely new revenue bill
containing multiple taxes, as well as the provisions for Obamacare;
this is, in effect, a case of the Senate originating a revenue bill,
and this clearly violates the United States Constitution.
(5) The federal law known as the "Patient Protection
and Affordable Care Act," signed by President Barack Obama on March
23, 2010, is not authorized by the United States Constitution and
violates its true meaning and intent as given by the Founders and
Ratifiers and is hereby declared to be invalid in this state, shall
not be recognized by this state, is specifically rejected by this
state, and shall be considered null and void and of no effect in
this state. All taxpayers in the State of Texas are absolved of all
tax liabilities arising from the PPACA, although an individual
taxpayer may voluntarily pay those taxes.
(6) The policy enacted in the following sections will
allow this state to protect its citizens from tax liabilities
created by the PPACA. If the legislature nullifies other
unconstitutional federal laws that create or increase taxes, the
same policies shall be used to protect citizens from those tax
liabilities.
(7) Through peaceful noncompliance with
unconstitutional federal acts:
(A) the rule of law can once again be established
in the United States; and
(B) the maxim that the agent, the federal
government, is not greater than the principal, the states, can once
again be established.
SECTION 2. Section 14.003, Property Code, is amended to
read as follows:
Sec. 14.003. EXECUTION OF NOTICES AND CERTIFICATES. Except
as provided by Section 45.101, certification [Certification] of
notices of liens, certificates, or other notices affecting federal
liens by the secretary of the treasury of the United States or the
secretary's [his] delegate, or by any official or entity of the
United States responsible for filing or certifying of notice of any
other lien, entitles them to be filed and no other attestation,
certification, or acknowledgment is necessary.
SECTION 3. Section 14.004(a), Property Code, is amended to
read as follows:
(a) Except as provided by Section 45.101, if [If] a notice
of federal lien, a refiling of a notice of federal lien, or a notice
of revocation of any certificate described in Subsection (b) is
presented to a filing officer who is:
(1) the secretary of state, the secretary of state
[he] shall cause the notice to be marked, held or placed on
microtext, and indexed in accordance with the provisions of Section
9.519, Business & Commerce Code, as if the notice were a financing
statement within the meaning of that code; or
(2) any other officer described in Section 14.002, the
officer [he] shall endorse thereon the officer's [his]
identification and the date and time of receipt and forthwith file
it alphabetically in the real property records and if requested by
the party submitting the document, in the personal property files
or enter it in an alphabetical index for real or personal property,
as appropriate, showing the name and address of the person named in
the notice, the date and time of receipt, the title and address of
the official or entity certifying the lien, and the total amount
appearing on the notice of lien.
SECTION 4. Subtitle A, Title 5, Property Code, is amended by
adding Chapter 45 to read as follows:
CHAPTER 45. FEDERAL TAX LIENS AND LEVIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 45.001. DEFINITIONS. (a) In this chapter:
(1) "Federal tax authorities" means the secretary of
the treasury of the United States or the secretary's delegate, or
any official or entity of the United States responsible for filing
liens, executing levies, or collecting federal tax of any sort.
(2) "Lawful federal taxes" means any federal tax
enacted by a constitutional Act of the United States Congress.
(3) "Taxpayer" means any person liable for any federal
tax or excise and includes a corporation or partnership whose
principal executive office is in this state, as provided by the
internal revenue laws of the United States.
(4) "Unlawful federal taxes" means any federal tax
enacted by or the percentage an existing tax is increased by an
unconstitutional Act of the United States Congress that has been
nullified by the legislature.
Sec. 45.002. EFFECT ON COLLECTION OF FEDERAL TAXES. This
chapter may not be construed to affect the collection of lawful
federal taxes.
SUBCHAPTER B. CLAIM OF NON-LIABILITY FOR UNLAWFUL FEDERAL TAXES
Sec. 45.051. REGISTRATION OF CLAIM. (a) A taxpayer may
register a claim of non-liability for unlawful federal taxes by
filing a form prescribed under this section with the secretary of
state.
(b) The secretary of state shall provide a form for
registration of a claim under this section. The form must be
verified and must include:
(1) the name, address, and social security number or
taxpayer identification number of the claimant; and
(2) a complete list of all unlawful federal taxes for
which the claimant may seek to claim non-liability.
(c) If the legislature nullifies an unconstitutional
federal Act that enacts a new tax or increases the percentage of an
existing tax, the form provided under Subsection (b) shall be
amended as needed to list those taxes.
(d) A taxpayer may register a claim of non-liability not
later than the 30th day after the date the federal tax form is filed
in compliance with federal regulations. Claims of non-liability
may be registered for each tax year for which protection is sought.
In the case of federal taxes filed quarterly, except for estimated
tax payments, claims may be registered for each quarter for which
protection is sought.
(e) The filing fee for registering a claim under this
section is $30.
(f) A document filed under this section is not a public
record for the purposes of Chapter 552, Government Code, and may be
made available only to the claimant or federal tax authorities upon
request.
Sec. 45.052. DOCUMENTATION OF FEDERAL TAX AUTHORITY'S RIGHT
TO FILE NOTICE OF FEDERAL TAX LIEN OR EXECUTE LEVY. (a) The
secretary of state shall provide a form for granting permission to
federal authorities to file a notice of federal tax lien or execute
a levy against a taxpayer who has registered a claim under Section
45.051. The form must be verified and must include:
(1) the name, address, and social security number or
taxpayer identification number of the taxpayer;
(2) the name of the federal tax authority requesting
the form;
(3) verification that the federal tax authority has
proven the taxpayer is liable for lawful federal taxes;
(4) the dollar amount for which the federal tax
authority may impose a lien or levy against the taxpayer; and
(5) the seal of the State of Texas.
(b) The form shall be completed by the secretary of state
and issued to federal tax authorities only if the applicable
requirements of Section 45.101(c) or 45.152(c) are met.
Sec. 45.053. DOCUMENTATION OF DUE DILIGENCE OF FEDERAL TAX
AUTHORITIES IN ABSENCE OF TAXPAYER CLAIM. (a) The secretary of
state shall provide a form attesting that federal tax authorities
have verified with the office of the secretary of state that a
taxpayer has not registered a claim of non-liability for unlawful
federal taxes under Section 45.051. The form must be verified and
must include:
(1) the name, address, and social security number or
taxpayer identification number of the claimant;
(2) the name of the federal tax authority performing
the due diligence; and
(3) the seal of the State of Texas.
(b) The form shall be completed by the secretary of state
and issued to federal tax authorities only if the requirements of
Section 45.101(b) or 45.152(b) are met.
SUBCHAPTER C. FEDERAL TAX LIENS
Sec. 45.101. PRELIMINARY PROCEDURES FOR FILING NOTICE OF
FEDERAL TAX LIEN. (a) Before filing a notice of federal tax lien,
federal tax authorities must determine through the secretary of
state's office whether the taxpayer has registered a claim of
non-liability for unlawful federal taxes under Section 45.051. A
filing is not valid and a filing officer may not accept a filing
without the documentation described by Subsection (b) or (c).
(b) If the taxpayer has not registered a claim under Section
45.051, the federal tax authorities must obtain the form described
by Section 45.053 and present that documentation to the filing
officer at the appropriate filing location under Section 14.002.
(c) If the taxpayer has registered a claim under Section
45.051, the federal tax authorities must provide to the secretary
of state an itemized list of the taxpayer's tax liability, citing
each tax owed and the amount owed per tax listed. If that list does
not show the taxpayer is liable for lawful federal taxes, the
federal tax authorities may not be permitted to file a notice of
federal tax lien against the taxpayer's property or property in
which third parties have an interest. If the list shows the
taxpayer is liable for lawful federal taxes:
(1) the secretary of state shall issue the form
described by Section 45.052 to the federal tax authorities; and
(2) the federal tax authorities, if that documentation
is presented to the filing officer at the appropriate filing
location under Section 14.002, shall be permitted to file a notice
of federal tax lien against the taxpayer's property, or property in
which third parties have an interest, up to the amount attributable
to those lawful taxes.
SUBCHAPTER D. PROCEDURES FOR EXECUTING FEDERAL TAX LEVY
Sec. 45.151. SCOPE OF SUBCHAPTER. This subchapter applies
only to how federal tax levies shall be executed in harmony with
Subchapter B.
Sec. 45.152. PRELIMINARY PROCEDURES FOR EXECUTING FEDERAL
TAX LEVY. (a) Before executing a federal tax levy, federal tax
authorities must determine through the secretary of state's office
whether the taxpayer has registered a claim of non-liability for
unlawful federal taxes under Section 45.051 and obtain the
documentation described by Subsection (b) or (c).
(b) If the taxpayer has not registered a claim under Section
45.051, the federal tax authorities must obtain the form described
by Section 45.053.
(c) If the taxpayer has registered a claim under Section
45.051, the federal tax authorities must provide to the secretary
of state an itemized list of the taxpayer's tax liability, citing
each tax owed and the amount owed per tax listed. If that list does
not show the taxpayer is liable for lawful federal taxes, the
federal tax authorities may not be permitted to execute the federal
tax levy against the taxpayer's property or property in which third
parties have an interest. If the list shows the taxpayer is liable
for lawful federal taxes:
(1) the secretary of state shall issue the form
described by Section 45.052 to the federal tax authorities; and
(2) the federal tax authorities shall be permitted to
levy against the taxpayer's property, or property in which third
parties have an interest, up to the amount attributable to those
lawful taxes.
Sec. 45.153. THIRD PARTIES. Federal tax authorities may
not levy third parties and a third party may not comply with a levy
by federal tax authorities unless the conditions of Section 45.152
are met.
SUBCHAPTER E. OFFENSES
Sec. 45.201. UNLAWFUL LEVY; UNLAWFUL COMPLIANCE. (a) A
person who is a federal tax authority commits an offense if the
person executes or attempts to execute a federal tax levy,
including a levy of a third party, without following the procedures
prescribed by Section 45.152.
(b) A third party who complies with a federal tax levy in
violation of Section 45.153 commits an offense.
(c) An offense under this section is a Class B misdemeanor
punishable by confinement for a term not to exceed 180 days, a fine
of not more than $5,000, or both the confinement and the fine.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.