| 1 | 1 | | 84R6954 LED-D |
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| 2 | 2 | | By: Meyer H.B. No. 3661 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to recovery of covered unemployment compensation debt |
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| 8 | 8 | | through participation in the federal Treasury Offset Program. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 214, Labor Code, is amended by adding |
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| 11 | 11 | | Section 214.009 to read as follows: |
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| 12 | 12 | | Sec. 214.009. RECOVERY OF COVERED UNEMPLOYMENT |
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| 13 | 13 | | COMPENSATION DEBT THROUGH FEDERAL TREASURY OFFSET PROGRAM. (a) In |
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| 14 | 14 | | this section, "program" means the federal Treasury Offset Program |
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| 15 | 15 | | authorized by 26 U.S.C. Section 6402(f). |
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| 16 | 16 | | (b) The commission may collect the following covered |
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| 17 | 17 | | unemployment compensation debt through the program: |
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| 18 | 18 | | (1) a past-due debt for erroneous payment of benefits |
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| 19 | 19 | | due to fraud that has become final under law and remains |
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| 20 | 20 | | uncollected; |
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| 21 | 21 | | (2) a past-due debt for erroneous payment of benefits |
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| 22 | 22 | | due to a person's failure to report earnings, even if |
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| 23 | 23 | | non-fraudulent, that has become final under law and remains |
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| 24 | 24 | | uncollected; |
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| 25 | 25 | | (3) a past-due employer contribution owed to the |
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| 26 | 26 | | compensation fund for which the commission has determined the |
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| 27 | 27 | | person to be liable and that remains uncollected; and |
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| 28 | 28 | | (4) any penalties and interest assessed by the |
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| 29 | 29 | | commission on a debt described by Subdivision (1), (2), or (3). |
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| 30 | 30 | | (c) Before submitting covered unemployment compensation |
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| 31 | 31 | | debt for recovery under the program, the commission must: |
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| 32 | 32 | | (1) notify the debtor by regular United States mail |
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| 33 | 33 | | that the commission plans to recover the debt through the offset of |
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| 34 | 34 | | any federal tax refund; |
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| 35 | 35 | | (2) provide the debtor at least 60 days following the |
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| 36 | 36 | | date the notice is provided under Subdivision (1) to present to the |
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| 37 | 37 | | commission evidence that all or part of the debt is not: |
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| 38 | 38 | | (A) legally enforceable; |
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| 39 | 39 | | (B) due to fraud or unreported earnings; or |
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| 40 | 40 | | (C) a contribution owed to the compensation fund; |
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| 41 | 41 | | and |
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| 42 | 42 | | (3) consider any evidence presented by the debtor to |
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| 43 | 43 | | determine the amount of debt that is legally enforceable and owed. |
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| 44 | 44 | | (d) In considering evidence presented by a debtor under |
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| 45 | 45 | | Subsection (c), the commission may determine only whether the |
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| 46 | 46 | | debtor has demonstrated that the debt is not subject to recovery |
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| 47 | 47 | | through the program so that the commission is able to minimize |
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| 48 | 48 | | erroneous offsets. The commission may not review the initial |
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| 49 | 49 | | determination establishing the debtor's liability. |
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| 50 | 50 | | (e) The commission shall assess against the debtor the cost |
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| 51 | 51 | | of any administrative fee charged by the United States Department |
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| 52 | 52 | | of the Treasury for each offset. The commission may add the |
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| 53 | 53 | | assessed amount to the covered unemployment compensation debt that |
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| 54 | 54 | | is offset under the program. |
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| 55 | 55 | | SECTION 2. This Act takes effect September 1, 2015. |
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