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