Texas Senate Bill SB1589

Texas 2017 - 85th Regular

Caption

Relating to suspending the statute of limitations in the Texas Unemployment Compensation Act during a lawsuit.

Impact

The proposed changes in SB1589 are expected to provide a mechanism that allows for extended periods during which employers may be assessed for unpaid unemployment contributions. This is pertinent especially during complicated legal situations where liability is contested. Supporters of the bill argue that it will ensure that all contributions, penalties, and interests that are rightfully owed can be collected without being hindered by the limitations of the statute, especially in cases involving contentious legal disputes.

Summary

Senate Bill 1589 aims to amend the Texas Unemployment Compensation Act by suspending the statute of limitations during the pendency of a judicial proceeding related to unemployment contributions. This legislation specifically targets the timeframe in which the Texas Workforce Commission can initiate civil actions against employers for contributions, penalties, or interest that may be due. The bill outlines specific circumstances under which the statute of limitations can be suspended, including administrative hearings, judicial proceedings, and bankruptcy cases under Title 11 of the United States Code.

Contention

As with many legislative changes, there is potential for contention surrounding SB1589. Critics may argue that extending the statute of limitations could lead to undue pressure on employers and that it may complicate the collection process of unemployment taxes. They might contend that such modifications could disrupt the balance between fair assessment and enforcement, possibly leading to challenges regarding what constitutes a reasonable time frame for the collection of debts. The bill must carefully address these concerns to avoid adverse reactions from the business community.