Case Information

*1 OFFlCE OF THE ATTORNEY QENERAL OF TEXAS

AUSTIN

Hon. -0. B. Shepprrd goaptavllet of Pub110 Aooountr

ACUtiB, ?0=8

fear Mr. Sbeppudr

We are in reoei

rhloh you enolosed a le

willlanu, Dlreot

Texas Unemployme Qepartneent Ir 60

Pub110 Aooounta lsoue 8 wexrlat or the mm or $22.00, under the faetr re r md that or yr. aa ofroot? this departarent mqneet.8 your ruling as

b350, V. A. 0. S., to whether should irrue in payment of this benefit rrrrant elaia of $22.00.

.

c

$#& Ooo. IL Sheppard, pa&r 2

*The quertlon oi offrrat 18 ralrad in the attaohd iron thr Texa8 Unorrplo~arnt Compeasatlon Oomul8- letter 8lOU. Thlr deputment .nay not be dlreotly interested. question offret In thla partloular in oonneotfon with other olaima elalm, but 8infJe the que8tlon arbor

I will thank you to answbr that queetlon aubmltted to thir 60 rtment by Texar Unemployment Compensation s oo~ralao 0a.e

*In oonneotlon with the attaohed oertlfloatlon paraent of benefits to the above olalmant, we wish to 6iv8 you fo~lowlng our verbal afs- raotr 03nrimng 01.~408 70~ 0rri00 rbw 64~8 agot

“we hate a Judgment againat thir lndlrldual in thr amount OS &00.31, plurr aoarued lnterert and penalties. This amount ootera delinquent oontrlbutlone wbioh ho owed thir Commirsion in hi6 atatua aa an employor 8ubJeot to the Texas Uneaployment Oompensation Aot durlag year8 1939 and 1940. On February 9, 19b3, this indlridrul filed an initial olaim for bsneiite whloh 18~ approved for W0.20.

*Ia rlew of A&661@ 4350, V. R, 0. 8.) reletin& to the dUtib8 of the OoaptrOll8r, 4d readlng, ‘WO uar3xh8 ahall be irrued t6 say pemon indebted to the State, or to his agent or wdgaee, until ruoh debt Is paid,’ it to ua that it wa8 our duty to 0811 thlr matter eoourrrd to rour attrntlon and let you deolde the question.

*Seotloa 15(o) of the Texar Unemployment Compensation pledge, enoumbranoe of Aot provider that no assignment, ‘suoh .right8 any right to benefltr rhall br rali&; beneritr rhall be exempt troa low, attibhment, ereoutlon, any other remedy whataooter proride& for the oolleotloa or debti and benefit8 reoeltbd by any lndlrldual. . , shall be exempt irom mf remsly rhat6ooTer ior the oollsotlon of . .* Shoe thla languagr indloate8 a olear all debts. logislatire intent that a olaimant’e right8 to benefltr ebould proteotsd akbmt any oontingenop, it ma7 hare eome bearing upon this oa#e. *.

209 X08. 6.0. IL mlbrpprra, peg. 3 the boert8

WI via of the faot hrto rsoognltod the rl&ht of oifret undrr Artlols 4350 quoted above, we intsrsatod thr usstlon a8 to whether or 8ot are also we ma offset our olalm or 0 400.5~ against thr mount ot bensrits dw thl8 individual IA hi8 sapaoltr a8 8 8laima8t.” brtlole b350, 1. A. c. f-t., read8 as fOiiOU8l lssusd to any parson indebted 90 warrant 8h0u to the State, or to his agent or assignee, until Buoh debt is psl6.* the sontrlbutlonaprorlded Texas

That Unemplornent Oompsnsatlon Aot are taxes *other than aih;::oren taxes’ is no longer an open question in this State.

dsnomlnated oontributionr, they are nonstheless ?riedman taxes. V. A~UIOM 8umty CO., 151 8. wr (24) 570; Ia r8 llytilyrr, D. a., 31 P. Bupp. 977; Lallr v. State, 138 S. W. (2d) 1111.

Slnoo the item of )l+OO,51 reooversd the Blat* Ed-rierd Benoit for delinquent oontrlbutlons (tares) Frank subjeot to the Texas Unemployment owing.by him as sn employer, oompen8titlon Aot aurilig the years 1939 ma 1940, 18 a tax, ths question arises to rhether or aot this la a debt owhg as tax thr State, or whether or not Benoit '18 B person Indebted State*, USUI l xaot laaguege et the 8tatutr. That a state tax 18 not a debt ln the ordinary aoaeptatioa of the tern ha8 been 80 unirereall~ aooepted is our jurlsprudenoo extended uthorltr. wo do not deem it necessary to site Thr tollowlnbj 04888 arr noted: Dollar Joint Stosk Land Bank v, Elllr Oounty Levy Improrrmmt Dlstriet Bar 3, 55 8. W. (24) 227r ’ United State8 v. motor, 266 1. 2721 Beo~ v. Tellsr ++. co. ‘1. Ls+y,(Mo.) 3) 8. 1. ?. Forest Olty Yanufaoturl nou& (24) 9841 Boll v’. Trosper, is quoted 77 P. (28 5u; these earos’to support the aoespted enoral rule that taxes

tror f 8 not indebted to are not debts t&t one who owe8 taxer In the sase of Dallas Joint Stork L8and Bank ot Dal148 Stat*. v, Blllr County L-err Inprovelaent Blstrlot No. 3, supr8, OOUrt 80idr

*A tax is not a debt in the usual and ordln~~ sense tit ix 01 D id or the word. CTtl 541, 3flgh. ~.“226~00~lt~~nv~~~:i0~~~a sd,) OIA Ann 15,. l l

TO the rimm, err008 ir’tho holdlu Or tudgr t. 0, gutohrron, r?r, while tudgb Or th. tdbrrl Dlrtrlot Court ei *ho Xoustoa Dirfrtoa aou on thr 5th Olroul8 Ooart or ~ppoalr, u th e l m 0r md st8tas T. maor, roprrt

“Th$t thd tax 18 not a d&t, that lntrrert doer not arlrr u&on lt, unl.88 md rxobpt in reoor4anoo with lr retOle4 br ttm unirareal t&r prorialoqr oi the rtatate, r&thoklty; l l a ourr*nt

Jud@ Rutohoron iotib~rurthrr 14th rpproral in an oplnioo bl Tudgr 8aaborn, f a Crcbtrer t. Ma&don, 54 f, 431, in ths ronorring laaguq$*: Thor do not rest upon oontraot,

*Ten8 are not debtr, or lrplled. Thry are lmposod br le Irlatlrr uprear authority without oonrmt rod egalnet f w 11 or the prronr tar*& to aaintain the ~OTO~UJt, protoot tha l eooiapllrh right8 rnd prftlleger it8 rubjeotr, purpo60, Thy 60 not drew intorest, some authorlced rptiirl depend ror thrir l re not eubjeot t0 m-0rr, and 40 m rxistenoo o r l roroemant upon the indlrldurl ars~t or thr tarpryan..

The term ‘dabt* In it6 ordinary sense doer not lnolude oaeea from prrrtltdly l rory et&to br an raml~atlon or lord8 b ioll~~ the tax due by hvnk Mwaob thea, It too8 sot oome withid tbr purview of Bonoit, riot bring 6 hbt, rou wool& aot bo Mlole L350, 1, P. 0. S., md ronmpue~tl~ wthorisoa to wltbhola lrausnoo or a warrant to him bonrt$ta to wbioh he might lrgally ontitled a UI employee snder the Texas Unemployment Oompoaaation ht. rta;~ bo our oourle will oonmtruo ho. 15, Sub- It

livirioa 0, or the Texar VnemplofllPent Ooaponaatioa Aot , ihioh HOSES a8 r0ii0*8t

.’

.

No assign- bbwit6 whioh aro 06 may bemmo dus or payable under this AOt shall be valid; an4 suoh rlshts shall bo to beneritr Ub 6r0 sot tingled with tundr the rdplrat, other sha 1 bb 6x0 iron say rewly whetrower ror the eol- t of al debtr rxoopt debts leotlon I T lnourrod ror neoossnrlrs furnlshod to suoh lndlrlbual or his spouse or dependents during the tlmo Whsn suoh lndirldnel was unemplopa(.. Ro waiver or any l remptlon provided for 1x1 this subseotl'on shall bs talid.' to a 0lallRaat uador a state of ra6t6

60 as to sword mteotion rush as you sub 9 t, but we prorrr to base our opialoa upon prinalples l nounoob the deolalonr to whleh wb hato rerarrod. We brliwo our answer to thr rlmt question is that also 6 8tiri0iOnt answer to the seoond quostiba as to whether or not the Stato woald harr thr right against to oifsot its judgment the $22.00 olrla or Rank lEdwax- penolt, rho ar an smplo~oo her alrraby been rdjudgeb rotltled to tbls sum or aonby.

We think the ~6. of Dallas Joint Stook Land Bank or Dallas v. lIlli6 Lsty Ilaprorrarnt Dlstrlot lfo. 3, supa, 1s aapla authority hold la this State thr in thlr ju&gmsat oass oannot br orrsst the ocmpansatlon sla~mf ths against eaplo~ss, Rank Bsnoit, ror it 11 srrsot holds l laim against the 8taOo or mniolpallty be ret orr against oaamt l tax doasasd, md obviously the oonverse or tbls would br squally true. fn the osso of Bibbard v. Oltik, 6 H.3. 155, 22 Aa. II. 4.42, it was hold under a statute in that stats whloh protided that where thorr ar r l tual debts demnndr b,rheea piahtitr at the 0r the oorrrmenooment th0 nmna~t 0r the piaintirr*r otion, 0116 dobt demand may set 0tr against thb other, the SWAO rhould not ba oonatrued tans l serssed tomrhlp, the truetoo, is a suit lnoluds against prlnolpal defendant, 10 that they PIJ be sot off euma dur rrom tho to tha deiondanti. trustor

Boreoter, wo bolirro that the brord 166-o 6f 0, the T6xrs Unemplofrunt Oomprnratioa 15, Bubsortioa #$,, u$, 16 StifiOi.nt to PrOtOOt this MplOy~ 6~inst w 0161~ ior OffSet bY YirtUO er tho pId@WIt iOr taX66 U&16t hi& fi will b* Ob**nrd thaO thr laagaaqo ot th16 69Ot1a of the 6t&ute p?OTideS that "rh6ll br Meapt fro8 my rorrrby wh8t$o- n6f ror thr oollootlon 6ll debto.. A oountorolrla or Set- en only another moth04 or rmody ot oollooting a debt, md ~66 it th6 t6x66 wore 66bt6 bi tb6 t6xpqor, whloh they ar, rot son60 hero Ooluldrrod, we are lnollnod tO the ~18~ that tha lU.@UgO Oi the l tatute QrOOhldO6 6ny aat off or ~ounterolrlr.

It tollows froa wbrt wo hare raid rboro IO arr 6t the Opi6106 that th6 Corn troller of Pub110 Aroountg 16 not authorired to withhold the 4 66~61186 a w8rruit this m-

loyr. by VfrtUO Of Art1016 aad furthor this 6lalr or UnemploymOnt OOmpen66tiO6 iairLcrano6 oannot bo OrrS@t 6g6166t P tbo judgment ior t6xos 6&66t him rhllr ho wali an mployar, Tex66 Unoaplopaont Ooep6n6rtlon Aat, &rr

'lery truly your6 l