Untitled Texas Attorney General Opinion

Hoiiorable S. Perry Brown Opinion No. M-11 Chairman-Ekecutlve Director Texas Emplojment Commission Re: Tlme$lneas of application hatin, Texm for refund of contributions under the provisions of Dear Mr. Brown: Article 5221b-12( j) (l), V.C.S. This is In an8yer to ‘your Fegtieat for an opinion concerning the following questions. ” 1. Does Article 5221b-12( j) (1) cbnstltute a three-year statute of limitations with respect to the Commission’s authority to consider applications for refund made after the three-year period has sxpired? “2. If so, is the Commlsaion authorizgd to waive at its discretion In meritorious cases this statutory defense and consider applications for refund made after the three-year period has run? “3. If you have decided that Article 5221b-12 (j) (1) is a statute of limitations and the Commission has authority to waive it in meritorious cases, may such authority be exercised at the discretion of the Commlssion prior to the filing of a lawsuit bx the tax- payer for recovery of such refund? Article 5221t-12( j) (1)) Vernon’s Civil Statutes, provides as followti: “Where any employing unit ha8 made a payment to the Commission of contrl- butions and/or penalties alleged to be due, and it is later determined that such contributions and/or penalties were not - 33 - . Hon. S, Perry Brown, pag e 2 (M-11) due, in whole or in part, the emplbying unit makings such payment may make ap- plication to the Commission for ‘an ad- justment thereof in connectionwith contribution payments then due, or for a refund thereof because such adjust- ment cannot be made. If the Commission shall determine that such contributions or penalties, or any portion thereof were errorsously collected, the Com- missIon shall allow such employingunit to make an adjustment thereof without interest in connection with contribution payments then due by such employing unit. If such adjustment cannot be made, the Commission shall refund said amount without interest from the fund. It Is provided, however, that no application for adjust- ment or refund shall ever be considered by the Commission unless the same shall have been filed within three (3) yeprs fron the date on which such contritutlons and/or penalties wo,uld have become due, had such contributions and/or penalties been legally collectible by the Commission from such employing unit. . , .” The general rule of law is that a taxing statute must be plain and unambiguous to levy a tax, but once the tax is established, then an exception to the payment of the tax is strictly construed against the exception or exemption. Texas Unemployment Compensation CornIn. v. Bass, 137 Tex. 1, 1-51 We are of the opinion, in answer to your question number 1 and 2 that Article 5221b-12( j) (1) is not a statute of limi- tations which may be waived but is rather a statute of pro- hibition; or a statute in bar, and the Employment Commission is barred from considering an application for adjustment or refund after the three-year period stated In the statute has expired. It is a well established principle of law that the courts in construing a statute will endeavor to carry out - 34 - Hon. S. Perry Brown, page. 3 (M-11) the q.ntent and purpose of the Legislature. 53 Tex.Jur. 2d 168, Statutes, Sec. 3.1.9. It is hard to conceive of language more specific than that used~ in the statutes under constructionwherein ‘it is stated that “it is provided, however, that no application for adjustment or refund shall ever be considered’ by the Commission unless the same~ shall have been filed within three years. . . .” (Emphasis added) The Legislature in’ enacting this statute’certainly intended that it have some meaning or purpose. If the three-year provision could be waived, then, in fairness to all and to make the statute apply equally to all persons it would be necessary to waive the three-year provision across the board in all cases,‘and this would make the statute absolutely meaningless, Paragraph number (2) of Section (j) of the above statute provi”es that when an employing ,unit hae nade ap- plication to the Commission for a refund or adjusfment within the three-year time limit and such application for refund or adjustment has been denied by the Commission, such employing unit, may, within one year from the date on which notice of such denial was mailed to it (meaning the employing unit), commence an action in any court of competent jurisdiction in Travis County, Texas. This indicates that the Legislature intended that the appli- cation for refund or adjustment must be filed within three years or they would be barred from commencing an action in the court for the refund or adjustment. The following is quoted from 1 Tex.Jur.2d 666, Ad- ministrative Law, Sec. 23: “The right to invoke an administrative agency’s authority may be lost by delay. Thus, where the statute prescribes a period within which application is to be made, presentation of the application within the specified period is said to be ‘exclusive and jurisdictional’. . . .‘I By virtue of our answers to your questions number 1 and 2, we deem it unnecessary to answer your question number 3, - 35 - .- Hon. S. Perry Brown, page 4 (M-11) SUMMARY The Texas Emplo@neht Commission doea not havB atithority to waive the three-year provision authorizing the time in'whlch 'an employer may apply for adjustments.or .re- funds under Article 5223b-12(j)(l), V.C.S. Prepared by J. H. Broadhtirat Assistant Attorney ffeneral APPROVED: OPINION COMMITTEE HBwthorne PhilLips, Chairman W. V. Geppert, Co-ohairman Jack Goodman John Reeves Nell Williams Linward Shivers Staff Legal Aesistant A. J. Carubbl, Jr. - 36 -