Section 213.051(a) of the Texas Unemployment Compensation Act (TUCA) states that after a judgment is entered or an assessment is final against an employer for a contribution, penalty, or interest and execution is returned unsatisfied, an employer liable for the unpaid judgment may not employ an individual in this state until the employer furnishes a surety bond.

Section 213.052(a) states that if an individual or employing unit appears to be violating or threatening to violate this subtitle or any rule or order of the commission adopted under this subtitle relating to the collection of a contribution, a penalty, or interest, the commission shall bring suit against the individual or employing unit to restrain the violation.

Accounts become candidates for injunction action when the following criteria are met:

• The employer is an active account with employment.
• There must be a judgment or final assessment against the employer.
• The total indebtedness meets the current monetary criteria.
• There must be taxes for the last four quarters.
• No recent payments have been made. (Freeze/Levies, which resulted in the collection of some money, should be excluded.)

A recommendation for injunction action can be made by any accounts examiner in the State Office or in the field office.

An account forwarded to Civil Actions Unit for injunction action is reviewed to insure that the above criteria is met and to determine any unusual circumstances. A log of all accounts previously reviewed for injunction action is maintained and this log is checked to determine if action is already underway on the account. If not, the account is entered on the log by tax area and region, name, account number, cause number(s) and/or assessment number(s), and date of judgment(s) and/or final assessment(s), the current amount due under that judgment or assessment, and the current active delinquent amount due.

If injunction action is warranted, a memo is sent to the field accounts examiner responsible for the account per account examiner information screen.

This memo allows the field examiner 60 days to obtain compliance with payment(s) or to recommend further collection action. The Status folder should be returned to Records Management Center (RMC) with a 60-day trace established unless further assessment action is necessary.

If further collection action is recommended by the field accounts examiner, forward the account to the Administrative Actions Unit for Freeze/Levy action if none has been attempted recently or if Freeze/Levies at additional banks should be attempted. If any additional tax liens are needed, they should be requested at this time.

Should the Freeze/Levy fail to collect any monies, the account is forwarded to the unit supervisor with a request that an execution be issued as a preliminary to injunction action. After the execution is prepared and forwarded to the field accounts examiner for delivery to the sheriff/constable, the Status folder is returned to RMC with a four-month trace established.

If the execution is returned from the sheriff or constable unsatisfied (nulla bona), the employer is sent a special default notice with the Collection Section supervisor's signature. Before sending the letter, any past due reports should be obtained via a field assignment.

• The original and five copies of the letter are prepared. The original should be mailed to the employer, one copy sent to the field, one copy placed in each Collection folder, one copy is sent to archiving with the appropriate route sheet and the remaining copies placed in the Status folder for later use.
• The letter requires an estimation of future contributions due during the remaining calendar year from the employer. That estimation should be based on the previous four quarters, which were not estimated, and by dividing by four. All worksheets should be placed in the Status folder for later reference.
• The letter should give the following payment due date:
• If the letter is sent early in the month, give the employer until the end of that month and show only the payoff for that month.
• If the letter is dated after the 15th of the month, give the employer until the 15th of the following month to pay and show payoff figures for both the current month and the following month.
• The bond computation in the letter should be calculated as follows:
• Double the current debt.
• Add the estimated future contributions for the current calendar year.
• Round the total of these two figures down to the nearest thousand.

If the injunction criteria continues to be met after the deadline for payment given in the special default notice has passed, request that the field accounts examiner verify employment, preferable through personal contact with the employer and taking his supervisor along as a witness. A notarized affidavit stating that the employer currently has employment and the number of persons employed should be obtained from the field accounts examiner. After this affidavit is received, the account is then certified to the Attorney General.

When certifying the account to the Attorney General, a sworn statement of employer account, Form C-25, reflecting the current month's known indebtedness and another Form C-25 reflecting the future estimated delinquency for the remainder of the calendar year is prepared. These C-25's may reflect different quarters and amounts than those shown in the special default notice because of additional penalties, additional reports being filed and/or the entrance into a new calendar year.

A total of four copies of each set of C-25's are forwarded to the Attorney General under cover transmittal letter. Also enclosed is a copy of the special default notice and copies of each judgment, final assessment, execution, and pending assessment on the account. A copy of the transmittal letter and each C-25 should be placed in each Collection folder.

An injunction court record should be established on the Tax system via court record maintenance screen when the above documents are forwarded to the Attorney General by taking the following steps:

• From the court record maintenance screen, select "A" for add and enter.
• Under Certified, key the date on the AG transmittal letter.
• Under Type, key "I" for injunction and press enter.

The court record will display the next day. The additional information shown on the court record should be entered via court record maintenance screen as it is received from the Attorney General's office. Also, use delinquency comments screen to set up any comments pertaining to the injunction action.

Each step in the injunction process must be dated and logged on the Injunction Action Log. The log should be checked periodically to ensure appropriate actions are justified and being taken by the Attorney General's office. Accounts meeting criteria at the current time should be marked to stand out on the log. The accounts examiner should use caution, as non-action may be better than questionable action due to potential repercussions.