This section discusses the aspects of the law that specifically apply to trustees in bankruptcy acting as employing units.

A trustee in bankruptcy and a receiver in receivership is considered the same employing unit as the immediate predecessor. This means that the trustee need file only an amended Status Report to record the change in operations when he/she begins to operate the business; and that the style of the predecessor's account will be changed on Commission records, the account number remaining the same.

NOTE: The trustee is responsible for filing reports and payment of taxes (and penalties) only for that period of time during which he/she operated the business.

This section discusses the aspects of the law that specifically apply to separate and community property.

Section 3.001 of The Texas Family Code provides as follows:

Although the above section of the Family Code very clearly sets forth what constitutes the separate property of the husband and wife, it does not address who has control over the separate property. Section 3.101 of the Texas Family Code provides, however, that each spouse has the sole management, control and disposition of his or her separate property. Thus, it may be seen that a married individual has the exclusive right to manage and control his/her separate property, and there are no restrictions on his/her engaging in any kind of business transaction with respect to his/her separate property. The joinder of the spouse is not necessary to convey title to his/her separate property. In the event property is acquired in trade for separate property this too would constitute separate property to the same extent as the original property.

Community property consists of property acquired by the husband and wife jointly after their marriage and property acquired by either of them after their marriage by means other than those set forth in Subsections 1, 2 and 3 of Section 3.001 of the Family Code. Section 3.003 of the Family Code provides that property possessed by either spouse during or on dissolution of marriage is presumed to be community property. This presumption, however, may be rebutted by evidence showing that the property is separate property.

Section 5.22 of the Texas Family Code Provides as follows:

As may be seen from the above Section of the Family Code, there are two classes of community property now recognized. The first has been referred to as Special Community Property and is subject to the full management, control, and disposition of the spouse to whom it is attributed. The other class is what may be known as General Community Property and is subject to the joint management and control of the husband or wife unless the spouses have agreed otherwise.

Where there is a claim of separate property by either the husband or wife all of the available facts must be considered. Knowledge of the following may assist in making a determination:

1. How the married man or woman acquired the original capital invested in the business,
   
   
2. If the property was kept separate from community property and not commingled,
   
   
3. How the profits from the operation of the business are handled. Have they been kept separate and apart from the original investment or capital assets of the business? If an attempt has been made to keep profits separate from capital investment, describe the manner in which this attempt has been made,
   
   
4. If there has been any representation or evidence that a gift has been made by the married man/woman to his/her share of the profits. If there has been a gift, what was the nature of the gift? When and how was it made?
   
   
5. In whose name the bank account was carried for the business. How is this bank account handled? What deposits are made to the bank account and for what purposes are withdrawals made from the account? Who is authorized to make withdrawals?

This section discusses the aspects of the law that specifically apply to establishing UI Tax liability of Workforce Developments Boards.

The 74th Legislature authorized the formation of Local Workforce Development Boards (LWDB) beginning July 1, 1996.

LWDB's can form as corporations or unincorporated associations. If a LWDB is formed, it will assume the responsibilities of the Private Industry Council (PIC) under the provisions of the Job Training Partnership Act.

A LWDB's application will be reviewed by the Texas Workforce Commission and forwarded to the governor for approval and certification.

A LWDB may employ staff to support its functions. However the staff must be separate from and independent of any organization providing workforce education or workforce training and services in the workforce development area.

Chief Elected Officials (CEOs)

A. Mayors

1. Mayor of each city with a population greater than 100,000 in the workforce development area; or
   
   
2. If (1) is not applicable, the Mayor of each city with a population greater than 50,000 in the workforce development area; or
   
   
3. If (2) is not applicable, the mayor of the largest city in the workforce development area.

B. All County Judges in the workforce development area.

For the purposes of the TUCA a LWDB can be classified as:

1. A Corporation if the LWDB's are registered with the Secretary of State
2. Other if the LWDB is not registered with the Secretary of State or
3. 501(c)(3) Non-Profit Reimbursing - if the LWDB is a corporation that has applied and received a 501(c)(3) exemption from the Internal Revenue Service.

If a Private Industry Council (PIC) is responsible for administration of the Job Training Partnership Act it becomes the LWDB, a new UI Tax account may not be required if the PIC is registered with TWC and the LWDB assumes the PIC's corporate charter. If this occurs the EMF status record will be updated to reflect the corporate name change.

The State Office Tax, Status Section will contact each certified LWDB and provide each board with a status report. Status will review the completed status report and establish a UI Tax account for each LWDB that meets TUCA liability criteria.

If the Status Section cannot obtain a status report then a field investigation to obtain a completed status report will be issued. Field tax will proceed with the investigation on the same premise as any other status investigation.

Personal Liability: A member or former member of a local WDB may not be held personally liable for any claim, damage, loss, or repayment obligation of federal or state funds, unless the act or omission that causes the claim, damage, loss or repayment obligation constitutes official misconduct on the part of the board member, willful disregard of the requirements of the Act on the part of the board member, or gross negligence on the part of the board member.