HBA-NLM H.B. 3127 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3127
By: Chisum
Economic Development
4/11/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, the Texas Workforce Commission (commission) attempts to collect
unemployment benefits which are paid in error.  The commission ceases any
further attempts to collect these amounts after the case goes through the
commission's normal collection process. The commission reported $245
million of overpaid unemployment benefits, as of August 31, 1998.  

H.B. 3127  provides that a claimant who receives an overpayment of
benefits, regardless of the reason for the overpayment, is not entitled to
retain the amount overpaid, except as provided by Section 210.003
(Employee's Liability; Sole Liability of Employer). This bill creates
Subchapter H (Collection of Overpaid Benefits), Chapter 207, Labor Code,
authorizing the commission, if the commission determines that a claimant
who has received an overpayment of benefits is unable or unwilling to
refund to the compensation fund the amount of the overpayment, to deduct
the amount overpaid to the claimant against that claimant's future benefits
under this subtitle or submit the overpayment for collection. 


RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Workforce Commission in
SECTION 1 (Section 207.131, Labor Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 207.001, Labor Code, to provide that a claimant
is not entitled to retain any unemployment compensation benefits paid to
that claimant that exceed the amount of benefits authorized by this
subtitle, except as provided by Section 210.003 (Employee's Liability; Sole
Liability of Employer). 

SECTION 2.  Amends Chapter 207, Labor Code, by adding Subchapter H, as
follows: 

SUBCHAPTER H.  COLLECTION OF OVERPAID BENEFITS

Sec. 207.131.  NO ENTITLEMENT TO OVERPAID BENEFITS.  (a)  Provides that a
claimant who receives an overpayment of benefits, regardless of the reason
for the overpayment, is not entitled to retain the amount overpaid, except
as provided by Section 210.003.  

(b)  Requires the claimant to refund the amount overpaid to the
compensation fund in the manner prescribed by rules adopted by the
commission.  Authorizes the Texas Workforce Commission (commission), by
rule, to allow a repayment made under this subsection to be made in
periodic payments.  

(c)   Authorizes the commission, if the commission determines that a
claimant who has received an overpayment of benefits is unable or unwilling
to refund to the compensation fund the amount of the overpayment, to deduct
the amount overpaid to the claimant against that claimant's future benefits
under this subtitle or submit the overpayment for collection in the manner
provided by Section 207.132.  
 
Sec. 207.132.  COLLECTION OF OVERPAID BENEFITS.  (a)  Requires the
commission to collect overpaid benefits and authorizes the commission to
contract with private vendors for the collection of those benefits as
provided by this section. Requires the commission to design and control any
collections process adopted under this section.  

(b) Requires the commission to issue a request for proposals for a contract
for collection of overpayments determined to be uncollectible through the
procedures authorized under Section 207.131 or 212.006 (Recovery of
Benefits Paid).  

(c)  Authorizes the division of the commission that is responsible for
collection of overpaid benefits to submit a bid for the contract, as well
as any private vendor determined to be qualified by the commission.
Requires the commission to require a person who enters into the contract to
submit bills to the commission for payment. Prohibits a contractor under
this section from being paid through retention of a percentage of the
amount collected.  

(d)  Provides that a contract entered into by the commission under this
section must conform to any applicable federal regulations as necessary to
enable the commission to be eligible to obtain federal funding for payment
of the contract.  

Sec. 207.133.  DISPUTE RESOLUTION.  Provides that a claimant who disputes
the designation of any benefits received by that claimant as overpaid
benefits is entitled to a hearing in the manner provided by Chapter 212
(Dispute Resolution) for a disputed claim.  

SECTION 3.  Amend the heading to Section 211.004, Labor Code, as follows: 

Sec. 211.004. New title: OFFSET UNDER CERTAIN RECIPROCAL ARRANGEMENTS FOR
OVERPAYMENT OF UNEMPLOYMENT BENEFITS.  

SECTION 4.  Amends Section 212.006, Labor Code, to provide that benefits
paid to a claimant that are not in accordance with the final decision are
subject to Subchapter H, Chapter 207.  Provides that if overpaid benefits
are not collected by a private vendor as provided by Section 207.132,
benefits paid are also collectible by the commission.  Deletes existing
text relating to required refunds to the commission and deductions from
future benefits.  Makes a nonsubstantive change. 

SECTION 5.  Effective date:  September 1, 1999.
                       Makes application of this Act prospective.

SECTION 6.  Emergency clause.