Enrolled Bill Summary

            House Bill 1496 amends the Labor Code to provide for an initiative for reduction in benefit fraud and claim overpayments in unemployment compensation. The bill requires the state auditor by August 31, 2004, to conduct a review of the state unemployment compensation insurance program at the Texas Workforce Commission to identify strategies to reduce fraud and claim overpayments. The bill requires the commission to implement the strategies by August 31, 2005, if feasible with existing staff and resources. The bill requires the commission and the state auditor to develop proposed legislation to allow the commission to use private collection agencies to pursue uncollected claim overpayments. House Bill 1496 also requires the state auditor and the commission to submit a joint report to the legislature including recommendations made and actions taken regarding this initiative and provides for the expiration of the initiative on September 1, 2007.

            Reason Given for Veto: "House Bill No. 1496 would disregard the constitutional doctrine of separation of powers. Set forth in Article II of the Texas Constitution, this doctrine establishes that there be three distinct departments of our government - legislative, executive, and judicial - and that no department 'shall exercise any power properly attached to either of the others.' House Bill No. 1496 would violate this principle by inappropriately granting a legislative agency authority over an executive branch agency. It would require the Texas Workforce Commission to adopt directives of the State Auditor.

                "However, I support the intent of House Bill No. 1496. Therefore, by executive order I am directing the Texas Workforce Commission to develop and implement innovative unemployment insurance fraud detection and collection strategies."