JJG S.B. 739 75(R)BILL ANALYSIS


ECONOMIC DEVELOPMENT
S.B. 739
By: Carona (Smith)
5-15-97
Committee Report (Unamended)



BACKGROUND 

Currently, the Texas Workforce Commission (TWC) does not have the
authority to collect overpayments that were made due to its own error.
Prevailing court decisions make it basically impossible for TWC to collect
such overpayments. This bill would provide that a claimant is not entitled
to an overpayment of benefits, regardless of the reason, and authorize TWC
to collect such overpayments. 

PURPOSE

As proposed, S.B. 739 provides that a claimant is not entitled to
overpayment of benefits by the Texas Workforce Commission (TWC) and
authorizes TWC to collect such overpayments. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Workforce Commission in
SECTION 2 (Section 207.121(b), 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 benefits paid to that claimant that exceed
the amount of benefits authorized by this subtitle. Makes a conforming
change. 

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

SUBCHAPTER G. EFFECT OF ERRONEOUS OVERPAYMENT OF BENEFITS
Sec. 207.121. NO ENTITLEMENT TO OVERPAID BENEFITS. (a) Provides that a
claimant who receives an overpayment of benefits is not entitled to retain
the amount overpaid. 

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

(c) Requires TWC to deduct the amount overpaid to the claimant against
that claimant's future benefits when TWC determines that a claimant who
has received an overpayment of benefits is unable to refund the amount of
the overpayment. 

(d) Provides that an overpayment is collectible in the manner provided by
Section 212.006(b)  for recovery of benefits after a final decision made
under Chapter 212. 

(e) Requires TWC, notwithstanding Subsections (a)-(d), to reduce by 50
percent any benefit payments otherwise payable during a claimant's current
benefit year and to collect the remaining balance of the overpayment under
the procedure established under Subsection (c) if TWC determines that the
claimant received an overpayment solely as a result of accidental or
negligent error on the part of TWC; the overpayment was not the result of
a decision on appeal; TWC had not previously given notice to the claimant
that an overpayment might result from an adverse decision on an issue
affecting the claimant's entitlement to benefits; and recovery of the
overpayment during the claimant's current benefit year at the time the
overpayment is discovered would cause extraordinary and lasting financial
hardship to the claimant. 

(f) Entitles a claimant to a hearing in the manner provided by Chapter 212
for a disputed claim if the claimant disputes the designation of any
benefits received by that claimant as overpaid benefits; or disagrees with
a determination made under Subsection (e). 

SECTION 3. Amends the heading of Section 211.004, Labor Code, as follows:

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

SECTION 4. Effective date: September 1, 1997. Makes application of this
Act prospective. 

SECTION 5. Emergency clause.