SRC-JFA S.B. 739 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 739
By: Carona
Economic Development
2-28-97
As Filed


DIGEST 

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.  Provides that a
claimant who receives an overpayment of benefits is not entitled to retain
the amount overpaid. 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.  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.  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.  Provides that a
claimant who disputes the designation of any benefits received by the
claimant as overpaid benefits is entitled to a hearing in the manner
provided by Chapter 212. 

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.