By:  Carona                                            S.B. No. 739

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the refund of certain overpaid unemployment

 1-2     compensation benefits by the recipients of those benefits.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 207.001, Labor Code, is amended to read

 1-5     as follows:

 1-6           Sec. 207.001.  PAYMENT OF BENEFITS.  (a)  Benefits are paid

 1-7     through the commission in accordance with rules adopted by the

 1-8     commission and are due and payable under this subtitle only to the

 1-9     extent provided by this subtitle.

1-10           (b)  Except as provided by Section 210.003, a claimant is not

1-11     entitled to retain any benefits paid to that claimant that exceed

1-12     the amount of benefits authorized by this subtitle.

1-13           SECTION 2.  Chapter 207, Labor Code, is amended by adding

1-14     Subchapter G to read as follows:

1-15         SUBCHAPTER G.  EFFECT OF ERRONEOUS OVERPAYMENT OF BENEFITS

1-16           Sec. 207.121.  NO ENTITLEMENT TO OVERPAID BENEFITS.  (a)  A

1-17     claimant who receives an overpayment of benefits, regardless of the

1-18     reason for the overpayment, is not entitled to retain the amount

1-19     overpaid.

1-20           (b)  The claimant shall refund the amount overpaid to the

1-21     compensation fund in the manner prescribed by rules adopted by the

1-22     commission.  The commission by rule may allow a repayment made

1-23     under this subsection to be made in periodic payments.

 2-1           (c)  If the commission determines that a claimant who has

 2-2     received an overpayment of benefits is unable to refund to the

 2-3     compensation fund the amount of the overpayment, the commission

 2-4     shall deduct the amount overpaid to the claimant from that

 2-5     claimant's future benefits under this subtitle.

 2-6           (d)  An overpayment subject to this section is collectible in

 2-7     the manner provided by Section 212.006(b) for recovery of benefits

 2-8     after a final decision made under Chapter 212.

 2-9           (e)  Notwithstanding Subsections (a)-(d), the commission

2-10     shall reduce by 50 percent any benefit payments otherwise payable

2-11     during a claimant's current benefit year and shall collect the

2-12     remaining balance of the overpayment under the procedure

2-13     established under Subsection (c) if the commission determines that:

2-14                 (1)  the claimant received an overpayment solely as a

2-15     result of accidental or negligent error on the part of the

2-16     commission;

2-17                 (2)  the overpayment was not the result of a decision

2-18     on appeal;

2-19                 (3)  the commission had not previously given notice to

2-20     the claimant that an overpayment might result from an adverse

2-21     decision on an issue affecting the claimant's entitlement to

2-22     benefits; and

2-23                 (4)  recovery of the overpayment during the claimant's

2-24     current benefit year at the time the overpayment is discovered

2-25     would cause extraordinary and lasting financial hardship to the

 3-1     claimant.

 3-2           (f)  A claimant is entitled to a hearing in the manner

 3-3     provided by Chapter 212 for a disputed claim if the claimant:

 3-4                 (1)  disputes the designation of any benefits received

 3-5     by that claimant as overpaid benefits; or

 3-6                 (2)  disagrees with a determination made under

 3-7     Subsection (e).

 3-8           SECTION 3.  The heading to Section 211.004, Labor Code, is

 3-9     amended to read as follows:

3-10           Sec. 211.004.  OFFSET UNDER CERTAIN RECIPROCAL ARRANGEMENTS

3-11     FOR OVERPAYMENT OF UNEMPLOYMENT BENEFITS.

3-12           SECTION 4.  This Act takes effect September 1, 1997, and

3-13     applies only to unemployment compensation benefits paid to an

3-14     individual on or after that date.  Benefits paid before that date

3-15     are governed by the law in effect on the date the benefits were

3-16     paid, and the former law is continued in effect for that purpose.

3-17           SECTION 5.  The importance of this legislation and the

3-18     crowded condition of the calendars in both houses create an

3-19     emergency and an imperative public necessity that the

3-20     constitutional rule requiring bills to be read on three several

3-21     days in each house be suspended, and this rule is hereby suspended.