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.