By Carona                                        S.B. No. 739

      75R713 PB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the refund of certain overpaid unemployment

 1-3     compensation benefits by the recipients of those benefits.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 207.001, Labor Code, is amended to read

 1-6     as follows:

 1-7           Sec. 207.001.  PAYMENT OF BENEFITS.  (a)  Benefits are paid

 1-8     through the commission in accordance with rules adopted by the

 1-9     commission and are due and payable under this subtitle only to the

1-10     extent provided by this subtitle.

1-11           (b)  Except as provided by Section 210.003, a claimant is not

1-12     entitled to retain any benefits paid to that claimant that exceed

1-13     the amount of benefits authorized by this subtitle.

1-14           SECTION 2.  Chapter 207, Labor Code, is amended by adding

1-15     Subchapter G to read as follows:

1-16         SUBCHAPTER G.  EFFECT OF ERRONEOUS OVERPAYMENT OF BENEFITS

1-17           Sec. 207.121.  NO ENTITLEMENT TO OVERPAID BENEFITS.  (a) A

1-18     claimant who receives an overpayment of benefits, regardless of the

1-19     reason for the overpayment, is not entitled to retain the amount

1-20     overpaid.

1-21           (b)  The claimant shall refund the amount overpaid to the

1-22     compensation fund in the manner prescribed by rules adopted by the

1-23     commission.  The commission by rule may allow a repayment made

1-24     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 against 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)  A claimant who disputes the designation of any benefits

2-10     received by that claimant as overpaid benefits is entitled to a

2-11     hearing in the manner provided by Chapter 212 for a disputed claim.

2-12           SECTION 3.  The heading to Section 211.004, Labor Code, is

2-13     amended to read as follows:

2-14           Sec. 211.004.  OFFSET UNDER CERTAIN RECIPROCAL ARRANGEMENTS

2-15     FOR OVERPAYMENT OF UNEMPLOYMENT BENEFITS.

2-16           SECTION 4.  This Act takes effect September 1, 1997, and

2-17     applies only to unemployment compensation benefits paid to an

2-18     individual on or after that date.  Benefits paid before that date

2-19     are governed by the law in effect on the date the benefits were

2-20     paid, and the former law is continued in effect for that purpose.

2-21           SECTION 5.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended.