1-1 By: Carona S.B. No. 739 1-2 (In the Senate - Filed February 24, 1997; February 26, 1997, 1-3 read first time and referred to Committee on Economic Development; 1-4 April 11, 1997, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 11, Nays 0; April 11, 1997, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 739 By: Lucio 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the refund of certain overpaid unemployment 1-11 compensation benefits by the recipients of those benefits. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Section 207.001, Labor Code, is amended to read 1-14 as follows: 1-15 Sec. 207.001. PAYMENT OF BENEFITS. (a) Benefits are paid 1-16 through the commission in accordance with rules adopted by the 1-17 commission and are due and payable under this subtitle only to the 1-18 extent provided by this subtitle. 1-19 (b) Except as provided by Section 210.003, a claimant is not 1-20 entitled to retain any benefits paid to that claimant that exceed 1-21 the amount of benefits authorized by this subtitle. 1-22 SECTION 2. Chapter 207, Labor Code, is amended by adding 1-23 Subchapter G to read as follows: 1-24 SUBCHAPTER G. EFFECT OF ERRONEOUS OVERPAYMENT OF BENEFITS 1-25 Sec. 207.121. NO ENTITLEMENT TO OVERPAID BENEFITS. (a) A 1-26 claimant who receives an overpayment of benefits, regardless of the 1-27 reason for the overpayment, is not entitled to retain the amount 1-28 overpaid. 1-29 (b) The claimant shall refund the amount overpaid to the 1-30 compensation fund in the manner prescribed by rules adopted by the 1-31 commission. The commission by rule may allow a repayment made 1-32 under this subsection to be made in periodic payments. 1-33 (c) If the commission determines that a claimant who has 1-34 received an overpayment of benefits is unable to refund to the 1-35 compensation fund the amount of the overpayment, the commission 1-36 shall deduct the amount overpaid to the claimant from that 1-37 claimant's future benefits under this subtitle. 1-38 (d) An overpayment subject to this section is collectible in 1-39 the manner provided by Section 212.006(b) for recovery of benefits 1-40 after a final decision made under Chapter 212. 1-41 (e) Notwithstanding Subsections (a)-(d), the commission 1-42 shall reduce by 50 percent any benefit payments otherwise payable 1-43 during a claimant's current benefit year and shall collect the 1-44 remaining balance of the overpayment under the procedure 1-45 established under Subsection (c) if the commission determines that: 1-46 (1) the claimant received an overpayment solely as a 1-47 result of accidental or negligent error on the part of the 1-48 commission; 1-49 (2) the overpayment was not the result of a decision 1-50 on appeal; 1-51 (3) the commission had not previously given notice to 1-52 the claimant that an overpayment might result from an adverse 1-53 decision on an issue affecting the claimant's entitlement to 1-54 benefits; and 1-55 (4) recovery of the overpayment during the claimant's 1-56 current benefit year at the time the overpayment is discovered 1-57 would cause extraordinary and lasting financial hardship to the 1-58 claimant. 1-59 (f) A claimant is entitled to a hearing in the manner 1-60 provided by Chapter 212 for a disputed claim if the claimant: 1-61 (1) disputes the designation of any benefits received 1-62 by that claimant as overpaid benefits; or 1-63 (2) disagrees with a determination made under 1-64 Subsection (e). 2-1 SECTION 3. The heading to Section 211.004, Labor Code, is 2-2 amended to read as follows: 2-3 Sec. 211.004. OFFSET UNDER CERTAIN RECIPROCAL ARRANGEMENTS 2-4 FOR OVERPAYMENT OF UNEMPLOYMENT BENEFITS. 2-5 SECTION 4. This Act takes effect September 1, 1997, and 2-6 applies only to unemployment compensation benefits paid to an 2-7 individual on or after that date. Benefits paid before that date 2-8 are governed by the law in effect on the date the benefits were 2-9 paid, and the former law is continued in effect for that purpose. 2-10 SECTION 5. The importance of this legislation and the 2-11 crowded condition of the calendars in both houses create an 2-12 emergency and an imperative public necessity that the 2-13 constitutional rule requiring bills to be read on three several 2-14 days in each house be suspended, and this rule is hereby suspended. 2-15 * * * * *