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.

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