HBA-TYH H.B. 1386 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1386
By: Keffer
Economic Development
3/10/1999
Introduced



BACKGROUND AND PURPOSE 

Based on previous court decisions, the Texas Workforce Commission
(commission) is currently prevented from collecting overpayment of
unemployment benefits from recipients if the overpayment resulted from
agency error.  Unlike other dispersing agencies, such as the Internal
Revenue Service or the Texas Department of Human Services, an overpayment
may remain with the claimant.  This results in claimants receiving
additional benefits to which they are not entitled.  It may also contribute
to higher unemployment tax rates for all employers.  H.B. 1386 provides
that a claimant is not entitled to an overpayment of benefits, regardless
of the reason, and authorizes the commission to collect such overpayments. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Workforce Commission in
SECTION 2 (Section 207.131, Labor Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 207.001, Labor Code, by redesignating existing
text as Subsection (a) and adding Subsection (b), as follows: 
 
(b)  Provides that except as provided by Section 210.003 (Employee's
Liability; Sole Liability of Employer), a claimant is not entitled to
retain any benefits paid to that claimant exceeding the amount of benefits
authorized by this subtitle (Texas Unemployment Compensation Act).  
 
SECTION 2.  Amends Chapter 207, Labor Code, by adding Subchapter H, as
follows: 

SUBCHAPTER H.  EFFECT OF ERRONEOUS OVERPAYMENT OF BENEFITS

Sec. 207.131.  NO ENTITLEMENT TO OVERPAID BENEFITS.  (a) Provides that
except as provided by Section 210.003, a claimant is not entitled to retain
any benefits paid to that claimant exceeding the amount of benefits
authorized by this subtitle.  
 
(b)  Requires the claimant to refund the amount overpaid to the
compensation fund in the manner prescribed by rules adopted by the Texas
Workforce Commission (commission). Authorizes the commission by rule to
allow repayment made under this subsection to be made in periodic payments.
 
(c)  Requires the commission to deduct the amount overpaid to the claimant
against that claimant's future benefits under this subtitle, if the
commission determines that a claimant who has received an overpayment of
benefits is unable to refund the amount of the overpayment.  
 
(d)  Provides that an overpayment subject to this section is collectible in
the manner provided by Section 212.006(b) (Recovery of Benefits Paid) for
recovery of benefits after a final decision made under Chapter 212 (Dispute
Resolution).  
 
 (e)  Provides that a claimant who disputes the designation of any benefits
received by that claimant as overpaid benefits is entitled to a hearing in
the manner provided by Chapter 212 for a disputed claim.  
 
SECTION 3.  Amends the heading of Section 211.004, Labor Code, as follows: 

Sec. 211.004.  New title: OFFSET UNDER CERTAIN RECIPROCAL ARRANGEMENTS FOR
OVERPAYMENT OF UNEMPLOYMENT BENEFITS.  

SECTION 4.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 5.Emergency clause.