By Chisum H.B. No. 3127
76R7347 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to collection of certain overpaid unemployment
1-3 compensation 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 H to read as follows:
1-16 SUBCHAPTER H. COLLECTION OF OVERPAID BENEFITS
1-17 Sec. 207.131. NO ENTITLEMENT TO OVERPAID BENEFITS. (a)
1-18 Except as provided by Section 210.003, a claimant who receives an
1-19 overpayment of benefits, regardless of the reason for the
1-20 overpayment, is not entitled to retain the amount 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 or unwilling to
2-3 refund to the compensation fund the amount of the overpayment, the
2-4 commission may deduct the amount overpaid to the claimant against
2-5 that claimant's future benefits under this subtitle or submit the
2-6 overpayment for collection in the manner provided by Section
2-7 207.132.
2-8 Sec. 207.132. COLLECTION OF OVERPAID BENEFITS. (a) The
2-9 commission shall collect overpaid benefits and may contract with
2-10 private vendors for the collection of those benefits as provided by
2-11 this section. The commission shall design and control any
2-12 collections process adopted under this section.
2-13 (b) The commission shall issue a request for proposals for a
2-14 contract for collection of overpayments determined to be
2-15 uncollectible through the procedures authorized under Section
2-16 207.131 or 212.006.
2-17 (c) The division of the commission that is responsible for
2-18 collection of overpaid benefits may submit a bid for the contract,
2-19 as well as any private vendor determined to be qualified by the
2-20 commission. The commission shall require a person who enters into
2-21 the contract to submit bills to the commission for payment. A
2-22 contractor under this section may not be paid through retention of
2-23 a percentage of the amount collected.
2-24 (d) A contract entered into by the commission under this
2-25 section must conform to any applicable federal regulations as
2-26 necessary to enable the commission to be eligible to obtain federal
2-27 funding for payment of the contract.
3-1 Sec. 207.133. DISPUTE RESOLUTION. A claimant who disputes
3-2 the designation of any benefits received by that claimant as
3-3 overpaid benefits is entitled to a hearing in the manner provided
3-4 by Chapter 212 for a disputed claim.
3-5 SECTION 3. The heading to Section 211.004, Labor Code, is
3-6 amended to read as follows:
3-7 Sec. 211.004. OFFSET UNDER CERTAIN RECIPROCAL ARRANGEMENTS
3-8 FOR OVERPAYMENT OF UNEMPLOYMENT BENEFITS.
3-9 SECTION 4. Section 212.006, Labor Code, is amended to read
3-10 as follows:
3-11 Sec. 212.006. RECOVERY OF BENEFITS PAID. (a) Benefits paid
3-12 to a claimant that are not in accordance with the final decision
3-13 are subject to Subchapter H, Chapter 207 [shall be:]
3-14 [(1) refunded by the claimant to the commission; or]
3-15 [(2) in the discretion of the commission, deducted
3-16 from future benefits payable to the claimant under this subtitle].
3-17 (b) If overpaid benefits are not collected by a private
3-18 vendor as provided by Section 207.132, benefits [Benefits] paid
3-19 that are not in accordance with the final decision are also
3-20 collectible by the commission in the manner provided by Sections
3-21 213.031, 213.032, 213.033, 213.035, and 213.051 for the collection
3-22 of past due contributions.
3-23 SECTION 5. This Act takes effect September 1, 1999, and
3-24 applies only to unemployment compensation benefits paid to an
3-25 individual on or after that date. Benefits paid before that date
3-26 are governed by the law in effect on the date the benefits were
3-27 paid, and the former law is continued in effect for that purpose.
4-1 SECTION 6. The importance of this legislation and the
4-2 crowded condition of the calendars in both houses create an
4-3 emergency and an imperative public necessity that the
4-4 constitutional rule requiring bills to be read on three several
4-5 days in each house be suspended, and this rule is hereby suspended.