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.