By: Jackson S.B. No. 393
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the refund of certain overpaid unemployment
1-2 compensation benefits by the recipients of those benefits.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 207.001, Labor Code, is amended to read
1-5 as follows:
1-6 Sec. 207.001. PAYMENT OF BENEFITS. (a) Benefits are paid
1-7 through the commission in accordance with rules adopted by the
1-8 commission and are due and payable under this subtitle only to the
1-9 extent provided by this subtitle.
1-10 (b) Except as provided by Section 210.003, a claimant is not
1-11 entitled to retain any benefits paid to that claimant that exceed
1-12 the amount of benefits authorized by this subtitle.
1-13 SECTION 2. Chapter 207, Labor Code, is amended by adding
1-14 Subchapter H to read as follows:
1-15 SUBCHAPTER H. EFFECT OF ERRONEOUS OVERPAYMENT OF BENEFITS
1-16 Sec. 207.131. NO ENTITLEMENT TO OVERPAID BENEFITS.
1-17 (a) Except as provided by Section 210.003, a claimant who receives
1-18 an overpayment of benefits, regardless of the reason for the
1-19 overpayment, is not entitled to retain the amount overpaid.
1-20 (b) The claimant shall refund the amount overpaid to the
1-21 compensation fund in the manner prescribed by rules adopted by the
1-22 commission. The commission by rule may allow a repayment made
1-23 under this subsection to be made in periodic payments.
1-24 (c) If the commission determines that a claimant who has
2-1 received an overpayment of benefits is unable to refund to the
2-2 compensation fund the amount of the overpayment, the commission
2-3 shall deduct the amount overpaid to the claimant against that
2-4 claimant's future benefits under this subtitle.
2-5 (d) An overpayment subject to this section is collectible in
2-6 the manner provided by Section 212.006(b) for recovery of benefits
2-7 after a final decision made under Chapter 212.
2-8 (e) Notwithstanding Subsections (a)-(d), the commission
2-9 shall reduce by 50 percent any benefit payments otherwise payable
2-10 during a claimant's current benefit year and shall collect the
2-11 remaining balance of the overpayment under the procedure
2-12 established under Subsection (c) if the commission determines that:
2-13 (1) the claimant received an overpayment solely as a
2-14 result of accidental or negligent error on the part of the
2-15 commission;
2-16 (2) the overpayment was not the result of a decision
2-17 on appeal;
2-18 (3) the commission had not previously given notice to
2-19 the claimant that an overpayment might result from an adverse
2-20 decision on an issue affecting the claimant's entitlement to
2-21 benefits; and
2-22 (4) recovery of the overpayment during the claimant's
2-23 current benefit year at the time the overpayment is discovered
2-24 would cause extraordinary and lasting financial hardship to the
2-25 claimant.
2-26 (f) A claimant is entitled to a hearing in the manner
3-1 provided by Chapter 212 for a disputed claim if the claimant:
3-2 (1) disputes the designation of any benefits received
3-3 by that claimant as overpaid benefits; or
3-4 (2) disagrees with a determination made under
3-5 Subsection (e).
3-6 SECTION 3. The heading to Section 211.004, Labor Code, is
3-7 amended to read as follows:
3-8 Sec. 211.004. OFFSET UNDER CERTAIN RECIPROCAL ARRANGEMENTS
3-9 FOR OVERPAYMENT OF UNEMPLOYMENT BENEFITS.
3-10 SECTION 4. This Act takes effect September 1, 1999, and
3-11 applies only to unemployment compensation benefits paid to an
3-12 individual on or after that date. Benefits paid before that date
3-13 are governed by the law in effect on the date the benefits were
3-14 paid, and the former law is continued in effect for that purpose.
3-15 SECTION 5. The importance of this legislation and the
3-16 crowded condition of the calendars in both houses create an
3-17 emergency and an imperative public necessity that the
3-18 constitutional rule requiring bills to be read on three several
3-19 days in each house be suspended, and this rule is hereby suspended.