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.