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.