SRC-MWN S.B. 444 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 444
77R1893 JMM-DBy: Fraser
Business & Commerce
2/2/2001
As Filed


DIGEST AND PURPOSE 

Currently, Texas lacks specific strategies to increase the identification
and recovery of unemployment insurance benefit overpayments, while the
percentage of fraudulent overpayments identified remains below the national
average. As proposed, S.B. 444 would direct the Texas Workforce Commission
to conduct a study to determine, to the fullest extent possible, the amount
of fraudulent claims in the unemployment insurance system. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 213A, Labor Code, by adding Section 213.010, as
follows: 

Sec. 213.010. STUDY OF BENEFIT OVERPAYMENTS AND FRAUD. Requires the Texas
Workforce Commission (commission) to conduct a study to determine, to the
fullest extent possible, the number of fraudulent claims filed and paid
under this subtitle. Requires the commission to use the study to establish
the most effective fraud detection system. Requires the fraud detection
system to incorporate the commission's automated system for filing and
paying claims. Requires the commission in developing the study, to use as a
model analogous studies performed by other governmental entities that
administer benefit programs, including the medical assistance program under
Chapter 32 (Medical Assistance Program), Human Resources Code. Requires the
commission's study to include thorough research on fraudulent schemes and
methods of fraud detection used in other states and an analysis of business
and industries most affected by fraud under this subtitle. Requires the
commission to report the results of the study to the presiding officer of
each house of the legislature not later than January 1, 2003. 

SECTION 2. Effective date: upon passage or September 1, 2001.