By Brimer H.B. No. 1397
77R1893 JMM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a study by the Texas Workforce Commission of fraud in
1-3 the unemployment insurance system.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 213, Labor Code, is amended
1-6 by adding Section 213.010 to read as follows:
1-7 Sec. 213.010. STUDY OF BENEFIT OVERPAYMENTS AND FRAUD. (a)
1-8 The commission shall conduct a study to determine, to the fullest
1-9 extent possible, the number of fraudulent claims filed and paid
1-10 under this subtitle. The commission shall use the study to
1-11 establish the most effective fraud detection system.
1-12 (b) The fraud detection system established as a result of
1-13 the study conducted under this section shall incorporate the
1-14 commission's automated system for filing and paying claims.
1-15 (c) In developing the study required under this section, the
1-16 commission shall use as a model analogous studies performed by
1-17 other governmental entities that administer benefit programs,
1-18 including the medical assistance program under Chapter 32, Human
1-19 Resources Code. The commission's study must include thorough
1-20 research on fraudulent schemes and methods of fraud detection used
1-21 in other states and an analysis of businesses and industries most
1-22 affected by fraud under this subtitle.
1-23 (d) The commission shall report the results of the study to
1-24 the presiding officer of each house of the legislature not later
2-1 than January 1, 2003.
2-2 SECTION 2. This Act takes effect immediately if it receives
2-3 a vote of two-thirds of all the members elected to each house, as
2-4 provided by Section 39, Article III, Texas Constitution. If this
2-5 Act does not receive the vote necessary for immediate effect, this
2-6 Act takes effect September 1, 2001.
2-7 COMMITTEE AMENDMENT NO. 1
2-8 Amend H.B. No. 1397 as follows:
2-9 (1) On Page 1, line 8, strike "commission" and insert
2-10 "Office of the State Auditor."
2-11 (2) On Page 1, line 10, after "subtitle" insert "as well as
2-12 the number and amount of fraudulent premium underpayments by
2-13 employers."
2-14 (3) On Page 1, between lines 11 and 12, insert the following
2-15 new subsection:
2-16 "(b) If the Office of the State Auditor determines that such
2-17 study should be conducted in whole or in part by another entity,
2-18 the Office of the State Auditor may contract with one or more
2-19 independent, non-governmental entities to conduct part or all of
2-20 the study. Notwithstanding its degree of participation in the
2-21 study, the Office of the State Auditor shall be responsible for
2-22 overseeing the study and for submitting the results as provided in
2-23 subsection (e)."
2-24 (4) On Page 1, line 12, renumber subsection (b) to read
2-25 subsection (c).
2-26 (5) On Page 1, line 15, renumber subsection (c) to read
2-27 subsection (d).
3-1 (6) On Page 1, line 16, strike "commission" and insert
3-2 "Office of the State Auditor".
3-3 (7) On Page 1, line 19, after "Code.", insert "In developing
3-4 the study required under this section, the Office of the State
3-5 Auditor shall consider studies performed by the U.S. Department of
3-6 Labor and other State Employment Security Agencies concerning the
3-7 misclassification of workers resulting in underpayments to the UI
3-8 Trust Fund, and shall specifically evaluate the use of targeted
3-9 audits to reduce misclassification."
3-10 (8) On Page 1, line 19, strike "commission's" and insert
3-11 "Office of the State Auditor's."
3-12 (9) On Page 1, line 23, renumber subsection (d) to read
3-13 subsection (e).
3-14 (10) On Page 1, line 23, strike "commission" and insert
3-15 "Office of the State Auditor".
3-16 Seaman