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.