By Chavez                                             H.B. No. 2597
         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.