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A BILL TO BE ENTITLED
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AN ACT
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relating to the recovery by the Texas Workforce Commission of |
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unpaid unemployment compensation contributions and improper |
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unemployment compensation benefits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 203.201(b), Labor Code, is amended to |
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read as follows: |
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(b) The special administration fund consists of: |
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(1) all interest and penalties collected under this |
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subtitle; |
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(2) any amounts received under any surety bond for |
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losses sustained by the special administration fund; and |
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(3) the amount of any fee collected under Section |
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213.031(b) or 214.002(c) [money transferred under Section
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203.103]. |
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SECTION 2. Section 203.202(a), Labor Code, is amended to |
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read as follows: |
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(a) Money in the special administration fund may be spent in |
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accordance with this subtitle and may be used: |
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(1) to pay the cost of reimbursing the benefit account |
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in the compensation fund for benefits paid to former employees of |
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this state that are based on service for this state, and the cost of |
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construction and purchase of buildings and land necessary for that |
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administration; |
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(2) in the administration of Chapters 51, 61, and 62; |
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(3) for payment of interest on advances from the |
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federal trust fund; |
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(4) as a revolving fund to cover expenditures that are |
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necessary and proper under this subtitle and for which federal |
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funds have been requested but not received, subject to the charging |
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of the expenditures against the federal funds when received; |
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(5) to refund a penalty as provided by Section |
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203.203; and |
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(6) subject to the provisions of Chapter 2107, |
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Government Code, to pay persons who contract with the commission to |
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collect an amount of improper benefits, as defined by Section |
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214.002, delinquent unemployment taxes, penalties, and interest |
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owed under this subtitle. |
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SECTION 3. Section 213.031, Labor Code, is amended to read |
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as follows: |
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Sec. 213.031. COLLECTION REQUIRED; METHODS. (a) If after |
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notice an employer does not pay a contribution or a penalty or |
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interest on a contribution, the commission shall collect the amount |
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due by: |
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(1) bringing a civil action in the name of the state |
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and the attorney general in a district court in Travis County; [or] |
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(2) serving a notice of assessment on the defaulting |
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employer, stating the amount of the contribution, penalty, and |
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interest outstanding; or |
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(3) employing a private collection agency to seek |
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repayment of the amount owed, but only if the commission determines |
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the amount owed is otherwise uncollectible. |
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(b) If the commission employs a collection agency under |
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Subsection (a)(3), the commission may assess a reasonable fee |
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against the defaulting employer. The fee may be collected in any |
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manner provided by Subsections (a)(1) and (2) and any other |
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provision of this subchapter or Subchapter D for the collection of |
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past due contributions, except that the amount collected must: |
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(1) remain separate from the repaid contribution, |
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penalty, or interest, as applicable; and |
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(2) be deposited to the unemployment compensation |
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special administration fund under Section 203.201. |
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SECTION 4. Section 214.002, Labor Code, is amended to read |
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as follows: |
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Sec. 214.002. LIABILITY FOR [IMPROPERLY] OBTAINING |
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IMPROPER BENEFITS. (a) A person who has received improper benefits |
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is liable for the amount of the improper benefits. The commission |
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may recover improper benefits by: |
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(1) deducting the amount of the improper benefits from |
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any future benefits payable to the person; [or] |
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(2) collecting the amount of the improper benefits for |
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the compensation fund in the same manner provided by Sections |
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213.031, 213.032, 213.033, 213.035, and 213.051 for the collection |
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of past due contributions; or |
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(3) employing a private collection agency to seek |
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repayment of the amount of the improper benefits, but only if the |
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commission determines the improper benefits are otherwise |
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uncollectible. |
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(b) In this section, "improper benefit" means any [the] |
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benefit or payment obtained under this subtitle by a person who was |
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or is subsequently disqualified or otherwise determined to be |
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ineligible to receive the benefit or payment for any reason under a |
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final determination or decision made under this subtitle[:
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[(1) because of the nondisclosure or
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misrepresentation by the person or by another of a material fact,
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without regard to whether the nondisclosure or misrepresentation
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was known or fraudulent; and
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[(2)while:
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[(A) any condition imposed by this subtitle for
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the person's qualifying for the benefit was not fulfilled in the
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person's case; or
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[(B) the person was disqualified from receiving
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benefits]. |
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(c) If the commission employs a collection agency under |
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Subsection (a)(3), the commission may assess a fee against the |
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person determined to have received an improper benefit. The fee may |
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be collected in the manner used to collect improper benefits, |
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except that the amount collected must: |
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(1) remain separate from the repaid benefits; and |
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(2) be deposited to the unemployment compensation |
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special administration fund under Section 203.201. |
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SECTION 5. The changes in law made by this Act apply only to |
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a claim for unemployment compensation benefits that is filed with |
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the Texas Workforce Commission on or after the effective date of |
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this Act. A claim filed before that date is governed by the law in |
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effect on the date the claim was filed, and the former law is |
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continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2007. |