TO: | Honorable Bob Deuell, Chair, Senate Committee On Economic Development |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | SB658 by Deuell (Relating to the imposition and collection of a penalty for fraudulently obtaining unemployment compensation benefits.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | $0 |
2015 | $0 |
2016 | $0 |
2017 | $0 |
2018 | $0 |
Fiscal Year | Probable Revenue Gain from UNEMPLOYMENT TRST FND ACCT 938 |
---|---|
2014 | $262,000 |
2015 | $511,000 |
2016 | $507,000 |
2017 | $511,000 |
2018 | $523,000 |
The Texas Workforce Commission (TWC) reports that in fiscal year 2012, $3.6 million in fraudulently obtained unemployment compensation benefits were recovered. The revenue gains in the table above were estimated by the Comptroller of Public Accounts (CPA) and assume that recoveries will grow or decline at the rate of change of the number of unemployed in Texas. For the purposes of this analysis, adjustments were also made for growth in the average wage rate. Since changes in law made by this bill would only apply to determinations made on or after October 21, 2013, the CPA's analysis assumes 50 percent of fiscal year 2014 recoveries would be subject to the penalty. Estimates for subsequent years assume total recoveries would increase by the full 15 percent of the penalty.
TWC reports there would be federal consequences for failure to implement the penalty as stated in the provisions of this bill. A state's failure to implement the penalty would be grounds for initiating conformity proceedings to deny certifying Texas for grants for the administration of the state Unemployment Compensation law until such time as the law conformed to the requirements of Section 303(a)(11), Social Security Act.
Based on the analysis of the TWC, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Source Agencies: | 304 Comptroller of Public Accounts, 320 Texas Workforce Commission
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LBB Staff: | UP, RB, MW, NV
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