BILL ANALYSIS

Senate Research Center	H.B. 2788
89R21389 RDS-F	By: Button et al. (Johnson)
	Economic Development
	5/9/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

During the COVID-19 pandemic, the Texas unemployment insurance system was tested. With additional federal dollars added to claim payments, unemployment insurance benefits became a bigger target for fraudsters, highlighting the importance of protecting our UI system and the claims filing process.

Under current law, anyone can request details on the Texas Workforce Commission's (TWC) fraud detection and prevention methods with an open records request. TWC is obligated to provide the information under state public information law, which, the author has informed the committee, may then be used as a blueprint to circumvent TWC's fraud detection and prevention methods.

H.B. 2788 seeks to ensure the integrity of the unemployment benefits program by providing an exception to state public information law requirements for TWC's fraud detection information.

H.B. 2788 amends current law relating to the disclosure of certain fraud detection information obtained in the administration of the unemployment compensation system.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter F, Chapter 301, Labor Code, by adding Section 301.087, as follows:

Sec. 301.087. CERTAIN FRAUD DETECTION INFORMATION NOT PUBLIC INFORMATION. (a) Defines "fraud detection information."

(b) Provides that fraud detection information is not public information for purposes of Chapter 552 (Public Information), Government Code, and is excepted from the requirements of Section 552.021 (Availability of Public Information) of that code.

SECTION 2. Effective date: upon passage or September 1, 2025.