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  S.B. No. 658
  relating to the imposition and collection of a penalty for
  fraudulently obtaining unemployment compensation benefits.
         SECTION 1.  Subsection (b), Section 203.201, Labor Code, is
  amended to read as follows:
         (b)  The special administration fund consists of:
               (1)  all interest and penalties collected under this
  subtitle, other than a penalty assessed under Section
  214.003(a)(2); and
               (2)  any amounts received under any surety bond for
  losses sustained by the special administration fund[; and
               [(3)  money transferred under Section 203.103].
         SECTION 2.  The heading to Section 214.003, Labor Code, is
  amended to read as follows:
         SECTION 3.  Section 214.003, Labor Code, is amended by
  amending Subsections (a) and (c) and adding Subsection (d) to read
  as follows:
         (a)  If, by wilful nondisclosure or misrepresentation of a
  material fact, whether the nondisclosure or misrepresentation is
  made by the person or for the person by another, a person receives a
  benefit when a condition imposed by this subtitle for the person's
  qualifying for the benefit is not fulfilled or the person is
  disqualified from receiving the benefit:
               (1)  [,] the person forfeits the:
                     (A) [(1)]  benefit received; and
                     (B) [(2)]  rights to benefits that remain in the
  benefit year in which the nondisclosure or misrepresentation
  occurred; and
               (2)  the commission shall require the person to pay a
  penalty in an amount equal to 15 percent of the amount forfeited
  under Subdivision (1)(A).
         (c)  A forfeiture, [or] cancellation, or penalty imposed
  under this section is effective only after the person has been
  afforded an opportunity for a fair hearing before the commission or
  its duly designated representative.
         (d)  A person who is assessed a penalty by the commission
  under Subsection (a)(2) is liable for the amount of the penalty.
  The commission may collect the penalty in the same manner as
  provided by Sections 213.031, 213.032, 213.033, 213.035, and
  213.051 for the collection of past-due contributions.  The
  commission shall deposit a penalty assessed under Subsection (a)(2)
  in the unemployment compensation fund established under Section
         SECTION 4.  Section 214.003, Labor Code, as amended by this
  Act, applies only to a final determination made by the Texas
  Workforce Commission or the commission's duly designated
  representative on or after October 1, 2013, that a person received a
  benefit due to a nondisclosure or misrepresentation. A final
  determination made before that date is governed by the law in effect
  on the date the determination was made, and the former law is
  continued in effect for that purpose.
         SECTION 5.  This Act takes effect October 1, 2013.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 658 passed the Senate on
  April 18, 2013, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
         I hereby certify that S.B. No. 658 passed the House on
  May 20, 2013, by the following vote:  Yeas 147, Nays 0, two
  present not voting.
  Chief Clerk of the House