BILL ANALYSIS C.S.H.B. 3700 By: Vo Delivery of Government Efficiency Committee Report (Substituted) BACKGROUND AND PURPOSE The bill author has informed the committee of concerns from the Texas Workforce Commission (TWC) over a lack of statutory requirements for fraud, waste, and abuse prevention and detection in TWC programs, including programs concerning workforce development and vocational rehabilitation services, which is an issue that was identified through agency reports and program evaluations. While fraud, waste, and abuse detection and prevention measures currently exist in statute for the TWC subsidized child-care program, there is currently no statutory guidance concerning these issues in other TWC programs. C.S.H.B. 3700 seeks to remedy this situation by requiring TWC to develop procedures and systems to detect, prevent, and investigate fraud, waste, and abuse activities across programs administered by TWC and its grantees and contractors. The bill further requires TWC to develop a method for the public, grantees, and contractors to report instances of fraud, waste, and abuse, including through an online reporting system. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 3700 amends the Labor Code to require the Texas Workforce Commission (TWC) to develop the following: procedures to prevent, detect, and investigate fraud, waste, and abuse in programs administered by TWC, under contract with TWC, or by a person awarded a grant by TWC; systems to detect fraud, waste, and abuse in the administration, provision, and delivery of those programs; and methods for a person to report to TWC fraud, waste, or abuse in the delivery of those programs, including an option for reporting through TWC's publicly available website. The bill authorizes TWC to obtain any information or technology necessary to enable TWC to meet its responsibilities under the bill's provisions or under other law in regard to the prevention, detection, and investigation of fraud, waste, and abuse in TWC programs. EFFECTIVE DATE September 1, 2025. COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 3700 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. The introduced and the substitute both require TWC to develop procedures, systems, and reporting methods for the prevention, detection, and investigation of fraud, waste, and abuse in certain programs, but the two versions differ in the following ways: whereas the introduced specified the applicable programs as all programs administered by TWC, or its subrecipients, and any contractors of either, the substitute specifies the programs as those administered by TWC, under contract with TWC, or by a person awarded a grant by TWC; whereas the introduced specified the goal of the systems as detecting fraud, waste, and abuse in the administration, provision, and delivery of all programs and services, the substitute specifies the goal as such with respect to programs administered by TWC, its contractors, or grantees; and whereas the introduced required TWC to develop a method to report fraud, waste, and abuse on TWC's website and another method for TWC's subrecipients, contractors, and those contractors' subrecipients to report fraud, waste, and abuse related to the programs they administer on TWC's behalf, the substitute requires TWC to develop methods for a person to report to TWC fraud, waste, or abuse in the delivery of the applicable programs, including an option for reporting through TWC's publicly available website. Additionally, with respect to the authorization for TWC to obtain any information or technology necessary to enable TWC to meet its responsibilities, the substitute specifies that those responsibilities are in regard to the prevention, detection, and investigation of fraud, waste, and abuse in TWC programs, while the introduced did not include that specification.
BILL ANALYSIS
# BILL ANALYSIS
C.S.H.B. 3700
By: Vo
Delivery of Government Efficiency
Committee Report (Substituted)
C.S.H.B. 3700
By: Vo
Delivery of Government Efficiency
Committee Report (Substituted)
BACKGROUND AND PURPOSE The bill author has informed the committee of concerns from the Texas Workforce Commission (TWC) over a lack of statutory requirements for fraud, waste, and abuse prevention and detection in TWC programs, including programs concerning workforce development and vocational rehabilitation services, which is an issue that was identified through agency reports and program evaluations. While fraud, waste, and abuse detection and prevention measures currently exist in statute for the TWC subsidized child-care program, there is currently no statutory guidance concerning these issues in other TWC programs. C.S.H.B. 3700 seeks to remedy this situation by requiring TWC to develop procedures and systems to detect, prevent, and investigate fraud, waste, and abuse activities across programs administered by TWC and its grantees and contractors. The bill further requires TWC to develop a method for the public, grantees, and contractors to report instances of fraud, waste, and abuse, including through an online reporting system.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS C.S.H.B. 3700 amends the Labor Code to require the Texas Workforce Commission (TWC) to develop the following: procedures to prevent, detect, and investigate fraud, waste, and abuse in programs administered by TWC, under contract with TWC, or by a person awarded a grant by TWC; systems to detect fraud, waste, and abuse in the administration, provision, and delivery of those programs; and methods for a person to report to TWC fraud, waste, or abuse in the delivery of those programs, including an option for reporting through TWC's publicly available website. The bill authorizes TWC to obtain any information or technology necessary to enable TWC to meet its responsibilities under the bill's provisions or under other law in regard to the prevention, detection, and investigation of fraud, waste, and abuse in TWC programs.
EFFECTIVE DATE September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 3700 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. The introduced and the substitute both require TWC to develop procedures, systems, and reporting methods for the prevention, detection, and investigation of fraud, waste, and abuse in certain programs, but the two versions differ in the following ways: whereas the introduced specified the applicable programs as all programs administered by TWC, or its subrecipients, and any contractors of either, the substitute specifies the programs as those administered by TWC, under contract with TWC, or by a person awarded a grant by TWC; whereas the introduced specified the goal of the systems as detecting fraud, waste, and abuse in the administration, provision, and delivery of all programs and services, the substitute specifies the goal as such with respect to programs administered by TWC, its contractors, or grantees; and whereas the introduced required TWC to develop a method to report fraud, waste, and abuse on TWC's website and another method for TWC's subrecipients, contractors, and those contractors' subrecipients to report fraud, waste, and abuse related to the programs they administer on TWC's behalf, the substitute requires TWC to develop methods for a person to report to TWC fraud, waste, or abuse in the delivery of the applicable programs, including an option for reporting through TWC's publicly available website. Additionally, with respect to the authorization for TWC to obtain any information or technology necessary to enable TWC to meet its responsibilities, the substitute specifies that those responsibilities are in regard to the prevention, detection, and investigation of fraud, waste, and abuse in TWC programs, while the introduced did not include that specification.
BACKGROUND AND PURPOSE
The bill author has informed the committee of concerns from the Texas Workforce Commission (TWC) over a lack of statutory requirements for fraud, waste, and abuse prevention and detection in TWC programs, including programs concerning workforce development and vocational rehabilitation services, which is an issue that was identified through agency reports and program evaluations. While fraud, waste, and abuse detection and prevention measures currently exist in statute for the TWC subsidized child-care program, there is currently no statutory guidance concerning these issues in other TWC programs.
C.S.H.B. 3700 seeks to remedy this situation by requiring TWC to develop procedures and systems to detect, prevent, and investigate fraud, waste, and abuse activities across programs administered by TWC and its grantees and contractors. The bill further requires TWC to develop a method for the public, grantees, and contractors to report instances of fraud, waste, and abuse, including through an online reporting system.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
C.S.H.B. 3700 amends the Labor Code to require the Texas Workforce Commission (TWC) to develop the following:
procedures to prevent, detect, and investigate fraud, waste, and abuse in programs administered by TWC, under contract with TWC, or by a person awarded a grant by TWC;
systems to detect fraud, waste, and abuse in the administration, provision, and delivery of those programs; and
methods for a person to report to TWC fraud, waste, or abuse in the delivery of those programs, including an option for reporting through TWC's publicly available website.
The bill authorizes TWC to obtain any information or technology necessary to enable TWC to meet its responsibilities under the bill's provisions or under other law in regard to the prevention, detection, and investigation of fraud, waste, and abuse in TWC programs.
EFFECTIVE DATE
September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 3700 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
The introduced and the substitute both require TWC to develop procedures, systems, and reporting methods for the prevention, detection, and investigation of fraud, waste, and abuse in certain programs, but the two versions differ in the following ways:
whereas the introduced specified the applicable programs as all programs administered by TWC, or its subrecipients, and any contractors of either, the substitute specifies the programs as those administered by TWC, under contract with TWC, or by a person awarded a grant by TWC;
whereas the introduced specified the goal of the systems as detecting fraud, waste, and abuse in the administration, provision, and delivery of all programs and services, the substitute specifies the goal as such with respect to programs administered by TWC, its contractors, or grantees; and
whereas the introduced required TWC to develop a method to report fraud, waste, and abuse on TWC's website and another method for TWC's subrecipients, contractors, and those contractors' subrecipients to report fraud, waste, and abuse related to the programs they administer on TWC's behalf, the substitute requires TWC to develop methods for a person to report to TWC fraud, waste, or abuse in the delivery of the applicable programs, including an option for reporting through TWC's publicly available website.
Additionally, with respect to the authorization for TWC to obtain any information or technology necessary to enable TWC to meet its responsibilities, the substitute specifies that those responsibilities are in regard to the prevention, detection, and investigation of fraud, waste, and abuse in TWC programs, while the introduced did not include that specification.