Relating to the prevention, detection, and investigation of fraud, waste, and abuse in programs administered by the Texas Workforce Commission or by the commission's contractors or grantees, the official text

H.B. No. 3700

AN ACT

relating to the prevention, detection, and investigation of fraud,

waste, and abuse in programs administered by the Texas Workforce

Commission or by the commission's contractors or grantees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 301, Labor Code, is amended by adding

Subchapter L to read as follows:

SUBCHAPTER L. PREVENTION, DETECTION, AND INVESTIGATION OF FRAUD,

WASTE, AND ABUSE IN COMMISSION PROGRAMS

Sec. 301.201. PREVENTION, DETECTION, AND INVESTIGATION OF

FRAUD, WASTE, AND ABUSE. (a) The commission shall develop:

(1) procedures to prevent, detect, and investigate

fraud, waste, and abuse in programs administered:

(A) by the commission;

(B) under contract with the commission; or

(C) by a person awarded a grant by the

commission;

(2) systems to detect fraud, waste, and abuse in the

administration, provision, and delivery of programs described by

Subdivision (1); and

(3) methods for a person to report to the commission

fraud, waste, or abuse in the delivery of programs described by

Subdivision (1), including an option for:

(A) reporting through the commission's publicly

available Internet website; and

(B) anonymous reporting by an employee of the

commission.

(b) The commission may obtain any information or technology

necessary to enable the commission to meet its responsibilities

under this subchapter or other law in regard to the prevention,

detection, and investigation of fraud, waste, and abuse in

commission programs.

(c) Not later than September 1 of each year, the commission

shall submit to the legislature a written report that includes for

each report of fraud, waste, or abuse in a program described by

Subsection (a)(1) received by the commission under this section in

the most recent calendar year:

(1) a copy of the report;

(2) any findings made by the commission in

investigating the report; and

(3) if fraud, waste, or abuse was found in

investigating the report, any actions taken by the commission to

resolve the matter.

(d) The commission may not terminate or otherwise retaliate

against an employee who in good faith reports to the commission

under this section fraud, waste, or abuse in the delivery of

programs described by Subsection (a)(1).

SECTION 2. The Texas Workforce Commission shall submit the

initial report required by Section 301.201(c), Labor Code, as added

by this Act, not later than September 1, 2026.

SECTION 3. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 3700 was passed by the House on April

23, 2025, by the following vote: Yeas 147, Nays 0, 2 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 3700 was passed by the Senate on May

19, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor