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Bill

HB 2788

Relating to the disclosure of certain fraud detection information obtained in the administration of the unemployment compensation system.

89th Legislature (2025) Introduced by Keith Bell and 4 co-sponsors

Texas law now requires disclosure of unemployment fraud detection information to specified parties to improve fraud prevention coordination and system integrity.

Effective immediately
#fraud(s0166) #labor--unemployment(i0475) #workforcecommission #texas(v0470)
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Bill Summary · HB 2788

Legislative bill overview

HB 2788 mandates the disclosure of fraud detection information used by Texas's unemployment compensation system to specified parties. The bill was signed into law on June 20, 2025, and took effect immediately, requiring the state to share certain fraud-related data that was previously restricted or withheld during the administration of unemployment benefits.

Why is this important

Unemployment fraud costs states billions annually and disproportionately affects workers and employers through higher taxes and reduced benefits. Increased transparency about fraud detection methods and patterns can help employers, law enforcement, and other agencies coordinate anti-fraud efforts more effectively, potentially reducing improper benefit payments and strengthening system integrity.

Potential points of contention

  • Privacy concerns: Disclosure of fraud detection information could expose personal data of both fraudsters and legitimate claimants, raising privacy and data security questions about how disclosed information will be protected and used.
  • Competitive disadvantage: Revealing fraud detection methods and thresholds might allow sophisticated fraudsters to circumvent safeguards, potentially undermining the very fraud prevention mechanisms the disclosure is meant to support.
  • Scope ambiguity: The bill's reference to "specified parties" and "certain fraud detection information" lacks clarity about which entities qualify for disclosure and what specific data categories are covered, creating implementation uncertainty.

Compiled from official sources — confirm details with the bill’s official record.

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