BILL ANALYSIS



H.B. 1031
By: Oliveira
02-21-95
Committee Report (Amended)


BACKGROUND

In 1989, the Texas Employment Commission (TEC) received statutory
authority to file liens on assets owned by employers who have been
judged to owe their employees compensation.  TEC attempts to
enforce the lien and any money collected is given to the employee
who brought action against a delinquent employer.  The employee
already receives the monetary benefit of the lien; the assignment
of the lien would give the employee the right to have the lien
enforced and would spare the state the costs of enforcement when
the amount owed is small.

The levy provisions were enacted in 1993 for the collection of
wages.  They were modeled after the levy provisions in the Tax
Code.  Most of these proposed changes incorporate the 1993
provisions into the Labor Code (also enacted in 1993) and make one
substantive change in Section 61.093.  Section 61.093 allows a levy
anytime during the 60-day freeze of accounts or assets.

PURPOSE

To codify the existing levy provisions for unpaid wages into the
Labor Code; allow for the assignment of a lien once it is obtained
by TEC; and amend the 1993 provision to allow levy anytime during
the 60-day freeze on accounts or assets.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, department,
institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Adds a new Section 61.085 to the Labor Code which
allows the TEC to assign a lien to the person to whom the wages are
owed.

SECTION 2.  Incorporates the 1993 provisions for levy against
assets into the Labor Code.  Section 61.093 changes the current law
from levy during the last 45 days of the freeze on accounts or
assets to allow levy anytime during the entire 60-day freeze
period.

SECTION 3.  Effective date September 1, 1995.

SECTION 4.  Emergency clause.

EXPLANATION OF AMENDMENTS

Concerns were raised that the agencies involved may "dump" cases on
workers and refuse collection efforts when those efforts are
considered too costly or unlikely to result in collection. The
amendment replaces SECTION 1 of the bill so that liens can be
assigned to a person to whom wages are owed, only at the request of
that person.

SUMMARY OF COMMITTEE ACTION

H.B. 1031 was considered in public hearing on February 20, 1995. 
The committee considered an amendment to the bill.  The amendment
was adopted by a record vote of 8 Ayes, 0 Nays, 0 PNV, 1 Absent. 
Testifying on the bill was Ed Davis, representing the Texas
Employment Commission.  Testifying in favor of the bill was Walter
Hinojosa, representing the Texas AFL-CIO, and Ted Roberts,
representing the Texas Association of Business and Chambers of
Commerce.  No one testified against the bill.  H.B. 1031 was
reported favorably as amended, with the recommendation that it do
pass and be printed and be sent to the Committee on Local and
Consent Calendars, by a record vote of 8 Ayes, 0 Nays, 0 PNV, and
1 Absent.