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.