BILL ANALYSIS
H.B. 1031
By: Oliveira (Sibley)
Economic Development
05-22-95
Senate Committee Report (Unamended)
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.
PURPOSE
As proposed, H.B. 1031 provides for the collection of certain
unpaid wages.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 61E, Labor Code, by adding Section
61.085, as follows:
Sec. 61.085. ASSIGNMENT OF LIEN. Authorizes a lien securing
wages due under this chapter to be assigned to the claimant,
at the claimant's request.
SECTION 2. Amends Chapter 61, Labor Code, by adding Subchapter F,
as follows:
SUBCHAPTER F. DELINQUENCY; LEVY
Sec. 61.091. NOTICE OF DELINQUENCY. (a) Authorizes the
commission, if under a final order, a person is determined to
be delinquent in the payment of wages, penalties, interest, or
other amounts (amounts) due under this chapter, to notify
personally or by mail any person who:
(1) possesses or controls any of the delinquent person's
assets, including a credit, bank, or savings account or
deposit, or other intangible or personal property; or
(2) owes a debt to the delinquent person.
(b) Requires a notice under this subchapter to a state
officer, department, or agency to be provided before the
officer, department, or agency presents to the comptroller
the claim of the delinquent person.
(c) Authorizes a notice under this subchapter to be given at
any time after the amounts due under this chapter become
delinquent. Requires the notice to state the amount due and
owing and any additional amount that will accrue by
operation of law in a period not to exceed 30 days and, in
the case of a credit, bank, or savings account or deposit,
is effective only up to that amount.
Sec. 61.092. DUTIES OF NOTICE RECIPIENT. (a) Provides that on
receipt of a notice under this subchapter, the person
receiving the notice:
(1) shall advise the commission no later than 20 days
after the notice is received of each asset belonging to
the delinquent person that is possessed or controlled by
the person receiving the notice and of each debt owed by
the person receiving the notice to the delinquent person;
and
(2) unless the commission consents to an earlier
disposition, may not transfer or dispose of the asset or
debt possessed, controlled, or owed by the person on the
date the person received the notice within the 60-day
period after the date of receipt of the notice.
(b) Provides that a notice under this subchapter that
attempts to prohibit the transfer or disposition of an asset
possessed or controlled by a bank is effective if it is
delivered or mailed to the principal office or any branch
office of the bank, including any office of the bank at
which the deposit is carried or the credit or property is
held.
(c) Provides that a person who receives a notice under this
subchapter and who violates Subsection (a)(2) is liable to
the commission for the amount of the indebtedness of the
delinquent person with respect to whose obligation the
notice was given, to the extent of the value of the affected
asset or debt.
Sec. 61.093. LEVY. (a) Authorizes the commission, at any time
during the 60-day period provided by Section 61.092(a)(2), to
levy on the asset or debt by delivery of a notice of levy.
(b) Requires the person possessing the asset or debt, on
receipt of the levy notice, to transfer the asset to the
commission or pay to the commission the amount owed to the
delinquent person.
Sec. 61.094. NOTICE EFFECT. Provides that a notice delivered
under this subchapter is effective:
(1) at the time of delivery against all property, rights to
property, credits, or debt involving the delinquent person
that are not on the date of the notice subject to a
preexisting lien, attachment, garnishment, or execution
issued through a judicial process; and
(2) against all property, rights to property, credits, or
debts involving the delinquent person that come into the
possession or control of the person served with a notice of
levy during the 60-day period provided by Section
61.092(a)(2).
Sec. 61.095. DISCHARGE OF LIABILITY. Provides that a person
acting in accordance with the terms of the notice issued by
the commission under this subchapter is discharged from any
obligation or liability to the delinquent person with respect
to the affected property, rights to property, credits, and
debts of the person affected by compliance with the notice of
freeze or levy.
SECTION 3. Effective date: September 1, 1995.
Makes application of this Act prospective.
SECTION 4. Emergency clause.