BILL ANALYSIS



H.B. 1297
By: Rodriguez
March 7, 1995
Committee Report (Unamended)


BACKGROUND

The federal minimum wage is set by the Fair Labor Standards Act, 29
U.S.C. §201 et seq. and is currently set at $4.25 an hour.  While
the vast majority of workers in all industries, including
agriculture, are covered by the federal minimum wage, some workers
are excluded from the federal minimum wage protection.  The Texas
Minimum Wage Act is intended to be a safety net protecting some of
those workers who fall through the cracks in the federal law.  The
state minimum wage law applies only to workers who are not covered
by the federal minimum wage law. 

In 1987, the Texas Minimum Wage Act was amended to bring the state
minimum wage back up to parity with the federal minimum wage, which
at that time was $3.35 an hour.  The Texas minimum wage had not
been increased since 1970 when it was at $1.70 and the federal
minimum wage had been raised on a regular basis.  Now in 1995 the
State minimum wage has again begun to lag behind the federal
minimum wage.  In 1989, the U.S. Congress amended the federal
minimum wage law increasing the federal minimum wage in two steps: 
to $3.80 an hour effective April 1, 1990 and then to $4.25 an hour
effective April 1, 1991.  No further increases in the federal
minimum wage are currently scheduled.

In addition, the Texas Minimum Wage Act does not comply with the
American Disabilities Act because it allows that certain employees,
such as if a person's earning or productive capacity is impaired by
age, physical or mental deficiency or injury; a person over 65
years of age can be employed at a wage less than the applicable
minimum.

PURPOSE

House Bill 1297 merely updates the wage rate itself to reflect
current standards.  It will restore the parity between the state
minimum wage and the federal minimum wage which is $4.25.  It
prevents the state minimum wage from lagging behind the federal
minimum and it helps the state minimum wage keep pace with the
increased cost of living.  This bill also beings Texas in
compliance with the American Disabilities Act.

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. Amends Section 62.051 of the Labor Code by raising the
minimum wage from $3.35 an hour to $4.25 an hour or the current
federal minimum wage under Section 6, Fair Labor Standards Act of
1938.

SECTION 2. Repeals Section 62.055 and 62.056, Labor Code which
excluded certain employees that are protected under the American
Disabilities Act. 

SECTION 3. This Act takes effect September 1, 1995.

SECTION 4. Emergency clause.

SUMMARY OF COMMITTEE ACTION

H.B. 1297 was considered by the committee in a public hearing on
March 6, 1995.  Testifying on the bill was Ed Davis, representing
the Texas Employment Commission.  Testifying in favor of the bill
was Laura Brown, representing the Coalition of Texans with
Disabilities; Rebecca Flores Harrington, representing the United
Farm Workers; Jesse Romero, representing the Mexican American Legal
Defense and Education Fund; Cheri-Louise Horton, representing
herself; and Rebecca Murillo, representing herself.  Testifying
against the bill was Ed Small, representing the Texas and
Southwestern Cattle Raisers Association; Kathryn Keller,
representing the Texas Farm Bureau; Robert Howden, representing the
National Federation of Independent Business, Texas; David Wittie,
representing ADAPT of Texas; Rona Schnall, representing ADAPT of
Texas; and David Pinkus, representing the Small Business United of
Texas.  H.B. 1297 was reported favorably without amendment, with
the recommendation that it do pass and be printed, by a record vote
of 5 ayes, 3 nays, 0 pnv, 1 absent.