BILL ANALYSIS S.B. 867 By: Montford (Coleman) May 19, 1995 Committee Report (Unamended) BACKGROUND The advance interest trust fund was created when the Texas Employment Commission (commission) borrowed money from the federal government to pay unemployment benefits and was required to create a special fund for payment of interest on federal loans. This fund is no longer needed for that purpose because the federal loans were repaid in 1988. Current law allows the governor to use money in the fund without legislative appropriation for very limited purposes related to the administration of the fund. Also, current law provides for transfer of the interest income of the fund for the administration of Chapters 51, 61, and 62 of the Labor Code, which relate to enforcement of child labor laws, payment of wages, and the minimum wage. The commission is not currently allowed to use the principal in the advance interest trust fund. PURPOSE SB 867 allows legislative appropriation of money in the advance interest trust fund to the Texas Employment Commission for enforcement of the state labor laws concerning child labor, payment of wages, and the minimum wage. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 203.102, Labor Code, by adding Subsection (c) to authorize the Texas Employment Commission to use money in the advance interest trust fund, including any interest earnings scheduled to be transferred under Section 203.103, for the administration of Chapters 51, 61, and 62. SECTION 2. Effective date: September 1, 1995. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION SB 867 was considered in a full committee public hearing on May 8, 1995. The following person testified on the bill: Jim Hine, Texas Employment Commission. The bill was left pending at this time. The bill was considered again in a full committee public hearing on May 17, 1995. The following person testified on the bill: Jim Hine and Ed Davis, Texas Employment Commission. The bill was left pending at this time. The bill was considered in a full committee formal meeting on May 19, 1995. The motion to report the bill favorably to the Committee on Calendars carried with a vote of 19 ayes, 3 nays, 0 PNV, and 5 absent.