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.