BILL ANALYSIS S.B. 867 By: Montford Finance 04-11-95 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 federal loans were repaid in 1988. Current law allows the commission to use investment income form the advance interest trust fund for the administration of certain chapters of the Labor Code, which relate to enforcement of child labor laws, payment of wages, and the minimum wage. The commission is unable, however, to use the principal in the advance interest trust fund to pay costs of enforcing these state labor laws. PURPOSE As proposed, S.B. 867 authorizes the Texas Employment Commission to use money in the advance interest trust fund. 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 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.