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.