By Oliveira H.B. No. 1031 74R1798 PB-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the collection of certain unpaid wages. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter E, Chapter 61, Labor Code, is amended 1-5 by adding Section 61.085 to read as follows: 1-6 Sec. 61.085. ASSIGNMENT OF LIEN. The commission may assign 1-7 the portion of the lien that represents unpaid wages to the person 1-8 to whom the wages are owed. 1-9 SECTION 2. Chapter 61, Labor Code, is amended by adding 1-10 Subchapter F to read as follows: 1-11 SUBCHAPTER F. DELINQUENCY; LEVY 1-12 Sec. 61.091. NOTICE OF DELINQUENCY. (a) If, under a final 1-13 order, a person is determined to be delinquent in the payment of 1-14 wages, penalties, interest, or other amounts due under this 1-15 chapter, the commission may notify personally or by mail any person 1-16 who: 1-17 (1) possesses or controls any of the delinquent 1-18 person's assets, including a credit, bank, or savings account or 1-19 deposit, or other intangible or personal property; or 1-20 (2) owes a debt to the delinquent person. 1-21 (b) A notice under this subchapter to a state officer, 1-22 department, or agency must be provided before the officer, 1-23 department, or agency presents to the comptroller the claim of the 1-24 delinquent person. 2-1 (c) A notice under this subchapter may be given at any time 2-2 after the wages, penalties, interest, or other amounts due under 2-3 this chapter become delinquent. The notice must state the amount 2-4 of wages, penalties, interest, or other amounts due and owing and 2-5 any additional amount that will accrue by operation of law in a 2-6 period not to exceed 30 days and, in the case of a credit, bank, or 2-7 savings account or deposit, is effective only up to that amount. 2-8 Sec. 61.092. DUTIES OF NOTICE RECIPIENT. (a) On receipt of 2-9 a notice under this subchapter, the person receiving the notice: 2-10 (1) shall advise the commission not later than the 2-11 20th day after the date on which the notice is received of each 2-12 asset belonging to the delinquent person that is possessed or 2-13 controlled by the person receiving the notice and of each debt owed 2-14 by the person receiving the notice to the delinquent person; and 2-15 (2) unless the commission consents to an earlier 2-16 disposition, may not transfer or dispose of the asset or debt 2-17 possessed, controlled, or owed by the person on the date the person 2-18 received the notice within the 60-day period after the date of 2-19 receipt of the notice. 2-20 (b) A notice under this subchapter that attempts to prohibit 2-21 the transfer or disposition of an asset possessed or controlled by 2-22 a bank is effective if it is delivered or mailed to the principal 2-23 office or any branch office of the bank, including any office of 2-24 the bank at which the deposit is carried or the credit or property 2-25 is held. 2-26 (c) A person who receives a notice under this subchapter and 2-27 who violates Subsection (a)(2) is liable to the commission for the 3-1 amount of the indebtedness of the delinquent person with respect to 3-2 whose obligation the notice was given, to the extent of the value 3-3 of the affected asset or debt. 3-4 Sec. 61.093. LEVY. (a) At any time during the 60-day 3-5 period provided by Section 61.092(a)(2), the commission may levy on 3-6 the asset or debt by delivery of a notice of levy. 3-7 (b) On receipt of the levy notice, the person possessing the 3-8 asset or debt shall transfer the asset to the commission or pay to 3-9 the commission the amount owed to the delinquent person. 3-10 Sec. 61.094. NOTICE EFFECT. A notice delivered under this 3-11 subchapter is effective: 3-12 (1) at the time of delivery against all property, 3-13 rights to property, credits, or debts involving the delinquent 3-14 person that are not on the date of the notice subject to a 3-15 preexisting lien, attachment, garnishment, or execution issued 3-16 through a judicial process; and 3-17 (2) against all property, rights to property, credits, 3-18 or debts involving the delinquent person that come into the 3-19 possession or control of the person served with a notice of levy 3-20 during the 60-day period provided by Section 61.092(a)(2). 3-21 Sec. 61.095. DISCHARGE OF LIABILITY. A person acting in 3-22 accordance with the terms of the notice issued by the commission 3-23 under this subchapter is discharged from any obligation or 3-24 liability to the delinquent person with respect to the affected 3-25 property, rights to property, credits, and debts of the person 3-26 affected by compliance with the notice of freeze or levy. 3-27 SECTION 3. This Act takes effect September 1, 1995, and 4-1 applies only to a wage claim that is filed with the Texas 4-2 Employment Commission on or after that date. A wage claim that is 4-3 filed before that date is governed by the law in effect on the date 4-4 that the wage claim was filed, and the former law is continued in 4-5 effect for that purpose. 4-6 SECTION 4. The importance of this legislation and the 4-7 crowded condition of the calendars in both houses create an 4-8 emergency and an imperative public necessity that the 4-9 constitutional rule requiring bills to be read on three several 4-10 days in each house be suspended, and this rule is hereby suspended. 4-11 COMMITTEE AMENDMENT NO. 1 4-12 Amend House Bill No. 1031: 4-13 Delete the entire Section 1, and replace with the following 4-14 new Section 1: 4-15 SECTION 1. Subchapter E. Chapter 61 Labor Code, is amended 4-16 by adding Section 61.085 to read as follows: 4-17 Sec. 61.085. ASSIGNMENT OF LIEN. A lien securing wages due 4-18 under this chapter may be assigned to the claimant, at the 4-19 claimant's request. 4-20 Oliveira