SRC-AAA H.B. 598 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 598
By: Shields (Wentworth)
Jurisprudence
4-29-97
Engrossed


DIGEST 

Currently, costs of administration expenses can be burdensome to nonprofit
organizations, small businesses, and other employees. It is necessary to
allow the recovery of administrative expenses associated with complying
with a wage order, from the employee, for the repayment of student loans
issued by  the Guaranteed Student Loan Corporation, or other analogous
state or federal wage orders. This bill sets forth requirements for
deducting an administrative fee for certain costs incurred by employers
for administrative expenses associated with a wage order. 

PURPOSE

As proposed, H.B. 598 sets forth requirements for deducting an
administrative fee for certain costs incurred by employers for
administrative expenses associated with a wage order. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 63.004, Civil Practice and Remedies Code, to
provide that, except as otherwise provided by state or federal law,
current wages for personal service are not subject to garnishment. 

SECTION 2. Amends Chapter 63, Civil Practice and Remedies Code, by adding
Section 63.006, as follows: 

Sec. 63.006. ADMINISTRATIVE FEE FOR CERTAIN COSTS INCURRED BY EMPLOYERS.
Sets forth requirements for deducting an administrative fee for certain
costs incurred by employers. Provides that this section does not apply to
income withholding under Chapter 158, Family Code.  Prohibits the
administrative fee deducted under Subsection (a) from exceeding the lesser
of the actual administrative cost incurred or $10. Defines "withholding
order." 

SECTION 3. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 4. Emergency clause.