ZEM H.B. 598 75(R)BILL ANALYSIS


CIVIL PRACTICES
H.B. 598
By: Shields
2-21-97
Committee Report (Unamended)



BACKGROUND 

This legislation 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 (GSLC), or other analogous state or federal wage orders.  Such
costs can be burdensome to nonprofit organizations, small businesses and
other employers. 

PURPOSE

To allow employers to recover their actual administrative expenses
incurred while complying with a wage order issued under Section 488A, Part
F, Subchapter IV, Higher Education Act of 1965 (20 U.S.C. 1095a), for the
repayment of students loans, or other analogous wage orders from other
Federal agencies or courts or from other states. 

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 Sec. 63.004, Civil Practices and Remedies Code, to make
current wages for personal service garnishable if specifically provided
for in state or federal law. 

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

(a)  Provides for an employer to deduct for a monthly administrative fee
from an employee's disposable earnings, if  the employer is required by
state or federal law to deduct an amount from wages from the employee
under a valid wage order. Provides that this section does not cover income
withholding covered under Chapter 158, Family Code. 

(b)  Provides that the administrative fee is the lesser of the actual
administrative costs incurred or $10. 

(c)  Defines "withholding order" as a withholding order issued under
Section 488A, Part F, Subchapter IV, Higher Education Act of 1965 (20
U.S.C. Section 1095a); and any analogous order of a Federal court or
agency or court of another state that requires garnishment of current
wages, and does not contain an express provision authorizing or
prohibiting the payment of an administrative fee. 

SECTION 3.  Effective date: September 1, 1997.  This act applies only to
administrative costs associated with complying with such wage order that
are incurred on or after the effective date. 

SECTION 4. Emergency Clause