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