1-1                                   AN ACT

 1-2     relating to reimbursement of certain administrative costs incurred

 1-3     by an employer in implementing a garnishment order.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 63.004, Civil Practice and Remedies Code,

 1-6     is amended to read as follows:

 1-7           Sec. 63.004.  CURRENT WAGES EXEMPT.  Except as otherwise

 1-8     provided by state or federal law, current [Current] wages for

 1-9     personal service are  not subject to garnishment.  The garnishee

1-10     shall be discharged from the garnishment as to any debt to the

1-11     defendant for current wages.

1-12           SECTION 2.  Chapter 63, Civil Practice and Remedies Code, is

1-13     amended by adding Section 63.006 to read as follows:

1-14           Sec. 63.006.  ADMINISTRATIVE FEE FOR CERTAIN COSTS INCURRED

1-15     BY EMPLOYERS.  (a)  An employer who is required by state or federal

1-16     law to deduct from the current wages of an employee an amount

1-17     garnished under a withholding order may deduct monthly an

1-18     administrative fee as provided by Subsection (b) from the

1-19     employee's disposable earnings in addition to the amount required

1-20     to be withheld under the withholding order.  This section does not

1-21     apply to income withholding under Chapter 158, Family Code.

1-22           (b)  The administrative fee deducted under Subsection (a) may

1-23     not exceed the lesser of:

1-24                 (1)  the actual administrative cost incurred by the

 2-1     employer in complying with the withholding order; or

 2-2                 (2)  $10.

 2-3           (c)  For the purposes of this section, "withholding order"

 2-4     means:

 2-5                 (1)  a withholding order issued under Section 488A,

 2-6     Part F, Subchapter IV, Higher Education Act of 1965 (20 U.S.C.

 2-7     Section 1095a); and

 2-8                 (2)  any analogous order issued under a state or

 2-9     federal law that:

2-10                       (A)  requires the garnishment of an employee's

2-11     current wages; and

2-12                       (B)  does not contain an express provision

2-13     authorizing or prohibiting the payment of the administrative costs

2-14     incurred by the employer in complying with the garnishment by the

2-15     affected employee.

2-16           SECTION 3.  This Act takes effect September 1, 1997, and

2-17     applies only to recovery by an employer of administrative costs

2-18     incurred by the employer in complying with a withholding order, as

2-19     that term is defined by Section 63.006, Civil Practice and Remedies

2-20     Code, as added by this Act, that applies to wages paid by the

2-21     employer and received on or after September 1, 1997, by an employee

2-22     subject to the withholding order.  Wages received by the employee

2-23     before September 1, 1997, are governed by the law in effect on the

2-24     date the wages were paid, and the former law is continued in effect

2-25     for that purpose.

2-26           SECTION 4.  The importance of this legislation and the

2-27     crowded condition of the calendars in both houses create an

 3-1     emergency and an imperative public necessity that the

 3-2     constitutional rule requiring bills to be read on three several

 3-3     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 598 was passed by the House on April

         17, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 598 was passed by the Senate on May

         15, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor