SRC-CTC H.B. 2028 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2028
By: Yarbrough (Van de Putte)
Business & Commerce
5/9/2001
Engrossed


DIGEST AND PURPOSE 

Under the current system, if a business files bankruptcy or goes out of
business and owes wages to its employees, the priority for lost wages is
generally low.  The Texas Workforce Commission (TWC) assists employees with
claims to recover their lost wages and frequently has to file in district
courts to obtain these wages, which is costly to the state.  H.B. 2028
provides that a lien established by TWC against an employer indebted to the
state for penalties or wages is superior to any other lien on the same
property, including a lien for ad valorem taxes.    

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 61E, Labor Code, by adding Section 61.0825, as
follows: 

Sec. 61.0825.  PRIORITY OF LIEN.  Provides that a lien established under
this subchapter is superior to any other lien on the same property, with
the exception of a lien for ad valorem taxes. 

SECTION 2.  Effective date: September 1, 2001.  Provides that this Act
applies to a lien imposed by the Texas Workforce Commission under Chapter
61, Labor Code, without regard to whether the lien was imposed before, on,
or after that date.