C.S.H.B. 1277 78(R)    BILL ANALYSIS


C.S.H.B. 1277
By: Madden
Public Education
Committee Report (Substituted)



BACKGROUND 

Currently, the Texas Education Code requires a school district to honor an
employee's assignment, pledge, or transfer, as security for indebtedness,
of an interest in the employee's salary or wages, if certain requirements
are met. Most employees request payroll deductions and assignment for
payment of annuity premiums and professional organization dues, but the
provision is available for assignment to any creditor of an employee.
School district payroll offices are deluged with multiple demands and
changes throughout the school year for payroll deductions, all of which
increase the administrative burden on school district.  
 

PURPOSE 

C.S.H.B. 1277  requires that the employee notify the district of these
types of payroll deductions no later than the seventh day after the first
day of instruction of the school year or the seventh day after an employee
is hired if the hiring occurs after the first day of instruction. The bill
permits school districts to charge a reasonable administrative fee for
each assignment or change of a employee's assignment, pledge, or transfer
of any interest or part of the employee's salary or wages. 


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. 


ANALYSIS

C.S.H.B. 1277 amends the Education Code to provide that any school
employee's assignment, pledge, or transfer of an interest or part of the
employee's salary or wages is enforceable only if the employee obtains
written approval of the employing school district; delivers a copy of the
assignment, pledge, or transfer to the school district no later than the
seventh day after the first day of instruction for the school year or the
seventh day after being hired, if hired after the first day of instruction
for the school year and pays any applicable administrative fees; and the
indebtedness the assignment, pledge, or transfer secures is valid and
enforceable. 

The bill authorizes a school district to charge a school employee a
reasonable administrative fee for honoring an assignment, pledge, or
transfer. 


EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1277 modifies the original by moving the deadline for submitting
documentation and  payment for payroll deductions to the seventh day after
the first day of instruction of the school year or the seventh day after
an employee is hired if the hiring occurs after the first day of
instruction of the school year.