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.