HBA-SEP H.B. 2028 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2028
By: Yarbrough
Economic Development
4/16/2001
Committee Report (Amended)



BACKGROUND 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.  House Bill
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

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2028 amends the Labor Code to provide that a lien established by
the Texas Workforce Commission 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. 

EFFECTIVE DATE

September 1, 2001.

EXPLANATION OF AMENDMENTS

Committee No. 1 provides that a lien established by the Texas Workforce
Commission against an employer indebted to the state for penalties or wages
is superior to any other lien on the same property with the exception of,
rather than including, a lien for ad valorem taxes.