HBA-JLV, SEP H.B. 303 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 303
By: Burnam
Economic Development
2/23/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the federal minimum wage is $5.15 an hour.  Income from
a full-time job at this wage is not always sufficient to cover the costs of
food, clothing, and shelter.  As a result, the working-poor may have to
rely on public assistance programs to cover living expenses.  House Bill
303 creates a living wage for private employees through a formula based on
the fair market cost of housing.   

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 303 amends the Labor Code to require an employer to pay to each
employee the greater hourly wage of either the federal minimum hourly wage
or the average weekly salary divided by 40.  The average weekly salary is
calculated as the fair market rent of the fair market rent area in which
the employer is located divided by 0.3 and divided again by 4.3.  The bill
defines "fair market rent" as a fair market rent as determined by the
United States Department of Housing and Urban Development (HUD) for a one
bedroom apartment, and defines "fair market rent area" as the metropolitan
area or nonmetropolitan county as determined by HUD in which a fair market
rent applies. 

H.B. 303 repeals provisions that authorize the employment of a person at a
wage less than the applicable minimum wage if the person is over the age of
65, or if the person's earning or productive capacity is impaired by age,
physical or mental deficiency, or injury.   

EFFECTIVE DATE

September 1, 2001.