HBA-DMD H.B. 327 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 327 By: Thompson Economic Development 4/19/1999 Committee Report (Amended) BACKGROUND AND PURPOSE Under current state law, the state minimum wage is $3.35 per hour. H.B. 327 increases the state minimum wage rate to the federal minimum wage rate, with certain exceptions. 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. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 62.051, Labor Code, to require an employer to pay each employee the federal minimum wage under Section 6, Fair Labor Standards Act of 1938 (29 U.S.C. Section 206), except as provided by Section 62.055 (Special Wage for Certain Employees) and Section 62.057 (Patients and Clients of Texas Department of Mental Health and Mental Retardation). Deletes the provision which authorizes payment of a wage of not less than $3.35 an hour. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause. EXPLANATION OF AMENDMENTS Adds new SECTION 2, to amend Section 62.052(a), Labor Code, to establish that in determining the wage of a tipped employee, the amount paid by the employer is the federal wage as defined under the Fair Labor Standards Act of 1938 (29 U.S.C. Section 203(m)). Existing law provides that, for purposes of such a determination, the amount paid by the employer is considered to be increased because of tips by an amount determined by the employer, but that does not exceed 50 percent of the applicable minimum wage. Renumbers subsequent sections of this bill accordingly.