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


Office of House Bill AnalysisH.B. 2028
By: Yarbrough
Economic Development
7/10/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, if a business filed bankruptcy or went out
of business and owed wages to its employees, the priority for recovery of
lost wages was generally low.  The Texas Workforce Commission (TWC) assists
employees with claims to recover their lost wages and frequently had to
file in district courts to obtain these wages, which was 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, with the exception of 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,
with the exception of a lien for ad valorem taxes. 

EFFECTIVE DATE

September 1, 2001.