| 1 | 1 | | 86R3289 SMT-D |
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| 2 | 2 | | By: Hinojosa S.B. No. 1485 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the payment of wages by an employer through a payroll |
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| 8 | 8 | | card account. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 61.001, Labor Code, is amended by adding |
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| 11 | 11 | | Subdivision (6-a) to read as follows: |
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| 12 | 12 | | (6-a) "Payroll card account" means an account that is |
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| 13 | 13 | | directly or indirectly established by an employer into which each |
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| 14 | 14 | | participating employee's wages, salary, or other form of |
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| 15 | 15 | | compensation is deposited on a recurring basis and for which the |
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| 16 | 16 | | employee receives a payroll card to access the funds in the account. |
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| 17 | 17 | | SECTION 2. Section 61.016(a), Labor Code, is amended to |
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| 18 | 18 | | read as follows: |
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| 19 | 19 | | (a) An employer shall pay wages to an employee: |
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| 20 | 20 | | (1) in United States currency; |
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| 21 | 21 | | (2) by a written instrument issued by the employer |
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| 22 | 22 | | that is negotiable on demand at full face value for United States |
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| 23 | 23 | | currency; or |
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| 24 | 24 | | (3) by the electronic transfer of funds to: |
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| 25 | 25 | | (A) a bank account designated by the employee; or |
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| 26 | 26 | | (B) a payroll card account established by the |
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| 27 | 27 | | employer. |
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| 28 | 28 | | SECTION 3. Section 61.017, Labor Code, is amended by adding |
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| 29 | 29 | | Subsection (d) to read as follows: |
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| 30 | 30 | | (d) An employer may elect to pay wages to an employee |
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| 31 | 31 | | through a payroll card account plan that uses electronic funds |
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| 32 | 32 | | transfer to deposit wages in the employee's payroll card account. |
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| 33 | 33 | | An employer who desires to pay wages through a payroll card account |
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| 34 | 34 | | shall: |
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| 35 | 35 | | (1) notify each affected employee in writing that the |
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| 36 | 36 | | employer is adopting a payroll card account plan not later than: |
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| 37 | 37 | | (A) the 60th day before the date of the first |
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| 38 | 38 | | electronic funds transfer to the payroll card account; or |
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| 39 | 39 | | (B) the first day of work for an employee hired |
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| 40 | 40 | | after the date the employer adopts the plan; |
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| 41 | 41 | | (2) obtain from the employee any information required |
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| 42 | 42 | | by the payroll card account issuer that is necessary to implement |
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| 43 | 43 | | the electronic funds transfer; |
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| 44 | 44 | | (3) provide a complete list of all fees that may be |
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| 45 | 45 | | deducted from the employee's payroll card account by the employer |
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| 46 | 46 | | or payroll card account issuer in English, or, if the employer |
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| 47 | 47 | | offers a payroll card account to an employee in a language other |
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| 48 | 48 | | than English, in that other language; and |
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| 49 | 49 | | (4) provide a form the employee may use to request an |
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| 50 | 50 | | alternate form of payment if the employee elects to opt out of the |
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| 51 | 51 | | payroll card account plan. |
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| 52 | 52 | | SECTION 4. This Act takes effect September 1, 2019. |
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