The House Committee on International Relations & Economic Development met on March 18 to take up and consider bills. This report focuses on bills relating to cross-border infrastructure investment, payroll, and workplace sexual harassment.

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing, but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

Vote Outs

  • CSHB 680 (Deshotel) Relating to the evaluation of and improvements to the quality of the Texas Workforce Commission’s subsidized child care program.
    • CS adopted, voted out 6-1 (Cain)
  • HB 1588 (Metcalf) Relating to the deadline for certain economic development corporations to file a certain report with the comptroller.
    • Voted out 7-0
  • HB 2223 (Frullo) Relating to the exemption of certain commercial weighing or measuring devices from registration and inspection requirements.
    • Voted out 7-0
  • HB 260 (Blanco) Relating to the creation of a cross-border motor vehicle traffic congestion web portal.
    • Voted out 7-0
  • HB 83 (Romero) Relating to administrative penalties assessed by the Texas Workforce Commission against certain employers for failure to pay wages.
    • Voted out 7-0

 

New Bills

HJR 83 (Martinez) Proposing a constitutional amendment authorizing the state or a municipality or county to donate certain property to the United States to promote border crossing security or international bridge trade corridors, to issue public securities to finance the acquisition or construction of that property, and to use public money to make certain payments related to public-private partnerships.

  • Will boost border security & international trade, allows communities to invest in innovative port of entry infrastructure
  • City of Donna previously had issues donating property to federal government to facilitate development of border-adjacent import lot
  • Typically, state law requires that funds must be expended for public purpose, public must receive adequate consideration, governmental entity must retain control; City of Donna failed the third prong & trying to address this
  • Delays have huge impact economically and for border security
  • Anchia – I wanted to highlight one data point, when you have northbound vehicular traffic that is engaged in international trade, for every minute idling at the border what is the cost to the US economy?
    • $116m for every minute in lost GDP
    • Far is our main international bridge, by allowing cities like Donna and Mission to do this would allow backed up trucks from Far to divert elsewhere
  • Anchia – One of things we talk about often is making the border more agile and secure using technology
  • Larson – From a broader standpoint, how much private money is flowing into infrastructure around the border?
    • Would depend on what is needed, in Donna $50m could be invested into port of entry to address transit concerns
  • Larson – How much money is sitting on the sidelines?
    • Likely close to billions of dollars
  • Anchia – A few sessions ago an appropriations rider allowed P3s to be used for border crossings, not sure if there are rules yet, but relatively new

 

No public testimony

 

HJR 83 left pending

 

HB 2240 (Murphy) Relating to the payment of wages by an employer through a payroll card account

  • Allows pay cards to be used for payroll, technology catch up bill
  • Permissively allows employers to pay through these card, assists with large unbanked population & can assist during disaster periods when banks are unavailable
  • Employees must agree to it, employees can change to another method later on at no charge
  • Romero – What happens if someone losses the card?
    • Can reissue, terminate, etc., would need to deactivate & there is a liability for loss which is $50 or amount on card, whichever is lessor
  • Romero – Would this only be allowed for employees or employers use other methods for other services?
    • Bill doesn’t speak to this, right now law says must pay wages with check, etc.
  • Romero – Would they be allowed to pay independent contractors with this?
    • I believe they can do this already
  • Anchia – Does the vendor clip a fee and does the fee come of the card?
    • Usually employer side, most of the time all of the services and employee would want are free
    • All fees must be disclosed to the employee at time of signing up

 

Buddy Gatlin, Home Depot – For

  • Testifying to effects on employees during Harvey
  • Distribution center in Baytown closed for 3 days, employees affected by flooding and home destruction, were unable to come to work to get paper checks, etc.
  • Could be a huge win for employees to be able avoid issues like those resulting from Harvey

 

Brian Yarbrough, Home Depot – For

  • Payroll cards are not new, fall underneath wage laws along with in-kind payments
  • 28 states have rules and regulations adopting and authorizing payroll card accounts, other states were able to adopt these by rule
  • Payroll cards and payroll card accounts are extensively regulated
  • Most modern payroll card systems have reduced liability to 0 dollars for losses
  • Cards are not like gift cards, designed specifically for those that are unbanked & using checks; hope is to avoid check cashing fees, etc.
  • Modern systems allow access similar to debit cards, disclosure regs exist, error resolution, overdraft protection, etc.
  • Also coming in 2-weeks are additional prepaid card regulations that would bolster regulations
  • HB 2240 is important because it includes features beyond federal requirements for these systems; includes notice provision, additional languages besides English, allows for opt-out
  • Romero – Can you speak to the fee, how is it calculated? Does the employee face any fee
    • There is a free & clear regulation under federal laws, supposed to receive wages free & clear of fees
    • Money is transferred to financial institution and then it becomes the employees money
    • If there are fees, purpose of disclosures is to avoid fees
  • Romero – Is this used mostly for employees or for subcontractors?
    • This affects the employer-employee relationship & contractors would not be affected in regards to payments

 

Rep. Murphy closes

  • Provides overview of services provided by a bank that provides payroll cards, particular example has no fee to the employee, also skipping check cashing fees

 

HB 2240 left pending

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HB 1714 (Blanco) Relating to the designation of certain federal funds for border infrastructure projects.

  • In 2015 Congress passed the FAST Act, by 2020 it will have provided Texas $.526b in form of surface transportation block grants
  • Act allows state to designate up to 5% of these funds for border infrastructure
  • HB 1714 would direct designation of these funds for border infrastructure to facilitate trade through border ports of entry
  • Larson – How much did they receive in the last budget?
    • In 2018 we received $1.9b, 5% is $54m
  • Larson – How does money received compare to Gulf ports?
    • Can get this info to you

 

Elizabeth Lippincott, Texas Border Coalition – For

  • TBC supports HB 1714
  • Members of the Texas delegation in Congress were key in enacting the provision allowing the 5% designation as land border trade is very important
  • 5% allocation authorized in federal statute would ensure that we can continue to invest in necessary infrastructure to keep cross-border trade moving efficiently
  • Anchia – Had a discussion about the appropriations rider included in the budget, are we now able to use private funds on border infrastructure?
    • There are some provisions for private donations through CBD and GSC, cumbersome

 

HB 1714 left pending

 

HB 618 (Neave) Relating to the prohibition of certain required nondisclosure and arbitration agreements.

  • CS laid out
  • CS seeks to address one of the many barriers to combat sexual harassment & assault in the workplace, prohibits nondisclosure that prohibit victims of sexual harassment from notifying law enforcement or disclosing facts in investigations or judicial proceedings
  • Presents data on sexual assault in Texas, data is often underreported
  • Targeting NDAs for employees while they are employees, not settlement agreement NDA; research is being done on if these NDAs have a chilling effect on sexual assault reporting
  • HB 618 would make NDAs, confidentiality agreements, etc. unenforceable if tit prohibits the employee from notifying law enforcement or regulatory agency about sexual harassment or prohibits employee from disclosing facts about sexual harassment
  • States have begun restricting these NDAs, recommended by national organizations
  • Took out arbitration discussions and other provisions

 

Rebecca Eisenbrey, Equal Justice Center – For

  • Women and immigrant women of color are typically overrepresented in lower paying jobs, lack many of the supports for reporting workplace abuses
  • 1/3rd of employers currently use NDAs, can chill reporting, mislead employees about their rights
  • HB 618 would introduce much needed transparency & provide clearer picture of workplace harassment

 

Lowell Keig, Texas Workforce Commission – Resource

  • Anchia – What is the universe of charges or findings of abuse in Texas?
    • Keig, TWC – In 2018, statewide we had 737 complaints filed alleging sexual harassment & 181 for TWC, went down overall from 2017, but saw an increase in complaints made through TWC
  • Anchia – Every NDA I’ve seen has a carve-out for provisions for talking to law enforcement, etc.
    • Eisenbrey – This is imagining a provision that says a person cannot preemptively go to a court, etc. and hopefully HB 618 would prevent this
  • Anchia – Explain a fact pattern that would give rise to bill protections for disclosure to any person
    • Eisenbrey – This is fairly common, many workers don’t have sophisticated NDAs, but Weinstein NDAs had a total gag order, etc.
  • Anchia – Do you see these in the marketplace regularly
    • Keig, TWC – No
  • Anchia – So this is an NDA as a condition of employment
    • Eisenbrey – Correct

 

Rep. Neave closes

  • Anchia – TAB put in a card against, are you working with them as stakeholders?
    • Working with numerous stakeholders, will get with staff
  • Anchia – Might be an end we want to tie down

 

CS withdrawn, HB 618 left pending

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HB 1527 (Neave) Relating to an employee’s liability for sexual harassment.

  • If an individual files a sexual harassment claim they can file against an employer, but an employee gets off the hook
  • HB 1527 seeks to include language that an employee may be held directly liable in sexual harassment cases
  • Several states allow supervisors to be held liable, some allow employees to be held individually liable for harassment
  • Allowing victims to sue harassers directly will allow us to hold everyone in the chain liable, goal is to deter sexual harassment in the workplace
  • Can also assist the employer in helping defray costs or penalties, assuming the case gets to that point
  • Romero – Do you believe there are people that know that they aren’t liable?
    • There are many barriers, this could be one
  • Romero – Did business groups come to you and say this is something they agree with?
    • Not changing the liability for the employer, essentially bringing in the perpetrator of the action
  • Romero – How will employees be made aware of the change in the law
    • Bill doesn’t address notification, hope is that employer will notify employees

 

Lowell Keig, Texas Workforce Commission – Resource

  • Romero – Would there a be a possibility to include this in notice to employees? How would you recommend that this is
    • Would certainly change all training and outreach materials to include this info
  • Romero – Does the TWC require employers to have notifications for employees that is available at all times?
    • There is a β€œThis is the Law” poster, might be added to it, but unsure if it goes into this detail
  • Romero – Do you believe that employees know they are not liable? Do you think employees could be surprised by being included in a lawsuit?
    • Not aware

 

Rebecca Eisenbrey, Equal Justice Center – For

  • Currently no method for including employer in sexual harassment suits
  • Employer is currently held liable for action of employee if they knew or should have known, there are cases where no one is liable currently
  • HB 1527 would allow for perpetrator to be held liable & modify caps to reflect current amounts; carve out should remain to allow victim to claim for amounts beyond arbitrary amounts related to size of the employer
  • Current law pre-empts other avenues for sexual harassment suits to be brought
  • Romero – Do you have any information on claims and how often it is difficult to prove the employer knew anything about it?
    • Don’t have statistics, but do see this often in claims brought against employee
  • Herrero and Eisenbrey discuss issues like involvement of cameras in proving events

 

Rep. Neave closes

  • Spoke with several statewide organizations & saw no issues, have not had issues raised with our office
  • Very difficult to prove sexual harassment cases, holding individual employee liable would reduce barriers

 

HB 1527 left pending

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HB 1529 (Neave) Relating to the statute of limitations applicable to a sexual harassment complaint filed with the Texas Workforce Commission.

  • Attempts to provide victims of sexual harassment enough time to file complaints in line with federal timeline
  • Currently employees must file complaints with TWC within 180 days, & under federal law this is 300 days
  • HB 1529 aligns state statute of limitations with federal
  • 180-day window is very short, 15 states give victims at least 300 days

 

Rebecca Eisenbrey, Equal Justice Center – For

  • Vast majority of incidents of workplace sexual assault and harassment go unreported, EEOC study summarized that only about 30% of employees reported and only 10% filed formal complaint
  • Employees feel disempowered to file at time of occurrence due to fear of disbelief, retaliation, or ostracism; often the organization is indifferent
  • Fear of reporting is further enhancing for law wage workers when it could result in loss of livelihood
  • HB 1529 conforms with existing timelines for federal complaints

 

Lowell Keig, Texas Workforce Commission – Resource

  • Blanco – How long have the federal and state statute been unaligned
    • Eisenbrey – Forever, federal statute is odd in that it provides for a 180-day limit unless the state passes a timeline and then it expands, was passed after Title VII in 1993
  • Blanco – Does the state track how many reports have been made beyond the 180-day period?
    • Keig, TWC – TWC transferred 9 complaints to EEOC in 2018 because they were made after 180 days

 

Rep. Neave closes

  • Legislature has been called upon to act on workplace sexual harassment, can have an impact by aligning timelines

 

HB 1529 left pending

 

HB 2279 (Zwiener) Relating to the prohibition against sexual harassment in the workplace.

  • Identical to SB 46 by Zaffirini, no fiscal impact to state or local governments
  • Goal is to ensure employees have adequate legal protections; current state law does no define sexual harassment as unlawful aside from against unpaid interns & current protections only apply to employers with 15 or more employees
  • HB 2279 extends the sexual harassment definition to employees as a whole, not just unpaid interns, and extends liability for all employers, not just for employers with 15 or more employees
  • Several issues make smaller firms more susceptible to workplace harassment, e.g. lack of HR

 

Laura de la Paz, Hayes-Caldwell Women’s Center – For

  • Provides overview of Hayes-Caldwell Women’s Center, see large numbers of sexual assault cases
  • Shares story of client experiencing sexual harassment at a small business of <15 employees
  • Sexual harassment has impacts on employment, health, and family & friends; can have many negative mental health effects

 

Joell Beagle, SAFE Alliance – For

  • Provides overview of SAFE Alliance, Central Texas nonprofit focused on stopping abuse
  • SAFE created BASE, a program that trains employees to prevent, interrupt, and stop sexual harassment
  • Sexual harassment occurs in businesses of every size
  • Shares several cases of sexual harassment in the workplace
  • Supports HB 2279 expansion to employers of <15 employees

 

Alicia Weigel, Self – For

  • Shares experiences with sexual harassment in the workplace & impact; issues persisted across different industries and many covered up apparent problems
  • Sexual assault can occur in large, well-respected firms with HR departments, highlights that smaller firms do not even have these protections & employees in smaller firms are often more vulnerable

 

Rebecca Eisenbrey, Equal Justice Center – For

  • Sexual harassment is widespread, currently victims in smaller workplaces are denied state protections & put are put at risk
  • Courts have interpreted case law to prohibit actions against smaller employers that are like sexual harassment, courts have interpreted the 15-employee limit to protect small businesses and prevent these claims

 

Lowell Keig, Texas Workforce Commission – Resource

  • Anchia – Do you receive complaints about a firm of less than 15 employees?
    • Have not captured this data, but we do receive the complaints and they get dismissed at the intake stage
  • Anchia – I imagine there are more cases that go unreported as they are discouraged at the intake stage; would be interested on data on number of sexual harassment complaints at employers <15 received by TWC
    • Can get this to you in the next few days

 

Rep. Zwiener closes

  • Directions on TWC website clearly states to not submit these claims at employers <15
  • Anchia – Is there an estimated scope of magnitude?
    • No numbers on <15, but we do have data on employers of 20 or fewer, would estimate at least 250k individuals impacted by this
  • Anchia – I did notice that NFIB put in a card against, have they engaged you?
    • They have not approached me, my understanding is that Sen. Zaffirini is in contact with them

 

HB 2279 left pending

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Committee adjourned