By: Callegari H.B. No. 30
A BILL TO BE ENTITLED
AN ACT
relating to unpaid furloughs for state employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 658.007, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) Notwithstanding other law, including Sections 658.003
and 658.004, or terms of contract, an institution of higher
education may establish a mandatory employee furlough or work
reduction program as necessary to increase efficiency, reduce the
cost of operations, or otherwise address the financial condition of
the institution. While a furlough or work reduction program is in
effect, the terms and conditions of the program apply
notwithstanding other law. Any reduction in costs or savings
attained by the institution as a result of a furlough or work
reduction program shall be retained and expended by the institution
and shall not be accounted for in an appropriations act in such a
way as to reduce the general revenue or other appropriations to the
institution.
SECTION 2. Chapter 658, Government Code, is amended by
adding Section 658.011 to read as follows:
Sec. 658.011. INVOLUNTARY FURLOUGH PROGRAM. (a) In this
section, "state agency" means a board, commission, office,
department, or other agency in the executive, judicial, or
legislative branch of state government. The term does not include
an institution of higher education as defined by Section 61.003,
Education Code.
(b) On approval of the governing body of the state agency,
the executive director of a state agency may require an employee of
the state agency to participate in an involuntary furlough program
without pay in order to balance the state agency's budget.
(c) The state agency implementing an involuntary furlough
program under this section shall reduce an employee's compensation
in an amount equal to the number of hours the employee is furloughed
times the employee's hourly rate or equivalent hourly rate as
provided by Section 659.085.
(d) Except as provided by Subsection (g), a state employee
may not use vacation, sick, or any other paid leave while the
employee is on an unpaid furlough.
(e) An unpaid furlough under this section does not
constitute a break in service for the state employee.
(f) A state employee who is on unpaid furlough continues to
accrue:
(1) state service credit for purposes of longevity
pay;
(2) vacation leave; and
(3) sick leave.
(g) A state employee on an unpaid furlough that exceeds one
month in length may continue to accrue service credit with the
Employees Retirement System of Texas or Teacher Retirement System
of Texas by receiving state pay during each month of the unpaid
furlough in an amount equal to the employee's contribution to the
retirement system under Section 815.402 or 825.403, as appropriate.
The employee may use any combination of paid leave, including state
compensatory leave, overtime leave under the federal Fair Labor
Standards Act of 1938 (29 U.S.C. Section 201 et seq.), sick leave,
or annual leave to qualify for the state pay.
SECTION 3. Subchapter K, Chapter 659, Government Code, is
amended by adding Section 659.264 to read as follows:
Sec. 659.264. CERTAIN SALARY REDUCTIONS AT INSTITUTIONS OF
HIGHER EDUCATION. Notwithstanding other law or terms of contract,
subject solely to procedures and rules adopted by the governing
board, an institution of higher education may establish a program
of temporary or permanent salary reductions as necessary to reduce
cost of operations or otherwise address the financial condition of
the institution.
SECTION __. Section 659.043, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) Notwithstanding Subsections (a)(1) and (2), an employee
participating in an involuntary furlough program under Section
658.011 who is otherwise eligible for longevity pay is entitled to
longevity pay.
SECTION 4. Section 811.001(7), Government Code, is amended
to read as follows:
(7) "Compensation" means the base salary of a person;
amounts that would otherwise qualify as compensation but are not
received directly by a person pursuant to a good faith, voluntary,
written salary reduction agreement in order to finance payments to
a deferred compensation or tax sheltered annuity program
specifically authorized by state law or to finance benefit options
under a cafeteria plan qualifying under Section 125 of the Internal
Revenue Code of 1986 (26 U.S.C. Section 125); longevity and
hazardous duty pay; nonmonetary compensation, the value of which is
determined by the retirement system; amounts by which a person's
salary is reduced under a salary reduction agreement authorized by
Chapter 610; amounts by which a person's salary is reduced under an
involuntary furlough program under Section 658.011; and the benefit
replacement pay a person earns under Subchapter H, Chapter 659, [as
added by Chapter 417, Acts of the 74th Legislature, 1995,] except
for the benefit replacement pay a person earns as a result of a
payment made under Subchapter B, C, or D, Chapter 661. The term
excludes overtime pay and a cleaning or clothing allowance.
SECTION 5. Subchapter C, Chapter 1551, Insurance Code, is
amended by adding Section 1551.1015 to read as follows:
Sec. 1551.1015. INVOLUNTARY FURLOUGH PROGRAM. An
individual is eligible to participate in the group benefits program
if the individual would otherwise be eligible to participate in the
program under this subchapter except that the individual is not
receiving compensation for service because the individual is
participating in an involuntary furlough program under Section
658.011, Government Code.
SECTION 6. Section 1551.319, Insurance Code, is amended by
adding Subsection (g) to read as follows:
(g) For purposes of determining whether an individual is a
full-time or part-time employee under this section, any reduction
in the employee's hours that results from the employee's
participation in an involuntary furlough program under Section
658.011, Government Code, may not be considered.
SECTION 7. Subchapter G, Chapter 1551, Insurance Code, is
amended by adding Section 1551.325 to read as follows:
Sec. 1551.325. CONTRIBUTIONS AND PAYMENTS FROM CERTAIN
EMPLOYEES. (a) An employee participating in an involuntary
furlough program under Section 658.011, Government Code, for a
period of a month or more shall make the contributions required for
the coverage selected by the employee, including any amount of a
salary reduction agreement under a cafeteria plan, as required by
the trustee.
(b) The employee is entitled to receive compensation for any
combination of paid leave, including state compensatory leave,
overtime leave under the federal Fair Labor Standards Act of 1938
(29 U.S.C. Section 201 et seq.), sick leave, or annual leave, to the
extent necessary to make the required contribution.
SECTION 8. This Act takes effect October 1, 2011.