Texas 2011 - 82nd 1st C.S.

Texas House Bill HB30 Compare Versions

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1	1	82S10565 MCK-D
2	2	By: Callegari H.B. No. 30
3	3	Substitute the following for H.B. No. 30:
4	4	By: Callegari C.S.H.B. No. 30
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to unpaid furloughs for state employees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 658.007, Government Code, is amended by
12	12	adding Subsections (c), (d), and (e) to read as follows:
13	13	(c) Notwithstanding other law, including Sections 658.003
14	14	and 658.004, or terms of contract, an institution of higher
15	15	education may establish a mandatory employee furlough or work
16	16	reduction program as necessary to increase efficiency, reduce the
17	17	cost of operations, or otherwise address the financial condition of
18	18	the institution. While a furlough or work reduction program is in
19	19	effect, the terms and conditions of the program apply
20	20	notwithstanding other law. Any reduction in costs or savings
21	21	attained by the institution as a result of a furlough or work
22	22	reduction program shall be retained and expended by the institution
23	23	and shall not be accounted for in an appropriations act in such a
24	24	way as to reduce the general revenue or other appropriations to the
25	25	institution.
26	26	(d) Sections 658.011(e)-(g) apply to a mandatory furlough
27	27	or work reduction program adopted by an institution of higher
28	28	education under Subsection (c).
29	29	(e) An individual participating in an involuntary furlough
30	30	or work reduction program who receives benefits under Chapter 1601,
31	31	Insurance Code, remains eligible for benefits in accordance with
32	32	rules adopted by the applicable system as defined by Section
33	33	1601.003, Insurance Code.
34	34	SECTION 2. Chapter 658, Government Code, is amended by
35	35	adding Section 658.011 to read as follows:
36	36	Sec. 658.011. INVOLUNTARY FURLOUGH PROGRAM. (a) In this
37	37	section, "state agency" means a board, commission, office,
38	38	department, or other agency in the executive, judicial, or
39	39	legislative branch of state government. The term does not include
40	40	an institution of higher education as defined by Section 61.003,
41	41	Education Code.
42	42	(b) On approval of the governing body of the state agency,
43	43	the executive director of a state agency may require an employee of
44	44	the state agency to participate in an involuntary furlough program
45	45	without pay in order to balance the state agency's budget.
46	46	(c) The state agency implementing an involuntary furlough
47	47	program under this section shall reduce an employee's compensation
48	48	in an amount equal to the number of hours the employee is furloughed
49	49	times the employee's hourly rate or equivalent hourly rate as
50	50	provided by Section 659.085.
51	51	(d) Except as provided by Subsection (g), a state employee
52	52	may not use vacation, sick, or any other paid leave while the
53	53	employee is on an unpaid furlough.
54	54	(e) An unpaid furlough under this section does not
55	55	constitute a break in service for the state employee.
56	56	(f) A state employee who is on unpaid furlough continues to
57	57	accrue:
58	58	(1) state service credit for purposes of longevity
59	59	pay;
60	60	(2) vacation leave; and
61	61	(3) sick leave.
62	62	(g) A state employee on an unpaid furlough that exceeds one
63	63	month in length may continue to accrue service credit with the
64	64	Employees Retirement System of Texas or Teacher Retirement System
65	65	of Texas by receiving state pay during each month of the unpaid
66	66	furlough in an amount equal to the employee's contribution to the
67	67	retirement system under Section 815.402 or 825.403, as appropriate.
68	68	The employee may use any combination of paid leave, including state
69	69	compensatory leave, overtime leave under the federal Fair Labor
70	70	Standards Act of 1938 (29 U.S.C. Section 201 et seq.), sick leave,
71	71	or annual leave to qualify for the state pay.
72	72	SECTION 3. Section 659.043, Government Code, is amended by
73	73	adding Subsection (c) to read as follows:
74	74	(c) Notwithstanding Subsections (a)(1) and (2), an employee
75	75	participating in an involuntary furlough program under Section
76	76	658.011 who is otherwise eligible for longevity pay is entitled to
77	77	longevity pay.
78	78	SECTION 4. Subchapter K, Chapter 659, Government Code, is
79	79	amended by adding Section 659.264 to read as follows:
80	80	Sec. 659.264. CERTAIN SALARY REDUCTIONS AT INSTITUTIONS OF
81	81	HIGHER EDUCATION. Notwithstanding other law or terms of contract,
82	82	subject solely to procedures and rules adopted by the governing
83	83	board, an institution of higher education may establish a program
84	84	of temporary or permanent salary reductions as necessary to reduce
85	85	cost of operations or otherwise address the financial condition of
86	86	the institution.
87	87	SECTION 5. Section 811.001(7), Government Code, is amended
88	88	to read as follows:
89	89	(7) "Compensation" means the base salary of a person;
90	90	amounts that would otherwise qualify as compensation but are not
91	91	received directly by a person pursuant to a good faith, voluntary,
92	92	written salary reduction agreement in order to finance payments to
93	93	a deferred compensation or tax sheltered annuity program
94	94	specifically authorized by state law or to finance benefit options
95	95	under a cafeteria plan qualifying under Section 125 of the Internal
96	96	Revenue Code of 1986 (26 U.S.C. Section 125); longevity and
97	97	hazardous duty pay; nonmonetary compensation, the value of which is
98	98	determined by the retirement system; amounts by which a person's
99	99	salary is reduced under a salary reduction agreement authorized by
100	100	Chapter 610; amounts by which a person's salary is reduced under an
101	101	involuntary furlough program under Section 658.011; and the benefit
102	102	replacement pay a person earns under Subchapter H, Chapter 659, [as
103	103	added by Chapter 417, Acts of the 74th Legislature, 1995,] except
104	104	for the benefit replacement pay a person earns as a result of a
105	105	payment made under Subchapter B, C, or D, Chapter 661. The term
106	106	excludes overtime pay and a cleaning or clothing allowance.
107	107	SECTION 6. Section 822.201(b), Government Code, is amended
108	108	to read as follows:
109	109	(b) "Salary and wages" as used in Subsection (a) means:
110	110	(1) normal periodic payments of money for service the
111	111	right to which accrues on a regular basis in proportion to the
112	112	service performed;
113	113	(2) amounts by which the member's salary is reduced
114	114	under a salary reduction agreement authorized by Chapter 610;
115	115	(3) amounts that would otherwise qualify as salary and
116	116	wages under Subdivision (1) but are not received directly by the
117	117	member pursuant to a good faith, voluntary written salary reduction
118	118	agreement in order to finance payments to a deferred compensation
119	119	or tax sheltered annuity program specifically authorized by state
120	120	law or to finance benefit options under a cafeteria plan qualifying
121	121	under Section 125 of the Internal Revenue Code of 1986, if:
122	122	(A) the program or benefit options are made
123	123	available to all employees of the employer; and
124	124	(B) the benefit options in the cafeteria plan are
125	125	limited to one or more options that provide deferred compensation,
126	126	group health and disability insurance, group term life insurance,
127	127	dependent care assistance programs, or group legal services plans;
128	128	(4) performance pay awarded to an employee by a school
129	129	district as part of a total compensation plan approved by the board
130	130	of trustees of the district and meeting the requirements of
131	131	Subsection (e);
132	132	(5) the benefit replacement pay a person earns under
133	133	Subchapter H, Chapter 659, except as provided by Subsection (c);
134	134	(6) stipends paid to teachers in accordance with
135	135	Section 21.410, 21.411, 21.412, or 21.413, Education Code;
136	136	(7) amounts by which the member's salary is reduced or
137	137	that are deducted from the member's salary as authorized by
138	138	Subchapter J, Chapter 659;
139	139	(8) a merit salary increase made under Section 51.962,
140	140	Education Code;
141	141	(9) amounts received under the relevant parts of the
142	142	educator excellence awards program under Subchapter O, Chapter 21,
143	143	Education Code, or a mentoring program under Section 21.458,
144	144	Education Code, that authorize compensation for service;
145	145	(10) salary amounts designated as health care
146	146	supplementation by an employee under Subchapter D, Chapter 22,
147	147	Education Code; [and]
148	148	(11) to the extent required by Sections 3401(h) and
149	149	414(u)(2), Internal Revenue Code of 1986, differential wage
150	150	payments received by an individual from an employer on or after
151	151	January 1, 2009, while the individual is performing qualified
152	152	military service as defined by Section 414(u), Internal Revenue
153	153	Code of 1986; and
154	154	(12) amounts by which a person's salary is reduced
155	155	under an involuntary furlough or work reduction program under
156	156	Section 658.007.
157	157	SECTION 7. Subchapter C, Chapter 1551, Insurance Code, is
158	158	amended by adding Section 1551.1015 to read as follows:
159	159	Sec. 1551.1015. INVOLUNTARY FURLOUGH PROGRAM. An
160	160	individual is eligible to participate in the group benefits program
161	161	if the individual would otherwise be eligible to participate in the
162	162	program under this subchapter except that the individual is not
163	163	receiving compensation for service because the individual is
164	164	participating in an involuntary furlough program under Section
165	165	658.007 or 658.011, Government Code.
166	166	SECTION 8. Section 1551.319, Insurance Code, is amended by
167	167	adding Subsection (g) to read as follows:
168	168	(g) For purposes of determining whether an individual is a
169	169	full-time or part-time employee under this section, any reduction
170	170	in the employee's hours that results from the employee's
171	171	participation in an involuntary furlough program under Section
172	172	658.007 or 658.011, Government Code, may not be considered.
173	173	SECTION 9. Subchapter G, Chapter 1551, Insurance Code, is
174	174	amended by adding Section 1551.325 to read as follows:
175	175	Sec. 1551.325. CONTRIBUTIONS AND PAYMENTS FROM CERTAIN
176	176	EMPLOYEES. (a) An employee participating in an involuntary
177	177	furlough program under Section 658.007 or 658.011, Government Code,
178	178	for a period of a month or more shall make the contributions
179	179	required for the coverage selected by the employee, including any
180	180	amount of a salary reduction agreement under a cafeteria plan, as
181	181	required by the trustee.
182	182	(b) The employee is entitled to receive compensation for any
183	183	combination of paid leave, including state compensatory leave,
184	184	overtime leave under the federal Fair Labor Standards Act of 1938
185	185	(29 U.S.C. Section 201 et seq.), sick leave, or annual leave, to the
186	186	extent necessary to make the required contribution.
187	187	SECTION 10. This Act takes effect October 1, 2011.