By: Vasut H.B. No. 1326 A BILL TO BE ENTITLED AN ACT relating to the frequency of pay for state employees. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 659.081, 659.082, and 659.083, Government Code, are amended to read as follows: Sec. 659.081. PAYMENT ONCE A MONTH. Except as provided by this subchapter or the General Appropriations Act, annual salaries for state officers [and employees] shall be paid once a month. Sec. 659.082. PAYMENT TWICE A MONTH. (a) A state [An] employee shall [is entitled to] be paid employment compensation twice a month [if: (1) the employee is employed by: (A) the Texas Department of Mental Health and Mental Retardation; (B) the Texas Department of Transportation; (C) the Texas Department of Human Services; (D) the Texas Workforce Commission; (E) the Department of Public Safety; or (F) any other state agency designated by the comptroller; (2) the employee holds a classified position under the state's position classification plan; (3) the employee's position is classified below salary group Al2 under classification salary Schedule A in the General Appropriations Act; (4) the employing state agency satisfies the comptroller's requirements relating to the payment of compensation twice a month; and (5) at least 30 percent of the eligible employees of the agency choose to be paid twice a month. (b) Employees of an institution of higher education as defined by Section 61.003, Education Code, may be paid twice a month at the election of the employing institution of higher education]. Sec. 659.083. PAYDAY. (a) Except as provided by Subsection (b), the comptroller may not pay the salary of a state officer or employee before the first working day of the month following the payroll period. (b) The comptroller shall pay a state [an] employee [who is paid twice a month under Section 659.082] on: (1) the first working day of the month following the payroll period that covers the last half of the preceding month; and (2) the 15th day of the month or the first working day after the 15th for the payroll period that covers the first half of the month. (c) In this section, "working day" means a day other than Saturday, Sunday, or a national holiday as listed in the General Appropriations Act or Chapter 662. A day does not cease to be a national holiday because a state agency maintains or is required to maintain a minimum working staff on the holiday. SECTION 2. Sections 659.081, 659.082, and 659.083, Government Code, as amended by this Act, apply only to compensation due for services rendered on or after September 1, 2025. Employment compensation due for services rendered prior September 1, 2025, is governed by the law in effect on the date the services were rendered, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2025.