Bill Text: TX HB30 | 2011 | 82nd Legislature 1st Special | Comm Sub

Texas House Bill 30 (Prior Session Legislation)

Bill Title: Relating to unpaid furloughs for state employees.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-06-20 - Committee report sent to Calendars [HB30 Detail]

Download: Texas-2011-HB30-Comm_Sub.html

	82S10565 MCK-D

	By: Callegari	H.B. No. 30

	Substitute the following for H.B. No. 30:

	By: Callegari	C.S.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 Subsections (c), (d), and (e) 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.
	(d) Sections 658.011(e)-(g) apply to a mandatory furlough
	or work reduction program adopted by an institution of higher
	education under Subsection (c).
	(e) An individual participating in an involuntary furlough
	or work reduction program who receives benefits under Chapter 1601,
	Insurance Code, remains eligible for benefits in accordance with
	rules adopted by the applicable system as defined by Section
	1601.003, Insurance Code.
	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. 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. 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 5. 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 6. Section 822.201(b), Government Code, is amended
	to read as follows:
	(b) "Salary and wages" as used in Subsection (a) means:
	(1) normal periodic payments of money for service the
	right to which accrues on a regular basis in proportion to the
	service performed;
	(2) amounts by which the member's salary is reduced
	under a salary reduction agreement authorized by Chapter 610;
	(3) amounts that would otherwise qualify as salary and
	wages under Subdivision (1) but are not received directly by the
	member 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, if:
	(A) the program or benefit options are made
	available to all employees of the employer; and
	(B) the benefit options in the cafeteria plan are
	limited to one or more options that provide deferred compensation,
	group health and disability insurance, group term life insurance,
	dependent care assistance programs, or group legal services plans;
	(4) performance pay awarded to an employee by a school
	district as part of a total compensation plan approved by the board
	of trustees of the district and meeting the requirements of
	Subsection (e);
	(5) the benefit replacement pay a person earns under
	Subchapter H, Chapter 659, except as provided by Subsection (c);
	(6) stipends paid to teachers in accordance with
	Section 21.410, 21.411, 21.412, or 21.413, Education Code;
	(7) amounts by which the member's salary is reduced or
	that are deducted from the member's salary as authorized by
	Subchapter J, Chapter 659;
	(8) a merit salary increase made under Section 51.962,
	Education Code;
	(9) amounts received under the relevant parts of the
	educator excellence awards program under Subchapter O, Chapter 21,
	Education Code, or a mentoring program under Section 21.458,
	Education Code, that authorize compensation for service;
	(10) salary amounts designated as health care
	supplementation by an employee under Subchapter D, Chapter 22,
	Education Code; [~~and~~]
	(11) to the extent required by Sections 3401(h) and
	414(u)(2), Internal Revenue Code of 1986, differential wage
	payments received by an individual from an employer on or after
	January 1, 2009, while the individual is performing qualified
	military service as defined by Section 414(u), Internal Revenue
	Code of 1986; and
	(12) amounts by which a person's salary is reduced
	under an involuntary furlough or work reduction program under
	Section 658.007.
	SECTION 7. 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
	658.007 or 658.011, Government Code.
	SECTION 8. 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
	658.007 or 658.011, Government Code, may not be considered.
	SECTION 9. 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 658.007 or 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 10. This Act takes effect October 1, 2011.