Bill Text: TX HB30 | 2011 | 82nd Legislature 1st Special | Comm Sub
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 | ||
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| 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, [ |
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| 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; [ |
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| (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. | ||
