Bill Text: TX HB30 | 2011 | 82nd Legislature 1st Special | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
By: Callegari | 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 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, [ |
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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 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. |