By Seidlits                                            H.B. No. 903
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to credit union payroll deductions for state employees.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article 6813g, Revised Statutes, is amended to
    1-5  read as follows:
    1-6        Art. 6813g.  Deductions for supplemental benefits for state
    1-7  employees
    1-8        Sec. 1.  Definitions.  In this article "state agency" means a
    1-9  department, commission, board, office, or other agency of any
   1-10  branch of state government, including an institution of higher
   1-11  education as defined by Section 61.003, Education Code.
   1-12        Sec. 2.  Deduction authorized.  In addition to deductions for
   1-13  coverage under the Texas Employees Uniform Group Insurance Benefits
   1-14  Act (Article 3.50-2, Vernon's Texas Insurance Code) or other law,
   1-15  an employee of a state agency may authorize in writing a deduction
   1-16  each pay period from the employee's salary or wage payment for
   1-17  coverage of the employee under a supplemental optional benefits
   1-18  program, including a program of permanent life insurance,
   1-19  catastrophic illness insurance, disability insurance, or prepaid
   1-20  legal services, that may be made if the program has been approved
   1-21  by the Employees Retirement System of Texas under Section 3 of this
   1-22  article.  An employee may also authorize a deduction for payment to
   1-23  a credit union to be credited to an account of that employee.  The
    2-1  written authorization must direct the comptroller or, if
    2-2  applicable, the appropriate financial officer of an institution of
    2-3  higher education to transfer the withheld funds to the program
    2-4  designated by the employee.  The comptroller or financial officer
    2-5  shall comply with the direction.
    2-6        Sec. 3.  Eligible Program.  The Employees Retirement System
    2-7  of Texas shall designate supplemental benefit programs that are
    2-8  eligible to receive deductions under Section 2 of this article and
    2-9  that promote the interests of the state and state agency employees.
   2-10  No designation is necessary for credit union deductions.
   2-11        Sec. 4.  Form; Duration.  (a)  The payroll deduction must be
   2-12  accomplished in a form and manner prescribed by the comptroller or
   2-13  the appropriate financial officer of an institution of higher
   2-14  education.
   2-15        (b)  The employee or the employee's designee may change or
   2-16  revoke the deduction authorization by delivering written notice of
   2-17  the change or revocation to the comptroller or financial officer,
   2-18  as appropriate.  The authorization is effective until the date the
   2-19  comptroller or financial officer receives the notice.  The notice
   2-20  must be given in a form and manner prescribed by the comptroller or
   2-21  financial officer.
   2-22        Sec. 5.  Voluntary participation.  Participation by employees
   2-23  in the program authorized by this article is voluntary.
   2-24        Sec. 6.  Administrative fee.  The state may withhold from the
   2-25  employee's salary or wage payment an administrative fee for making
    3-1  the deduction under this article.  The fee may not exceed the
    3-2  actual administrative cost of making the deduction or the highest
    3-3  fee charged by the state for making a similar deduction, whichever
    3-4  amount is less.
    3-5        SECTION 2.  The importance of this legislation and the
    3-6  crowded condition of the calendars in both houses create an
    3-7  emergency and an imperative public necessity that the
    3-8  constitutional rule requiring bills to be read on three several
    3-9  days in each house be suspended, and this rule is hereby suspended,
   3-10  and that this Act take effect and be in force from and after its
   3-11  passage, and it is so enacted.