By: Mowery H.B. No. 1873
73R6259 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state employee contributions to the federal old age and
1-3 survivors insurance program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 5(a) and (b), Chapter 467, Acts of the
1-6 54th Legislature, 1955 (Article 695h, Vernon's Texas Civil
1-7 Statutes), are amended to read as follows:
1-8 (a) As a condition of employment, there is imposed on the
1-9 services of State employees who are covered by an agreement with
1-10 the Secretary of Health and Human Services a contribution with
1-11 respect to wages equal to the amount of the employee tax that would
1-12 be imposed by the Federal Insurance Contributions Act (26 U.S.C.
1-13 Section 3101 et seq.) if the services constituted employment within
1-14 the meaning of that Act. <Except as provided by Subsection (b) of
1-15 this section, the State is required to pay all contributions under
1-16 this program except that portion of the employee tax which would be
1-17 imposed by the Federal Insurance Contributions Act if such services
1-18 constituted employment within the meaning of that Act that is in
1-19 excess of 5.85 percent of wages, such wages not to exceed $16,500
1-20 in a calendar year. Except as provided by this subsection, any
1-21 contributions in excess of 5.85 percent of wages, such wages not to
1-22 exceed $16,500 in any calendar year, are the obligation of the
1-23 employee. The Legislature may provide in the General
1-24 Appropriations Act for the State payment of employee contributions
2-1 under this program in excess of the amounts required by this
2-2 subsection. The Legislature may provide for payment at any rate
2-3 equal to or greater than 5.85 percent of wages and payment computed
2-4 on any wage base equal to or greater than $16,500 a calendar year.
2-5 If the Legislature provides for State payment of employee
2-6 contributions in excess of the amounts required by this subsection,
2-7 a State employee is obligated to pay only the difference between
2-8 the amount the Legislature provides and the amount required by
2-9 federal law.>
2-10 (b) <Subsection (a) of this section does not apply to
2-11 State-paid judges. The State is not required to pay any
2-12 contributions of State-paid judges under the Federal Insurance
2-13 Contributions Act. However, the Legislature may provide in the
2-14 General Appropriations Act for the State payment of State-paid
2-15 judges' contributions under the Federal Insurance Contributions Act
2-16 at any rate and on any amount of State-paid compensation that it
2-17 considers appropriate.> There is imposed on the services of
2-18 State-paid judges who <which> are covered by an agreement with the
2-19 Secretary of Health and Human Services a contribution with respect
2-20 to wages (as defined in Section 1(a) of this Act) equal to the
2-21 amount of the employee tax which would be imposed by the Federal
2-22 Insurance Contributions Act if such services constituted employment
2-23 within the meaning of that Act. <Any contributions in excess of
2-24 the State payment, if any, prescribed by the General Appropriations
2-25 Act are the obligations of the State-paid judges.>
2-26 SECTION 2. Section 6(b), Chapter 467, Acts of the 54th
2-27 Legislature, 1955 (Article 695h, Vernon's Texas Civil Statutes), is
3-1 amended to read as follows:
3-2 (b) The collection of the State's contribution shall be made
3-3 as follows:
3-4 (1) The Legislature shall appropriate from the several
3-5 funds from which the employees benefited by this Act receive their
3-6 respective salaries, a sum equal to the amount of the contribution
3-7 to be paid by the State as provided in Section <Sections> 4 <and 5>
3-8 of this Act for employees whose compensation is paid from funds in
3-9 the State Treasury. For wages paid before April 1, 1987, the State
3-10 Agency shall certify to the Comptroller of Public Accounts at the
3-11 end of each payroll period the total amount of the State's
3-12 contributions for that period for employees whose salaries are paid
3-13 from funds in the State Treasury. The Comptroller after receipt of
3-14 the certification shall pay the amount to the State Treasurer as
3-15 custodian of the Social Security Trust Fund. The State Treasurer
3-16 shall deposit the amounts so received in the Social Security Trust
3-17 Fund. Certification for wages paid after March 31, 1987, shall be
3-18 made to, and in a manner prescribed by, the Comptroller of Public
3-19 Accounts.
3-20 (2) Each employing department having employees who are
3-21 compensated by money appropriated from the State Treasury shall
3-22 include in the budget information it submits to the Legislative
3-23 Budget Board and the budget division of the Governor's office a
3-24 certification of the amount necessary to pay the contributions of
3-25 the State for the employees for the ensuing biennium. This amount
3-26 shall be included in the budget of the State which the Governor
3-27 submits to the Legislature.
4-1 (3) All money appropriated by the State to the Social
4-2 Security Trust Fund shall be paid to the Fund as required by rule
4-3 of the State Agency. After March 31, 1987, all money appropriated
4-4 to the Comptroller of Public Accounts for the contributions of the
4-5 State shall be allocated to employing departments as required by
4-6 rules adopted by the Comptroller.
4-7 (4) In those instances in which State employees are
4-8 paid from funds not in the State Treasury, the department head
4-9 shall certify to the proper disbursing officer the total amount of
4-10 the State's contributions based upon compensation paid the
4-11 employees. For wages paid before April 1, 1987, the disbursing
4-12 officer shall pay that amount to the State Treasurer as custodian
4-13 of the Social Security Trust Fund. The State Treasurer shall
4-14 deposit the amounts in the Social Security Trust Fund. A copy of
4-15 the department heads' certification in these instances shall be
4-16 given to the State Agency at the same time the original is
4-17 certified to the disbursing officer. These copies shall be on
4-18 forms prescribed by the State Agency. For wages paid after March
4-19 31, 1987, the disbursing officer of each employing department
4-20 having employees who are compensated by money not in the State
4-21 Treasury shall pay the total amount of the contributions of the
4-22 State for the employees in accordance with Federal requirements.
4-23 SECTION 3. Section 5(d), Chapter 467, Acts of the 54th
4-24 Legislature, 1955 (Article 695h, Vernon's Texas Civil Statutes), is
4-25 repealed.
4-26 SECTION 4. This Act takes effect September 1, 1993.
4-27 SECTION 5. The importance of this legislation and the
5-1 crowded condition of the calendars in both houses create an
5-2 emergency and an imperative public necessity that the
5-3 constitutional rule requiring bills to be read on three several
5-4 days in each house be suspended, and this rule is hereby suspended.