1-1  By:  Mowery, Craddick (Senate Sponsor - Bivins)       H.B. No. 1873
    1-2        (In the Senate - Received from the House May 10, 1993;
    1-3  May 12, 1993, read first time and referred to Committee on Finance;
    1-4  May 22, 1993, reported favorably, as amended, by the following
    1-5  vote:  Yeas 8, Nays 1; May 22, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Montford           x                               
    1-9        Turner                                        x    
   1-10        Armbrister         x                               
   1-11        Barrientos                 x                       
   1-12        Bivins                                        x    
   1-13        Ellis              x                               
   1-14        Haley                                         x    
   1-15        Moncrief           x                               
   1-16        Parker                                        x    
   1-17        Ratliff            x                               
   1-18        Sims               x                               
   1-19        Truan              x                               
   1-20        Zaffirini          x                               
   1-21  COMMITTEE AMENDMENT NO. 1                           By:  Barrientos
   1-22        Amend H.B. No. 1873 as follows:
   1-23        Strike Sections 4 and 5 of the bill and substitute the
   1-24  following:
   1-25        SECTION 4.  The appropriations in the General Appropriations
   1-26  Act for the state's contribution to the tax that state employees
   1-27  and state-paid judges pay under the Federal Insurance Contributions
   1-28  Act for the period beginning January 1, 1994, and ending August 31,
   1-29  1995, are canceled and may not take effect.  The appropriations for
   1-30  the state's matching contribution are not affected by this section.
   1-31        SECTION 5.  (a)  Notwithstanding Chapter 467, Acts of the
   1-32  54th Legislature, 1955 (Article 695h, Vernon's Texas Civil
   1-33  Statutes), as it exists before Sections 1, 2, and 3 of this Act
   1-34  take effect, the state is not obligated to pay any portion of the
   1-35  tax that state employees and state-paid judges are required to pay
   1-36  under the Federal Insurance Contributions Act for persons who were
   1-37  not employed by state agencies or institutions or holding office as
   1-38  state-paid judges on August 31, 1993.
   1-39        (b)  The state is obligated to pay in lieu of a portion of
   1-40  the employee tax required by the Federal Insurance Contributions
   1-41  Act supplemental pay and amounts equal to increased employee
   1-42  retirement contributions as described by Subsection (d) of this
   1-43  section to persons who were employed by state agencies or
   1-44  institutions or holding office as state-paid judges on August 31,
   1-45  1993.
   1-46        (c)  A person who was employed by a state agency or
   1-47  institution or holding office as a state-paid judge on August 31,
   1-48  1993, who remains employed or in office on September 1, 1993, and
   1-49  who leaves state service after that date for less than two years is
   1-50  entitled on return to state service to the supplemental pay and
   1-51  amounts equal to increased employee retirement contributions being
   1-52  paid to state employees earning the same salary who have not left
   1-53  state service after August 31, 1993.
   1-54        (d)  This Act is contingent on the becoming law of an
   1-55  appropriation for the fiscal biennium ending August 31, 1995, made
   1-56  by the 73rd Legislature at its regular session that provides
   1-57  supplemental pay, beginning January 1, 1994, to all persons who
   1-58  were employed by state agencies or institutions or holding office
   1-59  as state-paid judges on August 31, 1993, who were eligible on that
   1-60  date for state payment of employee contributions under Chapter 467,
   1-61  Acts of the 54th Legislature, 1955 (Article 695h, Vernon's Texas
   1-62  Civil Statutes), and who remain employed or in office on September
   1-63  1, 1993, in an amount that equals 5.85 percent of the first $16,500
   1-64  earned in a calendar year, plus an additional amount equal to the
   1-65  increased employee contributions resulting from this Act to the
   1-66  Employees Retirement System of Texas, the Teacher Retirement System
   1-67  of Texas, the optional retirement program governed by Chapter 830,
   1-68  Government Code, the Judicial Retirement System Plan One, and the
    2-1  Judicial Retirement System Plan Two.  A general increase in
    2-2  salaries for state employees and state-paid judges that does not
    2-3  include amounts appropriated specifically to compensate for the
    2-4  reductions in net pay resulting  from Section 4 of this Act does
    2-5  not satisfy the contingency of this subsection.  If legislation
    2-6  described by this subsection does not become law, this Act has no
    2-7  effect.
    2-8        (e)  Except as provided by Subsections (d) and (f) of this
    2-9  section, this Act takes effect January 1, 1994.
   2-10        (f)  This subsection and Subsection (a) of this section take
   2-11  effect September 1, 1993.
   2-12                         A BILL TO BE ENTITLED
   2-13                                AN ACT
   2-14  relating to state employee contributions to the federal old age and
   2-15  survivors insurance program.
   2-16        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   2-17        SECTION 1.  Sections 5(a) and (b), Chapter 467, Acts of the
   2-18  54th Legislature, 1955 (Article 695h, Vernon's Texas Civil
   2-19  Statutes), are amended to read as follows:
   2-20        (a)  As a condition of employment, there is imposed on the
   2-21  services of State employees who are covered by an agreement with
   2-22  the Secretary of Health and Human Services a contribution with
   2-23  respect to wages equal to the amount of the employee tax that would
   2-24  be imposed by the Federal Insurance Contributions Act (26 U.S.C.
   2-25  Section 3101 et seq.) if the services constituted employment within
   2-26  the meaning of that Act.  <Except as provided by Subsection (b) of
   2-27  this section, the State is required to pay all contributions under
   2-28  this program except that portion of the employee tax which would be
   2-29  imposed by the Federal Insurance Contributions Act if such services
   2-30  constituted employment within the meaning of that Act that is in
   2-31  excess of 5.85 percent of wages, such wages not to exceed $16,500
   2-32  in a calendar year.  Except as provided by this subsection, any
   2-33  contributions in excess of 5.85 percent of wages, such wages not to
   2-34  exceed $16,500 in any calendar year, are the obligation of the
   2-35  employee.  The Legislature may provide in the General
   2-36  Appropriations Act for the State payment of employee contributions
   2-37  under this program in excess of the amounts required by this
   2-38  subsection.  The Legislature may provide for payment at any rate
   2-39  equal to or greater than 5.85 percent of wages and payment computed
   2-40  on any wage base equal to or greater than $16,500 a calendar year.
   2-41  If the Legislature provides for State payment of employee
   2-42  contributions in excess of the amounts required by this subsection,
   2-43  a State employee is obligated to pay only the difference between
   2-44  the amount the Legislature provides and the amount required by
   2-45  federal law.>
   2-46        (b)  <Subsection (a) of this section does not apply to
   2-47  State-paid judges.  The State is not required to pay any
   2-48  contributions of State-paid judges under the Federal Insurance
   2-49  Contributions Act.  However, the Legislature may provide in the
   2-50  General Appropriations Act for the State payment of State-paid
   2-51  judges' contributions under the Federal Insurance Contributions Act
   2-52  at any rate and on any amount of State-paid compensation that it
   2-53  considers appropriate.>  There is imposed on the services of
   2-54  State-paid judges who <which> are covered by an agreement with the
   2-55  Secretary of Health and Human Services a contribution with respect
   2-56  to wages (as defined in Section 1(a) of this Act) equal to the
   2-57  amount of the employee tax which would be imposed by the Federal
   2-58  Insurance Contributions Act if such services constituted employment
   2-59  within the meaning of that Act.  <Any contributions in excess of
   2-60  the State payment, if any, prescribed by the General Appropriations
   2-61  Act are the obligations of the State-paid judges.>
   2-62        SECTION 2.  Section 6(b), Chapter 467, Acts of the 54th
   2-63  Legislature, 1955 (Article 695h, Vernon's Texas Civil Statutes), is
   2-64  amended to read as follows:
   2-65        (b)  The collection of the State's contribution shall be made
   2-66  as follows:
   2-67              (1)  The Legislature shall appropriate from the several
   2-68  funds from which the employees benefited by this Act receive their
   2-69  respective salaries, a sum equal to the amount of the contribution
   2-70  to be paid by the State as provided in Section <Sections> 4 <and 5>
    3-1  of this Act for employees whose compensation is paid from funds in
    3-2  the State Treasury.  For wages paid before April 1, 1987, the State
    3-3  Agency shall certify to the Comptroller of Public Accounts at the
    3-4  end of each payroll period the total amount of the State's
    3-5  contributions for that period for employees whose salaries are paid
    3-6  from funds in the State Treasury.  The Comptroller after receipt of
    3-7  the certification shall pay the amount to the State Treasurer as
    3-8  custodian of the Social Security Trust Fund.  The State Treasurer
    3-9  shall deposit the amounts so received in the Social Security Trust
   3-10  Fund.  Certification for wages paid after March 31, 1987, shall be
   3-11  made to, and in a manner prescribed by, the Comptroller of Public
   3-12  Accounts.
   3-13              (2)  Each employing department having employees who are
   3-14  compensated by money appropriated from the State Treasury shall
   3-15  include in the budget information it submits to the Legislative
   3-16  Budget Board and the budget division of the Governor's office a
   3-17  certification of the amount necessary to pay the contributions of
   3-18  the State for the employees for the ensuing biennium.  This amount
   3-19  shall be included in the budget of the State which the Governor
   3-20  submits to the Legislature.
   3-21              (3)  All money appropriated by the State to the Social
   3-22  Security Trust Fund shall be paid to the Fund as required by rule
   3-23  of the State Agency.  After March 31, 1987, all money appropriated
   3-24  to the Comptroller of Public Accounts for the contributions of the
   3-25  State shall be allocated to employing departments as required by
   3-26  rules adopted by the Comptroller.
   3-27              (4)  In those instances in which State employees are
   3-28  paid from funds not in the State Treasury, the department head
   3-29  shall certify to the proper disbursing officer the total amount of
   3-30  the State's contributions based upon compensation paid the
   3-31  employees.  For wages paid before April 1, 1987, the disbursing
   3-32  officer shall pay that amount to the State Treasurer as custodian
   3-33  of the Social Security Trust Fund.  The State Treasurer shall
   3-34  deposit the amounts in the Social Security Trust Fund.  A copy of
   3-35  the department heads' certification in these instances shall be
   3-36  given to the State Agency at the same time the original is
   3-37  certified to the disbursing officer.  These copies shall be on
   3-38  forms prescribed by the State Agency.  For wages paid after March
   3-39  31, 1987, the disbursing officer of each employing department
   3-40  having employees who are compensated by money not in the State
   3-41  Treasury shall pay the total amount of the contributions of the
   3-42  State for the employees in accordance with Federal requirements.
   3-43        SECTION 3.  Section 5(d), Chapter 467, Acts of the 54th
   3-44  Legislature, 1955 (Article 695h, Vernon's Texas Civil Statutes), is
   3-45  repealed.
   3-46        SECTION 4.  The appropriations in the General Appropriations
   3-47  Act for fiscal years 1994 and 1995 for the state's contribution to
   3-48  the tax that state employees and state-paid judges pay under the
   3-49  Federal Insurance Contributions Act are canceled and may not take
   3-50  effect.  The appropriations for the state's matching contribution
   3-51  are not affected by this section.
   3-52        SECTION 5.  (a)  Except as provided by Subsection (b) of this
   3-53  section, this Act takes effect September 1, 1993, and applies only
   3-54  to payments of salaries and wages that are made for services
   3-55  rendered on or after that date.
   3-56        (b)  This Act is contingent on the becoming law of an
   3-57  appropriation for the fiscal biennium ending August 31, 1995, made
   3-58  by the 73rd Legislature at its regular session that provides
   3-59  supplemental pay to all persons who were employed by state agencies
   3-60  or institutions on August 31, 1993, who were eligible on that date
   3-61  for state payment of employee contributions under Chapter 467, Acts
   3-62  of the 54th Legislature, 1955 (Article 695h, Vernon's Texas Civil
   3-63  Statutes), and who remain employed on September 1, 1993, in an
   3-64  amount that equals 5.85 percent of the first $16,500 earned in a
   3-65  calendar year, plus an additional amount equal to the increased
   3-66  employee contributions resulting from this Act to the Employees
   3-67  Retirement System of Texas, the Teacher Retirement System of Texas,
   3-68  the optional retirement program governed by Chapter 830, Government
   3-69  Code, the Judicial Retirement System Plan One, and the Judicial
   3-70  Retirement System Plan Two.  A general increase in salaries for
    4-1  state employees and state-paid judges that does not include amounts
    4-2  appropriated specifically to compensate for the reductions in net
    4-3  pay resulting from Section 4 of this Act does not satisfy the
    4-4  contingency of this subsection.  If legislation described by this
    4-5  subsection does not become law, this Act has no effect.
    4-6        SECTION 6.  The importance of this legislation and the
    4-7  crowded condition of the calendars in both houses create an
    4-8  emergency and an imperative public necessity that the
    4-9  constitutional rule requiring bills to be read on three several
   4-10  days in each house be suspended, and this rule is hereby suspended.
   4-11                               * * * * *
   4-12                                                         Austin,
   4-13  Texas
   4-14                                                         May 22, 1993
   4-15  Hon. Bob Bullock
   4-16  President of the Senate
   4-17  Sir:
   4-18  We, your Committee on Finance to which was referred H.B. No. 1873,
   4-19  have had the same under consideration, and I am instructed to
   4-20  report it back to the Senate with the recommendation that it do
   4-21  pass, as amended, and be printed.
   4-22                                                         Montford,
   4-23  Chairman
   4-24                               * * * * *
   4-25                               WITNESSES
   4-26                                                  FOR   AGAINST  ON
   4-27  ___________________________________________________________________
   4-28  Name:  Bill Warren                               x
   4-29  Representing:  TX. Public Employees Assoc.
   4-30  City:  Austin
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   4-32  Name:  Travis Donoho                                     x
   4-33  Representing:  TX. State Employees Union
   4-34  City:  Austin
   4-35  -------------------------------------------------------------------
   4-36  Name:  Dr. Charles Zucker                                x
   4-37  Representing:  Texas Faculty Assoc.
   4-38  City:  Austin
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