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
4-31 -------------------------------------------------------------------
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
4-39 -------------------------------------------------------------------