By:  Bivins                                            S.B. No. 102
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to state employee contributions to the federal old age and
    1-2  survivors insurance program.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 606.064, Government Code, is amended to
    1-5  read as follows:
    1-6        Sec. 606.064.  EMPLOYEE CONTRIBUTIONS <BY STATE AGENCY>.
    1-7  (a)  Each state employee, including a judge paid by the state, for
    1-8  whom an agreement for social security coverage is in effect under
    1-9  this subchapter shall pay contributions on wages in the amount of
   1-10  the employee tax.  <The state shall pay all contributions on wages
   1-11  for social security coverage of a state employee except:>
   1-12              <(1)  as provided by Section 606.065; or>
   1-13              <(2)  the amount of the employee tax in excess of 5.85
   1-14  percent of wages computed on a wage base of $16,500 in a calendar
   1-15  year.>
   1-16        (b)  The obligation provided by this section is a condition
   1-17  of employment or of holding office.  <The legislature may provide
   1-18  in the General Appropriations Act for a state contribution in
   1-19  excess of the amount provided in Subsection (a)(2).>
   1-20        <(c)  A state employee is obligated to pay only the
   1-21  difference between the amount the legislature provides and the
   1-22  amount required by federal law.>
   1-23        <(d)  The contribution made by the state shall be paid from
   1-24  the same fund from which an employee receives compensation.>
    2-1        <(e)  The comptroller may prorate the state's expected
    2-2  contribution for an employee's employee tax over the portion of the
    2-3  calendar year that the employee's salary is subject to the Federal
    2-4  Insurance Contributions Act to equalize the employee's monthly
    2-5  contributions during the portion of the year that the employee's
    2-6  salary is subject to Federal Insurance Contributions Act taxes.>
    2-7        SECTION 2.  Subsection (a), Section 606.067, Government Code,
    2-8  is amended to read as follows:
    2-9        (a)  For a state employee who is paid from the state
   2-10  treasury, the legislature shall appropriate, from the same fund
   2-11  from which the employee is paid, an amount equal to the <total of
   2-12  the> state's contributions under Section 606.063 <and Section
   2-13  606.064 or 606.065>.
   2-14        SECTION 3.  Section 606.065, Government Code, is repealed.
   2-15        SECTION 4.  The appropriations in the General Appropriations
   2-16  Act for the state's contribution to the tax that state employees
   2-17  and state-paid judges pay under the Federal Insurance Contributions
   2-18  Act for the period beginning January 1, 1996, and ending August 31,
   2-19  1997, are canceled and may not take effect.  The appropriations for
   2-20  the state's matching contribution are not affected by this section.
   2-21        SECTION 5.  (a)  Notwithstanding Chapter 606, Government
   2-22  Code, as it exists before Sections 1, 2, and 3 of this Act take
   2-23  effect, the state is not obligated to pay any portion of the tax
   2-24  that state employees and state-paid judges are required to pay
   2-25  under the Federal Insurance Contributions Act for persons who were
   2-26  not employed by state agencies or institutions or holding office as
   2-27  state-paid judges on August 31, 1995.
    3-1        (b)  The state is obligated to pay in lieu of a portion of
    3-2  the employee tax required by the Federal Insurance Contributions
    3-3  Act supplemental pay and amounts equal to increased employee
    3-4  retirement contributions as described by Subsection (d) of this
    3-5  section to persons who were employed by state agencies or
    3-6  institutions or holding office as state-paid judges on August 31,
    3-7  1995.
    3-8        (c)  A person who was employed by a state agency or
    3-9  institution or holding office as a state-paid judge on August 31,
   3-10  1995, who remains employed or in office on September 1, 1995, and
   3-11  who leaves state service after that date for less than two years is
   3-12  entitled on return to state service to the supplemental pay and
   3-13  amounts equal to increased employee retirement contributions being
   3-14  paid to state employees earning the same salary who have not left
   3-15  state service after August 31, 1995.
   3-16        (d)  This Act is contingent on the becoming law of an
   3-17  appropriation for the fiscal biennium ending August 31, 1997, made
   3-18  by the 74th Legislature at its regular session that provides
   3-19  supplemental pay, beginning January 1, 1996, to all persons who
   3-20  were employed by state agencies or institutions or holding office
   3-21  as state-paid judges on August 31, 1995, who were eligible on that
   3-22  date for state payment of employee contributions under Chapter 606,
   3-23  Government Code, and who remain employed or in office on September
   3-24  1, 1995, in an amount that equals 5.85 percent of the first $16,500
   3-25  earned in a calendar year, plus an additional amount equal to the
   3-26  increased employee contributions resulting from this Act to the
   3-27  Employees Retirement System of Texas, the Teacher Retirement System
    4-1  of Texas, the optional retirement program governed by Chapter 830,
    4-2  Government Code, the Judicial Retirement System Plan One, and the
    4-3  Judicial Retirement System Plan Two.  A general increase in
    4-4  salaries for state employees and state-paid judges that does not
    4-5  include amounts appropriated specifically to compensate for the
    4-6  reductions in net pay resulting from Section 4 of this Act does not
    4-7  satisfy the contingency of this subsection.  Before January 1,
    4-8  1996, the comptroller of public accounts shall determine whether an
    4-9  appropriation described by this section has become law and publish
   4-10  a finding in that regard in the Texas Register.  If an
   4-11  appropriation described by this subsection does not become law, as
   4-12  determined by the comptroller, this Act has no effect.
   4-13        (e)  Except as provided by Subsection (f) of this section,
   4-14  this Act takes effect January 1, 1996.
   4-15        (f)  This subsection and Subsections (a) and (d) of this
   4-16  section take effect September 1, 1995.
   4-17        SECTION 6.  The importance of this legislation and the
   4-18  crowded condition of the calendars in both houses create an
   4-19  emergency and an imperative public necessity that the
   4-20  constitutional rule requiring bills to be read on three several
   4-21  days in each house be suspended, and this rule is hereby suspended.