By Armbrister                                          S.B. No. 670
          Substitute the following for S.B. No. 670:
          By Eiland                                          C.S.S.B. No. 670
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to expenses of state agencies and the compensation,
    1-3  expenses, and conditions of employment of state officers,
    1-4  employees, and other workers.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subsection (c), Section 659.083, Government Code,
    1-7  is amended to read as follows:
    1-8        (c)  In this section, "working day" means a day other than
    1-9  Saturday, Sunday, or a national holiday<, or a state holiday> as
   1-10  listed in the General Appropriations Act or Chapter 662.  A day
   1-11  does not cease to be a national holiday because a state agency
   1-12  maintains or is required to maintain a minimum working staff on the
   1-13  holiday.
   1-14        SECTION 2.  Sections 2254.021 and 2254.022, Government Code,
   1-15  are amended to read as follows:
   1-16        Sec. 2254.021.  DEFINITIONS.  In this subchapter:
   1-17              (1)  "Consulting service" means the service of studying
   1-18  or advising a state agency under a contract that does not involve
   1-19  the traditional relationship of employer and employee.
   1-20              (2)  "Major consulting services contract" means a
   1-21  consulting services contract for which it is reasonably foreseeable
   1-22  that the value of the contract will exceed $10,000.
   1-23              (3)  "Consultant" <"Private consultant"> means a person
   1-24  that provides or proposes to provide a consulting service.  The
    2-1  term includes the federal government but does not include a state
    2-2  agency or a state governmental entity.
    2-3              (4)  "State agency" has the meaning assigned by Section
    2-4  1.02, State Purchasing and General Services Act (Article 601b,
    2-5  Vernon's Texas Civil Statutes).
    2-6              (5)  "State governmental entity" means a state
    2-7  department, commission, board, office, institution, facility, or
    2-8  other agency the jurisdiction of which is not limited to a
    2-9  geographical portion of the state.  The term includes a university
   2-10  system and an institution of higher education, other than a public
   2-11  junior college, as those terms are defined by Section 61.003,
   2-12  Education Code.
   2-13        Sec. 2254.022.  INTERPRETATION OF SUBCHAPTER.  (a)  This
   2-14  subchapter shall be interpreted to ensure:
   2-15              (1)  the greatest and fairest competition in the
   2-16  selection by state agencies of <private> consultants; and
   2-17              (2)  the giving of notice to all potential <private>
   2-18  consultants of the need for and opportunity to provide consulting
   2-19  services.
   2-20        (b)  This subchapter does not:
   2-21              (1)  discourage state agencies from using <private>
   2-22  consultants if the agencies reasonably foresee that the use of
   2-23  <private> consultants will produce a more efficient and less costly
   2-24  operation or project;
   2-25              (2)  prohibit the making of a sole-source contract for
   2-26  consulting services if a proposal is not received from a competent,
   2-27  knowledgeable, and qualified <private> consultant at a reasonable
    3-1  fee, after compliance with this subchapter; or
    3-2              (3)  require or prohibit the use of competitive bidding
    3-3  procedures to purchase consulting services.
    3-4        SECTION 3.  Subsections (a), (b), and (e), Section 2254.025,
    3-5  Government Code, are amended to read as follows:
    3-6        (a)  The governor, after receipt of a request complying with
    3-7  this section, may grant a limited waiver of the provisions of this
    3-8  subchapter for a state agency that requires <private> consulting
    3-9  services before compliance with this subchapter can be completed
   3-10  because of an unforeseen emergency.
   3-11        (b)  A state agency's request for a waiver must include
   3-12  information required by the governor, including:
   3-13              (1)  information about the nature of the emergency;
   3-14              (2)  the reason that the state agency did not foresee
   3-15  the emergency;
   3-16              (3)  the name of the <private> consultant with whom the
   3-17  agency intends to contract; and
   3-18              (4)  the amount of the intended contract.
   3-19        (e)  In this section, "unforeseen emergency" means a
   3-20  situation that suddenly and unexpectedly causes a state agency to
   3-21  need the services of a <private> consultant.  The term includes the
   3-22  issuance of a court order, an actual or imminent natural disaster,
   3-23  and new state or federal legislation.  An emergency is not
   3-24  unforeseen if a state agency was negligent in foreseeing the
   3-25  occurrence of the emergency.
   3-26        SECTION 4.  Sections 2254.026 and 2254.027, Government Code,
   3-27  are amended to read as follows:
    4-1        Sec. 2254.026.  CONTRACT WITH <PRIVATE> CONSULTANT.  A state
    4-2  agency may contract with a <private> consultant only if:
    4-3              (1)  there is a substantial need for the consulting
    4-4  services; and
    4-5              (2)  the agency cannot adequately perform the services
    4-6  with its own personnel or obtain the consulting services through a
    4-7  contract with a <another> state governmental entity <agency>.
    4-8        Sec. 2254.027.  SELECTION OF <PRIVATE> CONSULTANT.  In
    4-9  selecting a <private> consultant, a state agency shall:
   4-10              (1)  base its choice on demonstrated competence,
   4-11  knowledge, and qualifications and on the reasonableness of the
   4-12  proposed fee for the services; and
   4-13              (2)  if other considerations are equal, give preference
   4-14  to a <private> consultant whose principal place of business is in
   4-15  the state or who will manage the consulting contract wholly from an
   4-16  office in the state.
   4-17        SECTION 5.  Subsection (a), Section 2254.028, Government
   4-18  Code, is amended to read as follows:
   4-19        (a)  Before entering into a major consulting services
   4-20  contract, a state agency shall:
   4-21              (1)  notify the Legislative Budget Board and the
   4-22  governor's Budget and Planning Office that the agency intends to
   4-23  contract with a <private> consultant;
   4-24              (2)  give information to the Legislative Budget Board
   4-25  and the governor's Budget and Planning Office to demonstrate that
   4-26  the agency has complied or will comply with Sections 2254.026 and
   4-27  2254.027; and
    5-1              (3)  obtain a finding of fact from the governor's
    5-2  Budget and Planning Office that the consulting services are
    5-3  necessary.
    5-4        SECTION 6.  Sections 2254.029 and 2254.030, Government Code,
    5-5  are amended to read as follows:
    5-6        Sec. 2254.029.  PUBLICATION IN TEXAS REGISTER BEFORE ENTERING
    5-7  INTO MAJOR CONSULTING SERVICES CONTRACT.  (a)  Not later than the
    5-8  30th day before the date it enters into a major consulting services
    5-9  contract, a state agency shall file with the secretary of state for
   5-10  publication in the Texas Register:
   5-11              (1)  an invitation for <private> consultants to provide
   5-12  offers of consulting services;
   5-13              (2)  the name of the individual who should be contacted
   5-14  by a <private> consultant that intends to make an offer;
   5-15              (3)  the closing date for the receipt of offers; and
   5-16              (4)  the procedure by which the state agency will award
   5-17  the contract.
   5-18        (b)  If the consulting services sought by a state agency
   5-19  relate to services previously provided by a <private> consultant,
   5-20  the agency shall disclose that fact in the invitation required by
   5-21  Subsection (a).  If the state agency intends to award the contract
   5-22  for the consulting services to a <private> consultant that
   5-23  previously provided the services, unless a better offer is
   5-24  received, the agency shall disclose its intention in the invitation
   5-25  required by Subsection (a).
   5-26        Sec. 2254.030.  PUBLICATION IN TEXAS REGISTER AFTER ENTERING
   5-27  INTO MAJOR CONSULTING SERVICES CONTRACT.  Not later than the 10th
    6-1  day after the date of entering into a major consulting services
    6-2  contract, the state agency shall file with the secretary of state
    6-3  for publication in the Texas Register:
    6-4              (1)  a description of the activities that the <private>
    6-5  consultant will conduct;
    6-6              (2)  the name and business address of the <private>
    6-7  consultant;
    6-8              (3)  the total value and the beginning and ending dates
    6-9  of the contract; and
   6-10              (4)  the dates on which documents, films, recordings,
   6-11  or reports that the <private> consultant is required to present to
   6-12  the agency are due.
   6-13        SECTION 7.  Subsections (a) and (b), Section 2254.036,
   6-14  Government Code, are amended to read as follows:
   6-15        (a)  On request, a state agency shall, after the agency's
   6-16  contract with a <private> consultant has ended, supply the
   6-17  Legislative Budget Board and the governor's Budget and Planning
   6-18  Office with copies of all documents, films, recordings, or reports
   6-19  compiled by the consultant under the contract.
   6-20        (b)  Copies of all documents, films, recordings, or reports
   6-21  compiled by the <private> consultant shall be filed with the Texas
   6-22  State Library and shall be retained by the library for at least
   6-23  five years.
   6-24        SECTION 8.  Section 2254.037, Government Code, is amended to
   6-25  read as follows:
   6-26        Sec. 2254.037.  REPORTS.  As part of the biennial budgetary
   6-27  hearing process conducted by the Legislative Budget Board and the
    7-1  governor's Budget and Planning Office, a state agency shall report
    7-2  to the Legislative Budget Board and the governor's Budget and
    7-3  Planning Office on any actions taken in response to the
    7-4  recommendations of any <private> consultant with whom the state
    7-5  agency contracts during the previous biennium.
    7-6        SECTION 9.  Subchapter B, Chapter 403, Government Code, is
    7-7  amended by adding Section 403.024 to read as follows:
    7-8        Sec. 403.024.  RULES.  (a)  The comptroller may adopt rules
    7-9  to interpret, implement, and administer a state statute if:
   7-10              (1)  the statute specifically authorizes or requires
   7-11  the comptroller to interpret, implement, or administer the statute;
   7-12  or
   7-13              (2)  the comptroller determines that the rules are
   7-14  necessary for fulfillment of the comptroller's constitutional or
   7-15  statutory duties.
   7-16        (b)  Subsection (a) does not apply to a state statute if  the
   7-17  statute specifically authorizes the comptroller or a state agency
   7-18  to adopt rules to interpret, implement, and administer the statute.
   7-19        SECTION 10.  Subdivision (2), Subsection (d), Section
   7-20  481.0841, Government Code, is amended to read as follows:
   7-21              (2)  A state agency may not use funds inside or outside
   7-22  the state treasury to pay a user if the <agency knows that the>
   7-23  user is in default on a loan guaranteed under this subchapter and
   7-24  with respect to which the department has been required to honor a
   7-25  guarantee.
   7-26        SECTION 11.  Subsection (e), Section 57.48, Education Code,
   7-27  is amended to read as follows:
    8-1        (e)  This section does not prohibit the comptroller from
    8-2  issuing a warrant to pay the compensation of:
    8-3              (1)  a state officer or employee; or
    8-4              (2)  an individual whose compensation is being paid by
    8-5  a private person through a state agency.
    8-6        SECTION 12.  Subdivision (4), Subsection (f), Section 57.48,
    8-7  Education Code, is amended to read as follows:
    8-8              (4)  This subsection does not prohibit a state agency
    8-9  from paying the compensation of:
   8-10                    (A)  a state officer or employee; or
   8-11                    (B)  an individual whose compensation is being
   8-12  paid by a private person through the agency.
   8-13        SECTION 13.  Subsection (c), Section 403.055, Government
   8-14  Code, is amended to read as follows:
   8-15        (c)  This section does not prohibit the comptroller from
   8-16  issuing a warrant to pay the compensation of:
   8-17              (1)  a state officer or employee; or
   8-18              (2)  an individual whose compensation is being paid by
   8-19  a private person through a state agency.
   8-20        SECTION 14.  Subdivision (4), Subsection (e), Section
   8-21  403.055, Government Code, is amended to read as follows:
   8-22              (4)  This subsection does not prohibit a state agency
   8-23  from paying the compensation of:
   8-24                    (A)  a state officer or employee; or
   8-25                    (B)  an individual whose compensation is being
   8-26  paid by a private person through the agency.
   8-27        SECTION 15.  Subsection (c), Section 481.0841, Government
    9-1  Code, is amended to read as follows:
    9-2        (c)  This section does not prohibit the comptroller from
    9-3  issuing a warrant or initiating an electronic funds transfer to pay
    9-4  the compensation of:
    9-5              (1)  a state officer or employee; or
    9-6              (2)  an individual whose compensation is being paid by
    9-7  a private person through a state agency.
    9-8        SECTION 16.  Subdivision (4), Subsection (d), Section
    9-9  481.0841, Government Code, is amended to read as follows:
   9-10              (4)  This subsection does not prohibit a state agency
   9-11  from paying the compensation of:
   9-12                    (A)  a state officer or employee; or
   9-13                    (B)  an individual whose compensation is being
   9-14  paid by a private person through the agency.
   9-15        SECTION 17.  Section 403.252, Government Code, is amended to
   9-16  read as follows:
   9-17        Sec. 403.252.  Exceptions.  This subchapter does not apply
   9-18  to:
   9-19              (1)  state agency funds located completely outside the
   9-20  state treasury;
   9-21              (2)  the petty cash accounts maintained by the Texas
   9-22  Department of Mental Health and Mental Retardation under Section
   9-23  533.037(d)(4), Health and Safety Code; <2.17(b)(3), Texas Mental
   9-24  Health and Mental Retardation Act (Article 5547-202, Vernon's Texas
   9-25  Civil Statutes); or>
   9-26              (3)  imprest funds kept by enforcement agencies for the
   9-27  purchase of evidence or other enforcement purposes; or
   10-1              (4)  petty cash accounts expressly provided for by the
   10-2  legislature in the General Appropriations Act.
   10-3        SECTION 18.  Sections 662.001, 662.005, and 662.006,
   10-4  Government Code, are amended to read as follows:
   10-5        Sec. 662.001.  DEFINITIONS.  In this subchapter:
   10-6              (1)  "Part-time state employee" means a state employee
   10-7  who normally works fewer <less> than 40 hours each week.
   10-8              (2)  "State agency" means a unit of state government,
   10-9  including a state board, commission, council, department,
  10-10  committee, agency, or office that was created by the constitution
  10-11  or a statute of this state and is in any branch of state
  10-12  government.  The term does not include a local government, a river
  10-13  authority, a special district, any other political subdivision, or
  10-14  an institution of higher education as defined by Section 61.003,
  10-15  Education Code.
  10-16              (3)  "State employee" means an employee of a state
  10-17  agency or an appointed officer of a state agency whose office is
  10-18  not created by the state constitution.  The term includes a
  10-19  part-time, hourly, or temporary state employee.
  10-20              (4)  "Workday" means a day on which a state employee is
  10-21  normally scheduled to work.  The term does not include a national
  10-22  or state holiday.
  10-23        Sec. 662.005.  ENTITLEMENT TO PAID DAY OFF.  (a)  An
  10-24  individual who is a <A> state employee on the last workday before
  10-25  or the first workday after a national or state holiday, or on both
  10-26  workdays, is entitled, except as provided by Section 662.010, to a
  10-27  paid day off from working for a state agency <work> on the <each
   11-1  national or state> holiday if:
   11-2              (1)  the holiday <that> does not fall on a Saturday  or
   11-3  Sunday; and
   11-4              (2)  the General Appropriations Act does not prohibit
   11-5  state agencies from observing the holiday.
   11-6        (b)  In this <This> section, "state employee":
   11-7              (1)  includes an individual who uses paid leave from a
   11-8  state agency; and
   11-9              (2)  does not include an individual who uses unpaid
  11-10  leave from a state agency <does not apply to a holiday that the
  11-11  General Appropriations Act prohibits state agencies from
  11-12  observing>.
  11-13        Sec. 662.006.  OPTIONAL HOLIDAY.  (a)  An individual who is a
  11-14  <A> state employee on the last workday before or the first workday
  11-15  after an optional holiday, or on both workdays, is entitled, except
  11-16  as provided by Section 662.010, to a paid day off from working for
  11-17  a state agency on the <each day of an optional> holiday if:
  11-18              (1)  the holiday <that> does not fall on a Saturday or
  11-19  Sunday;
  11-20              (2)  <if> the employee agrees to give up, during the
  11-21  same fiscal year, a state holiday that:
  11-22                    (A)  does not fall on a Saturday or Sunday; and
  11-23                    (B)  the General Appropriations Act does not
  11-24  prohibit state agencies from observing; and
  11-25              (3)  the General Appropriations Act does not prohibit
  11-26  state agencies from observing the optional holiday.
  11-27        (b)  A state employee is entitled to a paid day off from
   12-1  working for a state agency on each day of an optional holiday that
   12-2  extends for more than one day if the employee:
   12-3              (1)  qualifies for the paid day off under Subsection
   12-4  (a); and
   12-5              (2)  agrees to give up during the same fiscal year an
   12-6  equivalent number of state holidays that:
   12-7                    (A)  do not fall on a Saturday or Sunday; and
   12-8                    (B)  the General Appropriations Act does not
   12-9  prohibit state agencies from observing.
  12-10        (c)  A state employee may not agree to give up the Friday
  12-11  after Thanksgiving Day or the 24th or 26th day of December.
  12-12        SECTION 19.  Subsection (a), Section 662.007, Government
  12-13  Code, is amended to read as follows:
  12-14        (a)  A state employee who is required to work on a national
  12-15  or state holiday <that does not fall on a Saturday or Sunday> is
  12-16  entitled to compensatory time off during the 12 months after the
  12-17  holiday if state employees are entitled to a paid day off from
  12-18  working for a state agency on the holiday under Section 662.005.
  12-19        SECTION 20.  Section 662.010, Government Code, is amended to
  12-20  read as follows:
  12-21        Sec. 662.010.  HOLIDAY BEFORE WORK BEGINS OR AFTER WORK ENDS.
  12-22  (a)  An individual who is not a <A> state employee <who begins
  12-23  working for a state agency> on the last workday before a state or
  12-24  national holiday but who is a state employee on the first workday
  12-25  after the holiday may not <of a month is entitled to> be paid for
  12-26  the <a state or national> holiday <that occurs before the first
  12-27  workday> if it <the holiday:>
   13-1              <(1)>  occurs during the same month as the last workday
   13-2  before the holiday<; and>
   13-3              <(2)  does not fall on a Saturday or Sunday>.
   13-4        (b)  An individual who is a <A> state employee <who stops
   13-5  working for a state agency> on the last workday before a state or
   13-6  national holiday but who is not a state employee on the first
   13-7  workday after the holiday may not <of a month is entitled to> be
   13-8  paid for the <a state or national> holiday <that occurs after the
   13-9  last workday> if it <the holiday:>
  13-10              <(1)>  occurs before the first workday of a month and
  13-11  during that <the> month<; and>
  13-12              <(2)  does not fall on a Saturday or Sunday>.
  13-13        (c)  In this section, "state employee":
  13-14              (1)  includes an individual who uses paid leave from a
  13-15  state agency; and
  13-16              (2)  does not include an individual who uses unpaid
  13-17  leave from a state agency <"workday" means a day on which a state
  13-18  employee is normally scheduled to work>.
  13-19        SECTION 21.  Subsections (h) and (i), Section 403.0165,
  13-20  Government Code, are amended to read as follows:
  13-21        (h)  The comptroller may <shall> charge an administrative fee
  13-22  to cover the costs incurred as a result of administering this
  13-23  section.  The administrative <Administrative> fees charged by the
  13-24  comptroller shall be paid by each qualifying state employee
  13-25  organization on a pro rata basis to be determined by the
  13-26  comptroller.  The comptroller by rule shall determine the most
  13-27  efficient and effective method of collecting the <such
   14-1  administrative> fees.  <The comptroller shall adopt rules for the
   14-2  administration of this section.>
   14-3        (i)  The comptroller shall adopt rules for the administration
   14-4  of this section  <allocate the administrative fees on a
   14-5  proportional basis to each employing state agency that incurs costs
   14-6  in administering this subsection>.
   14-7        SECTION 22.  Section 659.041, Government Code, is amended to
   14-8  read as follows:
   14-9        Sec. 659.041.  DEFINITIONS.  In this subchapter:
  14-10              (1)  "Appointment" means a job title.
  14-11              (2)  "Full-time state employee" means:
  14-12                    (A)  a state employee who works in the executive
  14-13  or judicial branch of state government, other than for a state
  14-14  institution of higher education, and who is normally scheduled to
  14-15  work a total of at least 40 hours a week for a single state agency
  14-16  <in one position>;
  14-17                    (B)  a state employee who works for a state
  14-18  institution of higher  education and who is normally scheduled to
  14-19  work a total of at least 40 hours a week in one position, as
  14-20  determined under Section 659.0411; or
  14-21                    (C) <(B)>  a state employee who works in the
  14-22  legislative branch of state government and who is normally
  14-23  scheduled to work a total of 40 or more hours a week in all
  14-24  positions held in the legislative branch.
  14-25              (3) <(2)>  "Part-time state employee" means a state
  14-26  employee who is not a full-time state employee.
  14-27              (4) <(3)>  "State employee" means an individual who:
   15-1                    (A)  is covered by Chapter 654;
   15-2                    (B)  holds a line item or exempt position;
   15-3                    (C)  works in a nonacademic position at a state
   15-4  institution of higher education at least 20 hours a week for at
   15-5  least 4.5 consecutive months; or
   15-6                    (D)  is an hourly employee of the state.
   15-7        SECTION 23.  Subchapter D, Chapter 659, Government Code, is
   15-8  amended by adding Section 659.0411 to read as follows:
   15-9        Sec. 659.0411.  APPOINTMENTS AT STATE INSTITUTIONS OF HIGHER
  15-10  EDUCATION.  (a)  A state institution of higher education shall
  15-11  determine whether a state employee who has more than one
  15-12  appointment with the institution holds only one position or holds
  15-13  one position for each appointment.
  15-14        (b)  A board of regents shall determine whether a state
  15-15  employee who has an appointment with each of at least two state
  15-16  institutions of higher education under the board's jurisdiction
  15-17  holds only one position or holds one position for each appointment.
  15-18        (c)  A state employee who has an appointment with each of at
  15-19  least two state institutions of higher education holds more than
  15-20  one position if those institutions are not governed by the same
  15-21  board of regents.
  15-22        SECTION 24.  Section 2, Article 6813h, Revised Statutes, is
  15-23  amended to read as follows:
  15-24        Sec. 2.  DEDUCTION AUTHORIZED.  (a)  A <An employee of a>
  15-25  state employee <agency> may authorize a deduction each pay period
  15-26  from the employee's salary or wage payment for a contribution.  The
  15-27  comptroller by rule may establish a reasonable minimum deduction
   16-1  for each pay period.
   16-2        (b)  Except as provided by Subsections (c), (d), and (e), a
   16-3  state employee may authorize a deduction only during a state
   16-4  employee charitable campaign.
   16-5        (c)  A state employee who begins working for the state when a
   16-6  campaign is not being conducted may authorize a deduction according
   16-7  to the comptroller's requirements.
   16-8        (d)  A state employee who works for a state agency that does
   16-9  not allow deduction authorizations because of Subsection (j) of
  16-10  this section may authorize a deduction that is effective with the
  16-11  first full payroll period after the agency is converted to a system
  16-12  in which uniform statewide payroll procedures are followed.
  16-13        (e)  A state employee who works for a state agency that does
  16-14  not allow deduction authorizations because of Subsection (j) of
  16-15  this section may authorize a deduction after transferring from that
  16-16  agency to:
  16-17              (1)  a state agency that allows deduction
  16-18  authorizations even though it may prohibit them under Subsection
  16-19  (j); or
  16-20              (2)  a state agency not covered by Subsection (j).
  16-21        (f)  A state employee who authorized a deduction while
  16-22  working for a state agency may continue the deduction after
  16-23  transferring to another state agency if the comptroller's rules for
  16-24  continuing the deduction are followed.
  16-25        (g)  An authorization shall direct the comptroller to
  16-26  distribute the deducted funds to participating federations or funds
  16-27  and local campaign managers as prescribed by rule.
   17-1        (h) <(c)>  An authorization may designate an eligible
   17-2  charitable organization to receive the deductions.  If an
   17-3  authorization does not designate an eligible charitable
   17-4  organization, the employee's deductions shall be distributed to
   17-5  each participating federation or fund and eligible local charitable
   17-6  organization in the proportion that the deductions designated for
   17-7  that charitable organization bear to the total of designated
   17-8  deductions in the local state employee charitable campaign.
   17-9        (i) <(d)>  A deduction under this article must be in the form
  17-10  prescribed by the comptroller.
  17-11        (j) <(e)>  A state agency other than an institution of higher
  17-12  education is not required to permit employees to authorize a
  17-13  deduction under this article until the first full payroll period
  17-14  after the agency is converted to a system in which uniform
  17-15  statewide payroll procedures are followed.
  17-16        SECTION 25.  Section 3, Article 6813h, Revised Statutes, is
  17-17  amended to read as follows:
  17-18        Sec. 3.  Duration of Deduction.  (a)  A deduction under this
  17-19  article begins on the date designated by the comptroller by rule.
  17-20        (b)  A deduction authorization under this article is
  17-21  effective for a maximum of one campaign year and, unless revoked or
  17-22  changed under Subsection (c) of this section, ends on<:>
  17-23              <(1)  the first anniversary of> the date designated by
  17-24  the comptroller by rule <it begins; or>
  17-25              <(2)  the effective date of a revocation of or change
  17-26  in the authorization by the employee>.
  17-27        (c) <(b)>  A state employee may revoke or change a deduction
   18-1  <an> authorization by giving notice to the employing state agency.
   18-2  The notice must be in the form and manner prescribed by the
   18-3  comptroller.  A state employee may not change the eligible
   18-4  charitable organization designated to receive the employee's
   18-5  deductions.  A revocation or change takes effect on the date
   18-6  designated <when it is approved> by the comptroller by rule.
   18-7        SECTION 26.  Subsection (d), Section 13, Article 6813h,
   18-8  Revised Statutes, is amended to read as follows:
   18-9        (d)  Except as provided by this subsection, the <The>
  18-10  comptroller shall charge an administrative fee to cover costs
  18-11  incurred by the comptroller and employing state agencies in the
  18-12  implementation of this article to the charitable organizations
  18-13  participating in the first state employee charitable campaign
  18-14  conducted under this article in the same proportion that the
  18-15  contributions to that charitable organization bear to the total of
  18-16  contributions in that campaign.  Except as provided by this
  18-17  subsection, the <The> comptroller shall charge an administrative
  18-18  fee to cover costs incurred by the comptroller and employing state
  18-19  agencies in the administration of this article to the charitable
  18-20  organizations in each subsequent state employee charitable campaign
  18-21  in the same proportion that the contributions to that charitable
  18-22  organization bear to the total of contributions in that campaign.
  18-23  The comptroller may decline to charge an administrative fee if the
  18-24  comptroller determines the costs that would be covered by the fee
  18-25  are insignificant.  The comptroller shall determine the most
  18-26  efficient and effective method of collecting the administrative fee
  18-27  and shall adopt rules for the implementation of this section.
   19-1        SECTION 27.  Chapter 659, Government Code, is amended by
   19-2  adding Subchapter G to read as follows:
   19-3                SUBCHAPTER G.  SUPPLEMENTAL DEDUCTIONS
   19-4        Sec. 659.101.  DEFINITION.  In this subchapter, "state
   19-5  agency" means a department, commission, board, office, or other
   19-6  agency of any branch of state government, including an institution
   19-7  of higher education as defined by Section 61.003, Education Code.
   19-8        Sec. 659.102.  DEDUCTION FOR SUPPLEMENTAL OPTIONAL BENEFITS
   19-9  PROGRAM.  (a)  An employee of a state agency may authorize in
  19-10  writing a deduction each pay period from the employee's salary or
  19-11  wage payment for coverage of the employee under an eligible
  19-12  supplemental optional benefits program.
  19-13        (b)  The Employees Retirement System of Texas shall designate
  19-14  supplemental optional benefits programs that are eligible under
  19-15  this section and that promote the interests of the state and state
  19-16  agency employees.
  19-17        (c)  The supplemental optional benefits program shall include
  19-18  a program to provide permanent life insurance and may include
  19-19  programs to provide catastrophic illness insurance, disability
  19-20  insurance, or prepaid legal services.
  19-21        Sec. 659.1021.  PERMANENT LIFE INSURANCE PROGRAM.  (a)  The
  19-22  Employees Retirement System of Texas shall issue a request for
  19-23  proposals to insurance companies and agencies to become providers
  19-24  of the supplemental optional benefits program to provide permanent
  19-25  life insurance.
  19-26        (b)  To be qualified to be a provider of the program under
  19-27  this section, a company or agency must:
   20-1              (1)  have extensive experience in marketing life
   20-2  insurance within groups, including governmental entities, having at
   20-3  least 10,000 potential policyholders;
   20-4              (2)  have an adequate number of servicing agents
   20-5  located strategically throughout this state;
   20-6              (3)  have a computerized billing system capable of
   20-7  processing magnetic tapes providing an employee's name, social
   20-8  security number, and the amount of deduction for each deduction
   20-9  period;
  20-10              (4)  provide a description of its billing system's
  20-11  capability and a reference of existing accounts;
  20-12              (5)  provide the applicant's view of the role of an
  20-13  insurance agent concerning an individual policyholder and a
  20-14  description of how the company or agency recruits and trains agents
  20-15  to ensure that continuing service is provided to policyholders by
  20-16  career professional insurance agents; and
  20-17              (6)  provide a portfolio of life insurance products,
  20-18  including whole life, whole life participating, universal life, and
  20-19  variable life policies, that meets the specifications of Subsection
  20-20  (c).
  20-21        (c)  Each portfolio of a qualified provider company or agency
  20-22  must specify:
  20-23              (1)  the interest rate paid on universal life policies,
  20-24  how it is determined, and the rate that has been paid for the
  20-25  preceding three years;
  20-26              (2)  the dividend rate for whole life par policies, the
  20-27  guaranteed minimum interest, and the interest rate charged on loans
   21-1  against the policies;
   21-2              (3)  the mortality table used and the frequency of
   21-3  updating of mortality costs;
   21-4              (4)  the relative costs of comparable insurance for
   21-5  smokers and nonsmokers; and
   21-6              (5)  the amounts of policies to be offered, without an
   21-7  enrollment percentage requirement, under the program regardless of
   21-8  the health status of the persons covered.
   21-9        (d)  In addition to the requirements of Subsection (b), to be
  21-10  qualified as a provider of the program under this section, a
  21-11  company must have a rating by the A.M. Best Company of A++ or
  21-12  better.
  21-13        (e)  After receiving proposals under this section, the
  21-14  retirement system may contract with one or more companies or
  21-15  agencies who are qualified to be providers of the program.
  21-16        Sec. 659.103.  DEDUCTION TO CREDIT UNION.  (a)  An employee
  21-17  of a state agency may authorize in writing a deduction each pay
  21-18  period from the employee's salary or wage payment for payment to a
  21-19  credit union to be credited to a share or deposit account of the
  21-20  employee.
  21-21        (b)  A designation by the Employees Retirement System of
  21-22  Texas is not necessary for a deduction under this section.
  21-23        Sec. 659.104.  AUTHORIZATION.  (a)  An authorization for a
  21-24  deduction under this subchapter must direct the comptroller or, if
  21-25  applicable, the appropriate financial officer of an institution of
  21-26  higher education to transfer the withheld funds to the program or
  21-27  credit union designated by the employee.
   22-1        (b)  The comptroller or financial officer shall comply with
   22-2  the direction.
   22-3        Sec. 659.105.  FORM AND MANNER.  A deduction under this
   22-4  subchapter must be made in a form and manner prescribed by the
   22-5  comptroller or the appropriate financial officer of an institution
   22-6  of higher education.
   22-7        Sec. 659.106.  DURATION.  (a)  An employee authorizing a
   22-8  deduction under this subchapter or a person designated by the
   22-9  employee may change or revoke the authorization by delivering
  22-10  written notice of the change or revocation to the comptroller or
  22-11  the appropriate financial officer of an institution of higher
  22-12  education.
  22-13        (b)  An authorization is effective until the comptroller or
  22-14  financial officer receives the notice.
  22-15        (c)  The notice must be given in the form and manner
  22-16  prescribed by the comptroller or financial officer.
  22-17        Sec. 659.107.  AUTHORIZATION VOLUNTARY.  The making of an
  22-18  authorization for a deduction under this subchapter by the employee
  22-19  is voluntary.
  22-20        Sec. 659.108.  WITHHOLDING OF ADMINISTRATIVE FEE.  (a)  The
  22-21  state may withhold from the employee's salary or wage payment an
  22-22  administrative fee for making a deduction under this subchapter.
  22-23        (b)  An institution of higher education that is authorized to
  22-24  operate a payroll system reimbursable from the state treasury may
  22-25  withhold from the employee's salary or wage payment an
  22-26  administrative fee for making the deduction under this subchapter.
  22-27        (c)  The administrative fee may not exceed the lower of the
   23-1  actual administrative cost of making the deduction or the highest
   23-2  fee charged by the state or institution, as appropriate, for making
   23-3  another similar deduction.
   23-4        (d)  Notwithstanding Subsection (c), the administrative fee
   23-5  withheld by the state or an institution of higher education from an
   23-6  employee's salary or wage payment for making a deduction under
   23-7  Section 659.103 may not exceed 25 cents for each payment made to
   23-8  each credit union account of the employee.
   23-9        Sec. 659.109.  ALLOCATION AND APPROPRIATION OF ADMINISTRATIVE
  23-10  FEES.  (a)  The state shall allocate and pay to each state agency
  23-11  that incurs costs in administering this subchapter the agency's
  23-12  proportional amount of the administrative fees collected by the
  23-13  state under this subchapter.
  23-14        (b)  An administrative fee withheld under this subchapter may
  23-15  be used by the comptroller and the state agencies incurring costs
  23-16  in administering this subchapter.
  23-17        Sec. 659.110.  RULES.  The comptroller may adopt rules to
  23-18  administer the credit union deduction program authorized by this
  23-19  subchapter.
  23-20        SECTION 28.  Section 659.062, Government Code, is amended by
  23-21  adding Subsection (e) to read as follows:
  23-22        (e)  The comptroller may establish procedures and adopt rules
  23-23  to administer this section.
  23-24        SECTION 29.  Subchapter B, Chapter 661, Government Code, is
  23-25  amended by adding Section 661.038 to read as follows:
  23-26        Sec. 661.038.  RULES.  The comptroller may establish
  23-27  procedures and adopt rules to administer this subchapter.
   24-1        SECTION 30.  Subchapter C, Chapter 661, Government Code, is
   24-2  amended by adding Section 661.068 to read as follows:
   24-3        Sec. 661.068.  RULES.  The comptroller may establish
   24-4  procedures and adopt rules to administer this subchapter.
   24-5        SECTION 31.  Subchapter D, Chapter 661, Government Code, is
   24-6  amended by adding Section 661.094 to read as follows:
   24-7        Sec. 661.094.  RULES.  The comptroller may establish
   24-8  procedures and adopt rules to administer this subchapter.
   24-9        SECTION 32.  Subchapter A, Chapter 662, Government Code, is
  24-10  amended by adding Section 662.012 to read as follows:
  24-11        Sec. 662.012.  RULES.  The comptroller may establish
  24-12  procedures and adopt rules to administer Sections 662.001 through
  24-13  662.010.
  24-14        SECTION 33.  Section 24.006, Government Code, is amended to
  24-15  read as follows:
  24-16        Sec. 24.006.  Salary of Special Judge.  (a)  In this section:
  24-17              (1)  "Holiday" means a state or national holiday as
  24-18  defined by Section 662.003 that does not fall on a Saturday or
  24-19  Sunday and that the General Appropriations Act does not prohibit
  24-20  state agencies from observing.
  24-21              (2)  "Workday" means any day other than Saturday or
  24-22  Sunday.  The term includes a holiday.
  24-23        (b)  This section applies to payment of salary to:
  24-24              (1)  a special judge commissioned by the governor as
  24-25  provided by Article V, Section 11, of the Texas Constitution; and
  24-26              (2)  a special judge agreed on by the parties as
  24-27  provided by Section 24.004.
   25-1        (c) <(b)>  Each special judge is entitled to receive for each
   25-2  day served as a special judge the same daily salary that a district
   25-3  judge receives.
   25-4        (d) <(c)>  A special judge commissioned by the governor is
   25-5  also entitled to receive the same daily salary that a district
   25-6  judge receives for each day necessary for the special judge to
   25-7  travel to and from the court.
   25-8        (e)  If a special judge serves as a judge or is traveling to
   25-9  or from the court for only part of a day, the judge is considered
  25-10  for the purposes of this section to have served or traveled for the
  25-11  entire day.
  25-12        (f)  A special judge who serves before or after a holiday but
  25-13  who does not work on the holiday is entitled to receive a salary
  25-14  for the holiday if the judge would be entitled to be paid for the
  25-15  holiday under Subchapter A, Chapter 662, if the judge were a state
  25-16  employee under that subchapter.
  25-17        (g)  For the purpose of computing the daily salary of a
  25-18  special judge, the <(d)  The> daily salary of a district judge is
  25-19  determined by:
  25-20              (1)  dividing the annual salary of a district judge by
  25-21  12 months; and
  25-22              (2)  dividing the monthly salary computed under
  25-23  Subdivision (1) by the number of workdays in the month in which the
  25-24  special judge serves as a judge or travels to or from the court
  25-25  <365>.
  25-26        (h)  Before the comptroller may pay the salary of <(e)  In
  25-27  order to obtain his salary,> a special judge commissioned by the
   26-1  governor, the special judge must present the judge's <his> sworn
   26-2  account to the comptroller showing the number of travel days that
   26-3  were necessary.  The judge must also give the comptroller evidence
   26-4  that the judge was duly commissioned.  The account must be
   26-5  certified as correct by the judge of the district or by the court
   26-6  clerk of the court in which the special judge <he> served.
   26-7        (i) <(f)>  A special judge agreed on by the parties or
   26-8  elected by the practicing lawyers shall be paid on presenting to
   26-9  the comptroller the certificate of the clerk of the court in which
  26-10  the judge <he> served and the judge's sworn account.  The clerk's
  26-11  certificate must show the record of the judge's election or
  26-12  appointment and must show that the judge performed services in the
  26-13  court.  The judge's sworn account must show the number of days that
  26-14  the judge <he> served as the special judge.
  26-15        SECTION 34.  Section 32.302, Government Code, is amended to
  26-16  read as follows:
  26-17        Sec. 32.302.  Salary of Special Judges.  (a)  In this
  26-18  section:
  26-19              (1)  "Holiday" means a state or national holiday as
  26-20  defined by Section 662.003 that does not fall on a Saturday or
  26-21  Sunday and that the General Appropriations Act does not prohibit
  26-22  state agencies from observing.
  26-23              (2)  "Workday" means any day other than Saturday or
  26-24  Sunday.  The term includes a holiday.
  26-25        (b)  The salary of a special judge commissioned by the
  26-26  governor under Article V, Section 11, of the Texas Constitution or
  26-27  elected by practicing lawyers or agreed on by parties as provided
   27-1  by law is determined and paid in accordance with this section.
   27-2        (c) <(b)>  The special judge is entitled to the same salary
   27-3  as a district judge for every day the special judge performs the
   27-4  duties of judge.  In addition, a special judge commissioned by the
   27-5  governor is entitled to the same pay as a district judge for each
   27-6  day the special judge is necessarily occupied going to and
   27-7  returning from the place the judge is required to hold court.
   27-8        (d)  If a special judge serves as a judge or is traveling to
   27-9  or returning from the place the judge is required to hold court for
  27-10  only part of a day, the judge is considered for the purposes of
  27-11  this section to have served, traveled, or returned for the entire
  27-12  day.
  27-13        (e)  A special judge who serves before or after a holiday but
  27-14  who does not work on the holiday is entitled to receive a salary
  27-15  for the holiday if the judge would be entitled to be paid for the
  27-16  holiday under Subchapter A, Chapter 662, if the judge were a state
  27-17  employee under that subchapter.
  27-18        (f)  For the purpose of computing the daily salary of a
  27-19  <(c)  The amount of the> special judge, the <judge's> daily salary
  27-20  of a district judge is determined by:
  27-21              (1)  dividing the annual salary of a district judge by
  27-22  12 months; and
  27-23              (2)  dividing the monthly salary computed under
  27-24  Subdivision (1) by the number of workdays in the month in which the
  27-25  special judge serves as a judge or travels to or returns from the
  27-26  place the judge is required to hold court <365>.
  27-27        (g) <(d)>  A special judge commissioned by the governor must
   28-1  present a sworn account to the comptroller of public accounts.  The
   28-2  account must show the number of days necessarily occupied in going
   28-3  to and coming from the place the special judge was required to hold
   28-4  court and must be accompanied by evidence that the special judge
   28-5  was properly commissioned.  The account must be certified to be
   28-6  correct by the judge or clerk of the judicial district in which the
   28-7  special judge performed services.
   28-8        (h) <(e)>  A special judge elected by practicing lawyers or
   28-9  agreed to by parties must present to the comptroller of public
  28-10  accounts a certificate of the clerk of the judicial district in
  28-11  which the special judge performed services showing the record of
  28-12  the election or appointment and the services rendered.  The
  28-13  certificate must be accompanied by the sworn account of the special
  28-14  judge showing the number of days actually served as judge.
  28-15        SECTION 35.  Section 74.061, Government Code, is amended to
  28-16  read as follows:
  28-17        Sec. 74.061.  Compensation While Assigned.  (a)  In this
  28-18  section:
  28-19              (1)  "Holiday" means a state or national holiday as
  28-20  defined by Section 662.003 that does not fall on a Saturday or
  28-21  Sunday and that the General Appropriations Act does not prohibit
  28-22  state agencies from observing.
  28-23              (2)  "Workday" means any day other than Saturday or
  28-24  Sunday.  The term includes a holiday.
  28-25        (b)  The salary, compensation, and expenses of a judge or
  28-26  justice while assigned under this chapter shall be paid in
  28-27  accordance with this chapter and other law of this state.
   29-1        (c) <(b)>  While serving in a county outside the judge's
   29-2  <his> judicial district or county, a judge is entitled to receive,
   29-3  in addition to the judge's <his> necessary expenses, additional
   29-4  compensation from the county to which the judge <he> is assigned in
   29-5  an amount not to exceed the difference between the compensation of
   29-6  the assigned judge from all sources, exclusive of the per diem
   29-7  provided by Subsection (o) <(f)>, and the compensation received
   29-8  from all sources by the judge of the court to which the judge <he>
   29-9  is assigned.  The county shall pay the compensation provided by
  29-10  this subsection on approval of the presiding judge of the
  29-11  administrative region in which the court to which the judge is
  29-12  assigned is located.
  29-13        (d) <(c)>  The salary of a retired judge or justice while
  29-14  assigned under this chapter shall be paid out of money appropriated
  29-15  from the general revenue fund for that purpose <in an amount equal
  29-16  to the compensation received from state and county sources of the
  29-17  judge of the court to which he is assigned>.
  29-18        (e)  For each day that <The salary of> a retired judge or
  29-19  justice serves on assignment, the judge or justice is entitled to a
  29-20  salary in an amount equal to the daily salary paid from state and
  29-21  county sources to the judge of the court to which the retired judge
  29-22  or justice is <while> assigned <shall be determined pro rata for
  29-23  the period of time that the judge or justice actually sits as the
  29-24  assigned judge>.  Notwithstanding anything in this section, the
  29-25  salary paid to a retired judge or justice during a calendar month
  29-26  may not exceed the salary paid for that month to the judge of the
  29-27  court to which the retired judge or justice is assigned.
   30-1        (f)  If a retired judge or justice sits on assignment for
   30-2  only part of a day, then the judge or justice is considered for the
   30-3  purposes of this section to have sat on assignment for the entire
   30-4  day.
   30-5        (g)  A retired judge or justice who sits on assignment before
   30-6  or after a holiday but who does not work on the holiday is entitled
   30-7  to receive a salary for the holiday if the judge or justice would
   30-8  be entitled to be paid for the holiday under Subchapter A, Chapter
   30-9  662, if the judge or justice were a state employee under that
  30-10  subchapter.  This subsection applies even if the judge or justice
  30-11  sits in an administrative region after a holiday that is different
  30-12  from the region in which the judge or justice sat before the
  30-13  holiday.
  30-14        (h)  For the purpose of computing the daily salary of a
  30-15  retired judge or justice, the daily salary of a district judge is
  30-16  determined by:
  30-17              (1)  dividing the annual salary of the district judge
  30-18  by 12 months; and
  30-19              (2)  dividing the monthly salary computed under
  30-20  Subdivision (1) by the number of workdays in the month in which the
  30-21  retired judge or justice sits on assignment.
  30-22        (i) <(d)>  For each day that <services actually performed
  30-23  while assigned under this chapter,> a former judge or justice
  30-24  serves on assignment, the judge or justice is entitled to a salary
  30-25  in an amount equal to the daily salary paid <shall receive> from
  30-26  state and county sources to <funds and money appropriated by the
  30-27  legislature the same amount of salary, compensation, and expenses
   31-1  that> the regular judge of the court to which the former judge or
   31-2  justice is assigned <is entitled to receive from the county and
   31-3  from the state for those services>.  Notwithstanding anything in
   31-4  this section, the salary paid to a former judge or justice during a
   31-5  calendar month may not exceed the salary paid for that month to the
   31-6  regular judge of the court to which the former judge or justice is
   31-7  assigned.
   31-8        (j)  The state's share of a former judge or justice's salary
   31-9  is the same as the state's share of the regular judge's salary.
  31-10  The county's share of the former judge or justice's salary is the
  31-11  same as the county's share of the regular judge's salary.  The
  31-12  presiding judge of the administrative region to which the former
  31-13  judge or justice is assigned shall certify to the county and the
  31-14  state the services rendered under this chapter by the <a> former
  31-15  judge or justice and the share to be paid by the state.  The amount
  31-16  certified by the presiding judge as the state's share shall be paid
  31-17  from an item in the Judiciary <Judicial> Section--Comptroller's
  31-18  Department of the General Appropriations Act for the payment of
  31-19  salaries of district and criminal district judges.
  31-20        (k)  If a former judge or justice sits on assignment for only
  31-21  part of a day, the judge or justice is considered for the purposes
  31-22  of this section to have sat on assignment for the entire day.
  31-23        (l)  A former judge or justice who sits on assignment before
  31-24  or after a holiday but who does not work on the holiday is entitled
  31-25  to receive a salary for the holiday if the judge or justice would
  31-26  be entitled to be paid for the holiday under Subchapter A, Chapter
  31-27  662, if the judge or justice were a state employee under that
   32-1  subchapter.  This subsection applies even if the judge or justice
   32-2  sits in an administrative region after a holiday that is different
   32-3  from the region in which the judge or justice sat before the
   32-4  holiday.
   32-5        (m)  For the purpose of computing the daily salary of a
   32-6  former judge or justice, the daily salary of a district judge is
   32-7  determined by:
   32-8              (1)  dividing the annual salary of the district judge
   32-9  by 12 months; and
  32-10              (2)  dividing the monthly salary computed under
  32-11  Subdivision (1) by the number of workdays in the month in which the
  32-12  former judge or justice sits on assignment.
  32-13        (n) <(e)>  When a district, constitutional county, or
  32-14  statutory county court judge is assigned under this chapter to a
  32-15  court outside the judge's <his> own district or county, the judge,
  32-16  in addition to all other compensation authorized by law, is
  32-17  entitled to receive the judge's <his> actual expenses in going to
  32-18  and returning from the judge's <his> assignment and the judge's
  32-19  <his> actual living expenses while in the performance of the
  32-20  judge's <his> duties under the assignment.  The county in which the
  32-21  duties are performed shall pay the expenses out of the general fund
  32-22  of the county on accounts certified and approved by the presiding
  32-23  judge of the administrative region for that county.
  32-24        (o) <(f)>  When a district, constitutional county, or
  32-25  statutory county court judge is assigned under this chapter to a
  32-26  court outside the judge's <his> own district or county, the judge,
  32-27  in addition to all other compensation and expenses authorized by
   33-1  law, is entitled to receive a per diem of $25 for each day or
   33-2  fraction of a day that the judge spends outside the judge's <his>
   33-3  district or county in the performance of the judge's <his> duties
   33-4  under the assignment.  The state shall pay the per diem in the same
   33-5  manner that it pays the judge's salary on certificates of approval
   33-6  by the chief justice or the presiding judge of the administrative
   33-7  region in which the judge resides.
   33-8        (p) <(g)>  An active court of appeals justice assigned under
   33-9  this subchapter is not entitled to receive any additional
  33-10  compensation for serving as a visiting judge.  If the justice is
  33-11  assigned to a court outside the justice's <his> own court of
  33-12  appeals district, the justice is entitled to receive actual
  33-13  expenses in going to and returning from assignment and actual
  33-14  living expenses while in the performance of duties under the
  33-15  assignment.  The county in which the duties are performed shall pay
  33-16  the expenses out of the county's general fund on accounts certified
  33-17  and approved by the presiding judge of the administrative region
  33-18  for that county.
  33-19        SECTION 36.  Subchapter B, Chapter 659, Government Code, is
  33-20  amended by adding Section 659.0121 to read as follows:
  33-21        Sec. 659.0121.  COMPUTATION OF DISTRICT JUDGE'S SALARY.
  33-22  (a)  In this section:
  33-23              (1)  "Holiday" means a state or national holiday as
  33-24  defined by Section 662.003 that does not fall on a Saturday or
  33-25  Sunday and that the General Appropriations Act does not prohibit
  33-26  state agencies from observing.
  33-27              (2)  "Workday" means any day other than Saturday or
   34-1  Sunday.  The term includes a holiday.
   34-2        (b)  This section applies to the salary that the judge of a
   34-3  district court earns during a calendar month if the judge serves
   34-4  for less than the entire month.
   34-5        (c)  The judge's salary for the month is equal to the number
   34-6  of hours served multiplied by the amount of the judge's salary,
   34-7  expressed as an hourly rate.
   34-8        (d)  The hourly rate of the judge's salary is determined by
   34-9  dividing the judge's annual salary by the product of:
  34-10              (1)  96; and
  34-11              (2)  the number of workdays in the month.
  34-12        (e)  The judge receives eight hours of service credit for
  34-13  each complete workday served, regardless of the number of hours
  34-14  actually served during that workday.  If the judge serves at least
  34-15  eight hours on a workday, the judge receives eight hours of service
  34-16  credit for that workday even if the judge's successor begins
  34-17  service on the same workday.  The successor receives no hours of
  34-18  service credit for that workday.
  34-19        (f)  The judge receives eight hours of service credit for a
  34-20  holiday if the judge would be entitled to be paid for the holiday
  34-21  under Subchapter A, Chapter 662, if the judge were a state employee
  34-22  under that subchapter.  The judge receives the credit even if the
  34-23  judge does not serve on the holiday.
  34-24        SECTION 37.  Subdivisions (1) and (3), Section 661.061,
  34-25  Government Code, are amended to read as follows:
  34-26              (1)  "National holiday" includes only those days listed
  34-27  under Section 662.003(a).  The term does not include a national
   35-1  holiday on which a state employee is not entitled to a paid day off
   35-2  from work under Section 662.005.
   35-3              (3)  "State holiday" includes only those days listed
   35-4  under Section 662.003(b).  The term does not include a state
   35-5  holiday on which a state employee is not entitled to a paid day off
   35-6  from work under Section 662.005.
   35-7        SECTION 38.  Subsection (b), Section 661.062, Government
   35-8  Code, is amended to read as follows:
   35-9        (b)  A separation from state employment includes a separation
  35-10  in which the employee:
  35-11              (1)  leaves one state agency to begin working for
  35-12  another state agency, if one or more workdays occur between the two
  35-13  employments;
  35-14              (2)  moves from a position in a state agency that
  35-15  accrues vacation time to a position in that agency that does not
  35-16  accrue vacation time, if the agency agrees to pay the employee for
  35-17  the accrued balance of the employee's vacation time;
  35-18              (3)  moves from a position in a state agency that
  35-19  accrues vacation time to a position in another state agency that
  35-20  does not accrue vacation time, if the other state agency refuses to
  35-21  credit the employee for the balance of the employee's vacation time
  35-22  as of the date of the move; <or>
  35-23              (4)  moves from a position in a state agency that does
  35-24  not accrue vacation time to a position in another state agency that
  35-25  does not accrue vacation time, if the other state agency is not
  35-26  authorized or refuses to credit the employee for the balance of the
  35-27  employee's vacation time as of the date of the move; or
   36-1              (5)  holds two or more positions, and separates from
   36-2  one that accrues vacation time.
   36-3        SECTION 39.  Section 661.063, Government Code, is amended to
   36-4  read as follows:
   36-5        Sec. 661.063.  Computation of Payment.  (a)  Except as
   36-6  provided by Subsection (b), the <The> payment to a state employee
   36-7  under this subchapter shall be computed by multiplying the
   36-8  employee's rate of compensation on the date of separation from
   36-9  state employment by the total number of hours of vacation time
  36-10  determined under Section 661.064.
  36-11        (b)  The payment under this subchapter to a state employee
  36-12  who separates from state employment while holding a position that
  36-13  does not accrue vacation time shall be computed according to this
  36-14  subsection.  The employee's final rate of compensation in the last
  36-15  position held that accrues vacation time shall be multiplied by the
  36-16  employee's total number of hours of vacation time determined under
  36-17  Section 661.064.
  36-18        (c)  Under this section, rate of compensation:
  36-19              (1)  includes an emolument in lieu of base pay for
  36-20  which the state employee was eligible <on the last day of
  36-21  employment>; and
  36-22              (2)  does not include longevity or hazardous duty pay.
  36-23        SECTION 40.  Section 661.064, Government Code, is amended by
  36-24  amending Subsection (a) and adding Subsection (c) to read as
  36-25  follows:
  36-26        (a)  This subsection applies except as provided by Subsection
  36-27  (c).  For a state employee who on the date of separation is
   37-1  normally scheduled to work at least 40 hours a week, eight hours
   37-2  are to be added to the employee's accrued vacation time for each
   37-3  state or national holiday that is scheduled to fall within the
   37-4  period after the date of separation and during which the employee
   37-5  could have used the time.  To determine the period during which
   37-6  vacation time could have been used and the number of state or
   37-7  national holidays, the employee's vacation time is allocated over
   37-8  the workdays after the employee's separation and eight hours are
   37-9  added as a state or national holiday occurs during the period.
  37-10        (c)  This subsection applies only to a state employee who is
  37-11  paid under this subchapter because the separation from state
  37-12  employment involves a move to a position in a state agency that
  37-13  does not accrue vacation time.  No hours may be added to the
  37-14  employee's accrued vacation time for a state or national holiday
  37-15  that is scheduled to fall within the period after the date of
  37-16  separation and during which the employee could have used the time.
  37-17        SECTION 41.  Subchapter A, Chapter 662, Government Code, is
  37-18  amended by adding Section 662.0071 to read as follows:
  37-19        Sec. 662.0071.  TRANSFERS OF COMPENSATORY TIME BALANCES.
  37-20  (a)  A state agency shall accept the balance of compensatory time
  37-21  accrued under Section 662.007 by a state employee who transfers to
  37-22  that agency from another state agency if the employee transfers as
  37-23  a direct result of:
  37-24              (1)  the legislature's transfer of legal authority or
  37-25  duties from the agency that formerly employed the employee to the
  37-26  agency that now employs the employee; or
  37-27              (2)  a requirement of the State Council on Competitive
   38-1  Government for the agency that formerly employed the employee to
   38-2  bid a commercially available service that the agency previously
   38-3  performed.
   38-4        (b)  Subsection (a) does not apply if the transferring state
   38-5  employee is required to apply for the new position.
   38-6        (c)  In this section, "bid" means any process developed by
   38-7  the State Council on Competitive Government to provide a
   38-8  commercially available service in competition with private
   38-9  commercial sources or state agency providers.
  38-10        SECTION 42.  Subsection (f), Section 403.016, Government
  38-11  Code, is amended to read as follows:
  38-12        (f)(1)  Subject to Subdivision (2) <Except as provided by
  38-13  Subsection (e)>, the comptroller may use the electronic funds
  38-14  transfer system to pay a person only if the payment is deposited
  38-15  <deposit payments only> to one or more of the person's accounts <a
  38-16  payee's account> at one or more <a> financial institutions
  38-17  <institution>.  This authorization is subject to any limitation
  38-18  adopted by the comptroller by rule, by an automated clearinghouse,
  38-19  or by the federal government.  In this subdivision, "financial
  38-20  institution" includes a credit union.
  38-21              (2)  In addition to Subdivision (1), the comptroller
  38-22  may use the electronic funds transfer system to deposit part of an
  38-23  employee's net state salary in the employee's account at a credit
  38-24  union in accordance with, at the comptroller's discretion, this
  38-25  section or Subchapter G, Chapter 659.  To the extent a state agency
  38-26  is capable of supporting deposits to the credit union accounts of
  38-27  its employees in accordance with this section, the comptroller
   39-1  shall encourage deposits to those accounts in accordance with this
   39-2  section instead of Subchapter G, Chapter 659.
   39-3              (3)  A single electronic funds transfer may contain
   39-4  payments to multiple payees.  Individual transfers or warrants are
   39-5  not required for each payee.
   39-6        SECTION 43.  Subtitle C, Title 8, Government Code, is amended
   39-7  by adding Chapter 826 to read as follows:
   39-8    CHAPTER 826.  RETIREMENT INCENTIVES OF MEDICAL AND DENTAL UNITS
   39-9        Sec. 826.001.  RETIREMENT INCENTIVES.  (a)  A medical and
  39-10  dental unit may offer retirement incentives to employees of the
  39-11  unit who are eligible to retire under this subtitle.
  39-12        (b)  A medical and dental unit offering retirement incentives
  39-13  shall provide the Legislative Budget Board with such information
  39-14  concerning the incentives as may be required by the board and shall
  39-15  file any incentives plan with the board at least 60 days before the
  39-16  date the plan is implemented.
  39-17        (c)  An employee receiving retirement incentives under this
  39-18  section may not be rehired by a medical and dental unit without the
  39-19  specific approval of the president of the unit.  The president may
  39-20  not delegate this responsibility to any other employee of the unit.
  39-21        (d)  Any retirement incentive offered by a medical and dental
  39-22  unit must be paid from institutional funds or hospital or clinic
  39-23  fees.
  39-24        (e)  A retirement incentive paid by a medical and dental unit
  39-25  to a person is not subject to any provision of state law that
  39-26  entitles a person to any benefits based on salary or compensation,
  39-27  including but not limited to contributions provided for in this
   40-1  subtitle.
   40-2        (f)  In this section:
   40-3              (1)  "Institutional funds" has the meaning assigned by
   40-4  Section 51.009, Education Code.
   40-5              (2)  "Medical and dental unit" has the meaning assigned
   40-6  by Section 61.003, Education Code, and includes any health care
   40-7  facility operated by a medical and dental unit or health science
   40-8  center.
   40-9        (g)  A retirement incentive provided under this section may
  40-10  not be considered a part of any retirement plan or program
  40-11  administered by the retirement system.
  40-12        SECTION 44.  Section 830.201, Government Code, is amended by
  40-13  adding Subsections (d) and (e) to read as follows:
  40-14        (d)  For a person who first became a participant in the
  40-15  optional retirement program beginning after August 31, 1996, the
  40-16  compensation limitation of Section 401(a)(17), Internal Revenue
  40-17  Code of 1986 (26 U.S.C. Section 401), applies.
  40-18        (e)  For a person who first became a participant in the
  40-19  optional retirement program before September 1, 1996, the
  40-20  compensation limitation under Section 401(a)(17), Internal Revenue
  40-21  Code (26 U.S.C. Section 401), does not apply.  For these persons,
  40-22  the amount of compensation allowed to be taken into account under
  40-23  the plan shall be the amount allowed to be taken into account as of
  40-24  July 1, 1993.
  40-25        SECTION 45.  The following laws are repealed:
  40-26              (1)  Subsection (j), Section 403.0165, Government Code;
  40-27              (2)  Section 1, Chapter 922, Acts of the 73rd
   41-1  Legislature, 1993; and
   41-2              (3)  Section 403.005 and Subsection (e), Section
   41-3  403.016, Government Code.
   41-4        SECTION 46.  This Act takes effect immediately, except:
   41-5              (1)  Sections 1 through 8, 10, 33 through 41, 47, and
   41-6  48, which take effect September 1, 1995;
   41-7              (2)  Sections 18, 19, and 20, which take effect
   41-8  September 1, 1995, if this Act does not receive the votes required
   41-9  by Section 39, Article III, Texas Constitution, for immediate
  41-10  effect.
  41-11        SECTION 47.  The changes in law made by Sections 33, 34, 35,
  41-12  and 36 of this Act do not apply to salary or compensation earned by
  41-13  a special judge, by a retired or former judge or justice, or by a
  41-14  judge of a district court before the effective date of this Act.
  41-15  That salary and compensation are governed by the law in effect at
  41-16  the time they were earned, and that law is continued in effect for
  41-17  that purpose.
  41-18        SECTION 48.  The changes in law made by Sections 38 and 39 of
  41-19  this Act do not apply to a separation from state employment that
  41-20  occurs before the effective date of this Act.  That separation is
  41-21  governed by the law in effect at the time of the separation, and
  41-22  the former law is continued in effect for that purpose.
  41-23        SECTION 49.  The importance of this legislation and the
  41-24  crowded condition of the calendars in both houses create an
  41-25  emergency and an imperative public necessity that the
  41-26  constitutional rule requiring bills to be read on three several
  41-27  days in each house be suspended, and this rule is hereby suspended,
   42-1  and that this Act take effect and be in force according to its
   42-2  terms, and it is so enacted.