AN ACT
 1-1     relating to codification of certain state employment matters
 1-2     currently prescribed by the General Appropriations Act.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Chapter 651, Government Code, is amended by
 1-5     adding Section 651.005 to read as follows:
 1-6           Sec. 651.005.  REDUCTIONS IN FORCE.  A state governmental
 1-7     entity undergoing a reorganization mandated by statute may
 1-8     institute a reduction in force as a direct result of the
 1-9     reorganization, notwithstanding a rule, personnel handbook, or
1-10     policy of the entity to the contrary.
1-11           SECTION 2.  Subchapter B, Chapter 654, Government Code, is
1-12     amended by adding Section 654.0125 to read as follows:
1-13           Sec. 654.0125.  EXEMPTION OF POSITIONS BY GOVERNOR.
1-14     (a)  Appropriated money may not be used to pay the salary of a
1-15     person in a position exempted from the position classification plan
1-16     by the governor under Section 654.012(8)(A) unless the position is
1-17     a bona fide new position established to accomplish duties related
1-18     to programs or functions that were not anticipated, and for that
1-19     reason not funded, under the General Appropriations Act.
1-20           (b)  A new position may not be created under Section
1-21     654.012(8)(A) for the sole purpose of adjusting the salary of an
1-22     existing position.
1-23           (c)  The governor's exemption of a position from the position
1-24     classification plan under Section 654.012(8)(A) must contain a
 2-1     certification that the exemption is for a bona fide new position.
 2-2     The comptroller may not pay compensation for the position until
 2-3     formal notification of the action of the governor to exempt the
 2-4     position is filed with the classification officer and the
 2-5     Legislative Budget Board.
 2-6           (d)  A position exempted by the governor under Section
 2-7     654.012(8)(A) in the first year of a state fiscal biennium may
 2-8     continue into the second year.  The salary rate established for the
 2-9     position may be adjusted for the second year of the biennium by a
2-10     rate not to exceed the rate by which the salary schedule for
2-11     classified positions in the General Appropriations Act is adjusted
2-12     from the first to the second year of the biennium.
2-13           SECTION 3.  Section 654.014, Government Code, is amended to
2-14     read as follows:
2-15           Sec. 654.014.  APPOINTMENTS TO CONFORM WITH POSITION
2-16     CLASSIFICATION PLAN AND GENERAL APPROPRIATIONS ACT.  (a)  Each
2-17     employment to which this subchapter applies shall conform to:
2-18                 (1)  the classes of work described in the position
2-19     classification plan;
2-20                 (2)  the titles authorized by the plan; and
2-21                 (3)  the salary rates and provisions in the General
2-22     Appropriations Act.
2-23           (b)  Each state agency or other state entity subject to this
2-24     chapter may determine, at the time an individual is initially
2-25     employed by the entity in a classified position, the individual's
2-26     salary rate within the applicable salary group for the individual's
 3-1     classified position.
 3-2           SECTION 4.  Subchapter B, Chapter 654, Government Code, is
 3-3     amended by adding Sections 654.0155 and 654.0156 to read as
 3-4     follows:
 3-5           Sec. 654.0155.  PERIODIC REVIEW OF POSITIONS.  To ensure that
 3-6     each position is properly classified, each employing state entity
 3-7     subject to this chapter:
 3-8                 (1)  shall annually review individual job assignments
 3-9     within the entity; and
3-10                 (2)  may perform a monthly review of job assignments.
3-11           Sec. 654.0156.  RECLASSIFICATION.  (a)  An employing state
3-12     entity subject to this chapter may reclassify a position to another
3-13     title in the position classification plan:
3-14                 (1)  in response to a classification review; or
3-15                 (2)  as a result of a program reorganization by the
3-16     administrative head of the employing state entity.
3-17           (b)  The sole purpose of a reclassification is to properly
3-18     classify a position and define its duties under this chapter based
3-19     on the duties currently performed by an employee holding the
3-20     reclassified position.  A reclassification therefore does not
3-21     indicate that the  employee's assigned duties should or will be
3-22     changed.
3-23           (c)  A reclassification may take effect at any time.
3-24           SECTION 5.  Subchapter B, Chapter 656, Government Code, is
3-25     amended by adding Section 656.026 to read as follows:
3-26           Sec. 656.026.  JOB NOTICE POSTING WAIVER.  A state agency is
 4-1     not required to comply with the requirements of this subchapter or
 4-2     Subchapter A when the agency transfers or reassigns an employee as
 4-3     part of a reorganization or merger mandated by the legislature if
 4-4     the executive head of the agency certifies that the transfer or
 4-5     reassignment is necessary for the proper implementation of the
 4-6     reorganization or merger.
 4-7           SECTION 6.  Subsection (a), Section 658.005, Government Code,
 4-8     is amended to read as follows:
 4-9           (a)  Normal office hours of a state agency are from 8 a.m. to
4-10     5 p.m., Monday through Friday.  These hours are the regular working
4-11     hours for a full-time state employee.  The offices of a state
4-12     agency shall remain open during the noon hour each working day with
4-13     at least one person on duty to accept calls, receive visitors, or
4-14     transact business.
4-15           SECTION 7.  Sections 658.001 and 658.006, Government Code,
4-16     are amended to read as follows:
4-17           Sec. 658.001.  Definitions.  In this chapter:
4-18                 (1)  "Full-time state employee" means a person employed
4-19     by a state agency who, if not participating in a voluntary work
4-20     reduction program under Section 658.003, is required to work for
4-21     the agency not less than 40 hours a week.
4-22                 (2)  "State agency" means:
4-23                       (A)  a board, commission, department,
4-24     institution, office, or other agency in the executive branch of
4-25     state government that is created by the constitution or a statute
4-26     of this state, including an institution of higher education as
 5-1     defined by Section 61.003, Education Code; or
 5-2                       (B)  the Supreme Court of Texas, the Texas Court
 5-3     of Criminal Appeals, a court of appeals, or other agency in the
 5-4     judicial branch.
 5-5           Sec. 658.006.  STAGGERED WORKING HOURS[; CAPITOL AREA IN
 5-6     AUSTIN].  Normal working hours for employees of a state agency [in
 5-7     the Capitol area in Austin] may be staggered [as authorized by the
 5-8     General Appropriations Act] for traffic regulation or public
 5-9     safety.
5-10           SECTION 8.  Chapter 658, Government Code, is amended by
5-11     adding Sections 658.008, 658.009, and 658.010 to read as follows:
5-12           Sec. 658.008.  MEMBERS OF NATIONAL GUARD OR RESERVE.  To
5-13     facilitate participation in military duties by state employees,
5-14     each state agency shall adjust the work schedule of any employee
5-15     who is a member of the Texas National Guard or the United States
5-16     Armed Forces Reserve so that two of the employee's days off work
5-17     each month coincide with two days of military duty to be performed
5-18     by the employee.
5-19           Sec. 658.009.  PART-TIME EMPLOYMENT.  A state agency may fill
5-20     a regular full-time position with one or more part-time employees:
5-21                 (1)  without regard to whether the position is subject
5-22     to or exempt from the state's position classification plan; and
5-23                 (2)  subject to Section 659.019.
5-24           Sec. 658.010.  PLACE WHERE WORK PERFORMED.  (a)  An employee
5-25     of a state agency shall, during normal office hours, conduct agency
5-26     business only at the employee's regular or assigned temporary place
 6-1     of employment unless the employee:
 6-2                 (1)  is travelling; or
 6-3                 (2)  received prior written authorization from the
 6-4     administrative head of the employing state agency to perform work
 6-5     elsewhere.
 6-6           (b)  The employee's personal residence may not be considered
 6-7     the employee's regular or assigned temporary place of employment
 6-8     without prior written authorization from the administrative head of
 6-9     the employing state agency.
6-10           SECTION 9.  Section 659.002, Government Code, is amended by
6-11     adding Subsection (d) to read as follows:
6-12           (d)  The state shall withhold money from salaries and wages
6-13     paid to state officers and employees in accordance with applicable
6-14     federal law, including federal law relating to withholding for
6-15     purposes of the federal income tax.  The state shall make any
6-16     required employer contributions in accordance with applicable
6-17     federal law.  The comptroller shall make payments in accordance
6-18     with this subsection.
6-19           SECTION 10.  Subchapter A, Chapter 659, Government Code, is
6-20     amended by adding Sections 659.004, 659.005, and 659.006 to read as
6-21     follows:
6-22           Sec. 659.004.  PAYROLL AND PERSONNEL REPORTING.  (a)  In this
6-23     section, "state agency" has the meaning assigned by Section
6-24     658.001.
6-25           (b)  The comptroller, in consultation with the state auditor,
6-26     shall adopt rules that prescribe uniform procedures for payroll and
 7-1     personnel reporting for all state agencies and that are designed
 7-2     to:
 7-3                 (1)  facilitate the auditing of payrolls;
 7-4                 (2)  facilitate a classification compliance audit under
 7-5     Chapter 654;
 7-6                 (3)  assure conformity with this chapter and the
 7-7     General Appropriations Act; and
 7-8                 (4)  provide the legislative audit committee with
 7-9     current information on employment and wage rate practices in state
7-10     government.
7-11           Sec. 659.005.  WITNESS FEES; JURY SERVICE.  (a)  A deduction
7-12     may not be made from the salary or wages of a state employee
7-13     because the employee is called for jury service, including a
7-14     deduction for any fee or compensation the employee receives for the
7-15     jury service.
7-16           (b)  A state officer or employee who appears as a witness in
7-17     an official capacity in a judicial proceeding or legislative
7-18     hearing may not accept or receive a witness fee for the appearance.
7-19           (c)  A state officer or employee who appears as a witness, in
7-20     a capacity other than as a state officer or employee, in a judicial
7-21     proceeding or legislative hearing to testify from personal
7-22     knowledge concerning matters related to the proceeding or hearing
7-23     is entitled to receive any customary witness fees for the
7-24     appearance.
7-25           (d)  A state officer or employee who appears as an expert
7-26     witness in a judicial proceeding or legislative hearing may accept
 8-1     compensation for the appearance only if the person is not also
 8-2     compensated by the state for the person's time in making the
 8-3     appearance and may accept reimbursement for travel expenses only if
 8-4     the expenses are not reimbursed by the state.  For purposes of this
 8-5     subsection, paid leave is not considered time compensated by the
 8-6     state.
 8-7           (e)  A state  officer or employee may receive reimbursement
 8-8     for travel and a per diem or reimbursement for expenses connected
 8-9     to an appearance in an official capacity as a witness in a judicial
8-10     proceeding or legislative hearing only from the state or the
8-11     judicial body, but not from both the state and the judicial body.
8-12           Sec. 659.006.  ADJUSTMENT FOR INACCURATE PAYMENT.  The
8-13     comptroller by rule shall prescribe procedures for state agencies
8-14     to follow in making adjustments to payrolls for the pay period
8-15     immediately following the period in which an inaccurate payment or
8-16     deduction is made or in which other error occurs.
8-17           SECTION 11.  The heading to Subchapter B, Chapter 659,
8-18     Government Code, is amended to read as follows:
8-19                 SUBCHAPTER B.  SALARY AMOUNTS; OVERTIME AND
8-20                              COMPENSATORY TIME
8-21           SECTION 12.  Subchapter B, Chapter 659, Government Code, is
8-22     amended by adding Sections 659.015, 659.016, 659.017, 659.018,
8-23     659.019, 659.020, 659.021, 659.022, and 659.023 to read as follows:
8-24           Sec. 659.015.  OVERTIME COMPENSATION FOR EMPLOYEES SUBJECT TO
8-25     FAIR LABOR STANDARDS ACT.  (a)  This section applies only to a
8-26     state employee who is subject to the overtime provisions of the
 9-1     federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et
 9-2     seq.) and who is not an employee of the legislature, including an
 9-3     employee of the lieutenant governor, or of a legislative agency.
 9-4           (b)  The employee is entitled to compensation for overtime as
 9-5     provided by federal law and this section.  To the extent that this
 9-6     section and federal law prescribe a different rule for the same
 9-7     circumstance, federal law controls without regard to whether this
 9-8     section or federal law prescribes a stricter rule.
 9-9           (c)  An employee who is required to work hours in excess of
9-10     40 hours in a workweek is entitled to compensation for the excess
9-11     hours either by:
9-12                 (1)  the agency allowing or requiring the employee to
9-13     take compensatory time off at the rate of 1-1/2 hours off for each
9-14     hour of overtime; or
9-15                 (2)  at the discretion of the employing agency, in
9-16     cases in which granting compensatory time off is impractical, the
9-17     employee receiving pay for the overtime at the rate equal to 1-1/2
9-18     times the employee's regular rate of pay.
9-19           (d)  Holidays or other paid leave taken during a workweek are
9-20     not counted as hours worked in computing the number of overtime
9-21     hours under Subsection (c) or (e).
9-22           (e)  An employee may not accumulate more than 240 hours of
9-23     overtime credit that may be taken as compensatory leave under
9-24     Subsection (c)(1), except that an employee engaged in a public
9-25     safety activity, an emergency response activity, or a seasonal
9-26     activity may accumulate, in accordance with 29 U.S.C. Section
 10-1    207(o)(3)(A), not more than 480 hours of overtime credit that may
 10-2    be taken as compensatory leave under Subsection (c)(1).  An
 10-3    employee must be paid at the rate prescribed by Subsection (c)(2)
 10-4    for the number of overtime hours the employee works that cause the
 10-5    employee to exceed the amount of overtime credit the employee may
 10-6    accumulate.  In this subsection, "overtime credit" means the number
 10-7    of hours that is computed by multiplying the number of overtime
 10-8    hours worked by 1-1/2.
 10-9          (f)  When an employee does not work more than 40 hours in a
10-10    workweek but the number of hours worked plus the number of hours of
10-11    holiday or other paid leave taken during the workweek exceeds 40
10-12    hours, the employee is entitled to compensatory time off at the
10-13    rate of one hour off for each of the excess hours.  When an
10-14    employee does work 40 or more hours in a workweek and in addition
10-15    takes holiday or other paid leave during the workweek, and the
10-16    total number of hours worked still exceeds 40 after subtracting the
10-17    hours compensable under Subsections (c)-(e), the employee is
10-18    entitled to compensatory time off at the rate of one hour off for
10-19    each of the remaining hours in excess of 40.  When an employee does
10-20    not work more than 40 hours in a workweek and the number of hours
10-21    worked plus the number of hours of holiday or other paid leave
10-22    taken during the week does not exceed 40 hours, the employee may
10-23    not accrue compensatory time for the week under this section.
10-24          (g)  Compensatory time off to which an employee is entitled
10-25    under Subsection (f) must be taken during the 12-month period
10-26    following the end of the workweek in which the compensatory time
 11-1    was accrued or it lapses.  An employee may not be paid for that
 11-2    compensatory time.  However, an employee of an institution of
 11-3    higher education as defined by Section 61.003, Education Code, or
 11-4    an employee engaged in a public safety activity, including highway
 11-5    construction and maintenance or an emergency response activity, may
 11-6    be paid at the employee's regular rate of pay for that compensatory
 11-7    time if the employer determines that taking the compensatory time
 11-8    off would disrupt normal teaching, research, or other critical
 11-9    functions.
11-10          (h)  Exceptions to the workweek overtime computation for
11-11    public safety, emergency response, or seasonal situations shall be
11-12    made in accordance with the federal Fair Labor Standards Act of
11-13    1938 (29 U.S.C. Section 201 et seq.).
11-14          Sec. 659.016.  OVERTIME COMPENSATION FOR EMPLOYEES NOT
11-15    SUBJECT TO FAIR LABOR STANDARDS ACT; REDUCTIONS IN PAY.  (a)  This
11-16    section applies only to a state employee who is not subject to the
11-17    overtime provisions of the federal Fair Labor Standards Act of 1938
11-18    (29 U.S.C. Section 201 et seq.) and who is not an employee of the
11-19    legislature, including an employee of the lieutenant governor, or
11-20    of a legislative agency.
11-21          (b)  When the sum of hours worked plus holiday or other paid
11-22    leave taken by a full-time employee during a workweek exceeds 40
11-23    hours, and not otherwise, the employee may be allowed to accrue
11-24    compensatory time for the number of hours that exceeds 40 hours.
11-25    When the sum of hours worked plus holiday or other paid leave taken
11-26    by a part-time employee during a workweek exceeds the number of
 12-1    hours that the part-time employee is designated to work during the
 12-2    workweek, and not otherwise, the employee may be allowed to accrue
 12-3    compensatory time for the number of hours that exceeds the number
 12-4    of hours that the employee is designated to work during the
 12-5    workweek.
 12-6          (c)  An employee who is exempt as an executive, professional,
 12-7    or administrative employee under 29 U.S.C. Section 213(a)(1) may be
 12-8    allowed compensatory time off during the 12-month period following
 12-9    the end of the workweek in which the time that exceeds 40 hours
12-10    under Subsection (b) was accrued, at a rate not to exceed one hour
12-11    of compensatory time off for each hour of time that exceeds 40
12-12    hours under Subsection (b) accrued.
12-13          (d)  In accordance with 29 C.F.R. Section 541.118 and subject
12-14    to that section's exceptions as described by this section, an
12-15    employee who is exempt as an executive, professional, or
12-16    administrative employee under 29 U.S.C. Section 213(a)(1) is
12-17    entitled to receive full salary for any week in which the employee
12-18    performs work without regard to the number of days and hours
12-19    worked.  This is also subject to the general rule that an employee
12-20    need not be paid for any workweek in which the employee performs no
12-21    work.
12-22          (e)  A deduction may be made from the salary of an employee
12-23    who is exempt as an executive, professional, or administrative
12-24    employee under 29 U.S.C. Section 213(a)(1) if:
12-25                (1)  the employee is not at work for a full day or
12-26    longer for personal reasons other than sickness, accident, jury
 13-1    duty, attendance as a witness at a judicial proceeding, or
 13-2    temporary military leave;
 13-3                (2)  the employee is not at work for a full day or
 13-4    longer because of sickness or disability, including sickness or
 13-5    disability covered by workers' compensation benefits, and the
 13-6    employee's paid sick leave or workers' compensation benefits have
 13-7    been exhausted;
 13-8                (3)  the deduction is a penalty imposed for a violation
 13-9    of a significant safety rule relating to prevention of serious
13-10    danger in the workplace to other persons, including other
13-11    employees; or
13-12                (4)  in accordance with the special provisions
13-13    applicable to executive, professional, or administrative employees
13-14    of public agencies set forth in 29 C.F.R. Section 541.5d, the
13-15    employee is not at work for less than one day for personal reasons
13-16    or because of illness or injury and accrued leave is not used by
13-17    the employee because:
13-18                      (A)  permission to use accrued leave was not
13-19    sought or was denied;
13-20                      (B)  accrued leave has been exhausted; or
13-21                      (C)  the employee chooses to use leave without
13-22    pay.
13-23          (f)  In accordance with 29 C.F.R. Section 541.5d, a deduction
13-24    from the pay of an executive, professional, or administrative
13-25    employee because of an absence from work caused by a furlough
13-26    related to the budget does not affect the employee's status as an
 14-1    employee paid on a salary basis, except for any workweek in which
 14-2    the furlough occurs and for which the employee's pay is accordingly
 14-3    reduced.
 14-4          (g)  If a deduction is made from an employee's salary in
 14-5    violation of United States Department of Labor regulations, the
 14-6    employee is entitled to reimbursement of the amount that should not
 14-7    have been deducted.
 14-8          (h)  An employee who is not subject to the federal Fair Labor
 14-9    Standards Act of 1938 under 29 U.S.C. Section 203(e)(2)(C) because
14-10    the employee is a staff member, appointee, or immediate adviser of
14-11    an elected officeholder may be allowed compensatory time off under
14-12    the terms and conditions determined by the officeholder.
14-13          (i)  An employee covered by this section may not be paid for
14-14    any unused compensatory time.
14-15          Sec. 659.017.  OVERTIME COMPENSATION FOR LEGISLATIVE
14-16    EMPLOYEES.  Consistent with the requirements of the federal Fair
14-17    Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),
14-18    overtime pay and compensatory time off for employees of the
14-19    legislative branch, including employees of the lieutenant governor,
14-20    are determined:
14-21                (1)  for employees of the house of representatives or
14-22    the senate, by the presiding officer of the appropriate house of
14-23    the legislature;
14-24                (2)  for employees of an elected officeholder, by the
14-25    employing officeholder; and
14-26                (3)  for employees of a legislative agency, by the
 15-1    administrative head of the agency.
 15-2          Sec. 659.018.  COMPENSATORY TIME:  PLACE WHERE WORK
 15-3    PERFORMED.  Except under circumstances specified in the General
 15-4    Appropriations Act, an employee of a state agency as defined by
 15-5    Section 658.001 may not, for hours worked during any calendar week,
 15-6    accumulate compensatory time off under Section 659.015(f) or
 15-7    659.016 to the extent that the hours are attributable to work
 15-8    performed at a location other than the employee's regular or
 15-9    temporarily assigned place of employment.  The employee's personal
15-10    residence may not be considered the employee's regular or
15-11    temporarily assigned place of employment.
15-12          Sec. 659.019.  PART-TIME AND HOURLY EMPLOYMENT.  (a)  In
15-13    computing the salary of a part-time or hourly employee, the rate of
15-14    pay must be proportional to the rate authorized by the General
15-15    Appropriations Act for full-time employment in the same classified
15-16    position, or if the position is not under the state's position
15-17    classification plan, for full-time employment in the applicable
15-18    exempt position.
15-19          (b)  A part-time employee is subject to Subchapter K and to
15-20    the leave without pay provisions of Section 659.085.
15-21          (c)  The comptroller may adopt rules to determine the hourly
15-22    rate of an employee paid on an hourly basis.
15-23          Sec. 659.020.  SALARY SUPPLEMENTATION.  A state employee
15-24    employed by a state agency as defined by Section 658.001 whose
15-25    position is classified under Chapter 654 or whose exempt position
15-26    is funded by the General Appropriations Act may not receive a
 16-1    salary supplement from any source unless a specific grant of
 16-2    authority to do so is provided by the General Appropriations Act or
 16-3    other law.
 16-4          Sec. 659.021.  ADMINISTRATIVE HEAD OF AGENCY.  The
 16-5    administrative head of a state agency as defined by Section 658.001
 16-6    whose salary as administrative head is established by the General
 16-7    Appropriations Act may not receive a salary higher than that
 16-8    established salary, even if the administrative head performs duties
 16-9    assigned to a position title classified in the state's position
16-10    classification plan that is assigned to a salary group that would
16-11    pay a higher salary, unless the General Appropriations Act
16-12    specifically provides that a higher salary may be received.
16-13          Sec. 659.022.  USE OF COMPENSATORY TIME BEFORE LAPSING.
16-14    (a)  If an employee of a state agency as defined by Section 658.001
16-15    who wishes to use accrued compensatory time that is subject to
16-16    lapsing submits a written request for permission to use the accrued
16-17    compensatory time to the employing state agency not later than the
16-18    90th day before the date on which the accrued compensatory time
16-19    will lapse, the employing state agency shall:
16-20                (1)  approve in writing the employee's request; or
16-21                (2)  provide the employee with an alternate date on
16-22    which the employee may use the compensatory time.
16-23          (b)  The employee may request permission to use the accrued
16-24    compensatory time within 90 days of the date on which it will
16-25    lapse, and the employing agency is encouraged to reasonably
16-26    accomodate the employee's use of the accrued compensatory time
 17-1    before it lapses.
 17-2          Sec. 659.023.  COMPENSATORY TIME POLICY.  (a)  A state agency
 17-3    shall notify its employees annually of the state's policy on
 17-4    compensatory time.
 17-5          (b)  A state agency shall accomodate to the extent
 17-6    practicable an employee's request to use accrued compensatory time.
 17-7          SECTION 13.  Section 659.081, Government Code, is amended to
 17-8    read as follows:
 17-9          Sec. 659.081.  PAYMENT ONCE A MONTH.  Except as provided by
17-10    this subchapter or the General Appropriations Act, annual salaries
17-11    for state officers and employees shall be paid once a month.
17-12          SECTION 14.  Section 659.082, Government Code, is amended to
17-13    read as follows:
17-14          Sec. 659.082.  Payment Twice a Month.  (a)  An employee is
17-15    entitled to be paid employment compensation twice a month if:
17-16                (1)  the employee is employed by:
17-17                      (A)  the Texas Department of Mental Health and
17-18    Mental Retardation;
17-19                      (B)  the Texas Department of Transportation;
17-20                      (C)  the Texas Department of Human Services;
17-21                      (D)  the Texas Workforce Commission;
17-22                      (E)  the Department of Public Safety; or
17-23                      (F)  any other state agency designated by the
17-24    comptroller;
17-25                (2)  the employee holds a classified position under the
17-26    state's position classification plan;
 18-1                (3)  the employee's position is classified below salary
 18-2    group A12 [12] under [the] classification salary Schedule A
 18-3    [schedule] in the General Appropriations Act;
 18-4                (4)  the employing state agency satisfies the
 18-5    comptroller's requirements relating to the payment of compensation
 18-6    twice a month; and
 18-7                (5)  at least 30 percent of the eligible employees of
 18-8    the agency choose to be paid twice a month.
 18-9          (b)  Employees of an institution of higher education as
18-10    defined by Section 61.003, Education Code, may be paid twice a
18-11    month at the election of the employing institution of higher
18-12    education.
18-13          SECTION 15.  Subchapter F, Chapter 659, Government Code, is
18-14    amended by adding Section 659.085 to read as follows:
18-15          Sec. 659.085.  DETERMINING AMOUNT OF MONTHLY OR HOURLY PAY;
18-16    PROPORTIONATE REQUIREMENT FOR PART-TIME PAY.  (a)  The amount of
18-17    monthly salary for an annual employee who maintains a 40-hour
18-18    workweek and is covered under Chapter 658 is computed in accordance
18-19    with the General Appropriations Act and equitable rules adopted by
18-20    the comptroller.
18-21          (b)  For purposes of partial payment or other applicable
18-22    situations, an employee's equivalent hourly rate of pay for a given
18-23    month is computed in accordance with the General Appropriations Act
18-24    and equitable rules adopted by the comptroller.  Alternatively, an
18-25    institution of higher education as defined by Section 61.003,
18-26    Education Code, may compute an employee's equivalent hourly rate of
 19-1    pay for a given month by dividing the employee's annual salary by
 19-2    2080, which is the number of working hours in the standard work
 19-3    year.  This subsection applies only to full-time employees
 19-4    described by Subsection (a) and to part-time salaried employees.
 19-5          (c)  When an employee is on leave without pay, compensation
 19-6    for the pay period will be reduced by an amount computed in
 19-7    accordance with the General Appropriations Act and equitable rules
 19-8    adopted by the comptroller.
 19-9          (d)  An agency that may contract with its employees for
19-10    employment for less than a 12-month period may make equal monthly
19-11    salary payments under the contract during the contract period or
19-12    during the fiscal year in accordance with the General
19-13    Appropriations Act and equitable rules adopted by the comptroller.
19-14          SECTION 16.  Chapter 659, Government Code, is amended by
19-15    adding Subchapter K to read as follows:
19-16          SUBCHAPTER K.  PROMOTIONS, RECLASSIFICATIONS, AND OTHER
19-17                           ADJUSTMENTS TO SALARY
19-18          Sec. 659.251.  APPLICABILITY.  (a)  This subchapter applies
19-19    only to a state employee employed in the executive or judicial
19-20    branch of state government.
19-21          (b)  The policies for promotions, demotions, and other
19-22    adjustments to salary for employees of the legislative branch,
19-23    including employees of the lieutenant governor, are determined as
19-24    follows:
19-25                (1)  for employees of either house of the legislature,
19-26    a member of the legislature, or the lieutenant governor, by the
 20-1    presiding officer of the appropriate house of the legislature; and
 20-2                (2)  for employees of a legislative agency, by the
 20-3    administrative head of the agency.
 20-4          Sec. 659.252.  DEFINITION.  In this subchapter, "state
 20-5    agency" means the state department, institution, entity, or other
 20-6    agency in the executive or judicial branch of state government that
 20-7    employs a state employee.
 20-8          Sec. 659.253.  TRANSFER WITHIN AGENCY FROM EXEMPT TO
 20-9    CLASSIFIED POSITION.  (a)  A state employee who moves within a
20-10    state agency from a position exempt from the state's position
20-11    classification plan to a classified position will receive an annual
20-12    salary in the proper salary group not to exceed:
20-13                (1)  the rate for the salary step equal to the
20-14    employee's current exempt salary or the rate for the next higher
20-15    salary step, if moving to a position in a salary group that is
20-16    divided into steps; or
20-17                (2)  the employee's current exempt salary or the
20-18    maximum rate of the new salary group, whichever is lower, if moving
20-19    to a position in a salary group that is not divided into steps.
20-20          (b)  Except as provided by this section, a state agency that
20-21    at any time during a state fiscal biennium pays a state employee an
20-22    exempt salary specifically established in the General
20-23    Appropriations Act may not subsequently during the state fiscal
20-24    biennium pay the employee a greater salary under Salary Schedule A,
20-25    B, or C of the General Appropriations Act.
20-26          (c)  A state agency that pays a state employee an exempt
 21-1    salary specifically established in the General Appropriations Act
 21-2    and that then transfers the employee to a position in which the
 21-3    employee is paid under Salary Schedule A, B, or C of the General
 21-4    Appropriations Act may not grant a merit salary increase to the
 21-5    employee until at least six months after the date that the agency
 21-6    begins to pay the employee under Salary Schedule A, B, or C of the
 21-7    General Appropriations Act.
 21-8          (d)  The Legislative Budget Board and the governor together
 21-9    may approve an exception to the salary limitations prescribed by
21-10    this section for a state employee:
21-11                (1)  on receiving the employing state agency's
21-12    application for the exception; and
21-13                (2)  if the employee's job responsibilities with the
21-14    state agency have changed substantially during the state fiscal
21-15    biennium.
21-16          Sec. 659.254.  CLASSIFIED POSITION REALLOCATED OR
21-17    RECLASSIFIED TO DIFFERENT SALARY GROUP.  (a)  This section applies
21-18    only to positions classified under the state's position
21-19    classification plan.
21-20          (b)  In this section:
21-21                (1)  "higher salary group" means a salary group with a
21-22    higher minimum salary rate; and
21-23                (2)  "lower salary group" means a salary group with a
21-24    lower minimum salary rate.
21-25          (c)  An employee whose classified position is reallocated by
21-26    the General Appropriations Act or reclassified under Chapter 654 to
 22-1    a higher salary group will be paid at the minimum salary rate in
 22-2    the higher salary group or at the salary rate the employee would
 22-3    have received without the reallocation or reclassification,
 22-4    whichever rate is higher, except:
 22-5                (1)  to maintain desirable salary relationships among
 22-6    employees in the affected positions, the salary may be adjusted not
 22-7    more than:
 22-8                      (A)  two steps higher, if the employee's salary
 22-9    group is divided into steps by the General Appropriations Act; or
22-10                      (B)  6.8 percent higher, if the employee's salary
22-11    group is not divided into steps by the General Appropriations Act;
22-12    and
22-13                (2)  the employee may not advance to a step number in
22-14    the new salary group higher than the step number rate held before
22-15    the reallocation or reclassification, if the employee's salary
22-16    group is divided into steps by the General Appropriations Act.
22-17          (d)  An employee whose classified position is reallocated by
22-18    the General Appropriations Act or reclassified under Chapter 654 to
22-19    a lower salary group will be paid at the salary rate that the
22-20    employee would have received had the position not been reallocated
22-21    or reclassified, not to exceed the maximum rate of the lower salary
22-22    group.
22-23          Sec. 659.255.  MERIT SALARY INCREASES; ONE-TIME MERIT
22-24    PAYMENTS.  (a)  This section applies only to positions classified
22-25    under the state's position classification plan.
22-26          (b)  A state agency administrator may grant merit salary
 23-1    increases including one-time merit payments to employees
 23-2    compensated under Salary Schedules A and B of the General
 23-3    Appropriations Act whose job performance and productivity are
 23-4    consistently above that normally expected or required.  For
 23-5    classified employees compensated under Salary Schedule A of the
 23-6    General Appropriations Act, a merit increase involves an increase
 23-7    in an employee's salary to a higher step rate in the same salary
 23-8    group.  For classified employees compensated under Salary Schedule
 23-9    B of the General Appropriations Act, a merit increase involves an
23-10    increase in an employee's salary to a higher rate within the range
23-11    of the same salary group.  Merit increases including one-time merit
23-12    payments are subject to the restrictions prescribed by Subsections
23-13    (c)-(e).
23-14          (c)  The comptroller shall prescribe accounting and reporting
23-15    procedures as necessary to ensure the availability of information
23-16    reflecting each state agency's use of merit salary increases,
23-17    including one-time merit payments.
23-18          (d)  Merit salary increases including one-time merit payments
23-19    shall be applied throughout the range of classified salary groups
23-20    used by each state agency.
23-21          (e)  For an employee to be eligible for a merit salary
23-22    increase or a one-time merit payment, the following additional
23-23    criteria must be met:
23-24                (1)  the employee must have been employed by the state
23-25    agency for at least six continuous months prior to the award of the
23-26    increase or payment;
 24-1                (2)  at least six months must have elapsed since the
 24-2    employee's last promotion, enhanced compensation award authorized
 24-3    by the General Appropriations Act, one-time merit payment, or merit
 24-4    salary increase at the agency; and
 24-5                (3)  agency criteria for granting merit salary
 24-6    increases or one-time merit payments must include specific criteria
 24-7    and documentation to substantiate the granting of a merit increase
 24-8    or one-time merit payment.
 24-9          Sec. 659.256.  PROMOTIONS.  (a)  This section applies only to
24-10    positions classified under the state's position classification
24-11    plan.
24-12          (b)  A promotion is an employee's change in duty assignment
24-13    within a state agency from one classified position to another
24-14    classified position that:
24-15                (1)  is in a salary group with a higher minimum salary
24-16    rate;
24-17                (2)  requires higher qualifications, such as greater
24-18    skill or longer experience; and
24-19                (3)  involves a higher level of responsibility.
24-20          (c)  When an employee is promoted to a position in a higher
24-21    salary group in Salary Schedule A of the General Appropriations
24-22    Act, the employee shall receive a salary rate at least one step
24-23    higher than the employee's salary rate before promotion or the
24-24    minimum rate of the new salary range, whichever is higher, and may,
24-25    at the discretion of the state agency administrator, receive an
24-26    annual salary rate up to and including the maximum rate of the new
 25-1    salary range.  When an employee is promoted from a position in
 25-2    Salary Schedule B or C of the General Appropriations Act to a
 25-3    position in Salary Schedule A of the General Appropriations Act,
 25-4    the employee shall receive a step rate that is at least one step
 25-5    above the rate the employee received before promotion or the
 25-6    minimum rate of the new salary range, whichever is higher, and may,
 25-7    at the discretion of the state agency administrator, receive an
 25-8    annual rate up to and including the maximum rate of the new salary
 25-9    range.
25-10          (d)  When an employee is promoted in Salary Schedule B of the
25-11    General Appropriations Act or from Salary Schedule A or C of the
25-12    General Appropriations Act to Salary Schedule B of the General
25-13    Appropriations Act, the employee shall receive a salary rate that
25-14    is at least 3.4 percent higher than the employee's salary before
25-15    promotion or the minimum rate of the new salary range, whichever is
25-16    higher, and may, at the discretion of the state agency
25-17    administrator, receive an annual rate up to and including the
25-18    maximum rate of the new salary range.
25-19          (e)  When an employee is promoted in Salary Schedule C of the
25-20    General Appropriations Act or from Salary Schedule A or B of the
25-21    General Appropriations Act to Salary Schedule C of the General
25-22    Appropriations Act, the employee shall receive the rate set in the
25-23    schedule for that salary group.
25-24          (f)  Notwithstanding the other provisions of this section, an
25-25    employee whose salary prior to promotion exceeds the maximum rate
25-26    of the employee's assigned salary group may not receive more than
 26-1    the maximum rate of the new salary group, even if the increase is
 26-2    less than one step in Salary Schedule A of the General
 26-3    Appropriations Act or 3.4 percent in Salary Schedule B of the
 26-4    General Appropriations Act.
 26-5          Sec. 659.257.  DEMOTIONS.  (a)  This section applies only to
 26-6    positions classified under the state's position classification
 26-7    plan.
 26-8          (b)  A demotion is an employee's change in duty assignment
 26-9    within a state agency from one classified position to another
26-10    classified position that is in a salary group with a lower minimum
26-11    salary rate.
26-12          (c)  When an employee is demoted to a position in a lower
26-13    salary group in Salary Schedule A of the General Appropriations
26-14    Act, the employee will receive a salary rate at least one step
26-15    below the rate the employee received before demotion.  When an
26-16    employee is demoted from a position in Salary Schedule B or C of
26-17    the General Appropriations Act to a position in Salary Schedule A
26-18    of the General Appropriations Act, the employee shall receive a
26-19    step rate that is at least 3.4 percent below the rate the employee
26-20    received before demotion.
26-21          (d)  When an employee is demoted within Salary Schedule B of
26-22    the General Appropriations Act or from Salary Schedule A or C of
26-23    the General Appropriations Act to Salary Schedule B of the General
26-24    Appropriations Act, the employee will receive a salary rate of at
26-25    least 3.4 percent below the rate the employee received before
26-26    demotion.
 27-1          (e)  When an employee is demoted to a position in a lower
 27-2    salary group in Salary Schedule C of the General Appropriations Act
 27-3    or from Salary Schedule A or B of the General Appropriations Act to
 27-4    Salary Schedule C of the General Appropriations Act, the employee
 27-5    will receive the rate set in the schedule for that salary group.
 27-6          (f)  As exceptions to the other provisions in this section,
 27-7    an agency is not required to reduce an employee's salary if:
 27-8                (1)  the employee accepts a position in another
 27-9    classification in a lower salary group in lieu of a layoff under a
27-10    reduction in force; or
27-11                (2)  the employee is selected for another position in a
27-12    classification in a lower salary group as a result of applying for
27-13    the position.
27-14          (g)  An employee demoted in the manner described by
27-15    Subsection (f) may not receive a salary rate that exceeds the
27-16    maximum rate of the lower salary group.  In addition, an employee
27-17    demoted as described by Subsection (f)(1) may not receive a salary
27-18    rate that exceeds the employee's salary rate before the demotion.
27-19          Sec. 659.258.  SALARY REDUCTION FOR DISCIPLINARY REASONS.
27-20    (a)  This section applies only to positions classified under the
27-21    state's position classification plan.
27-22          (b)  The administrative head of a state agency may reduce an
27-23    employee's salary for disciplinary reasons, if warranted by the
27-24    employee's performance, to a rate in the employee's designated
27-25    salary group not lower than the minimum rate.  The agency may, as
27-26    the employee's performance improves, restore the employee's pay to
 28-1    any rate that does not exceed the employee's prior salary rate
 28-2    without accounting for the restoration as a merit salary increase.
 28-3          Sec. 659.259.  SALARY LIMITED TO MAXIMUM GROUP RATE.
 28-4    (a)  This section applies only to positions classified under the
 28-5    state's position classification plan.
 28-6          (b)  A salary adjustment authorized by this subchapter may
 28-7    not result in an employee's receiving an annual salary that exceeds
 28-8    the maximum rate of the salary group to which the employee's
 28-9    position is allocated.
28-10          (c)  Employees who are paid above the maximum of their job
28-11    class' designated salary group on August 1, 1999, will be allowed
28-12    to maintain their salaries.  However, in no case may they be
28-13    allowed to receive additional salary increases, including
28-14    across-the-board increases and merit increases, including one-time
28-15    merit payments, until the salary maximum for their designated
28-16    salary group encompasses their salary.  These employees must be
28-17    paid in the salary range if they are promoted, demoted, or
28-18    reclassified.
28-19          Sec. 659.260.  TEMPORARY ASSIGNMENT.  (a)  This section
28-20    applies only to an employee whose permanent position is classified
28-21    under the state's position classification plan.
28-22          (b)  To facilitate a state agency's work during an emergency
28-23    or other special circumstance, an employee may:
28-24                (1)  be temporarily assigned to other duties for a
28-25    period not to exceed six months; and
28-26                (2)  receive during the period of reassignment the
 29-1    appropriate rate of pay for the temporary position if the temporary
 29-2    position is classified in a salary group with a higher minimum
 29-3    salary rate.
 29-4          (c)  An employee may not be assigned temporary duties under
 29-5    this section for more than six months during a twelve-month period.
 29-6          (d)  An employee temporarily designated to act as the
 29-7    administrative head of a state agency may continue to receive a
 29-8    salary for a classified position in an amount not to exceed the
 29-9    amount established by the General Appropriations Act for the
29-10    administrative head of the agency.
29-11          (e)  While the employee is temporarily assigned under this
29-12    section, the state agency may not:
29-13                (1)  award a merit salary increase to the employee;
29-14                (2)  promote or demote the employee; or
29-15                (3)  reduce the employee's salary.
29-16          Sec. 659.261.  SALARY CAP.  (a)  The maximum amount a state
29-17    agency spends for merit salary increases in and promotions to
29-18    classified positions during a fiscal year may not exceed, without
29-19    the written approval of the budget division of the governor's
29-20    office and the Legislative Budget Board, the amount computed by
29-21    multiplying the total amount spent by the agency in the preceding
29-22    fiscal year for classified salaries times the percentage set by the
29-23    General Appropriations Act for purposes of this computation.
29-24          (b)  The maximum amount that may be spent for merit salary
29-25    increases in and promotions to classified positions shall be
29-26    computed separately for each year of the state fiscal biennium.
 30-1    Merit salary increases and promotions awarded in the first fiscal
 30-2    year of a biennium do not count against the maximum amount that may
 30-3    be spent for those increases in the second fiscal year of that
 30-4    biennium.
 30-5          (c)  Money spent to pay a salary increase for an employee who
 30-6    is promoted to a classified position title counts against the
 30-7    limitation prescribed by this section only if, as a result of the
 30-8    promotion, the number of agency employees in that position title
 30-9    exceeds the maximum number of agency employees who have been in
30-10    that position title at any time during the preceding six-month
30-11    period.
30-12          (d)  A request to exceed the limitation prescribed by this
30-13    section must be submitted by the governing body of the agency, or
30-14    by the head of the agency if the agency is not governed by a
30-15    multimember governing body, and must include at least:
30-16                (1)  the date on which the governing body or the head
30-17    of the agency approved the request;
30-18                (2)  a statement justifying the need to exceed the
30-19    limitation; and
30-20                (3)  the source of funds to be used to pay the salary
30-21    increases.
30-22          (e)  The comptroller shall prescribe accounting and reporting
30-23    procedures necessary to ensure that the amount spent for merit
30-24    salary increases and promotions does not exceed the limitations
30-25    established by this section.
30-26          SECTION 17.  Subsection (c), Section 661.033, Government
 31-1    Code, is amended to read as follows:
 31-2          (c)  Payment under this section may not be for more than:
 31-3                (1)  all of the state employee's accumulated vacation
 31-4    leave; and
 31-5                (2)  one-half of the state employee's accumulated sick
 31-6    leave or 336 hours of sick leave, whichever is less.
 31-7          SECTION 18.  Section 661.062, Government Code, is amended by
 31-8    amending Subsections (a) and (b) and adding Subsection (f) to read
 31-9    as follows:
31-10          (a)  A state employee who, at any time during the employee's
31-11    lifetime, has accrued six months of continuous state employment and
31-12    who resigns, is dismissed, or otherwise [for any reason] separates
31-13    from state employment is entitled to be paid for the accrued
31-14    balance of the employee's vacation time as of the date of
31-15    separation, if the individual is not reemployed by the state in a
31-16    position under which the employee accrues vacation leave during the
31-17    30-day period immediately following the date of separation from
31-18    state employment.
31-19          (b)  A separation from state employment includes a separation
31-20    in which the employee:
31-21                (1)  leaves one state agency to begin working for
31-22    another state agency, if one or more workdays occur between the two
31-23    employments and the individual is not reemployed by the state in a
31-24    position under which the employee accrues vacation leave during the
31-25    30-day period immediately following the date of separation from
31-26    state employment;
 32-1                (2)  moves from a position in a state agency that
 32-2    accrues vacation time to a position in that agency that does not
 32-3    accrue vacation time, if the agency agrees to pay the employee for
 32-4    the accrued balance of the employee's vacation time;
 32-5                (3)  moves from a position in a state agency that
 32-6    accrues vacation time to a position in another state agency that
 32-7    does not accrue vacation time, if the other state agency refuses to
 32-8    credit the employee for the balance of the employee's vacation time
 32-9    as of the date of the move;
32-10                (4)  moves from a position in a state agency that does
32-11    not accrue vacation time to a position in another state agency that
32-12    does not accrue vacation time, if the other state agency is not
32-13    authorized or refuses to credit the employee for the balance of the
32-14    employee's vacation time as of the date of the move; or
32-15                (5)  holds two or more positions, and separates from
32-16    one that accrues vacation time, if the agency agrees to pay the
32-17    employee for the accrued balance of the employee's vacation time.
32-18          (f)  Payment for accrued vacation leave for employees of the
32-19    legislative branch, including employees of the lieutenant governor,
32-20    is determined as follows:
32-21                (1)  for employees of either house of the legislature,
32-22    a member of the legislature, or the lieutenant governor, by the
32-23    presiding officer of the appropriate house of the legislature; and
32-24                (2)  for employees of a legislative agency, by the
32-25    administrative head of the agency.
32-26          SECTION 19.  Chapter 661, Government Code, is amended by
 33-1    amending Subchapter F and adding Subchapters G and Z to read as
 33-2    follows:
 33-3     SUBCHAPTER F.  GENERAL PROVISIONS FOR VACATION [OTHER CATEGORIES
 33-4                       OF] LEAVE FOR STATE EMPLOYEES
 33-5          Sec. 661.151.  STATE AUDITOR INTERPRETATION.  (a)  The state
 33-6    auditor shall provide a uniform interpretation of this subchapter
 33-7    and Subchapters G and Z.
 33-8          (b)  The state auditor shall report to the governor and the
 33-9    legislature any state agency or institution of higher education
33-10    that practices exceptions to those laws.
33-11          Sec. 661.152.  ENTITLEMENT TO ANNUAL VACATION LEAVE.  (a)  A
33-12    state employee is entitled to a vacation in each fiscal year
33-13    without a deduction in salary, except for a state employee who is:
33-14                (1)  an employee of an institution of higher education
33-15    as defined by Section 61.003, Education Code, who:
33-16                      (A)  is not employed to work at least 20 hours
33-17    per week for a period of at least four and one-half months; or
33-18                      (B)  is employed in a position for which the
33-19    employee is required to be a student as a condition of the
33-20    employment;
33-21                (2)  a faculty member employed for a period of fewer
33-22    than 12 months by an institution of higher education as defined by
33-23    Section 61.003, Education Code; or
33-24                (3)  an instructional employee employed for a period of
33-25    fewer than 12 months by the Texas School for the Blind and Visually
33-26    Impaired, the Texas School for the Deaf, or the Texas Youth
 34-1    Commission.
 34-2          (b)  The amount of vacation accrues and may be taken in
 34-3    accordance with this subchapter.
 34-4          (c)  A part-time employee accrues vacation leave on a
 34-5    proportionate basis.  The maximum amount of vacation leave a
 34-6    part-time employee may carry forward from one fiscal year to the
 34-7    next is also on a proportionate basis.
 34-8          (d)  An employee accrues vacation leave and may carry
 34-9    vacation leave forward from one fiscal year to the next in
34-10    accordance with the following schedule:
34-11                                                      Maximum Hours
34-12                                                     Carried Forward
34-13                                      Hours Accrued  From One Fiscal
34-14                                      Per Month for  Year to the Next
34-15    Employees With Total                 Full-time    for a Full-time
34-16    State Employment of:                 Employment       Employee
34-17    less than 2 years                        7               168
34-18    at least 2 but less than 5 years         8               232
34-19    at least 5 but less than 10 years        9               256
34-20    at least 10 but less than 15 years      10               280
34-21    at least 15 but less than 20 years      12               328
34-22    at least 20 but less than 25 years      14               376
34-23    at least 25 but less than 30 years      16               424
34-24    at least 30 but less than 35 years      18               472
34-25    at least 35 years or more               20               520
34-26          (e)  An employee accrues vacation leave at the applicable
 35-1    rate beginning on the first day of state employment and ending on
 35-2    the last day of state employment.  An employee accrues and is
 35-3    entitled to be credited for one month's vacation leave for each
 35-4    month of employment with the state beginning on the first day of
 35-5    employment with the state and on the first calendar day of each
 35-6    succeeding month of state employment.  An employee who is employed
 35-7    by the state during any part of a calendar month accrues vacation
 35-8    leave entitlement for the entire calendar month.
 35-9          (f)  An employee may not take vacation leave until the
35-10    employee has six months of continuous employment with the state,
35-11    although the employee accrues vacation leave during that period.
35-12          (g)  If an employee's state employment anniversary date
35-13    occurs on the first calendar day of a month, the employee begins to
35-14    accrue vacation leave at a higher rate in accordance with
35-15    Subsection (d) on the first calendar day of the appropriate month.
35-16    Otherwise, the employee begins to accrue vacation leave at the
35-17    higher rate on the first calendar day of the month following the
35-18    anniversary date.  An employee who begins working on the first
35-19    workday of a month in a position that accrues vacation leave is
35-20    considered to have begun working on the first calendar day of the
35-21    month for purposes of this subsection.
35-22          (h)  An employee is entitled to carry forward from one fiscal
35-23    year to the next the net balance of unused accumulated vacation
35-24    leave that does not exceed the maximum number of hours allowed
35-25    under Subsection (d).  All hours of unused accumulated vacation
35-26    leave that may not be carried forward at the end of a fiscal year
 36-1    under this subsection and Subsection (d) shall be credited to the
 36-2    employee's sick leave balance on the first day of the next fiscal
 36-3    year.
 36-4          (i)  In computing the amount of vacation leave taken, time
 36-5    during which an employee is excused from work because of a holiday
 36-6    is not charged against the employee's vacation leave.
 36-7          (j)  An employee who is on paid leave on the first workday of
 36-8    a month may not take vacation leave accrued for that month until
 36-9    the employee has returned to duty.
36-10          (k)  An individual who is reemployed by any state agency in a
36-11    position under which the employee accrues vacation leave within 30
36-12    days after the individual's date of separation from state
36-13    employment is entitled to reinstatement of the unused balance of
36-14    the employee's previously accrued vacation leave.
36-15          Sec. 661.153.  TRANSFER OF VACATION LEAVE BALANCE.  A state
36-16    employee who transfers directly from one state agency to another is
36-17    entitled to credit by the agency to which the employee transfers
36-18    for the unused balance of the employee's accumulated vacation
36-19    leave, if the employee's employment with the state is uninterrupted
36-20    and if the employee is not paid for the leave under Section
36-21    661.062.
36-22          Sec. 661.154.  VACATION LEAVE FOR LEGISLATIVE EMPLOYEES.
36-23    Vacation leave for employees of the legislative branch, including
36-24    employees of the lieutenant governor, is determined as follows:
36-25                (1)  for employees of either house of the legislature,
36-26    a member of the legislature, or the lieutenant governor, by the
 37-1    presiding officer of the appropriate house of the legislature; and
 37-2                (2)  for employees of a legislative agency, by the
 37-3    administrative head of the agency.
 37-4           (Sections 661.155 to 661.200 reserved for expansion
 37-5        SUBCHAPTER G.  GENERAL PROVISIONS FOR SICK LEAVE FOR STATE
 37-6                                 EMPLOYEES
 37-7          Sec. 661.201.  APPLICABILITY.  (a)  Sick leave for employees
 37-8    of the legislative branch, including employees of the lieutenant
 37-9    governor, is determined as follows:
37-10                (1)  for employees of either house of the legislature,
37-11    a member of the legislature, or the lieutenant governor, by the
37-12    presiding officer of the appropriate house of the legislature; and
37-13                (2)  for employees of a legislative agency, by the
37-14    administrative head of the agency.
37-15          (b)  An employee of an institution of higher education as
37-16    defined by Section 61.003, Education Code, is eligible to accrue or
37-17    take paid sick leave under this subchapter only if the employee:
37-18                (1)  is employed to work at least 20 hours per week for
37-19    a period of at least four and one-half months; and
37-20                (2)  is not employed in a position for which the
37-21    employee is required to be a student as a condition of the
37-22    employment.
37-23          Sec. 661.202.  ENTITLEMENT TO SICK LEAVE; GENERAL PROVISIONS
37-24    AND PROCEDURES.  (a)  A state employee is entitled to sick leave
37-25    without a deduction in salary in accordance with this subchapter.
37-26          (b)  An employee accrues sick leave beginning on the first
 38-1    day of state employment and ending on the last day of state
 38-2    employment.  An employee is entitled to be credited for one month's
 38-3    accrual of sick leave at the rate specified by Subsection (c) for
 38-4    each month of employment with the state beginning on the first day
 38-5    of employment with the state and on the first calendar day of each
 38-6    succeeding month of state employment.
 38-7          (c)  Sick leave entitlement for a full-time employee accrues
 38-8    at the rate of eight hours for each month of state employment.  A
 38-9    part-time employee accrues sick leave on a proportionate basis.  An
38-10    employee who is employed by the state during any part of a calendar
38-11    month accrues sick leave entitlement for the entire calendar month.
38-12    Sick leave accumulates with the unused amount of sick leave carried
38-13    forward each month.
38-14          (d)  Sick leave with pay may be taken when sickness, injury,
38-15    or pregnancy and confinement prevent the employee's performance of
38-16    duty or when the employee is needed to care for and assist a member
38-17    of the employee's immediate family who is sick.  For purposes of
38-18    taking regular sick leave with pay, the following persons are
38-19    considered to be members of the employee's immediate family:
38-20                (1)  an individual who resides in the same household as
38-21    the employee and is related to the employee by kinship, adoption,
38-22    or marriage;
38-23                (2)  a foster child of the employee who resides in the
38-24    same household as the employee and who is under the conservatorship
38-25    of the Department of Protective and Regulatory Services; and
38-26                (3)  a minor child of the employee, regardless of
 39-1    whether the child lives in the same household.
 39-2          (e)  An employee's use of sick leave to care for and assist
 39-3    members of the employee's family who are not described by
 39-4    Subsection (d) is strictly limited to the time necessary to provide
 39-5    care and assistance to a spouse, child, or parent of the employee
 39-6    who needs the care and assistance as a direct result of a
 39-7    documented medical condition.
 39-8          (f)  An employee who must be absent from duty because of
 39-9    sickness, injury, or pregnancy and confinement shall notify the
39-10    employee's supervisor or have the supervisor notified of that fact
39-11    at the earliest practicable time.
39-12          (g)  To be eligible to take accumulated sick leave without a
39-13    deduction in salary during a continuous period of more than three
39-14    working days, an employee absent due to sickness, injury, or
39-15    pregnancy and confinement shall send to the administrative head of
39-16    the employing agency a doctor's certificate showing the cause or
39-17    nature of the condition or another written statement of the facts
39-18    concerning the condition that is acceptable to the administrative
39-19    head.  The administrative head of an agency may require a doctor's
39-20    certificate or other written statement of the facts for sick leave
39-21    without a deduction in salary taken during a continuous period of
39-22    three or fewer working days.
39-23          (h)  On returning to duty after taking sick leave, the
39-24    employee shall without delay complete the prescribed application
39-25    for sick leave and send the application in the manner prescribed by
39-26    the agency to the appropriate authority for approving the
 40-1    application.
 40-2          (i)  The administrative head of an agency that is in
 40-3    compliance with Subsection (j) may authorize an exception to the
 40-4    amount of sick leave an employee may take after a review of the
 40-5    individual's particular circumstances.  A statement of all
 40-6    authorized exceptions and the reasons for the exceptions shall be
 40-7    attached to the state agency's duplicate payroll voucher for the
 40-8    payroll period affected by the authorized exceptions.
 40-9          (j)  A state agency shall file a written statement with the
40-10    state auditor covering the policies and procedures for an extension
40-11    of leave under Subsection (i) and shall make the statement
40-12    available to all agency employees.
40-13          (k)  An employee who is on leave on the first day of a month
40-14    may not use the sick leave that the employee accrues for that month
40-15    until after the employee returns to duty.
40-16          Sec. 661.203.  FACULTY AT INSTITUTIONS OF HIGHER EDUCATION.
40-17    A faculty member at an institution of higher education as defined
40-18    by Section 61.003, Education Code, must submit prescribed leave
40-19    forms for all sick leave the faculty member takes if the absence
40-20    occurs during the normal workday for regular employees, even if no
40-21    classes are missed.
40-22          Sec. 661.204.  TRANSFER OF SICK LEAVE BALANCE.  A state
40-23    employee who transfers directly from one state agency to another is
40-24    entitled to credit by the agency to which the employee transfers
40-25    for the unused balance of the employee's accumulated sick leave, if
40-26    the employee's employment with the state is uninterrupted.
 41-1          Sec. 661.205.  RESTORATION OF SICK LEAVE ON REEMPLOYMENT IN
 41-2    CERTAIN CIRCUMSTANCES.  (a)  An employee who separates from
 41-3    employment with the state under a formal reduction in force is
 41-4    entitled to have the employee's sick leave balance restored if the
 41-5    employee is reemployed by the state within 12 months after the end
 41-6    of the month in which the employee separates from state employment.
 41-7          (b)  An employee who separates from employment with the state
 41-8    for a reason other than that described by Subsection (a) is
 41-9    entitled to have the employee's sick leave balance restored if:
41-10                (1)  the employee is reemployed by the same state
41-11    agency or institution of higher education within 12 months after
41-12    the end of the month in which the employee separates from state
41-13    employment, but only if there has been a break in employment with
41-14    the state of at least 30 calendar days; or
41-15                (2)  the employee is reemployed by a different state
41-16    agency or institution of higher education within 12 months after
41-17    the end of the month in which the employee separates from state
41-18    employment.
41-19          Sec. 661.206.  PARENT-TEACHER CONFERENCE:  USE OF SICK LEAVE.
41-20    (a)  This section applies to an employee who is a parent of a child
41-21    who is a student attending a grade from prekindergarten through
41-22    12th grade.
41-23          (b)  An employee may use up to eight hours of sick leave each
41-24    calendar year to attend parent-teacher conference sessions for the
41-25    employee's children.
41-26          (c)  An employee shall give reasonable advance notice of the
 42-1    employee's intention to use the sick leave to attend a
 42-2    parent-teacher conference.
 42-3          (d)  In this section:
 42-4                (1)  "Employee" has the meaning assigned by Section
 42-5    661.001.
 42-6                (2)  "Parent" means a person standing in parental
 42-7    relation.
 42-8           (Sections 661.207 to 661.900 reserved for expansion
 42-9     SUBCHAPTER Z.  MISCELLANEOUS LEAVE PROVISIONS FOR STATE EMPLOYEES
42-10          Sec. 661.901.  APPLICABILITY.  (a)  This subchapter applies
42-11    only to a state employee employed in the executive or judicial
42-12    branch of state government.
42-13          (b)  The leave policies for employees of the legislative
42-14    branch, including employees of the lieutenant governor, are
42-15    determined as follows:
42-16                (1)  for employees of either house of the legislature,
42-17    a member of the legislature, or the lieutenant governor, by the
42-18    presiding officer of the appropriate house of the legislature; and
42-19                (2)  for employees of a legislative agency, by the
42-20    administrative head of the agency.
42-21          (c)  An employee of an institution of higher education as
42-22    defined by Section 61.003, Education Code, is eligible to accrue or
42-23    take paid leave under this subchapter only if the employee:
42-24                (1)  is employed to work at least 20 hours per week for
42-25    a period of at least four and one-half months; and
42-26                (2)  is not employed in a position for which the
 43-1    employee is required to be a student as a condition of the
 43-2    employment.
 43-3          Sec. 661.902.  EMERGENCY LEAVE.  (a)  A state employee is
 43-4    entitled to emergency leave without a deduction in salary because
 43-5    of a death in the employee's family.  The death of the employee's
 43-6    spouse or of a parent, brother, sister, grandparent, grandchild, or
 43-7    child of the employee or of the employee's spouse is considered to
 43-8    be a death in the employee's family for purposes of this
 43-9    subsection.
43-10          (b)  The administrative head of an agency may determine that
43-11    a reason other than that described by Subsection (a) is sufficient
43-12    for granting emergency leave and shall grant an emergency leave to
43-13    an employee who the administrative head determines has shown good
43-14    cause for taking emergency leave.
43-15          Sec. 661.903.  NATIONAL GUARD EMERGENCY.  A state employee
43-16    who is called to active duty as a member of the Texas National
43-17    Guard by the governor because of an emergency is entitled to a
43-18    leave of absence without a deduction in salary in accordance with
43-19    Section 431.0825.
43-20          Sec. 661.904.  MILITARY LEAVE DURING NATIONAL EMERGENCY.
43-21    (a)  An employee called to active duty during a national emergency
43-22    to serve in a reserve component of the armed forces of the United
43-23    States is entitled to an unpaid leave of absence.
43-24          (b)  The employee continues to accrue state service credit
43-25    for purposes of longevity pay while on military duty described by
43-26    Subsection (a)  but does not accrue vacation or sick leave during
 44-1    that time.
 44-2          (c)  The employee retains any accrued vacation or sick leave
 44-3    and is entitled to be credited with those balances on return to
 44-4    state employment from military duty described by Subsection (a).
 44-5          Sec. 661.905.  VOLUNTEER FIREFIGHTERS.  (a)  A state employee
 44-6    who is a volunteer firefighter is entitled to a leave of absence
 44-7    without a deduction in salary to attend fire service training
 44-8    conducted by a state agency or institution of higher education.
 44-9    Leave without a deduction in salary under this subsection may not
44-10    exceed five working days in a fiscal year.
44-11          (b)  A state agency or institution of higher education may
44-12    grant leave without a deduction in salary to a volunteer
44-13    firefighter for the purpose of allowing the firefighter to respond
44-14    to emergency fire situations if the agency or institution has an
44-15    established policy for granting that leave.
44-16          Sec. 661.906.  FOSTER PARENTS.  A state employee who is a
44-17    foster parent to a child under the conservatorship of the
44-18    Department of Protective and Regulatory Services is entitled to a
44-19    leave of absence without a deduction in salary for the purpose of
44-20    attending:
44-21                (1)  meetings held by the Department of Protective and
44-22    Regulatory Services regarding the child under the foster care of
44-23    the employee; or
44-24                (2)  an admission, review, and dismissal meeting held
44-25    by a school district regarding the child under the foster care of
44-26    the employee.
 45-1          Sec. 661.907.  RED CROSS DISASTER SERVICE VOLUNTEER.  (a)  A
 45-2    state employee who is a certified disaster service volunteer of the
 45-3    American Red Cross or who is in training to become such a volunteer
 45-4    may be granted leave not to exceed 10 days each fiscal year to
 45-5    participate in specialized disaster relief services for the
 45-6    American Red Cross without a deduction in salary or loss of
 45-7    vacation time, sick leave, earned overtime credit, or state
 45-8    compensatory time if the leave is taken:
 45-9                (1)  on the request of the American Red Cross;
45-10                (2)  with the authorization of the employee's
45-11    supervisor; and
45-12                (3)  with the approval of the governor.
45-13          (b)  The number of certified disaster service volunteers who
45-14    are eligible for leave under this section may not exceed 350 state
45-15    employees at any one time during a fiscal year.  The division of
45-16    emergency management in the governor's office shall coordinate the
45-17    establishment and maintenance of the list of eligible employees.
45-18          (c)  Not later than the 60th day after the date the American
45-19    Red Cross makes a request under Subsection (a)(1), the American Red
45-20    Cross shall prepare a report for the Legislative Budget Board
45-21    stating the reasons for the request.
45-22          Sec. 661.908.  LEAVE RECORDS; TIME AND ATTENDANCE RECORDS.
45-23    The administrative head or governing body of each state agency
45-24    shall require for each employee:
45-25                (1)  time and attendance records;
45-26                (2)  a record of the accrual and taking of vacation and
 46-1    sick leave;
 46-2                (3)  a record of the reason an employee takes leave if
 46-3    other law requires the employee to inform the agency of the reason;
 46-4    and
 46-5                (4)  a record that shows whether any leave taken is
 46-6    accounted for as sick leave, vacation leave, other paid leave,
 46-7    leave without pay, or other absence.
 46-8          Sec. 661.909.  LEAVE WITHOUT PAY; LEAVE OF ABSENCE.  (a)  A
 46-9    state agency or institution of higher education may grant employees
46-10    leave without pay, including a leave of absence without pay, in
46-11    accordance with this section.
46-12          (b)  The duration of the leave may not exceed 12 months.
46-13          (c)  Except for disciplinary suspensions, active military
46-14    duty, and leave covered by workers' compensation benefits, all
46-15    accumulated paid leave entitlements must be used before going on
46-16    leave without pay status.  Sick leave must first be used only if
46-17    the employee is taking leave for a reason for which the employee is
46-18    eligible to take sick leave under Subchapter G.
46-19          (d)  Subject to fiscal constraints, approval of the leave
46-20    constitutes a guarantee of employment at the conclusion of the
46-21    specified leave period.
46-22          (e)  The administrative head of a state agency or institution
46-23    of higher education may grant exceptions to the limitations of this
46-24    section if the employee is taking the leave for a reason such as:
46-25                (1)  to work for another state governmental entity
46-26    under an interagency agreement; or
 47-1                (2)  educational purposes.
 47-2          (f)  Except for an employee who returns to state employment
 47-3    from military leave without pay under Section 661.904, a full
 47-4    calendar month during which an employee is on leave without pay is
 47-5    not counted in computing:
 47-6                (1)  total state service for purposes related to
 47-7    longevity pay or to the rate of accrual of vacation leave; or
 47-8                (2)  continuous state service for purposes related to
 47-9    merit salary provisions or vacation leave.
47-10          (g)  An employee does not accrue vacation or sick leave for a
47-11    full calendar month during which the employee is on leave without
47-12    pay.
47-13          (h)  A full or partial calendar month during which an
47-14    employee is on leave without pay does not constitute a break in
47-15    continuity of employment.
47-16          Sec. 661.910.  ASSISTANCE DOG TRAINING FOR EMPLOYEES WITH A
47-17    DISABILITY.  (a)  A state employee who is a person with a
47-18    disability, as defined by Section 121.002, Human Resources Code, is
47-19    entitled to a leave of absence without a deduction in salary for
47-20    the purpose of attending a training program to acquaint the
47-21    employee with an assistance dog to be used by the employee.
47-22          (b)  The leave of absence provided by this section may not
47-23    exceed 10 working days in a fiscal year.
47-24          Sec. 661.911.  ADMINISTRATIVE LEAVE WITH PAY.  (a)  In
47-25    addition to employee leave authorized elsewhere in this chapter,
47-26    the administrative head of an agency may grant administrative leave
 48-1    without a deduction in salary to an employee as a reward for
 48-2    outstanding performance as documented by employee performance
 48-3    appraisals.
 48-4          (b)  The total amount of administrative leave an employee may
 48-5    be granted under this section may not exceed 32 hours during a
 48-6    fiscal year.
 48-7          Sec. 661.912.  FAMILY AND MEDICAL LEAVE ACT.  (a)  To the
 48-8    extent required by federal law, a state employee who has a total of
 48-9    at least 12 months of state service and who has worked at least
48-10    1,250 hours during the 12-month period preceding the beginning of
48-11    leave under this section is entitled to leave under the federal
48-12    Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et
48-13    seq.).
48-14          (b)  The employee must first use all available and applicable
48-15    paid vacation and sick leave while taking leave under this section,
48-16    except that an employee who is receiving temporary disability
48-17    benefits or workers' compensation benefits is not required to first
48-18    use applicable paid vacation or sick leave while receiving those
48-19    benefits.
48-20          Sec. 661.913.  PARENTAL LEAVE FOR CERTAIN EMPLOYEES.  (a)  A
48-21    state employee who has been employed for fewer than 12 months by
48-22    the state or who worked fewer than 1,250 hours during the 12-month
48-23    period preceding the beginning of leave under this section is
48-24    eligible to take a parental leave of absence not to exceed 12 weeks
48-25    in accordance with this section.
48-26          (b)  The employee must first use all available and applicable
 49-1    paid vacation and sick leave while taking the leave, and the
 49-2    remainder of the leave is unpaid.
 49-3          (c)  The leave authorized by this section is limited to, and
 49-4    begins on the date of, the birth of a natural child of the employee
 49-5    or the adoption by or foster care placement with the employee of a
 49-6    child younger than three years of age.
 49-7          Sec. 661.914.  VOTING BY STATE EMPLOYEES.  A state agency
 49-8    shall allow each agency employee sufficient time off, without a
 49-9    deduction in salary or accrued leave, to vote in each national,
49-10    state, or local election.
49-11          SECTION 20.  Subsection (b), Section 662.003, Government
49-12    Code, is amended to read as follows:
49-13          (b)  A state holiday includes only the following days:
49-14                (1)  the 19th day of January, "Confederate Heroes Day,"
49-15    in honor of Jefferson Davis, Robert E. Lee, and other Confederate
49-16    heroes;
49-17                (2)  the second day of March, "Texas Independence Day";
49-18                (3)  the 21st day of April, "San Jacinto Day";
49-19                (4)  the 19th day of June, "Emancipation Day in Texas,"
49-20    in honor of the emancipation of the slaves in Texas in 1865;
49-21                (5)  the 27th day of August, "Lyndon Baines Johnson
49-22    Day," in observance of the birthday of Lyndon Baines Johnson;
49-23                (6)  [every day on which an election is held throughout
49-24    the state;]
49-25                [(7)]  the Friday after Thanksgiving Day;
49-26                (7) [(8)]  the 24th day of December; and
 50-1                (8) [(9)]  the 26th day of December.
 50-2          SECTION 21.  Subsection (a), Section 662.004, Government
 50-3    Code, is amended to read as follows:
 50-4          (a)  A state agency and an institution of higher education as
 50-5    defined by Section 61.003, Education Code, shall have enough
 50-6    employees on duty during a state holiday to conduct the public
 50-7    business of the agency or institution.
 50-8          SECTION 22.  Section 662.007, Government Code, is amended by
 50-9    adding Subsection (c) to read as follows:
50-10          (c)  An institution of higher education as defined by Section
50-11    61.003, Education Code, may allow an employee who is required to
50-12    work on a national or state holiday that does not fall on a
50-13    Saturday or Sunday to take compensatory time off in accordance with
50-14    this section or may instead pay the employee at the employee's
50-15    regular rate of pay for that time if the institution determines
50-16    that allowing compensatory time off would disrupt normal teaching,
50-17    research, or other critical functions.
50-18          SECTION 23.  Subchapter A, Chapter 662, Government Code, is
50-19    amended by adding Section 662.0072 to read as follows: 
50-20          Sec. 662.0072.  TRANSFERRING EMPLOYEE:  PAYMENT FOR HOLIDAY.
50-21    If a state or national holiday occurs between the dates that a
50-22    state employee separates from one state agency and begins
50-23    employment with another state agency or an institution of higher
50-24    education without a break in service, the agency or institution of
50-25    higher education to which the employee transfers is responsible for
50-26    paying the employee for the holiday regardless of whether the
 51-1    agency or institution of higher education that receives the new
 51-2    employee recognizes the holiday.
 51-3          SECTION 24.  Section 662.011, Government Code, is amended by
 51-4    amending Subsection (a) and adding Subsection (c) to read as
 51-5    follows:
 51-6          (a)  The governing body of an institution of higher
 51-7    education, as defined by Section 61.003, Education Code, other than
 51-8    a public junior college as defined by that section, may establish
 51-9    the holiday schedule for the institution, subject to any applicable
51-10    limitation on the observance of holidays prescribed by the General
51-11    Appropriations Act.
51-12          (c)  An employee of the institution is eligible to take paid
51-13    holiday leave only if the employee:
51-14                (1)  is scheduled to work at least 20 hours per week
51-15    for a period of at least four and one-half months; and
51-16                (2)  is not employed in a position for which the
51-17    employee is required to be a student as a condition of the
51-18    employment.
51-19          SECTION 25.  Subtitle B, Title 6, Government Code, is amended
51-20    by adding Chapter 666 to read as follows:
51-21               CHAPTER 666.  MULTIPLE EMPLOYMENTS WITH STATE
51-22          Sec. 666.001.  GENERAL PROVISIONS.  (a)  This chapter applies
51-23    to a person who is or may become employed by more than one state
51-24    agency or institution of higher education.
51-25          (b)  A person who is employed by more than one state agency
51-26    or institution of higher education may not receive benefits from
 52-1    the state that exceed the benefits provided for one full-time
 52-2    employee.
 52-3          (c)  The person must be informed of the requirements of this
 52-4    chapter before the person is employed by more than one agency or
 52-5    institution.
 52-6          Sec. 666.002.  SEPARATE RECORDS REQUIRED.  Separate vacation
 52-7    and sick leave records must be maintained for each employment.
 52-8          Sec. 666.003.  TRANSFER OF LEAVE BALANCES PROHIBITED.  If the
 52-9    person separates from one employment, the person's leave balances
52-10    that were accrued under that employment may not be transferred to
52-11    the remaining employments.
52-12          Sec. 666.004.  ACCRUAL OF STATE SERVICE CREDIT.  The person
52-13    accrues state service credit for all purposes as if the person had
52-14    only one employment.
52-15          Sec. 666.005.  GROUP INSURANCE CONTRIBUTION.  The total state
52-16    contribution toward the person's group insurance is limited to the
52-17    amount specified in the General Appropriations Act for a full-time
52-18    active employee.
52-19          Sec. 666.006.  OVERTIME COMPENSATION.  (a)  Overtime
52-20    compensation accrues for each employment independently of every
52-21    other employment, except as provided by Subsection (b).
52-22          (b)  If the person is subject to the overtime provisions of
52-23    the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201
52-24    et seq.) in an employment, the employing agencies and institutions
52-25    of higher education shall ensure that the person is compensated for
52-26    all combined time actually worked that exceeds 40 hours per week in
 53-1    accordance with the overtime provisions of the federal law.  The
 53-2    agencies and institutions shall cooperate to determine which agency
 53-3    or institution is responsible for ensuring that the employee is
 53-4    properly compensated according to those provisions.
 53-5          (c)  An employing agency or institution may not use multiple
 53-6    employments of an employee within the same agency or institution
 53-7    for the purpose of:
 53-8                (1)  paying the employee for working more than 40 hours
 53-9    in a week instead of earning compensatory time in accordance with
53-10    state law; or
53-11                (2)  paying the employee a greater salary than is
53-12    allowed for either of the employee's positions.
53-13          Sec. 666.007.  INFORMING EMPLOYER ABOUT MULTIPLE EMPLOYMENT.
53-14    The person must inform the person's employing state agencies or
53-15    institutions of higher education before accepting an additional
53-16    employment with another agency or institution.
53-17          Sec. 666.008.  SPECIAL PROVISIONS FOR LEGISLATIVE AGENCIES.
53-18    If a person's multiple employment involves only legislative
53-19    agencies and all employments are less than full-time, the person
53-20    may use paid leave from leave balances in all employments, and on
53-21    separating from one  employment, leave balances accrued under that
53-22    employment will be transferred to the remaining employments.
53-23          Sec. 666.009.  SPECIAL PROVISIONS FOR UNIVERSITY SYSTEMS.
53-24    (a)  A university system as defined by Section 61.003, Education
53-25    Code, may establish a policy that defines a person's employment as
53-26    the total hours the person is assigned:
 54-1                (1)  to one component of the system; or
 54-2                (2)  to all components of the system.
 54-3          (b)  The policy may apply to a person only if the person is
 54-4    employed by more than one institution of higher education and all
 54-5    the employing institutions are within the same university system.
 54-6          SECTION 26.  Chapter 391, Local Government Code, is amended
 54-7    by adding Section 391.0117 to read as follows:
 54-8          Sec. 391.0117.  SALARY SCHEDULES.  (a)  For each fiscal year,
 54-9    a commission shall adopt a salary schedule containing a
54-10    classification salary schedule for classified positions and
54-11    identifying and specifying the salaries for positions exempt from
54-12    the classification salary schedule.
54-13          (b)  The salary schedule adopted by the commission may not
54-14    exceed, for classified positions, the state salary schedule for
54-15    classified positions as prescribed by the General Appropriations
54-16    Act adopted by the most recent legislature.  A commission may adopt
54-17    a salary schedule that is less than the state salary schedule.
54-18          (c)  A salary for a position classified under the salary
54-19    schedule may not exceed the state salary that has been approved by
54-20    the state auditor's office and paid by the state for comparable
54-21    work.
54-22          (d)  A position may only be exempted from the classification
54-23    salary schedule adopted by the commission if the exemption and the
54-24    amount of salary paid for the exempt position is within the range
54-25    determined appropriate for state exempt positions by the state
54-26    auditor.
 55-1          (e)  A commission shall submit to the governor the
 55-2    commission's salary schedule, including the salaries of all exempt
 55-3    positions, not later than the 45th day before the date of the
 55-4    beginning of the commission's fiscal year.  If the governor objects
 55-5    to a commission's salary schedule or a portion of the schedule, the
 55-6    portion of the schedule that the governor objects to may not go
 55-7    into effect until revisions or explanations are given that are
 55-8    satisfactory to the governor and the governor approves that portion
 55-9    of the schedule.
55-10          (f)  This section does not apply to a commission if the most
55-11    populous county that is a member of the commission has an actual
55-12    average weekly wage that exceeds the state actual average weekly
55-13    wage by 20 percent or more for the previous year as determined by
55-14    the Texas Workforce Commission in its County Employment and Wage
55-15    Information Report.
55-16          SECTION 27.  This section provides, for information purposes
55-17    only, a derivation table for provisions of the General
55-18    Appropriations Act that are codified in general law by other
55-19    sections of this Act.  The first column identifies the codified
55-20    law; all references are to the Government Code unless otherwise
55-21    expressly noted.  The second column identifies for each codified
55-22    law the applicable source provision in Article IX of the General
55-23    Appropriations Act for the fiscal biennium ending August 31, 1999
55-24    (Chapter 1452, Acts of the 75th Legislature, Regular Session,
55-25    1997).
 56-1               Codified Law                       Source Provision
 56-2    Sec. 651.005                            Sec. 1.9
 56-3    Sec. 654.0125                           Sec. 1.15
 56-4    Sec. 654.014                            Sec. 1.16.a, 2nd sent.
 56-5    Sec. 654.0155                           Secs. 1.4.b, d
 56-6    Sec. 654.0156                           Sec. 1.4.a
 56-7    Sec. 656.026                            Sec. 157
 56-8    Sec. 658.005(a)                         Sec. 8.1
 56-9    Sec. 658.006                            Sec. 8.2
56-10    Sec. 658.008                            Sec. 8.6
56-11    Sec. 658.009                            Sec. 1.12 (part)
56-12    Sec. 658.010                            Sec. 8.3
56-13    Sec. 659.002(d)                         Sec. 3, 1st par., 1st 2
56-14                                             sent.
56-15    Sec. 659.004                            Sec. 1.19
56-16    Sec. 659.005(a)                         Sec. 2.3
56-17    Secs. 659.005(b)-(e)                    Sec. 2.4
56-18    Sec. 659.006                            Sec. 3, 1st par., last
56-19                                             sent.
56-20    Sec. 659.015                            Secs. 2.6.a, 2.6.c
56-21    Sec. 659.016                            Secs. 2.6.b, 2.6.c
56-22    Sec. 659.017                            Sec. 2.6.e
56-23    Sec. 659.018                            Sec. 2.6.d
56-24    Sec. 659.019                            Sec. 1.12 (part)
56-25    Sec. 659.020                            Sec. 1.14 (part)
 57-1    Sec. 659.021                            Sec. 1.16.a, 3rd sent.,
 57-2                                             1st clause
 57-3    Secs. 659.022, 659.023                  Sec. 2.6
 57-4    Secs. 659.081, 659.082                  Sec. 2.1, 1st sent.
 57-5                                             (part)
 57-6    Sec. 659.085                            Sec. 2.1, last 4 sent.
 57-7    Secs. 659.251-659.253                   Sec. 1.2
 57-8    Sec. 659.254                            Secs. 1.3, 1.4.c
 57-9    Sec. 659.255                            Sec. 1.5
57-10    Sec. 659.256                            Sec. 1.6
57-11    Sec. 659.257                            Sec. 1.7
57-12    Sec. 659.258                            Sec. 1.8
57-13    Sec. 659.259                            Sec. 1.10
57-14    Secs. 659.260(a), (b), (c), (e)         Sec. 1.11
57-15    Sec. 659.260(d)                         Sec. 1.16.a, 3rd sent.,
57-16                                             last clause
57-17    Sec. 659.261                            Sec. 1.16.b
57-18    Sec. 661.033(c)                         Sec. 9.6
57-19    Secs. 661.062(a), (b)                   Sec. 9.1, last 2 sent.
57-20    Sec. 661.062(f)                         Sec. 9.9 (part)
57-21    Sec. 661.151                            Sec. 9.8
57-22    Sec. 661.152                            Sec. 9.1, 1st 7 par.
57-23    Sec. 661.153                            Sec. 9.5 (part)
57-24    Sec. 661.154                            Sec. 9.9 (part)
57-25    Sec. 661.201(a)                         Sec. 9.9 (part)
 58-1    Sec. 661.201(b)                         Sec. 9.3, last par.
 58-2                                             (part)
 58-3    Sec. 661.202                            Sec. 9.2, except last
 58-4                                             sent.
 58-5    Sec. 661.203                            Sec. 9.2, last sent.
 58-6    Sec. 661.204                            Sec. 9.5 (part)
 58-7    Sec. 661.205                            Sec. 9.10
 58-8    Secs. 661.901(a), (b)                   Sec. 9.9 (part)
 58-9    Sec. 661.901(c)                         Sec. 9.3, last par.
58-10                                             (part)
58-11    Sec. 661.902                            Sec. 9.3, 1st par.
58-12    Sec. 661.903                            Sec. 9.4, 1st par.
58-13    Sec. 661.904                            Sec. 9.4, 3rd par.
58-14    Sec. 661.905                            Sec. 9.4, 4th par.
58-15    Sec. 661.906                            Sec. 9.4, 5th par.
58-16    Sec. 661.907                            Sec. 9.4, 6th par.
58-17    Sec. 661.908                            Sec. 9.7
58-18    Sec. 661.909                            Sec. 9.11
58-19    Sec. 661.910                            Sec. 9.12
58-20    Sec. 661.911                            Sec. 9.13
58-21    Sec. 661.912                            Sec. 9.14.a
58-22    Sec. 661.913                            Sec. 9.14.b
58-23    Sec. 661.914                            Sec. 8.5 (part)
58-24    Sec. 662.003(b)                         Sec. 8.5 (part)
58-25    Sec. 662.004(a)                         Sec. 8.4, 3rd par., 1st
58-26                                             sent.
 59-1    Sec. 662.007                            Sec. 8.4, 4th par. (part)
 59-2    Sec. 662.0072                           Sec. 8.4, 7th par.
 59-3    Sec. 662.011(c)                         Sec. 8.4, 2nd par.
 59-4    Sec. 666.001                            Sec. 10.1, 1st par.
 59-5    Secs. 666.002-666.003                   Sec. 10.1.a
 59-6    Sec. 666.004                            Sec. 10.1.b
 59-7    Sec. 666.005                            Sec. 10.1.d
 59-8    Sec. 666.006                            Sec. 10.1.e
 59-9    Sec. 666.007                            Sec. 10.1.f
59-10    Sec. 666.008                            Sec. 10.2
59-11    Sec. 666.009                            Sec. 10.3
59-12          SECTION 28.  This Act takes effect September 1, 1999.
59-13          SECTION 29.  The importance of this legislation and the
59-14    crowded condition of the calendars in both houses create an
59-15    emergency and an imperative public necessity that the
59-16    constitutional rule requiring bills to be read on three several
59-17    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 174 passed the Senate on
         March 11, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 11, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 174 passed the House, with
         amendments, on May 6, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor