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A BILL TO BE ENTITLED
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AN ACT
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relating to unpaid furloughs for state employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 658, Government Code, is amended by |
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adding Section 658.011 to read as follows: |
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Sec. 658.011. INVOLUNTARY FURLOUGH PROGRAM. (a) In this |
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section, "state agency" means a board, commission, office, |
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department, or other agency in the executive, judicial, or |
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legislative branch of state government. The term includes an |
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institution of higher education as defined by Section 61.003, |
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Education Code. |
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(b) On approval of the governing body of the state agency, |
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the executive director of a state agency may require an employee of |
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the state agency to participate in an involuntary furlough program |
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without pay in order to balance the state agency's budget. |
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(c) The state agency implementing an involuntary furlough |
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program under this section shall reduce an employee's compensation |
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in an amount equal to the number of hours the employee is furloughed |
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times the employee's hourly rate or equivalent hourly rate as |
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provided by Section 659.085. |
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(d) Except as provided by Subsection (g), a state employee |
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may not use vacation, sick, or any other paid leave while the |
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employee is on an unpaid furlough. |
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(e) An unpaid furlough under this section does not |
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constitute a break in service for the state employee. |
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(f) A state employee who is on unpaid furlough continues to |
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accrue: |
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(1) state service credit for purposes of longevity |
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pay; |
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(2) vacation leave; and |
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(3) sick leave. |
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(g) A state employee on an unpaid furlough that exceeds one |
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month in length may continue to accrue service credit with the |
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Employees Retirement System of Texas or Teacher Retirement System |
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of Texas by receiving state pay during each month of the unpaid |
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furlough in an amount equal to the employee's contribution to the |
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retirement system under Section 815.402 or 825.403, as appropriate. |
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The employee may use any combination of paid leave, including state |
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compensatory leave, overtime leave under the federal Fair Labor |
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Standards Act of 1938 (29 U.S.C. Section 201 et seq.), sick leave, |
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or annual leave to qualify for the state pay. |
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SECTION 2. Section 659.043, Government Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) Notwithstanding Subsections (a)(1) and (2), an employee |
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participating in an involuntary furlough program under Section |
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658.011 who is otherwise eligible for longevity pay is entitled to |
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longevity pay. |
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SECTION 3. Section 811.001(7), Government Code, is amended |
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to read as follows: |
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(7) "Compensation" means the base salary of a person; |
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amounts that would otherwise qualify as compensation but are not |
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received directly by a person pursuant to a good faith, voluntary, |
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written salary reduction agreement in order to finance payments to |
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a deferred compensation or tax sheltered annuity program |
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specifically authorized by state law or to finance benefit options |
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under a cafeteria plan qualifying under Section 125 of the Internal |
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Revenue Code of 1986 (26 U.S.C. Section 125); longevity and |
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hazardous duty pay; nonmonetary compensation, the value of which |
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is determined by the retirement system; amounts by which a person's |
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salary is reduced under a salary reduction agreement authorized by |
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Chapter 610; amounts by which a person's salary is reduced under an |
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involuntary furlough program under Section 658.011; and the benefit |
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replacement pay a person earns under Subchapter H, Chapter 659, [as
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added by Chapter 417, Acts of the 74th Legislature, 1995,] except |
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for the benefit replacement pay a person earns as a result of a |
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payment made under Subchapter B, C, or D, Chapter 661. The term |
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excludes overtime pay and a cleaning or clothing allowance. |
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SECTION 4. Subchapter C, Chapter 1551, Insurance Code, is |
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amended by adding Section 1551.1015 to read as follows: |
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Sec. 1551.1015. INVOLUNTARY FURLOUGH PROGRAM. An |
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individual is eligible to participate in the group benefits program |
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if the individual would otherwise be eligible to participate in the |
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program under this subchapter except that the individual is not |
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receiving compensation for service because the individual is |
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participating in an involuntary furlough program under Section |
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658.011, Government Code. |
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SECTION 5. Section 1551.319, Insurance Code, is amended by |
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adding Subsection (g) to read as follows: |
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(g) For purposes of determining whether an individual is a |
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full-time or part-time employee under this section, any reduction |
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in the employee's hours that results from the employee's |
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participation in an involuntary furlough program under Section |
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658.011, Government Code, may not be considered. |
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SECTION 6. Subchapter G, Chapter 1551, Insurance Code, is |
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amended by adding Section 1551.325 to read as follows: |
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Sec. 1551.325. CONTRIBUTIONS AND PAYMENTS FROM CERTAIN |
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EMPLOYEES. (a) An employee participating in an involuntary |
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furlough program under Section 658.011, Government Code, for a |
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period of a month or more shall make the contributions required for |
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the coverage selected by the employee, including any amount of a |
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salary reduction agreement under a cafeteria plan, as required by |
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the trustee. |
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(b) The employee is entitled to receive compensation for any |
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combination of paid leave, including state compensatory leave, |
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overtime leave under the federal Fair Labor Standards Act of 1938 |
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(29 U.S.C. Section 201 et seq.), sick leave, or annual leave, to the |
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extent necessary to make the required contribution. |
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SECTION 7. Subchapter C, Chapter 1601, Insurance Code, is |
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amended by adding Section 1601.1015 to read as follows: |
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Sec. 1601.1015. INVOLUNTARY FURLOUGH PROGRAM. An |
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individual is eligible to participate in a uniform program if the |
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individual would otherwise be eligible to participate in the |
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program under this subchapter except that the individual is not |
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receiving compensation for service because the individual is |
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participating in an involuntary furlough program under Section |
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658.011, Government Code. |
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SECTION 8. Section 1601.201, Insurance Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) For purposes of determining whether an individual is a |
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full-time or part-time employee under this section, any reduction |
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in the employee's hours that results from the employee's |
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participation in an involuntary furlough program under Section |
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658.011, Government Code, may not be considered. |
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SECTION 9. Subchapter E, Chapter 1601, Insurance Code, is |
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amended by adding Section 1601.211 to read as follows: |
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Sec. 1601.211. CONTRIBUTIONS AND PAYMENTS FROM CERTAIN |
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EMPLOYEES. (a) An employee participating in an involuntary |
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furlough program under Section 658.011, Government Code, for a |
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period of a month or more shall make the contributions required for |
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the coverage selected by the employee, including any amount of a |
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salary reduction agreement under a cafeteria plan, as required by |
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the system. |
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(b) The employee is entitled to receive compensation for any |
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combination of paid leave, including state compensatory leave, |
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overtime leave under the federal Fair Labor Standards Act of 1938 |
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(29 U.S.C. Section 201 et seq.), sick leave, or annual leave, to the |
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extent necessary to make the required contribution. |
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SECTION 10. This Act takes effect September 1, 2011. |