89R3440 JBD-F
 
  By: Vasut H.B. No. 1659
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the payment of employment compensation to state
  employees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 659.081, Government Code, is amended to
  read as follows:
         Sec. 659.081.  STATE OFFICERS: PAYMENT ONCE A MONTH. Except
  as provided by [this subchapter or] the General Appropriations Act,
  annual salaries for state officers [and employees] shall be paid
  once a month.
         SECTION 2.  Section 659.082, Government Code, is amended to
  read as follows:
         Sec. 659.082.  STATE EMPLOYEES: PAYMENT TWICE A MONTH.
  Except as provided by the General Appropriations Act, annual
  salaries for state employees shall [(a) An employee is entitled to]
  be paid [employment compensation] twice a month [if:
               [(1) the employee is employed by:
                     [(A) the Texas Department of Mental Health and
  Mental Retardation;
                     [(B) the Texas Department of Transportation;
                     [(C) the Texas Department of Human Services;
                     [(D) the Texas Workforce Commission;
                     [(E) the Department of Public Safety; or
                     [(F) any other state agency designated by the
  comptroller;
               [(2) the employee holds a classified position under the
  state's position classification plan;
               [(3) the employee's position is classified below salary
  group A12 under classification salary Schedule A in the General
  Appropriations Act;
               [(4) the employing state agency satisfies the
  comptroller's requirements relating to the payment of compensation
  twice a month; and
               [(5) at least 30 percent of the eligible employees of
  the agency choose to be paid twice a month].
         [(b)  Employees of an institution of higher education as
  defined by Section 61.003, Education Code, may be paid twice a month
  at the election of the employing institution of higher education.]
         SECTION 3.  Sections 659.083(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The [Except as provided by Subsection (b), the]
  comptroller may not pay the salary of a state officer [or employee]
  before the first working day of the month following the payroll
  period.
         (b)  The comptroller may not pay the salary of a state
  employee before [shall pay an employee who is paid twice a month
  under Section 659.082 on]:
               (1)  the first working day of the month following the
  payroll period that covers the last half of the preceding month; and
               (2)  the 15th day of the month or the first working day
  after the 15th for the payroll period that covers the first half of
  the month.
         SECTION 4.  Section 659.084, Government Code, is amended to
  read as follows:
         Sec. 659.084.  ELECTRONIC FUNDS TRANSFER.  Salaries for
  state officers and employees [paid once a month] shall be paid
  through electronic funds transfer under Section 403.016 unless paid
  on warrant as permitted under that section.
         SECTION 5.  Section 659.085(d), Government Code, is amended
  to read as follows:
         (d)  An agency that may contract with its employees for
  employment for less than a 12-month period may make equal [monthly]
  salary payments under the contract during the contract period or
  during the fiscal year in accordance with the General
  Appropriations Act and equitable rules adopted by the comptroller,
  provided that the salary payments are made twice a month to the
  employees.
         SECTION 6.  Section 825.405(c), Government Code, is amended
  to read as follows:
         (c)  Monthly, employers shall:
               (1)  report to the retirement system in a form
  prescribed by the system a certification of the total amount of
  salary paid above the statutory minimum salary and the total amount
  of employer contributions due under this section for the [payroll]
  period covered by the report; and
               (2)  retain information, as determined by the
  retirement system, sufficient to allow administration of this
  section, including information for each employee showing the
  applicable minimum salary as well as aggregate annual compensation.
         SECTION 7.  Section 825.407(c), Government Code, is amended
  to read as follows:
         (c)  The designated disbursing officer of each general
  academic teaching institution and the designated disbursing
  officer of each medical and dental unit shall:
               (1)  submit to the retirement system, at a time and in
  the manner prescribed by the retirement system, a monthly report
  containing a certification of the total amount of salary paid from
  noneducational and general funds and the total amount of employer
  contributions due under this section for the [payroll] period
  covered by the report; and
               (2)  maintain and retain the following information:
                     (A)  the name of each member employed by the
  institution or unit who, for the [most recent payroll] period
  covered by the report, was paid wholly or partly from
  noneducational and general funds;
                     (B)  the amount of the employee's salary for the
  [most recent payroll] period covered by the report that was paid
  from noneducational and general funds; and
                     (C)  any other information the retirement system
  determines is necessary to administer this section.
         SECTION 8.  Section 825.4071(c), Government Code, is amended
  to read as follows:
         (c)  The designated disbursing officer of each public junior
  college and each public junior college district shall:
               (1)  submit to the retirement system, at a time and in
  the manner prescribed by the retirement system, a monthly report
  containing a certification that includes:
                     (A)  the total amount of compensation paid;
                     (B)  the total amount of employer contributions
  due under this section for the [payroll] period covered by the
  report; and
                     (C)  any other information the retirement system
  determines is necessary to administer this section; and
               (2)  maintain and retain the following information:
                     (A)  the name of each member employed by the
  public junior college or public junior college district;
                     (B)  the amount of the member's salary for the
  [most recent payroll] period covered by the report;
                     (C)  whether the member is a qualifying employee
  under Section 825.404(a-1)(1); and
                     (D)  any other information the retirement system
  determines is necessary to administer this section.
         SECTION 9.  A state agency may adopt rules to implement this
  Act.
         SECTION 10.  The changes in law made by this Act apply only
  to the payment of compensation to a state employee for services
  provided by the employee on or after September 1, 2025. The payment
  of compensation to a state employee for services provided by the
  employee before September 1, 2025, is governed by the law in effect
  on the date the employee provided the services, and the former law
  is continued in effect for that purpose.
         SECTION 11.  This Act takes effect September 1, 2025.