CHAPTER 659. COMPENSATION

GOVERNMENT CODE

TITLE 6. PUBLIC OFFICERS AND EMPLOYEES

SUBTITLE B. STATE OFFICERS AND EMPLOYEES

CHAPTER 659. COMPENSATION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 659.001. EQUAL WORK, EQUAL PAY. A woman who performs

public service for this state is entitled to be paid the same

compensation for her service as is paid to a man who performs the

same kind, grade, and quantity of service, and a distinction in

compensation may not be made because of sex.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 659.002. DEDUCTIONS. (a) A state agency may not make a

deduction from the compensation paid to an officer or employee

whose compensation is paid in full or in part from state funds

unless the deduction is authorized by law.

(b) In this section "state agency" means:

(1) a board, commission, department, office, or other agency

that is in the executive branch of state government and that was

created by the constitution or a statute of this state, including

an institution of higher education as defined by Section 61.003,

Education Code, other than a public junior college;

(2) the legislature or a legislative agency; or

(3) the supreme court, the court of criminal appeals, a court of

appeals, the state bar, or another state judicial agency.

(c) To the extent that the laws, regulations, and rules of this

state or the United States do not specify the priority of

deductions, the comptroller by rule may determine the priority

for compensation paid by a state governmental body.

(d) The state shall withhold money from salaries and wages paid

to state officers and employees in accordance with applicable

federal law, including federal law relating to withholding for

purposes of the federal income tax. The state shall make any

required employer contributions in accordance with applicable

federal law. The comptroller shall make payments in accordance

with this subsection.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.14(a), eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 279, Sec. 9, eff. Sept.

1, 1999; Acts 2001, 77th Leg., ch. 118, Sec. 2.12, eff. Sept. 1,

2001.

Sec. 659.003. OFFICER MAY DECLINE REMUNERATION. (a) In this

section:

(1) "Officer" means an elected officer or appointed officer, as

those terms are defined by Chapter 572. The term includes a

person who has received a certificate of election to such an

office or who has been appointed or nominated to such an office

but has not been confirmed.

(2) "Remuneration" includes salary, compensatory per diem,

expense per diem, reimbursement for expenses, longevity pay, and

fees.

(b) An officer may decline remuneration associated with the

office. To decline remuneration, the officer shall execute a

declination form prescribed by the secretary of state. The form

shall be designed to permit the person to decline all

remuneration or to decline particular remuneration from among

various types associated with the office. The form shall be filed

with the secretary of state.

(c) A declination is effective on the date it is filed with the

secretary of state.

(d) A declination filed after an officer has qualified for

office may be revoked at any time. A declination filed before a

person has qualified for office may not be revoked during the

term of office to which the person is appointed or elected.

(e) A person who has irrevocably declined remuneration under

this section is not considered to be compensated directly or

indirectly for purposes of state law, except that declination of

remuneration under this section does not change the character of

an office as an office of emolument or a lucrative office for

purposes of a provision of the Texas Constitution.

Added by Acts 1995, 74th Leg., ch. 49, Sec. 1, eff. May 8, 1995.

Sec. 659.004. PAYROLL AND PERSONNEL REPORTING. (a) In this

section, "state agency" has the meaning assigned by Section

658.001.

(b) The comptroller, in consultation with the state auditor,

shall adopt rules that prescribe uniform procedures for payroll

and personnel reporting for all state agencies and that are

designed to:

(1) facilitate the auditing of payrolls;

(2) facilitate a classification compliance audit under Chapter

654;

(3) assure conformity with this chapter and the General

Appropriations Act; and

(4) provide the legislative audit committee with current

information on employment and wage rate practices in state

government.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 10, eff. Sept. 1,

1999.

Sec. 659.005. WITNESS FEES; JURY SERVICE. (a) A deduction may

not be made from the salary or wages of a state employee because

the employee is called for jury service, including a deduction

for any fee or compensation the employee receives for the jury

service.

(b) A state officer or employee who appears as a witness in an

official capacity in a judicial proceeding or legislative hearing

may not accept or receive a witness fee for the appearance.

(c) A state officer or employee who appears as a witness, in a

capacity other than as a state officer or employee, in a judicial

proceeding or legislative hearing to testify from personal

knowledge concerning matters related to the proceeding or hearing

is entitled to receive any customary witness fees for the

appearance.

(d) A state officer or employee who appears as an expert witness

in a judicial proceeding or legislative hearing may accept

compensation for the appearance only if the person is not also

compensated by the state for the person's time in making the

appearance and may accept reimbursement for travel expenses only

if the expenses are not reimbursed by the state. For purposes of

this subsection, paid leave is not considered time compensated by

the state.

(e) A state officer or employee may receive reimbursement for

travel and a per diem or reimbursement for expenses connected to

an appearance in an official capacity as a witness in a judicial

proceeding or legislative hearing only from the state or the

judicial body, but not from both the state and the judicial body.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 10, eff. Sept. 1,

1999.

Sec. 659.006. ADJUSTMENT FOR INACCURATE PAYMENT. The

comptroller by rule shall prescribe procedures for state agencies

to follow in making adjustments to payrolls for the pay period

immediately following the period in which an inaccurate payment

or deduction is made or in which other error occurs.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 10, eff. Sept. 1,

1999.

SUBCHAPTER B. SALARY AMOUNTS; OVERTIME AND COMPENSATORY TIME

Sec. 659.011. SALARIES SET IN APPROPRIATIONS ACT. The salaries

of all state officers and employees are in the amounts provided

by the biennial appropriations act.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 659.012. JUDICIAL SALARIES. (a) Notwithstanding Section

659.011:

(1) a judge of a district court is entitled to an annual salary

from the state of at least $125,000, except that the combined

salary of a district judge from state and county sources,

including compensation for any extrajudicial services performed

on behalf of the county, may not exceed the amount that is $5,000

less than the salary provided for a justice of a court of appeals

other than a chief justice;

(2) a justice of a court of appeals other than the chief justice

is entitled to an annual salary from the state that is equal to

110 percent of the salary of a district judge, except that the

combined salary of a justice of the court of appeals other than

the chief justice from all state and county sources, including

compensation for any extrajudicial services performed on behalf

of the county, may not exceed the amount that is $5,000 less than

the salary provided for a justice of the supreme court;

(3) a justice of the supreme court other than the chief justice

or a judge of the court of criminal appeals other than the

presiding judge is entitled to an annual salary from the state

that is equal to 120 percent of the salary of a district judge;

and

(4) the chief justice or presiding judge of an appellate court

is entitled to an annual salary from the state that is $2,500

more than the salary provided for the other justices or judges of

the court, except that the combined salary of the chief justice

of a court of appeals may not exceed the amount that is $2,500

less than the salary provided for a justice of the supreme court.

(b) To the extent of any conflict, the salary limitations

provided by this section for the combined salary of a state judge

or justice from state and local sources prevails over any

provision of Chapter 31 or 32 that authorizes the payment of

additional compensation to a state judge or justice.

(d) In a county with more than five district courts, a district

judge who serves as a local administrative district judge under

Section 74.091 is entitled to an annual salary from the state

that is $5,000 more than the salary from the state to which the

judge is otherwise entitled under Subsection (a)(1).

(e) For the purpose of salary payments by the state, the

comptroller shall determine from sworn statements filed by the

justices of the courts of appeals and district judges that the

required salary limitations provided by this section are

maintained. If a salary combined with additional compensation

from a county would be in excess of the limitations provided by

this section, the comptroller shall reduce the state salary by

the amount of the excess.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1993, 73rd Leg., ch. 268, Sec. 21, eff.

Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1113, Sec. 1, eff. Sept.

1, 1997; Acts 1997, 75th Leg., ch. 1166, Sec. 1, eff. Sept. 1,

1997.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

3, Sec. 1, eff. December 1, 2005.

Sec. 659.0125. SALARY FOR DISTRICT JUDGE OR RETIRED JUDGE

PRESIDING OVER MULTIDISTRICT LITIGATION. (a) Notwithstanding

Section 659.012 or any other law, a district judge who presides

over multidistrict litigation involving claims for

asbestos-related or silica-related injuries is entitled to

receive, in addition to all other compensation, expenses, and

perquisites authorized by law, the maximum amount of compensation

set by the Texas Judicial Council for a presiding judge under

Section 74.051(b). The annual amount must be apportioned over 12

equal monthly payments and be paid to the judge by the

comptroller's judiciary section for each month during which the

judge retains jurisdiction over the claims.

(b) Notwithstanding any other law, supplemental compensation

paid to a district judge under this section is not included as

part of the district judge's total annual salary for the purpose

of computing another salary that is based on the salary of the

district judge.

(c) A retired judge appointed to an MDL pretrial court, as

defined by Section 90.001, Civil Practice and Remedies Code, is

entitled to receive the same compensation and benefits to which a

district judge is entitled.

Added by Acts 2007, 80th Leg., R.S., Ch.

393, Sec. 3, eff. June 15, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1241, Sec. 2, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1241, Sec. 3, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1353, Sec. 2, eff. September 1, 2009.

Sec. 659.013. STATUTORY SALARIES SUSPENDED. (a) Except as

provided by this section, a law setting the salary of a state

officer or employee is suspended to the extent that the law

conflicts with this subchapter.

(b) The suspension does not apply to:

(1) a law specifying or regulating the salary or compensation of

an officer or employee for whom the biennial appropriations act

does not specify or regulate the salary or compensation; and

(2) Chapter 654.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 659.014. SUSPENDED LAWS CONTINUED IN EFFECT. Those laws

suspended by the operation of Section 659.013 are continued in

effect, although suspended, as those laws existed September 1,

1993, including:

(1) Article 6813, Revised Statutes (setting annual salaries for

named officers and employees);

(2) Chapter 277, Acts of the 40th Legislature, Regular Session,

1927 (Article 6813a, Vernon's Texas Civil Statutes) (setting and

regulating the salary of members of the Railroad Commission of

Texas); and

(3) Article 6824, Revised Statutes (prohibiting an increase or

decrease of salary during an officer's term of office).

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 659.015. OVERTIME COMPENSATION FOR EMPLOYEES SUBJECT TO

FAIR LABOR STANDARDS ACT. (a) This section applies only to a

state employee who is subject to the overtime provisions of the

federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201

et seq.) and who is not an employee of the legislature, including

an employee of the lieutenant governor, or of a legislative

agency.

(b) The employee is entitled to compensation for overtime as

provided by federal law and this section. To the extent that this

section and federal law prescribe a different rule for the same

circumstance, federal law controls without regard to whether this

section or federal law prescribes a stricter rule.

(c) An employee who is required to work hours in excess of 40

hours in a workweek is entitled to compensation for the excess

hours either by:

(1) the agency allowing or requiring the employee to take

compensatory time off at the rate of 1-1/2 hours off for each

hour of overtime; or

(2) at the discretion of the employing agency, in cases in which

granting compensatory time off is impractical, the employee

receiving pay for the overtime at the rate equal to 1-1/2 times

the employee's regular rate of pay.

(d) Holidays or other paid leave taken during a workweek are not

counted as hours worked in computing the number of overtime hours

under Subsection (c) or (e).

(e) An employee may not accumulate more than 240 hours of

overtime credit that may be taken as compensatory leave under

Subsection (c)(1), except that an employee engaged in a public

safety activity, an emergency response activity, or a seasonal

activity may accumulate, in accordance with 29 U.S.C. Section

207(o)(3)(A), not more than 480 hours of overtime credit that may

be taken as compensatory leave under Subsection (c)(1). An

employee must be paid at the rate prescribed by Subsection (c)(2)

for the number of overtime hours the employee works that cause

the employee to exceed the amount of overtime credit the employee

may accumulate. In this subsection, "overtime credit" means the

number of hours that is computed by multiplying the number of

overtime hours worked by 1-1/2.

(f) When an employee does not work more than 40 hours in a

workweek but the number of hours worked plus the number of hours

of holiday or other paid leave taken during the workweek exceeds

40 hours, the employee is entitled to compensatory time off at

the rate of one hour off for each of the excess hours. When an

employee does work 40 or more hours in a workweek and in addition

takes holiday or other paid leave during the workweek, and the

total number of hours worked still exceeds 40 after subtracting

the hours compensable under Subsections (c)-(e), the employee is

entitled to compensatory time off at the rate of one hour off for

each of the remaining hours in excess of 40. When an employee

does not work more than 40 hours in a workweek and the number of

hours worked plus the number of hours of holiday or other paid

leave taken during the week does not exceed 40 hours, the

employee may not accrue compensatory time for the week under this

section.

(g) Compensatory time off to which an employee is entitled under

Subsection (f) must be taken during the 12-month period following

the end of the workweek in which the compensatory time was

accrued or it lapses. An employee may not be paid for that

compensatory time, except as provided by this subsection and

Subsections (i) and (j). An employee of an institution of higher

education as defined by Section 61.003, Education Code, or an

employee engaged in a public safety activity, including highway

construction and maintenance or an emergency response activity,

may be paid at the employee's regular rate of pay for that

compensatory time if the employer determines that taking the

compensatory time off would disrupt normal teaching, research, or

other critical functions.

(h) Exceptions to the workweek overtime computation for public

safety, emergency response, or seasonal situations shall be made

in accordance with the federal Fair Labor Standards Act of 1938

(29 U.S.C. Section 201 et seq.).

(i) With authorization from the administrative head of the

agency for which an employee works, or that person's designee, an

employee may be paid for the hours of compensatory time the

employee earns for work directly related to a disaster or

emergency declared by the appropriate officer of the state or

federal government.

(j) With authorization from the administrative head of the

agency for which an employee works, or that person's designee, an

employee employed by a state mental health or mental retardation

facility may be paid for any unused compensatory time if the

employing agency determines that taking the compensatory time off

would disrupt the normal business functions of the agency.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 12, eff. Sept. 1,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1241, Sec. 4, eff. June 19, 2009.

Sec. 659.0155. PAYMENT TO EMPLOYEES OF TEXAS DEPARTMENT OF

CRIMINAL JUSTICE FOR OVERTIME. The Texas Department of Criminal

Justice shall compensate a person employed by the department for

any overtime accrued by the employee for which the employee is

entitled to compensation under Section 659.015 in the same month

the department compensates employees at the regular rate of pay

for the period in which the employee accrued the overtime.

Added by Acts 2007, 80th Leg., R.S., Ch.

1308, Sec. 43, eff. June 15, 2007.

Sec. 659.016. OVERTIME COMPENSATION FOR EMPLOYEES NOT SUBJECT TO

FAIR LABOR STANDARDS ACT; REDUCTIONS IN PAY. (a) This section

applies only to a state employee who is not subject to the

overtime provisions of the federal Fair Labor Standards Act of

1938 (29 U.S.C. Section 201 et seq.) and who is not an employee

of the legislature, including an employee of the lieutenant

governor, or of a legislative agency.

(b) When the sum of hours worked plus holiday or other paid

leave taken by a full-time employee during a workweek exceeds 40

hours, and not otherwise, the employee may be allowed to accrue

compensatory time for the number of hours that exceeds 40 hours.

When the sum of hours worked plus holiday or other paid leave

taken by a part-time employee during a workweek exceeds the

number of hours that the part-time employee is designated to work

during the workweek, and not otherwise, the employee may be

allowed to accrue compensatory time for the number of hours that

exceeds the number of hours that the employee is designated to

work during the workweek.

(c) An employee who is exempt as an executive, professional, or

administrative employee under 29 U.S.C. Section 213(a)(1) may be

allowed compensatory time off during the 12-month period

following the end of the workweek in which the time that exceeds

40 hours under Subsection (b) was accrued, at a rate not to

exceed one hour of compensatory time off for each hour of time

that exceeds 40 hours under Subsection (b) accrued.

(d) In accordance with 29 C.F.R. Section 541.118 and subject to

that section's exceptions as described by this section, an

employee who is exempt as an executive, professional, or

administrative employee under 29 U.S.C. Section 213(a)(1) is

entitled to receive full salary for any week in which the

employee performs work without regard to the number of days and

hours worked. This is also subject to the general rule that an

employee need not be paid for any workweek in which the employee

performs no work.

(e) A deduction may be made from the salary of an employee who

is exempt as an executive, professional, or administrative

employee under 29 U.S.C. Section 213(a)(1) if:

(1) the employee is not at work for a full day or longer for

personal reasons other than sickness, accident, jury duty,

attendance as a witness at a judicial proceeding, or temporary

military leave;

(2) the employee is not at work for a full day or longer because

of sickness or disability, including sickness or disability

covered by workers' compensation benefits, and the employee's

paid sick leave or workers' compensation benefits have been

exhausted;

(3) the deduction is a penalty imposed for a violation of a

significant safety rule relating to prevention of serious danger

in the workplace to other persons, including other employees; or

(4) in accordance with the special provisions applicable to

executive, professional, or administrative employees of public

agencies set forth in 29 C.F.R. Section 541.5d, the employee is

not at work for less than one day for personal reasons or because

of illness or injury and accrued leave is not used by the

employee because:

(A) permission to use accrued leave was not sought or was

denied;

(B) accrued leave has been exhausted; or

(C) the employee chooses to use leave without pay.

(f) In accordance with 29 C.F.R. Section 541.5d, a deduction

from the pay of an executive, professional, or administrative

employee because of an absence from work caused by a furlough

related to the budget does not affect the employee's status as an

employee paid on a salary basis, except for any workweek in which

the furlough occurs and for which the employee's pay is

accordingly reduced.

(g) If a deduction is made from an employee's salary in

violation of United States Department of Labor regulations, the

employee is entitled to reimbursement of the amount that should

not have been deducted.

(h) An employee who is not subject to the federal Fair Labor

Standards Act of 1938 under 29 U.S.C. Section 203(e)(2)(C)

because the employee is a staff member, appointee, or immediate

adviser of an elected officeholder may be allowed compensatory

time off under the terms and conditions determined by the

officeholder.

(i) Except as provided by this subsection and Subsection (j), an

employee covered by this section may not be paid for any unused

compensatory time. With authorization from the administrative

head of the agency for which a state employee works, or that

person's designee, an employee may be paid for the hours of

compensatory time the employee earns for work directly related to

a disaster or emergency declared by the appropriate officer of

the state or federal government.

(j) With authorization from the administrative head of the

agency for which an employee works, or that person's designee, an

employee employed by a state mental health or mental retardation

facility may be paid for any unused compensatory time if the

employing agency determines that taking the compensatory time off

would disrupt the normal business functions of the agency.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 12, eff. Sept. 1,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1241, Sec. 5, eff. June 19, 2009.

Sec. 659.017. OVERTIME COMPENSATION FOR LEGISLATIVE EMPLOYEES.

Consistent with the requirements of the federal Fair Labor

Standards Act of 1938 (29 U.S.C. Section 201 et seq.), overtime

pay and compensatory time off for employees of the legislative

branch, including employees of the lieutenant governor, are

determined:

(1) for employees of the house of representatives or the senate,

by the presiding officer of the appropriate house of the

legislature;

(2) for employees of an elected officeholder, by the employing

officeholder; and

(3) for employees of a legislative agency, by the administrative

head of the agency.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 12, eff. Sept. 1,

1999.

Sec. 659.018. COMPENSATORY TIME: PLACE WHERE WORK PERFORMED.

(a) Except under circumstances specified in the General

Appropriations Act or as provided by Subsection (b), an employee

of a state agency as defined by Section 658.001 may not, for

hours worked during any calendar week, accumulate compensatory

time off under Section 659.015(f) or 659.016 to the extent that

the hours are attributable to work performed at a location other

than the employee's regular or temporarily assigned place of

employment.

(b) An employee may accumulate compensatory time off for hours

worked during any calendar week at the employee's personal

residence if the employee obtains the advance approval of the

administrative head of the agency for which the employee works or

that person's designee.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 12, eff. Sept. 1,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1241, Sec. 6, eff. June 19, 2009.

Sec. 659.019. PART-TIME AND HOURLY EMPLOYMENT. (a) In

computing the salary of a part-time or hourly employee, the rate

of pay must be proportional to the rate authorized by the General

Appropriations Act for full-time employment in the same

classified position, or if the position is not under the state's

position classification plan, for full-time employment in the

applicable exempt position.

(b) A part-time employee is subject to Subchapter K and to the

leave without pay provisions of Section 659.085.

(c) The comptroller may adopt rules to determine the hourly rate

of an employee paid on an hourly basis.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 12, eff. Sept. 1,

1999.

Sec. 659.020. SALARY SUPPLEMENTATION. A state employee employed

by a state agency as defined by Section 658.001 whose position is

classified under Chapter 654 or whose exempt position is funded

by the General Appropriations Act may not receive a salary

supplement from any source unless a specific grant of authority

to do so is provided by the General Appropriations Act or other

law.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 12, eff. Sept. 1,

1999.

Sec. 659.021. ADMINISTRATIVE HEAD OF AGENCY. The administrative

head of a state agency as defined by Section 658.001 whose salary

as administrative head is established by the General

Appropriations Act may not receive a salary higher than that

established salary, even if the administrative head performs

duties assigned to a position title classified in the state's

position classification plan that is assigned to a salary group

that would pay a higher salary, unless the General Appropriations

Act specifically provides that a higher salary may be received.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 12, eff. Sept. 1,

1999.

Sec. 659.022. USE OF COMPENSATORY TIME BEFORE LAPSING. (a) If

an employee of a state agency as defined by Section 658.001 who

wishes to use accrued compensatory time that is subject to

lapsing submits a written request for permission to use the

accrued compensatory time to the employing state agency not later

than the 90th day before the date on which the accrued

compensatory time will lapse, the employing state agency shall:

(1) approve in writing the employee's request; or

(2) provide the employee with an alternate date on which the

employee may use the compensatory time.

(b) The employee may request permission to use the accrued

compensatory time within 90 days of the date on which it will

lapse, and the employing agency is encouraged to reasonably

accomodate the employee's use of the accrued compensatory time

before it lapses.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 12, eff. Sept. 1,

1999.

Sec. 659.023. COMPENSATORY TIME POLICY. (a) A state agency

shall notify its employees annually of the state's policy on

compensatory time.

(b) A state agency shall accommodate to the extent practicable

an employee's request to use accrued compensatory time.

(c) A state agency shall:

(1) provide an employee activated to military service as a

member of the reserve component of the armed forces with a

statement containing the balance of the employee's accrued state

compensatory time; and

(2) accommodate an employee's request to use the balance of the

employee's accrued state compensatory time before the

compensatory time expires.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 12, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., ch. 175, Sec. 3, eff.

Sept. 1, 2003.

Sec. 659.024. COMPENSATORY TIME FOR PERSONS GOVERNING STATE

AGENCIES. (a) In this section, "state agency" has the meaning

assigned by Section 658.001.

(b) This section does not apply to an employee who acts as the

administrative head of a state agency, including an executive

director.

(c) A member of the governing body of a state agency or a single

state officer who governs a state agency may not accrue

compensatory time under this subchapter or another state statute.

Added by Acts 2003, 78th Leg., ch. 793, Sec. 1, eff. Sept. 1,

2003.

Sec. 659.025. USE OF COMPENSATORY TIME BY CERTAIN EMERGENCY

SERVICES PERSONNEL; OPTIONAL OVERTIME PAYMENT. (a) In this

section, "emergency services personnel" includes firefighters,

police officers and other peace officers, emergency medical

technicians, emergency management personnel, and other

individuals who are required, in the course and scope of their

employment, to provide services for the benefit of the general

public during emergency situations.

(b) This section applies only to a state employee who is

emergency services personnel, who is not subject to the overtime

provisions of the federal Fair Labor Standards Act of 1938 (29

U.S.C. Section 201 et seq.), and who is not an employee of the

legislature, including an employee of the lieutenant governor or

of a legislative agency.

(c) Notwithstanding Section 659.016 or any other law, an

employee to whom this section applies may be allowed to take

compensatory time off during the 18-month period following the

end of the workweek in which the compensatory time was accrued.

(d) Notwithstanding Section 659.016 or any other law, the

administrative head of a state agency that employs an employee to

whom this section applies may pay the employee overtime at the

employee's regular hourly salary rate for all or part of the

hours of compensatory time off accrued by the employee during a

declared disaster in the preceding 18-month period. The

administrative head shall reduce the employee's compensatory time

balance by one hour for each hour the employee is paid overtime

under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

534, Sec. 1, eff. September 1, 2009.

Added by Acts 2009, 81st Leg., R.S., Ch.

1280, Sec. 4.01, eff. September 1, 2009.

SUBCHAPTER C. PER DIEM

Sec. 659.031. DEFINITION. In this subchapter, "state board"

means a board, commission, committee, council, or similar agency

in the executive or judicial branch of state government that is

composed of two or more members. The term does not include a

board, commission, committee, council, or similar agency whose

membership is elected by vote of the people.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1300, Sec. 11, eff.

Sept. 1, 1997.

Sec. 659.032. PER DIEM ENTITLEMENT. (a) A member of a state

board is entitled to a per diem in an amount set by the General

Appropriations Act for the member's service on the board.

(b) This section does not apply to a member of the legislature

who serves on a board by virtue of the member's office as a

legislator.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 659.033. STATUTORY PER DIEM SUSPENDED. (a) A law setting

the amount of per diem for members of a state board is suspended

to the extent of conflict with this subchapter.

(b) The law setting the amount of per diem for a member of a

state board is not suspended if the General Appropriations Act

does not set the amount of per diem to which the member is

entitled.

(c) A law setting a limit on the number of days for which a

state board member is entitled to a per diem is not suspended by

this subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER D. LONGEVITY PAY

Sec. 659.041. DEFINITIONS. In this subchapter:

(1) "Appointment" means a job title.

(2) "Full-time state employee" means:

(A) a state employee who works in the executive or judicial

branch of state government, other than a state institution of

higher education, and who is normally scheduled to work a total

of at least 40 hours a week for a single state agency;

(B) a state employee who works for a state institution of higher

education and who is normally scheduled to work a total of at

least 40 hours a week in one position, as determined under

Section 659.0411; or

(C) a state employee who works in the legislative branch of

state government and who is normally scheduled to work a total of

40 or more hours a week in all positions held in the legislative

branch.

(3) "Part-time state employee" means a state employee who is not

a full-time state employee.

(4) "State employee" means an individual who:

(A) is covered by Chapter 654;

(B) holds a line item or exempt position;

(C) works in a nonacademic position at a state institution of

higher education at least 20 hours a week for at least 4.5

consecutive months; or

(D) is an hourly employee of the state.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1035, Sec. 33, eff.

June 19, 1997.

Sec. 659.0411. APPOINTMENTS AT STATE INSTITUTIONS OF HIGHER

EDUCATION. (a) A state institution of higher education shall

determine whether a state employee who has more than one

appointment with the institution holds only one position or holds

one position for each appointment.

(b) A board of regents shall determine whether a state employee

who has an appointment with at least two state institutions of

higher education under the board's jurisdiction holds only one

position or holds one position for each appointment.

(c) A state employee who has an appointment with at least two

state institutions of higher education holds more than one

position if those institutions are not governed by the same board

of regents.

Added by Acts 1997, 75th Leg., ch. 1035, Sec. 34, eff. June 19,

1997.

Sec. 659.042. EXCLUSIONS. The following are not entitled to

longevity pay under this subchapter:

(1) a member of the legislature;

(2) an individual who holds a statewide office that is normally

filled by vote of the people, except as provided by Section

659.0445;

(3) an independent contractor or an employee of an independent

contractor;

(4) a temporary employee;

(5) an officer or employee of a public junior college;

(6) an academic employee of a state institution of higher

education; or

(7) a state employee who retired from state employment on or

after June 1, 2005, and who receives an annuity based wholly or

partly on service as a state officer or state employee in a

public retirement system, as defined by Section 802.001, that was

credited to the state employee.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Amended by:

Acts 2005, 79th Leg., Ch.

899, Sec. 13.01, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

1328, Sec. 1, eff. September 1, 2007.

Sec. 659.043. ENTITLEMENT. (a) A state employee is entitled to

longevity pay to be included in the employee's monthly

compensation if the employee:

(1) is a full-time state employee on the first workday of the

month;

(2) is not on leave without pay on the first workday of the

month; and

(3) has accrued at least two years of lifetime service credit

not later than the last day of the preceding month.

(b) Notwithstanding Subsection (a)(2), an employee of the Texas

School for the Blind and Visually Impaired or the Texas School

for the Deaf who is otherwise eligible for longevity pay is

entitled to longevity pay for each month that the employee is in

a full-time paid status on the first workday for which the school

has work scheduled for the employee.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 1277, Sec. 1, eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1158, Sec. 31, eff. June

15, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

899, Sec. 13.02, eff. September 1, 2005.

Sec. 659.044. AMOUNT. (a) Except as provided by Subsections

(e) and (f) and Section 659.0445, the monthly amount of longevity

pay is $20 for every two years of lifetime service credit.

(b) The amount increases when the 4th, 6th, 8th, 10th, 12th,

14th, 16th, 18th, 20th, 22nd, 24th, 26th, 28th, 30th, 32nd, 34th,

36th, 38th, 40th, and 42nd years of lifetime service credit are

accrued.

(c) An increase is effective beginning with the month following

the month in which the 4th, 6th, 8th, 10th, 12th, 14th, 16th,

18th, 20th, 22nd, 24th, 26th, 28th, 30th, 32nd, 34th, 36th, 38th,

40th, and 42nd years of lifetime service credit are accrued.

(d) An employee may not receive from the state as longevity pay

more than the amount determined under Subsection (a) or (e), as

applicable, regardless of the number of positions the employee

holds or the number of hours the employee works each week.

(e) This subsection applies only to an employee of the Texas

Youth Commission who is receiving less than the maximum amount of

hazardous duty pay that the commission may pay to the employee

under Section 659.303. The employee's monthly amount of

longevity pay is the sum of:

(1) $4 for each year of lifetime service credit, which may not

include any period served in a hazardous duty position; and

(2) the lesser of:

(A) $4 for each year served in a hazardous duty position; or

(B) the difference between:

(i) $7 for each year served in a hazardous duty position; and

(ii) the amount paid by the commission for each year served in a

hazardous duty position.

(f) A state employee who retired from state employment before

June 1, 2005, and who returned to state employment before

September 1, 2005, is entitled to receive longevity pay. The

monthly amount of longevity pay the employee is entitled to

receive equals the amount of longevity pay the employee was

entitled to receive immediately before September 1, 2005. A

state employee who retired from state employment before June 1,

2005, and who returns to state employment on or after September

1, 2005, is not entitled to receive longevity pay.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1035, Sec. 35, eff.

June 19, 1997, except as provided in Sec. 91; Acts 2001, 77th

Leg., ch. 1158, Sec. 32, eff. Sept. 1, 2001; Acts 2001, 77th

Leg., ch. 1158, Sec. 104, eff. June 15, 2001.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

899, Sec. 13.03, eff. September 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1328, Sec. 2, eff. September 1, 2007.

Sec. 659.0445. LONGEVITY PAY FOR STATE JUDGES AND JUSTICES. (a)

A judge or justice who receives a salary paid by the state, is a

member of the Judicial Retirement System of Texas Plan One or the

Judicial Retirement System of Texas Plan Two, and is an active

judge, as defined by Section 74.041, is entitled to longevity pay

as provided by this section.

(b) The monthly amount of longevity pay under this section to

which a judge or justice described by Subsection (a) is entitled:

(1) is equal to the product of.031 multiplied by the amount of

the judge's or justice's current monthly state salary; and

(2) becomes payable beginning with the month following the month

in which the judge or justice completes 16 years of service for

which credit is established in the applicable retirement system.

(c) Repealed by Acts 2009, 81st Leg., R.S., Ch. 1353, Sec. 4,

eff. September 1, 2009.

(d) The commissioners court of a county may provide longevity

pay calculated in accordance with this section to a judge or

justice described by Subsection (a) who:

(1) previously served as a statutory county court judge in the

county;

(2) is not otherwise eligible for longevity pay under Subsection

(b); and

(3) would be entitled to longevity pay under this section if the

service credit the judge or justice earned as a statutory county

court judge was established in the applicable retirement system.

(e) Notwithstanding any other law, longevity pay that is paid to

a judge or justice under this section is not included as part of

the judge's or justice's combined salary from state and county

sources for purposes of the salary limitations provided by

Section 659.012.

Added by Acts 2007, 80th Leg., R.S., Ch.

1328, Sec. 3, eff. September 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1353, Sec. 3, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1353, Sec. 4, eff. September 1, 2009.

Sec. 659.045. CHANGE IN STATUS. If a state employee ceases

being a full-time state employee after the first workday of a

month but otherwise qualifies for longevity pay, the employee's

compensation for the month includes full longevity pay.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 659.046. ACCRUAL OF LIFETIME SERVICE CREDIT. (a) An

employee accrues lifetime service credit for the period in which

the employee:

(1) serves as a full-time, part-time, or temporary state

employee or otherwise serves as an employee of the state;

(2) serves as a member of the legislature;

(3) holds a statewide office that is normally filled by vote of

the people; or

(4) serves as an academic employee of a state institution of

higher education.

(b) An employee who is on leave without pay for an entire

calendar month does not accrue lifetime service credit for the

month. An employee who is on leave without pay for less than an

entire calendar month accrues lifetime service credit for the

month if the employee otherwise qualifies to accrue credit under

Subsection (a).

(c) An employee who simultaneously holds two or more positions

that each accrue lifetime service credit accrues credit for only

one of the positions.

(d) An employee who begins working on the first workday of a

month in a position that accrues lifetime service credit is

considered to have begun working on the first day of the month.

(e) An employee does not accrue lifetime service credit for a

period in which the employee serves as an officer or employee of

a public junior college.

(f) The amount of an employee's lifetime service credit does not

include the period served in a hazardous duty position if the

employee is:

(1) entitled to receive hazardous duty pay under Section

659.302; or

(2) receiving the maximum amount of hazardous duty pay that the

Texas Youth Commission may pay to the employee under Section

659.303.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 33, eff.

Sept. 1, 2001.

Sec. 659.047. COMPTROLLER RULES. The comptroller shall adopt

rules to administer this subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER E. ADDITIONAL COMPENSATION AND EXPENSES

Sec. 659.061. EXPENSES OF EMPLOYEES INJURED OR KILLED WHILE ON

DUTY. In addition to other benefits of employment provided by

law, a state agency may, to the extent authorized by an

appropriation for the purpose, spend appropriated funds to pay

for drugs and medical, hospital, laboratory, and funeral expenses

of an employee under the jurisdiction and control of the agency:

(1) who is injured or killed while engaged in the performance of

a necessary governmental function assigned to the employee; or

(2) whose duties require the employee to be exposed to

unavoidable dangers peculiar to the performance of a necessary

governmental function.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER F. METHOD AND FREQUENCY OF PAYMENT

Sec. 659.081. 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.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 279, Sec. 13, eff.

Sept. 1, 1999.

Sec. 659.082. PAYMENT TWICE A MONTH. (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.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 734, Sec. 1, eff.

Sept. 1, 1997; Acts 1999, 76th Leg., ch. 279, Sec. 14, eff. Sept.

1, 1999.

Sec. 659.083. PAYDAY. (a) 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 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.

(c) In this section, "working day" means a day other than

Saturday, Sunday, or a national holiday as listed in the General

Appropriations Act or Chapter 662. A day does not cease to be a

national holiday because a state agency maintains or is required

to maintain a minimum working staff on the holiday.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1035, Sec. 1, eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 8.43, eff.

Sept. 1, 1997.

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.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 659.085. DETERMINING AMOUNT OF MONTHLY OR HOURLY PAY;

PROPORTIONATE REQUIREMENT FOR PART-TIME PAY. (a) The amount of

monthly salary for an annual employee who maintains a 40-hour

workweek and is covered under Chapter 658 is computed in

accordance with the General Appropriations Act and equitable

rules adopted by the comptroller.

(b) For purposes of partial payment or other applicable

situations, an employee's equivalent hourly rate of pay for a

given month is computed in accordance with the General

Appropriations Act and equitable rules adopted by the

comptroller. Alternatively, an institution of higher education as

defined by Section 61.003, Education Code, may compute an

employee's equivalent hourly rate of pay for a given month by

dividing the employee's annual salary by 2080, which is the

number of working hours in the standard work year. This

subsection applies only to full-time employees described by

Subsection (a) and to part-time salaried employees.

(c) When an employee is on leave without pay, compensation for

the pay period will be reduced by an amount computed in

accordance with the General Appropriations Act and equitable

rules adopted by the comptroller.

(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.

Added by Acts 1999, 76th Leg., ch. 279, Sec. 15, eff. Sept. 1,

1999.

SUBCHAPTER G. SUPPLEMENTAL DEDUCTIONS

Sec. 659.101. DEFINITION. In this subchapter, "state agency"

means a department, commission, board, office, or other agency of

any branch of state government, including an institution of

higher education as defined by Section 61.003, Education Code.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.16(a), eff. Sept.

1, 1995.

Sec. 659.102. DEDUCTION FOR SUPPLEMENTAL OPTIONAL BENEFITS

PROGRAM. (a) An employee of a state agency may authorize in

writing a deduction each pay period from the employee's salary or

wage payment for coverage of the employee under an eligible

supplemental optional benefits program. A deduction may be made

each pay period from the employee's salary or wage payment

without authorization in writing from the employee for

participation in a 401(k) plan as provided by Section 609.5025.

(b) The Employees Retirement System of Texas shall designate

supplemental optional benefits programs that are eligible under

this section and that promote the interests of the state and

state agency employees.

(c) The supplemental optional benefits program may include

permanent life insurance, catastrophic illness insurance,

disability insurance, prepaid legal services, or a qualified

transportation benefit.

(d) A qualified transportation benefit is a transportation

benefit meeting the requirements of Section 132(f), Internal

Revenue Code of 1986. The Employees Retirement System of Texas

shall determine a fee or charge that may be paid as a qualified

transportation benefit.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.16(a), eff. Sept.

1, 1995. Amended by Acts 2003, 78th Leg., ch. 1111, Sec. 9, eff.

Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1310, Sec. 31, eff. June

20, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1409, Sec. 3, eff. June 15, 2007.

Sec. 659.103. DEDUCTION TO CREDIT UNION. (a) An employee of a

state agency may authorize in writing a deduction each pay period

from the employee's salary or wage payment for payment to a

credit union to be credited to a share or deposit account of the

employee.

(b) A designation by the Employees Retirement System of Texas is

not necessary for a deduction under this section.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.16(a), eff. Sept.

1, 1995.

Sec. 659.1031. DEDUCTION OF MEMBERSHIP FEES FOR ELIGIBLE STATE

EMPLOYEE ORGANIZATIONS. (a) An employee of a state agency may

authorize in writing a deduction each pay period from the

employee's salary or wage payment for payment to an eligible

state employee organization of a membership fee in the

organization.

(b) In this section, "eligible state employee organization"

means a state employee organization with a membership of at least

2,000 active or retired state employees who hold or who have held

certification from the Commission on Law Enforcement Officer

Standards and Education.

Added by Acts 2003, 78th Leg., ch. 1310, Sec. 32, eff. June 20,

2003.

Sec. 659.104. AUTHORIZATION. (a) An authorization for a

deduction under this subchapter must direct the comptroller or,

if applicable, the appropriate financial officer of an

institution of higher education to transfer the withheld funds to

the program, eligible state employee organization, or credit

union designated by the employee.

(b) The comptroller or financial officer shall comply with the

direction.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.16(a), eff. Sept.

1, 1995. Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 33, eff.

June 20, 2003.

Sec. 659.105. FORM AND MANNER. A deduction under this

subchapter must be made in a form and manner prescribed by the

comptroller or the appropriate financial officer of an

institution of higher education.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.16(a), eff. Sept.

1, 1995.

Sec. 659.106. DURATION. (a) An employee authorizing a

deduction under this subchapter or a person designated by the

employee may change or revoke the authorization by delivering

written notice of the change or revocation to the comptroller or

the appropriate financial officer of an institution of higher

education.

(b) An authorization is effective until the comptroller or

financial officer receives the notice.

(c) The notice must be given in the form and manner prescribed

by the comptroller or financial officer.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.16(a), eff. Sept.

1, 1995.

Sec. 659.107. AUTHORIZATION VOLUNTARY. The making of an

authorization for a deduction under this subchapter by the

employee is voluntary.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.16(a), eff. Sept.

1, 1995.

Sec. 659.108. WITHHOLDING OF ADMINISTRATIVE FEE. (a) The state

may withhold from the employee's salary or wage payment an

administrative fee for making a deduction under this subchapter.

(b) An institution of higher education that is authorized to

operate a payroll system reimbursable from the state treasury may

withhold from the employee's salary or wage payment an

administrative fee for making the deduction under this

subchapter.

(c) The administrative fee may not exceed the lower of the

actual administrative cost of making the deduction or the highest

fee charged by the state or institution, as appropriate, for

making another similar deduction.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.16(a), eff. Sept.

1, 1995.

Sec. 659.109. ALLOCATION OF ADMINISTRATIVE FEES. The state

shall allocate and pay to each state agency that incurs costs in

administering this subchapter the agency's proportional amount of

the administrative fees collected by the state under this

subchapter.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.16(a), eff. Sept.

1, 1995. Amended by Acts 1997, 75th Leg., ch. 1035, Sec. 40, eff.

June 19, 1997.

Sec. 659.110. RULES. The comptroller may establish procedures

and adopt rules to administer the credit union and the eligible

state employee organization membership fee deduction programs

authorized by this subchapter.

Added by Acts 1997, 75th Leg., ch. 1035, Sec. 16, eff. June 19,

1997. Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 34, eff.

June 20, 2003.

SUBCHAPTER H. BENEFIT REPLACEMENT PAY

Sec. 659.121. DEFINITIONS. In this subchapter:

(1) "Compensation" means, except as provided by Section 659.124,

salary or wages subject to tax under the Federal Insurance

Contributions Act.

(2) "Eligible state employee" means an individual who was on

August 31, 1995:

(A) employed by a state agency and eligible for state payment of

the employee tax under Section 606.064 as that section existed on

that date;

(B) using unpaid leave from a position with a state agency, if

the individual would have been eligible for state payment of the

employee tax under Section 606.064 as that section existed on

that date had the individual not been using unpaid leave from the

position; or

(C) not working for a state agency if:

(i) the individual was not working on that date solely because

the individual's employment with the agency customarily does not

include the summer months;

(ii) the individual had contracted with the agency not later

than that date for the individual to resume working for the

agency not later than September 2, 1995; and

(iii) the position held by the individual on September 2, 1995,

would have made the individual eligible for state payment of the

employee tax under Section 606.064 as that section existed on

August 31, 1995, if the employee had held the position on that

date.

(3) "Eligible state-paid judge" means an individual who on

August 31, 1995:

(A) held office; and

(B) was eligible for state payment of the employee tax under

Section 606.065 as that section existed on that date.

(4) "Employee tax" means the tax that state employees and

state-paid judges pay under the Federal Insurance Contributions

Act.

(5) "Retirement contribution" means a mandatory contribution by

an eligible state employee or eligible state-paid judge to a

retirement system.

(6) "Retirement system" means the Teacher Retirement System of

Texas, the Employees Retirement System of Texas, the optional

retirement program governed by Chapter 830, the Judicial

Retirement System of Texas Plan One, or the Judicial Retirement

System of Texas Plan Two.

(7) "State agency" has the meaning assigned by Section 606.061.

Added by Acts 1995, 74th Leg., ch. 417, Sec. 3, eff. Sept. 1,

1995.

Sec. 659.122. INCLUSION OF BENEFIT REPLACEMENT PAY. The salary

or wages paid after December 31, 1995, to an eligible state

employee or an eligible state-paid judge includes benefit

replacement pay in the amount provided by Section 659.123.

Added by Acts 1995, 74th Leg., ch. 417, Sec. 3, eff. Sept. 1,

1995.

Sec. 659.123. AMOUNT OF BENEFIT REPLACEMENT PAY. (a) Except as

provided by Section 659.124, the benefit replacement pay of an

eligible state employee or an eligible state-paid judge for a pay

period is equal to the sum of:

(1) 5.85 percent of the compensation earned by the employee or

judge during the pay period, subject to the limit provided by

Subsection (b); and

(2) an additional amount equal to the retirement contribution

paid by the employee or judge because of the benefit replacement

pay provided by this subsection.

(b) The amount paid to an eligible state employee or an eligible

state-paid judge under Subsection (a)(1) may not exceed $965.25

each calendar year.

Added by Acts 1995, 74th Leg., ch. 417, Sec. 3, eff. Sept. 1,

1995.

Sec. 659.124. AMOUNT OF BENEFIT REPLACEMENT PAY FOR HIGHER

EDUCATION EMPLOYEES. (a) For a state employee employed by an

institution of higher education, the benefit replacement pay is

an increase in compensation equal to the sum of:

(1) 5.85 percent of the employee's compensation as of October

31, 1995, subject to the limit provided by Subsection (b); and

(2) an additional amount equal to the retirement contribution

paid by the employee because of the benefit replacement pay

provided by this subsection.

(b) The amount paid to an eligible state employee of an

institution of higher education under Subsection (a)(1) may not

exceed $965.25.

(c) In this section, "compensation" means annualized base salary

or wages, including longevity and hazardous duty pay.

Added by Acts 1995, 74th Leg., ch. 417, Sec. 3, eff. Sept. 1,

1995.

Sec. 659.125. PAYING B