CHAPTER 155. DEDUCTIONS FROM COMPENSATION OF COUNTY EMPLOYEES - Texas Statutes

LOCAL GOVERNMENT CODE

TITLE 5. MATTERS AFFECTING PUBLIC OFFICERS AND EMPLOYEES

SUBTITLE B. COUNTY OFFICERS AND EMPLOYEES

CHAPTER 155. DEDUCTIONS FROM COMPENSATION OF COUNTY EMPLOYEES

SUBCHAPTER A. AUTHORIZED DEDUCTIONS FOR COUNTIES

Sec. 155.001. DEDUCTIONS AUTHORIZED IN COUNTIES; PURPOSES. (a)

The commissioners court, on the request of a county employee, may

authorize a payroll deduction to be made from the employee's

wages or salary for:

(1) payment to a credit union;

(2) payment of membership dues in a labor union or a bona fide

employees association;

(3) payment of fees for parking in a county-owned facility;

(4) payment to a charitable organization; or

(5) payment relating to an item not listed in this subsection if

the commissioners court determines that the payment serves a

public purpose.

(b) In this section, "charitable organization" has the meaning

assigned by Section 659.131, Government Code.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1995, 74th Leg., ch. 433, Sec. 1, eff. Aug. 28,

1995; Acts 1995, 74th Leg., ch. 817, Sec. 1, eff. Sept. 1, 1995;

Acts 1999, 76th Leg., ch. 62, Sec. 13.04, eff. Sept. 1, 1999;

Acts 2001, 77th Leg., ch. 185, Sec. 1, eff. May 18, 2001; Acts

2003, 78th Leg., ch. 1123, Sec. 1, eff. June 20, 2003.

Sec. 155.002. EMPLOYEE'S REQUEST. (a) A request for a payroll

deduction must:

(1) be in writing;

(2) be submitted to the county auditor; and

(3) state the amount to be deducted and the entity to which the

amount is to be transferred.

(b) A request remains in effect until the county auditor

receives a written notice of revocation signed by the employee.

(c) A payroll deduction may not exceed the amount stated in the

request.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 155.003. PAYMENT OF ADMINISTRATIVE COSTS. (a) Public

funds may not be used to pay the administrative costs of making a

deduction, except for a deduction relating to the payment of

parking fees in a county-owned facility.

(b) The credit union, labor union, or employees association for

whose benefit a deduction is made shall pay any administrative

costs for making the deduction. The commissioners court shall

determine the amount of the administrative costs.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 155.004. OTHER STATUTE NOT AFFECTED. This chapter does not

affect Chapter 617, Government Code.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(16), eff.

Sept. 1, 1995.

SUBCHAPTER B. CERTAIN DEDUCTIONS MADE BY COUNTY TREASURER OR

OTHER OFFICER

Sec. 155.021. DEDUCTIONS ENUMERATED. The county treasurer or,

if another officer is specified by law, that other officer shall

make the deductions from, or take other similar actions with

regard to, the compensation of county employees as required:

(1) for employee contributions for coverage under the federal

social security program in accordance with Chapter 606,

Government Code;

(2) for the purchase of annuities or for contributions to

investments for employees in accordance with Chapter 22, Acts of

the 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,

Vernon's Texas Civil Statutes);

(3) for the purchase of United States savings bonds for

employees in accordance with Chapter 606, Government Code;

(4) for employee participation in a deferred compensation plan

in accordance with Chapter 609, Government Code; or

(5) for employee contributions to a retirement system in

accordance with Section 845.403, Government Code.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 179, Sec. 2(j), eff. Sept.

1, 1989; Acts 1993, 73rd Leg., ch. 268, Sec. 39, eff. Sept. 1,

1993.

SUBCHAPTER C. CAFETERIA PLAN SALARY REDUCTIONS

Sec. 155.041. DEFINITION. In this subchapter, "county employee"

means a person who receives compensation for service performed,

other than as an independent contractor, for a county, for a

precinct or other unit of a county, or for a county officer

acting in an official capacity.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 36, eff. Aug. 28,

1989. Amended by Acts 2001, 77th Leg., ch. 51, Sec. 1, eff. May

7, 2001.

Sec. 155.042. BENEFIT PROGRAM. The commissioners court of a

county by order or resolution may establish a program to provide

benefits that qualify for a cafeteria plan or a bona fide

compensation reduction arrangement under the federal Internal

Revenue Code of 1986 and regulations adopted under that code.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 36, eff. Aug. 28,

1989. Amended by Acts 2001, 77th Leg., ch. 51, Sec. 1, eff. May

7, 2001.

Sec. 155.043. SALARY REDUCTION AGREEMENTS. (a) If the

commissioners court establishes a program under this subchapter,

the court shall authorize county employees to enter into

voluntary agreements with the county to reduce the periodic

compensation paid the employees by the county by amounts to be

used to finance benefit options provided under the program. An

authorization under this section must be made available to all

employees of the county.

(b) Amounts by which a county employee's compensation is reduced

under an agreement under this section are excluded from the

computation of contributions and other payments governed by

federal law to the extent authorized by federal law, including

withholding payments for federal income taxes and contributions

to the federal old age and survivors insurance program, but are

not excluded in the computation of contributions to and benefits

from the Texas County and District Retirement System and other

retirement programs governed by state law.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 36, eff. Aug. 28,

1989. Amended by Acts 2001, 77th Leg., ch. 51, Sec. 1, eff. May

7, 2001.

Sec. 155.044. RULES. The commissioners court may adopt rules,

consistent with this subchapter and federal requirements, for

participation in and administration of the program authorized by

this subchapter.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 36, eff. Aug. 28,

1989. Amended by Acts 2001, 77th Leg., ch. 51, Sec. 1, eff. May

7, 2001.

SUBCHAPTER D. INSURANCE DEDUCTIONS IN COUNTIES

Sec. 155.061. DEDUCTIONS AUTHORIZED. (a) The commissioners

court of a county, on the request of a county official or

employee, may authorize a payroll deduction to be made from the

official's or employee's wages or salary for the payment of

premiums on an individual insurance policy, including a health,

accident, dental, accidental death and dismemberment, disability,

cancer or other catastrophic illness or disease, hospital,

surgical, medical expense, or whole or term life insurance

policy, that insures the official or employee or the dependents

of the official or employee.

(b) If the commissioners court authorized a payroll deduction

under this section, the commissioners court may not pay any part

of the premiums on the policy.

Added by Acts 1991, 72nd Leg., ch. 302, Sec. 1, eff. Aug. 26,

1991.

Sec. 155.062. REQUEST FOR DEDUCTION. (a) A request for an

insurance deduction must:

(1) be submitted to the county officer authorized by the

commissioners court to administer payroll deductions; and

(2) state the amount to be deducted and the entity to which the

amount is to be transferred.

(b) A request remains in effect until the county officer

authorized to administer the insurance deductions receives a

notice of change.

(c) An insurance deduction may not exceed the amount stated in

the request plus the amount of any change in applicable insurance

premiums imposed after the date the request for deduction is

submitted.

(d) If the amount of an applicable insurance premium is changed

after the date the request for deduction is submitted, the county

officer authorized to administer insurance deductions shall

provide written notice of the change to each affected employee.

The notice must be provided before the change takes effect.

Added by Acts 1991, 72nd Leg., ch. 302, Sec. 1, eff. Aug. 26,

1991. Amended by Acts 1997, 75th Leg., ch. 96, Sec. 1, eff. Sept.

1, 1997.

Sec. 155.063. ADMINISTRATION OF DEDUCTIONS. (a) The

commissioners court may authorize:

(1) a county officer to administer the insurance deductions and

to transfer an insurance deduction to the appropriate entity; and

(2) the county officer to charge the appropriate entity the

costs of administering an insurance deduction.

(b) The commissioners court may require an entity that will

receive a transferred deduction under this section to submit to

the commissioners court information required by the court to

determine the stability and financial solvency of the insurance

company and of the availability of benefits under the insurance

policy.

(c) The commissioners court may require the submission of other

information the commissioners court determines necessary to

justify an insurance deduction.

(d) The payment by the county of administrative costs of making

an insurance deduction may not be considered as evidence of a

contract of the insured's employment with the county.

Added by Acts 1991, 72nd Leg., ch. 302, Sec. 1, eff. Aug. 26,

1991.