HB2431 - 452R - House Bill Summary

House of Representatives

HB 2431

payroll deductions; membership dues

Sponsors: Representatives Poelstra, Loredo: Miranda, Nelson

X	Committee on Counties & Municipalities
	Committee on Retirement & Government Operations
	Caucus and COW
	Third Read
	As Passed the House

HB 2431 permits payroll deductions for the membership dues of an employee’s association.

History

Payroll deduction statute, allowing state employees to pay premiums on “existing” group insurance policies with pretax dollars, was designed to allow employees to continue current coverage in the event that the state changed insurance providers, not to confer special privilege on the insurer. This statute was also adopted in order to “grandfather in” insurers regarding the sale of new insurance to state employees; such construction would have created special privilege, which would have been in violation of the State Constitution.

Provisions

· Stipulates that the governing body of a county, municipality, school district or special taxing district shall deduct from an employee’s salary or wages the amount requested for membership dues to an employee’s association as long as the association does not claim the right to strike.

· Ensures that participation in the payroll deduction program is voluntary.

· Stipulates that the employee’s written request for payroll deduction shall:

Ø Be in a form outlined by the governmental entity.

Ø State the amount to be deducted each pay period.

Ø Direct the deducted monies to the designated employee’s association.

· Requires that the amount deducted shall not exceed the amount in the written request.

· Allows the deduction request to remain in effect until the governmental entity receives a written notice of revocation from the employee.

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· 45th Legislature