SB 574

relating to an annual adjustment for inflation to the monthly
amount of longevity pay for state employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 659.044, Government Code, is amended by
amending Subsection (a) and adding Subsections (a-1) and (a-2) to
(a)  Except as provided by Subsections (e) and (f) and
Section 659.0445, the monthly amount of longevity pay is the amount
set by the comptroller under Subsection (a-1) [$20] for every two
years of lifetime service credit.
(a-1)  Not later than July 1 of each year, the comptroller
shall set the amount of longevity pay for purposes of Subsection (a)
in the manner provided by this subsection.  The comptroller shall
increase the amount of longevity pay in effect on the date the
increase is made by an amount equal to the product of the amount of
longevity pay in effect on that date and the percentage increase, if
any, in an index considered by the comptroller to most accurately
report annual changes in the purchasing power of the dollar for
consumers in this state.  The increased amount of longevity pay is
effective for the 12-month period beginning on September 1 of the
year in which the increase is made.  Not later than August 1 of each
year, the comptroller shall publish notice of the increased amount
of longevity pay determined under this subsection and the period
for which that amount will be effective in the Texas Register and
post that information in a prominent location on the comptroller's
(a-2)  Notwithstanding Subsection (a-1), for the state
fiscal year beginning September 1, 2025, and ending August 31,
2026, the comptroller shall set the amount of longevity pay for
purposes of Subsection (a) in an amount equal to the sum of $20 and
the product of $20 and the percentage increase, if any, in an index
considered by the comptroller to most accurately report annual
changes in the purchasing power of the dollar for consumers in this
state.  This subsection expires September 1, 2026.
SECTION 2.  The comptroller of public accounts shall
calculate the amount of longevity pay in effect for the state fiscal
year beginning September 1, 2025, in the manner required by Section
659.044(a-2), Government Code, as added by this Act.  In the state
fiscal year beginning September 1, 2026, and in subsequent state
fiscal years, the comptroller of public accounts shall calculate
the amount of longevity pay in effect for the applicable state
fiscal year in the manner required by Section 659.044(a-1),
Government Code, as added by this Act.
SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.