The Attorney General of Texas 

December 31, 1982 

MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. Box 12548 

Austin. TX. 78711. 2548 

5121475-2501 

Telex 9101874.1387 

Telecopier 5121475-0286 

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Dallas, TX. 75201.4709 

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McA,,en, TX. 78501-1685 

5121682.4547 

200 Main Plaza, Suite 400 

San Antonio, TX. 76205.2797 

5121225~4191 

An Equal Opportunity/ 

Affirmative Action Employer 

Mr. Kenneth H. Ashworth 

Connnissioner 

Coordinating Board 

Texas College & University System 

200 E. Riverside Drive 

Austin, Texas 78704 

Opinion No. MW-566 

lk: Whether Senate Bill No. 

118 of the Sixty-seventh 

Legislature applies to public 

community junior colleges 

Dear Mr. Ashworth: 

You ask two questions regarding Senate Bill No. 118 enacted by 

the Sixty-seventh Legislature. Acts 1981, 67th Leg., ch. 16, at 21. 

This bill, codified as article 6813e, V.T.C.S., provides in part: 

sec. 2. A state governmental body 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. 

You first ask whether article 6813e applies to public community 

junior colleges. 

This statute defines "state governmental body" in part as 

follows: 

(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 the state, including 

an institution of higher education as defined by 

section 61.003, Texas Education Code, as 

amended.... 

Section 61.003 of the Texas Education Code defines "institution of 

higher education" to include "any public junior college." Article 

6813e therefore applies to officers and employees of public cormunity 

junior colleges whose compensation is paid in full or part from state 

funds. 

You next ask whether article 6813e, V.T.C.S., prohibits 

deductions from the compensation of public community junior college 

officers or employees when the deduction is for personal savings or 

indebtedness and is forwarded to a credit union or bank. 

p. 2083 
Mr. Kenneth H. Ashworth - Page 2 (MW-566) 

The answer to your question depends on whether this kind of 

transaction involves "a deduction from the compensation paid" to the 

officer or employee. "Deduction" is defined by the dictionary as 

"something that is or may be subtracted," for example, deductions from 

taxable income. Webster's New Collegiate Dictionary 293 (1980). We 

believe article 6813e, V.T.C.S., applies to any amount subtracted from 

an employee's paycheck representing take-home pay. Thus, article 

6813e, V.T.C.S., would prohibit deductions from the compensation of 

public community junior college officers and employees when the 

deduction is for personal savings or indebtedness to be forwarded to a 

credit union or bank. 

A brief submitted to this office suggests that article 6813e does 

not apply to deductions which merely constitute a different form of 

payment to an employee, such as payment of a portion of his salary to 

his credit union account. However, there are currently on the books 

statutes which effectively offer a different form of payment to the 

employee. Article 6252-3b, V.T.C.S., allows public employees to 

participate in deferred compensation plans. Even though the employee 

will ultimately receive the money, the legislature considered it 

necessary to enact a statute authorizing state officers to defer an 

employee's compensation. 

The legislative history reveals some discussion of the deposit of 

an entire paycheck in the employee's credit union account. senate 

Floor Tape 1, side 1, Senate Bill No. 118, 2d Reading. Feb. 23, 1981. 

However, the discussion did not cover the transfer of a portion of the 

employee's check to his savings account. The distinction between 

"deduction" and deposit of a paycheck in a financial institution is 

illustrated by section (3) of article 4344b. V.T.C.S., enacted by the 

same legislature which enacted article 6813e, V.T.C.S. This statute 

concerns the direct deposit of payroll warrants by magnetic tape 

transfer. See Attorney General Opinions MW-333 (1981); MW-213 (1980). 

Article 4344b provides in part: 

(3) Notwithstanding the provisions of any 

other statute, the Comptroller of Public Accounts 

may establish and operate an electronic funds 

transfer system to transfer directly into their 

accounts in financial institutions onlv: (11 . , 

employees' gross state salaries less deductions 

specifically authorized by state or federal law or 

reimbursement for travel and subsistence of 

employees and (ii) payments of annuitants by the 

Employees Retirement System of Texas or the 

Teacher Retirement System of Texas under either 

system's administrative jurisdiction. An 

authorized payee must request in writing to 

participate in any electronic funds transfer 

system established and operated by the Comptroller 

of Public Accounts. A single transfer may contain 

p. 2084 
Mr. Kenneth H. Ashworth - Page 3 (MW-566) 

payments to multiple payees without the necessity 

of issuing individual warrants for each payee. 

The Comptroller shall establish procedures for 

administering the system and may use the services 

of financial institutions, automated 

clearinghouses, and the federal government. The 

use of electronic funds transfer or any other 

payment means does not create any rights that 

would not have been created had an individual 

state warrant been used as the payment medium. 

The State Treasurer may not make payment of a 

state employee’s salary before the last working 

day of the payroll period. (Emphasis added). 

Acts 1981, 67th Leg., ch. 253, at 632. Thus, the legislature 

authorized deposit of the employee’s salary less deductions 

specifically authorized by law. We believe the transfer of a portion 

of the employee’s salary to his savings account would constitute a 

deduction within article 6813e. 

You also ask whether section 2.07 of the Education Code provides 

authority for such salary deductions. This statute provides in part: 

(b) Any teacher’s or school employee’s 

assignment, pledge, or transfer of his salary or 

wages 68 security for indebtedness -- or any 

interest or part of his salary or wages -- then 

due or which may become due under an existing 

contract of employment shall be enforceable only 

under the following conditions: 

(1) Before or at the time of execution, 

delivery, or acceptance of an assignment, 

pledge, or transfer, written approval must be 

obtained from the employing authority or 

officer, and if the teacher or school 

employee executing the instrument is employed 

by: 

. . . . 

(C) a college, university, or any 

other educational institution, approval 

of his assignment, pledge, or transfer 

must be obtained from the salary 

disbursement officer of the college, 

university, or other educational 

institution; 

(2) Any assignment, pledge, or transfer 

must be in writing and acknowledged as 

p. 2085 
Mr. Kenneth H. Ashworth - Page 4 (MW-566) 

required for the acknowledgement of deeds or 

other recorded instruments, and if executed 

by a married person, it must also be executed 

and acknowledged in a like manner by his or 

her spouse; however, the employer approving 

an assignment, pledge, or transfer need not 

acknowledge it; and 

(3) An assignment, pledge, or transfer 

shall be enforceable only to the extent that 

the indebtedness it secures is a valid and 

enforceable obligation. 

The predecessor of this statute has been held to authorize salary 

deductions from teachers' salaries as security for indebtedness 

pursuant to the teacher's assignment of salary. Attorney General 

Opinions o-4033, O-3474 (1941); O-2141 (1940). See also Attorney 

General Opinion M-613 (1970). If an officer or employee has made an 

assignment of salary for an indebtedness to a bank or credit union, we 

believe section 2.07 would authorize salary deductions to pay that 

indebtedness. However. we do not believe section 2.07 authorizes 

deductions for the purpose of payments into the employee's savings 

account. Section 2.07 permits assignments as security for 

indebtedness, that is, to pay an obligation to a third party. Se.2 

Trevino v. Trevino, 555 S.W.2d 792 (Tax. Civ. App. - Corpus Christi 

1977, no writ) (defining debt). Payment to the employee's own account 

does not involve an obligation to a third party. 

SUMMARY 

Public community junior colleges are subject to 

6813e. V.T.C.S., which prohibits deductions from 

the compensation of public officers and employees 

unless authorized by law. Article 68131~~ applies 

to deductions for personal savings or 

indebtedness. Section 2.07 of the Texas Education 

Code authorizes deductions from the salaries of 

employees and officers of such institutions for 

indebtedness to be forwarded to a credit union or 

bank, but does not authorize such deductions for 

personal savings. 

MARK WHITE 

Attorney General of Texas 

I 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

p. 2086 
. f 

Mr. Kenneth H. Ashworth - Page 5 (MW-566) 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Susan L. Garrison 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Roxanne Caperton 

Rick Gilpin 

Patricia Hinojosa 

Jim Moellinger 

Bruce Youngblood 

p. 2087