Amend CSHB 3512 by striking all below the enacting clause and
substituting the following:
      SECTION 1.  Subtitle B, Title 6, Government Code, is amended
by adding Chapter 666 to read as follows:
             CHAPTER 666.  EMPLOYMENT PREFERENCES FOR
                      FORMER STATE EMPLOYEES
      Sec. 666.001.  DEFINITION.  In this chapter, "state agency"
means a department, commission, board, office, council, or other
agency in the executive or judicial branch of state government that
is created by the constitution or a statute of this state,
including a university system or an institution of higher education
as defined by Section 61.003, Education Code.
      Sec. 666.002.  STATE EMPLOYMENT PREFERENCE.  A former state
employee whose position was eliminated due to a reduction in
workforce or the privatization of the service the employee formerly
provided for the employing state agency is entitled to a preference
in employment with or appointment to a state agency over other
applicants for the same position who do not have a greater
qualification for the position.
      Sec. 666.003.  OUTPLACEMENT SERVICES.  (a)  The Texas
Workforce Commission shall establish a program to offer
outplacement services to former employees of a state agency that:
            (1)  has reduced its workforce by not fewer than 25
employees; or
            (2)  has eliminated nor fewer than 25 employees due to
the privatization of certain services.
      (b)  The outplacement services offered under Subsection (a)
must include:
            (1)  reasonable access to career centers;
            (2)  assistance in locating other available state
employment;
            (3)  counseling regarding unemployment benefits; and
            (4)  instruction on resume drafting and other
career-related services.
      (c)  The Texas Workforce Commission may contract with a
private enterprise to provide the outplacement services under this
section.
      SECTION 2.  Subchapter B, Chapter 814, Government Code, is
amended by adding Section 814.1041 to read as follows:
      Sec. 814.1041.  RETIREMENT INCENTIVE FOR EMPLOYEE
CLASS.  (a)  A member  of the employee class may retire under this
section if:
            (1)  the member has at least a minimum amount service
credit required by Section 814.104; and
            (2)  the member:
                  (A)  is at least 50 years of age; and
                  (B)  is not more than three years younger than
the minimum age required under Section 814.104 for eligibility for
service retirement with that amount of service credit.
      (b)  This section does not apply to retirement under Section
814.107.
      (c)  A member eligible to retire under this section is one
who:
            (1)  meets minimum age and service requirements under
Section 814.104 except as provided by Subsection (a) of this
section, as applicable;
            (2)  applies for service retirement;
            (3)  holds a position included in the employee class on
the date the application is filed; and
            (4)  designates an effective date of retirement that is
after August 31, 1997, but before September 1, 1999, and is the
later of September 30, 1997, or the earliest date that the member's
retirement may become effective.
      (d)   The retirement system shall report to the comptroller
the name of each person who retires under this section, the
effective date of the person's retirement, the entity by which the
person was employed immediately before retirement, and the amount
of compensation used in computing the person's annuity. The
retirement system shall submit reports under this subsection at the
times and in the manner the comptroller provides.
      (e)  The comptroller shall reduce the total amount of
legislative appropriations to the entity by which the retiring
member was employed immediately before retirement by the amount of
the reported compensation multiplied by the number of months
remaining in the fiscal biennium. This subsection applies only to
retiring members whose positions were eliminated because of
reduction in workforce of not fewer than 25 employees.
      (f)  The comptroller may not reduce appropriations under
Subsection (e) if the retiring member's position was eliminated
because of the privatization of certain services.
      (g)  This section applies only to a member of the employee
class whose position was eliminated because of:
            (1)  a reduction in workforce of not fewer than 25
employees; or
            (2)  the elimination of not fewer than 25 employees,
including the member of the employee class, due to the
privatization of certain services.
      (h)  This section expires September 1, 1999.
      SECTION 3.  Section 9.12, Chapter 655, Acts of the 74th
Legislature, Regular Session, 1995, is amended by adding Subsection
(f) to read as follows:
      (f)  A contract under this section between the commission and
a private firm that contracts to provide services formerly provided
by state employees shall require the private firm to provide to
employees of the private firm employed under the contract
comparable compensation and benefits in the aggregate, including a
retirement program, health insurance, vacation time, and sick
leave.
      SECTION 4.  Subchapter A, Chapter 2254, Government Code, is
amended by adding Section 2254.006 to read as follows:
      Sec. 2254.006.  CONTRACT FOR PROFESSIONAL SERVICES OF FORMER
STATE EMPLOYEE.  (a)  A state agency may not enter into a contract
for the provision of professional services with a former state
employee who has retired under Section 814.1041 not more than 12
months before the date of the contract.
      (b)  This section expires September 1, 2000.
      SECTION 5. Subchapter B, Chapter 2254, Government Code, is
amended by adding Section 2254.0261 to read as follows:
      Sec. 2254.0261.  CONTRACT FOR CONSULTING SERVICES OF FORMER
STATE EMPLOYEE.  (a)  A state agency may not contract with a former
state employee for consulting services if the former state employee
has retired under Section 814.1041 not more than 12 months before
the date of the contract.
      (b)  This section expires September 1, 2000.
      SECTION 6.  This Act takes effect September 1, 1997.
      SECTION 7.  The importance of this legislation and the
crowded condition of the calendars in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby suspended.