Amend SB 631 by striking all below the enacting clause and
substituting the following:
      SECTION 1.  Subchapter B, Chapter 659, Government Code, is
amended by adding Section 659.0115 to read as follows:
      Sec. 659.0115.  SALARIES OF RETIRED AGENCY EMPLOYEES WHO
RESUME EMPLOYMENT. (a)  A state agency that reemploys a retired
agency employee to perform services substantially similar to the
services the retiree performed for the agency during the last 12
months of service before retirement may not pay the retiree a
salary at an annualized rate that exceeds the lesser of:
            (1)  the rate of compensation the retiree received from
the state during the last 12 months of service before retirement;
or
            (2)  $60,000.
      (b)  The salary limitation provided by Subsection (a)  does
not apply to a retiree's first six months of reemployment after
retirement, except that if a retiree is reemployed for more than
six months after retirement, the limitation applies to the entire
period of reemployment.
      (c)  In this section:
            (1)  "Retired agency employee" means a person:
                  (A)  whose last state service before retirement
was for the state agency by which the retiree is reemployed; and
                  (B)  who is a retiree of:
                        (i)  the employee class of membership of
the Employees Retirement System of Texas; or
                        (ii)  the Teacher Retirement System of
Texas, the majority of whose service was credited in that system in
a position with a state agency.
            (2)  "State agency" includes a "public senior college
or university," as that term is defined by Section 61.003,
Education Code.
      SECTION 2.  Chapter 2252, Government Code, is amended by
adding Subchapter Z to read as follows:
              SUBCHAPTER Z.  MISCELLANEOUS PROVISIONS
      Sec. 2252.901.  CONTRACTS WITH RETIRED AGENCY EMPLOYEES. (a)
A state agency that contracts with a retired agency employee to
perform services substantially similar to the services the retiree
performed for the agency during the last 12 months of service
before retirement may not make payments under the contract at an
annualized rate that exceeds the lesser of:
            (1)  the rate of compensation the retiree received from
the state during the last 12 months of service before retirement;
or
            (2)  $60,000.
      (b)  The contract payment limitation provided by Subsection
(a)  does not apply during the first six months a retiree performs
services under a contract after retirement, except that if a
retiree performs services under the contract for more than six
months, the limitation applies to the entire term of the contract.
      (c)  In this section:
            (1)  "Retired agency employee" means a person:
                  (A)  whose last state service before retirement
was for the state agency with which the retiree contracts to
perform services; and
                  (B)  who is a retiree of:
                        (i)  the employee class of membership of
the Employees Retirement System of Texas; or
                        (ii)  the Teacher Retirement System of
Texas, the majority of whose service was credited in that system in
a position with a state agency.
            (2)  "State agency" includes a "public senior college
or university," as that term is defined by Section 61.003,
Education Code.
      SECTION 3.  (a)  Section 659.0115, Government Code, as added
by this Act, applies only to state service performed by a person
who becomes a retiree on or after the effective date of this Act.
      (b)  Section 2252.901, Government Code, as added by this Act,
applies only to a contract entered into by a person who becomes a
retiree on or after the effective date of this Act.
      SECTION 4.  This Act takes effect September 1, 1998.
      SECTION 5.  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.