JKM H.B. 2915 75(R)    BILL ANALYSIS


ECONOMIC DEVELOPMENT
H.B. 2915
By: Oliveira
4-1-97
Committee Report (Unamended)



BACKGROUND 

 With the passage of House Bill 1863, welfare and workforce development
reform, the Texas Legislature introduced competition in to some job
training training programs administered by the state.  The authors of the
workforce reform portions of the legislation have said they intended to
save state and federal dollars by eliminating duplication of services and
positions.  Ultimately, private companies may, in some parts of the state,
take over services currently provided by state agencies and employees. 
 While current law requires that private providers give preference to
state employees, there is no mandate that private providers hire state
employees.  The authors of the workforce portion of H.B. 1863 have said
that they did not intend for private companies to increase their profits
by cutting wages and benefits of those working in job training, thereby
creating an underclass of workers trying to help others find jobs.
Additionally, state employees who lose their jobs through no fault of
their own could lose substantial state benefits they had worked years for. 

PURPOSE
 
To provide certain state employees who are displaced by privatization of
job training services currently provided by the state with additional
retirement benefits, and ensure that employees of private job training
providers provide employee benefits comparable to those of state
employees. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 814, Government Code, by adding
Section 814.1041, as follows: 

Sec. 814.1041.  SERVICE RETIREMENT ELIGIBILITY AND BENEFITS FOR TEXAS
WORKFORCE COMMISSION EMPLOYEES. (a) Where a local workforce board has been
certified and a local plan has been approved which will have private
contractor provide services previously provided by employees of the Texas
Workforce Commission, a member of the retirement system who is employed by
the Texas Workforce Commission and will be terminated as a result of the
implementation of the plan may make an election under Subsection (b) or
(c) if eligible under the applicable section. 

(b) An individual described by Subsection (a) meeting minimum age and
service  requirements may elect to either apply for service retirement and
receive a standard or an optional service retirement annuity otherwise
payable under this subtitle,  except that the percentage value of each
year of service credit in the employee class of membership is 2.25
percent. 

 (c)  An individual by Subsection (a) who does not satisfy minimum age and
service requirements for service retirement under Section 814.104, but who
has at least 15 years of service credit in the employee class of
membership may file an election with the retirement system.  This would
allow the individual to retire upon meeting the minimum age and service
requirements for service retirement and receive a standard or optional
service retirement annuity otherwise payable under this subtitle, except
that the percentage value of each year of service credit in the employee
class is the lesser of 2.25 percent or the percentage in effect at the
time of the individual's future retirement. 

(d)  In this section:
 (1) Defines "career development center."
 (2) Defines " local workforce development board."

SECTION 2.  Amends Chapter 2308, Government Code, adding Subsection (e),
as follows: 

(e)  As a term of the contract, a board that engages in contracts with a
private entity to perform services required to be provided at a career
development center under Section 2308.312 shall stipulate that employees
of the private entity be entitled to receive employee benefits comparable
to state employees.   

It adds that "employee benefits" includes compensation, a retirement
program, health insurance benefits, and vacation and sick leave. 

SECTION 3.  Section 2308.264 (e), Government Code, as added by this Act,
applies only to a contract to provide services that were previously
provided by the state that is entered into on or after the effective date
of this Act. 

SECTION 4.  Emergency clause.