SRC-MAX H.B. 3512 75(R)    BILL ANALYSIS


Senate Research CenterH.B. 3512
By: Greenberg (Barrientos)
State Affairs
5-17-97
Engrossed


DIGEST 

Currently, many state agencies are reducing the number of employees to
comply with budget reductions and efficiency measures.  State agencies are
also privatizing functions formerly provided by state employees.  There
are concerns that because state agencies are a significant part of many
local economies, a large reduction in force (RIF) or privatization effort
could have a major impact on communities in Texas.   This bill requires
state agencies to provide a hiring preference for state employees who lose
their jobs because of RIF or privatization of state services and provides
certain benefits for those state employees who retire.   

PURPOSE

As proposed, H.B. 3512  provides assistance or benefits to state employees
who lose their jobs as a result of a reduction in force (RIF) or the
privatization of state services, or who retire. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 6B, Government Code, by adding Chapter 666, as
follows: 

CHAPTER 666.  EMPLOYMENT PREFERENCES FOR FORMER STATE EMPLOYEES

Sec.  666.001.  DEFINITION.  Defines "state agency."

Sec.  666.002.  STATE EMPLOYMENT PREFERENCE.  Sets forth a provision
stating that certain former state employees are entitled to a preference
in employment with or appointment to a state agency. 

Sec.  666.003. OUTPLACEMENT SERVICES.  Requires the Texas Workforce
Commission to establish a program  to offer outplacement services to
former employees of certain state agencies.  Requires the outplacement
services offered  under Subsection (a) to include certain services.
Authorizes the Texas Workforce Commission to contract with a private
enterprise to provide the outplacement services under this section. 

SECTION 2. Amends Chapter 814B, Government Code, by adding Section
814.1041, as follows: 

Sec.  814.1041.  RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.  Sets forth the
criteria for retirement of a member of the employee class.  Sets forth the
eligibility requirements for an employee to retire under this section.
Provides that this section does not apply to retirement under Section
814.107. Sets forth certain duties for the comptroller with regard to the
legislative appropriations of the entity by which the retiring member was
employed.  Prohibits the comptroller from reducing appropriations under
Subsection (e) if the retiring member's position was eliminated because of
the privatization of certain services. Provides that this section applies
only to a member of the employee class whose position was eliminated under
certain conditions. Provides that this section expires September 1, 1999. 

 SECTION 3. Amends Section 9.12, Chapter 655, Acts of the 74th
Legislature, Regular Session, 1995, by adding Subsection (f), regarding a
contract under this section between the commission and a private firm. 

SECTION 4. Amends Chapter 2254A, Government Code, by adding Section
2254.006, as follows: 

Sec.  2254.006.  CONTRACT FOR PROFESSIONAL SERVICES OF FORMER STATE
EMPLOYEE.  Prohibits a state agency from entering 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.  Provides that this section expires September 1, 2000. 

SECTION 5. Amends Chapter 2254B, Government Code, by adding Section
2254.0261, as follows: 

Sec.  2254.0261.  CONTRACT FOR CONSULTING SERVICES OF FORMER STATE
EMPLOYEE.  Makes a conforming change. 

SECTION 6. Effective date:  September 1, 1997.

SECTION 7. Emergency clause.