SRC-TNM S.B. 1693 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1693
By: Ellis
State Affairs
4-27-97
As Filed


DIGEST 

Currently, while Texas law requires private providers to give preference
to state employees, there is no mandate that private providers hire state
employees.  Private companies may, in some parts of the state, take over
services currently provided by state agencies in order to eliminate
duplication of services and positions and, as a result, save state and
federal money.  However, the authors of H.B. 1863 have expressed that they
did not intend for private companies to increase their profit by cutting
wages and benefits of those working in job training.  S.B. 1693 would
provide certain state employees who are displaced by privatization of job
training services currently provided by the state with additional
retirement benefits, and to ensure that employees of private job training
providers provide employee benefits comparable to those of state
employees. 

PURPOSE

As proposed, S.B. 1693 outlines provisions regarding retirement benefits
for certain state employees whose state jobs are lost as a result of
contracts to provide services previously provided by the state and to
benefits under the contracts. 

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 Chapter 814B, Government Code, by adding Section
814.1041, as follows: 

Sec. 814.1041. SERVICE RETIREMENT ELIGIBILITY AND BENEFITS FOR TEXAS
WORKFORCE COMMISSION EMPLOYEES. Outlines provisions regarding service
retirement eligibility and benefits for Texas Workforce Commission
employers.  Defines "career development center" and "local workforce
development board." 

SECTION 2. Amends Section 2308.264, Government Code, by adding Subsection
(e), to provide that a local workforce development board that contracts
with a private entity to perform services required to be provided at a
career development center under Section 2308.312 shall require as a term
of the contract that employees of the entity be entitled to receive
employee benefits comparable to those of state employees.  Defines
"employee benefits."  

SECTION 3. Makes application of this Act prospective.

SECTION 4. Emergency clause.
  Effective date: upon passage.