SRC-MAX S.B. 1732 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1732
By: Barrientos
State Affairs
4-28-97
As Filed


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, S.B. 1732 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. 

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.
Requires the Employees Retirement System of Texas (retirement system) to
report to the comptroller certain information.  Requires the retirement
system to submit reports under this subsection at a certain time and in
the manner the comptroller provides.  Sets forth certain duties for the
comptroller with regard to the legislative appropriations of the entity by
which the retiring member was employed.  Provides that this section
expires September 1, 1999. 

SECTION 3. Amends Chapter 2252, Government Code, by adding Subchapter D,
as follows: 

 SUBCHAPTER D.  PRIVATIZATION OF STATE SERVICES

Sec.  2252.091.  DEFINITION.  Defines "state agency."

sec.  2252.092.  CONTRACTS.  Requires a contract between a state agency
and a private entity that contracts to provide services formerly provided
by state employees to require the private entity to provide certain
compensation. 

SECTION 4. Effective date:  September 1, 1997.

SECTION 5. Emergency clause.