1-1 AN ACT
1-2 relating to retirement benefits for certain state employees whose
1-3 state jobs are lost as a result of contracts to provide services
1-4 previously provided by the state and to benefits under the
1-5 contracts.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Subchapter B, Chapter 814, Government Code, is
1-8 amended by adding Section 814.1041 to read as follows:
1-9 Sec. 814.1041. SERVICE RETIREMENT ELIGIBILITY AND BENEFITS
1-10 FOR TEXAS WORKFORCE COMMISSION EMPLOYEES. (a) In an area in which
1-11 a local workforce development board has been certified and a local
1-12 plan approved by the governor that provides for services that have
1-13 been previously provided by employees of the Texas Workforce
1-14 Commission to be provided through a career development center
1-15 operated by a private contractor, a member of the retirement system
1-16 who is employed by the Texas Workforce Commission and whose state
1-17 employment will end as a result of the implementation of the plan
1-18 may make an election under Subsection (b) or (c) if eligible under
1-19 the applicable section.
1-20 (b) A member described by Subsection (a) who meets minimum
1-21 age and service requirements for service retirement under Section
1-22 814.104 may elect to apply for service retirement and receive a
1-23 standard or optional service retirement annuity otherwise payable
1-24 under this subtitle, except that the percentage value of each year
2-1 of service credit in the employee class of membership is 2.25
2-2 percent.
2-3 (c) A member described by Subsection (a) who does not meet
2-4 minimum age and service requirements for service retirement under
2-5 Section 814.104 but who has at least 15 years of service credit in
2-6 the employee class of membership may file an election with the
2-7 retirement system to allow the member to retire when the member
2-8 meets minimum age and service requirements for service retirement
2-9 under that section and receive a standard or optional service
2-10 retirement annuity otherwise payable under this subtitle, except
2-11 that the percentage value of each year of service credit in the
2-12 employee class is the lesser of 2.25 percent or the percentage in
2-13 effect at the time of the member's future retirement.
2-14 (d) In this section:
2-15 (1) "Career development center" means the center
2-16 described by Section 2308.312.
2-17 (2) "Local workforce development board" means a board
2-18 established under Chapter 2308 to implement a local workforce
2-19 development plan.
2-20 SECTION 2. Section 2308.264, Government Code, is amended by
2-21 adding Subsection (e) to read as follows:
2-22 (e) A board that contracts with a private entity to perform
2-23 services required to be provided at a career development center
2-24 under Section 2308.312 shall require as a term of the contract that
2-25 employees of the entity employed under the contract be entitled to
2-26 receive compensation and employee benefits comparable to those of
2-27 state employees. In this subsection, for purposes of
3-1 comparability, "employee benefits" includes, in the aggregate,
3-2 compensation, a retirement program, health insurance benefits, and
3-3 vacation and sick leave.
3-4 SECTION 3. Section 2308.264(e), Government Code, as added by
3-5 this Act, applies only to a contract to provide services that were
3-6 previously provided by the state that is entered into on or after
3-7 the effective date of this Act.
3-8 SECTION 4. The importance of this legislation and the
3-9 crowded condition of the calendars in both houses create an
3-10 emergency and an imperative public necessity that the
3-11 constitutional rule requiring bills to be read on three several
3-12 days in each house be suspended, and this rule is hereby suspended,
3-13 and that this Act take effect and be in force from and after its
3-14 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2915 was passed by the House on May
12, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2915 was passed by the Senate on May
27, 1997, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor