1-1     By:  Oliveira, et al. (Senate Sponsor - Ellis)        H.B. No. 2915

 1-2           (In the Senate - Received from the House May 13, 1997;

 1-3     May 13, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 18, 1997, reported favorably by the following vote:

 1-5     Yeas 8, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to retirement benefits for certain state employees whose

 1-9     state jobs are lost as a result of contracts to provide services

1-10     previously provided by the state and to benefits under the

1-11     contracts.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Subchapter B, Chapter 814, Government Code, is

1-14     amended by adding Section 814.1041 to read as follows:

1-15           Sec. 814.1041.  SERVICE RETIREMENT ELIGIBILITY AND BENEFITS

1-16     FOR TEXAS WORKFORCE COMMISSION EMPLOYEES.  (a)  In an area in which

1-17     a local workforce development board has been certified and a local

1-18     plan approved by the governor that provides for services that have

1-19     been previously provided by employees of the Texas Workforce

1-20     Commission to be provided through a career development center

1-21     operated by a private contractor, a member of the retirement system

1-22     who is employed by the Texas Workforce Commission and whose state

1-23     employment will end as a result of the implementation of the plan

1-24     may make an election under Subsection (b) or (c) if eligible under

1-25     the applicable section.

1-26           (b)  A member described by Subsection (a) who meets minimum

1-27     age and service requirements for service retirement under Section

1-28     814.104 may elect to apply for service retirement and receive a

1-29     standard or optional service retirement annuity otherwise payable

1-30     under this subtitle, except that the percentage value of each year

1-31     of service credit in the employee class of membership is 2.25

1-32     percent.

1-33           (c)  A member described by Subsection (a) who does not meet

1-34     minimum age and service requirements for service retirement under

1-35     Section 814.104 but who has at least 15 years of service credit in

1-36     the employee class of membership may file an election with the

1-37     retirement system to allow the member to retire when the member

1-38     meets minimum age and service requirements for service retirement

1-39     under that section  and receive a standard or optional service

1-40     retirement annuity otherwise payable under this subtitle, except

1-41     that the percentage value of each year of service credit in the

1-42     employee class is the lesser of 2.25 percent or the percentage in

1-43     effect at the time of the member's future retirement.

1-44           (d)  In this section:

1-45                 (1)  "Career development center" means the center

1-46     described by Section 2308.312.

1-47                 (2)  "Local workforce development board" means a board

1-48     established under Chapter 2308 to implement a local workforce

1-49     development plan.

1-50           SECTION 2.  Section 2308.264, Government Code, is amended by

1-51     adding Subsection (e) to read as follows:

1-52           (e)  A board that contracts with a private entity to perform

1-53     services required to be provided at a career development center

1-54     under Section 2308.312 shall require as a term of the contract that

1-55     employees of the entity employed under the contract be entitled to

1-56     receive compensation and employee benefits comparable to those of

1-57     state employees.  In this subsection, for purposes of

1-58     comparability, "employee benefits" includes, in the aggregate,

1-59     compensation, a retirement program, health insurance benefits, and

1-60     vacation and sick leave.

1-61           SECTION 3.  Section 2308.264(e), Government Code, as added by

1-62     this Act, applies only to a contract to provide services that were

1-63     previously provided by the state that is entered into on or after

1-64     the effective date of this Act.

 2-1           SECTION 4.  The importance of this legislation and the

 2-2     crowded condition of the calendars in both houses create an

 2-3     emergency and an imperative public necessity that the

 2-4     constitutional rule requiring bills to be read on three several

 2-5     days in each house be suspended, and this rule is hereby suspended,

 2-6     and that this Act take effect and be in force from and after its

 2-7     passage, and it is so enacted.

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