By Greenberg, Oliveira, Maxey, Naishtat,              H.B. No. 3512

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to assistance or benefits provided to state employees who

 1-3     lose their jobs as a result of a reduction in force or the

 1-4     privatization of state services or who retire.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subtitle B, Title 6, Government Code, is amended

 1-7     by adding Chapter 666 to read as follows:

 1-8       CHAPTER 666.  EMPLOYMENT PREFERENCES FOR FORMER STATE EMPLOYEES

 1-9           Sec. 666.001.  DEFINITION.  In this chapter, "state agency"

1-10     means a department, commission, board, office, council, or other

1-11     agency in the executive or judicial branch of state government that

1-12     is created by the constitution or a statute of this state,

1-13     including a university system or an institution of higher education

1-14     as defined by Section 61.003, Education Code.

1-15           Sec. 666.002.  STATE EMPLOYMENT PREFERENCE.  A former state

1-16     employee whose position was eliminated due to a reduction in

1-17     workforce or the privatization of the service the employee formerly

1-18     provided for the employing state agency is entitled to a preference

1-19     in employment with or appointment to a state agency over other

1-20     applicants for the same position who do not have a greater

1-21     qualification for the position.

1-22           Sec. 666.003.  OUTPLACEMENT SERVICES.  (a)  The Texas

1-23     Workforce Commission shall establish a program to offer

1-24     outplacement services to former employees of a state agency that:

1-25                 (1)  has reduced its workforce by not fewer than 25

 2-1     employees; or

 2-2                 (2)  has eliminated not fewer than 25 employees due to

 2-3     the privatization of certain services.

 2-4           (b)  The outplacement services offered under Subsection (a)

 2-5     must include:

 2-6                 (1)  reasonable access to career centers;

 2-7                 (2)  assistance in locating other available state

 2-8     employment;

 2-9                 (3)  counseling regarding unemployment benefits; and

2-10                 (4)  instruction on resume drafting and other

2-11     career-related services.

2-12           (c)  The Texas Workforce Commission may contract with a

2-13     private enterprise to provide the outplacement services under this

2-14     section.

2-15           SECTION 2.  Subchapter B, Chapter 814, Government Code, is

2-16     amended by adding Section 814.1041 to read as follows:

2-17           Sec. 814.1041.  RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.  (a)

2-18     A member of the employee class may retire under this section if:

2-19                 (1)  the member has at least a minimum amount of

2-20     service credit required by Section 814.104; and

2-21                 (2)  the member:

2-22                       (A)  is at least 50 years of age; and

2-23                       (B)  is not more than three years younger than

2-24     the minimum age required under Section 814.104 for eligibility for

2-25     service retirement with that amount of service credit.

2-26           (b)  This section does not apply to retirement under Section

2-27     814.107.

 3-1           (c)  A member eligible to retire under this section is one

 3-2     who:

 3-3                 (1)  meets minimum age and service requirements under

 3-4     Section 814.104 except as provided by Subsection (a) of this

 3-5     section, as applicable;

 3-6                 (2)  applies for service retirement;

 3-7                 (3)  holds a position included in the employee class on

 3-8     the date the application is filed; and

 3-9                 (4)  designates an effective date of retirement that is

3-10     after August 31, 1997, but before September 1, 1999, and is the

3-11     later of September 30, 1997, or the earliest date that the member's

3-12     retirement may become effective.

3-13           (d)  The retirement system shall report to the comptroller

3-14     the name of each person who retires under this section, the

3-15     effective date of the person's retirement, the entity by which the

3-16     person was employed immediately before retirement, and the amount

3-17     of compensation used in computing the person's annuity.  The

3-18     retirement system shall submit reports under this subsection at the

3-19     times and in the manner the comptroller provides.

3-20           (e)  The comptroller shall reduce the total amount of

3-21     legislative appropriations to the entity by which the retiring

3-22     member was employed immediately before retirement by the amount of

3-23     the reported compensation multiplied by the number of months

3-24     remaining in the fiscal biennium.  This subsection applies only to

3-25     retiring members whose positions were eliminated because of a

3-26     reduction in workforce of not fewer than 25 employees.

3-27           (f)  The comptroller may not reduce appropriations under

 4-1     Subsection (e) if the retiring member's position was eliminated

 4-2     because of the privatization of certain services.

 4-3           (g)  This section applies only to a member of the employee

 4-4     class whose position was eliminated because of:

 4-5                 (1)  a reduction in workforce of not fewer than 25

 4-6     employees; or

 4-7                 (2)  the elimination of not fewer than 25 employees,

 4-8     including the member of the employee class, due to the

 4-9     privatization of certain services.

4-10           (h)  This section expires September 1, 1999.

4-11           SECTION 3.  Section 9.12, Chapter 655, Acts of the 74th

4-12     Legislature, Regular Session, 1995, is amended by adding Subsection

4-13     (f) to read as follows:

4-14           (f)  A contract under this section between the commission and

4-15     a private firm that contracts to provide services formerly provided

4-16     by state employees shall require the private firm to provide to

4-17     employees of the private firm employed under the contract

4-18     comparable compensation and benefits in the aggregate, including a

4-19     retirement program, health insurance, vacation time, and sick

4-20     leave.

4-21           SECTION 4.  Subchapter A, Chapter 2254, Government Code, is

4-22     amended by adding Section 2254.006 to read as follows:

4-23           Sec. 2254.006.  CONTRACT FOR PROFESSIONAL SERVICES OF FORMER

4-24     STATE EMPLOYEE.  (a)  A state agency may not enter into a contract

4-25     for the provision of professional services with a former state

4-26     employee who has retired under Section 814.1041 not more than 12

4-27     months before the date of the contract.

 5-1           (b)  This section expires September 1, 2000.

 5-2           SECTION 5.  Subchapter B, Chapter 2254, Government Code, is

 5-3     amended by adding Section 2254.0261 to read as follows:

 5-4           Sec. 2254.0261.  CONTRACT FOR CONSULTING SERVICES OF FORMER

 5-5     STATE EMPLOYEE.  (a)  A state agency may not contract with a former

 5-6     state employee for consulting services if the former state employee

 5-7     has retired under Section 814.1041 not more than 12 months before

 5-8     the date of the contract.

 5-9           (b)  This section expires September 1, 2000.

5-10           SECTION 6.  This Act takes effect September 1, 1997.

5-11           SECTION 7.  The importance of this legislation and the

5-12     crowded condition of the calendars in both houses create an

5-13     emergency and an imperative public necessity that the

5-14     constitutional rule requiring bills to be read on three several

5-15     days in each house be suspended, and this rule is hereby suspended.