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.