75R10936 MLS-F                           

         By Greenberg, Oliveira, Maxey, et al.                 H.B. No. 3512

         Substitute the following for H.B. No. 3512:

         By Greenberg                                      C.S.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

 1-9                           FORMER STATE EMPLOYEES

1-10           Sec. 666.001.  DEFINITION.  In this chapter, "state agency"

1-11     means a department, commission, board, office, council, or other

1-12     agency in the executive or judicial branch of state government that

1-13     is created by the constitution or a statute of this state,

1-14     including a university system or an institution of higher education

1-15     as defined by Section 61.003, Education Code.

1-16           Sec. 666.002.  STATE EMPLOYMENT PREFERENCE.  A former state

1-17     employee whose position was eliminated due to a reduction in

1-18     workforce or the privatization of the service the employee formerly

1-19     provided for the employing state agency is entitled to a preference

1-20     in employment with or appointment to a state agency over other

1-21     applicants for the same position who do not have a greater

1-22     qualification for the position.

1-23           Sec. 666.003.  OUTPLACEMENT SERVICES.  (a)  The Texas

1-24     Workforce Commission shall establish a program to offer

 2-1     outplacement services to former employees of a state agency that:

 2-2                 (1)  has reduced its workforce by not fewer than 25

 2-3     employees; or

 2-4                 (2)  has eliminated not fewer than 25 employees due to

 2-5     the privatization of certain services.

 2-6           (b)  The outplacement services offered under Subsection (a)

 2-7     must include:

 2-8                 (1)  reasonable access to career centers;

 2-9                 (2)  assistance in locating other available state

2-10     employment;

2-11                 (3)  counseling regarding unemployment benefits; and

2-12                 (4)  instruction on resume drafting and other

2-13     career-related services.

2-14           (c)  The Texas Workforce Commission may contract with a

2-15     private enterprise to provide the outplacement services under this

2-16     section.

2-17           SECTION 2.  Subchapter B, Chapter 814, Government Code, is

2-18     amended by adding Section 814.1041 to read as follows:

2-19           Sec. 814.1041.  RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.

2-20     (a)  A member of the employee class may retire under this section

2-21     if:

2-22                 (1)  the member has at least a minimum amount of

2-23     service credit required by Section 814.104; and

2-24                 (2)  the member:

2-25                       (A)  is at least 50 years of age; and

2-26                       (B)  is not more than three years younger than

2-27     the minimum age required under Section 814.104 for eligibility for

 3-1     service retirement with that amount of service credit.

 3-2           (b)  This section does not apply to retirement under Section

 3-3     814.107.

 3-4           (c)  A member eligible to retire under this section is one

 3-5     who:

 3-6                 (1)  meets minimum age and service requirements under

 3-7     Section 814.104 except as provided by Subsection (a) of this

 3-8     section, as applicable;

 3-9                 (2)  applies for service retirement;

3-10                 (3)  holds a position included in the employee class on

3-11     the date the application is filed; and

3-12                 (4)  designates an effective date of retirement that is

3-13     after August 31, 1997, but before September 1, 1999, and is the

3-14     later of September 30, 1997, or the earliest date that the member's

3-15     retirement may become effective.

3-16           (d)  The retirement system shall report to the comptroller

3-17     the name of each person who retires under this section, the

3-18     effective date of the person's retirement, the entity by which the

3-19     person was employed immediately before retirement, and the amount

3-20     of compensation used in computing the person's annuity.  The

3-21     retirement system shall submit reports under this subsection at the

3-22     times and in the manner the comptroller provides.

3-23           (e)  Except as provided by Subsection (f), the comptroller

3-24     shall reduce the total amount of legislative appropriations to the

3-25     entity by which the retiring member was employed immediately before

3-26     retirement by the amount of the reported compensation multiplied by

3-27     the number of months remaining in the fiscal biennium.  This

 4-1     subsection applies only to retiring members whose positions were

 4-2     eliminated because of a reduction in workforce of not fewer than 25

 4-3     employees.

 4-4           (f)  The comptroller may not reduce appropriations under

 4-5     Subsection (e) if the total legislative appropriations to the

 4-6     entity for the fiscal year in which the employee retires, or for

 4-7     any subsequent fiscal year in the biennium, are less than $1

 4-8     million.

 4-9           (g)  This section applies only to a member of the employee

4-10     class whose position was eliminated because of:

4-11                 (1)  a reduction in workforce of not fewer than 25

4-12     employees; or

4-13                 (2)  the elimination of not fewer than 25 employees,

4-14     including the member of the employee class, due to the

4-15     privatization of certain services.

4-16           (h)  This section expires September 1, 1999.

4-17           SECTION 3.  Chapter 2252, Government Code, is amended by

4-18     adding Subchapter D to read as follows:

4-19               SUBCHAPTER D.  PRIVATIZATION OF STATE SERVICES

4-20           Sec. 2252.091.  DEFINITION.  In this subchapter, "state

4-21     agency" means a department, commission, board, office, council, or

4-22     other agency in the executive or judicial branch of state

4-23     government that is created by the constitution or a statute of this

4-24     state, including a university system or an institution of higher

4-25     education as defined by Section 61.003, Education Code, that has

4-26     eliminated not fewer than 25 employees due to the privatization of

4-27     certain services.

 5-1           Sec. 2252.092.  CONTRACTS.  A contract between a state agency

 5-2     and a private entity that contracts to provide services formerly

 5-3     provided by state employees shall require the private entity to

 5-4     provide at least the same compensation and benefits to its

 5-5     employees as the state provided to employees performing similar

 5-6     services.

 5-7           SECTION 4.  Subchapter A, Chapter 2254, Government Code, is

 5-8     amended by adding Section 2254.006 to read as follows:

 5-9           Sec. 2254.006.  CONTRACT FOR PROFESSIONAL SERVICES OF FORMER

5-10     STATE EMPLOYEE.  (a)  A governmental entity may not enter into a

5-11     contract for the provision of professional services with a former

5-12     state employee who has retired under Section 814.1041 not more than

5-13     12 months before the date of the contract.

5-14           (b)  This section expires September 1, 2000.

5-15           SECTION 5.  Subchapter B, Chapter 2254, Government Code, is

5-16     amended by adding Section 2254.0261 to read as follows:

5-17           Sec. 2254.0261.  CONTRACT FOR CONSULTING SERVICES OF FORMER

5-18     STATE EMPLOYEE.  (a)  A state agency may not contract with a former

5-19     state employee for consulting services if the former state employee

5-20     has retired under Section 814.1041 not more than 12 months before

5-21     the date of the contract.

5-22           (b)  This section expires September 1, 2000.

5-23           SECTION 6.  This Act takes effect September 1, 1997.

5-24           SECTION 7.  The importance of this legislation and the

5-25     crowded condition of the calendars in both houses create an

5-26     emergency and an imperative public necessity that the

5-27     constitutional rule requiring bills to be read on three several

 6-1     days in each house be suspended, and this rule is hereby suspended.