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.