By Greenberg H.B. No. 3512 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. 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. 2-1 Sec. 666.003. OUTPLACEMENT SERVICES. (a) The Texas 2-2 Workforce Commission shall establish a program to offer 2-3 outplacement services to former employees of a state agency that: 2-4 (1) has reduced its workforce by not fewer than 25 2-5 employees; or 2-6 (2) has eliminated not fewer than 25 positions due to 2-7 the privatization of certain services. 2-8 (b) The outplacement services offered under Subsection (a) 2-9 must include: 2-10 (1) reasonable access to career centers; 2-11 (2) assistance in locating other available state 2-12 employment; 2-13 (3) counseling regarding unemployment benefits; and 2-14 (4) instruction on resume drafting and other 2-15 career-related services. 2-16 SECTION 2. Subchapter B, Chapter 814, Government Code, is 2-17 amended by adding Section 814.1041 to read as follows: 2-18 Sec. 814.1041. RETIREMENT INCENTIVE FOR EMPLOYEE CLASS. (a) 2-19 A member of the employee class may retire under this section if the 2-20 member has at least a minimum amount of service credit required by 2-21 Section 814.104 and is not more than three years younger than the 2-22 minimum age required under that section for eligibility for service 2-23 retirement with that amount of service credit. A state agency, as 2-24 defined in Sec. 666.001, may not enter into a contract for 2-25 consulting or professional services or into an employment contract, 2-26 with any individual who has been previously employed by a state 2-27 agency, as defined in Sec. 666.001, within the past twelve months. 3-1 For the purpose of this section, the term "employment contract" 3-2 shall include a personal services contract regardless of whether 3-3 the performance of such a contract involves the traditional 3-4 relationship of employer and employee. 3-5 (b) A member of the employee class who has at least the 3-6 minimum amount and type of service credit required for service 3-7 retirement with an annuity computed under Section 814.107 may 3-8 retire under this section and receive an annuity under that section 3-9 that is not actuarially reduced, if the member is not more than 3-10 three years younger than the minimum age required under that 3-11 section to avoid actuarial reduction of the annuity. 3-12 (c) A member eligible to retire under this section is one 3-13 who: 3-14 (1) meets minimum age and service requirements under 3-15 Section 814.104 or 814.107 except as provided by Subsection (a) or 3-16 (b) of this section, as applicable; 3-17 (2) applies for service retirement; 3-18 (3) holds a position included in the employee class on 3-19 the date the application is filed; and 3-20 (4) designates an effective date of retirement that is 3-21 after August 31, 1997, but before September 1, 1999, and is the 3-22 later of September 30, 1997, or the earliest date that the member's 3-23 retirement may become effective. 3-24 (d) The retirement system shall report to the comptroller 3-25 the name of each person who retires under this section, the 3-26 effective date of the person's retirement, the entity by which the 3-27 person was employed immediately before retirement, and the amount 4-1 of compensation used in computing the person's annuity. The 4-2 retirement system shall submit reports under this subsection at the 4-3 times and in the manner the comptroller provides. 4-4 (e) Except as provided by Subsection (f), the comptroller 4-5 shall reduce the total amount of legislative appropriations to the 4-6 entity by which the retiring member was employed immediately before 4-7 retirement by the amount of the reported compensation multiplied by 4-8 the number of months remaining in the fiscal biennium. 4-9 (f) The comptroller may not reduce appropriations under 4-10 Subsection (e) if the total legislative appropriations to the 4-11 entity for the fiscal year in which the employee retires, or for 4-12 any subsequent fiscal year in the biennium, are less than $1 4-13 million. 4-14 (g) This section expires September 1, 1999. 4-15 SECTION 3. Chapter 2252, Government Code, is amended by 4-16 adding Subchapter D to read as follows: 4-17 SUBCHAPTER D. PRIVATIZATION OF STATE SERVICES 4-18 Sec. 2252.091. DEFINITION. In this subchapter, "state 4-19 agency" means a department, commission, board, office, council, or 4-20 other agency in the executive or judicial branch of state 4-21 government that is created by the constitution or a statute of this 4-22 state, including a university system or an institution of higher 4-23 education as defined by Section 61.003, Education Code. 4-24 Sec. 2252.092. CONTRACTS. A contract between a state agency 4-25 and a private entity that contracts to provide services formerly 4-26 provided by state employees shall require the private entity to 4-27 provide at least the same compensation and benefits to its 5-1 employees as the state provided to employees performing similar 5-2 services. 5-3 SECTION 4. This Act takes effect September 1, 1997. 5-4 SECTION 5. The importance of this legislation and the 5-5 crowded condition of the calendars in both houses create an 5-6 emergency and an imperative public necessity that the 5-7 constitutional rule requiring bills to be read on three several 5-8 days in each house be suspended, and this rule is hereby suspended.