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.