AN ACT
1-1 relating to the compensation of retired state employees who return
1-2 to work for, or contract with, the state.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter B, Chapter 659, Government Code, is
1-5 amended by adding Section 659.0115 to read as follows:
1-6 Sec. 659.0115. SALARIES OF RETIRED AGENCY EMPLOYEES WHO
1-7 RESUME EMPLOYMENT. (a) A state agency that reemploys a retired
1-8 agency employee to perform services substantially similar to the
1-9 services the retiree performed for the agency during the last 12
1-10 months of service before retirement may not pay the retiree a
1-11 salary at an annualized rate that exceeds the lesser of:
1-12 (1) the rate of compensation the retiree received from
1-13 the state during the last 12 months of service before retirement;
1-14 or
1-15 (2) $60,000.
1-16 (b) The salary limitation provided by Subsection (a) does
1-17 not apply to a retiree's first six months of reemployment after
1-18 retirement, except that if a retiree is reemployed for more than
1-19 six months after retirement, the limitation applies to the entire
1-20 period of reemployment.
1-21 (c) In this section:
1-22 (1) "Retired agency employee" means a person:
1-23 (A) whose last state service before retirement
2-1 was for the state agency by which the retiree is reemployed; and
2-2 (B) who is a retiree of:
2-3 (i) the employee class of membership of
2-4 the Employees Retirement System of Texas; or
2-5 (ii) the Teacher Retirement System of
2-6 Texas, the majority of whose service was credited in that system in
2-7 a position with a state agency.
2-8 (2) "State agency" includes a "public senior college
2-9 or university," as that term is defined by Section 61.003,
2-10 Education Code.
2-11 SECTION 2. Chapter 2252, Government Code, is amended by
2-12 adding Subchapter Z to read as follows:
2-13 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
2-14 Sec. 2252.901. CONTRACTS WITH RETIRED AGENCY EMPLOYEES.
2-15 (a) A state agency that contracts with a retired agency employee
2-16 to perform services substantially similar to the services the
2-17 retiree performed for the agency during the last 12 months of
2-18 service before retirement may not make payments under the contract
2-19 at an annualized rate that exceeds the lesser of:
2-20 (1) the rate of compensation the retiree received from
2-21 the state during the last 12 months of service before retirement;
2-22 or
2-23 (2) $60,000.
2-24 (b) The contract payment limitation provided by Subsection
2-25 (a) does not apply during the first six months a retiree performs
3-1 services under a contract after retirement, except that if a
3-2 retiree performs services under the contract for more than six
3-3 months, the limitation applies to the entire term of the contract.
3-4 (c) In this section:
3-5 (1) "Retired agency employee" means a person:
3-6 (A) whose last state service before retirement
3-7 was for the state agency with which the retiree contracts to
3-8 perform services; and
3-9 (B) who is a retiree of:
3-10 (i) the employee class of membership of
3-11 the Employees Retirement System of Texas; or
3-12 (ii) the Teacher Retirement System of
3-13 Texas, the majority of whose service was credited in that system in
3-14 a position with a state agency.
3-15 (2) "State agency" includes a "public senior college
3-16 or university," as that term is defined by Section 61.003,
3-17 Education Code.
3-18 SECTION 3. (a) Section 659.0115, Government Code, as added
3-19 by this Act, applies only to state service performed by a person
3-20 who becomes a retiree on or after the effective date of this Act.
3-21 (b) Section 2252.901, Government Code, as added by this Act,
3-22 applies only to a contract entered into by a person who becomes a
3-23 retiree on or after the effective date of this Act.
3-24 SECTION 4. This Act takes effect September 1, 1998.
3-25 SECTION 5. The importance of this legislation and the
4-1 crowded condition of the calendars in both houses create an
4-2 emergency and an imperative public necessity that the
4-3 constitutional rule requiring bills to be read on three several
4-4 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 631 passed the Senate on
April 18, 1997, by the following vote: Yeas 29, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 631 passed the House on
May 26, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor