By Haywood S.B. No. 631
75R6300 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the compensation of retired state employees who return
1-3 to work for, or contract with, the state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 659, Government Code, is
1-6 amended by adding Section 659.0115 to read as follows:
1-7 Sec. 659.0115. SALARIES OF RETIRED STATE EMPLOYEES WHO
1-8 RESUME STATE EMPLOYMENT. (a) A retiree of the employee class of
1-9 membership of the Employees Retirement System of Texas who is
1-10 reemployed by the state may not be paid a salary at an annualized
1-11 rate:
1-12 (1) that exceeds the lesser of:
1-13 (A) 50 percent of the rate of compensation the
1-14 retiree received from the state during the last 12 months of
1-15 service before retirement; or
1-16 (B) 50 percent of the highest rate of
1-17 compensation for a 12-month period at which the retiree was paid by
1-18 the state before retirement; or
1-19 (2) that, when added to the amount of the retiree's
1-20 annual retirement benefit, exceeds the salary the retiree received
1-21 from the state during the last 12 months of service before
1-22 retirement.
1-23 (b) A retiree of the Teacher Retirement System of Texas, the
1-24 majority of whose service was credited in that system in a position
2-1 as an officer or employee of a state agency, who is reemployed by
2-2 the state is subject to the salary restriction described by
2-3 Subsection (a).
2-4 (c) In this section, "state" and "state agency" include a
2-5 "public senior college or university," as that term is defined by
2-6 Section 61.003, Education Code.
2-7 SECTION 2. Chapter 2252, Government Code, is amended by
2-8 adding Subchapter Z to read as follows:
2-9 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
2-10 Sec. 2252.901. CONTRACTS WITH RETIRED STATE EMPLOYEES. (a)
2-11 A state agency that contracts with a retiree of the employee class
2-12 of membership of the Employees Retirement System of Texas or a
2-13 retiree of the Teacher Retirement System of Texas, the majority of
2-14 whose service was credited in that system in a position as an
2-15 officer or employee of a state agency, may not pay for personal
2-16 services under the contract that are substantially similar to the
2-17 services the retiree performed as a state officer or employee an
2-18 amount at an annualized rate:
2-19 (1) that exceeds the lesser of:
2-20 (A) 50 percent of the rate of compensation the
2-21 retiree received from the state during the last 12 months of
2-22 service before retirement; or
2-23 (B) 50 percent of the highest rate of
2-24 compensation for a 12-month period at which the retiree was paid by
2-25 the state before retirement; or
2-26 (2) that, when added to the amount of the retiree's
2-27 annual retirement benefit, exceeds the salary the retiree received
3-1 from the state during the last 12 months of service before
3-2 retirement.
3-3 (b) In this section, "state" and "state agency" include a
3-4 "public senior college or university," as that term is defined by
3-5 Section 61.003, Education Code.
3-6 SECTION 3. (a) Section 659.0115, Government Code, as added
3-7 by this Act, applies only to state service performed on or after
3-8 the effective date of this Act.
3-9 (b) Section 2252.901, Government Code, as added by this Act,
3-10 applies only to a contract entered into on or after the effective
3-11 date of this Act.
3-12 SECTION 4. (a) Except as provided by Subsection (b) of this
3-13 section, this Act takes effect September 1, 1997.
3-14 (b) If this Act receives the vote required by Section 39,
3-15 Article III, of the Texas Constitution for accelerated effect, this
3-16 Act takes effect on the first day of the month after the first
3-17 month in which it could take effect.
3-18 SECTION 5. The importance of this legislation and the
3-19 crowded condition of the calendars in both houses create an
3-20 emergency and an imperative public necessity that the
3-21 constitutional rule requiring bills to be read on three several
3-22 days in each house be suspended, and this rule is hereby suspended,
3-23 and that this Act take effect and be in force according to its
3-24 terms, and it is so enacted.