By Barrientos                                   S.B. No. 1732

      75R7614 MLS-D                           

                                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 positions 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           SECTION 2.  Subchapter B, Chapter 814, Government Code, is

2-15     amended by adding Section 814.1041 to read as follows:

2-16           Sec. 814.1041.  RETIREMENT INCENTIVE FOR EMPLOYEE CLASS.  (a)

2-17     A member of the employee class may retire under this section if the

2-18     member has at least a minimum amount of service credit required by

2-19     Section 814.104 and is not more than three years younger than the

2-20     minimum age required under that section for eligibility for service

2-21     retirement with that amount of service credit.

2-22           (b)  A member of the employee class who has at least the

2-23     minimum amount and type of service credit required for service

2-24     retirement with an annuity computed under Section 814.107 may

2-25     retire under this section and receive an annuity under that section

2-26     that is not actuarially reduced, if the member is not more than

2-27     three years younger than the minimum age required under that

 3-1     section to avoid actuarial reduction of the annuity.

 3-2           (c)  A member eligible to retire under this section is one

 3-3     who:

 3-4                 (1)  meets minimum age and service requirements under

 3-5     Section 814.104 or 814.107 except as provided by Subsection (a) or

 3-6     (b) of this section, as applicable;

 3-7                 (2)  applies for service retirement;

 3-8                 (3)  holds a position included in the employee class on

 3-9     the date the application is filed; and

3-10                 (4)  designates an effective date of retirement that is

3-11     after August 31, 1997, but before September 1, 1999, and is the

3-12     later of September 30, 1997, or the earliest date that the member's

3-13     retirement may become effective.

3-14           (d)  The retirement system shall report to the comptroller

3-15     the name of each person who retires under this section, the

3-16     effective date of the person's retirement, the entity by which the

3-17     person was employed immediately before retirement, and the amount

3-18     of compensation used in computing the person's annuity.  The

3-19     retirement system shall submit reports under this subsection at the

3-20     times and in the manner the comptroller provides.

3-21           (e)  Except as provided by Subsection (f), the comptroller

3-22     shall reduce the total amount of legislative appropriations to the

3-23     entity by which the retiring member was employed immediately before

3-24     retirement by the amount of the reported compensation multiplied by

3-25     the number of months remaining in the fiscal biennium.

3-26           (f)  The comptroller may not reduce appropriations under

3-27     Subsection (e) if the total legislative appropriations to the

 4-1     entity for the fiscal year in which the employee retires, or for

 4-2     any subsequent fiscal year in the biennium, are less than $1

 4-3     million.

 4-4           (g)  This section expires September 1, 1999.

 4-5           SECTION 3.  Chapter 2252, Government Code, is amended by

 4-6     adding Subchapter D to read as follows:

 4-7               SUBCHAPTER D.  PRIVATIZATION OF STATE SERVICES

 4-8           Sec. 2252.091.  DEFINITION.  In this subchapter, "state

 4-9     agency" means a department, commission, board, office, council, or

4-10     other agency in the executive or judicial branch of state

4-11     government that is created by the constitution or a statute of this

4-12     state, including a university system or an institution of higher

4-13     education as defined by Section 61.003, Education Code.

4-14           Sec. 2252.092.  CONTRACTS.  A contract between a state agency

4-15     and a private entity that contracts to provide services formerly

4-16     provided by state employees shall require the private entity to

4-17     provide at least the same compensation and benefits to its

4-18     employees as the state provided to employees performing similar

4-19     services.

4-20           SECTION 4.  This Act takes effect September 1, 1997.

4-21           SECTION 5.  The importance of this legislation and the

4-22     crowded condition of the calendars in both houses create an

4-23     emergency and an imperative public necessity that the

4-24     constitutional rule requiring bills to be read on three several

4-25     days in each house be suspended, and this rule is hereby suspended.