LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 15, 1997
         
         
      TO: Honorable Rene Oliveira, Chair            IN RE:  House Bill No. 3512, Committee Report 1st House, Substituted
          Committee on Economic Development                              By: Greenberg
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3512 ( Relating 
to assistance or benefits provided to state employees who lose 
their jobs as a result of a reduction in force or the privatization 
of state services or who retire.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB3512-Committee Report 1st House, Substituted
         
No significant fiscal implication to the State is anticipated.
         

         
 
Similar annual fiscal implications This bill would provide service 
retirement benefits from the Employees Retirement System (ERS) 
to any employee class member who is at least 50 years of age, 
whose position is eliminated by a reduction in workforce of 
more than 25 positions or the privatization of more than 25 
positions, and who would be eligible for service retirement 
by adding three years of age.  The retirement provision in the 
bill is only applicable during the 1998-99 biennium, and members 
must retire when first eligible during the incentive period. 
 Once an employee retires, ERS would submit to the Comptroller's 
office information about the employee's monthly salary and the 
Comptroller's office would reduce appropriations to the agency 
by this amount times the number of months remaining in the biennium. 


It is not possible to estimate how many members would be 
eligible for this enhanced eligibility for service retirement 
because the number of positions that might be eliminated during 
the next biennium is not known.  Furthermore, of the total number 
of employees that might be affected, not all would be eligible 
to retire or choose to retire. 

HB 3512, as substituted, 
provides that a state employee whose position is eliminated 
due to a reduction in force or privatization would receive preferential 
treatment in employment with other state agencies.  The bill 
also directs the Texas Workforce Commission (TWC) to provide 
a variety a outplacement services to former employees of state 
agency that implemented a reduction in force or eliminated 25 
or more positions due to privatization of certain services. 
 The Texas Workforce Commission projects that there will be 
no fiscal impact from the provisions of this bill that apply 
directly to that agency.  Most services called for by the bill 
are currently provided to all job-seekers, whether or not they 
are former state employees.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   327   Employees Retirement System
                                         
                      LBB Staff:   JK ,TH ,SC ,RA