By Greenberg                                          H.B. No. 3742
         76R5671 JRD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the disposition of savings resulting from a state
 1-3     agency's reduction in workforce or privatization of a function.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 317, Government Code, is amended by
 1-6     adding Subchapter C to read as follows:
 1-7         SUBCHAPTER C. SAVINGS RESULTING FROM REDUCTION IN WORKFORCE
 1-8                        OR PRIVATIZATION OF FUNCTION
 1-9           Sec. 317.061.  DEFINITION.  In this subchapter, "state
1-10     agency" means an office, institution, commission, or other agency
1-11     in the  executive branch of state government but does not include
1-12     the office of the governor or the office of the lieutenant
1-13     governor.
1-14           Sec. 317.062.  APPLICABILITY.  This subchapter applies only
1-15     to the expenditure of appropriated money by a state agency and the
1-16     transfer of appropriated money by an agency to another item of
1-17     appropriation.
1-18           Sec. 317.063.  DISPOSITION OF CERTAIN SAVINGS; LEGISLATIVE
1-19     BUDGET BOARD APPROVAL REQUIRED.  (a)  A state agency may not,
1-20     without the prior approval of the Legislative Budget Board, spend
1-21     any amounts that it saves during a state fiscal biennium as a
1-22     result of:
1-23                 (1)  reducing or reorganizing its workforce in a manner
1-24     that involves the termination of an existing employee's employment
 2-1     with the agency; or
 2-2                 (2)  contracting with a private entity to perform a
 2-3     function that the agency previously performed itself.
 2-4           (b)  Notwithstanding any authority a state agency is given to
 2-5     transfer amounts between items of appropriation in the General
 2-6     Appropriations Act, an agency may not transfer an amount of savings
 2-7     described by Subsection (a)  to another item of appropriation
 2-8     without the prior approval of the Legislative Budget Board.
 2-9           Sec. 317.064.  REPORTING REDUCTION IN WORKFORCE OR
2-10     PRIVATIZATION TO BOARD; DETERMINING AMOUNT OF SAVINGS.  (a)  A
2-11     state agency that contracts with a private entity to perform a
2-12     function that the agency previously performed itself or that
2-13     reduces its workforce in the manner described by Section 317.063(a)
2-14     shall report that fact to the Legislative Budget Board.
2-15           (b)  The Legislative Budget Board, with the assistance of the
2-16     state agency, shall determine the amount saved as a result of the
2-17     privatization or of the reduction in the workforce. If the State
2-18     Council on Competitive Government was involved in directing the
2-19     privatization or the reduction in the workforce, the council also
2-20     shall assist the board in determining the amount of the savings.
2-21           SECTION 2.  The importance of this legislation and the
2-22     crowded condition of the calendars in both houses create an
2-23     emergency and an imperative public necessity that the
2-24     constitutional rule requiring bills to be read on three several
2-25     days in each house be suspended, and this rule is hereby suspended,
2-26     and that this Act take effect and be in force from and after its
2-27     passage, and it is so enacted.