By Gallego                                            H.B. No. 3445
         77R9200 E                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to state employment practices.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 654.0125, Government Code, is amended by
 1-5     adding Subsection (e) to read as follows:
 1-6           (e)  The classification officer shall review new exempt
 1-7     positions created under Section 654.012(8)(A) and provide
 1-8     recommendations on the appropriate position classification title
 1-9     and salary group for these positions to the legislature during the
1-10     appropriations process.
1-11           SECTION 2. Subchapter C, Chapter 654, Government Code, is
1-12     amended by adding Section 654.0371 to read as follows:
1-13           Sec. 654.0371.  REPORTING AND ANALYZING EMPLOYEE TURNOVER.
1-14     (a)  The classification officer, in consultation with the
1-15     comptroller, shall develop guidelines and procedures that state
1-16     departments, agencies, and judicial entities specified in Section
1-17     654.011 shall use to gather and report information on the reasons
1-18     employees leave state employment.
1-19           (b)  The classification officer shall periodically report
1-20     findings or recommendations on employee turnover to the Legislative
1-21     Audit Committee.
1-22           SECTION 3. Subchapter B, Chapter 659, Government Code, is
1-23     amended by adding Section 659.024 to read as follows:
1-24           Sec. 659.024.  SHIFT DIFFERENTIAL. (a)  A state agency may
 2-1     pay a shift differential not to exceed 15 percent of the monthly
 2-2     pay rate to an employee who works an evening shift or a night
 2-3     shift.
 2-4           (b)  In addition to the shift differential authorized by
 2-5     Subsection (a), a state agency may pay a weekend shift differential
 2-6     not to exceed 5 percent of the monthly pay rate to an employee who
 2-7     works on weekends.
 2-8           (c)  An agency electing to implement a shift differential
 2-9     program shall develop policies governing payment of shift
2-10     differentials consistent with the requirements of this section,
2-11     which shall include defining evening shift, night shift, and
2-12     weekend shift and may include provisions for prorating shift
2-13     differential payments based on the number of evening, night, or
2-14     weekend shifts worked by an employee during a pay period.
2-15           SECTION 4. Section 659.254, Government Code, is amended to
2-16     read as follows:
2-17           Sec. 659.254.  REALLOCATION OR RECLASSIFICATION OF A
2-18     CLASSIFIED POSITION [REALLOCATED OR RECLASSIFIED TO DIFFERENT
2-19     SALARY GROUP]. (a)  This section applies only to positions
2-20     classified under the state's position classification plan.
2-21           (b)  In this section:
2-22                 (1)  "higher salary group" means a salary group with a
2-23     higher minimum salary rate; [and]
2-24                 (2)  "lower salary group" means a salary group with a
2-25     lower minimum salary rate; and
2-26                 (3)  "same salary group" means a salary group with the
2-27     same minimum salary rate.
 3-1           (c)  Except as provided by Subsection (d), an [An] employee
 3-2     whose classified position is reallocated by the General
 3-3     Appropriations Act or reclassified under Chapter 654 to a higher
 3-4     salary group will be paid at the minimum salary rate in the higher
 3-5     salary group or at the salary rate the employee would have received
 3-6     without the reallocation or reclassification, whichever rate is
 3-7     higher.
 3-8           (d)  To [, except:]
 3-9                 [(1)  to] maintain desirable salary relationships among
3-10     employees in the affected positions, the salary of an employee
3-11     whose classified position is reallocated by the General
3-12     Appropriations Act or reclassified under Chapter 654 to a higher
3-13     salary group may be adjusted up to [not more than]:
3-14                 (1)  the same step number in the new salary group as
3-15     the step number held by the employee before the reallocation or
3-16     reclassification [(A)  two steps higher], if the employee's salary
3-17     group is divided into steps by the General Appropriations Act; or
3-18                 (2) [(B)]  a percentage above the minimum salary rate
3-19     in the new salary group equivalent to the corresponding percentage
3-20     of the salary rate held by the employee before the reallocation or
3-21     reclassification [6.8 percent higher], if the employee's salary
3-22     group is not divided into steps by the General Appropriations Act
3-23     [; and]
3-24                 [(2)  the employee may not advance to a step number in
3-25     the new salary group higher than the step number rate held before
3-26     the reallocation or reclassification, if the employee's salary
3-27     group is divided into steps by the General Appropriations Act].
 4-1           (e) [(d)]  An employee whose classified position is
 4-2     reallocated by the General Appropriations Act or reclassified under
 4-3     Chapter 654 to a lower salary group will be paid at the salary rate
 4-4     that the employee would have received had the position not been
 4-5     reallocated or reclassified, not to exceed the maximum rate of the
 4-6     lower salary group.
 4-7           (f)  To maintain desirable salary relationships among
 4-8     employees in the affected positions, an employee whose classified
 4-9     position is reclassified to another position in the same salary
4-10     group may be paid at any rate within the salary group range. Salary
4-11     increases resulting from these actions shall count against the
4-12     maximum amount a state agency spends for adjustments to salary
4-13     rates of, merit salary increases in, and promotions to classified
4-14     positions during a fiscal year under Section 659.261.
4-15           SECTION 5. Section 659.255(e), Government Code, is amended to
4-16     read as follows:
4-17           (e)  For an employee to be eligible for a merit salary
4-18     increase or a one-time merit payment, the following additional
4-19     criteria must be met:
4-20                 (1)  the employee must have been employed by the state
4-21     agency for at least six continuous months prior to the award of the
4-22     increase or payment;
4-23                 (2)  at least six months must have elapsed since the
4-24     employee's last promotion, [enhanced compensation award authorized
4-25     by the General Appropriations Act,] one-time merit payment, or
4-26     merit salary increase at the agency; and
4-27                 (3)  agency criteria for granting merit salary
 5-1     increases or one-time merit payments must include specific criteria
 5-2     and documentation to substantiate the granting of a merit increase
 5-3     or one-time merit payment.
 5-4           SECTION 6. Section 659.260, Government Code, is amended to
 5-5     read as follows:
 5-6           Sec. 659.260.  TEMPORARY ASSIGNMENT. (a)  [This section
 5-7     applies only to an employee whose permanent position is classified
 5-8     under the state's position classification plan.]
 5-9           [(b)]  To facilitate a state agency's work during an
5-10     emergency or other special circumstance, an employee may:
5-11                 (1)  be temporarily assigned to other duties for a
5-12     period not to exceed six months; and
5-13                 (2)  receive during the period of reassignment the
5-14     appropriate rate of pay for the temporary position if the temporary
5-15     position is classified in a salary group with a higher minimum
5-16     salary rate.
5-17           (b) [(c)]  An employee may not be assigned temporary duties
5-18     under this section for more than six months during a twelve-month
5-19     period.
5-20           (c) [(d)]  An employee temporarily designated to act as the
5-21     administrative head of a state agency may continue to receive a
5-22     salary for a classified position in an amount not to exceed the
5-23     amount established by the General Appropriations Act for the
5-24     administrative head of the agency.
5-25           (d) [(e)]  While the employee is temporarily assigned under
5-26     this section, the state agency may not:
5-27                 (1)  award a merit salary increase to the employee;
 6-1                 (2)  promote or demote the employee; or
 6-2                 (3)  reduce the employee's salary.
 6-3           SECTION 7. Section 659.261, Government Code, is amended to
 6-4     read as follows:
 6-5           Sec. 659.261.  SALARY CAP. (a)  The maximum amount a state
 6-6     agency spends for salary adjustments authorized by Section 659.262
 6-7     and for merit salary increases in and promotions to classified
 6-8     positions during a fiscal year may not exceed, without the written
 6-9     approval of the budget division of the governor's office and the
6-10     Legislative Budget Board, the amount computed by multiplying the
6-11     total amount spent by the agency in the preceding fiscal year for
6-12     classified salaries times the percentage set by the General
6-13     Appropriations Act for purposes of this computation.
6-14           (b)  The maximum amount that may be spent for salary
6-15     adjustments authorized by Section 659.262 and for merit salary
6-16     increases in and promotions to classified positions shall be
6-17     computed separately for each year of the state fiscal biennium.
6-18     Salary adjustments authorized by Section 659.262, merit [Merit]
6-19     salary increases and promotions awarded in the first fiscal year of
6-20     a biennium do not count against the maximum amount that may be
6-21     spent for those increases in the second fiscal year of that
6-22     biennium.
6-23           (c)  Money spent to pay a salary increase for an employee who
6-24     is promoted to a classified position title counts against the
6-25     limitation prescribed by this section only if, as a result of the
6-26     promotion, the number of agency employees in that position title
6-27     exceeds the maximum number of agency employees who have been in
 7-1     that position title at any time during the preceding six-month
 7-2     period.
 7-3           (d)  A request to exceed the limitation prescribed by this
 7-4     section must be submitted by the governing body of the agency, or
 7-5     by the head of the agency if the agency is not governed by a
 7-6     multimember governing body, and must include at least:
 7-7                 (1)  the date on which the governing body or the head
 7-8     of the agency approved the request;
 7-9                 (2)  a statement justifying the need to exceed the
7-10     limitation; and
7-11                 (3)  the source of funds to be used to pay the salary
7-12     increases.
7-13           (e)  The comptroller shall prescribe accounting and reporting
7-14     procedures necessary to ensure that the amount spent for salary
7-15     adjustments authorized by Section 659.262 and for merit salary
7-16     increases and promotions does not exceed the limitations
7-17     established by this section.
7-18           SECTION 8. Subchapter K, Chapter 659, Government Code, is
7-19     amended by adding Section 659.262 to read as follows:
7-20           Sec. 659.262.  SALARY ADJUSTMENTS. A state agency may adjust
7-21     an employee's salary, within the employee's current salary group,
7-22     in accordance with significant changes in the job market or in
7-23     order to maintain equitable internal salary relationships.
7-24           SECTION 9. Section 661.152(e), Government Code, is amended to
7-25     read as follows:
7-26           (e)  An employee accrues vacation leave at the applicable
7-27     rate beginning on the first day of state employment and ending on
 8-1     the last day upon which the employee actually performs duties
 8-2     associated with the employee's position [of state employment]. An
 8-3     employee accrues and is entitled to be credited for one month's
 8-4     vacation leave for each month of employment with the state
 8-5     beginning on the first day of employment with the state and on the
 8-6     first calendar day of each succeeding month of state employment. An
 8-7     employee who is employed by the state during any part of a calendar
 8-8     month accrues vacation leave entitlement for the entire calendar
 8-9     month.
8-10           SECTION 10. Sections 661.202(b) and (j), Government Code, are
8-11     amended to read as follows:
8-12           (b)  An employee accrues sick leave beginning on the first
8-13     day of state employment and ending on the last day upon which the
8-14     employee actually performs duties associated with the employee's
8-15     position [of state employment].  An employee is entitled to be
8-16     credited for one month's accrual of sick leave at the rate
8-17     specified by Subsection (c) for each month of employment with the
8-18     state beginning on the first day of employment with the state and
8-19     on the first calendar day of each succeeding month of state
8-20     employment.
8-21           (j)  A state agency shall prepare [file] a written statement
8-22     [with the state auditor] covering the policies and procedures for
8-23     an extension of leave under Subsection (i) and shall make the
8-24     statement available to all agency employees.
8-25           SECTION 11. Section 661.206(b), Government Code, is amended
8-26     to read as follows:
8-27           (b)  An employee may use up to eight hours of sick leave each
 9-1     fiscal [calendar] year to attend parent-teacher conference sessions
 9-2     for the employee's children.
 9-3           SECTION 12. Section 751.012, Government Code, is amended to
 9-4     read as follows:
 9-5           Sec. 751.012.  INTERAGENCY CONTRACTS. (a)  The office may
 9-6     enter into interagency contracts with other state agencies to
 9-7     locate staff of the other state agency in Washington, D.C., to work
 9-8     under the supervision of the director and shall coordinate
 9-9     activities conducted on behalf of the other agency with those of
9-10     the office.
9-11           (b)  The office shall enter into a contract described by
9-12     Subsection (a) with the Legislative Budget Board.
9-13           (c)  A contract under this section must include provisions
9-14     under which staff of the other state agency:
9-15                 (1)  report directly to that agency's administrative
9-16     head or the presiding officer of that agency's governing body;
9-17                 (2)  have an officially recognized role in that
9-18     agency's budget planning process; and
9-19                 (3)  provide periodic updates of activities at meetings
9-20     of that agency's governing body[; and]
9-21                 [(4)  receive a salary established under Subsection
9-22     (d)].
9-23           (d) [The state auditor shall establish a salary schedule for
9-24     state employees subject to a contract under this section.  The
9-25     schedule shall:]
9-26                 [(1)  be based on specifications for expertise and
9-27     experience in state-federal relations; and]
 10-1                [(2)  include a standard cost-of-living adjustment to
 10-2    compensate an employee for the cost of living in Washington, D.C.]
 10-3          [(e)]  A state agency identified by the Legislative Budget
 10-4    Board as receiving significant federal funding or significantly
 10-5    affected by federal policy decisions, other than a state agency
 10-6    that is headed by a statewide-elected official, shall:
 10-7                (1)  develop a plan of state-federal coordination;
 10-8                (2)  study the benefits of entering a contract under
 10-9    Subsection (a); and
10-10                (3)  submit the coordination plan and study to the
10-11    office and to the Legislative Budget Board.
10-12          (e) [(f)]  The Health and Human Services Commission shall
10-13    satisfy the requirements of Subsection (d) [(e)] for all health and
10-14    human services agencies listed in Section 531.001, Government Code
10-15    [Section 19, Article 4413(502), Revised Statutes].
10-16          SECTION 13. Section 813.506, Government Code, is amended to
10-17    read as follows:
10-18          Sec. 813.506.  CUSTODIAL OFFICER SERVICE. (a)  The Texas
10-19    Department of Criminal Justice, the managed health care unit of The
10-20    University of Texas Medical Branch, and the Texas Tech University
10-21    Health Sciences Center by rule shall adopt standards for
10-22    determining eligibility for service credit as a custodial officer,
10-23    based on the need to encourage early retirement of persons whose
10-24    duties are hazardous and require them to have routine contact with
10-25    inmates of or defendants confined in the state jail division of the
10-26    Texas Department of Criminal Justice on a regular basis.
10-27          (b)  To be creditable as custodial officer service, service
 11-1    performed must be performed as a parole officer or caseworker or
 11-2    must meet the requirements of the rules adopted under Subsection
 11-3    (a) and be performed by persons in one of the following job
 11-4    categories:
 11-5                (1)  all persons classified as Correctional Officer I
 11-6    through warden, including training officers and special operations
 11-7    reaction team officers;
 11-8                (2)  all other employees assigned to work on a unit and
 11-9    whose jobs require routine contact with inmates or defendants
11-10    confined in the state jail division, including but not limited to
11-11    farm managers, livestock supervisors, maintenance foremen, shop
11-12    foremen, medical assistants, food service supervisors, stewards,
11-13    education consultants, commodity specialists, and correctional
11-14    counselors;
11-15                (3)  employees assigned to administrative offices whose
11-16    jobs require routine contact with inmates or defendants confined in
11-17    the state jail division at least 50 percent of the time, including
11-18    but not limited to investigators, compliance monitors, accountants
11-19    routinely required to audit unit operations, sociologists,
11-20    interviewers, classification officers, and supervising counselors;
11-21    and
11-22                (4)  administrative positions whose jobs require
11-23    response to emergency situations involving inmates or defendants
11-24    confined in the state jail division, including but except as
11-25    specified not limited to the director, deputy directors, assistant
11-26    directors, and not more than 25 administrative duty officers.
11-27          (c)  The Texas Department of Criminal Justice, the managed
 12-1    health care unit of The University of Texas Medical Branch or the
 12-2    Texas Tech University Health Sciences Center, or the Board of
 12-3    Pardons and Paroles, as applicable, shall determine a person's
 12-4    eligibility to receive credit as a custodial officer.  A
 12-5    determination of the department, unit, or board may not be appealed
 12-6    by an employee but is subject to change by the retirement system.
 12-7          [(d)  As part of the audit of the Texas Department of
 12-8    Criminal Justice by the state auditor in accordance with Chapter
 12-9    321, the state auditor may verify the accuracy of reports submitted
12-10    to the retirement system under this section. The state auditor
12-11    shall review biennially the standards adopted by the department
12-12    under Subsection (a).]
12-13          SECTION 14. Section 2052.103(a), Government Code, is amended
12-14    to read as follows:
12-15          (a)  Not later than the last day of the first month following
12-16    each quarter of the fiscal year, a state agency shall file with the
12-17    state auditor a written report that provides for that fiscal
12-18    quarter:
12-19                (1)  the number of full-time equivalent state employees
12-20    employed by the agency and paid from appropriated funds [in the
12-21    state treasury];
12-22                (2)  the number of full-time equivalent state employees
12-23    employed by the agency and paid from funds other than appropriated
12-24    funds [outside of the state treasury];
12-25                (3)  the increase or decrease, if any, of the number of
12-26    full-time equivalent employees from the fiscal quarter preceding
12-27    the quarter covered by the report;
 13-1                (4)  the number of positions of the agency paid from
 13-2    appropriated funds [in the state treasury];
 13-3                (5)  the number of positions of the agency paid from
 13-4    funds other than appropriated funds [outside of the state
 13-5    treasury];
 13-6                (6)  the number of individuals who performed services
 13-7    for the agency under a contract, including consultants and
 13-8    individuals employed under contracts with temporary help services;
 13-9    and
13-10                (7)  the number of managers, supervisors, and staff.
13-11          SECTION 15. Chapter 2056.002(b), Government Code, is amended
13-12    to read as follows:
13-13          (b)  The Legislative Budget Board and the Governor's Office
13-14    of Budget and Planning shall determine the elements required to be
13-15    included in each agency's strategic plan. Unless modified by the
13-16    Legislative Budget Board and the Governor's Office of Budget and
13-17    Planning, and except as provided by Subsection (c), a plan must
13-18    include:
13-19                (1)  a statement of the mission and goals of the state
13-20    agency;
13-21                (2)  a description of the indicators developed under
13-22    this chapter and used to measure the output and outcome of the
13-23    agency;
13-24                (3)  identification of the groups of people served by
13-25    the agency, including those having service priorities, or other
13-26    service measures established by law, and estimates of changes in
13-27    those groups expected during the term of the plan;
 14-1                (4)  an analysis of the use of the agency's resources
 14-2    to meet the agency's needs, including future needs, and an estimate
 14-3    of additional resources that may be necessary to meet future needs;
 14-4                (5)  an analysis of expected changes in the services
 14-5    provided by the agency because of changes in state or federal law;
 14-6                (6)  a description of the means and strategies for
 14-7    meeting the agency's needs, including future needs, and achieving
 14-8    the goals established under Section 2056.006 for each area of state
 14-9    government for which the agency provides services;
14-10                (7)  a description of the capital improvement needs of
14-11    the agency during the term of the plan and a statement, if
14-12    appropriate, of the priority of those needs;
14-13                (8)  identification of each geographic region of this
14-14    state, including the Texas-Louisiana border region and the
14-15    Texas-Mexico border region, served by the agency, and if
14-16    appropriate the agency's means and strategies for serving each
14-17    region; [and]
14-18                (9)  an assessment of the agency's future workforce
14-19    needs and a description of strategies to ensure that the future
14-20    workforce needs of the agency are met.  The agency shall provide
14-21    workforce planning information according to criteria and guidelines
14-22    developed by the state classification officer and shall include
14-23    information on workforce trends, skill availability in the labor
14-24    market, historical and projected turnover due to retirement and
14-25    other reasons, recruitment and staff development needs, and other
14-26    factors identified by the state classification officer; and
14-27                (10)  other information that may be required.
 15-1          SECTION 16. Section 2113.204(a), Government Code, is amended
 15-2    to read as follows:
 15-3          (a)  Except as otherwise authorized by the General
 15-4    Appropriations Act, a state agency may use appropriated money to
 15-5    pay the reasonable and necessary expenses incurred in moving the
 15-6    household property only for a state employee who:
 15-7                (1)  is being reassigned from one designated
 15-8    headquarters to another designated headquarters of that agency, if
 15-9    the agency determines that the best interests of the state will be
15-10    served by the reassignment and the distance between the current and
15-11    future designated headquarters is at least 25 miles; [or]
15-12                (2)  is employed at a facility that is being closed or
15-13    is undergoing a reduction in force, if the employee accepts a
15-14    position with the agency at another designated headquarters that is
15-15    at least 25 miles from the facility being closed or undergoing a
15-16    reduction in force; or
15-17                (3)  is a newly hired employee who has been hired in a
15-18    classified or exempt position identified as critical by the
15-19    administrative head of a state agency.
15-20          SECTION 17. Section 21.010, Labor Code, is amended to read as
15-21    follows:
15-22          Sec. 21.010.  EMPLOYMENT DISCRIMINATION TRAINING FOR STATE
15-23    EMPLOYEES. (a)  Each state agency shall provide to employees of the
15-24    agency an employment discrimination training program that complies
15-25    with this section.
15-26          (b)  The training program must provide the employee with
15-27    information regarding the agency's policies and procedures relating
 16-1    to employment discrimination, including employment discrimination
 16-2    involving sexual harassment.
 16-3          (c)  Each employee of a state agency shall attend the
 16-4    training program required by this section not later than the 60th
 16-5    [30th] day after the date the employee is hired by the agency and
 16-6    shall attend supplemental training every two years.
 16-7          (d)  The commission shall develop materials for use by state
 16-8    agencies in providing employment discrimination training as
 16-9    required by this section.
16-10          (e)  Each state agency shall require an employee of the
16-11    agency who attends a training program required by this section to
16-12    sign a statement verifying the employee's attendance at the
16-13    training program. The agency shall file the statement in the
16-14    employee's personnel file.
16-15          SECTION 18. Section 501.044, Labor Code, is amended to read
16-16    as follows:
16-17          Sec. 501.044.  EFFECT OF SICK LEAVE; VACATION [ANNUAL] LEAVE;
16-18    OVERTIME; COMPENSATORY TIME. [(a)]  An employee may elect to use
16-19    all or any amount of accrued sick leave, vacation leave, overtime,
16-20    or compensatory time before receiving income benefits.  If an
16-21    employee makes this election [elects to use sick leave], the
16-22    employee is not entitled to income benefits under this chapter
16-23    until the total amount of sick leave, vacation leave, overtime, and
16-24    compensatory time designated by the employee has been exhausted
16-25    [the employee's accrued sick leave.]
16-26          [(b)  An employee may elect to use all or any number of weeks
16-27    of accrued annual leave after the employee's accrued sick leave is
 17-1    exhausted. If an employee elects to use annual leave, the employee
 17-2    is not entitled to income benefits under this chapter until the
 17-3    elected number of weeks of leave have been exhausted].
 17-4          SECTION 19. This Act takes effect September 1, 2001.