C.S.H.B. 1318 78(R) BILL ANALYSIS C.S.H.B. 1318 By: Swinford Government Reform Committee Report (Substituted) BACKGROUND AND PURPOSE State agencies face many problems in human resource management. High turnover and an aging workforce contribute to agencies' tendencies to be "top heavy" with managerial staffing often surpassing the national norm. In order to achieve efficiencies and to better meet the state government's human resource needs, a reevaluation and enhancement of the government's human resource management system is necessary. Nationwide, the recommended ratio for the private and public sector is one manager for every eleven employees. At least 36 agencies with more than 100 employees have a manager-to-staff ratio of less than one manager for every 11 employees; these range from 1:9 to 1:2. C.S.H.B. 1318 provides for one time recruitment payments to prospective employees that meet prescribed qualifying criteria, and provides a framework for agencies to begin working toward the suggested ratio of one manager for every eleven employees. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly granted to the Governor in SECTION 4 of this bill. ANALYSIS SECTION 1 - Amends Subchapter K, Chapter 659, Government code by adding Section 659.262 which provides for additional compensation in the form of recruitment payments not to exceed $5,000 for state employees classified under Chapter 654 of the Government Code. Provision is also made for repayment in the event the employee discontinues employment during the first year with the agency. Additionally, Subsection (c) of 659.262 provides for a one-time additional compensation payment not to exceed $5,000 to be added to the employee's salary payment upon the completion of a year of service under a deferred compensation contract. SECTION 2 - Amends Section 2056.0021, Government Code to define the elements of an agency's workforce plan, as submitted to the state auditor. Subsection (c) requires the state auditor to analyze the submitted workforce plans and to use the information gathered to target certain agencies for assistance, as well as provide guidance and support in the form of corrective information as well as training and technical assistance when necessary. SECTION 3 - Amends Subtitle B, Title 6, Government Code by adding Chapter 670, which establishes a management performance program. This program, administered within executive branch agencies, requires the governing body of a state agency to enter into agreements with employees who serve in upper management positions. Under Section 670.002 (b), the terms of the agreements are set forth, including communication of strategic aims, identifying performance measures, and mechanisms for holding upper management employees accountable for performance under the agreement. SECTION 4 - Effective September 1, 2003, Section 651.004, Government Code, is amended by adding Subsections (c-1) and (d). Subsection (c-1) is the first phase in the implementation of a one to eleven manager to staff members ratio. Subsection (c-1) requires agencies employing more than 100 full-time equivalent employees not employ more than one manager for eight full-time equivalent non-managerial employees by September 1, 2004. Subsection (d) provides the option for an appeal by a state agency believing that the ratios required by this section are inappropriate. SECTION 5 - Effective September 1, 2004, Section 651.004, Government Code, is amended by adding Subsection (c-2). Subsection (c-2) is the second phase in the implementation of a one to eleven manager to staff members ratio. After August 31, 2005, agencies employing more than 100 full-time equivalent employees cannot employ more than one management position for every nine full-time equivalent non-managerial staff positions. SECTION 6 - Effective September 1, 2005, Section 651.004, Government Code, is amended by adding Subsection (c-3). Subsection (c-3) is the third phase in the implementation of a one to eleven manager to staff members ratio. After August 31, 2006, agencies employing more than 100 full-time equivalent positions may only employ one full-time equivalent management employee for every ten full-time equivalent employees in non-managerial staff positions. SECTION 7 - Effective September 1, 2006, Section 651.004, Government Code, is amended by adding Subsection (c). Subsection (c) is the final phase in the implementation of a one to eleven manager to staff members ratio. After August 31, 2007, state agencies that employ more than 100 full-time equivalent employees cannot employ more than one full-time equivalent management employee for every eleven full-time equivalent non-managerial employees. SECTION 8 - Repeals Section 656.048 (b), Government Code. SECTION 9 - Effective date. EFFECTIVE DATE SECTION 5 of this Act takes effect September 1, 2004. SECTION 6 of this Act takes effect September 1, 2005. SECTION 7 of this Act takes effect September 1, 2006. Except as otherwise noted above, this Act takes effect September 1, 2003. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original by adding Section 651.004(d) to SECTION 4 to provide a state agency the ability to appeal to the Governor if the agency believes that the minimum management-tostaff ratios required in this section are inappropriate for that agency.