78R9630 MCK-F


By:  Gallego                                                      H.B. No. 906



A BILL TO BE ENTITLED

AN ACT

relating to the human resources staff and functions of state 
agencies.      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle B, Title 6, Government Code, is amended 
by adding Chapter 670 to read as follows:

CHAPTER 670.  HUMAN RESOURCES STAFFING AND FUNCTIONS
	Sec. 670.001.  DEFINITION.  In this chapter, "state agency" 
means a department, commission, board, office, authority, council, 
or other governmental entity in the executive branch of government 
that is created by the constitution or a statute of this state and 
has authority not limited to a geographical portion of the state.  
The term does not include a university system or institution of 
higher education as defined by Section 61.003, Education Code.
	Sec. 670.002.  HUMAN RESOURCES STAFFING FOR LARGE STATE 
AGENCIES.  A state agency with 500 or more full-time equivalent 
employees shall adjust the agency's human resources staff to 
achieve a human resources employee to staff ratio of not more than 
one human resources employee for every 100 staff members.
	Sec. 670.003.  HUMAN RESOURCES STAFFING FOR MEDIUM-SIZED AND 
SMALL STATE AGENCIES; OUTSOURCING.  (a)  The State Council on 
Competitive Government shall determine the cost-effectiveness of 
consolidating the human resources functions of or contracting with 
private entities to perform the human resources functions of state 
agencies that employ fewer than 500 full-time equivalent employees.
	(b)  If the council determines that contracting with private 
entities is cost-effective, the council shall issue a request for 
proposals for vendors to perform the human resources functions of 
the agencies.
	(c)  The council shall determine which human resources 
functions are subject to the contract and which functions the 
agency may select to perform itself.
	(d)  Each agency shall pay for the contracts for human 
resources functions out of the agency's human resources budget.
	(e)  A state agency may appeal to the Legislative Budget 
Board for a waiver from the decision of the State Council on 
Competitive Government to require the state agency to consolidate 
the human resources functions of the agency or to contract with a 
private entity to perform the human resources functions of the 
agency.  The Legislative Budget Board may grant a waiver if the 
Legislative Budget Board determines, based on the facts and 
circumstances of the state agency, that it would not be 
cost-effective for the agency to consolidate the human resources 
functions of the agency or to contract with a private entity to 
perform the human resources functions of the agency.  A state agency 
that receives a waiver under this subsection is exempt from the 
requirements of this section.
	SECTION 2.  (a)  Not later than September 1, 2003, each state 
agency with 500 or more full-time equivalent employees shall comply 
with the human resources employee to staff ratio requirements in 
Section 670.002, Government Code, as added by this Act.
	(b)  Not later than January 1, 2004, the State Council on 
Competitive Government shall conduct an initial feasibility study 
to determine the cost-effectiveness of consolidating the human 
resources functions of or contracting with private entities to 
perform human resources functions of state agencies under Section 
670.003, Government Code, as added by this Act.
	SECTION 3.  This Act takes effect September 1, 2003.