78R1319 MCK-D

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 
STATE AGENCIES; OUTSOURCING.  A state agency with fewer than 500 
full-time equivalent employees but more than 100 full-time 
equivalent employees shall:
		(1)  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; or
		(2)  contract with a private entity to perform the 
human resources functions of the agency, if the State Council on 
Competitive Government determines that the agency's contracting 
with a private entity is cost-effective.
	Sec. 670.004.  HUMAN RESOURCES STAFFING FOR SMALL STATE 
AGENCIES; OUTSOURCING.  (a)  The State Council on Competitive 
Government shall determine the cost-effectiveness of contracting 
with private entities to perform the human resources functions of 
state agencies that employ 100 or fewer 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 shall be 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.
	SECTION 2.  (a)  Not later than November 1, 2003, each state 
agency with fewer than 500 full-time equivalent employees but more 
than 100 full-time equivalent employees shall report to the 
comptroller and the State Council on Competitive Government the 
option chosen by the agency to comply with Section 670.003, 
Government Code, as added by this Act.
	(b)  Not later than November 1, 2003, the State Council on 
Competitive Government shall conduct an initial feasibility study 
to determine the cost-effectiveness of contracting with private 
entities to perform human resources functions under Section 
670.004, Government Code, as added by this Act.
	(c)  Not later than January 1, 2004, 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.
	SECTION 3.  This Act takes effect September 1, 2003.