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79R2387 KEG-F

By:  Isett                                                        H.B. No. 2248


A BILL TO BE ENTITLED
AN ACT
relating to salary increases, equity adjustments, and merit payments for certain state employees. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter K, Chapter 659, Government Code, is amended by adding Section 659.2545 to read as follows: Sec. 659.2545. EQUITY ADJUSTMENTS. (a) A state agency is authorized to adjust the salary rate of an employee whose position is classified under the position classification plan to any rate within the employee's salary group range as necessary to maintain desirable salary relationships: (1) between and among employees of the agency; or (2) between employees of the agency and employees who hold similar positions in the relevant labor market. (b) In determining desirable salary relationships under Subsection (a), a state agency shall consider the education, skills, related work experience, length of service, and job performance of agency employees and similar employees in the relevant labor market. (c) A state agency may award an equity adjustment to an employee under this section only if: (1) the employee has worked in the employee's current position for not less than six months while maintaining at least a satisfactory level of job performance; and (2) the adjustment does not take effect during the same fiscal year as another equity adjustment made to the employee's salary under this section. (d) A state agency shall adopt internal written rules relating to making equity adjustments under this section. The rules shall include procedures under which the agency will review and analyze the salary relationships between agency employees who receive salaries under the same job classification and perform the same type and level of work to determine if inequities exist. SECTION 2. As soon as practicable after the effective date of this Act, the classification officer under Subchapter C, Chapter 654, Government Code, shall make adjustments to the job classifications within the position classification plan as necessary to reflect the changes proposed under Option 3 of the state auditor's report entitled "A Biennial Report on the State's Compensation System for Fiscal Years 2006 and 2007" (Report No. 05-701, September 2004) to Salary Schedule A, B, and C positions. SECTION 3. (a) In this section and Section 4 of this Act: (1) "State agency" means: (A) a board, commission, department, institution, office, or other agency in the executive branch of state government that is created by the constitution or a statute of this state, including an institution of higher education as defined by Section 61.003, Education Code, other than a public junior college; or (B) the Supreme Court of Texas, the Texas Court of Criminal Appeals, a court of appeals, or another agency in the judicial branch. (2) "Total employee pay expenditures" means the total amount spent by a state agency during a fiscal year for the purpose of paying the salary and wages of all employees of the agency, regardless of the fund from which the expenditures were made. (b) During the state fiscal year beginning September 1, 2005, and the state fiscal year beginning September 1, 2006, a state agency shall spend an amount equal to one percent of the agency's total employee pay expenditures during the previous state fiscal year for the purpose of: (1) providing merit salary increases and one-time merit payments for employees of the agency in accordance with Section 659.255, Government Code; and (2) funding any equity adjustments made by the agency under Section 659.2545, Government Code, as added by this Act, that are scheduled to take effect before January 1, 2006. SECTION 4. (a) Except as provided by this section, effective January 1, 2006, each employee of a state agency who is employed under a position classified under Salary Schedule A or B of the state's position classification plan or who holds a position that is exempt from the classification plan is entitled to an increase in the employee's gross salary for each remaining month of the state fiscal year beginning September 1, 2005, and each month of the state fiscal year beginning September 1, 2006, in an amount equal to three percent of the employee's gross monthly salary on December 31, 2005, but not less than $175 per month. (b) This section does not apply to: (1) a statewide elected official, a justice or judge of an appellate or district court, a district attorney, a criminal district attorney, or a county attorney performing the duties of a district attorney; or (2) a member of a board, commission, or other governing body who may receive a compensatory per diem or expense reimbursement but not a salary for employment. (c) An employee eligible for a salary increase under this section is subject to any maximum salary rate provided by the General Appropriations Act for the employee's exempt or classified position. The salary increase provided by this section does not apply to the extent that the salary increase would cause the employee's salary to exceed that maximum rate. (d) The expenses of an agency that are related to an employee's salary increase under this section, including the cost of benefits associated with the salary increase, shall be paid by the agency and divided among available funds held in the state treasury and local funds in a manner that is proportionate to the agency's method of financing for any regular compensation provided to the employee during December 2005. (e) A salary increase provided to a state agency employee under this section shall be provided in addition to any salary increase associated with changes made to job classifications in the state's position classification plan under Section 2 of this Act and any merit increase, one-time merit payment, or equity adjustment provided to the employee in accordance with Section 3 of this Act. SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.