BILL ANALYSIS

C.S.H.B. 3743

By: Olcott

Delivery of Government Efficiency

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that government hiring practices in state agencies vary somewhat based on the size and scope of the agency in question. Current law instructs state agencies to develop procedures for achieving a ratio of one manager for every 11 staff members. The bill author has further informed the committee that some agencies are exempted from that requirement and that agencies may appeal to the Legislative Budget Board if they believe the requirement is inappropriate for the agency. C.S.H.B. 3743 seeks to address this issue by requiring all agencies to adhere to the 11-1 staff-to-manager ratio and by instructing agencies to develop policies and procedures for hiring as few full-time equivalent employees in management positions as possible while still performing the agency's functions.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 3743 amends the Government Code to expand the applicability of the prohibition against a state agency employing more than one full-time equivalent employee in a management position for every 11 full-time equivalent employees that the agency employs in nonmanagerial staff positions by removing the specification that the prohibition applies to a state agency in the executive branch of state government that employs more than 100 full-time equivalent employees. The bill requires each state agency to develop procedures to reduce the number of full-time equivalent employees in management positions with the goal of employing the fewest number of employees in management positions necessary to perform the agency's functions. These provisions do not prohibit a state agency with fewer than 11 full-time equivalent employees from employing one full-time equivalent employee in a management position.

C.S.H.B. 3743 repeals Section 651.004(a), Government Code, which requires a state agency to develop procedures for use in achieving a management-to-staff ratio of one manager for each 11 staff members.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 3743 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute includes the following provisions absent from the introduced:

· a provision expanding the prohibition against a state agency employing more than one full-time equivalent employee in a management position for every 11 full-time equivalent employees that the agency employs in nonmanagerial staff positions by removing the specification that the prohibition applies to a state agency in the executive branch of state government that employs more than 100 full-time equivalent employees;

· a requirement for each state agency to develop procedures to reduce the number of full-time equivalent employees in management positions with the goal of employing the fewest number of employees in management positions necessary to perform the agency's functions; and

· a provision establishing that these provisions do not prohibit a state agency with fewer than 11 full-time equivalent employees from employing one full-time equivalent employee in a management position.

Whereas the introduced repealed requirements relating to management-to-staff ratios for state agencies, as defined by statutory provisions governing state agency reports on state employees, the substitute repeals the requirement for a state agency to develop procedures for use in achieving a management-to-staff ratio of one manager for each 11 staff members.

The substitute changes the bill's effective date from the possibility of immediate effect, contingent on receiving the requisite constitutional vote, as in the introduced, to September 1, 2025.