Office of House Bill Analysiss.B. 174

BILL ANALYSIS

Office of House Bill AnalysisS.B. 174

By: Ratliff

Appropriations

4/14/1999

Engrossed

BACKGROUND AND PURPOSE

Currently, under the Texas Constitution, no bill may contain more than one subject. The one exception to this rule is the General Appropriations Act, which must contain more than one subject because it aggregates all the subjects on which the state spends money, with the limitation that the Act must be strictly limited to the subjects and accounts of money. S.B. 174 codifies certain state employment matters currently prescribed by the General Appropriations Act as general law to ensure their constitutional validity. As proposed, this bill codifies certain state employment matters currently prescribed by the General Appropriations Act.

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the comptroller of public accounts in SECTION 10 (Sections 659.004, and 659.006, Government Code) and in SECTION 12 (Section 659.019, Government Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION1.Amends Chapter 651, Government Code, by adding Section 651.005, as follows:

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Sec.651.005.REDUCTIONS IN FORCE. Authorizes a state governmental entity undergoing a reorganization mandated by statute to institute a reduction in force as a direct result of the reorganization, notwithstanding a rule, personnel handbook, or policy of the entity to the contrary.

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SECTION2.Amends Subchapter B, Chapter 654, Government Code, by adding Section 654.0125, as follows:

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Sec.654.0125.EXEMPTION OF POSITIONS BY GOVERNOR. (a)Prohibits appropriated money from being used to pay the salary of a person in a position exempted from the position classification plan by the governor under Section 654.012(8)(A) (Exceptions From Position Classification Plan) unless the position is a bona fide new position established to accomplish duties related to programs or functions that were not anticipated, and for that reason not funded, under the General Appropriations Act.

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(b)Prohibits a new position from being created under Section 654.012(8)(A) for the sole purpose of adjusting the salary of an existing position.

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(c)Specifies that the governor's exemption of a position from the position classification plan under Section 654.012(8)(A) must contain a certification that the exemption is for a bona fide new position. Prohibits the Comptroller of Public Accounts (comptroller) from paying compensation for the position until formal notification of the action of the governor to exempt the position is filed with the classification officer and the Legislative Budget Board.

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(d)Authorizes a position exempted by the governor under Section 654.012(8)(A) in the first year of a state fiscal biennium to continue into the second year. Authorizes the salary rate established for the position to be adjusted for the second year of the biennium in the manner provided.

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SECTION3. AmendsSection 654.014, Government Code, to authorize each state agency or other state entity subject to this chapter to determine, at the time an individual is initially employed by the entity in a classified position, the individual's salary rate within the applicable salary group for the individual's classified position.

SECTION4.Amends Subchapter B, Chapter 654, Government Code, by adding Sections 654.0155 and 654.0156, as follows:

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Sec.654.0155.PERIODIC REVIEW OF POSITIONS. Requires each employing state entity subject to this chapter to review individual job assignments within the entity by the beginning of each state fiscal year, andauthorizes each entity to perform a monthly review of job assignments, to ensure that each position is properly classified.Requires the entity to report to the classification officer the results of the reviews and the method used to comply with this section. Requires a classification compliance audit to determine proper classification to be undertaken, if the classification officer determines the method used is inadequate.

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Sec.654.0156.RECLASSIFICATION. Authorizes an employing state entity subject to this chapter to reclassify a position to another title in the position classification planin response to a classification review, oras a result of a program reorganization by the administrative head of the employing state entity.Sets forth the purpose of a reclassification and provides that a reclassification takes effect at the beginning of a calendar month.

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SECTION5.Amends Subchapter B, Chapter 656, Government Code, by adding Section 656.026, as follows:

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Sec. 656.026. JOB NOTICE POSTING WAIVER. Provides that a state agency is not required to comply with the requirements of this subchapter or Subchapter A when transferring or reassigning an employee as part of a legislatively-mandated reorganization or merger.

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SECTION6.Amends Subsection (a), Section658.005, Government Code, to require the offices of a state agency to remain open during the noon hour each working day with at least one person on duty to accept calls, receive visitors, or transact business.

SECTION7.Amends Sections 658.001 and 658.006, Government Code, as follows:

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Sec.658.001.DEFINITIONS. Redefines “state agency” in this chapter to include an institution of higher education.

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Sec. 658.006. New title: STAGGERED WORKING HOURS. Authorizes normal working hours for employees of a state agency to be staggered for traffic regulation or public safety. Deletes “capital area in Austin” from title. Makes nonsubstantive changes.

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SECTION8. AmendsChapter658,Government Code, by adding Sections 658.008, 658.009, and 658.010, as follows:

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Sec.658.008.MEMBERS OF NATIONAL GUARD OR RESERVE. Requires each state agency, to facilitate participation in military duties by state employees, to adjust the work schedule of any employee who is a member of the Texas National Guard or the United States Armed Forces Reserve so that two of the employee's days off work each month coincide with two days of military duty to be performed by the employee .

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Sec.658.009.PARTTIME EMPLOYMENT. Authorizes a state agency to fill a regular fulltime position with one or more parttime employeeswithout regard to whether the position is subject to or exempt from the state's position classification plan, andsubject to Section 659.019 (Part-time and Hourly Employment).

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Sec.658.010.PLACE WHERE WORK PERFORMED. (a) Requires an employee of a state agency to, during normal office hours, conduct agency business only at the employee's regular or assigned temporary place of employment unless the employeeis traveling, orreceived prior written authorization from the administrative head of the employing state agency to perform work elsewhere.

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(b)Prohibits the employee's personal residence from being considered the employee's regular or assigned temporary place of employment without prior written authorization from the administrative head of the employing state agency.

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SECTION9. Amends Section 659.002, Government Code, by adding Subsection (d), to require the state to withhold money from salaries and wages paid to state officers and employees in accordance with applicable federal law, including federal law relating to withholding for purposes of the federal income tax. Requires the state to make any required employer contributions in accordance with applicable federal law. Requires the comptroller to make payments in accordance with this subsection.

SECTION10.Amends Subchapter A, Chapter 659, Government Code, by adding Sections 659.004, 659.005, and 659.006, as follows:

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Sec.659.004.PAYROLL AND PERSONNEL REPORTING. (a) Defines “state agency” for the purposes of this section.

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(b)Requires the comptroller, in consultation with the state auditor, to adopt rules that prescribe uniform procedures for payroll and personnel reporting for all state agencies and that are designed to:

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•facilitate the auditing of payrolls;

•facilitate a classification compliance audit under Chapter 654 (Position Classification);

•assure conformity with this chapter and the General Appropriations Act; and

•provide the legislative audit committee with current information on employment and wage rate practices in state government.

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Sec.659.005.WITNESS FEES; JURY SERVICE. Prohibits a deduction from being made from the salary or wages of a state employee because the employee is called for jury service, including a deduction for any fee or compensation the employee receives for the jury service.Prohibits a state officer or employee who appears as a witness in an official capacity in a judicial proceeding or legislative hearing from accepting or receiving a witness fee for the appearance. Provides that certain state officers or employees are entitled to receive any customary witness fees for the appearance. Authorizes certain state officers or employees to accept compensation for the appearance only if the persons are not also compensated by the state for the person's time in making the appearance and to accept reimbursement for travel expenses only if the expenses are not reimbursed by the state. Specifies that for purposes of this subsection, paid leave is not considered time compensated by the state.Authorizes a state officer or employee to receive reimbursement for travel and a per diem or reimbursement for expenses connected to an appearance in an official capacity as a witness in a judicial proceeding or legislative hearing only from the state or the judicial body, but not from both the state and the judicial body.

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Sec.659.006.ADJUSTMENT FOR INACCURATE PAYMENT. Requires the comptroller, by rule, to prescribe procedures for state agencies to follow in making adjustments to payrolls for the pay period immediately following the period in which an inaccurate payment or deduction is made or in which other error occurs.

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SECTION11.Amends the heading to Subchapter B, Chapter 659, Government Code, as follows:

SUBCHAPTER B. New title: SALARY AMOUNTS; OVERTIME AND

COMPENSATORY TIME

SECTION12.Amends Subchapter B, Chapter 659, Government Code, by adding Sections 659.015 through 659.021, as follows:

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Sec.659.015.OVERTIME COMPENSATION FOR EMPLOYEES SUBJECT TO FAIR LABOR STANDARDS ACT. (a)Applies this section only to certain state employees who are not legislative employees.

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(b)Entitles the employee to compensation for overtime as provided by federal law and this section. Provides that to the extent that this section and federal law prescribe a different rule for the same circumstance, federal law controls without regard to whether this section or federal law prescribes a stricter rule.

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(c)Entitles an employee who is required to work more than 40 hours in a workweek to compensation for the overtime hours in the manner provided.

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(d)Specifies that holidays or other paid leave taken during a workweek are not counted as hours worked in computing the number of overtime hours under Subsection (c) or (e).

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(e)Prohibits an employee from accumulating more than 240 hours of overtime credit that may be taken as compensatory leave under Subsection (c), except as otherwise provided by this subsection. Provides that an employee must be paid at the rate prescribed by Subsection (c) for the number of overtime hours the employee works that cause the employee to exceed the amount of overtime credit the employee may accumulate. Defines “overtime credit” for the purposes of this subsection.

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(f) Entitles the employee to compensatory time off at the rate of one hour off for each of the excess hours when an employee does not work more than 40 hours in a workweek but the number of hours worked plus the number of hours of holiday or other paid leave taken during the workweek exceeds 40 hours. Entitles the employee to compensatory time off at the rate of one hour off for each of the remaining hours in excess of 40, when an employee does work 40 or more hours in a workweek and in addition takes holiday or other paid leave during the workweek, and the total number of hours worked still exceeds 40 after subtracting the hours compensable under Subsections (c)(e). Prohibits the employee from accruing compensatory time for the week under this section when an employee does not work more than 40 hours in a workweek and the number of hours worked plus the number of hours of holiday or other paid leave taken during the week does not exceed 40 hours.

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(g)Provides that compensatory time off to which an employee is entitled under Subsection (f) must be taken during the 12month period following the end of the workweek in which the compensatory time was accrued or it lapses. Prohibits an employee from being paid for that compensatory time. Authorizes certain employees to be paid at the employee's regular rate of pay for that compensatory time if the employer determines that taking the compensatory time off would disrupt normal teaching, research, or other critical functions.

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(h)Provides that hospital, fire protection, and law enforcement personnel, including security personnel in correctional institutions, are governed by the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) provisions applicable to those employees, including the exceptions to the standard overtime computation for a workweek.

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Sec.659.016.OVERTIME COMPENSATION FOR EMPLOYEES NOT SUBJECT TO FAIR LABOR STANDARDS ACT; REDUCTIONS IN PAY. (a)Applies this section only to a state employee who is not subject to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 (Short Title) et seq.) and who is not a legislative employee.

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(b) Authorizes the employee to be allowed to accrue compensatory time for the number of hours that exceeds 40 hours, when the sum of hours worked plus holiday or other paid leave taken by an employee during a workweek exceeds 40 hours, and not otherwise.

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(c)Authorizes an employee who is exempt as an executive, professional, or administrative employee under 29 U.S.C. Section 213(a)(1) (Exemptions) to be allowed compensatory time off during the 12month period following the end of the workweek in which the time that exceeds 40 hours under Subsection (b) was accrued, at a rate not to exceed one hour of compensatory time off for each hour of time that exceeds 40 hours under Subsection (b) accrued.

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(d)Entitles certain exempt employees to receive full salary for any week in which the employee performs work without regard to the number of days and hours worked, in accordance to the specified provisions described in this subsection. Specifies that this is also subject to the general rule that an employee need not be paid for any workweek in which the employee performs no work.

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(e)Authorizes a deduction to be made from the salary of certain exempt employees, if:

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(1)the employee is not at work for a full day or longer for personal reasons other than sickness, accident, jury duty, attendance as a witness at a judicial proceeding, or temporary military leave;

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(2)the employee is not at work for a full day or longer because of sickness or disability, including sickness or disability covered by workers' compensation benefits, and the employee's paid sick leave or workers' compensation benefits have been exhausted;

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(3)the deduction is a penalty imposed for a violation of a significant safety rule relating to prevention of serious danger in the workplace to other persons, including other employees; or

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(4)in accordance with the special provisions applicable to executive, professional, or administrative employees of public agencies set forth in 29 C.F.R. Section 541.5d, the employee is not at work for less than one day for personal reasons or because of illness or injury and accrued leave is not used by the employee due to specified conditions.

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(f)Provides that, in accordance with 29 C.F.R. Section 541.5d, a deduction from the pay of an executive, professional, or administrative employee because of an absence from work caused by a furlough related to the budget does not affect the employee's status as an employee paid on a salary basis, except for any workweek in which the furlough occurs and for which the employee's pay is accordingly reduced.

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(g) Entitle the employee to reimbursement of the amount that should not have been deducted if a deduction is made from an employee's salary in violation of United States Department of Labor regulations.

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(h)Authorizes an employee who is not subject to certain provisions of the federal Fair Labor Standards Act of 1938, because the employee is a staff member, appointee, or immediate adviser of an elected officeholder to be allowed compensatory time off under the terms and conditions determined by the officeholder.

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(i)Prohibits an employee covered by this section from being paid for any unused compensatory time.

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Sec.659.017.OVERTIME COMPENSATION FOR LEGISLATIVE EMPLOYEES. Provides that overtime pay and compensatory time off for employees of the legislative branch, including employees of the lieutenant governor, are determinedfor employees of the house of representatives or the senate, by the presiding officer of the appropriate house of the legislature;for employees of an elected officeholder, by the employing officeholder; andfor employees of a legislative agency, by the administrative head of the agency, consistent with the requirements of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.).

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Sec.659.018.COMPENSATORY TIME: PLACE WHERE WORK PERFORMED. Prohibits an employee of a state agency as defined by Section 658.001(Definitions) from, for hours worked during any calendar week, accumulating compensatory time off under Section 659.015(f) or 659.016 to the extent that the hours are attributable to work performed at a location other than the employee's regular or temporarily assigned place of employment, except under circumstances specified in the General Appropriations Act. Prohibits the employee's personal residence from being considered the employee's regular or temporarily assigned place of employment for purposes of this section without prior written authorization from the administrative head of the employing state agency.

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Sec.659.019.PARTTIME AND HOURLY EMPLOYMENT.Provides that in computing the salary of a parttime or hourly employee, the rate of pay must be proportional to the rate authorized by the General Appropriations Act for fulltime employment in the same classified position, or if the position is not under the state's position classification plan, for fulltime employment in the applicable exempt position. Subjects a parttime employee to Subchapter K and to the leave without pay provisions of Section 659.085. Authorizes the comptroller to adopt rules to determine the hourly rate of an employee paid on an hourly basis.

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Sec.659.020.SALARY SUPPLEMENTATION. Prohibits certain state employees from receiving a salary supplement from any source unless a specific grant of authority to do so is provided by the General Appropriations Act or other law.

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Sec.659.021.ADMINISTRATIVE HEAD OF AGENCY. Prohibits the administrative head of a state agency as defined by Section 658.001 whose salary as administrative head is established by the General Appropriations Act from receiving a salary higher than that established salary, even if the administrative head performs duties assigned to a position title classified in the state's position classification plan that is assigned to a salary group that would pay a higher salary, unless the General Appropriations Act specifically provides that a higher salary may be received.