HBA-DMH S.B. 1488 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1488
By: Haywood
Appropriations
5/8/2001
Engrossed



BACKGROUND AND PURPOSE 

Many private companies and federal agencies have adopted
pay-for-performance (PFP) compensation systems.  PFP systems are designed
to increase productivity by recognizing the best performers and rewarding
them accordingly.  PFP furthers performance-based management by linking the
goals of the organization to employee performance measures. Through PFP
planning, individuals participate cooperatively with the agency to meet the
goals in the agency's strategic plan of operation.  Senate Bill 1488
requires each state agency to adopt policies to ensure that an employee's
performance expectations are linked to the goals in the agency's strategic
plan of operation and establishes a task force to evaluate employee
compensation systems. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 1488 amends the Government Code to require each state agency to
adopt policies to ensure that an employee's performance expectations are
linked to the goals in the agency's strategic plan of operation.  The bill
establishes a task force to evaluate employee compensation systems and  
requires the task force to:

_evaluate the strengths and weaknesses of the current merit increase system
for compensating employees;  

_identify statewide opportunities for funding pay-for-performance policies
and practices to supplement current efforts at recruiting and retaining
employees; and  

_provide recommendations on those matters to the legislature not later than
January 1, 2003. 

The task force is composed of following appointees by the governor: a
representative of the governor's office; three representatives from state
agencies that employ fewer that 100 full-time employees; three
representative from state agencies that employ at least 100 but fewer than
1,000 full-time employees; and three representative from state agencies
that employ 1,000 or more full-time employees.  In addition, the state
auditor appoints a representative of the state auditor's office who is
required to sever as the presiding officer of the task force; the
comptroller of public accounts appoints a representative of the
comptroller's office; and the director of the Legislative Budget Board
appoints a representative of the Legislative Budget Board. 

EFFECTIVE DATE

September 1, 2001.