81R10250 KLA-F By: Coleman H.B. No. 2974 A BILL TO BE ENTITLED AN ACT relating to personnel, employment, and other human resources functions of the Health and Human Services Commission and health and human services agencies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 531.0055, Government Code, is amended by amending Subsections (e) and (f) and adding Subsections (f-1) and (f-2) to read as follows: (e) Notwithstanding any other law, the executive commissioner shall adopt rules and policies for the operation of and provision of health and human services by the health and human services agencies. In addition, the executive commissioner, as necessary to perform the functions described by Subsections (b), (c), and (d) in implementation of applicable policies established for an agency by the executive commissioner, shall: (1) subject to Subsection (f-1), manage and direct the operations of each health and human services agency; (2) supervise and direct the activities of each agency director; and (3) be responsible for the administrative supervision of the internal audit program for all health and human services agencies, including: (A) selecting the director of internal audit; (B) ensuring that the director of internal audit reports directly to the executive commissioner; and (C) ensuring the independence of the internal audit function. (f) Except as provided by Subsection (f-1), the [The] operational authority and responsibility of the executive commissioner for purposes of Subsection (e) at each health and human services agency includes authority over and responsibility for the: (1) management of the daily operations of the agency, including the organization and management of the agency and agency operating procedures; (2) allocation of resources within the agency, including use of federal funds received by the agency; (3) [personnel and employment policies; [(4)] contracting, purchasing, and related policies, subject to this chapter and other laws relating to contracting and purchasing by a state agency; (4) [(5)] information resources systems used by the agency; (5) [(6)] location of agency facilities; and (6) [(7)] coordination of agency activities with activities of other state agencies, including other health and human services agencies. (f-1) The executive commissioner has authority over and responsibility for personnel and employment policies and human resources functions at the commission, but does not have authority over or responsibility for those policies and functions with respect to the health and human services agencies, notwithstanding any other law. The commissioners of each of those agencies shall make recommendations to the executive commissioner regarding any personnel or employment policies with respect to which rulemaking is necessary, and the executive commissioner shall adopt rules to implement those recommendations. (f-2) The executive commissioner may not contract with a private entity to perform any human resources functions for the commission or the health and human services agencies. SECTION 2. Section 1001.052, Health and Safety Code, is amended by amending Subsection (b) and adding Subsection (e) to read as follows: (b) The [executive] commissioner shall prepare and the executive commissioner by rule shall adopt personnel standards as provided by Section 531.0055(f-1), Government Code. (e) The commissioner shall establish a human resources division within the department. The division is responsible for personnel, recruiting, hiring, and other human resources functions. The division shall assist the commissioner in developing policies and procedures related to recruitment, hiring, and other human resources functions that are in compliance with state and federal law. SECTION 3. Section 40.032, Human Resources Code, is amended by adding Subsections (h) and (i) to read as follows: (h) The commissioner shall prepare and the executive commissioner by rule shall adopt personnel standards as provided by Section 531.0055(f-1), Government Code. (i) The commissioner shall establish a human resources division within the department. The division is responsible for personnel, recruiting, hiring, and other human resources functions. The division shall assist the commissioner in developing policies and procedures related to recruitment, hiring, and other human resources functions that are in compliance with state and federal law. SECTION 4. Section 117.052, Human Resources Code, is amended by amending Subsection (b) and adding Subsection (e) to read as follows: (b) The [executive] commissioner shall prepare and the executive commissioner by rule shall adopt personnel standards as provided by Section 531.0055(f-1), Government Code. (e) The commissioner shall establish a human resources division within the department. The division is responsible for personnel, recruiting, hiring, and other human resources functions. The division shall assist the commissioner in developing policies and procedures related to recruitment, hiring, and other human resources functions that are in compliance with state and federal law. SECTION 5. Section 161.052, Human Resources Code, is amended by amending Subsection (b) and adding Subsection (e) to read as follows: (b) The [executive] commissioner shall prepare and the executive commissioner by rule shall adopt personnel standards as provided by Section 531.0055(f-1), Government Code. (e) The commissioner shall establish a human resources division within the department. The division is responsible for personnel, recruiting, hiring, and other human resources functions. The division shall assist the commissioner in developing policies and procedures related to recruitment, hiring, and other human resources functions that are in compliance with state and federal law. SECTION 6. On and after the effective date of this Act, the executive commissioner of the Health and Human Services Commission may not enter into or renew a contract with a private entity for the performance of personnel, employment, or other human resources functions for the commission or a health and human services agency, as defined by Section 531.001, Government Code. SECTION 7. A reference in law to the executive commissioner of the Health and Human Services Commission or to the commission with respect to a power, duty, function, or program related to personnel, recruiting, hiring, or other human resources functions related to a health and human services agency, as defined by Section 531.001, Government Code, means the agency to which the reference is related or the chief executive officer of that agency, as applicable. SECTION 8. On the effective date of this Act: (1) all powers, duties, functions, programs, and activities related to personnel, recruiting, hiring, or other human resources functions at a health and human services agency, as defined by Section 531.001, Government Code, transfer from the Health and Human Services Commission to that agency; (2) all property and records in the custody of the commission that relate to a transferred power, duty, function, program, or activity and all funds appropriated by the legislature for the power, duty, function, program, or activity, are transferred to that health and human services agency; and (3) a rule or form adopted by the executive commissioner of the Health and Human Services Commission that relates to the transferred power, duty, function, program, or activity is a rule or form applicable to that agency and remains in effect until modified by the executive commissioner as provided by Section 531.0055(f-1), Government Code, as added by this Act. SECTION 9. This Act takes effect September 1, 2009.