A BILL TO BE ENTITLED
AN ACT to establish a process for monitoring spans of control and organizational layers within state agencies, AS RECOMMENDED BY THE JOINT LEGISLATIVE PROGRAM EVALUATION OVERSIGHT COMMITTEE.
The General Assembly of North Carolina enacts:
SECTION 1.  Effective December 1, 2018, Chapter 126 of the General Statutes is amended by adding a new Article to read:
"Article 4A.
"Spans of Control.
"§ 126‑12.1.  Organization of State agencies; spans of control.
(a)	This Article applies to State agencies employing nonexempt employees subject to the provisions of this Chapter.
(b)	For position and job classification analyses conducted after January 1, 2019, the Office of State Human Resources shall incorporate spans of control and organizational layers as components of position and job classification analyses and document circumstances of the Office's actions that allow positions within agencies to not meet minimum span of control ratios of the position's job classification as established under G.S. 126‑12.3(8) and the justification for approving such an action.
"§ 126‑12.2.  Publication.
(a)	Each State agency shall publish on its Internet Web site, and update at least quarterly, an accurate organizational chart that meets or exceeds the requirements of the Office of State Human Resources.
(b)	The Office of State Human Resources shall collect at least semiannually the standardized organization charts of State agencies and shall display them on the Office's Internet Web site.
(c)	The Office of State Human Resources shall monitor compliance with this section.
"§ 126‑12.3.  Two‑year reporting.
By October 1, 2020, and then every two years thereafter, the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations, the Senate Appropriations Committee on General Government and Information Technology, the House Appropriations Committee on General Government, and the Fiscal Research Division on State agency spans of control and organizational layers. At a minimum, the report should include the following components:
(1)	Span of control and number of organizational layers for each agency.
(2)	Span of control by organizational layer for each agency.
(3)	Number and percentage of supervisors with narrow spans of control, defined as a ratio of 1:3 or fewer, for each agency.
(4)	A list of departments whose overall span of control decreases.
(5)	A list of departments whose overall number of layers increases.
(6)	Historical analyses from 2018 forward of each agency's average span of control and number of organizational layers.
(7)	Span of control for each job classification.
(8)	A recommended benchmark span of control for each job classification, and a revised statewide span of control benchmark, as appropriate.
(9)	A list of job classifications within each agency not meeting the recommended benchmark span of control for that job classification as established by subdivision (8) of this section.
(10)	Any other budgetary or managerial considerations deemed necessary."
SECTION 2.  By December 1, 2018, the Office of State Human Resources shall have completed the following actions and reported them to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division:
(1)	Developed a standard organizational layer nomenclature for use by State agencies building on the nomenclature specified in G.S. 143B‑11.
(2)	Adopted a policy to require State agencies to submit any changes in supervisory reporting structures to the Office of the State Controller within five days of the effective date of the change.
(3)	Adopted a standardized format for organizational charts for State agencies subject to this Article.
(4)	Developed criteria‑based technical leadership tracks as an alternative way to reward and retain employees, as an alternative to supervisory promotions, and provide a plan for implementing these tracks and any necessary legislative action.
SECTION 3.  This act is effective when it becomes law.