By Combs                                              H.B. No. 2721
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the Texas Incentive and Productivity Commission.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subsection (e), Section 2.002, Texas Incentive
    1-5  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
    1-6  Statutes), is amended to read as follows:
    1-7        (e)  An employee whose suggestion results in a net annual
    1-8  savings or increase in revenues, including savings or increased
    1-9  revenues that result from increased productivity, of $100 or more
   1-10  is eligible for a bonus of 10 percent of the net saving or revenue
   1-11  increase, up to a maximum award of $5,000. If the suggestion is
   1-12  submitted by more than one employee, the bonus shall be divided
   1-13  among the employees.  An employee whose suggestion results in a net
   1-14  annual savings or increase in revenues of less than $100 is not
   1-15  eligible for a bonus but is eligible for a certificate of
   1-16  appreciation.
   1-17        SECTION 2.  Section 2.004, Texas Incentive and Productivity
   1-18  Act (Article 6252-29a, Vernon's Texas Civil Statutes), is amended
   1-19  to read as follows:
   1-20        Sec. 2.004.  Employee eligibility.  (a)  Each state employee
   1-21  is eligible to participate in the program except an employee<:>
   1-22              <(1)  who has authority to implement the suggestion
   1-23  being made;>
    2-1              <(2)>  who is on an unpaid leave of absence<;>
    2-2              <(3)  whose job description includes responsibility for
    2-3  cost analysis, efficiency analysis, savings implementation, or
    2-4  other related programs within the employee's agency;>
    2-5              <(4)  involved in or who has access to agency research
    2-6  and development programs, if that information is used as the basis
    2-7  of the suggestion; or>
    2-8              <(5)  whose job description or routine job duties
    2-9  include developing the type of change in the operations of that
   2-10  agency that is recommended by the suggestion>.
   2-11        (b)  An elected or appointed agency official is not eligible
   2-12  to participate in the program.
   2-13        (c)  The commission shall establish rules governing the
   2-14  qualifications of other state employees.
   2-15        SECTION 3.  Subsection (3), Section 3.001, Texas Incentive
   2-16  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
   2-17  Statutes), is amended by adding Paragraph (C) to read as follows:
   2-18              (3)  "Division" means a unit of a state agency that:
   2-19                    (A)  has an identifiable self-contained budget;
   2-20  <or>
   2-21                    (B)  maintains its financial records under an
   2-22  accounting system that permits the accurate identification of the
   2-23  expenditures and receipts of the unit; or
   2-24                    (C)  consists of a group of employees identified
   2-25  by the agency and approved by the commission.
    3-1        SECTION 4.  Subsection (b), Section 3.002, Texas Incentive
    3-2  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
    3-3  Statutes), is amended to read as follows:
    3-4        (b)  The commission shall act on an agency's plan as early as
    3-5  practicable after receiving it.  The commission may return any plan
    3-6  to the executive director who submits it to request additional
    3-7  information or clarification of details relating to the plan.  The
    3-8  commission must approve an agency plan before a state agency may
    3-9  apply for a productivity bonus for the agency or a division of the
   3-10  agency.  The commission shall inform the executive director in
   3-11  writing that the plan is approved or rejected not later than the
   3-12  30th day of the open meeting at which the plan is considered <after
   3-13  the date the plan is received>.
   3-14        SECTION 5.  Subsection (c), Section 3.004, Texas Incentive
   3-15  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
   3-16  Statutes) is amended to read as follows:
   3-17        (c)  The commission shall consider as a legitimate savings a
   3-18  reduction in expenditures made possible by:
   3-19              (1)  reductions in overtime for eligible employees;
   3-20              (2)  reductions in <elimination of> consultant fees;
   3-21              (3)  reductions in <elimination of>  budgeted
   3-22  positions;
   3-23              (4)  reductions in <elimination of unnecessary> travel;
   3-24              (5)  reductions in <elimination of unnecessary>
   3-25  printing and mailing;
    4-1              (6)  reductions in <elimination of> payments for
    4-2  <unnecessary> advertising, membership dues, subscriptions, and
    4-3  other nonessential outlays of state agency or division funds;
    4-4              (7)  increased efficiency in use of energy;
    4-5              (8)  improved office procedures and systems; and
    4-6              (9)  any other practice or device that the commission
    4-7  determines has resulted in verifiable savings.
    4-8        SECTION 6.  Subsection (b), Section 3.007, Texas Incentive
    4-9  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
   4-10  Statutes), is amended to read as follows:
   4-11        (b)  From the funds in the state agency's or division's
   4-12  productivity bonus account, the commission shall award to the
   4-13  eligible employees of the agency or division an amount not to
   4-14  exceed 25 percent of the amount in that account.  The awarded
   4-15  amount shall be divided and distributed in equal shares to the
   4-16  eligible current employees of the agency or division, except that
   4-17  those employees who worked part-time or less than twelve months of
   4-18  the year shall receive only a pro rata share based on the fraction
   4-19  of the year worked.  The commission may grant an agency or
   4-20  division's request not to pay bonuses if a negligible reduction in
   4-21  cost has occurred <distributed in equal share to the eligible
   4-22  current employees of the agency or division>.  A bonus made to any
   4-23  individual employee may not exceed $1,000.  <An eligible employee
   4-24  who worked in the agency or division for less than the full fiscal
   4-25  year or on a part-time basis is entitled to a pro rata share based
    5-1  on the fraction of the fiscal year and the average fraction of the
    5-2  work week that the employee worked in the agency or division.>  An
    5-3  eligible employee under this section is an employee who:
    5-4              (1)  is an hourly, part-time, or temporary employee;
    5-5              (2)  is a classified employee under the Position
    5-6  Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
    5-7  Statutes); or
    5-8              (3)  performs functions that are equivalent to
    5-9  functions performed by a classified employee in other state
   5-10  agencies.
   5-11        SECTION 7.  The importance of this legislation and the
   5-12  crowded condition of the calendars in both houses create an
   5-13  emergency and an imperative public necessity that the
   5-14  constitutional rule requiring bills to be read on three several
   5-15  days in each house be suspended, and this rule is hereby suspended,
   5-16  and that this Act take effect and be in force from and after its
   5-17  passage, and it is so enacted.