1-1  By:  Leedom                                            S.B. No. 128
    1-2        (In the Senate - Filed January 15, 1993; January 19, 1993,
    1-3  read first time and referred to Committee on Finance;
    1-4  March 18, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 12, Nays 0; March 18, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Montford           x                               
   1-10        Turner             x                               
   1-11        Armbrister         x                               
   1-12        Barrientos         x                               
   1-13        Bivins             x                               
   1-14        Ellis              x                               
   1-15        Haley              x                               
   1-16        Moncrief           x                               
   1-17        Parker                                        x    
   1-18        Ratliff            x                               
   1-19        Sims               x                               
   1-20        Truan              x                               
   1-21        Zaffirini          x                               
   1-22  COMMITTEE SUBSTITUTE FOR S.B. No. 128                   By:  Turner
   1-23                         A BILL TO BE ENTITLED
   1-24                                AN ACT
   1-25  relating to the Texas Incentive and Productivity Commission.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  Subsection (e), Section 2.002, Texas Incentive
   1-28  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
   1-29  Statutes), is amended to read as follows:
   1-30        (e)  An employee whose suggestion results in a net annual
   1-31  savings or increase in revenues, including savings or increased
   1-32  revenues that result from increased productivity, of $100 or more
   1-33  is eligible for a bonus of 10 percent of the net savings or revenue
   1-34  increase, up to a maximum award of $5,000.  If the suggestion is
   1-35  submitted by more than one employee, the bonus shall be divided
   1-36  among the employees.  An employee whose suggestion results in a net
   1-37  annual savings or increase in revenues of less than $100 is not
   1-38  eligible for a bonus but is eligible for a certificate of
   1-39  appreciation.
   1-40        SECTION 2.  Section 2.004, Texas Incentive and Productivity
   1-41  Act (Article 6252-29a, Vernon's Texas Civil Statutes), is amended
   1-42  to read as follows:
   1-43        Sec. 2.004.  EMPLOYEE ELIGIBILITY.  (a)  Each state employee
   1-44  is eligible to participate in the program except an employee<:>
   1-45              <(1)  who has authority to implement the suggestion
   1-46  being made;>
   1-47              <(2)>  who is on an unpaid leave of absence<;>
   1-48              <(3)  whose job description includes responsibility for
   1-49  cost analysis, efficiency analysis, savings implementation, or
   1-50  other related programs within the employee's agency;>
   1-51              <(4)  involved in or who has access to agency research
   1-52  and development programs, if that information is used as the basis
   1-53  of the suggestion; or>
   1-54              <(5)  whose job description or routine job  duties
   1-55  include developing the type of change in the operations of that
   1-56  agency that is recommended by the suggestion>.
   1-57        (b)  An elected or appointed agency official is not eligible
   1-58  to participate in the program.
   1-59        (c)  The commission shall establish rules governing the
   1-60  qualifications of other state employees.
   1-61        SECTION 3.  Subdivision (3), Section 3.001, Texas Incentive
   1-62  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
   1-63  Statutes), is amended to read as follows:
   1-64              (3)  "Division" means a unit of a state agency that:
   1-65                    (A)  has an identifiable self-contained budget;
   1-66  <or>
   1-67                    (B)  maintains its financial records under an
   1-68  accounting system that permits the accurate identification of the
    2-1  expenditures and receipts of the unit; or
    2-2                    (C)  consists of a group of employees identified
    2-3  by the agency and approved by the commission.
    2-4        SECTION 4.  Subsection (b), Section 3.002, Texas Incentive
    2-5  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
    2-6  Statutes), is amended to read as follows:
    2-7        (b)  The commission shall act on an agency's plan as early as
    2-8  practicable after receiving it.  The commission may return any plan
    2-9  to the executive director who submits it to request additional
   2-10  information or clarification of details relating to the plan.  The
   2-11  commission must approve an agency plan before a state agency may
   2-12  apply for a productivity bonus for the agency or a division of the
   2-13  agency.  The commission shall inform the executive director in
   2-14  writing that the plan is approved or rejected not later than the
   2-15  30th day after the open meeting at which the plan is considered
   2-16  <date the plan is received>.
   2-17        SECTION 5.  Subsection (c), Section 3.004, Texas Incentive
   2-18  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
   2-19  Statutes), is amended to read as follows:
   2-20        (c)  The commission shall consider as a legitimate savings a
   2-21  reduction in expenditures made possible by:
   2-22              (1)  reductions in overtime for eligible employees;
   2-23              (2)  reductions in <elimination of> consultant fees;
   2-24              (3)  reductions in <elimination of> budgeted positions;
   2-25              (4)  reductions in <elimination of unnecessary> travel;
   2-26              (5)  reductions in <elimination of unnecessary>
   2-27  printing and mailing;
   2-28              (6)  reductions in <elimination of> payments for
   2-29  <unnecessary> advertising, membership dues, subscriptions, and
   2-30  other nonessential outlays of state agency or division funds;
   2-31              (7)  increased efficiency in use of energy;
   2-32              (8)  improved office procedures and systems; and
   2-33              (9)  any other practice or device that the commission
   2-34  determines has resulted in verifiable savings.
   2-35        SECTION 6.  Subsection (b), Section 3.007, Texas Incentive
   2-36  and Productivity Act (Article 6252-29a, Vernon's Texas Civil
   2-37  Statutes), is amended to read as follows:
   2-38        (b)  From the funds in the state agency's or division's
   2-39  productivity bonus account, the commission shall award to the
   2-40  eligible employees of the agency or division an amount not to
   2-41  exceed 25 percent of the amount in that account.  The awarded
   2-42  amount shall be divided and distributed in equal shares to the
   2-43  eligible current employees of the agency or division, except that
   2-44  those employees who worked part-time or less than 12 months of the
   2-45  year shall receive only a pro rata share based on the fraction of
   2-46  the year worked.  The commission may grant an agency's or a
   2-47  division's request not to pay bonuses if a negligible reduction in
   2-48  cost has occurred <distributed in equal shares to the eligible
   2-49  current employees of the agency or division>.  A bonus made to any
   2-50  individual employee may not exceed $1,000.  <An eligible employee
   2-51  who worked in the agency or division for less than the full fiscal
   2-52  year or on a part-time basis is entitled to a pro rata share based
   2-53  on the fraction of the fiscal year and the average fraction of the
   2-54  work week that the employee worked in the agency or division.>  An
   2-55  eligible employee under this section is an employee who:
   2-56              (1)  is an hourly, part-time, or temporary employee;
   2-57              (2)  is a classified employee under the Position
   2-58  Classification Act of 1961 (Article 6252-11, Vernon's Texas Civil
   2-59  Statutes); or
   2-60              (3)  performs functions that are equivalent to
   2-61  functions performed by a classified employee in other state
   2-62  agencies.
   2-63        SECTION 7.  The importance of this legislation and the
   2-64  crowded condition of the calendars in both houses create an
   2-65  emergency and an imperative public necessity that the
   2-66  constitutional rule requiring bills to be read on three several
   2-67  days in each house be suspended, and this rule is hereby suspended,
   2-68  and that this Act take effect and be in force from and after its
   2-69  passage, and it is so enacted.
   2-70                               * * * * *
    3-1                                                         Austin,
    3-2  Texas
    3-3                                                         March 18, 1993
    3-4  Hon. Bob Bullock
    3-5  President of the Senate
    3-6  Sir:
    3-7  We, your Committee on Finance to which was referred S.B. No. 128,
    3-8  have had the same under consideration, and I am instructed to
    3-9  report it back to the Senate with the recommendation that it do not
   3-10  pass, but that the Committee Substitute adopted in lieu thereof do
   3-11  pass and be printed.
   3-12                                                         Montford,
   3-13  Chairman
   3-14                               * * * * *
   3-15                               WITNESSES
   3-16                                                  FOR   AGAINST  ON
   3-17  ___________________________________________________________________
   3-18  Name:  Elaine Powell, Executive Director                       x
   3-19  Representing:  Tx Incentive & Productvty Cncl
   3-20  City:  Austin
   3-21  -------------------------------------------------------------------