BILL ANALYSIS S.B. 1116 By: Leedom (Combs) 05-17-95 Committee Report (Unamended) BACKGROUND Savings resulting from suggestions to the State Employee Incentive Program are divided among the Texas Incentive and Productivity Commission (commission) for administrative purposes, the employee making the suggestion, the agency and the originating fund. Some agencies view this as a disincentive to participate because more than half of the funds are transferred from the agency's existing appropriation. Under current law, no provision is made for on-line or facsimile transmission of suggestions or follow-up communications. Electronic filing is also made impossible by the current requirement that a submission include the handwritten signature of the employee filing the suggestion. Employees may not associate the term "State Employee Incentive Program" with the "suggestion" program they may have learned about from their employing agency. Current law, however requires the use of that title. The commission must review, in separate open meetings, both the agency's plan submission and the application for bonuses. This process is often redundant for both the agency and the commission because the submission and application contain much of the same information. PURPOSE As engrossed, S.B. 1116 creates and sets forth regulations for state agency reinvestment accounts, from which employee bonuses, employee training or certain types capital expenditures may be appropriated. The bill provides the commission with greater flexibility in naming the program and in using rulemaking authority to create a more efficient program. The commission would also be allowed to set up procedures for on-line or facsimile filings. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Texas Incentive and Productivity Commission in SECTION 2 (Section 2108.022, Government Code), SECTION 4 (21.08.102, Government Code), SECTION 5 (Section 2108.103 Government Code), and SECTION 6 (Section 2108.104, Government Code) of the bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 2108, Subchapter B, Government Code, by adding Sections 2108.0221 and 2108.0222. Section 2108.221 would create a reinvestment account for each state agency. Money in a reinvestment account would be appropriated to the agency for paying bonuses awarded to an employee by the commission, to the agency for employee training, or for capital expenditures made by or for the agency to increase productivity at the agency. Section 2108.0222 would provide funding for the commission through a transfer from each agency's appropriation. The transfer amount is to be calculated by multiplying the number of full-time equivalent employees of the agency by an amount set in the General Appropriations Act. SECTION 2. Amends Section 2108.022, Government Code, by adding Subsections (c) and (d). Subsection (c) would allow the commission to refer to the incentive program by a different name or to authorize a state agency to refer to the program by a different name. Subsection (d) would authorize on-line and facsimile communication between the commission and a state agency, and would allow such communications to be filed without the employee's signature. SECTION 3. Amends Section 2108.037, Government Code, Subsections (b) and (c), to provide that the comptroller shall transfer an amount certified by the commission under Subsection (a) to the affected agency's reinvestment account, rather than allotting portions to various accounts as specified in prior law. Subsection (c) would require that an employee receiving a commission-granted bonus shall be paid the bonus by the agency. If the suggestion was made by the employee of another agency, the comptroller is to transfer the amount of the bonus from the affected agency's reinvestment account to the appropriate fund or account to the credit of the employing agency, which shall pay the bonus. SECTION 4. Amends Section 2108.102, Government Code, by adding Subsection (e) to allow the commission to adopt rules to make the process as efficient as possible. SECTION 5. Amends Section 2108.103, Government Code, by adding Subsection (c) to allow the commission to adopt rules to make the process as efficient as possible. SECTION 6. Amends Section 2108.104, Government Code, by adding Subsection (d) to allow the commission to adopt rules to make the process as efficient as possible. SECTION 7. Repeals Section 2108.038, Government Code. SECTION 8. Re-creates the productivity bonus account in the general revenue fund for the purposes provided in Subchapter C, Chapter 2108, Government Code. SECTION 9. Effective date: September 1, 1995. SECTION 10. Emergency clause. SUMMARY OF COMMITTEE ACTION S.B. 1116 was heard in a public hearing at 8:00 a.m., May, 17, 1995. Chairman Junell laid out the bill. Elaine Powell, of the Texas Incentive and Productivity Commission, testified on the bill. No one testified for or against the bill. Representative Swinford moved that the bill be reported favorably to the House Committee on Calendars. There being no objection, the bill was reported favorably by a vote of 17 aye, 0 no, 0 PNV, and 10 absent.