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.