BILL ANALYSIS


                                                        S.B. 1116
                                                       By: Leedom
                                                    State Affairs
                                                          4-13-95
                                       Committee Report (Amended)
BACKGROUND

Savings resulting from suggestions to the State Employee Incentive
Program (SEIP) are split between the Texas Incentive and
Productivity Commission (commission) for administrative purposes,
the suggester, the agency, and the originating fund.  Some agencies
view this as a disincentive to participate because more than half
of the funds saved are transferred from the agency's existing
appropriation. 

A suggestion is ineligible if it does not contain the suggester's
handwritten signature.  Many agencies have on-line capabilities
which would expedite the process by having some or all of the
process conducted via electronic transmission.  

Many employees do not associate the term "State Employee Incentive
Program" with their "suggestion" program because the name is not
customized to the agency's needs.

The commission must review, in separate open meetings, both the
agency's plan submission and 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 proposed, S.B. 1116 creates and sets forth regulations for a
state agency reinvestment account to be established for each agency
to be appropriated for employee bonuses, training, or capital
expenditures to increase productivity.  

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 (Section 2108.102,
Government Code), SECTION 5 (Section 2108.103, Government Code),
and in SECTION 6 (Section 2108.104, Government Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 2108B, Government Code, by adding
Sections 2108.0221 and 2108.0222, as follows:

     Sec. 2108.0221.  STATE AGENCY REINVESTMENT ACCOUNTS.  (a)
     Requires the comptroller to create a reinvestment account for
     each state agency.
     
     (b) Authorizes the money in a state agency's reinvestment
       account to be appropriated only to the agency for the
       purpose of paying agency employee bonuses or training or to
       the agency or another entity for capital expenditures made
       by or for the agency that may reasonably be expected to
       increase productivity.
     Sec. 2108.0222.  MONEY FOR OPERATION OF THIS SUBCHAPTER.  (a)
     Requires the legislature to appropriate money for the
     operation of the Texas Incentive and Productivity Commission
     (commission) by providing that each state agency shall pay an
     amount of money to the commission out of the agency's
     appropriation.  Sets forth the procedure for computing the
     amount paid to the commission.
     
     (b) Requires each state agency's payment to be made to the
       commission in the manner prescribed by the General
       Appropriations Act.
       
       (c) Provides that the number of full-time equivalent
       employees is computed as prescribed by Section 2052.102.
SECTION 2. Amends Section 2108.022, Government Code, by adding
Subsections (c) and (d), as follows:

     (c) Authorizes the commission to refer to the incentive
     program by a different name and to authorize a state agency to
     refer to the program by a different name.
     
     (d) Authorizes the commission, by rule, to adopt procedures to
     allow communications between the commission and a state agency
     by facsimile or on-line transmission of information. 
     Authorizes the commission to allow an employee suggestion to
     be transmitted on-line to the commission, and the suggestion
     transmitted on-line is not required to be signed by the
     employee.
SECTION 3. Amends Sections 2108.037(b) and (c), Government Code,
as follows:

     (b) Requires the comptroller to transfer the amount certified
     under Subsection (a) to the affected agency's reinvestment
     account, rather than requiring different portions to be
     transferred to different accounts.
     
     (c) Requires the state agency that employs an employee
     receiving a bonus to pay the bonus.  Requires the comptroller
     to transfer the amount of the bonus from the reinvestment
     account of the affected agency to an appropriate fund or
     account to the credit of the employing agency to pay the bonus
     if the agency implemented a suggestion made by an eligible
     employee who is employed by another state agency.  Makes
     conforming changes.
SECTION 4. Amends Section 2108.102, Government Code, by adding
Subsection (e), to authorize the commission to adopt rules to make
the approval and clarification process as efficient as possible.

SECTION 5. Amends Section 2108.103, Government Code, to authorize
the commission to adopt rules to make the application process as
efficient as possible.

SECTION 6. Amends Section 2108.104, Government Code, to authorize
the commission to adopt rules to make the process of determining
whether to make an award as efficient as possible.

SECTION 7. Repealer:  Section 2108.038, Government Code (Special
Fund).

SECTION 8. Re-creates the productivity bonus fund account as an
account in the general revenue fund for the purposes designated in
Chapter 2108C, Government Code.

SECTION 9. Effective date: September 1, 1995.

SECTION 10.    Emergency clause.