By Maxey                                              H.B. No. 1161
       74R2426 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the Texas Incentive and Productivity Commission, the
    1-3  state employee incentive program, and the productivity bonus
    1-4  program.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter A, Chapter 2108, Government Code, is
    1-7  amended by adding Sections 2108.008 and 2108.009 to read as
    1-8  follows:
    1-9        Sec. 2108.008.  STATE AGENCY REINVESTMENT ACCOUNTS.  (a)  The
   1-10  comptroller shall create a reinvestment account for each state
   1-11  agency that is eligible to participate in the state employee
   1-12  incentive program or the productivity bonus program.
   1-13        (b)  Money in a state agency's reinvestment account may be
   1-14  appropriated only:
   1-15              (1)  to the commission for the purpose of paying
   1-16  bonuses granted by the commission under Subchapter B to an eligible
   1-17  employee of the agency;
   1-18              (2)  to the agency for the purpose of training the
   1-19  agency's employees; or
   1-20              (3)  to the agency or another appropriate entity for
   1-21  the purpose of capital expenditures made by or for the agency that
   1-22  may reasonably be expected to increase productivity at the agency.
   1-23        Sec. 2108.009.  MONEY FOR OPERATION OF COMMISSION.  (a)  The
   1-24  legislature shall appropriate money for the operation of the
    2-1  commission by providing that each state agency that is eligible to
    2-2  participate in the state employee incentive program or the
    2-3  productivity bonus program shall pay an amount of money to the
    2-4  commission out of the eligible agency's appropriation.  The amount
    2-5  paid to the commission out of each eligible agency's appropriation
    2-6  is computed by multiplying an amount set in the General
    2-7  Appropriations Act times the number of full-time equivalent
    2-8  employees employed by the eligible agency.
    2-9        (b)  Each eligible state agency's payment shall be made to
   2-10  the commission in the manner prescribed by the General
   2-11  Appropriations Act.
   2-12        (c)  The legislature may set in the General Appropriations
   2-13  Act a smaller amount per full-time equivalent employee for a state
   2-14  agency that is eligible to participate in the state employee
   2-15  incentive program or the productivity bonus program but not in both
   2-16  programs.
   2-17        (d)  Under this section, the number of full-time equivalent
   2-18  employees is computed as prescribed by Section 2052.102.
   2-19        SECTION 2.  Section 2108.023(d), Government Code, is amended
   2-20  to read as follows:
   2-21        (d)  An employee is eligible for a bonus of 10 percent of up
   2-22  to the first $50,000 in net savings or revenue increases, plus five
   2-23  percent of up to the next $50,000 in net savings or revenue
   2-24  increases, plus one percent of any remaining net savings or revenue
   2-25  increases <not to exceed an award of $5,000>, if the employee's
   2-26  suggestion results in savings or increased revenues, including
   2-27  savings or increased revenues that result from increased
    3-1  productivity, that:
    3-2              (1)  can be computed using a cost-benefit analysis; and
    3-3              (2)  equal or exceed $100 after implementation costs.
    3-4        SECTION 3.  Sections 2108.037(b) and (c), Government Code,
    3-5  are amended to read as follows:
    3-6        (b)  The comptroller shall transfer the amount certified
    3-7  under Subsection (a) <as follows:>
    3-8              <(1)  40 percent to the fund from which the original
    3-9  appropriation> to the affected agency's reinvestment account <fund
   3-10  was made;>
   3-11              <(2)  40 percent to an appropriate fund from which the
   3-12  affected agency may award merit pay increases to individuals in the
   3-13  agency; and>
   3-14              <(3)  20 percent to the special fund established for
   3-15  the commission under Section 2108.038>.
   3-16        (c)  If increased productivity attributable to an implemented
   3-17  suggestion results in savings or increased revenues that can be
   3-18  computed as provided by Section 2108.023(c) but that will not
   3-19  permit the affected agency to transfer or to have an unexpended
   3-20  balance of appropriated money, the commission and the affected
   3-21  agency shall certify the amount of actual or projected savings or
   3-22  increased revenues that are attributable to the suggestion, and the
   3-23  comptroller shall transfer 20 percent of that amount from a fund
   3-24  affected by the savings or increased revenues to the affected
   3-25  agency's reinvestment account <special fund established under
   3-26  Section 2108.038>.
   3-27        SECTION 4.  Subchapter B, Chapter 2108, Government Code, is
    4-1  amended by adding Section 2108.040 to read as follows:
    4-2        Sec. 2108.040.  NUMBER OF EMPLOYEE SUGGESTIONS AS PERFORMANCE
    4-3  MEASURE.  A state agency shall include in its legislative
    4-4  appropriation request, in the manner prescribed by the Legislative
    4-5  Budget Board, a proposed performance measure on the number of
    4-6  employee suggestions that should be made by the agency's employees
    4-7  and the number of employee suggestions that should be finally
    4-8  adopted by the agency during the biennium.
    4-9        SECTION 5.  Section 2108.107, Government Code, is amended to
   4-10  read as follows:
   4-11        Sec. 2108.107.  Award to State Agency or Division.  (a)  If
   4-12  the commission awards a productivity bonus to a state agency or
   4-13  division of a state agency, the balance in the agency's or
   4-14  division's productivity bonus account, as appropriate, shall be
   4-15  transferred to the agency's reinvestment account.
   4-16        (b)  If the commission decides not to award a productivity
   4-17  bonus to a state agency or division out of money that has been
   4-18  transferred to the agency's or division's productivity bonus
   4-19  account under Section 2108.109(c), the commission shall certify
   4-20  that fact to the comptroller, and the amount in the account is
   4-21  transferred from the account and <distributed as follows:>
   4-22              <(1)  one-third shall be appropriated to the agency for
   4-23  use by the agency's administration to promote agency productivity
   4-24  during the subsequent fiscal year; and>
   4-25              <(2)  two-thirds> shall be credited to the fund from
   4-26  which the original agency or division appropriation was made.
   4-27        SECTION 6.  Section 2108.109, Government Code, is amended to
    5-1  read as follows:
    5-2        Sec. 2108.109.  PRODUCTIVITY BONUS FUND ACCOUNT; AGENCY AND
    5-3  DIVISION ACCOUNTS.  (a)  The productivity bonus fund account is in
    5-4  the general revenue fund in the state treasury.  Money in the
    5-5  account <fund> may be used for payment of bonuses under this
    5-6  subchapter and may be appropriated only as provided by this
    5-7  subchapter.
    5-8        (b)  The state treasurer shall create in the productivity
    5-9  bonus fund account a productivity bonus account for each state
   5-10  agency or division participating in the productivity bonus program
   5-11  <and an account for the commission>.
   5-12        (c)  During each fiscal year the executive director of an
   5-13  eligible agency shall monitor agency or division activities and
   5-14  estimate the savings resulting from increased economy and
   5-15  efficiency.  At the end of the fiscal year the executive director
   5-16  shall certify the amount of savings to the comptroller.  The
   5-17  comptroller shall transfer <three-fourths of> that amount from the
   5-18  appropriation of the state agency to the agency's or division's
   5-19  productivity bonus account <and one-fourth of that amount from the
   5-20  appropriation of the state agency to the commission's account.>
   5-21        <(d)  The commission may use the amount in its account to
   5-22  administer this chapter>.
   5-23        SECTION 7.  Section 2108.038, Government Code, is repealed.
   5-24        SECTION 8.  The productivity bonus fund account is recreated
   5-25  as an account in the general revenue fund for the purposes
   5-26  designated in Subchapter C, Chapter 2108, Government Code.
   5-27        SECTION 9.  This Act takes effect September 1, 1995.
    6-1        SECTION 10.  The importance of this legislation and the
    6-2  crowded condition of the calendars in both houses create an
    6-3  emergency and an imperative public necessity that the
    6-4  constitutional rule requiring bills to be read on three several
    6-5  days in each house be suspended, and this rule is hereby suspended.