By Junell                                             H.B. No. 3051
       74R6369 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to abolishing the State Employee Incentive Commission and
    1-3  the productivity bonus program and transferring responsibility for
    1-4  the state employee incentive program to the governor's office.
    1-6        SECTION 1.  The chapter heading for Chapter 2108, Government
    1-7  Code, is amended to read as follows:
    1-9                       <AND AGENCY PRODUCTIVITY>
   1-10        SECTION 2.  Subchapter B, Chapter 2108, Government Code, is
   1-11  amended to read as follows:
   1-13        Sec. 2108.001 <2108.021>.  DEFINITIONS.  In this chapter
   1-14  <subchapter>:
   1-15              (1)  "Agency coordinator" means a state employee who is
   1-16  designated by the executive director of the employee's agency to
   1-17  act as the liaison for purposes of this chapter between that agency
   1-18  and the governor's office <commission>.
   1-19              (2)  "Award" means a bonus or certificate of
   1-20  appreciation.
   1-21              (3)  "Bonus" means a monetary award that is granted to
   1-22  a state employee in payment for an employee suggestion.
   1-23              (4)  "Certificate of appreciation" means a nonmonetary
   1-24  award that is granted to a state employee in recognition of an
    2-1  employee suggestion.
    2-2              (5)  "Incentive program" means the state employee
    2-3  incentive program.
    2-4              (6)  "State agency" means a department, commission,
    2-5  board, office, or other agency in the executive or judicial branch
    2-6  of government that is created under the constitution or a statute
    2-7  of this state.
    2-8              (7)  "State employee" means an employee of a state
    2-9  agency and does not include an elected or appointed agency
   2-10  official.
   2-11        Sec. 2108.002 <2108.022>.  STATE EMPLOYEE INCENTIVE PROGRAM.
   2-12  (a)  The state employee incentive program is administered by the
   2-13  governor's office.
   2-14        (b)  The purposes of the state employee incentive program are
   2-15  to:
   2-16              (1)  reduce state expenditures, increase state
   2-17  revenues, and improve the quality of state services; and
   2-18              (2)  recognize the contributions made by certain state
   2-19  employees in achieving the goals described in Subdivision (1).
   2-20        (c) <(b)>  An employee may be compensated for a suggestion
   2-21  under the incentive program only as provided by this chapter
   2-22  <subchapter>.
   2-23        Sec. 2108.003 <2108.023>.  AWARDS.  (a)  From funds
   2-24  appropriated or otherwise available for this purpose, the
   2-25  governor's office <commission> may grant an award to an eligible
   2-26  state employee who makes a suggestion that:
   2-27              (1)  reduces state expenditures, increases state
    3-1  revenues, increases agency productivity, or improves the quality of
    3-2  state services; and
    3-3              (2)  is approved and implemented.
    3-4        (b)  The governor's office <commission> may grant an award,
    3-5  and the comptroller may transfer funds under this chapter
    3-6  <subchapter>, before the end of the first year in which a
    3-7  suggestion is implemented.
    3-8        (c)  An award or transfer of funds must be computed on the
    3-9  net annual actual or projected savings or increased revenues,
   3-10  including savings or increased revenues that result from increased
   3-11  productivity, that are certified by the affected state agency and
   3-12  the governor's office <commission>.
   3-13        (d)  An employee is eligible for a bonus of 10 percent of the
   3-14  net savings or revenue increases, not to exceed an award of $5,000,
   3-15  if the employee's suggestion results in savings or increased
   3-16  revenues, including savings or increased revenues that result from
   3-17  increased productivity, that:
   3-18              (1)  can be computed using a cost-benefit analysis; and
   3-19              (2)  equal or exceed $100 after implementation costs.
   3-20        (e)  An employee is not eligible for a bonus but may be
   3-21  recognized by a certificate of appreciation if the employee's
   3-22  suggestion results in:
   3-23              (1)  intangible savings or benefits that cannot be
   3-24  computed using a cost-benefit analysis; or
   3-25              (2)  a net annual savings or increase in revenues of
   3-26  less than $100.
   3-27        (f)  The governor's office <commission> may also issue a
    4-1  certificate of appreciation to each employee who is granted a bonus
    4-2  under this chapter <subchapter>.
    4-3        (g)  The governor's office shall divide any bonus for a
    4-4  suggestion submitted by more than one employee among the employees
    4-5  submitting the suggestion.
    4-6        Sec. 2108.004 <2108.024>.  EMPLOYEE ELIGIBILITY.  Each state
    4-7  employee is eligible to participate in the incentive program except
    4-8  an employee:
    4-9              (1)  who has authority to implement the suggestion
   4-10  being made;
   4-11              (2)  who is on an unpaid leave of absence;
   4-12              (3)  whose job description includes responsibility for
   4-13  cost analysis, efficiency analysis, savings implementation, or
   4-14  other similar programs in the employee's agency;
   4-15              (4)  who is involved in or has access to agency
   4-16  research and development information used as the basis of the
   4-17  suggestion; or
   4-18              (5)  whose job description or routine job duties
   4-19  include developing the type of change in agency operations
   4-20  recommended by the suggestion.
   4-21        Sec. 2108.005 <2108.025>.  EMPLOYEE STATUS; FORMER EMPLOYEES.
   4-22  (a)  An employee's eligibility under Section 2108.004 <2108.024> is
   4-23  determined on the employee's status when the agency coordinator
   4-24  receives the original employee suggestion.
   4-25        (b)  A former employee is eligible for an award if the
   4-26  employee's suggestion is implemented on or before the second
   4-27  anniversary of the date of final disposition of the suggestion.  A
    5-1  bonus granted to an employee who dies before the bonus is received
    5-2  shall be paid to the employee's estate.
    5-3        Sec. 2108.006 <2108.026>.  ELIGIBLE SUGGESTION.  (a)  To be
    5-4  eligible for consideration under the incentive program an employee
    5-5  suggestion must:
    5-6              (1)  be given to the agency coordinator;
    5-7              (2)  be in writing and in the form the governor's
    5-8  office <commission> prescribes;
    5-9              (3)  be signed by the employee;
   5-10              (4)  propose a reasonable implementation method; and
   5-11              (5)  describe the type of cost savings or other benefit
   5-12  the employee foresees if the suggestion is adopted.
   5-13        (b)  An employee is not eligible to receive an award under
   5-14  this chapter <subchapter> for a suggestion that:
   5-15              (1)  does not describe a method to achieve the desired
   5-16  savings or benefit;
   5-17              (2)  proposes an idea under implementation or
   5-18  consideration on the date the suggestion is given to the agency;
   5-19              (3)  relates only to personnel matters or grievances,
   5-20  including employee classification or compensation;
   5-21              (4)  proposes a correction for a condition that
   5-22  resulted only because applicable established procedures were not
   5-23  properly followed; or
   5-24              (5)  proposes implementation of a policy or procedure
   5-25  that the employee's agency adopted before the employee made the
   5-26  suggestion to the agency.
   5-27        Sec. 2108.007 <2108.027>.  MULTIPLE AND JOINT SUGGESTIONS.
    6-1  (a)  If two or more employees submit the same suggestion relating
    6-2  to the same agency, the first suggestion that the agency
    6-3  coordinator receives is eligible for consideration.
    6-4        (b)  If the same suggestion is received on the same day from
    6-5  two or more employees working at different locations, a bonus
    6-6  granted for the suggestion may be divided equally among the
    6-7  employees.
    6-8        (c)  Two or more employees may submit a joint suggestion.  A
    6-9  bonus granted for the suggestion shall <may> be divided equally
   6-10  among the employees.
   6-11        Sec. 2108.008 <2108.028>.  AGENCY COORDINATOR.  (a)  Each
   6-12  state agency shall designate an agency coordinator.
   6-13        (b)  An agency coordinator shall:
   6-14              (1)  promote employee participation in the incentive
   6-15  program;
   6-16              (2)  obtain an impartial evaluation of each employee
   6-17  suggestion;
   6-18              (3)  promote the implementation of adopted suggestions
   6-19  by the agency;
   6-20              (4)  monitor the cost savings and other benefits that
   6-21  result from the implementation of an employee suggestion;
   6-22              (5)  file reports with the governor's office
   6-23  <commission> as required by <commission> rule of the governor's
   6-24  office; and
   6-25              (6)  arrange and conduct intraagency award ceremonies
   6-26  to recognize agency employees who are granted awards under this
   6-27  chapter <subchapter>.
    7-1        Sec. 2108.009 <2108.029>.  ELIGIBILITY DETERMINATION BY
    7-2  AGENCY COORDINATOR.  (a)  An agency coordinator shall make the
    7-3  initial determination of the eligibility of an employee suggestion
    7-4  or of an agency employee who makes a suggestion.
    7-5        (b)  An employee who is aggrieved by an eligibility
    7-6  determination of an agency coordinator may request a
    7-7  redetermination.
    7-8        (c)  The governor's office <commission> shall adopt rules to
    7-9  govern the redetermination process.  An agency coordinator shall
   7-10  give each employee who makes a suggestion a copy of the
   7-11  <commission> rules of the governor's office relating to
   7-12  redeterminations or reevaluations.
   7-13        Sec. 2108.010 <2108.030>.  PROCEDURE.  (a)  Not later than
   7-14  the 90th day after the date an agency coordinator receives an
   7-15  employee suggestion, the agency coordinator shall send the
   7-16  suggestion and the evaluation of the suggestion to the governor's
   7-17  office <commission> for further analysis and comment regarding
   7-18  implementation.  If, after any necessary analysis, the governor's
   7-19  office <commission> determines that the suggestion has merit, the
   7-20  governor's office <commission> shall refer the suggestion to each
   7-21  appropriate state agency for proposed adoption and implementation.
   7-22        (b)  Not later than the 30th day after the date the
   7-23  governor's office <commission> makes a final determination on
   7-24  adoption or rejection of an employee suggestion, the governor's
   7-25  office <commission> shall notify in writing each employee who
   7-26  proposed the suggestion of the <commission's> determination of the
   7-27  governor's office.
    8-1        (c)  Final adoption of an employee suggestion is at the
    8-2  discretion of the chief administrative officers of each agency.  An
    8-3  agency that implements a suggestion proposed under this chapter
    8-4  <subchapter> shall provide information the governor's office
    8-5  <commission> requests that is necessary to compute the amount of
    8-6  savings or other benefits derived from the suggestion.
    8-7        Sec. 2108.011 <2108.031>.  GOVERNOR'S OFFICE <COMMISSION> AS
    8-8  ARBITER; APPEAL.  (a)  The governor's office <commission> is the
    8-9  final arbiter of any dispute arising from the implementation of the
   8-10  incentive program or from eligibility determination.
   8-11        (b)  An employee may not appeal a <commission> decision of
   8-12  the governor's office to a court.
   8-13        Sec. 2108.012 <2108.032>.  REEVALUATION OF SUGGESTION.  An
   8-14  employee whose suggestion has been rejected may request a
   8-15  reevaluation of the suggestion if the employee has reasonable
   8-16  grounds to believe that the importance of the suggestion has been
   8-17  overlooked or misinterpreted.   The employee must make the request
   8-18  in writing not later than the 30th day after the date the employee
   8-19  receives notice of the rejection.  The employee shall provide any
   8-20  additional information that the employee considers useful to the
   8-21  reevaluation.
   8-22        Sec. 2108.013 <2108.033>.  SUGGESTION ADOPTED BEFORE
   8-23  SUBMISSION TO AGENCY COORDINATOR.  The governor's office
   8-24  <commission> may grant a bonus or issue a certificate of
   8-25  appreciation to an employee who makes a suggestion that results in
   8-26  an agency's adopting a policy or procedure before the suggestion is
   8-27  submitted to the agency coordinator if the employee or agency
    9-1  demonstrates to the governor's office <commission> that:
    9-2              (1)  the employee making the suggestion is eligible
    9-3  under this chapter <subchapter>;
    9-4              (2)  the suggestion is eligible under this chapter
    9-5  <subchapter>;
    9-6              (3)  the employee proposed a reasonable method of
    9-7  implementation and described the type of savings or benefit
    9-8  foreseen to the agency before agency implementation; and
    9-9              (4)  the agency adopted the policy or procedure as a
   9-10  result of the suggestion.
   9-11        Sec. 2108.014 <2108.034>.  SUGGESTION REQUIRING LEGISLATIVE
   9-12  ACTION.  The governor's office <commission> shall note a suggestion
   9-13  that requires legislative action.  If, as a direct result of an
   9-14  employee suggestion, legislation is passed to implement the
   9-15  suggestion, the governor's office <commission> shall consider the
   9-16  suggestion for an award.  The employee's agency coordinator shall
   9-17  notify the governor's office <commission> if implementing
   9-18  legislation is passed.
   9-19        Sec. 2108.015 <2108.035>.  CONFIDENTIALITY.  On request of an
   9-20  employee who has made a suggestion under this chapter <subchapter>,
   9-21  the governor's office <commission> to the greatest extent possible
   9-22  shall maintain the employee's confidentiality in the evaluation or
   9-23  award process.
   9-24        Sec. 2108.016 <2108.036>.  CLAIMS ASSIGNED TO STATE.  By
   9-25  submitting a suggestion under this chapter <subchapter>, an
   9-26  employee agrees with the state that a claim of the employee based
   9-27  on the suggestion, including a patent, copyright, trademark, or
   10-1  other similar claim, is assigned to the state.
   10-2        Sec. 2108.017 <2108.037>.  FUNDS TRANSFER.  (a)  The
   10-3  comptroller shall transfer the amount certified by the governor's
   10-4  office <commission> and the affected agency as the actual or
   10-5  projected savings or increased revenues attributable to an
   10-6  implemented suggestion from a fund affected by the savings or
   10-7  increased revenues.
   10-8        (b)  The comptroller shall transfer the amount certified
   10-9  under Subsection (a) as follows:
  10-10              (1)  50 <40> percent to the fund from which the
  10-11  original appropriation to the affected fund was made;
  10-12              (2)  40 percent to an appropriate fund from which the
  10-13  affected agency may award merit pay increases to individuals in the
  10-14  agency; and
  10-15              (3)  10 <20> percent to the special fund established
  10-16  for the governor's office <commission> under Section 2108.018
  10-17  <2108.038>.
  10-18        (c)  If increased productivity attributable to an implemented
  10-19  suggestion results in savings or increased revenues that can be
  10-20  computed as provided by Section 2108.003(c) <2108.023(c)> but that
  10-21  will not permit the affected agency to transfer or to have an
  10-22  unexpended balance of appropriated money, the governor's office
  10-23  <commission> and the affected agency shall certify the amount of
  10-24  actual or projected savings or increased revenues that are
  10-25  attributable to the suggestion, and the comptroller shall transfer
  10-26  20 percent of that amount from a fund affected by the savings or
  10-27  increased revenues to the special fund established under Section
   11-1  2108.018 <2108.038>.
   11-2        Sec. 2108.018 <2108.038>.  SPECIAL FUND.  (a)  An amount
   11-3  transferred under Section 2108.017(b)(3) or (c) <2108.037(b)(3) or
   11-4  (c)> shall be deposited in the state treasury to the credit of a
   11-5  special fund.  Money in the fund may be used by the governor's
   11-6  office <commission> for bonuses awarded under this chapter
   11-7  <subchapter and to administer the commission>.
   11-8        (b)  The comptroller shall transfer any amount remaining in
   11-9  the special fund on the last day of a state fiscal biennium to the
  11-10  general revenue fund or other funds as appropriate.
  11-11        Sec. 2108.019 <2108.039>.  CHANGE TO INCENTIVE PROGRAM.  The
  11-12  state may change or terminate the incentive program at any time
  11-13  without prior notice.
  11-14        SECTION 3.  Subchapters A and C, Chapter 2108, Government
  11-15  Code, are repealed.
  11-16        SECTION 4.  (a)  In addition to the substantive changes in
  11-17  law made by this Act, this Act conforms the Government Code to
  11-18  Section 1, Chapter 333, Acts of the 73rd Legislature, Regular
  11-19  Session, 1993.
  11-20        (b)  Section 1, Chapter 333, Acts of the 73rd Legislature,
  11-21  Regular Session, 1993, is repealed.
  11-22        (c)  To the extent of any conflict, this Act prevails over
  11-23  another Act of the 74th Legislature, Regular Session, 1995,
  11-24  relating to nonsubstantive additions to and corrections in enacted
  11-25  codes.
  11-26        SECTION 5.  This Act takes effect August 31, 1995. On that
  11-27  date, the State Employee Incentive Commission and the productivity
   12-1  bonus program are abolished. All powers, duties, obligations,
   12-2  rights, property, funds, employees, and appropriations of the State
   12-3  Employee Incentive Commission are transferred to the governor's
   12-4  office. A rule, form, decision, or procedure of the State Employee
   12-5  Incentive Commission that relates to the state employee incentive
   12-6  program is continued in effect as a rule, form, decision, or
   12-7  procedure of the governor's office until superseded by appropriate
   12-8  action of the governor's office. A suggestion under the state
   12-9  employee incentive program that is before the State Employee
  12-10  Incentive Commission is transferred without change in status to the
  12-11  governor's office.
  12-12        SECTION 6.  The importance of this legislation and the
  12-13  crowded condition of the calendars in both houses create an
  12-14  emergency and an imperative public necessity that the
  12-15  constitutional rule requiring bills to be read on three several
  12-16  days in each house be suspended, and this rule is hereby suspended.