By:  Barrientos                                        S.B. No. 784

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the Texas Incentive and Productivity Commission.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 2108.003, Government Code, is amended by

 1-4     amending Subsection (a) and adding Subsection (e) to read as

 1-5     follows:

 1-6           (a)  The commission is composed of:

 1-7                 (1)  the governor;

 1-8                 (2)  the lieutenant governor;

 1-9                 (3)  the comptroller;

1-10                 (4)  a state agency executive director appointed by the

1-11     governor [the state treasurer];

1-12                 (5)  another state agency executive director appointed

1-13     by the governor from an agency that has actively participated in

1-14     one or both of the commission's programs [the agency administrator

1-15     of the Texas Employment Commission];

1-16                 (6)  the chairman of the Texas Higher Education

1-17     Coordinating Board or the chairman's designee; and

1-18                 (7)  three public members appointed by the governor who

1-19     have experience in the administration of bonus, incentive, or

1-20     related programs used in private industry.

1-21           (e)  The appointed executive director members serve two-year

1-22     terms, with the term of one member expiring February 1 of each

1-23     even-numbered year and the term of one member expiring February 1

 2-1     of each odd-numbered year.

 2-2           SECTION 2.  Subsection (b), Section 2108.004, Government

 2-3     Code, is amended to read as follows:

 2-4           (b)  The commission may adopt rules to carry out this chapter

 2-5     and to provide for the efficient operation of the state employee

 2-6     incentive program and the productivity bonus program.

 2-7           SECTION 3.  Subchapter A, Chapter 2108, Government Code, is

 2-8     amended by adding Sections 2108.008, 2108.009, and 2108.010 to read

 2-9     as follows:

2-10           Sec. 2108.008.  MONEY FOR OPERATION OF COMMISSION.  (a)  The

2-11     legislature shall appropriate money for the operation of the

2-12     commission by providing that each state agency shall pay an amount

2-13     of money to the commission out of the agency's appropriation.  The

2-14     amount paid to the commission out of each  agency's appropriation

2-15     is computed by multiplying an amount set by appropriation times the

2-16     number of employees employed by the  agency.

2-17           (b)  Each  state agency shall make its payment to the

2-18     commission in the manner prescribed by the appropriation.

2-19           Sec. 2108.009.  LEGISLATIVE APPROPRIATIONS REQUESTS.  Each

2-20     state agency that is eligible to participate in the state employee

2-21     incentive program or the productivity bonus program shall include

2-22     in the agency's legislative appropriation request performance

2-23     measures for the number of employee suggestions submitted and

2-24     approved.

2-25           Sec. 2108.010.  REFERENCES TO PROGRAMS.  The commission may

 3-1     refer to the incentive program and to the productivity bonus

 3-2     program by different names and may authorize a state agency to

 3-3     refer to the programs by different names.

 3-4           SECTION 4.  Section 2108.022, Government Code, is amended by

 3-5     adding Subsection (c) to read as follows:

 3-6           (c)  The commission by rule may prescribe procedures that

 3-7     allow the commission and state agencies to communicate by facsimile

 3-8     or on-line transmission of information.  The commission may allow a

 3-9     state employee to submit an eligible suggestion to the commission

3-10     by transmitting it on-line, without requiring the employee to sign

3-11     the suggestion.

3-12           SECTION 5.  Subsection (a), Section 2108.026, Government

3-13     Code, is amended to read as follows:

3-14           (a)  To be eligible for consideration under the incentive

3-15     program an employee suggestion must:

3-16                 (1)  be given to the agency coordinator;

3-17                 (2)  be in writing and in the form the commission

3-18     prescribes;

3-19                 (3)  be signed by the employee, except as provided by

3-20     Section 2108.022(c);

3-21                 (4)  propose a reasonable implementation method; and

3-22                 (5)  describe the type of cost savings or other benefit

3-23     the employee foresees if the suggestion is adopted.

3-24           SECTION 6.  Subsection (c), Section 2108.029, Government

3-25     Code, is amended to read as follows:

 4-1           (c)  The commission shall adopt rules to govern the

 4-2     redetermination process.  An agency coordinator shall give each

 4-3     employee who makes a suggestion information about [a copy of] the

 4-4     commission rules relating to redeterminations or reevaluations.

 4-5           SECTION 7.  Section 2108.037, Government Code, is amended to

 4-6     read as follows:

 4-7           Sec. 2108.037.  FUNDS TRANSFER; AGENCY INCENTIVE REINVESTMENT

 4-8     ACCOUNTS.  (a)  The comptroller shall transfer the amount certified

 4-9     by the commission and the affected agency as the actual or

4-10     projected savings or increased revenues attributable to an

4-11     implemented suggestion from a fund affected by the savings or

4-12     increased revenues.

4-13           (b)  The comptroller shall transfer the amount certified

4-14     under Subsection (a) into an incentive reinvestment account the

4-15     comptroller creates for each participating state agency.  Money in

4-16     a state agency's incentive reinvestment account may be appropriated

4-17     only:

4-18                 (1)  to the agency for the purpose of paying bonuses

4-19     granted by the commission under this subchapter to an eligible

4-20     employee of the agency;

4-21                 (2)  to the agency for the purpose of training the

4-22     agency's employees; or

4-23                 (3)  to the agency or another appropriate entity for

4-24     the purpose of capital expenditures made by or for the agency that

4-25     may reasonably be expected to increase productivity at the agency

 5-1     [as follows:]

 5-2                 [(1)  40 percent to the fund from which the original

 5-3     appropriation to the affected fund was made;]

 5-4                 [(2)  40 percent to an appropriate fund from which the

 5-5     affected agency may award merit pay increases to individuals in the

 5-6     agency; and]

 5-7                 [(3)  20 percent to the special fund established for

 5-8     the commission under Section 2108.038].

 5-9           (c)  If increased productivity attributable to an implemented

5-10     suggestion results in savings or increased revenues that can be

5-11     computed as provided by Section 2108.023(c) but that will not

5-12     permit the affected agency to transfer or to have an unexpended

5-13     balance of appropriated money, the commission and the affected

5-14     agency shall certify the amount of actual or projected savings or

5-15     increased revenues that are attributable to the suggestion, and the

5-16     comptroller shall transfer the [20 percent of that] amount of the

5-17     bonus granted by the commission to the employee making the

5-18     suggestion from a fund affected by the savings or increased

5-19     revenues to the state agency's incentive reinvestment account for

5-20     payment to the employee [special fund established under Section

5-21     2108.038].

5-22           SECTION 8.  Subdivision (3), Section 2108.101, Government

5-23     Code, is amended to read as follows:

5-24                 (3)  "State agency" means a department, commission,

5-25     board, office, or other agency in the executive or judicial branch

 6-1     of state government that is created under the constitution or a

 6-2     statute of this state[, but does not include:]

 6-3                       [(A)  the office of the governor; or]

 6-4                       [(B)  an institution of higher education, as

 6-5     defined by Section 61.003, Education Code].

 6-6           SECTION 9.  Section 2108.104, Government Code, is amended by

 6-7     adding Subsection (d) to read as follows:

 6-8           (d)  The commission may delegate to commission staff the

 6-9     authority to award a productivity bonus under this subchapter if

6-10     the bonus is awarded based on the implementation of a plan that the

6-11     commission has approved.  The staff shall inform the commission of

6-12     productivity bonuses the staff awards under delegated authority.

6-13           SECTION 10.  Subsections (a) and (c), Section 2108.106,

6-14     Government Code, are amended to read as follows:

6-15           (a)  The commission shall award eligible employees of an

6-16     agency or division an amount not to exceed 25 percent of the amount

6-17     of savings certified by the agency or division and approved by the

6-18     commission [in the agency's or division's productivity bonus

6-19     account].  The awarded amount shall be distributed in equal shares

6-20     to the eligible current employees of the agency or division.  A

6-21     bonus awarded to an individual employee may not exceed $1,000.

6-22           (c)  An appointed or elected official [employee] is

6-23     ineligible to receive an award [eligible] under this section [if

6-24     the employee:]

6-25                 [(1)  is an hourly, part-time, or temporary employee;]

 7-1                 [(2)  is a classified employee under Chapter 654; or]

 7-2                 [(3)  performs functions equivalent to functions

 7-3     performed by a classified employee in another state agency].

 7-4           SECTION 11.  Section 2108.107, Government Code, is amended to

 7-5     read as follows:

 7-6           Sec. 2108.107.  TRANSFER [AWARD] TO [STATE] AGENCY

 7-7     PRODUCTIVITY REINVESTMENT ACCOUNT [OR DIVISION].  If the commission

 7-8     awards a productivity bonus to a state agency or division of a

 7-9     state agency, the comptroller shall transfer the amount of savings

7-10     certified by the agency or division and approved by the commission

7-11     from a fund affected by the savings into a productivity

7-12     reinvestment account the comptroller creates for each participating

7-13     state agency.  Money in a state agency's productivity reinvestment

7-14     account may be appropriated only:

7-15                 (1)  to the agency for the purpose of paying bonuses

7-16     awarded by the commission under this subchapter to an eligible

7-17     employee of the agency;

7-18                 (2)  to the agency for the purpose of training the

7-19     agency's employees; or

7-20                 (3)  to the agency or another appropriate entity for

7-21     the purpose of capital expenditures made by or for the agency that

7-22     may reasonably be expected to increase productivity at the agency

7-23     [balance in the agency's or division's productivity bonus account,

7-24     as appropriate, shall be distributed as follows:]

7-25                 [(1)  one-third shall be appropriated to the agency for

 8-1     use by the agency's administration to promote agency productivity

 8-2     during the subsequent fiscal year; and]

 8-3                 [(2)  two-thirds shall be credited to the fund from

 8-4     which the original agency or division appropriation was made].

 8-5           SECTION 12.  Subsection (a), Section 2108.108, Government

 8-6     Code, is amended to read as follows:

 8-7           (a)  As soon as possible after an agency certifies savings

 8-8     under the program, [At the end of a fiscal year] the commission

 8-9     shall compare the expenditures of a state agency or division that

8-10     participates in the productivity bonus program for the fiscal year

8-11     with the agency's or division's appropriation for that fiscal year

8-12     or, if appropriate, the amount attributable to that year.  The

8-13     commission shall determine the amount by which the agency or

8-14     division has reduced its cost of operations during the fiscal year.

8-15           SECTION 13.  Sections 2108.038 and 2108.109, Government Code,

8-16     are repealed.

8-17           SECTION 14.  The comptroller shall transfer any money in a

8-18     state agency's productivity bonus account into a productivity

8-19     reinvestment account created for the agency.  The comptroller shall

8-20     transfer any money in the productivity bonus account of the Texas

8-21     Incentive and Productivity Commission into the undedicated portion

8-22     of the general revenue fund.

8-23           SECTION 15.  As soon as possible after the effective date of

8-24     this Act, the governor shall appoint one executive director member

8-25     to the Texas Incentive and Productivity Commission for a term

 9-1     expiring February 1, 1999, and one executive director member to the

 9-2     commission for a term expiring February 1, 2000.

 9-3           SECTION 16.  This Act takes effect September 1, 1997.

 9-4           SECTION 17.  The importance of this legislation and the

 9-5     crowded condition of the calendars in both houses create an

 9-6     emergency and an imperative public necessity that the

 9-7     constitutional rule requiring bills to be read on three several

 9-8     days in each house be suspended, and this rule is hereby suspended.