1-1     By:  Barrientos                                        S.B. No. 784

 1-2           (In the Senate - Filed February 26, 1997; March 3, 1997, read

 1-3     first time and referred to Committee on State Affairs;

 1-4     April 8, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 13, Nays 0; April 8, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 784                     By:  Cain

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the Texas Incentive and Productivity Commission.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 2108.003, Government Code, is amended by

1-13     amending Subsection (a) and adding Subsection (e) to read as

1-14     follows:

1-15           (a)  The commission is composed of:

1-16                 (1)  the governor;

1-17                 (2)  the lieutenant governor;

1-18                 (3)  the comptroller;

1-19                 (4)  a state agency executive director appointed by the

1-20     governor [the state treasurer];

1-21                 (5)  another state agency executive director appointed

1-22     by the governor from an agency that has actively participated in

1-23     one or both of the commission's programs [the agency administrator

1-24     of the Texas Employment Commission];

1-25                 (6)  the chairman of the Texas Higher Education

1-26     Coordinating Board or the chairman's designee; and

1-27                 (7)  three public members appointed by the governor who

1-28     have experience in the administration of bonus, incentive, or

1-29     related programs used in private industry.

1-30           (e)  The appointed executive director members serve two-year

1-31     terms, with the term of one member expiring February 1 of each

1-32     even-numbered year and the term of one member expiring February 1

1-33     of each odd-numbered year.

1-34           SECTION 2.  Subsection (b), Section 2108.004, Government

1-35     Code, is amended to read as follows:

1-36           (b)  The commission may adopt rules to carry out this chapter

1-37     and to provide for the efficient operation of the state employee

1-38     incentive program and the productivity bonus program.

1-39           SECTION 3.  Subchapter A, Chapter 2108, Government Code, is

1-40     amended by adding Sections 2108.008, 2108.009, and 2108.010 to read

1-41     as follows:

1-42           Sec. 2108.008.  MONEY FOR OPERATION OF COMMISSION.  (a)  The

1-43     legislature shall appropriate money for the operation of the

1-44     commission by providing that each state agency shall pay an amount

1-45     of money to the commission out of the agency's appropriation.  The

1-46     amount paid to the commission out of each  agency's appropriation

1-47     is computed by multiplying an amount set by appropriation times the

1-48     number of employees employed by the  agency.

1-49           (b)  Each  state agency shall make its payment to the

1-50     commission in the manner prescribed by the appropriation.

1-51           Sec. 2108.009.  LEGISLATIVE APPROPRIATIONS REQUESTS.  Each

1-52     state agency that is eligible to participate in the state employee

1-53     incentive program or the productivity bonus program shall include

1-54     in the agency's legislative appropriation request performance

1-55     measures for the number of employee suggestions submitted and

1-56     approved.

1-57           Sec. 2108.010.  REFERENCES TO PROGRAMS.  The commission may

1-58     refer to the incentive program and to the productivity bonus

1-59     program by different names and may authorize a state agency to

1-60     refer to the programs by different names.

1-61           SECTION 4.  Section 2108.022, Government Code, is amended by

1-62     adding Subsection (c) to read as follows:

1-63           (c)  The commission by rule may prescribe procedures that

1-64     allow the commission and state agencies to communicate by facsimile

 2-1     or on-line transmission of information.  The commission may allow a

 2-2     state employee to submit an eligible suggestion to the commission

 2-3     by transmitting it on-line, without requiring the employee to sign

 2-4     the suggestion.

 2-5           SECTION 5.  Subsection (a), Section 2108.026, Government

 2-6     Code, is amended to read as follows:

 2-7           (a)  To be eligible for consideration under the incentive

 2-8     program an employee suggestion must:

 2-9                 (1)  be given to the agency coordinator;

2-10                 (2)  be in writing and in the form the commission

2-11     prescribes;

2-12                 (3)  be signed by the employee, except as provided by

2-13     Section 2108.022(c);

2-14                 (4)  propose a reasonable implementation method; and

2-15                 (5)  describe the type of cost savings or other benefit

2-16     the employee foresees if the suggestion is adopted.

2-17           SECTION 6.  Subsection (c), Section 2108.029, Government

2-18     Code, is amended to read as follows:

2-19           (c)  The commission shall adopt rules to govern the

2-20     redetermination process.  An agency coordinator shall give each

2-21     employee who makes a suggestion information about [a copy of] the

2-22     commission rules relating to redeterminations or reevaluations.

2-23           SECTION 7.  Section 2108.037, Government Code, is amended to

2-24     read as follows:

2-25           Sec. 2108.037.  FUNDS TRANSFER; AGENCY INCENTIVE REINVESTMENT

2-26     ACCOUNTS.  (a)  The comptroller shall transfer the amount certified

2-27     by the commission and the affected agency as the actual or

2-28     projected savings or increased revenues attributable to an

2-29     implemented suggestion from a fund affected by the savings or

2-30     increased revenues.

2-31           (b)  The comptroller shall transfer the amount certified

2-32     under Subsection (a) into an incentive reinvestment account the

2-33     comptroller creates for each participating state agency.  Money in

2-34     a state agency's incentive reinvestment account may be appropriated

2-35     only:

2-36                 (1)  to the agency for the purpose of paying bonuses

2-37     granted by the commission under this subchapter to an eligible

2-38     employee of the agency;

2-39                 (2)  to the agency for the purpose of training the

2-40     agency's employees; or

2-41                 (3)  to the agency or another appropriate entity for

2-42     the purpose of capital expenditures made by or for the agency that

2-43     may reasonably be expected to increase productivity at the agency

2-44     [as follows:]

2-45                 [(1)  40 percent to the fund from which the original

2-46     appropriation to the affected fund was made;]

2-47                 [(2)  40 percent to an appropriate fund from which the

2-48     affected agency may award merit pay increases to individuals in the

2-49     agency; and]

2-50                 [(3)  20 percent to the special fund established for

2-51     the commission under Section 2108.038].

2-52           (c)  If increased productivity attributable to an implemented

2-53     suggestion results in savings or increased revenues that can be

2-54     computed as provided by Section 2108.023(c) but that will not

2-55     permit the affected agency to transfer or to have an unexpended

2-56     balance of appropriated money, the commission and the affected

2-57     agency shall certify the amount of actual or projected savings or

2-58     increased revenues that are attributable to the suggestion, and the

2-59     comptroller shall transfer the [20 percent of that] amount of the

2-60     bonus granted by the commission to the employee making the

2-61     suggestion from a fund affected by the savings or increased

2-62     revenues to the state agency's incentive reinvestment account for

2-63     payment to the employee [special fund established under Section

2-64     2108.038].

2-65           SECTION 8.  Subdivision (3), Section 2108.101, Government

2-66     Code, is amended to read as follows:

2-67                 (3)  "State agency" means a department, commission,

2-68     board, office, or other agency in the executive or judicial branch

2-69     of state government that is created under the constitution or a

 3-1     statute of this state[, but does not include:]

 3-2                       [(A)  the office of the governor; or]

 3-3                       [(B)  an institution of higher education, as

 3-4     defined by Section 61.003, Education Code].

 3-5           SECTION 9.  Section 2108.104, Government Code, is amended by

 3-6     adding Subsection (d) to read as follows:

 3-7           (d)  The commission may delegate to commission staff the

 3-8     authority to award a productivity bonus under this subchapter if

 3-9     the bonus is awarded based on the implementation of a plan that the

3-10     commission has approved.  The staff shall inform the commission of

3-11     productivity bonuses the staff awards under delegated authority.

3-12           SECTION 10.  Subsections (a) and (c), Section 2108.106,

3-13     Government Code, are amended  to read as follows:

3-14           (a)  The commission shall award eligible employees of an

3-15     agency or division an amount not to exceed 25 percent of the amount

3-16     of savings certified by the agency or division and approved by the

3-17     commission [in the agency's or division's productivity bonus

3-18     account].  The awarded amount shall be distributed in equal shares

3-19     to the eligible current employees of the agency or division.  A

3-20     bonus awarded to an individual employee may not exceed $1,000.

3-21           (c)  An appointed or elected official [employee] is

3-22     ineligible to receive an award [eligible] under this section [if

3-23     the employee:]

3-24                 [(1)  is an hourly, part-time, or temporary employee;]

3-25                 [(2)  is a classified employee under Chapter 654; or]

3-26                 [(3)  performs functions equivalent to functions

3-27     performed by a classified employee in another state agency].

3-28           SECTION 11.  Section 2108.107, Government Code, is amended to

3-29     read as follows:

3-30           Sec. 2108.107.  TRANSFER [AWARD] TO [STATE] AGENCY

3-31     PRODUCTIVITY REINVESTMENT ACCOUNT [OR DIVISION].  If the commission

3-32     awards a productivity bonus to a state agency or division of a

3-33     state agency, the comptroller shall transfer the amount of savings

3-34     certified by the agency or division and approved by the commission

3-35     from a fund affected by the savings into a productivity

3-36     reinvestment account the comptroller creates for each participating

3-37     state agency.  Money in a state agency's productivity reinvestment

3-38     account may be appropriated only:

3-39                 (1)  to the agency for the purpose of paying bonuses

3-40     awarded by the commission under this subchapter to an eligible

3-41     employee of the agency;

3-42                 (2)  to the agency for the purpose of training the

3-43     agency's employees; or

3-44                 (3)  to the agency or another appropriate entity for

3-45     the purpose of capital expenditures made by or for the agency that

3-46     may reasonably be expected to increase productivity at the agency

3-47     [balance in the agency's or division's productivity bonus account,

3-48     as appropriate, shall be distributed as follows:]

3-49                 [(1)  one-third shall be appropriated to the agency for

3-50     use by the agency's administration to promote agency productivity

3-51     during the subsequent fiscal year; and]

3-52                 [(2)  two-thirds shall be credited to the fund from

3-53     which the original agency or division appropriation was made].

3-54           SECTION 12.  Subsection (a), Section 2108.108, Government

3-55     Code, is amended to read as follows:

3-56           (a)  As soon as possible after an agency certifies savings

3-57     under the program, [At the end of a fiscal year] the commission

3-58     shall compare the expenditures of a state agency or division that

3-59     participates in the productivity bonus program for the fiscal year

3-60     with the agency's or division's appropriation for that fiscal year

3-61     or, if appropriate, the amount attributable to that year.  The

3-62     commission shall determine the amount by which the agency or

3-63     division has reduced its cost of operations during the fiscal year.

3-64           SECTION 13.  Sections 2108.038 and 2108.109, Government Code,

3-65     are repealed.

3-66           SECTION 14.  The comptroller shall transfer any money in a

3-67     state agency's productivity bonus account into a productivity

3-68     reinvestment account created for the agency.  The comptroller shall

3-69     transfer any money in the productivity bonus account of the Texas

 4-1     Incentive and Productivity Commission into the undedicated portion

 4-2     of the general revenue fund.

 4-3           SECTION 15.  As soon as possible after the effective date of

 4-4     this Act, the governor shall appoint one executive director member

 4-5     to the Texas Incentive and Productivity Commission for a term

 4-6     expiring February 1, 1999, and one executive director member to the

 4-7     commission for a term expiring February 1, 2000.

 4-8           SECTION 16.  This Act takes effect September 1, 1997.

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

4-10     crowded condition of the calendars in both houses create an

4-11     emergency and an imperative public necessity that the

4-12     constitutional rule requiring bills to be read on three several

4-13     days in each house be suspended, and this rule is hereby suspended.

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