By Armbrister                                   S.B. No. 1074

      75R5542 RJA-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.  Sections 2108.003(a) and (d), Government Code,

 1-7     are amended to read as follows:

 1-8           (a)  The commission is composed of:

 1-9                 (1)  the governor;

1-10                 (2)  the lieutenant governor;

1-11                 (3)  the comptroller;

1-12                 (4)  [the state treasurer;]

1-13                 [(5)]  the agency administrator of the Texas Workforce

1-14     [Employment] Commission;

1-15                 (5) [(6)]  the chairman of the Texas Higher Education

1-16     Coordinating Board or the chairman's designee; [and]

1-17                 (6)  a chief administrative officer of a state agency

1-18     designated by the governor; and

1-19                 (7)  three public members appointed by the governor who

1-20     have experience in the administration of bonus, incentive, or

1-21     related programs used in private industry.

1-22           (d)  Public members serve a two-year term, with the term of

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

1-24     term of two members expiring February 1 of each odd-numbered year.

 2-1     The agency administrative officer designated by the governor under

 2-2     Subsection (a) serves a two-year term that expires February 1 of

 2-3     each even-numbered year.

 2-4           SECTION 2.  Section 2108.004(b), Government Code, is amended

 2-5     to read as follows:

 2-6           (b)  The commission may adopt rules to carry out this chapter

 2-7     and to provide for the efficient operation of the state employee

 2-8     incentive program and the productivity bonus program.

 2-9           SECTION 3.  Subchapter A, Chapter 2108, Government Code, is

2-10     amended by adding Sections 2108.008 and 2108.009 to read as

2-11     follows:

2-12           Sec. 2108.008.  MONEY FOR OPERATION OF COMMISSION.  (a)  The

2-13     legislature shall appropriate money for the operation of the

2-14     commission by providing that each state agency shall pay an amount

2-15     of money to the commission out of the  agency's appropriation.  The

2-16     amount paid to the commission out of each  agency's appropriation

2-17     is computed by multiplying an amount set by appropriation times the

2-18     number of employees employed by the  agency.

2-19           (b)  Each  state agency shall make its payment to the

2-20     commission in the manner prescribed by the appropriation.

2-21           Sec. 2108.009.  LEGISLATIVE APPROPRIATIONS REQUESTS.  Each

2-22     state agency that is eligible to participate in the state employee

2-23     incentive program  or the productivity bonus program shall include

2-24     in the agency's legislative appropriation request performance

2-25     measures for the number of employee suggestions submitted and

2-26     approved.

2-27           SECTION 4.  Section 2108.037, Government Code, is amended to

 3-1     read as follows:

 3-2           Sec. 2108.037.  FUNDS TRANSFER; AGENCY INCENTIVE REINVESTMENT

 3-3     ACCOUNTS.  (a)  The comptroller shall transfer the  amount

 3-4     certified by the commission and the affected agency as the actual

 3-5     or projected savings or increased revenues attributable to an

 3-6     implemented suggestion from a fund affected by the savings or

 3-7     increased revenues.

 3-8           (b)  The comptroller shall transfer the amount certified

 3-9     under Subsection (a) into an incentive reinvestment account the

3-10     comptroller creates for each participating state agency. Money in a

3-11     state agency's incentive reinvestment account may be appropriated

3-12     only:

3-13                 (1)  to the agency for the purpose of paying bonuses

3-14     granted by the commission under this subchapter to an eligible

3-15     employee of the agency;

3-16                 (2)  to the agency for the purpose of training the

3-17     agency's employees; or

3-18                 (3)  to the agency or another appropriate entity for

3-19     the purpose of capital expenditures made by or for the agency that

3-20     may reasonably be expected to increase productivity at the agency

3-21     [as follows:]

3-22                 [(1)  40 percent to the fund from which the original

3-23     appropriation to the affected fund was made;]

3-24                 [(2)  40 percent to an appropriate fund from which the

3-25     affected agency may award merit pay increases to individuals in the

3-26     agency; and]

3-27                 [(3)  20 percent to the special fund established for

 4-1     the commission under Section 2108.038].

 4-2           (c)  If increased productivity attributable to an implemented

 4-3     suggestion results in savings or increased revenues that can be

 4-4     computed as provided by Section 2108.023(c) but that will not

 4-5     permit the affected agency to transfer or to have an unexpended

 4-6     balance of appropriated money, the commission and the affected

 4-7     agency shall certify the amount of actual or projected savings or

 4-8     increased revenues that are attributable to the suggestion, and the

 4-9     comptroller shall transfer the [20 percent of that] amount of the

4-10     bonus granted by the commission to the employee making the

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

4-12     revenues to the state agency's incentive reinvestment account for

4-13     payment to the  employee [special fund established under Section

4-14     2108.038].

4-15           SECTION 5.  Section 2108.101(3), Government Code, is amended

4-16     to read as follows:

4-17                 (3)  "State agency" means a department, commission,

4-18     board, office, or other agency in the executive or judicial branch

4-19     of state government that is created under the constitution or a

4-20     statute of this state[, but does not include:]

4-21                       [(A)  the office of the governor; or]

4-22                       [(B)  an institution of higher education, as

4-23     defined by Section 61.003, Education Code].

4-24           SECTION 6.  Section 2108.106, Government Code, is amended by

4-25     amending Subsection (a) and adding Subsection (e) to read as

4-26     follows:

4-27           (a)  The commission shall award eligible employees of an

 5-1     agency or division an amount not to exceed 25 percent of the amount

 5-2     of savings certified by the agency or division and approved by the

 5-3     commission [in the agency's or division's  productivity bonus

 5-4     account].  The awarded amount shall be distributed in equal shares

 5-5     to the eligible current employees of the agency or division.  A

 5-6     bonus awarded to an individual employee may not exceed $1,000.

 5-7           (e)  In this section, "eligible employee" does not include an

 5-8     elected or appointed agency official.

 5-9           SECTION 7.  Section 2108.107, Government Code, is amended to

5-10     read as follows:

5-11           Sec. 2108.107.  TRANSFER [AWARD] TO [STATE] AGENCY

5-12     PRODUCTIVITY REINVESTMENT ACCOUNT [OR DIVISION].  If the

5-13     commission awards a productivity bonus to a state agency or

5-14     division of a state agency, the comptroller shall transfer the

5-15     amount of savings certified by the agency or division and approved

5-16     by the commission from a fund affected by the savings into a

5-17     productivity reinvestment account the comptroller creates for each

5-18     participating state agency. Money in a state agency's productivity

5-19     reinvestment account may be appropriated only:

5-20                 (1)  to the agency for the purpose of paying bonuses

5-21     awarded by the commission under this subchapter to an eligible

5-22     employee of the agency;

5-23                 (2)  to the agency for the purpose of training the

5-24     agency's employees; or

5-25                 (3)  to the agency or another appropriate entity for

5-26     the purpose of capital expenditures made by or for the agency that

5-27     may reasonably be expected to increase productivity at the agency

 6-1     [balance in the agency's or division's productivity bonus account,

 6-2     as appropriate, shall be distributed as follows:]

 6-3                 [(1)  one-third shall be appropriated to the agency for

 6-4     use by the agency's administration to promote agency productivity

 6-5     during the subsequent fiscal year; and]

 6-6                 [(2)  two-thirds shall be credited to the fund from

 6-7     which the original agency or division appropriation was made].

 6-8           SECTION 8.  Sections 2108.038 and 2108.109, Government Code,

 6-9     are repealed.

6-10           SECTION 9.  (a)  The comptroller shall transfer any money in

6-11     a state agency's productivity bonus account into a productivity

6-12     reinvestment account created for the agency.  The comptroller shall

6-13     transfer any money in the productivity bonus account of the Texas

6-14     Incentive and Productivity Commission into the undedicated portion

6-15     of the general revenue fund.

6-16           (b)  As soon as possible after the effective date of this

6-17     Act, the governor shall designate a chief administrative officer of

6-18     a state agency to serve on the Texas Incentive and Productivity

6-19     Commission for a term expiring February 1, 2000.

6-20           SECTION 10.  This Act takes effect September 1, 1997.

6-21           SECTION 11.  The importance of this legislation and the

6-22     crowded condition of the calendars in both houses create an

6-23     emergency and an imperative public necessity that the

6-24     constitutional rule requiring bills to be read on three several

6-25     days in each house be suspended, and this rule is hereby suspended.