LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 17, 1997
         
         
      TO: Honorable Steven Wolens, Chair            IN RE:  Senate Bill No. 784, As Engrossed
          Committee on State Affairs                              By: Barrientos
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB784 ( Relating 
to the Texas Incentive and Productivity Commission. ) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB784-As Engrossed
         
No significant fiscal implication to the State is anticipated.
         

         
 
The bill would make changes to the way the Texas Incentive and 
Productivity Commission (TIPC) administers the State Employee 
Incentive Program and the Productivity Bonus Program, and would 
provide a new funding mechanism for TIPC.  Currently, participating 
agencies transfer a portion of the savings resulting from the 
programs to TIPC.  Under this bill, all state agencies and higher 
education institutions would be required to transfer to TIPC 
an amount equal to the number of employees employed by the agency 
or institution times an amount set by appropriation.  The Comptroller 
of Public Accounts estimates that a per-FTE assessment of 72 
cents would produce an amount roughly equal to TIPC's current 
appropriation.

Additionally, the bill would eliminate the 
requirement that agencies lapse a portion of identified savings 
back to the state.  Under the bill, the Comptroller would transfer 
the total amount saved by an agency or institution into accounts 
created for each agency and institution.  The funds in these 
accounts could be used only for paying bonuses to participating 
employees, for employee training, and for capital expenditures 
expected to increase agency productivity.

The bill also makes 
several changes to the statutes governing the administration 
of the programs.  These changes have no fiscal impact.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         353   Incentive and Productivity Commission
                                         
                      LBB Staff:   JK ,JD ,SC