By Bosse                                              H.B. No. 1208
         76R816 MLS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Texas Incentive
 1-3     and Productivity Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 2108.003, Government Code, is amended by
 1-6     amending Subsections (a) and (d) and adding Subsection (e) to read
 1-7     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 chief administrative officer of a state
1-13     agency, designated by the governor, that employs fewer than 1,000
1-14     full-time employees;
1-15                 (5)  the chief administrative officer of a state
1-16     agency, designated by the governor, that employs 1,000 or more
1-17     full-time employees [agency administrator of the Texas Employment
1-18     Commission];
1-19                 (6) [(5)]  the chairman of the Texas Higher Education
1-20     Coordinating Board or the chairman's designee; and
1-21                 (7) [(6)]  three public members appointed by the
1-22     governor who have experience in the administration of bonus,
1-23     incentive, or related programs used in private industry.
1-24           (d)  The chief administrative officers of the agencies
 2-1     designated by the governor serve a two-year term on the commission,
 2-2     with the term of one designated agency's chief administrative
 2-3     officer expiring February 1 of each even-numbered year and the term
 2-4     of the other designated agency's chief administration officer
 2-5     expiring February 1 of each odd-numbered year.  Public members
 2-6     serve a two-year term, with the term of one member expiring
 2-7     February 1 of each even-numbered year and the term of two members
 2-8     expiring February 1 of each odd-numbered year.
 2-9           (e)  Appointments to the commission shall be made without
2-10     regard to the race, color, disability, sex, religion, age, or
2-11     national origin of the appointees.
2-12           SECTION 2.  Subchapter A, Chapter 2108, Government Code, is
2-13     amended by adding Sections 2108.0035 and 2108.0036 to read as
2-14     follows:
2-15           Sec. 2108.0035.  ELIGIBILITY FOR COMMISSION MEMBERSHIP OR
2-16     EMPLOYMENT.  (a) In this section, "Texas trade association" means a
2-17     cooperative and voluntarily joined association of business or
2-18     professional competitors in this state designed to assist its
2-19     members and its industry or profession in dealing with mutual
2-20     business or professional problems and in promoting their common
2-21     interest.
2-22           (b)  A person may not be a public member of the commission
2-23     and may not be a commission employee employed in a "bona fide
2-24     executive, administrative, or professional capacity," as that
2-25     phrase is used for purposes of establishing an exemption to the
2-26     overtime provisions of the federal Fair Labor Standards Act of 1938
2-27     (29 U.S.C. Section 201 et seq.) and its subsequent amendments if:
 3-1                 (1)  the person is an officer, employee, or paid
 3-2     consultant of a Texas trade association in the field of the
 3-3     administration of bonus, incentive, or related programs used in
 3-4     private industry; or
 3-5                 (2)  the person's spouse is an officer, manager, or
 3-6     paid consultant of a Texas trade association in the field of the
 3-7     administration of bonus, incentive, or related programs used in
 3-8     private industry.
 3-9           (c)  A person may not be a public member of the commission or
3-10     act as general counsel to the commission if the person is required
3-11     to register as a lobbyist under Chapter 305 because of the person's
3-12     activities for compensation on behalf of a profession related to
3-13     the operation of the commission.
3-14           Sec. 2108.0036.  REMOVAL OF MEMBER.  (a) It is a ground for
3-15     removal from the commission if a public member:
3-16                 (1)  does not have at the time of taking office the
3-17     qualifications required by Section 2108.003;
3-18                 (2)  does not maintain during service on the commission
3-19     the qualifications required by Section 2108.003;
3-20                 (3)  is ineligible for membership under Section
3-21     2108.0035;
3-22                 (4)  cannot, because of illness or disability,
3-23     discharge the member's duties for a substantial part of the
3-24     member's term; or
3-25                 (5)  is absent from more than half of the regularly
3-26     scheduled commission meetings that the member is eligible to attend
3-27     during a calendar year unless the absence is excused by a majority
 4-1     vote of the commission.
 4-2           (b)  The validity of an action of the commission is not
 4-3     affected by the fact that it is taken when a ground for removal of
 4-4     a commission member exists.
 4-5           (c)  If the executive director of the commission has
 4-6     knowledge that a potential ground for removal exists, the executive
 4-7     director shall notify the presiding officer of the commission of
 4-8     the potential ground.  The presiding officer shall then notify the
 4-9     governor and the attorney general that a potential ground for
4-10     removal exists.  If the potential ground for removal involves the
4-11     presiding officer, the executive director shall notify the next
4-12     highest ranking officer of the commission, who shall then notify
4-13     the governor and the attorney general that a potential ground for
4-14     removal exists.
4-15           SECTION 3.  Section 2108.005, Government Code, is amended to
4-16     read as follows:
4-17           Sec. 2108.005.  EXECUTIVE DIRECTOR; STAFF.  [(a)]  The
4-18     commission may hire an executive director and other staff necessary
4-19     to perform its functions.
4-20           [(b)  The commission may designate separate division
4-21     directors to oversee the administration of the state employee
4-22     incentive program under Subchapter B and the productivity bonus
4-23     program under Subchapter C.]
4-24           SECTION 4.  Section 2108.007, Government Code, is amended to
4-25     read as follows:
4-26           Sec. 2108.007.  APPLICATION OF SUNSET ACT.  The Texas
4-27     Incentive and Productivity Commission is subject to Chapter 325
 5-1     (Texas Sunset Act).  Unless continued in existence as provided by
 5-2     that chapter, the commission is abolished and this chapter expires
 5-3     September 1, 2003 [1999].
 5-4           SECTION 5.  Subchapter A, Chapter 2108, Government Code, is
 5-5     amended by adding Sections 2108.008 through 2108.012 to read as
 5-6     follows:
 5-7           Sec. 2108.008.  PERSONNEL MATTERS.  (a) The executive
 5-8     director or the executive director's designee shall provide to
 5-9     members of the commission and to agency employees, as often as
5-10     necessary, information regarding the requirements for office or
5-11     employment under this chapter, including information regarding a
5-12     person's responsibilities under applicable laws relating to
5-13     standards of conduct for state officers or employees.
5-14           (b)  The commission shall develop and implement policies that
5-15     clearly separate the policymaking responsibilities of the
5-16     commission and the management responsibilities of the executive
5-17     director and the staff of the commission.
5-18           Sec. 2108.009.  EQUAL EMPLOYMENT OPPORTUNITY POLICY
5-19     STATEMENT.  (a) The executive director or the executive director's
5-20     designee shall prepare and maintain a written policy statement that
5-21     implements a program of equal employment opportunity to ensure that
5-22     all personnel decisions are made without regard to race, color,
5-23     disability, sex, religion, age, or national origin.
5-24           (b)  The policy statement must include:
5-25                 (1)  personnel policies, including policies relating to
5-26     recruitment, evaluation, selection, training, and promotion of
5-27     personnel, that show the intent of the commission to avoid the
 6-1     unlawful employment practices described by Chapter 21, Labor Code;
 6-2     and
 6-3                 (2)  an analysis of the extent to which the composition
 6-4     of the commission's personnel is in accordance with state and
 6-5     federal law and a description of reasonable methods to achieve
 6-6     compliance with state and federal law.
 6-7           (c)  The policy statement must:
 6-8                 (1)  be updated annually;
 6-9                 (2)  be reviewed by the Texas Commission on Human
6-10     Rights for compliance with Subsection (b)(1); and
6-11                 (3)  be filed with the governor's office.
6-12           Sec. 2108.010.  PUBLIC TESTIMONY.  The commission shall
6-13     develop and implement policies that provide the public with a
6-14     reasonable opportunity to appear before the commission and to speak
6-15     on any issue under the jurisdiction of the commission.
6-16           Sec. 2108.011.  COMPLAINTS.  (a) The commission shall
6-17     maintain a file on each written complaint filed with the
6-18     commission.  The file must include:
6-19                 (1)  the name of the person who filed the complaint;
6-20                 (2)  the date the complaint is received by the
6-21     commission;
6-22                 (3)  the subject matter of the complaint;
6-23                 (4)  the name of each person contacted in relation to
6-24     the complaint;
6-25                 (5)  a summary of the results of the review or the
6-26     investigation of the complaint; and
6-27                 (6)  an explanation of the reason the file was closed,
 7-1     if the agency closed the file without taking action other than to
 7-2     investigate the complaint.
 7-3           (b)  The commission shall provide to the person filing the
 7-4     complaint and to each person who is a subject of the complaint a
 7-5     copy of the commission's policies and procedures relating to
 7-6     complaint investigation and resolution.
 7-7           (c)  The commission, at least quarterly until final
 7-8     disposition of the complaint, shall notify the person filing the
 7-9     complaint and each person who is a subject of the complaint of the
7-10     status of the complaint unless the notice would jeopardize an
7-11     undercover investigation.
7-12           Sec. 2108.012.  TRAINING.  (a) A person who is appointed to
7-13     and qualifies for office as a public member of the commission may
7-14     not vote, deliberate, or be counted as a member in attendance at a
7-15     meeting of the commission until the person completes a training
7-16     program that complies with this section.
7-17           (b)  The training program must provide the person with
7-18     information regarding:
7-19                 (1)  the legislation that created the commission;
7-20                 (2)  the programs operated by the commission;
7-21                 (3)  the role and the functions of the commission;
7-22                 (4)  the rules of the commission with an emphasis on
7-23     the rules that relate to disciplinary and investigatory authority;
7-24                 (5)  the current budget for the commission;
7-25                 (6)  the results of the most recent formal audit of the
7-26     commission;
7-27                 (7)  the requirements of:
 8-1                       (A)  the open meetings law, Chapter 551;
 8-2                       (B)  the public information law, Chapter 552;
 8-3                       (C)  the administrative procedure law, Chapter
 8-4     2001; and
 8-5                       (D)  other laws relating to public officials,
 8-6     including conflict of interest laws; and
 8-7                 (8)  any applicable ethics policies adopted by the
 8-8     commission or the Texas Ethics Commission.
 8-9           (c)  A person appointed to the commission is entitled to
8-10     reimbursement, as provided by the General Appropriations Act, for
8-11     the travel expenses incurred in attending the training program
8-12     regardless of whether the attendance at the program occurs before
8-13     or after the person qualifies for office.
8-14           SECTION 6.  Section 2108.021, Government Code, is amended by
8-15     adding Subdivision (8) to read as follows:
8-16                 (8)  "State employee group" means a group of four or
8-17     more state employees employed by the same state agency.
8-18           SECTION 7.  Sections 2108.023(a), (b), and (c), Government
8-19     Code, are amended to read as follows:
8-20           (a)  The [From funds appropriated or otherwise available for
8-21     this purpose, the] commission may grant an award to an eligible
8-22     state employee who makes a suggestion that:
8-23                 (1)  reduces state expenditures, increases state
8-24     revenues, increases agency productivity, or improves the quality of
8-25     state services; and
8-26                 (2)  is approved and implemented.
8-27           (b)  The commission may grant an award[, and the comptroller
 9-1     may transfer funds under this subchapter,] before the end of the
 9-2     first year in which a suggestion is implemented.
 9-3           (c)  An award [or transfer of funds] must be computed on the
 9-4     net annual actual or projected savings or increased revenues,
 9-5     including savings or increased revenues that result from increased
 9-6     productivity, that are certified by the affected state agency and
 9-7     the commission.
 9-8           SECTION 8.  Subchapter B, Chapter 2108, Government Code, is
 9-9     amended by adding Sections 2108.0235 and 2108.0236 to read as
9-10     follows:
9-11           Sec. 2108.0235.  RECOGNITION AWARD.  (a) From funds
9-12     appropriated or otherwise available for this purpose, the
9-13     commission may grant a recognition award in the amount of $50 to an
9-14     eligible state employee who makes a suggestion that:
9-15                 (1)  relates to a state agency and:
9-16                       (A)  conserves energy;
9-17                       (B)  enhances safety;
9-18                       (C)  improves customer service; or
9-19                       (D)  results in the adoption of any other
9-20     innovation or improvement that is approved by the commission; and
9-21                 (2)  is not otherwise eligible for a bonus under
9-22     Section 2108.023.
9-23           (b)  An award under this section must be approved by members
9-24     of the commission.  The staff of the commission may not approve an
9-25     award under this section.
9-26           (c)  The commission may not grant more than 150 awards for
9-27     suggestions under this section each state fiscal year.
 10-1          Sec. 2108.0236.  STATE EMPLOYEE GROUPS.  (a) A state employee
 10-2    group each member of which is eligible under Section 2108.024 may
 10-3    submit a suggestion as a group.  Except as provided by this
 10-4    section, each provision in this subchapter that applies to a state
 10-5    employee or a state employee suggestion applies, as appropriate, to
 10-6    a state employee group, each member of a state employee group, or a
 10-7    suggestion submitted by a state employee group.
 10-8          (b)  A state employee group is eligible for a total bonus of
 10-9    10 percent of the first-year net savings or revenue increases, not
10-10    to exceed an award of $5,000 for each member of the state employee
10-11    group, if the state employee group's suggestion results in savings
10-12    or increased revenues to a state agency, including savings or
10-13    increased revenues that result from increased productivity, that:
10-14                (1)  can be computed using a cost-benefit analysis; and
10-15                (2)  equal or exceed $100 after implementation costs.
10-16          (c)  The commission shall divide any bonus for a suggestion
10-17    submitted by a state employee group equally among the members of
10-18    the group.
10-19          SECTION 9.  Section 2108.024, Government Code, is amended to
10-20    read as follows:
10-21          Sec. 2108.024.  EMPLOYEE ELIGIBILITY TO PARTICIPATE.  Each
10-22    state employee is eligible to participate in the incentive program
10-23    except an employee:
10-24                (1)  who has authority to implement the suggestion
10-25    being made;
10-26                (2)  who is on an unpaid leave of absence;
10-27                (3)  whose job description includes responsibility for
 11-1    cost analysis, efficiency analysis, savings implementation, or
 11-2    other similar programs in the employee's agency;
 11-3                (4)  who is involved in or has access to agency
 11-4    research and development information used as the basis of the
 11-5    suggestion; [or]
 11-6                (5)  whose job description or routine job duties
 11-7    include developing the type of change in agency operations
 11-8    recommended by the suggestion; or
 11-9                (6)  who is an employee of the commission.
11-10          SECTION 10.  Section 2108.026(b), Government Code, is amended
11-11    to read as follows:
11-12          (b)  An employee is not eligible to receive an award under
11-13    this subchapter for a suggestion that:
11-14                (1)  does not describe a method to achieve the desired
11-15    savings or benefit;
11-16                (2)  proposes an idea under implementation or
11-17    consideration on the date the suggestion is given to the agency;
11-18                (3)  relates only to personnel matters or grievances,
11-19    including employee classification or compensation;
11-20                (4)  proposes a correction for a condition that
11-21    resulted only because applicable established procedures were not
11-22    properly followed; [or]
11-23                (5)  proposes implementation of a policy or procedure
11-24    that the employee's agency adopted before the employee made the
11-25    suggestion to the agency; or
11-26                (6)  proposes an idea that involves delayed hiring of
11-27    employees by the agency.
 12-1          SECTION 11.  Section 2108.027, Government Code, is amended to
 12-2    read as follows:
 12-3          Sec. 2108.027.  MULTIPLE AND JOINT SUGGESTIONS.  (a) If two
 12-4    or more employees or two or more state employee groups submit the
 12-5    same suggestion relating to the same agency, the first suggestion
 12-6    that the agency coordinator receives is eligible for consideration.
 12-7          (b)  If the same suggestion is received on the same day from
 12-8    two or more employees individually and the employees work [working]
 12-9    at different locations, a bonus granted for the suggestion may be
12-10    divided equally among the employees.
12-11          (c)  Two or three [more] employees may submit a joint
12-12    suggestion.  A bonus granted for the suggestion may be divided
12-13    equally among the employees.
12-14          SECTION 12.  Section 2108.037, Government Code, is amended to
12-15    read as follows:
12-16          Sec. 2108.037.  RETENTION OF FUNDS [FUNDS TRANSFER].  (a) The
12-17    [comptroller shall transfer the amount certified by the] commission
12-18    and the affected agency shall certify to the comptroller the amount
12-19    of [as] the actual or projected savings or increased revenues
12-20    attributable  to an implemented suggestion [from a fund affected by
12-21    the savings or increased revenues].
12-22          (b)  The affected agency shall retain the amount of the
12-23    actual or projected savings or increased revenues attributable to
12-24    an implemented suggestion, to the extent that the savings comes
12-25    from funds appropriated to the affected agency.  A portion of the
12-26    savings or revenues shall be used by the affected agency to pay
12-27    bonuses awarded by the commission under this subchapter. [The
 13-1    comptroller shall transfer the amount certified under Subsection
 13-2    (a) as follows:]
 13-3                [(1)  40 percent to the fund from which the original
 13-4    appropriation to the affected fund was made;]
 13-5                [(2)  40 percent to an appropriate fund from which the
 13-6    affected agency may award merit pay increases to individuals in the
 13-7    agency; and]
 13-8                [(3)  20 percent to the special fund established for
 13-9    the commission under Section 2108.038.]
13-10          [(c)  If increased productivity attributable to an
13-11    implemented suggestion results in savings or increased revenues
13-12    that can be computed as provided by Section 2108.023(c) but that
13-13    will not permit the affected agency to transfer or to have an
13-14    unexpended balance of appropriated money, the commission and the
13-15    affected agency shall certify the amount of actual or projected
13-16    savings or increased revenues that are attributable to the
13-17    suggestion, and the comptroller shall transfer 20 percent of that
13-18    amount from a fund affected by the savings or increased revenues to
13-19    the special fund established under Section 2108.038.]
13-20          SECTION 13.  Section 2108.038, Government Code, and
13-21    Subchapter C, Chapter 2108, Government Code, are repealed.
13-22          SECTION 14.  (a) This Act takes effect September 1, 1999.
13-23          (b)  As soon as possible after the effective date of this
13-24    Act, the governor shall designate:
13-25                (1)  a state agency with fewer than 1,000 full-time
13-26    employees whose chief administrative officer shall serve on the
13-27    Texas Incentive and Productivity Commission for a term expiring
 14-1    February 1, 2000; and
 14-2                (2)  a state agency with 1,000 or more full-time
 14-3    employees whose chief administrative officer shall serve on the
 14-4    Texas Incentive and Productivity Commission for a term expiring
 14-5    February 1, 2001.
 14-6          (c)  The productivity bonus program is abolished, except that
 14-7    the provisions regarding the productivity bonus program, Subchapter
 14-8    C, Chapter 2108, Government Code, as those provisions existed
 14-9    before their repeal, continue to exist for purposes of awarding
14-10    bonuses for which application is made in accordance with Section
14-11    2108.103, Government Code, before or on August 1, 1999.
14-12          SECTION 15.  The importance of this legislation and the
14-13    crowded condition of the calendars in both houses create an
14-14    emergency and an imperative public necessity that the
14-15    constitutional rule requiring bills to be read on three several
14-16    days in each house be suspended, and this rule is hereby suspended.