By:  Harris                                            S.B. No. 355
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the continuation and functions of the Texas Incentive
 1-2     and Productivity Commission.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 2108.003, Government Code, is amended by
 1-5     amending Subsections (a) and (d) and adding Subsection (e) to read
 1-6     as follows:
 1-7           (a)  The commission is composed of:
 1-8                 (1)  the governor;
 1-9                 (2)  the lieutenant governor;
1-10                 (3)  the comptroller;
1-11                 (4)  the chief administrative officer of a state
1-12     agency, designated by the governor, that employs fewer than 1,000
1-13     full-time employees;
1-14                 (5)  the chief administrative officer of a state
1-15     agency, designated by the governor, that employs 1,000 or more
1-16     full-time employees [agency administrator of the Texas Employment
1-17     Commission];
1-18                 (6) [(5)]  the chairman of the Texas Higher Education
1-19     Coordinating Board or the chairman's designee; and
1-20                 (7) [(6)]  three public members appointed by the
1-21     governor who have experience in the administration of bonus,
1-22     incentive, or related programs used in private industry.
1-23           (d)  The chief administrative officers of the agencies
1-24     designated by the governor serve a two-year term on the commission,
 2-1     with the term of one designated agency's chief administrative
 2-2     officer expiring February 1 of each even-numbered year and the term
 2-3     of the other designated agency's chief administrative officer
 2-4     expiring February 1 of each odd-numbered year.  Public members
 2-5     serve a two-year term, with the term of one member expiring
 2-6     February 1 of each even-numbered year and the term of two members
 2-7     expiring February 1 of each odd-numbered year.
 2-8           (e)  Appointments to the commission shall be made without
 2-9     regard to the race, color, disability, sex, religion, age, or
2-10     national origin of the appointees.
2-11           SECTION 2.  Subchapter A, Chapter 2108, Government Code, is
2-12     amended by adding Sections 2108.0035 and 2108.0036 to read as
2-13     follows:
2-14           Sec. 2108.0035.  ELIGIBILITY FOR COMMISSION MEMBERSHIP OR
2-15     EMPLOYMENT.  (a)  In this section, "Texas trade association" means
2-16     a cooperative and voluntarily joined association of business or
2-17     professional competitors in this state designed to assist its
2-18     members and its industry or profession in dealing with mutual
2-19     business or professional problems and in promoting their common
2-20     interest.
2-21           (b)  A person may not be a public member of the commission
2-22     and may not be a commission employee employed in a "bona fide
2-23     executive, administrative, or professional capacity," as that
2-24     phrase is used for purposes of establishing an exemption to the
2-25     overtime provisions of the federal Fair Labor Standards Act of 1938
2-26     (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
 4-1     during a calendar year unless the absence is excused by a majority
 4-2     vote of the commission.
 4-3           (b)  The validity of an action of the commission is not
 4-4     affected by the fact that it is taken when a ground for removal of
 4-5     a commission member exists.
 4-6           (c)  If the executive director of the commission has
 4-7     knowledge that a potential ground for removal exists, the executive
 4-8     director shall notify the presiding officer of the commission of
 4-9     the potential ground.  The presiding officer shall then notify the
4-10     governor and the attorney general that a potential ground for
4-11     removal exists.  If the potential ground for removal involves the
4-12     presiding officer, the executive director shall notify the next
4-13     highest ranking officer of the commission, who shall then notify
4-14     the governor and the attorney general that a potential ground for
4-15     removal exists.
4-16           SECTION 3.  Section 2108.005, Government Code, is amended to
4-17     read as follows:
4-18           Sec. 2108.005.  EXECUTIVE DIRECTOR; STAFF.  [(a)]  The
4-19     commission may hire an executive director and other staff necessary
4-20     to perform its functions.
4-21           [(b)  The commission may designate separate division
4-22     directors to oversee the administration of the state employee
4-23     incentive program under Subchapter B and the productivity bonus
4-24     program under Subchapter C.]
4-25           SECTION 4.  Section 2108.007, Government Code, is amended to
4-26     read as follows:
 5-1           Sec. 2108.007.  APPLICATION OF SUNSET ACT.  The Texas
 5-2     Incentive and Productivity Commission is subject to Chapter 325
 5-3     (Texas Sunset Act).  Unless continued in existence as provided by
 5-4     that chapter, the commission is abolished and this chapter expires
 5-5     September 1, 2003 [1999].
 5-6           SECTION 5.  Subchapter A, Chapter 2108, Government Code, is
 5-7     amended by adding Sections 2108.008 through 2108.012 to read as
 5-8     follows:
 5-9           Sec. 2108.008.  PERSONNEL MATTERS.  (a)  The executive
5-10     director or the executive director's designee shall provide to
5-11     members of the commission and to agency employees, as often as
5-12     necessary, information regarding the requirements for office or
5-13     employment under this chapter, including information regarding a
5-14     person's responsibilities under applicable laws relating to
5-15     standards of conduct for state officers or employees.
5-16           (b)  The commission shall develop and implement policies that
5-17     clearly separate the policymaking responsibilities of the
5-18     commission and the management responsibilities of the executive
5-19     director and the staff of the commission.
5-20           Sec. 2108.009.  EQUAL EMPLOYMENT OPPORTUNITY POLICY
5-21     STATEMENT.  (a)  The executive director or the executive director's
5-22     designee shall prepare and maintain a written policy statement that
5-23     implements a program of equal employment opportunity to ensure that
5-24     all personnel decisions are made without regard to race, color,
5-25     disability, sex, religion, age, or national origin.
5-26           (b)  The policy statement must include:
 6-1                 (1)  personnel policies, including policies relating to
 6-2     recruitment, evaluation, selection, training, and promotion of
 6-3     personnel, that show the intent of the commission to avoid the
 6-4     unlawful employment practices described by Chapter 21, Labor Code;
 6-5     and
 6-6                 (2)  an analysis of the extent to which the composition
 6-7     of the commission's personnel is in accordance with state and
 6-8     federal law and a description of reasonable methods to achieve
 6-9     compliance with state and federal law.
6-10           (c)  The policy statement must:
6-11                 (1)  be updated annually;
6-12                 (2)  be reviewed by the Texas Commission on Human
6-13     Rights for compliance with Subsection (b)(1); and
6-14                 (3)  be filed with the governor's office.
6-15           Sec. 2108.010.  PUBLIC TESTIMONY.  The commission shall
6-16     develop and implement policies that provide the public with a
6-17     reasonable opportunity to appear before the commission and to speak
6-18     on any issue under the jurisdiction of the commission.
6-19           Sec. 2108.011.  COMPLAINTS.  (a)  The commission shall
6-20     maintain a file on each written complaint filed with the
6-21     commission.  The file must include:
6-22                 (1)  the name of the person who filed the complaint;
6-23                 (2)  the date the complaint is received by the
6-24     commission;
6-25                 (3)  the subject matter of the complaint;
6-26                 (4)  the name of each person contacted in relation to
 7-1     the complaint;
 7-2                 (5)  a summary of the results of the review or the
 7-3     investigation of the complaint; and
 7-4                 (6)  an explanation of the reason the file was closed,
 7-5     if the agency closed the file without taking action other than to
 7-6     investigate the complaint.
 7-7           (b)  The commission shall provide to the person filing the
 7-8     complaint and to each person who is a subject of the complaint a
 7-9     copy of the commission's policies and procedures relating to
7-10     complaint investigation and resolution.
7-11           (c)  The commission, at least quarterly until final
7-12     disposition of the complaint, shall notify the person filing the
7-13     complaint and each person who is a subject of the complaint of the
7-14     status of the complaint unless the notice would jeopardize an
7-15     undercover investigation.
7-16           Sec. 2108.012.  TRAINING.  (a)  A person who is appointed to
7-17     and qualifies for office as a public member of the commission may
7-18     not vote, deliberate, or be counted as a member in attendance at a
7-19     meeting of the commission until the person completes a training
7-20     program that complies with this section.
7-21           (b)  The training program must provide the person with
7-22     information regarding:
7-23                 (1)  the legislation that created the commission;
7-24                 (2)  the programs operated by the commission;
7-25                 (3)  the role and the functions of the commission;
7-26                 (4)  the rules of the commission with an emphasis on
 8-1     the rules that relate to disciplinary and investigatory authority;
 8-2                 (5)  the current budget for the commission;
 8-3                 (6)  the results of the most recent formal audit of the
 8-4     commission;
 8-5                 (7)  the requirements of:
 8-6                       (A)  the open meetings law, Chapter 551;
 8-7                       (B)  the public information law, Chapter 552;
 8-8                       (C)  the administrative procedure law, Chapter
 8-9     2001; and
8-10                       (D)  other laws relating to public officials,
8-11     including conflict of interest laws; and
8-12                 (8)  any applicable ethics policies adopted by the
8-13     commission or the Texas Ethics Commission.
8-14           (c)  A person appointed to the commission is entitled to
8-15     reimbursement, as provided by the General Appropriations Act, for
8-16     the travel expenses incurred in attending the training program
8-17     regardless of whether the attendance at the program occurs before
8-18     or after the person qualifies for office.
8-19           SECTION 6.  Section 2108.021, Government Code, is amended by
8-20     adding Subdivision (8) to read as follows:
8-21                 (8)  "State employee group" means a group of four or
8-22     more state employees employed by the same state agency.
8-23           SECTION 7.  Subsections (a), (b), and (c), Section 2108.023,
8-24     Government Code, are amended to read as follows:
8-25           (a)  The [From funds appropriated or otherwise available for
8-26     this purpose, the] commission may grant an award to an eligible
 9-1     state employee who makes a suggestion that:
 9-2                 (1)  reduces state expenditures, increases state
 9-3     revenues, increases agency productivity, or improves the quality of
 9-4     state services; and
 9-5                 (2)  is approved and implemented.
 9-6           (b)  The commission may grant an award[, and the comptroller
 9-7     may transfer funds under this subchapter,] before the end of the
 9-8     first year in which a suggestion is implemented.
 9-9           (c)  An award [or transfer of funds] must be computed on the
9-10     net annual actual or projected savings or increased revenues,
9-11     including savings or increased revenues that result from increased
9-12     productivity, that are certified by the affected state agency and
9-13     the commission.
9-14           SECTION 8.  Subchapter B, Chapter 2108, Government Code, is
9-15     amended by adding Sections 2108.0235 and 2108.0236 to read as
9-16     follows:
9-17           Sec. 2108.0235.  RECOGNITION AWARD.  (a)  From funds
9-18     appropriated or otherwise available for this purpose, the
9-19     commission may grant a recognition award in the amount of $50 to an
9-20     eligible state employee who makes a suggestion that:
9-21                 (1)  relates to a state agency and:
9-22                       (A)  conserves energy;
9-23                       (B)  enhances safety;
9-24                       (C)  improves customer service; or
9-25                       (D)  results in the adoption of any other
9-26     innovation or improvement that is approved by the commission; and
 10-1                (2)  is not otherwise eligible for a bonus under
 10-2    Section 2108.023.
 10-3          (b)  An award under this section must be approved by members
 10-4    of the commission.  The staff of the commission may not approve an
 10-5    award under this section.
 10-6          (c)  The commission may not grant more than 150 awards for
 10-7    suggestions under this section each state fiscal year.
 10-8          Sec. 2108.0236.  STATE EMPLOYEE GROUPS.  (a)  A state
 10-9    employee group each member of which is eligible under Section
10-10    2108.024 may submit a suggestion as a group.  Except as provided by
10-11    this section, each provision in this subchapter that applies to a
10-12    state employee or a state employee suggestion applies, as
10-13    appropriate, to a state employee group, each member of a state
10-14    employee group, or a suggestion submitted by a state employee
10-15    group.
10-16          (b)  A state employee group is eligible for a total bonus of
10-17    10 percent of the first-year net savings or revenue increases, not
10-18    to exceed an award of $5,000 for each member of the state employee
10-19    group, if the state employee group's suggestion results in savings
10-20    or increased revenues to a state agency, including savings or
10-21    increased revenues that result from increased productivity, that:
10-22                (1)  can be computed using a cost-benefit analysis; and
10-23                (2)  equal or exceed $100 after implementation costs.
10-24          (c)  The commission shall divide any bonus for a suggestion
10-25    submitted by a state employee group equally among the members of
10-26    the group.
 11-1          SECTION 9.  Section 2108.024, Government Code, is amended to
 11-2    read as follows:
 11-3          Sec. 2108.024.  EMPLOYEE ELIGIBILITY TO PARTICIPATE.  Each
 11-4    state employee is eligible to participate in the incentive program
 11-5    except an employee:
 11-6                (1)  who has authority to implement the suggestion
 11-7    being made;
 11-8                (2)  who is on an unpaid leave of absence;
 11-9                (3)  whose job description includes responsibility for
11-10    cost analysis, efficiency analysis, savings implementation, or
11-11    other similar programs in the employee's agency;
11-12                (4)  who is involved in or has access to agency
11-13    research and development information used as the basis of the
11-14    suggestion; [or]
11-15                (5)  whose job description or routine job duties
11-16    include developing the type of change in agency operations
11-17    recommended by the suggestion; or
11-18                (6)  who is an employee of the commission.
11-19          SECTION 10.  Subsection (b), Section 2108.026, Government
11-20    Code, is amended to read as follows:
11-21          (b)  An employee is not eligible to receive an award under
11-22    this subchapter for a suggestion that:
11-23                (1)  does not describe a method to achieve the desired
11-24    savings or benefit;
11-25                (2)  proposes an idea under implementation or
11-26    consideration on the date the suggestion is given to the agency;
 12-1                (3)  relates only to personnel matters or grievances,
 12-2    including employee classification or compensation;
 12-3                (4)  proposes a correction for a condition that
 12-4    resulted only because applicable established procedures were not
 12-5    properly followed; [or]
 12-6                (5)  proposes implementation of a policy or procedure
 12-7    that the employee's agency adopted before the employee made the
 12-8    suggestion to the agency; or
 12-9                (6)  proposes an idea that involves delayed hiring of
12-10    employees by the agency.
12-11          SECTION 11.  Section 2108.027, Government Code, is amended to
12-12    read as follows:
12-13          Sec. 2108.027.  MULTIPLE AND JOINT SUGGESTIONS.  (a)  If two
12-14    or more employees or two or more state employee groups submit the
12-15    same suggestion relating to the same agency, the first suggestion
12-16    that the agency coordinator receives is eligible for consideration.
12-17          (b)  If the same suggestion is received on the same day from
12-18    two or more employees individually and the employees work [working]
12-19    at different locations, a bonus granted for the suggestion may be
12-20    divided equally among the employees.
12-21          (c)  Two or three [more] employees may submit a joint
12-22    suggestion. A bonus granted for the suggestion may be divided
12-23    equally among the employees.
12-24          SECTION 12.  Section 2108.037, Government Code, is amended to
12-25    read as follows:
12-26          Sec. 2108.037.  RETENTION OF FUNDS [TRANSFER].  (a)  The
 13-1    [comptroller shall transfer the amount certified by the] commission
 13-2    and the affected agency shall certify to the comptroller the amount
 13-3    of [as] the actual or projected savings or increased revenues
 13-4    attributable to an implemented suggestion [from a fund affected by
 13-5    the savings or increased revenues].
 13-6          (b)  The affected agency shall retain the amount of the
 13-7    actual or projected savings or increased revenues attributable to
 13-8    an implemented suggestion, to the extent that the savings comes
 13-9    from funds appropriated to the affected agency.  A portion of the
13-10    savings or revenues shall be used by the affected agency to pay
13-11    bonuses awarded by the commission under this subchapter. [The
13-12    comptroller shall transfer the amount certified under Subsection
13-13    (a) as follows:]
13-14                [(1)  40 percent to the fund from which the original
13-15    appropriation to the affected fund was made;]
13-16                [(2)  40 percent to an appropriate fund from which the
13-17    affected agency may award merit pay increases to individuals in the
13-18    agency; and]
13-19                [(3)  20 percent to the special fund established for
13-20    the commission under Section 2108.038.]
13-21          [(c)  If increased productivity attributable to an
13-22    implemented suggestion results in savings or increased revenues
13-23    that can be computed as provided by Section 2108.023(c) but that
13-24    will not permit the affected agency to transfer or to have an
13-25    unexpended balance of appropriated money, the commission and the
13-26    affected agency shall certify the amount of actual or projected
 14-1    savings or increased revenues that are attributable to the
 14-2    suggestion, and the comptroller shall transfer 20 percent of that
 14-3    amount from a fund affected by the savings or increased revenues to
 14-4    the special fund established under Section 2108.038.]
 14-5          SECTION 13.  Section 2108.038, Government Code, and
 14-6    Subchapter C, Chapter 2108, Government Code, are repealed.
 14-7          SECTION 14.  (a)  This Act takes effect September 1, 1999.
 14-8          (b)  As soon as possible after the effective date of this
 14-9    Act, the governor shall designate:
14-10                (1)  a state agency with fewer than 1,000 full-time
14-11    employees whose chief administrative officer shall serve on the
14-12    Texas Incentive and Productivity Commission for a term expiring
14-13    February 1, 2000; and
14-14                (2)  a state agency with 1,000 or more full-time
14-15    employees whose chief administrative officer shall serve on the
14-16    Texas Incentive and Productivity Commission for a term expiring
14-17    February 1, 2001.
14-18          (c)  The productivity bonus program is abolished, except that
14-19    the provisions regarding the productivity bonus program, Subchapter
14-20    C, Chapter 2108, Government Code, as those provisions existed
14-21    before their repeal, continue to exist for purposes of awarding
14-22    bonuses for which application is made in accordance with Section
14-23    2108.103, Government Code, before or on August 1, 1999.
14-24          SECTION 15.  The importance of this legislation and the
14-25    crowded condition of the calendars in both houses create an
14-26    emergency and an imperative public necessity that the
 15-1    constitutional rule requiring bills to be read on three several
 15-2    days in each house be suspended, and this rule is hereby suspended.