1-1     By:  Harris                                            S.B. No. 355
 1-2           (In the Senate - Filed February 5, 1999; February 9, 1999,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     March 8, 1999, reported favorably by the following vote:  Yeas 7,
 1-5     Nays 0; March 8, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the continuation and functions of the Texas Incentive
 1-9     and Productivity Commission.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 2108.003, Government Code, is amended by
1-12     amending Subsections (a) and (d) and adding Subsection (e) to read
1-13     as follows:
1-14           (a)  The commission is composed of:
1-15                 (1)  the governor;
1-16                 (2)  the lieutenant governor;
1-17                 (3)  the comptroller;
1-18                 (4)  the chief administrative officer of a state
1-19     agency, designated by the governor, that employs fewer than 1,000
1-20     full-time employees;
1-21                 (5)  the chief administrative officer of a state
1-22     agency, designated by the governor, that employs 1,000 or more
1-23     full-time employees [agency administrator of the Texas Employment
1-24     Commission];
1-25                 (6) [(5)]  the chairman of the Texas Higher Education
1-26     Coordinating Board or the chairman's designee; and
1-27                 (7) [(6)]  three public members appointed by the
1-28     governor who have experience in the administration of bonus,
1-29     incentive, or related programs used in private industry.
1-30           (d)  The chief administrative officers of the agencies
1-31     designated by the governor serve a two-year term on the commission,
1-32     with the term of one designated agency's chief administrative
1-33     officer expiring February 1 of each even-numbered year and the term
1-34     of the other designated agency's chief administrative officer
1-35     expiring February 1 of each odd-numbered year.  Public members
1-36     serve a two-year term, with the term of one member expiring
1-37     February 1 of each even-numbered year and the term of two members
1-38     expiring February 1 of each odd-numbered year.
1-39           (e)  Appointments to the commission shall be made without
1-40     regard to the race, color, disability, sex, religion, age, or
1-41     national origin of the appointees.
1-42           SECTION 2.  Subchapter A, Chapter 2108, Government Code, is
1-43     amended by adding Sections 2108.0035 and 2108.0036 to read as
1-44     follows:
1-45           Sec. 2108.0035.  ELIGIBILITY FOR COMMISSION MEMBERSHIP OR
1-46     EMPLOYMENT.  (a)  In this section, "Texas trade association" means
1-47     a cooperative and voluntarily joined association of business or
1-48     professional competitors in this state designed to assist its
1-49     members and its industry or profession in dealing with mutual
1-50     business or professional problems and in promoting their common
1-51     interest.
1-52           (b)  A person may not be a public member of the commission
1-53     and may not be a commission employee employed in a "bona fide
1-54     executive, administrative, or professional capacity," as that
1-55     phrase is used for purposes of establishing an exemption to the
1-56     overtime provisions of the federal Fair Labor Standards Act of 1938
1-57     (29 U.S.C. Section 201 et seq.) and its subsequent amendments, if:
1-58                 (1)  the person is an officer, employee, or paid
1-59     consultant of a Texas trade association in the field of the
1-60     administration of bonus, incentive, or related programs used in
1-61     private industry; or
1-62                 (2)  the person's spouse is an officer, manager, or
1-63     paid consultant of a Texas trade association in the field of the
1-64     administration of bonus, incentive, or related programs used in
 2-1     private industry.
 2-2           (c)  A person may not be a public member of the commission or
 2-3     act as general counsel to the commission if the person is required
 2-4     to register as a lobbyist under Chapter 305 because of the person's
 2-5     activities for compensation on behalf of a profession related to
 2-6     the operation of the commission.
 2-7           Sec. 2108.0036.  REMOVAL OF MEMBER.  (a)  It is a ground for
 2-8     removal from the commission if a public member:
 2-9                 (1)  does not have at the time of taking office the
2-10     qualifications required by Section 2108.003;
2-11                 (2)  does not maintain during service on the commission
2-12     the qualifications required by Section 2108.003;
2-13                 (3)  is ineligible for membership under Section
2-14     2108.0035;
2-15                 (4)  cannot, because of illness or disability,
2-16     discharge the member's duties for a substantial part of the
2-17     member's term; or
2-18                 (5)  is absent from more than half of the regularly
2-19     scheduled commission meetings that the member is eligible to attend
2-20     during a calendar year unless the absence is excused by a majority
2-21     vote of the commission.
2-22           (b)  The validity of an action of the commission is not
2-23     affected by the fact that it is taken when a ground for removal of
2-24     a commission member exists.
2-25           (c)  If the executive director of the commission has
2-26     knowledge that a potential ground for removal exists, the executive
2-27     director shall notify the presiding officer of the commission of
2-28     the potential ground.  The presiding officer shall then notify the
2-29     governor and the attorney general that a potential ground for
2-30     removal exists.  If the potential ground for removal involves the
2-31     presiding officer, the executive director shall notify the next
2-32     highest ranking officer of the commission, who shall then notify
2-33     the governor and the attorney general that a potential ground for
2-34     removal exists.
2-35           SECTION 3.  Section 2108.005, Government Code, is amended to
2-36     read as follows:
2-37           Sec. 2108.005.  EXECUTIVE DIRECTOR; STAFF.  [(a)]  The
2-38     commission may hire an executive director and other staff necessary
2-39     to perform its functions.
2-40           [(b)  The commission may designate separate division
2-41     directors to oversee the administration of the state employee
2-42     incentive program under Subchapter B and the productivity bonus
2-43     program under Subchapter C.]
2-44           SECTION 4.  Section 2108.007, Government Code, is amended to
2-45     read as follows:
2-46           Sec. 2108.007.  APPLICATION OF SUNSET ACT.  The Texas
2-47     Incentive and Productivity Commission is subject to Chapter 325
2-48     (Texas Sunset Act).  Unless continued in existence as provided by
2-49     that chapter, the commission is abolished and this chapter expires
2-50     September 1, 2003 [1999].
2-51           SECTION 5.  Subchapter A, Chapter 2108, Government Code, is
2-52     amended by adding Sections 2108.008 through 2108.012 to read as
2-53     follows:
2-54           Sec. 2108.008.  PERSONNEL MATTERS.  (a) The executive
2-55     director or the executive director's designee shall provide to
2-56     members of the commission and to agency employees, as often as
2-57     necessary, information regarding the requirements for office or
2-58     employment under this chapter, including information regarding a
2-59     person's responsibilities under applicable laws relating to
2-60     standards of conduct for state officers or employees.
2-61           (b)  The commission shall develop and implement policies that
2-62     clearly separate the policymaking responsibilities of the
2-63     commission and the management responsibilities of the executive
2-64     director and the staff of the commission.
2-65           Sec. 2108.009.  EQUAL EMPLOYMENT OPPORTUNITY POLICY
2-66     STATEMENT.  (a)  The executive director or the executive director's
2-67     designee shall prepare and maintain a written policy statement that
2-68     implements a program of equal employment opportunity to ensure that
2-69     all personnel decisions are made without regard to race, color,
 3-1     disability, sex, religion, age, or national origin.
 3-2           (b)  The policy statement must include:
 3-3                 (1)  personnel policies, including policies relating to
 3-4     recruitment, evaluation, selection, training, and promotion of
 3-5     personnel, that show the intent of the commission to avoid the
 3-6     unlawful employment practices described by Chapter 21, Labor Code;
 3-7     and
 3-8                 (2)  an analysis of the extent to which the composition
 3-9     of the commission's personnel is in accordance with state and
3-10     federal law and a description of reasonable methods to achieve
3-11     compliance with state and federal law.
3-12           (c)  The policy statement must:
3-13                 (1)  be updated annually;
3-14                 (2)  be reviewed by the Texas Commission on Human
3-15     Rights for compliance with Subsection (b)(1); and
3-16                 (3)  be filed with the governor's office.
3-17           Sec. 2108.010.  PUBLIC TESTIMONY.  The commission shall
3-18     develop and implement policies that provide the public with a
3-19     reasonable opportunity to appear before the commission and to speak
3-20     on any issue under the jurisdiction of the commission.
3-21           Sec. 2108.011.  COMPLAINTS.  (a) The commission shall
3-22     maintain a file on each written complaint filed with the
3-23     commission.  The file must include:
3-24                 (1)  the name of the person who filed the complaint;
3-25                 (2)  the date the complaint is received by the
3-26     commission;
3-27                 (3)  the subject matter of the complaint;
3-28                 (4)  the name of each person contacted in relation to
3-29     the complaint;
3-30                 (5)  a summary of the results of the review or the
3-31     investigation of the complaint; and
3-32                 (6)  an explanation of the reason the file was closed,
3-33     if the agency closed the file without taking action other than to
3-34     investigate the complaint.
3-35           (b)  The commission shall provide to the person filing the
3-36     complaint and to each person who is a subject of the complaint a
3-37     copy of the commission's policies and procedures relating to
3-38     complaint investigation and resolution.
3-39           (c)  The commission, at least quarterly until final
3-40     disposition of the complaint, shall notify the person filing the
3-41     complaint and each person who is a subject of the complaint of the
3-42     status of the complaint unless the notice would jeopardize an
3-43     undercover investigation.
3-44           Sec. 2108.012.  TRAINING.  (a) A person who is appointed to
3-45     and qualifies for office as a public member of the commission may
3-46     not vote, deliberate, or be counted as a member in attendance at a
3-47     meeting of the commission until the person completes a training
3-48     program that complies with this section.
3-49           (b)  The training program must provide the person with
3-50     information regarding:
3-51                 (1)  the legislation that created the commission;
3-52                 (2)  the programs operated by the commission;
3-53                 (3)  the role and the functions of the commission;
3-54                 (4)  the rules of the commission with an emphasis on
3-55     the rules that relate to disciplinary and investigatory authority;
3-56                 (5)  the current budget for the commission;
3-57                 (6)  the results of the most recent formal audit of the
3-58     commission;
3-59                 (7)  the requirements of:
3-60                       (A)  the open meetings law, Chapter 551;
3-61                       (B)  the public information law, Chapter 552;
3-62                       (C)  the administrative procedure law, Chapter
3-63     2001; and
3-64                       (D)  other laws relating to public officials,
3-65     including conflict of interest laws; and
3-66                 (8)  any applicable ethics policies adopted by the
3-67     commission or the Texas Ethics Commission.
3-68           (c)  A person appointed to the commission is entitled to
3-69     reimbursement, as provided by the General Appropriations Act, for
 4-1     the travel expenses incurred in attending the training program
 4-2     regardless of whether the attendance at the program occurs before
 4-3     or after the person qualifies for office.
 4-4           SECTION 6.  Section 2108.021, Government Code, is amended by
 4-5     adding Subdivision (8) to read as follows:
 4-6                 (8)  "State employee group" means a group of four or
 4-7     more state employees employed by the same state agency.
 4-8           SECTION 7.  Subsections (a), (b), and (c), Section 2108.023,
 4-9     Government Code, are amended to read as follows:
4-10           (a)  The [From funds appropriated or otherwise available for
4-11     this purpose, the] commission may grant an award to an eligible
4-12     state employee who makes a suggestion that:
4-13                 (1)  reduces state expenditures, increases state
4-14     revenues, increases agency productivity, or improves the quality of
4-15     state services; and
4-16                 (2)  is approved and implemented.
4-17           (b)  The commission may grant an award[, and the comptroller
4-18     may transfer funds under this subchapter,] before the end of the
4-19     first year in which a suggestion is implemented.
4-20           (c)  An award [or transfer of funds] must be computed on the
4-21     net annual actual or projected savings or increased revenues,
4-22     including savings or increased revenues that result from increased
4-23     productivity, that are certified by the affected state agency and
4-24     the commission.
4-25           SECTION 8.  Subchapter B, Chapter 2108, Government Code, is
4-26     amended by adding Sections 2108.0235 and 2108.0236 to read as
4-27     follows:
4-28           Sec. 2108.0235.  RECOGNITION AWARD.  (a) From funds
4-29     appropriated or otherwise available for this purpose, the
4-30     commission may grant a recognition award in the amount of $50 to an
4-31     eligible state employee who makes a suggestion that:
4-32                 (1)  relates to a state agency and:
4-33                       (A)  conserves energy;
4-34                       (B)  enhances safety;
4-35                       (C)  improves customer service; or
4-36                       (D)  results in the adoption of any other
4-37     innovation or improvement that is approved by the commission; and
4-38                 (2)  is not otherwise eligible for a bonus under
4-39     Section 2108.023.
4-40           (b)  An award under this section must be approved by members
4-41     of the commission.  The staff of the commission may not approve an
4-42     award under this section.
4-43           (c)  The commission may not grant more than 150 awards for
4-44     suggestions under this section each state fiscal year.
4-45           Sec. 2108.0236.  STATE EMPLOYEE GROUPS.  (a)  A state
4-46     employee group each member of which is eligible under Section
4-47     2108.024 may submit a suggestion as a group.  Except as provided by
4-48     this section, each provision in this subchapter that applies to a
4-49     state employee or a state employee suggestion applies, as
4-50     appropriate, to a state employee group, each member of a state
4-51     employee group, or a suggestion submitted by a state employee
4-52     group.
4-53           (b)  A state employee group is eligible for a total bonus of
4-54     10 percent of the first-year net savings or revenue increases, not
4-55     to exceed an award of $5,000 for each member of the state employee
4-56     group, if the state employee group's suggestion results in savings
4-57     or increased revenues to a state agency, including savings or
4-58     increased revenues that result from increased productivity, that:
4-59                 (1)  can be computed using a cost-benefit analysis; and
4-60                 (2)  equal or exceed $100 after implementation costs.
4-61           (c)  The commission shall divide any bonus for a suggestion
4-62     submitted by a state employee group equally among the members of
4-63     the group.
4-64           SECTION 9.  Section 2108.024, Government Code, is amended to
4-65     read as follows:
4-66           Sec. 2108.024.  EMPLOYEE ELIGIBILITY TO PARTICIPATE.  Each
4-67     state employee is eligible to participate in the incentive program
4-68     except an employee:
4-69                 (1)  who has authority to implement the suggestion
 5-1     being made;
 5-2                 (2)  who is on an unpaid leave of absence;
 5-3                 (3)  whose job description includes responsibility for
 5-4     cost analysis, efficiency analysis, savings implementation, or
 5-5     other similar programs in the employee's agency;
 5-6                 (4)  who is involved in or has access to agency
 5-7     research and development information used as the basis of the
 5-8     suggestion; [or]
 5-9                 (5)  whose job description or routine job duties
5-10     include developing the type of change in agency operations
5-11     recommended by the suggestion; or
5-12                 (6)  who is an employee of the commission.
5-13           SECTION 10.  Subsection (b), Section 2108.026, Government
5-14     Code, is amended to read as follows:
5-15           (b)  An employee is not eligible to receive an award under
5-16     this subchapter for a suggestion that:
5-17                 (1)  does not describe a method to achieve the desired
5-18     savings or benefit;
5-19                 (2)  proposes an idea under implementation or
5-20     consideration on the date the suggestion is given to the agency;
5-21                 (3)  relates only to personnel matters or grievances,
5-22     including employee classification or compensation;
5-23                 (4)  proposes a correction for a condition that
5-24     resulted only because applicable established procedures were not
5-25     properly followed; [or]
5-26                 (5)  proposes implementation of a policy or procedure
5-27     that the employee's agency adopted before the employee made the
5-28     suggestion to the agency; or
5-29                 (6)  proposes an idea that involves delayed hiring of
5-30     employees by the agency.
5-31           SECTION 11.  Section 2108.027, Government Code, is amended to
5-32     read as follows:
5-33           Sec. 2108.027.  MULTIPLE AND JOINT SUGGESTIONS.  (a)  If two
5-34     or more employees or two or more state employee groups submit the
5-35     same suggestion relating to the same agency, the first suggestion
5-36     that the agency coordinator receives is eligible for consideration.
5-37           (b)  If the same suggestion is received on the same day from
5-38     two or more employees individually and the employees work [working]
5-39     at different locations, a bonus granted for the suggestion may be
5-40     divided equally among the employees.
5-41           (c)  Two or three [more] employees may submit a joint
5-42     suggestion. A bonus granted for the suggestion may be divided
5-43     equally among the employees.
5-44           SECTION 12.  Section 2108.037, Government Code, is amended to
5-45     read as follows:
5-46           Sec. 2108.037.  RETENTION OF FUNDS [TRANSFER].  (a) The
5-47     [comptroller shall transfer the amount certified by the] commission
5-48     and the affected agency shall certify to the comptroller the amount
5-49     of [as] the actual or projected savings or increased revenues
5-50     attributable to an implemented suggestion [from a fund affected by
5-51     the savings or increased revenues].
5-52           (b)  The affected agency shall retain the amount of the
5-53     actual or projected savings or increased revenues attributable to
5-54     an implemented suggestion, to the extent that the savings comes
5-55     from funds appropriated to the affected agency.  A portion of the
5-56     savings or revenues shall be used by the affected agency to pay
5-57     bonuses awarded by the commission under this subchapter. [The
5-58     comptroller shall transfer the amount certified under Subsection
5-59     (a) as follows:]
5-60                 [(1)  40 percent to the fund from which the original
5-61     appropriation to the affected fund was made;]
5-62                 [(2)  40 percent to an appropriate fund from which the
5-63     affected agency may award merit pay increases to individuals in the
5-64     agency; and]
5-65                 [(3)  20 percent to the special fund established for
5-66     the commission under Section 2108.038.]
5-67           [(c)  If increased productivity attributable to an
5-68     implemented suggestion results in savings or increased revenues
5-69     that can be computed as provided by Section 2108.023(c) but that
 6-1     will not permit the affected agency to transfer or to have an
 6-2     unexpended balance of appropriated money, the commission and the
 6-3     affected agency shall certify the amount of actual or projected
 6-4     savings or increased revenues that are attributable to the
 6-5     suggestion, and the comptroller shall transfer 20 percent of that
 6-6     amount from a fund affected by the savings or increased revenues to
 6-7     the special fund established under Section 2108.038.]
 6-8           SECTION 13.  Section 2108.038, Government Code, and
 6-9     Subchapter C, Chapter 2108, Government Code, are repealed.
6-10           SECTION 14.  (a)  This Act takes effect September 1, 1999.
6-11           (b)  As soon as possible after the effective date of this
6-12     Act, the governor shall designate:
6-13                 (1)  a state agency with fewer than 1,000 full-time
6-14     employees whose chief administrative officer shall serve on the
6-15     Texas Incentive and Productivity Commission for a term expiring
6-16     February 1, 2000; and
6-17                 (2)  a state agency with 1,000 or more full-time
6-18     employees whose chief administrative officer shall serve on the
6-19     Texas Incentive and Productivity Commission for a term expiring
6-20     February 1, 2001.
6-21           (c)  The productivity bonus program is abolished, except that
6-22     the provisions regarding the productivity bonus program, Subchapter
6-23     C, Chapter 2108, Government Code, as those provisions existed
6-24     before their repeal, continue to exist for purposes of awarding
6-25     bonuses for which application is made in accordance with Section
6-26     2108.103, Government Code, before or on August 1, 1999.
6-27           SECTION 15.  The importance of this legislation and the
6-28     crowded condition of the calendars in both houses create an
6-29     emergency and an imperative public necessity that the
6-30     constitutional rule requiring bills to be read on three several
6-31     days in each house be suspended, and this rule is hereby suspended.
6-32                                  * * * * *