HBA-DMD S.B. 355 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 355 By: Harris State Affairs 4/13/1999 Engrossed BACKGROUND AND PURPOSE The Texas Incentive and Productivity Commission (TIPC) was created in 1989 to administer employee involvement programs that support the statewide goal of encouraging effective and efficient state government operations. TIPC is responsible for the administration of the State Employee Incentive Programs (SEIP) and the Productivity Bonus Program (PBP). SEIP is an employee suggestion system which recognizes and reward employees through certificates and cash awards. PBP recognizes employees as a team, division, or entire agency that develops a productivity plan that reduces agency costs without reducing service quality. TIPC will be abolished on September 1, 1999, unless continued by the Legislature. S.B. 355 continues TIPC until September 1, 2003 and modifies the composition of TIPC. This bill requires TIPC to develop and implement policies that clearly separate the policymaking responsibilities of TIPC and the management responsibilities of the executive director and the staff of TIPC. This bill also authorizes TIPC to grant a recognition award in the amount of $50 to an eligible state employee who makes certain suggestions. It abolishes the productivity bonus program before or on August 1, 1999, with certain exceptions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2108.003, Government Code, by amending Subsections (a) and (d) and adding Subsection (e), as follows: (a) Modifies the composition of the Texas Incentive and Productivity Commission (TIPC). (d) Sets forth the terms of the chief administrative officers. (e) Sets forth standard Sunset language regarding equal opportunity. SECTION 2. Amends Subchapter A, Chapter 2108, Government Code, by adding Sections 2108.0035 and 2108.0036, as follows: Sec. 2108.0035. ELIGIBILITY FOR COMMISSION MEMBERSHIP OR EMPLOYMENT. Defines "Texas trade association" in this section. Sets forth standard Sunset language regarding prohibitions against conflicts of interest. Sec. 2108.0036. REMOVAL OF MEMBER. Sets forth standard Sunset language regarding removal. SECTION 3. Amends Section 2108.005, Government Code, to delete text authorizing TIPC to designate separate division directors to oversee the administration of the state employee incentive program under Subchapter B (State Employee Incentive Program), Chapter 2108, Government Code, and the productivity bonus program under Subchapter C (Productivity Bonus Program), Chapter 2108, Government Code. SECTION 4. Amends Section 2108.007, Government Code, to continue TIPC until September 1, 2003, rather than 1999. SECTION 5. Amends Subchapter A, Chapter 2108, Government Code, by adding Sections 2108.008 through 2108.012, as follows: Sec. 2108.008. PERSONNEL MATTERS. (a) Requires the executive director or the executive director's designee to provide to members of TIPC and to agency employees, as often as necessary, information regarding the requirements for office or employment under this chapter, including information regarding a person's responsibilities under applicable laws relating to standards of conduct for state officers or employees. (b) Requires TIPC to develop and implement policies that clearly separate the policymaking responsibilities of TIPC and the management responsibilities of the executive director and the staff of TIPC. Sec. 2108.009. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT. (a) Requires the executive director or the executive director's designee to prepare and maintain a written policy statement that implements a program of equal employment opportunity to ensure that all personnel decisions are made without regard to race, color, disability, sex, religion, age, or national origin. (b) Specifies the provisions required to be included in the policy statement. (c) Provides that the policy statement must be updated annually, be reviewed by the Texas Commission on Human Rights for compliance with Subsection (b), and be filed with the governor's office. Sec. 2108.010. PUBLIC TESTIMONY. Sets forth standard Sunset language regarding public testimony. Sec. 2108.011. COMPLAINTS. Sets forth standard Sunset language regarding complaints. Sec. 2108.012. TRAINING. Sets forth standard Sunset language regarding TIPC member training. SECTION 6. Amends Section 2108.021, Government Code, by adding Subdivision (8), to define "state employee group." SECTION 7. Amends Subsections (a), (b), and (c), Section 2108.023, Government Code, as follows: (a) Deletes the specification that an award granted by TIPC to an eligible state employee must come from funds appropriated or otherwise available for this purpose. (b) Deletes text authorizing the comptroller to transfer funds under this subchapter. (c) Makes a conforming change. SECTION 8. Amends Subchapter B, Chapter 2108, Government Code, by adding Sections 2108.0235 and 2108.0236, as follows: Sec. 2108.0235. RECOGNITION AWARD. (a) Authorizes TIPC, from funds appropriated or otherwise available for this purpose, to grant a recognition award in the amount of $50 to an eligible state employee who makes certain suggestions. (b) Provides that an award under this section must be approved by members of TIPC. Prohibits the staff of TIPC from approving an award under this section. (c) Prohibits TIPC from granting more than 150 awards for suggestions under this section each state fiscal year. Sec. 2108.0236. STATE EMPLOYEE GROUPS. (a) Authorizes a state employee group, each member of which is eligible under Section 2108.024, to submit a suggestion as a group. Provides that except as provided by this section, each provision in this subchapter that applies to a state employee or a state employee suggestion applies, as appropriate, to a state employee group, each member of a state employee group, or a suggestion submitted by a state employee group. (b) Provides that a state employee group is eligible for a total bonus of 10 percent of the first-year net savings or revenue increases, not to exceed an award of $5,000 for each member of the state employee group, if the state employee group's suggestion results in savings or increased revenues to a state agency, including savings or increased revenues that result from increased productivity, that can be computed using a cost-benefit analysis, and equal or exceed $100 after implementation costs. (c) Requires TIPC to divide any bonus for a suggestion submitted by a state employee group equally among the members of the group. SECTION 9. Amends Section 2108.024, Government Code, as follows: Sec. 2108.024. New Title: EMPLOYEE ELIGIBILITY TO PARTICIPATE. Includes an employee of TIPC among the list of employees who are ineligible to participate in the incentive program. SECTION 10. Amends Subsection (b), Section 2108.026, Government Code, to include a suggestion that proposes an idea that involves delaying hiring of employees by the agency among the provisions that make an employee ineligible to receive an award under this subchapter. SECTION 11. Amends Section 2108.027, Government Code, to include two or more state employee groups that submit the same suggestion relating to the same agency, as a condition that the first suggestion that the agency coordinator receives is eligible for consideration. Authorizes two or three, rather than two or more, employees to submit a joint suggestion. Makes nonsubstantive changes. SECTION 12. Amends Section 2108.037, Government Code, as follows: Sec. 2108.037. New Title: RETENTION OF FUNDS. (a) Requires TIPC and the affected agency to certify to the comptroller the amount of the actual or projected savings or increased revenues attributable to an implemented suggestion. Deletes text requiring the comptroller to transfer the amount certified by TIPC as the actual or projected savings or increased revenues attributable to an implemented suggestion from a fund affected by the savings or increased revenues. (b) Requires the affected agency to retain the amount of the actual or projected savings or increased revenues attributable to an implemented suggestion, to the extent that the savings comes from funds appropriated to the affected agency. Requires a portion of the savings or revenues to be used by the affected agency to pay bonuses awarded by TIPC under this subchapter. Deletes text specifying the amount that the comptroller is required to transfer. Deletes Subsection (c), relating to a suggestion that results in savings or increased revenues. SECTION 13. Repealers: Section 2108.038 (Special Fund), Government Code. Subchapter C (Productivity Bonus Program), Chapter 2108 (Employee Incentive and Agency Productivity), Government Code. SECTION 14. (a) Effective date: September 1, 1999. (b) Requires the governor, as soon as possible after the effective date of this Act, to designate: (1) a state agency with fewer than 1,000 full-time employees whose chief administrative officer is required to serve on TIPC for a term expiring February 1, 2000; and (2) a state agency with 1,000 or more full-time employees whose chief administrative officer is required to serve on TIPC for a term expiring February 1, 2001. (c) Abolishes the productivity bonus program, except that the provisions regarding the productivity bonus program, Subchapter C, Chapter 2108, Government Code, as those provisions existed before their repeal, continue to exist for purposes of awarding bonuses for which application is made in accordance with Section 2108.103 (Application), Government Code, before or on August 1, 1999. SECTION 15.Emergency clause.