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.