HBA-ALS H.B. 1208 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1208 By: Bosse State Affairs 2/19/1999 Introduced BACKGROUND AND PURPOSE The Texas Incentive and Productivity Commission (commission) administers employee involvement programs, which recognize and reward individual employees, teams, divisions, or entire agencies with certificates or cash awards, for suggestions to generate cost savings or improved efficiency, safety, or customer services. The commission is responsible for the administration of the State Employee Incentive Program (SEIP) and the Productivity Bonus Program (PBP). The commission is financed through appropriated receipts from a statutory share of savings or revenue derived from suggestions implemented through the SEIP and the PBP. Currently, the commission is subject to review under the Sunset Act and will be abolished on September 1, 1999. H.B. 1208 incorporates recommendations made by the Sunset Advisory Commission as a result of its review of the commission. The bill provides for the continuation of the commission and establishes the abolishment date of September 1, 2003. This bill also creates a single employee involvement program by eliminating the PBP and delegating its authority to SEIP, makes changes to the commission's current method of finance and funding, restructures the commissions's membership, authorizes the commission to grant recognition awards, and implements other statutory modifications. 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 (c), as follows: (a) Includes within the composition of the Texas Incentive and Productivity Commission (commission) the chief administrative officer of a state agency (chief officer), who is designated by the governor, that employs fewer than 1,000 full-time employees, rather than the agency administrator of the Texas Employment Commission. Redesignates existing Subdivisions (5) and (6) to Subdivisions (6) and (7), respectively. (d) Provides that the chief officers of the agencies, that are designated by the governor, serve a two-year term on the commission, with the term of one of the chief officers expiring February 1 of each even-numbered year and the term of the other chief officer expiring February 1 of each odd-numbered year. (e) Requires that appointments be made to the commission without regard to race, color, disability, sex, religion, age, or national origin of the appointees. 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. (a) Defines "Texas trade association." (b) Prohibits a person from being a public member of the commission and from being a commission employee who is employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of overtime exemption provisions and amendments of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), if the person, or the person's spouse is an officer, employee, or paid consultant of a Texas trade association who is in the field of administration of bonus, incentive, or related programs in private industry. (c) Prohibits a person from being a public member of the commission or acting as general counsel to the commission if the person is required to register as a lobbyist under Chapter 305 (Registration of Lobbyists), Government Code, because of that person's compensated activities on behalf of a profession that is related to the operation of the commission. Sec. 2108.0036. REMOVAL OF MEMBER. (a) Establishes that it is a ground for removal from the commission if a public member does not have the required qualifications under Section 2108.003 (Commission Composition; Presiding Officer; Terms) at the time of taking office; does not maintain those required qualifications during the commission service; is ineligible for membership under Section 2108.0035; cannot discharge the member's duties for a substantial part of the term due to illness or disability; or is absent from over half of the regularly scheduled commission meetings which the member is eligible to attend during a calendar year, unless the absence is excused by a majority vote of the commission. (b) Provides that the validity of a commission's action is not affected by the fact that it is taken when a ground for removal of a commission member exists. (c) Requires the executive director to notify the presiding officer of the commission if the executive director has knowledge that a potential ground for removal exists and the presiding officer to notify the governor and attorney general. Requires the executive director to notify the next highest ranking officer of the commission if the potential ground for removal involves the presiding officer. Requires that the next highest officer then notify the governor and the attorney general of the potential ground for removal. SECTION 3. Amends Section 2108.005, Government Code, to delete language authorizing the commission to designate separate division directors to oversee the administration of the state employee incentive program under Subchapter B (State Employee Incentive Program) and the productivity bonus program under Subchapter C (Productivity Bonus Program). SECTION 4. Amends 2108.007, Government Code, to provide that the commission is abolished and this chapter expires September 1, 2003, rather than September 1, 1999, unless the commission's existence continues under Chapter 325 (Texas Sunset Act). SECTION 5. Amends Subchapter A, Chapter 2108, Government Code, to add Sections 2108.008 through 2108.012, as follows: Sec. 2108.008. PERSONNEL MATTERS. (a) Requires the executive director or the executive director's designee(designee) to provide information concerning the requirements for office or employment under this chapter, including information regarding standards of conduct for state officers or employees, to commission members and agency employees as often as necessary. (b) Requires the commission to develop and implement policies that separate policymaking responsibilities of the commission and the management responsibilities of the executive director and commission staff. Sec. 2108.009. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT. (a) Requires the executive director or designee to prepare and maintain a written policy statement implementing 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) Provides that the policy statement must include personnel policies relating to personnel recruitment, evaluation, selection, training, and personnel promotion that show the commission's intent to avoid unlawful employment practices under Chapter 21, Labor Code (Employment Discrimination); an analysis of the extent to which the composition of the commission's personnel is in accordance with state and federal law; and a description of reasonable methods of achieving compliance with state and federal law. (c) Provides that the policy statement must be updated annually, 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. (a) Requires the commission to maintain a file on each written complaint filed with the commission which includes the name of the complainant, the date the complaint was received, the complaint's subject matter, the name of any person contacted regarding the complaint, a summary of the results of the review or investigation, and an explanation of the reason the file was closed if there was no action taken other than an investigation of the complaint. (b) Requires the commission to provide a copy of its policies and procedures relating to complaint investigation and resolution to the complainant and to each person who is a subject of the complaint. (c) Requires the commission to notify the complainant and each person who is a subject of the complaint of the status of the complaint at least quarterly until the complaint's final disposition, unless it would jeopardize an undercover operation. Sec. 2108.012. TRAINING. (a) Prohibits a person who is appointed to and qualifies for office as a public member of the commission from voting, deliberating, or being counted as a member in attendance at a meeting of the commission until the person completes a training program complying with this section. (b) Specifies the information that must be provided in the training program in regard to the commission's creation, programs, functions, rules, budget, audit results, required compliance with certain laws, and any applicable ethics policies. (c) Entitles a person appointed to the commission to reimbursement, as provided by the General Appropriations Act, for travel expenses incurred in attending the training program even if attendance occurred before the person qualified for office. SECTION 6. Amends Section 2108.021, Government Code, by adding Subdivision (8), to define "state employee group." SECTION 7. Amends Sections 2108.023(a), (b), and (c), Government Code, to delete language specifying funds appropriated or otherwise available as the source of an award granted to an eligible state employee who makes a specified suggestion relating to the reduction of state expenditures, revenue, productivity, or the quality of services. Deletes language authorizing the comptroller to transfer funds under this subchapter before the end of the first year in which a suggestion is implemented. Makes nonsubstantive changes. 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 the commission to grant a recognition award in the amount of $50 from funds appropriated or available for this purpose, to an eligible employee not otherwise eligible for a bonus under Section 2108.023 (Awards), who makes a suggestion that relates to a state agency and conserves energy, enhances safety, improves customer service, or results in the adoption of an innovation or improvement approved by the commission. (b) Provides that an award under this section must be approved by members of the commission and prohibits the commission staff from approving an award under this section. (c) Prohibits the commission 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 having each of its members eligible under Section 2108.024 (Employee Eligibility), to submit a suggestion as a group. Provides that each provision in this subchapter applying to a state employee or 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, except as provided by this section. (b) Provides that if a state employee group's suggestion results in savings or increased revenues to a state agency, including those resulting from increased productivity, that can be computed using a cost-benefit analysis and equal or exceed $100 after implementation cost, 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. (c) Requires the commission to divide any bonus among the members of the group if the suggestion is submitted by a state employee group. SECTION 9. Amends Section 2108.024, Government Code, as follows: Sec. 2108.024. New title: EMPLOYEE ELIGIBILITY TO PARTICIPATE. Excepts an employee who is an employee of the commission from those who are eligible to participate in the incentive program. SECTION 10. Amends Section 2108.026(b), Government Code, to include among the suggestions for which an employee is not eligible to receive an award under this subchapter, a suggestion that proposes an idea that involves delayed hiring of employees by the agency. Makes nonsubstantive changes. SECTION 11. Amends Section 2108.027, Government Code, to authorize two or three employees, rather than two or more, to submit a joint suggestion. Makes conforming and nonsubstantive changes. SECTION 12. Amends Section 2108.037, Government Code, as follows: Sec. 2108.037. New title: RETENTION OF FUNDS. Deletes existing title of "funds transfer." (a) Requires the commission 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 language requiring the comptroller to transfer the amount certified by the commission and the affected agency 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 savings or increased revenues attributable to an implemented suggestion to the extent that the savings comes from funds appropriated to the affected agency. Requires that a portion of the savings or revenues be used by the affected agency to pay bonuses awarded by the commission under this subchapter. Deletes language requiring the comptroller to transfer the amount certified under Subsection (a) in the specified manner. Deletes language relating to a situation in which the increased productivity is attributable to an implemented suggestion but the affected agency is not allowed to transfer money. SECTION 13. Repealer: Section 2108.038 (Special Fund) and Subchapter C (Productivity Bonus Program), Chapter 2108, 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 and whose chief officer is required to serve on the commission for a term expiring February 1, 2000, and (2) a state agency with 1,000 or more full-time employees whose chief officer is required to serve on the commission for a term expiring February 1, 2001. (c) Provides that the productivity bonus program is abolished, except for provisions regarding the productivity bonus program, Subchapter C, Chapter 2108, Government Code, as those provisions existed before their repeal, that continue to exist for purposes of awarding bonuses for which application is made in accordance with Section 2108.103, Government Code (Application), before August 1, 1999. SECTION 15. Emergency clause.