Office of House Bill AnalysisH.B. 1208
By: Bosse
State Affairs


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


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 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

SECTION 2.  Amends Subchapter A, Chapter 2108, Government Code, by adding
Sections 2108.0035 and 2108.0036, as follows: 

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

(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

(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. 

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

 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.