FINAL BILL REPORT

HB 1480

                                   C 56 L 89

BYRepresentatives Hankins, Sayan, R. Fisher, Belcher and Fraser; by request of Secretary of State

Changing provisions relating to the productivity board.

House Committe on State Government

House Committe on Appropriations

Senate Committee on Economic Development & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

The 10 member Productivity Board was established in 1982 to oversee two programs designed to encourage and reward suggestions by state employees to improve the efficiency of government operations.

The Employee Suggestion Program offers a cash incentive to employees whose suggestions result in cost savings or cost avoidances for a state agency.  The award comes from the agency's appropriation and consists of 10 percent of one year's savings, up to $10,000.  Agencies may grant leave in lieu of cash awards for cost avoidances.

Awards for suggestions which generate revenue can be drawn from the general fund with joint approval of the Productivity Board and the Director of the Office of Financial Management, subject to legislative appropriation.

Under the Teamwork Incentive Program (TIP), an agency work unit prepares quantifiable measures of program output and performance and, at the end of a year of participation, compares its operating costs to a) the prior year, b) an average of no more than three prior years, or c) engineered standards.  Units participating for more than one year compare current year costs only to costs from the prior year.  TIP awards are 25 percent of identified cost savings, distributed pro rata among members of the work unit.

Agencies may also give recognition awards to employees, not to exceed $50 in value.

The Productivity Board is funded by an appropriation from the personnel service fund.  Agencies transfer 10 percent of any savings gained from the Employee Suggestion Program or TIP to the service fund.  The board makes the final decision on all awards.

SUMMARY:

A number of changes are made to the administration of the Employee Suggestion and Teamwork Incentive programs.

Awards for employee suggestions that generate revenue to the general fund or other funds are to be distributed by the Director of the Office of Financial Management (OFM) from monies appropriated to OFM for that purpose.  If a suggestion generates revenue to a fund other than the general fund, transfers are to be made from the other fund to the general fund to cover the cost of award payments.  Employees are no longer eligible for leave in lieu of a cash award under the Employee Suggestion Program.

Agencies are no longer required to transfer 10 percent of cash savings generated by the Employee Suggestion or Teamwork Incentive programs to the personnel service fund for support of the Productivity Board.

Work units participating in the Teamwork Incentive Program for two or more consecutive years may elect to compare their operating costs to average costs for the previous two or three years, rather than relying solely on the prior year's figures for comparison.

The maximum value of recognition awards is increased from $50 to $100.

VOTES ON FINAL PASSAGE:

      House 95   0

      Senate    45     0

EFFECTIVE:July 1, 1989