Z-0681.1 _______________________________________________
SENATE BILL 5779
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State of Washington 53rd Legislature 1993 Regular Session
By Senators Haugen, Drew, Owen, Deccio and Oke; by request of Productivity Board
Read first time 02/12/93. Referred to Committee on Government Operations.
AN ACT Relating to productivity awards programs; amending RCW 41.60.010, 41.60.015, 41.60.100, 41.60.110, 41.60.120, and 41.60.160; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 41.60.010 and 1987 c 387 s 1 are each amended to read as follows:
As used in this chapter:
(1) "Board" means the productivity board.
(2) "Employee suggestion program" means the program developed by the board under RCW 41.60.020.
(3) "Teamwork incentive program" means the program developed by the board under RCW 41.60.100 through 41.60.120.
(4) "State employees" means present employees in state agencies and institutions of higher education except for elected officials, directors of such agencies and institutions, and their confidential secretaries and administrative assistants and others specifically ruled ineligible by the rules of the productivity board.
Sec. 2. RCW 41.60.015 and 1987 c 387 s 2 are each amended to read as follows:
(1) There is hereby created the productivity
board. The board shall administer the employee suggestion program and the
teamwork incentive program under this chapter ((and shall review
applications for teamwork incentive pay for state employees under RCW
41.60.100, 41.60.110, and 41.60.120)).
(2) The board shall be composed of:
(a) The governor and the secretary of
state who shall act as ((chairperson)) cochairs of the board;
(b) The director of personnel appointed under the provisions of RCW 41.06.130 or the director's designee;
(c) The director of financial management or the director's designee;
(d) The personnel director appointed under the provisions of RCW 28B.16.060 or the director's designee;
(e) The director of general administration or the director's designee;
(f) Three persons with experience in administering incentives such as those used by industry, with the governor, lieutenant governor, and speaker of the house of representatives each appointing one person. The governor's appointee shall be a representative of an employee organization certified as an exclusive representative of at least one bargaining unit of classified employees, but no one organization may be represented for two consecutive terms;
(g) One person representing state agencies and institutions with employees subject to chapter 41.06 RCW, and one person representing those subject to chapter 28B.16 RCW, both to be appointed by the governor; and
(h) In addition, the ((governor and board
chairperson)) cochairs may jointly appoint persons to the board on
an ad hoc basis. Ad hoc members shall serve in an advisory capacity and shall
not have the right to vote.
Members under subsection (2) (f) and (g) of this section shall be appointed to serve three-year terms.
Members of the board appointed pursuant to subsection (2)(f) of this section may be compensated in accordance with RCW 43.03.240. Any board member who is not a state employee may be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.
Sec. 3. RCW 41.60.100 and 1989 c 56 s 2 are each amended to read as follows:
With the exception of agencies of the
legislative and judicial branches, any organizational unit composed of employees
in any agency or group of agencies of state government ((having
an identifiable budget or having its financial records maintained according to
an accounting system which identifies the expenditures and receipts properly
attributable to that unit)) with the ability to identify costs,
revenues, or both may apply to the board ((for selection as a candidate
for the award of)) to participate in the teamwork incentive ((pay
to its employees)) program. The application shall ((be submitted
prior to the beginning of any year and shall)) have the approval of the
heads of the agency or agencies within which the unit is located.
Applications shall be in the form specified by the board and contain such information as the board requires. This may include, but is not limited to, quantitative measures which establish a data base of program output or performance expectations, or both. This data base is used to evaluate savings in accordance with RCW 41.60.110(1).
The board shall evaluate the applications
submitted. From those proposals which are considered to be reasonable and
practical and which are found to include developed performance indicators which
lend themselves to a judgment of success or failure, the board shall select the
units to participate in the teamwork incentive ((pay)) program.
Sec. 4. RCW 41.60.110 and 1989 c 56 s 3 are each amended to read as follows:
(1) To qualify for ((the award of)) a
teamwork incentive ((pay to)) program award for its employees, a
unit selected shall demonstrate to the satisfaction of the board that it has
operated during the ((year)) period of participation at a lower
cost or with an increase in revenue with ((either an increase in the
level of services rendered or with)) no decrease in the level of services
rendered.
(a) A unit completing its ((first year))
period of participation shall compare costs or revenues during
that ((year)) period of participation to (i) the ((fiscal year))
expenditures or revenues for ((the year)) a comparable span of
time immediately preceding the first ((year)) period of
participation, or (ii) an average derived from the unit's historical data, or
(iii) engineered standards used in conjunction with an average derived from the
unit's historical data, or (iv) anticipated revenue as based on statistical
projections or historical data;
(b) A unit participating in the teamwork
incentive ((pay)) program for two or more consecutive ((years)) times
may choose to compare its costs during the current ((year)) period
of participation with (i) its costs or revenues for the immediately
preceding ((year)) period, or (ii) ((a yearly)) an
average of its costs or revenues for the preceding two or three ((years))
comparable spans of time in the teamwork incentive program;
(c) For the purposes of (a) of this subsection,
a unit's historical data shall be restricted to data generated during the
period of three years or less immediately preceding the unit's first ((year
of)) participation in the teamwork incentive ((pay)) program; and
(d) For the purposes of (b) of this subsection,
a unit's costs or revenues for preceding ((years)) periods of
time may include the costs or revenues calculated under (a) (i),
(ii), or (iii) of this subsection for ((years)) the periods of time
the unit participated in the teamwork incentive ((pay)) program.
(2) The board shall satisfy itself from documentation submitted by the organizational unit that the claimed cost of operation or level of higher revenue is real and not merely apparent and that it is not, in whole or in part, the result of:
(a) Chance;
(b) A lowering of the quality of the service rendered;
(c) Nonrecurrence of expenditures which were
single outlay, or one-time expenditures, in the preceding ((year)) comparable
period of time;
(d) Stockpiling inventories in the immediately
preceding ((year)) period so as to reduce requirements in the
eligible ((year)) time period;
(e) Substitution of federal funds, other receipts, or nonstate funds for programs currently receiving state appropriations;
(f) Unreasonable postponement of payments of
accounts payable until the ((year)) period immediately following
the eligible ((year)) period of participation;
(g) Shifting of expenses to another unit of government; or
(h) Any other practice, event, or device which the board decides has caused a distortion which makes it falsely appear that a savings or increase in revenue gains or an increase in level of services has occurred.
(3) The board shall consider as legitimate ((savings))
efficiencies those reductions in expenditures or increases in revenue
made possible by such items as the following:
(a) Reductions in overtime;
(b) Elimination of consultant fees;
(c) Less temporary help;
(d) Improved systems and procedures;
(e) Better deployment and utilization of personnel;
(f) Elimination of unnecessary travel;
(g) Elimination of unnecessary printing and mailing;
(h) Elimination of unnecessary payments for items such as advertising;
(i) Elimination of waste, duplication, and operations of doubtful value;
(j) Improved space utilization; ((and))
(k) Improved methods of collecting revenue or recovering money owed to the state; and
(l) Any other items determined by the board to represent cost savings or increased revenue.
Sec. 5. RCW 41.60.120 and 1989 c 56 s 4 are each amended to read as follows:
At the conclusion of the eligible ((year))
period, the board shall compare the expenditures or revenues for
that ((year)) period of each unit selected against the
expenditures or revenues of that unit for the immediately preceding ((year))
period or expenditures or revenues determined in accordance with
RCW 41.60.110(1) (a) and (b) and, after making such adjustments as in the
board's judgment are required to eliminate distortions, shall determine the
amount, if any, that the unit has reduced the unit's cost of operations or increased
its level of services or generated additional revenues to the state in
the eligible ((year)) period. Adjustments to eliminate
distortions may include any legislative increases in employee compensation and
inflationary increases in the cost of services, materials, and supplies. Adjustments
to additional revenue may include changes in client populations and the effects
of legal changes. If the board also determines that ((in the board's
judgment)) a unit qualifies for an award, the board shall award to the
employees of that unit a sum ((equal)) up to twenty-five percent
of the amount determined to be the savings or revenue increases to the
state for the level of services rendered. The amount awarded shall be divided
and distributed in ((equal shares)) accordance with board rules
to the employees of the unit, except that employees who worked for that unit
less than the ((twelve months of the year)) full period during which
the unit conducted a teamwork incentive program shall receive only a pro
rata share based on the fraction of the ((year)) period worked
for that unit. No individual share of the unit award may exceed the maximum
award established by rule adopted by the board. Funds for this teamwork
incentive ((pay)) award shall be drawn from the ((agency))
agencies in which the unit is located or from the benefiting fund or
account without appropriation when additional revenue is generated to the fund
or account.
Awards may be paid to teams for process changes which generate new or additional money for the general fund or any other funds of the state. The director of the office of financial management shall distribute moneys appropriated for this purpose with the concurrence of the productivity board. Transfers shall be made from other funds of the state to the general fund in amounts equal to award payments made by the general fund, for innovations generating new or additional money for those other funds.
Sec. 6. RCW 41.60.160 and 1987 c 387 s 8 are each amended to read as follows:
No award may be made under this chapter to any
elected state official or state agency director. ((No monetary award may be
made to persons exempt from the state civil service law under RCW 41.06.070 (5)
or (9).))
NEW SECTION. Sec. 7. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993.
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