SENATE BILL REPORT

SB 5437

BYSenators Lee, DeJarnatt and Warnke; by request of Secretary of State

Changing provisions relating to the productivity board.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 6, 1989; February 8, 1989

Majority Report:  Do pass and be referred to Senate Committee on Ways & Means.

      Signed by Senators Lee, Chairman; McMullen, Matson, Murray, Saling, Smitherman, Williams.

Senate Staff:Charles Woods (786-7452)

                  February 8, 1989

Senate Committee on Ways & Means

Senate Hearing Date(s):February 22, 1989; March 3, 1989

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bluechel, Cantu, Gaspard, Hayner, Johnson, Lee, Matson, Niemi, Owen, Saling, Smith, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Featherstone Reid (786-7715)

                  March 6, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 3, 1989

BACKGROUND:

The Productivity Board was created by Chapter 167, Section 1, Laws of 1982, to administer the employee suggestion program.  Amounts of awards to employees whose suggestions save an agency or department money or generate new revenue are determined by the board.  Agencies benefiting from an employee suggestion must pay the employee award from the savings at a rate of 10 percent of the amount saved.  The agency must also pay 10 percent of the amount saved to the board for the cost of administration of the chapter.

Agencies involved in the teamwork incentive program (TIP) must use prior year's figures to establish baseline standards for goal setting.  Some refer to this as a disincentive to re-enrollment in TIP.

SUMMARY:

Agencies no longer are required to pay an additional 10 percent of amounts saved to the Department of Personnel service fund to support the board's activities.  An appropriation of $50,000 from the general fund to the Office of Financial Management is made to cover awards for employee suggestions which provide increased revenue to the general fund.  A three-year rolling average could be used by agencies to establish baseline standards.

SUMMARY OF PROPOSED COMMITTEE AMENDMENTS:

Access to any state funds, not just the general fund, to honor award payments made under Productivity Board programs would be allowed.  This also helps to assure reimbursement to the general fund from such other funds that are ultimately benefited by employee suggestions that are adopted.

Appropriation:    $50,000 from the general fund

Revenue:    yes

Fiscal Note:      available

Effective Date:July 1, 1989

Senate Committee - Testified: ECONOMIC DEVELOPMENT & LABOR:  Ralph Munro, Secretary of State (pro); Carolyn Smith, Administrator for Productivity Board (pro); Charlie Jones, Department of Transportation (pro); Bob Towle, Department of Transportation (pro)

Senate Committee - Testified: WAYS & MEANS:  Ralph Munro, Secretary of State; Charles Jones, Department of Transportation