1733-S AAS 4/15/93 S2871.1
SHB 1733 - S COMM AMD
By Committee on Government Operations
ADOPTED 4/15/93
Strike everything after the enacting clause and insert the following:
"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 secretary of state who shall act as chairperson;
(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 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 41.60.020 and 1982 c 167 s 7 are each amended to read as follows:
(1) The board shall formulate, establish, and maintain an employee suggestion program to encourage and reward meritorious suggestions by state employees that will promote efficiency and economy in the performance of any function of state government: PROVIDED, That the program shall include provisions for the processing of suggestions having multi-agency impact and post-implementation auditing of suggestions for fiscal accountability.
(2) The board shall prepare, at least annually, a topical list of all the productivity awards granted and disseminate this information to all the state government agencies that may be able to adapt them to their procedures.
(3) The board shall adopt rules and regulations necessary or appropriate for the proper administration and for the accomplishment of the purposes of this chapter.
Sec. 4. 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. 5. 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. 6. 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. 7. 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. 8. 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."
SHB 1733 - S COMM AMD
By Committee on Government Operations
ADOPTED 4/15/93
In line 1 of the title, after "programs;" strike the remainder of the title and insert "amending RCW 41.60.010, 41.60.015, 41.60.020, 41.60.100, 41.60.110, 41.60.120, and 41.60.160; providing an effective date; and declaring an emergency."
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