1 TAC §§273.15, 273.23, 273.27
The Texas Incentive and Productivity Commission proposes
amendments to §§273.15, 273.23, and 273.27 concerning employee incentive
program administration.
The proposed amendments to the rules are being implemented to improve the
employee incentive program and are required changes by the 76th Legislature
(1999). The amendments recognize and reward further aspects of employee involvement,
including efforts for which quantifiable savings cannot be determined. The
amended rules will also effect the current methods of finance. This restructuring
will allow participating agencies to retain the majority of any realized savings,
and allow TIPC to focus on administering and promoting participation in its
programs.
Ed Bloom, Executive Director, has determined for the first five years that
the rules are in effect there will be no fiscal implications for state or
local government as a result of enforcing or administrating the rules as proposed.
Ed Bloom has also determined that for the first five years the rules will
be in effect, the public benefit will be monetary savings, increased revenue,
and improved services as a result of the amendment to the rules. There will
be no anticipated costs to persons who are required to comply with the amendments
as proposed. There will be no adverse economic effect on small businesses
as compared to the effect on large businesses.
Comments on the proposed amendments may be submitted to Ed Bloom, Executive
Director, Texas Incentive and Productivity Commission, P. O. Box 12482, Austin,
TX 78711; or via email at
ed.bloom@license.state.tx
.
STATUTORY AUTHORITY
The Commission proposes to adopt these rule amendments pursuant to Texas
Government Code, §2108.004 which authorizes the Commission to adopt rules.
The rule amendments to §273.15, Suggestion Submissions, affect Texas
Government Code §2108.026 regarding suggestion eligibility requirements, §2108.027
which concerns multiple and joint suggestions, and §2108.030 regarding
procedures after submission.
The rule amendments to §273.23, Agency Level Appeals, affect Texas
Government Code §2108.032 regarding the reevaluation of a suggestion, §2108.029
which provides eligibility determination by agency coordinators.
The rule amendments to §273.27, Awards, affect Texas Government Code §2108.021
Definitions, §2108.23 which provides for awards, §2108.026 regarding
suggestion eligibility requirements; code provisions newly enacted in the
1999 Legislature in Senate Bill (SB) 355, that added §2108.0235 which
provides for recognition awards; §2108.0236 which provides for bonuses
for group suggestions; §2108.027 which concerns multiple and joint suggestions; §2108.037
which permits agencies to retain the amount of actual or projected savings
attributable to implement suggestions.
§273.15. Suggestion Submissions.
(a)
Employee requirements. To be eligible for consideration
under the State Employee Incentive Program [
(the program)
], an
employee suggestion must:
(1)
be submitted [
to the agency coordinator
] in
the [
written
] form prescribed by the
Commission
[
commission
].
[
(2)
be signed by the employee;]
(2)
[
(3)
] propose a reasonable
method of implementation and describe the type of savings or other benefits
foreseen by the employee, if the suggestion is adopted by the agency.
(b)
Simultaneous suggestions.
(1)
If two or more employees submit the same or similar suggestions
(for the same target agency), the first received by the target agency's coordinator
in the prescribed written form is eligible for consideration.
(2)
If the same or similar suggestions are received on
the same day from employees working at different locations (by target agency's
coordinator), a bonus based on the implemented suggestion may be divided equally
among the employees submitting the information.
(3)
Each of the employees may be eligible for a certificate
of appreciation.
(c)
Group suggestions.
(1)
Two or more employees may submit a group suggestion using
forms prescribed by the
Commission
[
commission
].
(2)
A bonus based on such suggestion shall be divided
equally among those employees.
(3)
Each of the employees may be eligible for a certificate
of appreciation.
(4)
In the event that one or more of the employees in
a group suggestion are determined to be ineligible, the suggestion may be
resubmitted by the group of eligible employee(s).
(d)
Transmittal to the
Commission
[
commission
]. The agency coordinator shall transmit all employee suggestions, whether
eligible or ineligible, and the evaluation of each to the
Commission
[
commission
] not later than the 90th day after the day on
which the suggestion was received by the agency coordinator.
(e)
Extensions on transmittals. If the complexity of the suggestion
prevents the agency from adequately evaluating it in 90 days, the agency may
request an extension [
in writing
] to the
Commission
[
commission
]. The
Commission
[
commission
]
may grant such extension for a period of 90 days.
§273.23. Agency Level Appeals.
(a)
Employee's role.
(1)
An employee whose suggestion has been declined by an agency
and who has reasonable grounds to believe that the importance of the suggestion
has been overlooked, misunderstood, or misinterpreted may appeal the agency's
evaluation.
(2)
The employee must appeal [
in writing
]
not later than the 30th day after the day on which the employee receives notification
that the suggestion has been declined.
(3)
The employee shall provide any additional information
that he or she considers useful to the
re-evaluation
[
reevaluation
].
(b)
Agency's role.
(l)
The agency shall
re-evaluate
[
reevaluate
] the suggestion and report back to the employee within 30 days.
(2)
When possible, the
re-evaluation
[
reevaluation
] shall be conducted by someone at the agency other than those persons
involved in the initial evaluation.
[
(3)
The agency coordinator
will forward the employee's appeal and the agency's reevaluation to the commission
within 30 days of receipt of the employee's appeal.]
(c)
Commission's role.
(l)
The
Commission
[
commission
] may
review an agency-level appeal at its discretion.
(2)
The
Commission
[
commission
] may
seek additional information from the employee's agency regarding the appeal
or the
re-evaluation
[
reevaluation
].
§273.27. Awards.
(a)
Award. An award consists of a certificate of appreciation
and, if a suggestion results in a first-year net savings or increase in revenue
of $100 or more, a cash award.
(b)
Suggestion eligibility. Only an approved and implemented
employee suggestion is eligible for an award.
(c)
Cash award amount. An employee whose suggestion results
in a first-year net savings or increase in revenue of $100 or more is eligible
for a cash award of 10% of the first-year net savings or revenue increase,
up to a maximum of $5,000. If
two or three employees submit a
[
the
] suggestion [
is submitted by more than one employee
],
the
$5,000
cash award shall be divided equally among the employees.
If a state employee group of four or more employees submit a suggestion, the
group is eligible for a total bonus of 10% 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.
(d)
Recognition award. The Commission
may grant a recognition award in the amount of $50 to the eligible state employee
or employees who make a suggestion that is approved and otherwise ineligible
for a cash award.
(e)
[
(d)
] Award prior to full one-year
implementation. The Commission may grant an award before the completion of
the first year in which the suggestion is implemented, based on actual or
projected first-year net savings or increased revenue that are certified by
the affected state agency and the Commission.
(f)
[
(e)
] Taxes on cash awards. Cash
awards are considered wages for Social Security and income tax purposes.
(g)
[
(f)
] Processing cash awards. Upon
Commission receipt of notification that savings/revenue have been transferred
by the affected agency according to the allocations provided in the Government
Code, §2108.037, General Appropriations Act, and Comptroller's Accounting
Policy Statement #22, the Commission
shall notify the affected agency
in writing of the amount the employee is eligible to be awarded
[
will initiate processing payment of the net cash award
]. The Commission
will process a supplemental pay transaction or cause a supplemental pay transaction
to be made for the employee(s) submitting the suggestion. Necessary amounts
for withholding of employee income and Social Security taxes will be deducted
from the cash award. The originating agency will pay the employer share of
Social Security taxes.
(h)
[
(g)
] Processing cash awards for
former employees. When an award is payable to a former employee who will not
receive a W-2 form from an agency or institution of state government, the
Commission processes the award as miscellaneous income to the
former
employee. The individual receiving the award is responsible for paying
applicable taxes.
(i)
[
(h)
] Timing. All applicable transfers
shall be made and awards shall be distributed to the suggester within 90 days
of agency certification unless the Commission approves a request for alternate
timing.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on February 28, 2000.
TRD-200001496
Ed Bloom
Executive Director
Texas Incentive and Productivity Commission
Earliest possible date of adoption: April 9, 2000
For further information, please call: (512) 475-2393