Bill Text: NH HB1670 | 2016 | Regular Session | Introduced
Bill Title: Relative to public employee suggestions for cost-savings measures.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2016-03-10 - Inexpedient to Legislate: Motion Adopted Voice Vote 03/09/2016 House Journal 23 P. 108 [HB1670 Detail]
Download: New_Hampshire-2016-HB1670-Introduced.html
HB 1670-FN - AS INTRODUCED
2016 SESSION
16-2289
06/10
HOUSE BILL 1670-FN
AN ACT relative to public employee suggestions for cost-savings measures.
SPONSORS: Rep. Flanagan, Hills. 26; Rep. Weyler, Rock. 13; Rep. Whitehouse, Straf. 2; Rep. L. Turcotte, Straf. 4; Sen. Sanborn, Dist 9
COMMITTEE: Finance
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ANALYSIS
This bill provides a one-time award equal to 10 percent of the savings achieved during the first year that a public employee’s cost-saving or revenue-producing suggestion is implemented.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
16-2289
06/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT relative to public employee suggestions for cost-savings measures.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 State Extraordinary Service Award Evaluation Committee. Amend RSA 99-E:1, III to read as follows:
III. In addition to such other communications to governor and council as are provided in this chapter, the state suggestion and extraordinary service award evaluation committee shall submit to the governor and council, the speaker of the house of representatives, and the president of the senate an annual report of its activities, including employees recognized and rewarded for extraordinary service [and], the reasons for recognition or recommended award, [together with a] and, notwithstanding any provision of RSA 91-A, an anonymous list or copy of all [proposals] cost-saving or revenue-producing employee suggestions submitted to it, whether or not implemented or recommended. The report shall be submitted by October 1 of each year.
2 State Extraordinary Service Award Evaluation Committee; 2018. Amend RSA 99-E:1, III to read as follows:
III. In addition to such other communications to governor and council as are provided in this chapter, the state suggestion and extraordinary service award evaluation committee shall submit to the governor and council, the speaker of the house of representatives, and the president of the senate an annual report of its activities, including employees recognized and rewarded [for extraordinary service,] and the reasons for recognition or recommended award, [and, notwithstanding any provision of RSA 91-A, an anonymous] together with a list or copy of all [cost-saving or revenue-producing employee suggestions] proposals submitted to it, whether or not implemented or recommended. The report shall be submitted by October 1 of each year.
3 Eligible Employees. Amend RSA 99-E:3 to read as follows:
99-E:3 Eligible Employees.
I. State employees eligible for awards or recognition for extraordinary service under this chapter shall be classified executive branch employees.
II. All state employees except commissioners and directors, judicial appointees, and executive and legislative branch elected officials shall be eligible for the employee suggestion awards. Any employee who is eligible for such award at the time the suggestion is made shall remain eligible, even if he or she leaves state employment.
4 Eligible Employees; 2018. Amend RSA 99-E:3 to read as follows:
99-E:3 Eligible Employees.
[I.] State employees eligible for awards or recognition [for extraordinary service] under this chapter shall be classified executive branch employees.
[II. All state employees except commissioners and directors, judicial appointees, and executive and legislative branch elected officials shall be eligible for the employee suggestion awards. Any employee who is eligible for such award at the time the suggestion is made shall remain eligible, even if he or she leaves state employment.]
5 Submission and Evaluation Procedures. Amend RSA 99-E:4, V(c) to read as follows:
(c) That additional information is needed. If additional information is needed, the committee shall specify the information required and[, unless the additional information relates to the implementation of a suggestion under RSA 99-E:5, III,] shall specify the date by which the information is to be provided. If the additional information is not received by the date specified, or any extended period of time allowed by the committee, the committee may decline to recommend the issuance of any award or recognition.
6 Submission and Evaluation Procedures; 2018. Amend RSA 99-E:4, V(c) to read as follows:
(c) That additional information is needed. If additional information is needed, the committee shall specify the information required and, unless the additional information relates to the implementation of a suggestion under RSA 99-E:5, III, shall specify the date by which the information is to be provided. If the additional information is not received by the date specified, or any extended period of time allowed by the committee, the committee may decline to recommend the issuance of any award or recognition.
7 Submission and Evaluation Procedures. Amend RSA 99-E:4, VII(e) to read as follows:
(e) If it believes that additional information is needed, a specification of the information required and[, unless the additional information relates to the implementation of a suggestion under RSA 99-E:5, III,] the date by which the information is to be provided. Unless otherwise specified, any additional information requested by the committee shall be gathered by the committee that forwarded the determination for review, or if no lower-level committee has forwarded the determination for review, by the person making the submission or nomination to the committee. If the additional information is not received by the date specified, or any extended period of time allowed by the committee, the committee may decline to recommend the issuance of any award or recognition.
8 Submission and Evaluation Procedures; 2018. Amend RSA 99-E:4, VII(e) to read as follows:
(e) If it believes that additional information is needed, a specification of the information required and, unless the additional information relates to the implementation of a suggestion under RSA 99-E:5, III, the date by which the information is to be provided. Unless otherwise specified, any additional information requested by the committee shall be gathered by the committee that forwarded the determination for review, or if no lower-level committee has forwarded the determination for review, by the person making the submission or nomination to the committee. If the additional information is not received by the date specified, or any extended period of time allowed by the committee, the committee may decline to recommend the issuance of any award or recognition.
9 Suggestion Award Standard. RSA 99-E:5 is repealed and reenacted to read as follows:
99-E:5 Suggestion Award Standard.
I.(a) Any employee may make a cost-saving suggestion to the departmental award evaluation committee or to the governor and the executive council.
(b) A suggestion made to the governor and council shall be assigned an identifying number. The governor and council shall forward the numbered suggestion to the state suggestion and extraordinary award evaluation committee. The governor and executive council shall not reveal the identity of the employee until an award is made under this section.
(c) The departmental award evaluation committee shall recommend monetary recognition as it deems appropriate to the state suggestion and extraordinary service evaluation committee.
II. The state suggestion and extraordinary service award evaluation committee shall investigate all suggestions and determine the estimated savings. All accepted suggestions shall be submitted to the governor and council for final approval. Any employee who makes a suggestion that is accepted and implemented shall receive a one-time award equal to 10 percent of the savings achieved during the initial 12-month period after implementation.
III. If an award is issued by the governor and council under paragraph II, such award may, in the discretion of the governor and council, be paid from the budget of the department or unit believed to have received the benefit of the suggestion or from the special fund established under RSA 99-E:7, V. If the unit from which the award is paid is self-funding, the award shall be paid from the unit’s operating budget. The commissioner of a department from which an award is to be paid under this paragraph shall certify any amounts so appropriated to the director of personnel for transfer and payment to the employee.
IV. If the state suggestion and extraordinary service award evaluation committee, in its discretion, concludes that a suggestion that has been successfully implemented in a single department, division, office, or other subdivision of the state may result in additional benefit if implemented on a larger scale, the committee may so state to the governor and executive council. In such a case, an employee may, on one additional occasion, be considered for additional award for the suggestion.
V. A suggestion shall not be eligible for award or recognition if the state extraordinary service award evaluation committee determines, in its discretion, that the suggestion was under consideration by the state prior to the time that the suggestion was made by the employee.
10 Suggestion Award Standard; 2018. RSA 99-E:5 is repealed and reenacted to read as follows:
99-E:5 Suggestion Award Standard.
I. A departmental award evaluation committee shall recommend such monetary or nonmonetary recognition as it, within its discretion, concludes is appropriate for original suggestions that the committee concludes may, if implemented, accomplish any of the following:
(a) Improve government cost savings.
(b) Improve government efficiency.
(c) Increase revenue to the state by a means other than the establishment of a new, or an increase in an existing, tax.
II. The state suggestion and extraordinary service award evaluation committee shall recommend to the governor and council such monetary awards as it, within its discretion, concludes are appropriate for original suggestions that may, if implemented, accomplish the ends specified in paragraph I. The state suggestion and extraordinary service award evaluation committee shall either recommend to the governor and council such nonmonetary recognition as the committee, within its discretion, believes is appropriate for original suggestions that, if implemented, may accomplish the ends specified in paragraph I, or itself issue such nonmonetary recognition.
III. Prior to making a recommendation for award, or recommending or issuing nonmonetary recognition, either a departmental award evaluation committee or the state suggestion and extraordinary service award evaluation committee may recommend that a suggestion be implemented and may defer its determination pending receipt of information relative to that implementation. If a suggestion has been implemented prior to the time that it has been submitted or nominated for award, the committee may defer its determination relative to award pending receipt of information on the success of such implementation, including, if applicable, the amount of any savings or revenue realized and the method of calculation. If the state suggestion and extraordinary service award evaluation committee concludes, in its discretion, that it is appropriate to do so, that committee may recommend or suggest implementation of a suggestion in units beyond those in which implementation has been accomplished or suggested and may, in its discretion, defer its determination relative to award pending receipt of information relative to that implementation.
IV. A suggestion shall not be eligible for award or recognition if the award evaluation committee determines, in its discretion, that the suggestion:
(a) Is of the type that is expected to be made as part of the employee’s regularly-assigned duties or job responsibilities;
(b) Was under consideration by the state prior to the time that the suggestion was made by the employee;
(c) Was previously made by another individual, whether or not previously submitted to an award evaluation committee; or
(d) Except as provided in RSA 99-E:4, X, is one for which the employee has previously been nominated for, or has received, a monetary award from the state under this chapter or its predecessor chapters.
11 Amount of Monetary Awards for Extraordinary Service. Amend RSA 99-E:7, to read as follows:
99-E:7 Amount of Monetary Awards for Extraordinary Service.
I. The amount of any monetary award recommended by a committee in regard to [any one suggestion or] extraordinary service shall not be greater than $5,000.
II. If an award evaluation committee determines, in its discretion, that an appropriate measure of award would be the amount of any savings or increase in revenue realized by the state as the result of a service performed by an employee[, or as the result of a suggestion which has been implemented,] the amount of a monetary award recommended by the committee may not exceed 10 percent of the amount of the savings or increase in revenue to the state during the [first fiscal year of the implementation of the suggestion, or the] fiscal year in which the service was performed, nor may it exceed the amount of $5,000.
III. If a monetary award is issued by the governor and council based upon the amount of savings or increase under paragraph II, an amount equal to the monetary award may, in the discretion of the governor and council, be paid from the budget of the specific department or the departments believed to have received the benefit of the [suggestion or] service during the [first fiscal year of implementation of a suggestion, or during the] fiscal year in which the service was performed. Any remaining savings or increases resulting from the [suggestion or] service shall lapse to the general fund. If the unit from which the award is paid is self-funding, the award shall be paid from the unit’s operating budget. The commissioner of a department from which an award is to be paid under this paragraph, shall certify any amounts so appropriated to the director of personnel for transfer and payment to the employee.
[IV. If a suggestion which has previously been submitted or nominated for award is again submitted or nominated under RSA 99-E:4, X as the result of larger-scale implementation, the amount of any additional monetary award recommended shall be in such amount as the committee, in its discretion, believes is proper, but shall not, in any event, exceed $5,000.
V.] IV. The total amount of monetary awards for extraordinary service recommended by the state suggestion and extraordinary service award evaluation committee between October 1 of one year and September 30 of the following year shall not exceed $10,000.
[VI.] V. There is hereby established in the office of the governor a special fund in the amount of $10,000, which shall be used for employee suggestion and extraordinary service awards, if any. Moneys in the special fund shall not lapse. If the entire appropriation is not used for employee suggestion and extraordinary service awards in any fiscal year, the amount appropriated for the fund in the next fiscal year shall be only such amount as is necessary to bring the total amount of the fund to $10,000.
[VII.] VI. This chapter shall not be construed to limit the availability of any employee award or recognition not arising pursuant to this chapter.
[VIII.] VII. The governor, with the consent of council, is hereby authorized to draw a warrant for monetary awards under this [chapter] section out of any money contained in the fund established under paragraph [VI] V. The governor and council shall not approve expenditures from the fund in excess of $10,000 in any fiscal year, shall not issue any single award in excess of the amount indicated in paragraph I[, or, in case of additional awards under paragraph IV, shall not issue any award in excess of the amount set forth in paragraph IV]. In issuing awards or recognition, the governor and council shall not be limited by any recommendation of the state suggestion and extraordinary service award evaluation committee. The decision of whether to issue a monetary award for [suggestions and] services under this chapter, and the amount thereof, if any, shall, with the foregoing limitations, be solely within the discretion of the governor and council.
[IX.] VIII. Award evaluation committees recommending monetary awards may consider, but shall not be required to make recommendations according to, the following suggested ranges of award for the following types of [suggestions or] services:
[(a) For suggestions to improve government cost savings, $500 to $2,500, or a percentage of the amount of savings as specified under paragraph II.
(b) For suggestions to improve government efficiency, $250 to $1,500, or a percentage of the amount of savings or revenue increase as specified under paragraph II.
(c) For suggestions to increase revenue to the state by a means other than the establishment of a new, or an increase in an existing, tax, $250 to $1,500 or a percentage of the amount of increase as specified under paragraph II.
(d)] (a) For services outside of or beyond the scope of an employee’s regular job responsibilities or functions involving circumstances where only immediate action by the employee could avoid or avert probable harm to an individual, to property, or to the financial interests of the state, $500 to $2,500, or a percentage of the amount of increase or savings as specified under paragraph II.
[(e)] (b) For services within the scope of an employee’s regular job responsibilities or functions involving the demonstration of abilities or efforts greatly above and beyond any standard of performance expected of the employee, $250 to $1,500 or a percentage of the amount of increase or savings as specified under paragraph II.
12 Amount of Monetary Awards for Extraordinary Service; 2018. Amend RSA 99-E:7, to read as follows:
99-E:7 Amount of Monetary Awards [for Extraordinary Service].
I. The amount of any monetary award recommended by a committee in regard to [extraordinary] any one suggestion or service shall not be greater than $5,000.
II. If an award evaluation committee determines, in its discretion, that an appropriate measure of award would be the amount of any savings or increase in revenue realized by the state as the result of a service performed by an employee, or as the result of a suggestion which has been implemented, the amount of a monetary award recommended by the committee may not exceed 10 percent of the amount of the savings or increase in revenue to the state during the first fiscal year of the implementation of the suggestion, or the fiscal year in which the service was performed, nor may it exceed the amount of $5,000.
III. If a monetary award is issued by the governor and council based upon the amount of savings or increase under paragraph II, an amount equal to the monetary award may, in the discretion of the governor and council, be paid from the budget of the specific department or the departments believed to have received the benefit of the suggestion or service during the first fiscal year of implementation of a suggestion, or during the fiscal year in which the service was performed. Any remaining savings or increases resulting from the suggestion or service shall lapse to the general fund. If the unit from which the award is paid is self-funding, the award shall be paid from the unit’s operating budget. The commissioner of a department from which an award is to be paid under this paragraph, shall certify any amounts so appropriated to the director of personnel for transfer and payment to the employee.
IV. If a suggestion which has previously been submitted or nominated for award is again submitted or nominated under RSA 99-E:4, X as the result of larger-scale implementation, the amount of any additional monetary award recommended shall be in such amount as the committee, in its discretion, believes is proper, but shall not, in any event, exceed $5,000.
V. The total amount of monetary awards [for extraordinary service] recommended by the state suggestion and extraordinary service award evaluation committee between October 1 of one year and September 30 of the following year shall not exceed $10,000.
[V.] VI. There is hereby established in the office of the governor a special fund in the amount of $10,000, which shall be used for employee suggestion and extraordinary service awards, if any. [Monies in the special fund shall not lapse.] If the entire appropriation is not used for employee suggestion and extraordinary service awards in any fiscal year, the amount appropriated for the fund in the next fiscal year shall be only such amount as is necessary to bring the total amount of the fund to $10,000.
[VI.] VII. This chapter shall not be construed to limit the availability of any employee award or recognition not arising pursuant to this chapter.
[VII.] VIII. The governor, with the consent of council, is hereby authorized to draw a warrant for monetary awards under this [section] chapter out of any money contained in the fund established under paragraph VI. The governor and council shall not approve expenditures from the fund in excess of $10,000 in any fiscal year, shall not issue any single award in excess of the amount indicated in paragraph I or, in the case of additional awards under paragraph IV, shall not issue any award in excess of the amount set forth in paragraph IV. In issuing awards or recognition, the governor and council shall not be limited by any recommendation of the state suggestion and extraordinary service award evaluation committee. The decision of whether to issue a monetary award for suggestions and services under this chapter, and the amount thereof, if any, shall, with the foregoing limitations, be solely within the discretion of the governor and council.
[VIII.] IX. Award evaluation committees recommending monetary awards may consider, but shall not be required to make recommendations according to, the following suggested ranges of award for the following types of suggestions or services:
(a) For suggestions to improve government cost savings, $500 to $2,500, or a percentage of the amount of savings as specified under paragraph II.
(b) For suggestions to improve government efficiency, $250 to $1,500, or a percentage of the amount of savings or revenue increase as specified under paragraph II.
(c) For suggestions to increase revenue to the state by a means other than the establishment of a new, or an increase in an existing, tax, $250 to $1,500 or a percentage of the amount of increase as specified under paragraph II.
[(a)] (d) For services outside of or beyond the scope of an employee’s regular job responsibilities or functions involving circumstances where only immediate action by the employee could avoid or avert probable harm to an individual, to property, or to the financial interests of the state, $500 to $2,500, or a percentage of the amount of increase or savings as specified under paragraph II.
[(b)] (e) For services within the scope of an employee’s regular job responsibilities or functions involving the demonstration of abilities or efforts greatly above and beyond any standard of performance expected of the employee, $250 to $1,500 or a percentage of the amount of increase or savings as specified under paragraph II.
13 Nonmonetary Recognition. Amend RSA 99-E:8 to read as follows:
99-E:8 Nonmonetary Recognition for Extraordinary Service. A departmental award evaluation committee may, in its discretion, recommend, and the state suggestion and extraordinary service award evaluation committee may, in its discretion, issue or recommend, nonmonetary recognition in lieu of, or in addition to, recommending a monetary award for extraordinary service under this chapter. Nonmonetary recognition shall be in such form as the committee, in its discretion, believes is appropriate for the service rendered [or suggestion made].
14 Nonmonetary Recognition. Amend RSA 99-E:8 to read as follows:
99-E:8 Nonmonetary Recognition [for Extraordinary Service]. A departmental award evaluation committee may, in its discretion, recommend, and the state suggestion and extraordinary service award evaluation committee may, in its discretion, issue or recommend, nonmonetary recognition in lieu of, or in addition to, recommending a monetary award [for extraordinary service] under this chapter. Nonmonetary recognition shall be in such form as the committee, in its discretion, believes is appropriate for the service rendered or suggestion made.
I. Sections 2, 4, 6, 8, 10, 12, and 14 of this act shall take effect September 1, 2018.
II. The remainder of this act shall take effect 60 days after its passage.
16-2289
Revised 1/15/16
HB 1670-FN- FISCAL NOTE
AN ACT relative to public employee suggestions for cost-savings measures.
FISCAL IMPACT:
The Department of Administrative Services states this bill, as introduced, may have an indeterminable fiscal impact on state expenditures in FY 2017 and FY 2018. There will be no fiscal impact to state, county, and local revenue or county and local expenditures.
METHODOLOGY:
The Department of Administrative Services states this bill makes temporary changes to the State's Extraordinary Suggestion and Extraordinary Service Award Program, effective only during FY 2017 and FY 2018, after which the law reverts to its current form. For the applicable time period, this bill expands the list of eligible employees, modifies the mechanisms for evaluation, and increases the monetary awards. The Department states the $10,000 yearly amount currently budgeted for all awards would only apply to extraordinary service awards. The Department assumes award amounts for suggestions would be paid out of agency budgets. This bill establishes the amount of awards for cost savings at ten percent of any savings achieved during the initial twelve month period after implementation. The Department is unable to estimate the fiscal impact of this bill because it is not known how many employees may be eligible for awards or what the total savings and total payouts would be.
The Governor's Office states this bill will have no fiscal impact on its budget.
