Bill Text: HI HB1731 | 2012 | Regular Session | Introduced

Hawaii House Bill 1731 (Prior Session Legislation)

Introduced

Bill Title: Public Employee Suggestion Program

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-27 - (H) The committee(s) on LAB recommend(s) that the measure be deferred. [HB1731 Detail]

Download: Hawaii-2012-HB1731-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1731
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO A PUBLIC EMPLOYEE SUGGESTION PROGRAM.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that it is in the best interest of the State to improve the efficiency and effectiveness of state government by providing better service to the residents and taxpayers of the State, increasing state government productivity, and decreasing state government costs and waste. One method of achieving a more efficient and effective state government is to encourage the involvement of public employees in the development of innovative ideas that will increase productivity and service while decreasing costs.

The legislature further finds that a public employee incentive program that rewards public employees for innovative ideas by allowing the public employees to share the cost savings resulting from innovative ideas will help encourage public employee involvement in making the State more efficient and effective. Rewarding public employees for their ideas may also increase employee morale and enthusiasm, decrease employee turnover, and improve customer service.

The purpose of this Act is to establish a public employee suggestion program.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

public employee suggestion program

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Director" means the director of human resources development.

"Employee":

(1) Means all state employees, including those employees within the state personnel system and those exempt from the state personnel system; and

(2) Does not include:

(A) An employee of the division of budget, program planning and management, the office of the auditor, or the department of human resources development;

(B) An elected official; or

(C) An executive director, program manager, division director, or budget officer of a principal department, the president of a college or university, or the deputy of a director, officer, or president.

"Executive director" means a state agency's chief executive, similar senior level manager, managing director, or the executive director's designee.

"Idea application" means the application described in section -2.

"Projected savings" means an amount calculated by a state agency that may be realized by the agency directly as a result of an employee's idea application.

"Savings realized" means an amount calculated by a state agency that was actually realized by the agency as a direct result of an employee's idea application.

"State agency" means any department, board, bureau, commission, division, institution, office, or other agency of the executive, legislative, or judicial branch of the state government, including institutions of higher education.

§ -2 State employee idea application. (a) No later than July 1, 2013, the director shall create and make publicly available to all employees on the department of human resources development web site an idea application, substantially similar to the Air Force form AF 1000, to allow employees to suggest state agency improvements that may result in cost savings at the state agency at which the employee works. Each state agency executive director shall create agency-specific supplemental submission materials to the idea application if the materials are deemed necessary by the executive director to manage the submission process. Each state agency shall post the materials on their respective web sites.

(b) The idea application shall not be used for ideas that:

(1) Would result from obvious and progressive normal business practices, such as a foreseeable expectation that the idea would be implemented in a reasonable time frame as a result of evolving business or industry practice;

(2) Are obvious solutions to mandated budget cuts, such as abolishing vacant funded positions or reducing staff through layoffs;

(3) Result in cost avoidance as the method of documenting cost savings, such as no or lowered increases in costs for staff, supplies, or equipment;

(4) Result in revenue enhancement as the method of documenting cost savings, such as new or increased fees for services; or

(5) Simply shift the cost from one state agency to another.

§ -3 Evaluation criteria. No later than July 1, 2013, the director shall establish standard evaluation criteria substantially similar to the evaluation criteria used to evaluate the Air Force form AF 1000, by which all idea applications shall be evaluated. The director shall make the criteria available to all executive directors. Each state agency executive director may establish additional evaluation criteria specific to the agency if the additional criteria is deemed necessary by the executive director to manage the submission process.

§ -4 Idea application processing. (a) Any employee may complete an idea application. For processing, the employee shall submit the idea application to the executive director of the employee's state agency. No retaliatory action shall be taken against an employee for submitting an idea application.

(b) The identity of an employee who submits an idea application shall remain confidential and shall be redacted from the application until the employee has been determined to be eligible for an honorary award as specified in section ‑7, except that the identity of the employee may be made known to the executive director for purposes of obtaining reasonably necessary additional information related to the idea application.

(c) The executive director shall provide notification of receipt of the idea application to the employee within fifteen days after submission of the application. The executive director may automatically deny an idea application if the executive director deems the application to be duplicative of another application that was submitted within the prior twelve-month period or duplicative of a recommendation contained in an audit report from the state auditor or any privately contracted auditor, a joint budget committee staff document, or any other published evaluation of the Hawaii state government. The executive director shall provide notice of an automatic denial within fifteen days.

(d) The executive director shall cause, within forty-five business days from the date of submission of an idea application that was not automatically denied for reasons listed in this section or agency-specific evaluation criteria as developed by an executive director, a projected savings calculation to be made.

§ -5 Idea application decisionmaking. (a) The executive director shall approve or deny the employee's idea application within sixty business days after the date of submission of the idea application. For any idea application that is approved, the executive director shall identify, to the extent possible, any state laws or rules that would need to be changed as part of the review and approval process. The executive director shall submit a request for legislation to the governor regarding any approved idea application that requires legislation for implementation. Idea applications that do not require legislation for implementation shall be implemented by the state agency no later than July 1 of the fiscal year following acceptance of the idea application or as soon as reasonably possible.

(b) Once an idea application is submitted, reviewed, and accepted by the executive director, the employee shall be informed of the honorary award the employee may earn.

(c) A copy of any employee's idea application that is not approved, along with a copy of the executive director's response, and any document indicating the projected savings shall be submitted by the director to the department of budget and finance for review within sixty business days after submission of the idea application.

(d) The executive director shall maintain copies of all idea applications that are submitted, along with the following information for approved idea applications:

(1) A description of the innovative idea implemented;

(2) The total savings achieved in the first fiscal year or first full twelve-month period after full implementation;

(3) The total dollars awarded as an incentive to the employee who submitted the idea application;

(4) Any affected general appropriations act line item, if applicable; and

(5) An evaluation of the effectiveness in achieving the goals set forth in this chapter of the implemented idea and the honorary award to the employee.

§ -6 Idea application notice. (a) Beginning on or after July 1, 2013, all state agencies shall advertise that the idea application is available on the department of human resources development's web site, on any type of electronic payroll statements issued to employees, and in any electronic broadcast communication made to employees, so long as the advertisement for the idea application occurs at least monthly.

(b) The idea application and the advertisement described in subsection (a) shall include information related to the honorary award specified in section -7 that an employee may earn.

§ -7 Idea application honorary award verification and distribution. (a) Thirteen months after the innovative idea described in the idea application is fully implemented, the executive director shall calculate the savings realized for the first twelve months of full implementation. All documentation of the savings realized calculation shall be forwarded to the state auditor for review and verification no later than two months after the twelve months of full implementation of the innovative idea described in the idea application. The state auditor shall have one hundred twenty days from receipt of the savings realized calculation to:

(1) Conduct the review and verification of the savings realized calculation; and

(2) Submit a report with findings, recommendations, and conclusions to the legislature.

(b) The state auditor's report shall be submitted to the executive director who approved the idea application and to any member of the legislature who introduced any legislation to implement the idea.

(c) Except as provided in subsections (d) and (e), and unless otherwise prohibited, the savings realized as verified by the state auditor pursuant to subsection (a) shall be distributed no later than the last day of the eighteenth month following the implementation of the innovative idea, as follows:

(1) Five per cent, up to $5,000, of the savings realized as a one-time honorary award to the employee who submitted the idea application;

(2) Twenty-five per cent, up to $25,000, of the savings realized to the state agency that the employee's idea application directly affects; and

(3) The remainder to the state general fund.

(d) If the savings realized result in savings of federal moneys, the federal moneys saved shall not be distributed as specified in this section but shall either be used for a reallocation of moneys within the state agency or shall revert, depending on the use specified for those particular federal moneys.

(e) If the savings realized result in savings of moneys from public or private grants, gifts, awards, or donations where the use of the moneys is restricted, the restricted moneys shall not be distributed as specified in this section but shall either be used for a reallocation of moneys within the state agency or shall revert, depending on the use specified for the particular restricted moneys.

§ -8 Agency use of honorary award. (a) Except as provided in subsections (b), the state agency may use the distribution specified in section -7 for any projects that would increase that state agency's efficiency or improve services provided to state residents; provided that other than the distribution to an employee as specified in section ‑7(c)(1), the distribution shall not be used to hire additional full-time equivalent employees or for personnel services expenditures.

(b) Any realized savings that are distributed to the department of transportation, pursuant to section -7(c)(2), shall be transferred to the state highway fund, created in section 248-8, and shall only be used for material costs of road and bridge repairs.

§ -9 Right of action prohibited. Nothing in this chapter shall be construed to provide an employee with any grievance, dispute resolution, or appeals process with regard to any idea application submitted by the employee."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

Public Employee Suggestion Program

Description:

Establishes a public employee suggestion program with monetary incentives for the employee and agency for ideas that result in savings to the State.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.