HB 1505-FN – AS AMENDED BY THE HOUSE
HOUSE BILL 1505-FN
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT relative to public employee suggestions for cost-saving 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 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.
3 Suggestion Award Standard. RSA 99-E:5 is repealed and reenacted to read as follows:
99-E:5 Suggestion Award Standard.
I. Any employee may make a cost-saving suggestion to the departmental award evaluation committee or to the governor and the executive council.
(a) 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.
(b) 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.
4 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. 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.
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.
5 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].
6 Effective Date. This act shall take effect 60 days after its passage.
HB 1505 FISCAL NOTE
AN ACT relative to public employee suggestions for cost-saving measures.
The Department of Administrative Services states this bill, as amended by the House (Amendment #2012-0392h), will have an indeterminable impact on state revenues and expenditures in FY 2012 and each year thereafter. There will be no impact on county and local revenues or expenditures.
The Department of Administrative Services states this bill makes several changes to the State Suggestion and Extraordinary Service Award Program (Program), including, but not limited to, broadening employee Program eligibility, and replacing the existing $5,000 employee cost-saving suggestion award cap with an award equal to 10 percent of the savings achieved during the initial 12-month period after implementation. The Department states it is unable to predict how many suggestions may be received under the revised Program, what the nature or complexity of suggestions may be, or what additional work the new process may create for staff of the Governor and Executive Council or members of the state award evaluation committee. Also, the Department is unable to predict what amount of savings, if any, might be realized by virtue of suggestions made as a result of this bill, or whether or not they would have occurred if this bill were not to pass. Ultimately, the Department is unable to predict this bill’s potential impact on state revenues or expenditures.