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HOUSE BILL No. 2237
AN A CT concerning state agencies; relating to the employee award and recognition
program; authorizing hiring, recruitment and retention bonuses; increasing the
limitation on such award or bonus to $10,000; eliminating the secretary of
administration's authority to adopt rules and regulations; requiring such secretary to
submit an annual report to certain legislative committees concerning such awards and
bonuses; amending K.S.A. 75-37,105 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 75-37,105 is hereby amended to read as follows:
75-37,105. (a) As used in this section,:
(1) "Award" and "monetary award" include a bonus given to an
employee pursuant to this section; and
(2) "state agency" has the meaning ascribed thereto by means the
same as defined in K.S.A. 75-3701, and amendments thereto, and
includes the governor's department, lieutenant governor, attorney
general, secretary of state, state treasurer, commissioner of insurance,
each agency of the executive branch, the legislature and each agency of
the legislative branch, the judicial branch and each agency of the
judicial branch and any appointed state council or state commission.
(b) (1) There is established an employee award and recognition
program for state employees. Under this program , monetary or non-
monetary nonmonetary awards may be made to state employees. An
appointing authority may implement a program of award and
recognition for classified and unclassified employees or teams of
employees. Such program may include a hiring, recruitment and
retention bonus, as well as awards for distinguished accomplishment,
meritorious service, innovations, Kansas quality management,
volunteerism or length of service. Under this program , monetary or
non-monetary nonmonetary awards may be made to state employees.
Non-monetary Nonmonetary awards may include, but are not be
limited to, a medal, an annual award luncheon held by the employee's
respective state agency or public recognition by the Kansas house of
representatives or the Kansas senate.
(2) All awards and recognition provided under this section shall
meet the conditions for a discretionary bonus set out in 29 C.F.R. §
778.211.
(c) (1) The total gross value of awards to any employee of the
state during a single fiscal year shall not exceed $3,500 except as
provided in subsection (g) $10,000.
(2) Any monetary award or series of such awards in excess of
$3,500 that is proposed for an employee in the classified service or an
employee in the unclassified service whose salary is subject to
approval in accordance with K.S.A. 75-2935b, and amendments
thereto, shall be subject to approval by the governor and shall not be
paid until approved by the governor, except as provided in subsection
(g).
(d) No award paid pursuant to this section during the fiscal year
shall be compensation, within the meaning of K.S.A. 74-4901 et seq.,
and amendments thereto, for any purpose under the Kansas public
employees retirement system and shall not be subject to deductions for
employee contributions thereunder. Each taxable award paid under this
section shall be a discretionary bonus, as defined by 29 C.F.R. § 778,
and shall be in addition to the regular earnings to which that employee
may be entitled or for which the employee may become eligible.
Monetary awards are subject to taxes in accordance with federal
internal revenue code regulations. The value of non-monetary
nonmonetary awards shall be reported by state agencies in accordance
with sections 74 and 132 of the federal internal revenue code and
procedures prescribed by the director of accounts and reports.
HOUSE BILL No. 2237—page 2
(d)(e) The award and recognition program shall be paid from
moneys appropriated and available for operating expenditures of the
state agency or from other funding sources as appropriated. In the case
of employee suggestions, the award or recognition for each employee
shall be paid or provided by the state agency that benefited from and
implemented the suggestion.
(e) The regulations of the employee award board adopted pursuant
to K.S.A. 75-37,108, and amendments thereto, are hereby revoked.
(f) The secretary of administration shall adopt rules and
regulations that provide oversight and administrative review of state
agency award and recognition programs for executive branch agencies
and appointed state councils and commissions. The secretary of
administration shall adopt rules and regulations to Such oversight shall
provide safeguards to preclude opportunities for abuse within the
employee award and recognition program in each state agency and to
programs and provide for consistency of such programs among such
agencies, councils and commissions as well as ensure objective
decision-making procedures in award and recognition determinations
for all participating employees.
(g) (1) (A) The secretary of administration shall establish a state
employee suggestion program through which state employees may
submit suggestions for cost reductions to their respective state agency
through increased efficiencies or other economies or savings in the
operations of the state agency.
(B) Each employee making a suggestion for cost reduction shall
be awarded a monetary or non-monetary nonmonetary employee award
or awards for innovation pursuant to subsection (b) of this section upon
adoption of the suggestion by the state agency. Monetary awards for
innovation shall be nondiscretionary and shall be in the amount of 10%
of the cost reduction, accrued during the first 12 months after
implementation of the suggestion, as documented to the division of the
budget, up to a maximum of $5,000. Should multiple employees make
similar suggestions for cost reduction, as determined by the state
agency, each employee shall submit to the head of the state agency a
list of each employee's percentage contribution to the suggestion for
cost reduction. Upon adoption of the suggestion by the state agency, the
head of the state agency shall make the final determination as to each
employee's percentage contribution. Such multiple employees shall
then share the documented cost reduction in such percentage shares as
determined by the head of the state agency, up to a maximum of $5,000
per employee.
(C) The state agency shall retain 10% of the documented cost
reduction. Savings achieved through this cost reduction shall be placed
in a separate special revenue fund or funds for such purpose to be
administered by that state agency. The remaining balance of the savings
achieved through this cost reduction shall revert to the state general
fund.
(2) Each state agency shall submit each suggestion it that such
agency receives, together with the state agency's estimated cost
reduction, if any, and dispensation of the suggestion to the division of
the budget. The director of the budget shall file copies with the director
of the legislative research department, who shall report annually on the
information to members of the legislative budget committee.
(3) Each state agency that has awarded an employee under the
state agency's employee suggestion program pursuant to this subsection
shall report all information related to the award to the secretary of
administration.
(4) At the beginning of each regular session of the legislature, the
secretary of administration shall provide all information received by
state agencies pursuant to subsection (g)(3) to the appropriate
committees of the legislature.
(5) The secretary of administration shall provide all information
regarding the state employee suggestion program to all state agencies
by a pamphlet, brochure or by publication on the official website of the
HOUSE BILL No. 2237—page 3
department of administration.
(h) Awards and incentives and other recognition pursuant to this
section shall not be deemed in violation of K.S.A. 46-237a, and
amendments thereto.
(i) Any person elected or appointed to a state agency position shall
not be a recipient of a monetary award under this section.
(j) Annually, on August 1, each state agency that has awarded an
employee with a monetary award pursuant to this section shall submit
to the secretary of administration a report on the number of monetary
awards paid in each category of awards or bonuses and the total dollar
amount of each such award or bonus for the previous fiscal year. At the
beginning of each regular session of the legislature, the secretary shall
compile and report such information to the house of representatives
committee on appropriations and the senate committee on ways and
means.
Sec. 2. K.S.A. 75-37,105 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the HOUSE, and passed
that body
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE ______________________________________________________________________________
President of the Senate.
Secretary of the Senate.
APPROVED __________________________________________________________________________________________________
Governor.