BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON
          PUBLIC EMPLOYMENT AND RETIREMENT
                               Dr. Richard Pan, Chair
                                2015 - 2016  Regular 

          Bill No:            ACR 98          Hearing Date:     4/11/16
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          |Author:    |Beth Gaines                                          |
          |-----------+-----------------------------------------------------|
          |Version:   |7/16/15    As introduced                             |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Pamela Schneider                                     |
          |           |                                                     |
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          Subject:  State employee merit awards

           SOURCE: California Department of Human Resources (CalHR)
          
            ASSEMBLY VOTES:
          
          
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          |Assembly Floor:                 |78 - 0                          |
          |--------------------------------+--------------------------------|
          |Assembly Appropriations         |17 - 0                          |
          |Committee:                      |                                |
          |--------------------------------+--------------------------------|
          |Assembly Public Employees,      |  6 - 0                         |
          |Retirement/Soc Sec Committee:   |                                |
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           DIGEST:    This resolution authorizes the payment of monetary  
          state merit awards to state employees whose ideas or work  
          products result in exceptional contributions or budgetary  
          savings in state government.

          ANALYSIS:
          
          Existing law:
          
          1)Authorizes CalHR to make merit awards to current or retired  
            state employees who:

             a)   Propose procedures or ideas that are subsequently  







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               adopted and that result in eliminating or reducing state  
               expenditures or improving operations, provided the  
               proposals are placed in effect.

             b)   Perform special acts or special services in the public  
               interest.

             c)   By their superior accomplishments, make exceptional  
               contributions to the efficiency, economy or other  
               improvement in the operations of the state government.

          2)Provides that awards shall be made pursuant to standards and  
            procedures established by CalHR, which may adopt rules and  
            regulations to administer the merit awards program and may  
            appoint a merit awards board made up of state officers,  
            employees, or citizens to consider award recipients.

          3)Authorizes awards to be paid from the appropriation available  
            to the state agency affected by the award.

          4)Requires that any award over $5,000 have legislative approval.

          This bill authorizes the payment of state merit awards approved  
          by the California Department of Human Resources (CalHR) to three  
          individuals whose proposals resulted in eliminating or reducing  
          state expenditures or improving state operations.  Specifically,  
          this resolution provides that the following merit awards be  
          made:

          1)A payment of $21,640, to Andrew Brown, an employee of the  
            Department of Corrections and Rehabilitation (CDCR), for  
            suggesting that CDCR automate the Earliest Possible Release  
            Date and the Minimum Eligible Parole Date and creating an  
            Excel spreadsheet to do so.  The spreadsheet simplified the  
            process of calculating release dates, reduced the chance of  
            error, and increased productivity.  This suggestion has not  
            only improved efficiency at CDCR, but it also safeguards the  
            citizens of California from the possible erroneous release of  
            a violent offender.  Automating this process has resulted in  
            annual savings to the state of $133,198.  Mr. Brown's award  
            totals $26,640, $5,000 of which has already been paid to him.

          2)A payment of $4,646.67, to Kathleen Simpson, an employee of  
            the Department of Health Care Services (DHCS), for suggesting  
            and reformatting specified consumer guides that are mailed  








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            monthly to Medi-Cal beneficiaries to help them choose the best  
            health care plans for themselves and their families.   
            Reformatting the guides resulted in less paper being used,  
            less mailing weight and decreased printing costs that saved  
            the state $48,233.36 annually.  Ms. Simpson's award totals  
            $9,646.67, $5,000 of which has ready been paid to her.

          3)A payment of $38,423, to Wayne Stalie, an employee of CDCR,  
            for suggesting that two institutions, the California State  
            Prison, Corcoran and the California Substance Abuse Treatment  
            Facility, Corcoran, eliminate their contracted trash service  
            and instead utilize existing staff and resources to share  
            trash collection costs and services.  This suggestion resulted  
            in annual savings to the state of $434,226.  Mr. Stalie's  
            award totals $43,423, $5,000 of which has already been paid to  
            him.

          Background

          The bill states that the savings generated by these ideas will  
          continue to be realized on an annual basis, and due to actual  
          savings already generated by implementation of these  
          suggestions, no appropriation of additional funds is necessary  
          to pay the awards to these employees.

          According to the author, "Existing law authorizes the Department  
          of Human Services to grant awards to public employees who  
          propose procedures that result in reducing state expenditures  
          equal to or greater than $5,000.  All such awards must be  
          approved by concurrent resolution in the State Legislature."

          Related/Prior Legislation
          
          ACR 61 (Gaines, Chapter 138, Statutes of 2013)
          ACR 178 (Niello, Chapter 159, Statutes of 2010)
          ACR 116 (Blakeslee, Chapter 85, Statutes of 2006)
          SCR 41 (Soto, Chapter 143, Statutes of 2001)
          ACR 135 (Wesson, Chapter 122, Statutes of 2000)
          SCR 15 (Ortiz, Chapter 85 Statutes of 1999)
          ACR 98 (Hurtt, Chapter 168, Statutes of 1998) 
          SCR 26 (Schiff, Chapter 116, Statutes of 1997)
          SCR 58 (Rogers, Chapter 52, Statutes of 1996)


          FISCAL EFFECT:                 Appropriation:       Fiscal Com.:  








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                            Yes          Local:           


          SUPPORT:

            California Department of Human Resources (source)
          
          OPPOSITION:

          None received

          ARGUMENTS IN SUPPORT:

          According to CalHR, "The Merit Award program is an excellent  
          vehicle for acknowledging, recognizing, and rewarding the  
          outstanding efforts of creative and innovative state employees.   
          Since 1950, Merit Award Board implemented suggestions have saved  
          the state over $95 million and these savings are on-going."