BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | ACR 98| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: ACR 98 Author: Beth Gaines (R) Introduced:7/16/15 Vote: 21 SENATE PUBLIC EMP. & RET. COMMITTEE: 5-0, 4/11/16 AYES: Pan, Morrell, Beall, Hall, Moorlach SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen ASSEMBLY FLOOR: 78-0, 1/27/16 (Consent) - See last page for vote SUBJECT: State employee merit awards SOURCE: California Department of Human Resources 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 the California Department of Human Resources (CalHR) to make merit awards to current or retired state employees who: a) Propose procedures or ideas that are subsequently ACR 98 Page 2 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 resolution authorizes the payment of state merit awards approved by 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 ACR 98 Page 3 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 This resolution 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) ACR 98 Page 4 FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No According to the Senate Appropriations Committee, this resolution authorizes the payment of $64,709.67 to three state employees. Awards are paid by the individual departments from the savings generated from implementation of the award recipients' respective suggestions. No appropriation of additional funds is necessary. SUPPORT: (Verified8/11/16) California Department of Human Resources (source) OPPOSITION: (Verified8/11/16) 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." ASSEMBLY FLOOR: 78-0, 1/27/16 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, ACR 98 Page 5 Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Mathis Prepared by:Pamela Schneider / P.E. & R. / (916) 651-1519 8/12/16 13:58:03 **** END ****