BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACR 178
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          Date of Hearing:   August 10, 2010

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY
                               Alberto Torrico, Chair
                   ACR 178 (Niello) - As Introduced:  June 28, 2010
           
          SUBJECT  :   State employee merit awards.

           SUMMARY  :   Authorizes the payment of State Merit Awards approved  
          by the Department of Personnel Administration (DPA) to five  
          individuals whose proposals resulted in eliminating or reducing  
          state expenditures or improving state operations.  Specifically,  
           this bill  authorizes awards as follows: 

          1)A payment of $2,662 to Lorraine Plummer, an employee of the  
            California Department of Corrections and Rehabilitation  
            (CDCR), for designing an electronic medical billing system to  
            automatically calculate discounts for standardized health  
            services as allocated by the California Medical Fee Schedule,  
            which resulted in a first year savings of $76,615.07.

          2)A payment of $7,547 to Randy Villareal, an employee of the  
            California Department of Food and Agriculture, for suggesting  
            that all marketed cotton in the San Joaquin Quality Cotton  
            District carry the State Seed Code in lieu of bale and module  
            tags.  Eliminating bale and module tags saved printing costs  
            of the tags and the need for a state vehicle, and also saved  
            salaries and benefits for a Biologist, an Agricultural  
            Technician II and tow Agricultural Aides, which resulted in  
            first year savings of $126,547.

          3)A payment of $8,947 to Shirley Pertle, an employee of the  
            Employment Development Department, for suggesting automating  
            the mailing process at the Work Opportunity Tax Credit  
            processing center, resulting in reduced postage rates and  
            decreased overtime which resulted in first years savings of  
            $139,468.

          4)A payment of $11,433 to be shared equally between John Yessen  
            and Eric Zimmerman, employees of CDCR, for using a  
            folding/inserting machine to prepare outgoing correspondence  
            mail from the Office of Selection and Standards which  
            processes Correctional Officer applications and secured a  
            state surplus machine, at no cost to the department, as an  








                                                                  ACR 178
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            alternative to purchasing a new machine, resulting in reduced  
            workload volume, reduced staff hours, and elimination of the  
            need to hire and outside agency for mass mailings, which  
            resulting in first year savings of $164,433.

           EXISTING LAW  :  Establishes the State Merit Award Program which  
          provides cash awards and honorary awards to active and retired  
          state employees who propose ideas that are implemented and  
          result in savings to the state, an improvement in state  
          operations, or improvements in the safety of a state program.   
          The program is administered by DPA.

           FISCAL EFFECT  :   Authorizes the payment of $30,589 to three  
          individuals.

           COMMENTS  :   According to the sponsor, DPA, "The State Merit  
          Award Program has provided tremendous value to taxpayers through  
          innovative suggestions made by State employees which have  
          resulted in millions of dollars in savings.  ACR 178 would  
          recognize three individuals whose combined suggestions have  
          resulted in a first year savings to the State of $507,063."

          The state employees specified in this resolution have already  
          received awards of $5,000 from their respective departments, as  
          authorized under the Government Code, for suggesting procedures  
          or ideas that have been implemented and resulted in savings or  
          improved efficiencies.  This resolution authorizes awards to  
          these individuals in excess of the $5,000.

          DPA states, "This resolution will not create budgetary  
          increases.  Per Merit Award Program regulations, awards to  
          employees for adopted suggestions are paid from the funds or  
          appropriations available to the state agencies benefiting from  
          the adopted suggestions unless payment from another source is  
          authorized by the Department of Finance.  The affected  
          departments have achieved significant savings from the  
          suggestions.  A portion of these savings may be used to fund the  
          awards."

           REGISTERED SUPPORT / OPPOSITION :   

           Support 
           
          Department of Personnel Administration (Sponsor)









                                                                  ACR 178
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           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957