BILL ANALYSIS �
AB 2138
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Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2138 (Gatto) - As Amended: April 29, 2014
Policy Committee: Accountability
and Administrative Review Vote: 11 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates a pilot program for three state agencies
chosen by the Governor to award cash prizes totaling up to
$75,000 to participants in innovation contests established by
each designated agency. Specifically, this bill:
1)Appropriates $75,000 from the General Fund to the Governor for
allocation to the three chosen agencies for each to award up
to a $25,000 prize in the innovation contests.
2)Requires the innovation contests to be held in 2015 and prizes
to be awarded by January 1, 2016.
3)Directs each designated agency to determine the subject of its
innovation contest and specifies that it may include proposals
that detail a procedure, plan, design, or idea that
contributes to the efficiency, economy, or other improvement
in the operations of the state agency.
4)Requires each designated agency to administer its innovation
contest, including publicizing the contest and determining the
standards for participation and awarding of the prize.
5)Requires that unawarded prize money revert to the General
Fund.
FISCAL EFFECT
1)This bill appropriates $75,000 from the General Fund to the
Governor to be awarded by three state agencies as cash prizes
to innovation contest winners.
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2)Unknown, minor administrative costs to three unknown state
agencies to design and conduct the innovation contests.
3)Minor/absorbable costs to the Governor's Office to designate
three state agencies to hold the innovation contests.
COMMENTS
1) Purpose . According to the author, this bill stems from a
suggestion in Lieutenant Governor Gavin Newsom's book,
Citizenville, which states that "incentive prizes are a
perfect bipartisan solution: They solve problems, help
people, and save money, thereby fulfilling goals that span
the whole political spectrum." The author asserts this bill
will incentivize everyday citizens to bring untapped
expertise and imagination to the streamlining or innovation
of a process, procedure, or issue within state government
and gives participating state agencies the authority to
experiment with this entrepreneurial process to solve
problems.
2) Existing Law . The State Merit Award Program,
administered by the California Department of Human
Resources (CalHR), provides cash 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.
CalHR reports that awards to employees for adopted suggestions
are paid from the individual departments out of the projected
first year savings resulting from implementation of the
respective suggestions and do not come directly from the
General Fund.
According to CalHR, on average, 566 ideas are submitted each
year and 21 ideas lead to monetary awards. The majority of
awarded ideas involve improved procedures and the average
award amount is $100. CalHR notes that awards exceeding $5,000
are required to be approved by concurrent resolution of the
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Legislature.
3) Previous Legislation . ACR 61 (Beth Gaines), Resolution
Chapter 138, Statutes of 2013, authorizes the payment of
state merit awards in excess of $5,000 approved by CalHR to
specified state employees whose proposals resulted in
eliminating or reducing state expenditures or improving
state operations.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081