1 | 1 | | Session of 2025 |
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2 | 2 | | HOUSE BILL No. 2237 |
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3 | 3 | | By Committee on Appropriations |
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4 | 4 | | Requested by Representative Francis on behalf of the Department of |
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5 | 5 | | Administration |
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6 | 6 | | 2-4 |
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7 | 7 | | AN ACT concerning state agencies; relating to the employee award and |
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8 | 8 | | recognition program; authorizing hiring, recruitment and retention |
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9 | 9 | | bonuses; increasing the limitation on such award or bonus to $10,000; |
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10 | 10 | | eliminating the secretary of administration's authority to adopt rules |
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11 | 11 | | and regulations; requiring such secretary to submit an annual report to |
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12 | 12 | | certain legislative committees concerning such awards and bonuses; |
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13 | 13 | | amending K.S.A. 75-37,105 and repealing the existing section. |
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14 | 14 | | Be it enacted by the Legislature of the State of Kansas: |
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15 | 15 | | Section 1. K.S.A. 75-37,105 is hereby amended to read as follows: |
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16 | 16 | | 75-37,105. (a) As used in this section,: |
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17 | 17 | | (1) "Award" and "monetary award" include a bonus given to an |
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18 | 18 | | employee pursuant to this section; and |
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19 | 19 | | (2) "state agency" has the meaning ascribed thereto by means the |
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20 | 20 | | same as defined in K.S.A. 75-3701, and amendments thereto, and includes |
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21 | 21 | | the governor's department, lieutenant governor, attorney general, secretary |
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22 | 22 | | of state, state treasurer, commissioner of insurance, each agency of the |
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23 | 23 | | executive branch, the legislature and each agency of the legislative branch, |
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24 | 24 | | the judicial branch and each agency of the judicial branch and any |
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25 | 25 | | appointed state council or state commission. |
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26 | 26 | | (b) (1) There is established an employee award and recognition |
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27 | 27 | | program for state employees. Under this program, monetary or non- |
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28 | 28 | | monetary nonmonetary awards may be made to state employees. An |
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29 | 29 | | appointing authority may implement a program of award and recognition |
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30 | 30 | | for classified and unclassified employees or teams of employees. Such |
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31 | 31 | | program may include a hiring, recruitment and retention bonus, as well as |
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32 | 32 | | awards for distinguished accomplishment, meritorious service, |
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33 | 33 | | innovations, Kansas quality management, volunteerism or length of |
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34 | 34 | | service. Under this program, monetary or non-monetary nonmonetary |
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35 | 35 | | awards may be made to state employees. Non-monetary Nonmonetary |
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36 | 36 | | awards may include, but are not be limited to, a medal, an annual award |
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37 | 37 | | luncheon held by the employee's respective state agency or public |
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38 | 38 | | recognition by the Kansas house of representatives or the Kansas senate. |
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39 | 39 | | (2) All awards and recognition provided under this section shall meet |
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73 | 73 | | 34 HB 2237 2 |
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74 | 74 | | the conditions for a discretionary bonus set out in 29 C.F.R. § 778.211. |
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75 | 75 | | (c) (1) The total gross value of awards to any employee of the state |
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76 | 76 | | during a single fiscal year shall not exceed $3,500 except as provided in |
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77 | 77 | | subsection (g) $10,000. |
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78 | 78 | | (2) Any monetary award or series of such awards in excess of $3,500 |
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79 | 79 | | that is proposed for an employee in the classified service or an employee |
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80 | 80 | | in the unclassified service whose salary is subject to approval in |
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81 | 81 | | accordance with K.S.A. 75-2935b, and amendments thereto, shall be |
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82 | 82 | | subject to approval by the governor and shall not be paid until approved |
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83 | 83 | | by the governor, except as provided in subsection (g). |
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84 | 84 | | (d) No award paid pursuant to this section during the fiscal year shall |
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85 | 85 | | be compensation, within the meaning of K.S.A. 74-4901 et seq., and |
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86 | 86 | | amendments thereto, for any purpose under the Kansas public employees |
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87 | 87 | | retirement system and shall not be subject to deductions for employee |
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88 | 88 | | contributions thereunder. Each taxable award paid under this section shall |
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89 | 89 | | be a discretionary bonus, as defined by 29 C.F.R. § 778, and shall be in |
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90 | 90 | | addition to the regular earnings to which that employee may be entitled or |
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91 | 91 | | for which the employee may become eligible. Monetary awards are subject |
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92 | 92 | | to taxes in accordance with federal internal revenue code regulations. The |
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93 | 93 | | value of non-monetary nonmonetary awards shall be reported by state |
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94 | 94 | | agencies in accordance with sections 74 and 132 of the federal internal |
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95 | 95 | | revenue code and procedures prescribed by the director of accounts and |
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96 | 96 | | reports. |
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97 | 97 | | (d)(e) The award and recognition program shall be paid from moneys |
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98 | 98 | | appropriated and available for operating expenditures of the state agency |
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99 | 99 | | or from other funding sources as appropriated. In the case of employee |
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100 | 100 | | suggestions, the award or recognition for each employee shall be paid or |
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101 | 101 | | provided by the state agency that benefited from and implemented the |
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102 | 102 | | suggestion. |
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103 | 103 | | (e) The regulations of the employee award board adopted pursuant to |
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104 | 104 | | K.S.A. 75-37,108, and amendments thereto, are hereby revoked. |
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105 | 105 | | (f) The secretary of administration shall adopt rules and regulations |
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106 | 106 | | that provide oversight and administrative review of state agency award and |
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107 | 107 | | recognition programs for executive branch agencies and appointed state |
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108 | 108 | | councils and commissions. The secretary of administration shall adopt |
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109 | 109 | | rules and regulations to Such oversight shall provide safeguards to |
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110 | 110 | | preclude opportunities for abuse within the employee award and |
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111 | 111 | | recognition program in each state agency and to programs and provide for |
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112 | 112 | | consistency of such programs among such agencies, councils and |
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113 | 113 | | commissions as well as ensure objective decision-making procedures in |
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114 | 114 | | award and recognition determinations for all participating employees. |
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115 | 115 | | (g) (1) (A) The secretary of administration shall establish a state |
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116 | 116 | | employee suggestion program through which state employees may submit |
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159 | 159 | | 43 HB 2237 3 |
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160 | 160 | | suggestions for cost reductions to their respective state agency through |
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161 | 161 | | increased efficiencies or other economies or savings in the operations of |
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162 | 162 | | the state agency. |
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163 | 163 | | (B) Each employee making a suggestion for cost reduction shall be |
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164 | 164 | | awarded a monetary or non-monetary nonmonetary employee award or |
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165 | 165 | | awards for innovation pursuant to subsection (b) of this section upon |
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166 | 166 | | adoption of the suggestion by the state agency. Monetary awards for |
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167 | 167 | | innovation shall be nondiscretionary and shall be in the amount of 10% of |
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168 | 168 | | the cost reduction, accrued during the first 12 months after implementation |
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169 | 169 | | of the suggestion, as documented to the division of the budget, up to a |
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170 | 170 | | maximum of $5,000. Should multiple employees make similar suggestions |
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171 | 171 | | for cost reduction, as determined by the state agency, each employee shall |
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172 | 172 | | submit to the head of the state agency a list of each employee's percentage |
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173 | 173 | | contribution to the suggestion for cost reduction. Upon adoption of the |
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174 | 174 | | suggestion by the state agency, the head of the state agency shall make the |
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175 | 175 | | final determination as to each employee's percentage contribution. Such |
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176 | 176 | | multiple employees shall then share the documented cost reduction in such |
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177 | 177 | | percentage shares as determined by the head of the state agency, up to a |
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178 | 178 | | maximum of $5,000 per employee. |
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179 | 179 | | (C) The state agency shall retain 10% of the documented cost |
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180 | 180 | | reduction. Savings achieved through this cost reduction shall be placed in |
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181 | 181 | | a separate special revenue fund or funds for such purpose to be |
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182 | 182 | | administered by that state agency. The remaining balance of the savings |
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183 | 183 | | achieved through this cost reduction shall revert to the state general fund. |
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184 | 184 | | (2) Each state agency shall submit each suggestion it that such |
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185 | 185 | | agency receives, together with the state agency's estimated cost reduction, |
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186 | 186 | | if any, and dispensation of the suggestion to the division of the budget. The |
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187 | 187 | | director of the budget shall file copies with the director of the legislative |
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188 | 188 | | research department, who shall report annually on the information to |
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189 | 189 | | members of the legislative budget committee. |
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190 | 190 | | (3) Each state agency that has awarded an employee under the state |
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191 | 191 | | agency's employee suggestion program pursuant to this subsection shall |
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192 | 192 | | report all information related to the award to the secretary of |
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193 | 193 | | administration. |
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194 | 194 | | (4) At the beginning of each regular session of the legislature, the |
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195 | 195 | | secretary of administration shall provide all information received by state |
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196 | 196 | | agencies pursuant to subsection (g)(3) to the appropriate committees of the |
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197 | 197 | | legislature. |
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198 | 198 | | (5) The secretary of administration shall provide all information |
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199 | 199 | | regarding the state employee suggestion program to all state agencies by a |
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200 | 200 | | pamphlet, brochure or by publication on the official website of the |
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201 | 201 | | department of administration. |
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202 | 202 | | (h) Awards and incentives and other recognition pursuant to this |
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246 | 246 | | section shall not be deemed in violation of K.S.A. 46-237a, and |
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247 | 247 | | amendments thereto. |
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248 | 248 | | (i) Any person elected or appointed to a state agency position shall |
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249 | 249 | | not be a recipient of a monetary award under this section. |
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250 | 250 | | (j) Annually, on August 1, each state agency that has awarded an |
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251 | 251 | | employee with a monetary award pursuant to this section shall submit to |
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252 | 252 | | the secretary of administration a report on the number of monetary |
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253 | 253 | | awards paid in each category of awards or bonuses and the total dollar |
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254 | 254 | | amount of each such award or bonus for the previous fiscal year. At the |
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255 | 255 | | beginning of each regular session of the legislature, the secretary shall |
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256 | 256 | | compile and report such information to the house of representatives |
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257 | 257 | | committee on appropriations and the senate committee on ways and |
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258 | 258 | | means. |
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259 | 259 | | Sec. 2. K.S.A. 75-37,105 is hereby repealed. |
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260 | 260 | | Sec. 3. This act shall take effect and be in force from and after its |
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261 | 261 | | publication in the statute book. |
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