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H.9 1
Introduced by Representative Casey of Montpelier 2
Referred to Committee on 3
Date: 4
Subject: Executive; State employees; Cost-Savings Incentive Program 5
Statement of purpose of bill as introduced: This bill proposes to reinstate an 6
incentive program for Executive Branch and Judicial Branch employees whose 7
adopted suggestions result in financial savings for State government. 8
An act relating to the Vermont State and Judiciary Employees’ Cost-9
Savings Incentive Program 10
It is hereby enacted by the General Assembly of the State of Vermont: 11
Sec. 1. 3 V.S.A. § 266 is added to read: 12
§ 266. VERMONT STATE AND JUDICIARY EMPLOYEES ’ 13
COST-SAVINGS INCENTIVE PROGRAM 14
(a) As used in this section: 15
(1) “State employee” means any classified, nonmanagement State 16
employee in the Executive Branch or Judicial Branch. 17
(2) “Suggestion” means a proposal by a State employee that has been 18
submitted to the branch in which the employee is employed that may result in 19
financial savings for that branch. 20 BILL AS INTRODUCED H.9
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(b) There is established the Vermont State and Judiciary Employees’ 1
Cost-Savings Incentive Program. The Program shall provide financial 2
incentives to State employees who make suggestions that are adopted and 3
result in financial savings for any Executive agency, department, board, 4
bureau, commission, or other administrative unit of the State or for the 5
Judiciary. 6
(c) To be eligible for an award under this Program, a State employee or 7
group of employees shall submit a suggestion to reduce expenditures on a form 8
created by the Department of Human Resources designated for this purpose. 9
An employee who is otherwise eligible for an award under this section shall 10
not receive the award until the employee has satisfied any and all State tax 11
obligations. 12
(d) Within 60 days following the receipt of a suggestion, the agency, 13
department, board, bureau, commission, or other administrative unit of the 14
State or the Judiciary that receives a suggestion shall determine whether: 15
(1) the suggestion is feasible and desirable; 16
(2) the suggestion is an idea that is not already under active study or has 17
not been under continual review by the State; 18
(3) the suggestion is beyond the reasonable expectations of job 19
performance, as informed by the employee’s job specifications; and 20 BILL AS INTRODUCED H.9
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(4) implementation of the suggestion will not negatively impact the 1
quality of services presently provided by the State. 2
(e) An employee shall be entitled to an award only if the employee’s 3
suggestion meets each of the criteria set forth in subsection (d) of this section 4
and the suggestion is implemented. 5
(f) Any Executive agency, department, board, bureau, commission, or other 6
administrative unit of the State or the Judiciary that receives a suggestion, shall 7
present its assessment of the criteria set forth in subsection (d) of this section 8
on the form designated for this purpose and shall state whether it intends to 9
implement the suggestion. A copy of this form shall be sent to the employee 10
or employees making the suggestion, the Department of Human Resources, 11
and the Department of Finance and Management if the employee making the 12
suggestion is an Executive Branch employee, and to the Court Administrator if 13
the employee making the suggestion is a Judiciary employee. 14
(g) If each of the criteria set forth in subsections (d) and (e) of this section 15
is met, the Executive agency, department, board, bureau, commission, or other 16
administrative unit of the State or the Judiciary shall implement the suggestion. 17
The employee or group of employees making the suggestion shall then be 18
entitled to a total monetary award equal to 25 percent of the savings realized as 19
a direct result of the suggestion in the first year of its implementation, but the 20
maximum total monetary award shall not exceed $25,000.00 under any 21 BILL AS INTRODUCED H.9
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circumstances. If the suggestion is simultaneously made by more than one 1
employee, the award shall be divided equally among the employees who 2
submitted the suggestion. The sum awarded shall be reportable as wages and 3
subject to applicable State and federal taxes, as appropriate. The award shall 4
be computed on the actual savings for a 12-month period, with the period to 5
run from the time that the suggestion is fully implemented. An award made 6
pursuant to this section shall be paid out of funds appropriated to the agency, 7
department, board, bureau, commission, or other administrative unit of the 8
State or the Judiciary that realizes the cost savings and shall be paid to the 9
employee within one year and 30 days following full implementation of the 10
suggestion. An award shall not be included when calculating an employee’s 11
average final compensation for determining the employee’s retirement 12
allowance. 13
(h) If an employee who is eligible for an award under this section 14
terminates State service prior to full implementation of the employee’s 15
suggestion, the employee shall be entitled to receive the full award. 16
(i)(1) If the agency, department, board, bureau, commission, or other 17
administrative unit of the State or the Judiciary that receives a suggestion 18
rejects the suggestion, the employee may file a written request to review the 19
suggestion with a copy of the form and the assessment to the appropriate 20
review panel. The review panel shall then recommend to the State Auditor or 21 BILL AS INTRODUCED H.9
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the Court Administrator, as appropriate, whether to affirm or overrule the 1
decision of the Executive agency, department, board, bureau, commission, or 2
other administrative unit of the State or the Judiciary and the State Auditor’s or 3
Court Administrator’s decision shall be final. 4
(2) If a suggestion is made by an employee of an Executive agency, 5
department, board, bureau, commission, or other administrative unit of the 6
State, the appropriate review panel shall consist of two members of the 7
Vermont State Employees’ Association, Inc. appointed by the Association’s 8
Executive Director, two members from the Agency of Administration 9
appointed by the Secretary of Administration, and one member appointed by 10
the State Auditor. 11
(3) If a suggestion is made by an employee of the Judiciary, the 12
appropriate review panel shall consist of two members of the Vermont State 13
Employees’ Association, Inc., appointed by the Association’s Executive 14
Director, and three members from the Judiciary, appointed by the Court 15
Administrator. 16
(4) The appropriate review panel shall meet within 30 days after 17
receiving a written request and shall make a recommendation to the State 18
Auditor or Court Administrator, as appropriate, within 15 days following the 19
meeting. 20 BILL AS INTRODUCED H.9
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(j) If an employee believes that the Executive agency, department, board, 1
bureau, commission, or other administrative unit of the State or the Judiciary 2
has erroneously calculated or underestimated the savings realized by the 3
suggestion, the employee may submit a written request to the State Auditor or 4
the Court Administrator, as appropriate, that explains the employee’s objection 5
to the amount awarded in writing within 30 days following the award. The 6
State Auditor or the Court Administrator shall review the amount awarded and 7
may increase the amount of an award or affirm the award. The decision of the 8
State Auditor or the Court Administrator shall be final. 9
(k) In the event an employee’s suggestion is denied on the basis of the 10
criteria set forth in subdivision (d)(1) or (4) of this section, and is subsequently 11
implemented within three years following the date the employee made the 12
suggestion, the employee shall receive a monetary award in accordance with 13
subsection (g) of this section. 14
(l) The State Auditor and the Court Administrator shall file a report with 15
the Governor and the General Assembly for each fiscal year, beginning on 16
January 1, 2027, summarizing the suggestions implemented and the savings 17
realized. The State Auditor and the Court Administrator shall also identify the 18
suggestions that were rejected and the rationale for these rejections. A copy of 19
this report shall be provided to the Executive Director of the Vermont State 20
Employees’ Association, Inc. 21 BILL AS INTRODUCED H.9
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(m) The Joint Fiscal Committee shall review the State Auditor’s and the 1
Court Administrator’s reports on the Program with the Executive Director of 2
the Vermont State Employees’ Association, Inc., or the Executive Director’s 3
designee, at least once during each fiscal year. 4
Sec. 2. EFFECTIVE DATE 5
This act shall take effect on July 1, 2025. 6