GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
HOUSE BILL 613
RATIFIED BILL
AN ACT making programmatic amendments to the nc-thinks state employee suggestion program.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 143-345.21 reads as rewritten:
"§ 143-345.21. State employee suggestion program.
(a) A State employee or team of State employees may receive an incentive bonus or bonuses in reward for suggestions or innovations resulting in monetary savings to the State, increased revenues to the State, or improved quality of services delivered to the public.
(b) Repealed by Session Laws 2001-424, s. 7.2(c), effective July 1, 2001.
(b1)
The amount of savings generated by suggestions and innovations shall be
determined after a 12-month period of implementation. implementation
or, if applicable, no more than 90 days after the one-time savings is
determined or the suggestion is approved. No incentive bonus suggestion
payments shall be paid prior to the expiration of 12 months, or 90 days
after the final one-time savings is determined or the suggestion is approved, and
payment may be delayed further as reasonably required to ensure that a complete
cost implementation cycle is evaluated fully.
(c) Any savings are to be calculated using the actual expenditures for a program, activity, or service compared to the budgeted amount for the same, if an amount has been budgeted for the program, activity, or service. The savings calculation shall include the amount of any reversions in excess of the baseline reversion. Any savings realized through NC-Thinks shall be weighed against continued service to the public and the assurance that there is not a negative impact on State programs.
(d) If a suggestion or innovation affects a program, activity, or service for which no separate budgeted amount has been made, the State Coordinator, in conjunction with the agency evaluator or agency fiscal officer, or both for that suggestion or innovation, shall determine the budgetary impact of the suggestion or innovation.
(e)
Federal and local government funds and corporate and foundation grant funds
are excluded from NC-Thinks.No monetary award or leave can be awarded
through NC-Thinks where specifically disallowed by the terms of the funding
source.
(f)
The Department of Administration Office of State Personnel shall
establish the NC-Thinks reserve fund in which all savings for all suggestions
shall be deposited as earned. Each participating agency shall be responsible
for transferring savings to the NC-Thinks reserve fund. The funds may be
encumbered as needed to ensure payment to the General Fund, to the suggester,
and for distribution as required by G.S. 143-345.22. The Department of
Administration Office of State Personnel shall provide the NC-Thinks
reserve fund summary at the close of each fiscal year to the Office of State
Budget and Management and to the participating agencies. The Office of State
Budget and Management shall have oversight responsibility for ensuring that the
required reversions and transfers are made to the General Fund, and that all
encumbered funds are accounted for and paid as required by law.
(g) No distribution of suggester awards shall occur until reversion requirements to the General Fund are met and distributions as required by G.S. 143-345.22 are satisfied and verified by the Office of State Budget and Management. When all of the requirements of G.S. 143-345.22 are fulfilled, the Department of Administration shall transfer to the suggester's agency funds required to award the suggester. The suggester's agency shall make the suggestion award and ensure that all taxes and withholding requirements are met.
(h) Implementation costs may be prorated over a maximum of three years for suggestions or innovations that are capital intensive, involve leading-edge technology, or involve unconventional processes that require longer than 12 months for implementation. The amount of the average annual savings minus the average annual implementation cost shall be used as the basis for the agency to recommend a suggester award. The State Suggestion Review Committee shall consult the Office of State Budget and Management to make the final award determination in these cases.
(i)
There is established in the Department of Administration Office of
State Personnel a nonreverting fund to be administered by the Office of
State Personnel for the training and education of permanent State employees to
address specific mission critical needs and objectives. Funds shall be credited
from NC-Thinks to the fund as provided by this Article."
SECTION 2. G.S. 143-345.22 reads as rewritten:
"§
143-345.22. Allocation of incentive bonus suggestion program funds;
nonmonetary recognition.
(a) If a State employee's suggestion or innovation results in a monetary savings or increased revenue to the State, the funds saved or increased shall be distributed according to the following scale or subject to guidelines as set forth by the funding source:
(1) Twenty percent (20%) of the annualized savings or increased revenues, up to a maximum of twenty thousand dollars ($20,000) for any one State employee, to constitute gainsharing. If a team of State employees is the suggester, the bonus provided in this subdivision shall be divided equally among the team members, except that no team member shall receive in excess of twenty thousand dollars ($20,000), nor shall the team receive an aggregate amount in excess of one hundred thousand dollars ($100,000). These funds shall not revert.
(2) Thirty percent (30%) allocated as follows:
a.
Ten percent (10%) Fifteen percent (15%) to the implementing
agency for nonrecurring budget items to be used (i) by the implementing agency
to provide equipment, supplies, training, and limited but appropriate
recognition for the division, section, or group responsible for the
implementation of the cost-saving measure and (ii) to meet other similar needs
within the agency.
b.
Ten percent (10%) to the Department of Administration Office of State
Personnel for augmenting funding for the management and administration of
NC-Thinks. These funds shall not revert.
c.
Ten percent (10%) Five percent (5%) to the State employee
education and training fund administered by the Office of State Personnel under
G.S. 143-342.21(i). These funds shall not revert.revert when
nonreversion is otherwise allowed by law or policy.
(3)
The remainder to the General Fund for nonrecurring budget items.items
when allowed by law or policy.
.…"
SECTION 3. G.S. 143-345.23(d) reads as rewritten:
"(d)
The executive secretary State Personnel Director shall be
responsible for general oversight and coordination of NC-Thinks. The State
coordinator shall be an employee of the Department of Administration. Office
of State Personnel. The State coordinator shall be responsible for
day-to-day NC-Thinks program management and administration of the technical
aspects of the program. The State coordinator shall be an ex officio voting member
of the State Suggestion Review Committee."
SECTION 4. G.S. 143-345.24(c) reads as rewritten:
"(c)
All administrative, management, clerical, and other functions and services
required by the State Review Committee shall be supplied by the Department
of Administration. The Department of Administration Office of State
Personnel. The Office of State Personnel and the State Review Committee
shall report annually to the Joint Legislative Commission on Governmental
Operations on the administration of NC-Thinks."
SECTION 5. G.S. 126-3(b) reads as rewritten:
"§ 126-3. Office of State Personnel established and responsibilities outlined; administration and supervision; appointment, compensation and tenure of Director.
…
(b) The Office shall be responsible for the following activities, and such other activities as specified in this Chapter:
…
(10) Administering the State employee suggestion program (NC-Thinks)."
SECTION 6. This act becomes effective July 1, 2011, and applies to employee suggestions made on or after that date.
In the General Assembly read three times and ratified this the 15th day of June, 2011.
_____________________________________
Walter H. Dalton
President of the Senate
_____________________________________
Thom Tillis
Speaker of the House of Representatives
_____________________________________
Beverly E. Perdue
Governor
Approved __________.m. this ______________ day of ___________________, 2011