HOUSE BILL No. 2369
An Act concerning the state employee suggestion program; relating
to employee suggestion
bonus awards; amending K.S.A. 2002 Supp. 75-37,105 and
repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2002 Supp.
75-37,105 is hereby amended to read
as follows: 75-37,105. (a) (1) There is established an employee
recognition program for state employees. Under this program
or non-monetary awards may be made to state employees. An
authority may implement a program of award and recognition for
fied and unclassified employees or teams of employees for
accomplishment, meritorious service, innovations, Kansas quality
agement, volunteerism or length of service.
(2) All awards and recognition provided
under this section shall meet
the conditions for a discretionary bonus set out in 29 C.F.R.
(b) The total gross value of awards to
any employee of the state during
a single fiscal year shall not exceed $3,500 except as provided in
tions (f) and (g). No award paid pursuant to this section during
year shall be compensation, within the meaning of K.S.A. 74-4901
and amendments thereto, for any purpose under the Kansas public
ployees retirement system and shall not be subject to deductions
ployee contributions thereunder. Each taxable award paid under this
tion shall be a discretionary bonus, as defined by 29 C.F.R. 778,
be in addition to the regular earnings to which that employee may
entitled or for which the employee may become eligible.
awards are subject to taxes in accordance with federal internal
code regulations. The value of non-monetary awards shall be
state agencies in accordance with sections 74 and 132 of the
ternal revenue code and procedures prescribed by the director of
counts and reports.
(c) The award and recognition program
shall be paid from moneys
appropriated and available for operating expenditures of the state
or from other funding sources as appropriated. In the case of
suggestions, the award or recognition for each employee shall be
provided by the state agency that benefited from and implemented
(d) The regulations of the employee award
board adopted pursuant
to K.S.A. 75-37,108 are hereby revoked.
(e) The secretary of administration shall
adopt rules and regulations
that provide oversight and administrative review of agency award
recognition programs. The secretary of administration shall adopt
and regulations to provide safeguards to preclude opportunities for
within the employee award and recognition program in each state
and to ensure objective decision-making procedures in award and
ognition determinations for all participating employees.
(f) (1) (A) Each state agency
shall establish a state employee sug-
gestion program through which state employees may submit
for cost reductions in that agency through increased efficiencies
economies or savings in the operations of the state agency.
employee making the a suggestion for
shall be paid
a one time employee suggestion bonus
a monetary employee
award for innovation pursuant to subsection (a) of this section
tion of the suggestion by the agency. Such a monetary award for
vation shall be non-discretionary and shall be in the amount of
the estimated cost reduction, as certified by the agency's chief
and the agency appointing authority up to a maximum of $3,500.
employee making a suggestion for cost reduction shall also be
employee suggestion bonus in the amount of the difference
amount of the innovation award received by the employee and
the documented cost reduction during the first 12 months after
mentation of the suggestion, as documented to the division of
up to a maximum employee suggestion bonus of $37,500.
The bonus shall
be paid solely upon documented cost reductions in the first
following the implementation of the suggestion as
documented to the
division of the budget.
(C) The agency shall retain 10% of the
documented cost reduction.
Savings achieved through this cost reduction shall be placed in the
savings incentive account or fund for that agency. The remaining
of the savings achieved through this cost reduction shall revert to
(2) Each state agency shall submit each
suggestion it receives, to-
gether with the state agency's estimated cost reduction, if any,
pensation of the suggestion to the division of the budget. The
the budget shall file copies with the director of the legislative
department, who shall report annually on the information to members
the legislative budget committee.
(g) (1) Salary bonus payments under
the Kansas savings incentive
program shall be made only for the following conditions:
Monetary innovation awards made under subsection
for which a 10% suggestion bonus had not been
(B) for awards and recognition provided
pursuant to subsection (a).
(2) The director of personnel services
shall establish guidelines and
limitations for bonus payments under the Kansas savings incentive
(h) Awards and incentives and other
recognition pursuant to this sec-
tion shall not be deemed in violation of K.S.A. 46-237a, and any
(i) The provisions of subsections (f)
and (g) of this section shall expire
on June 30, 2006.
Sec. 2. K.S.A. 2002 Supp. 75-37,105 is hereby
Sec. 3. This act shall take effect and be in force
from and after its
publication in the Kansas register.
Approved April 21, 2003.
Published in the Kansas Register May 1, 2003.