State Employee Cash Awards

Provides cash awards to state employees equal to 10% of the cost
savings for the first year with the department retaining the

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that state employees
 2 present a wealth of untapped knowledge and expertise in their
 3 various areas of work.  The purpose of this Act is to enhance the
 4 existing incentive program for state workers which encourages,
 5 recognizes, and rewards the creativity of employees who
 6 contribute to the efficiency and quality of state government
 7 operations and to provide departments with an incentive to work
 8 with their employees toward that same goal.
 9      SECTION 2.  Chapter 82, Hawaii Revised Statutes, is amended
10 by adding a new section to be appropriately designated and to
11 read as follows:
12      "82-     Department incentives.  (a)  Except as otherwise
13 provided by law, all cost-savings resulting from a suggestion or
14 invention of an officer or employee for which a cash award has
15 been paid pursuant to section 82-1, less the amount of the cash
16 award itself, shall be retained by the department of such officer
17 or employee.  Any such funds retained by the department shall not
18 lapse until June 30 of the following fiscal year.
19      (b)  Any funds retained by a department pursuant to

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 1 subsection (a) may be used to supplement moneys appropriated for
 2 any of the department's programs; provided that the retention by
 3 the department of any such funds shall not be used as the basis
 4 for reducing the department's future budget requests or
 5 allotments except at the department's request."
 6      SECTION 3.  Section 82-1, Hawaii Revised Statutes, is
 7 amended to read as follows:
 8      "82-1 Award by department head.  The head of each
 9 department of the state or county governments may pay cash awards
10 to, and incur necessary expenses for the honorary recognition of,
11 officers and employees of the government who by their
12 suggestions, inventions, superior accomplishments, or other
13 personal efforts, including length of service, contribute to the
14 efficiency, economy, or other improvement of government
15 operations or who perform special acts or services in the public
16 interest in connection with or related to their official
17 employment[.]; provided that any officer or employee whose
18 suggestion or invention results in direct cost-savings to a
19 department shall be paid a cash award equal to ten per cent of
20 the cost-savings generated during the first year any such
21 suggestion or invention is placed into operation.  In the event
22 that more than one officer or employee is responsible for the
23 suggestion or invention resulting in the cost-savings, each shall

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 1 receive a pro rata share of the cash award."
 2      SECTION 4.  Statutory material to be repealed is bracketed.
 3 New statutory material is underscored.
 4      SECTION 5.  This Act shall take effect upon its approval.
 6                           INTRODUCED BY:  _______________________