SENATE BILL No. 429
gram; state employee suggestion program; prohibiting certain reimbursement; amending
K.S.A. 75-37,115 and repealing the existing section; also repealing K.S.A. 75-37,106
New Section 1. (a) Notwithstanding any other provision of law, no
state officer or employee shall be reimbursed for actual and necessary
expenses incurred in the performance of such officer's or employee's
duties from a governmental entity if such officer or employee is receiving
a per diem subsistence allowance or any other type of reimbursement
from another governmental entity for the reimbursement of expenses
incurred in the performance of such officer's or employee's duties.
(b) As used in this section, ``governmental entity'' means an executive,
legislative or judicial agency, department, board, commission, authority,
institution or instrumentality of the federal government or of a state or
of a county, municipality or other political subdivision of a state.
New Sec. 2. (a) (1) There is established an employee award and rec-
ognition program for state employees. Under this program monetary or
non-monetary awards may be made to state employees. An appointing
authority may implement a program of award and recognition for classi-
fied and unclassified employees or teams of employees for distinguished
accomplishment, meritorious service, innovations, Kansas quality man-
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. 778.211.
(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 subsec-
tions (f) and (g). No award paid pursuant to this section during the fiscal
year shall be compensation, within the meaning of K.S.A. 74-4901 et seq.,
and amendments thereto, for any purpose under the Kansas public em-
ployees retirement system and shall not be subject to deductions for em-
ployee contributions thereunder. Each taxable award paid under this sec-
tion shall be a discretionary bonus, as defined by 29 C.F.R. 778, and shall
be in addition to the regular earnings to which that employee may be
entitled or for which the employee may become eligible. Monetary
awards are subject to taxes in accordance with federal internal revenue
code regulations. The value of non-monetary awards shall be reported by
state agencies in accordance with sections 74 and 132 of the federal in-
ternal revenue code and procedures prescribed by the director of ac-
counts and reports.
(c) The award and recognition program shall be paid from moneys
appropriated and available for operating expenditures of the state agency
or from other funding sources as appropriated. In the case of employee
suggestions, the award or recognition for each employee shall be paid or
provided by the state agency that benefited from and implemented the
(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 and
recognition programs. The secretary of administration shall adopt rules
and regulations to provide safeguards to preclude opportunities for abuse
within the employee award and recognition program in each state agency
and to ensure objective decision-making procedures in award and rec-
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 suggestions
for cost reductions in that agency through increased efficiencies or other
economies or savings in the operations of the state agency.
(B) The employee making the suggestion shall be paid a one time
employee suggestion bonus of 10% of the documented cost reduction,
up to a maximum of $37,500. The bonus shall be paid solely upon doc-
umented cost reductions in the first 12 months following the implemen-
tation 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 Kansas
savings incentive account or fund for that agency. The remaining balance
of the savings achieved through this cost reduction shall revert to the state
(2) Each state agency shall submit each suggestion it receives, to-
gether with the state agency's estimated cost reduction, if any, and dis-
pensation of the suggestion to the division of the budget. The director of
the budget shall file copies with the director of the legislative research
department, who shall report annually on the information to members of
the legislative budget committee.
(g) (1) Salary bonus payments under the Kansas savings incentive
program shall be made only for the following conditions:
(A) Suggestions made under subsection (f) for which a 10% sugges-
tion bonus had not been awarded, or
(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 pro-
(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 amend-
Sec. 3. K.S.A. 75-37,115 is hereby amended to read as follows: 75-
37,115. (a) There is hereby established the Kansas quality program
within the department of administration for the purposes of providing
procedures and incentives for the enhancement of quality in the business
of state government. The secretary of administration shall administer the
program and shall promote and assist the creation and development of
Kansas quality teams in each state agency. The secretary of administration
shall develop and coordinate appropriate training programs for state of-
ficers and employees in total quality management principles, which may
include presentations by existing total quality management programs in
firms and other organizations operating in Kansas.
(b) (1) The Kansas quality program shall be based on the principles
of total quality management. The program shall provide opportunities for
involvement of as many officers and employees of each state agency in
Kansas quality teams as practicable to examine and improve the opera-
tions and activities of the state agency, except that no Kansas quality team
shall be composed of more than 40 members unless specifically author-
ized by the secretary of administration. The Kansas quality program shall
provide opportunities for individual quality improvement activities and
recognition where such activities are determined to be more efficient and
effective than establishing a Kansas quality team.
(2) In accordance with this section and with policies, procedures and
guidelines prescribed by rules and regulations adopted by the secretary
of administration, each state agency shall prepare a quality improvement
plan containing proposed activities and quality goals for the state agency
during a specified fiscal year or a portion thereof. Each quality improve-
ment plan shall include comprehensive goals and specific goals for indi-
vidual achievement or team achievement, shall be based on performance
standards and other objective measures and shall be submitted for review
and approval by the secretary of administration. All performance stan-
dards and other objective measures shall be stated in terms of quantitative
measures in accordance with rules and regulations adopted by the sec-
retary of administration under this section.
(c) To encourage participation and reward successful results under
the Kansas quality program, the members of each Kansas quality team
and each individual participating in activities under an approved quality
improvement plan shall be eligible to receive a quality award in the form
of a single bonus payment or other approved non-cash award or benefit
in accordance with this section and the rules and regulations adopted by
the secretary of administration. The activities of each Kansas quality team
under an approved quality plan and the objective measures of the success
of such activities in terms of enhanced quality of the state agency, or part
thereof, to which the approved plan applies, shall be the basis for deter-
mining eligibility for a quality award and the amount or type of any such
award. The secretary of administration shall develop criteria and guide-
lines for evaluating the results of activities under approved quality im-
provement plans, which shall include consideration of changes in the de-
mand for services, the amount and kind of duties and responsibilities
delegated to the state agency, the mission of the state agency and any
other appropriate matters. A quality award may be based on actual re-
duced costs for the operations of a state agency for the specified fiscal
year and may also be based on producing a higher level of services or
improved services for the public with no increase in operating costs of
the state agency, or on a combination of any such circumstances which
constitute enhanced quality. In the case of a quality award based on pro-
ducing the same amount of services or more for the public with no re-
duction in such cost, the aggregate amount or value of the awards for a
team pursuant to a plan shall not be more than the amount equal to 1.5%
of the amount determined by the secretary of administration to be the
amount of budgeted operating expenditures of the state agency, over the
appropriate period, for the employees of the state agency constituting the
team. In any case, a quality award for an individual shall not be an amount
or have a value which is more than the amount equal to 10% of the annual
compensation of the member from employment with the state agency.
(d) The quality award for each person for whom a quality award has
been approved pursuant to this section shall be paid or provided by the
state agency which benefited from the activities of the team or individual
under the quality improvement plan from any moneys appropriated and
available for operating expenditures of the state agency. All quality awards
shall be paid during the fiscal year following the fiscal year for which the
award was approved under this section from any appropriations for such
following fiscal year that are available therefor and prior to December 31
of that fiscal year.
(e) No quality payment to any person pursuant to this section shall
be compensation, within the meaning of K.S.A. 74-4901 et seq., and
amendments thereto, for any purpose under the Kansas public employees
retirement system and shall not be subject to deductions for employee
contributions thereunder. Each quality award which is a bonus payment
shall be a bonus, as defined by 29 C.F.R. 778, and shall be in addition to
the regular earnings to which an officer or employee may be entitled or
for which such officer or employee may become eligible.
(f) The secretary of administration shall adopt rules and regulations
for the administration and implementation of the Kansas quality program.
(g) (d) As used in this section, ``state agency'' has the meaning as-
cribed thereto by K.S.A. 75-3701, and amendments thereto.
Sec. 4. K.S.A. 75-37,106 through 75-37,110, inclusive, and 75-37,115
are hereby repealed.
Sec. 5. This act shall take effect and be in force from and after its
publication in the statute book.
Approved May 17, 2002.
Date Composed: 10/10/2002 Date Modified: 10/10/2002