Amends chapter 82 to require department heads to pay any person or persons, 10%, up to $100,000, of the first year's net savings for innovations in state operations, functions, or procedures that reduce government expenditures and lead to efficiencies and better customer service.

A BILL FOR AN ACT

SECTION 1. The legislature finds that providing financial incentives often results in better efficiency and improved customer service. The legislature also finds that chapter 82, Hawaii Revised Statutes, allows department heads the discretion to provide cash and other incentives to department employees who suggest ways of improving the efficiency of the department that results in tangible benefits.

However, rather than limiting this financial incentive to government employees, the legislature finds that extending this benefit to the general public will provide a greater opportunity for the development of innovative and less costly ways to operate government, while providing improved customer service. All savings from these innovations can be passed on to other needy programs, especially in the area of education.

The purpose of this Act is to extend the financial incentives under chapter 82 to the general public by granting ten percent, up to $100,000, to any person or persons from the general public, including government employees, for developing innovations that reduce government expenses, while providing improved customer service.

SECTION 2. Section 82-1, Hawaii Revised Statutes, is amended to read as follows:

"§82-1 Award by department head. The head of each department of the state or county governments may pay cash awards to, and incur necessary expenses for the honorary recognition of, any person or persons, including officers and employees of the government, who by their suggestions, inventions, superior accomplishments, or other personal efforts, including length of service, contribute to the efficiency, economy, or other improvement of government operations or who perform special acts or services in the public interest in connection with or related to their official employment[.]; provided that the head of each department of the state government is required to pay ten percent of the first year's net savings realized, up to $100,000, to any person or persons, including a government employee, who suggests an idea resulting in tangible benefits."

SECTION 3. Section 82-1.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§82-1.5[]] Decisions on awards for suggestions. All decisions rendered by the State or each of the political subdivisions of the State under this chapter, approving or disapproving a person's, including employee suggestions for [employee] innovation awards, shall be final and shall be deemed a performance of a discretionary function as that term is used in section 662-15. If a dispute arises over the proper amount of the [employee] innovation award for [an officer or employee] the recipient whose suggestion is approved, the comptroller or designee for the state government, the administrative director of courts for the judiciary and the director of finance or designee for the political subdivisions of the State shall be the final arbiter of the proper award amount."

SECTION 4. Section 82-2, Hawaii Revised Statutes, is amended to read as follows:

"§82-2 Effect of acceptance. A cash award to a government employee under this chapter shall be in addition to the regular compensation of the recipient and the acceptance of the cash award by any person, including a government employee, shall constitute an agreement that the use by the government of the State or its political subdivisions of any idea, method, or device for which the award is made shall not form the basis of a further claim of any nature upon the government of the State or of any of its political subdivisions by the [employee,] recipient, the [employee's] recipient's heirs, or assigns."

SECTION 5. Section 82-3, Hawaii Revised Statutes, is amended to read as follows:

"§82-3 Award by chief executive officer. The governor, the mayor of the city and county of Honolulu, and the respective chief executive officers of the several counties may pay cash awards to and incur necessary expenses for the honorary recognition of, any person or persons, including officers and employees of the government, who by their suggestions, inventions, superior accomplishments or other personal efforts, including length of service awards, contribute to the efficiency, economy or other improvement of government operations, or who perform exceptionally meritorious special acts or services in the public interest in connection with or related to their official employment, and the awards may be in addition to the awards authorized in section 82-1."

SECTION 6. Section 82-4, Hawaii Revised Statutes, is amended to read as follows:

"§82-4 Funds. Awards and expenses for the honorary recognition of any person or persons, including officers and employees, may be paid from the funds or appropriations available to the department primarily benefiting or may be paid from the several funds or appropriations of the various departments benefiting as may be determined by the governor, the mayor of the city and county of Honolulu and the respective chief executive officers of the several counties, as the case may be, for awards under section 82-3 and by the head of the department concerned for awards under section 82-1."

SECTION 7. The reviser of statutes shall make the appropriate changes when chapter 82 is recodified in chapter 78 in 2002.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect upon its approval.