In this subtitle, “principal unit” means a principal unit in the Executive Branch of State government, including any unit with independent pay-setting authority.

Except as provided in subsection (b) of this section, this subtitle applies to all employees of all units in the Executive Branch of State government, including a unit with independent pay-setting authority. This subtitle does not apply to any employee who holds a position that is included in the Executive Pay Plan.

In this section, “innovative idea” means an invention, innovative suggestion, or any other innovative idea. There is an Innovative Idea Awards Program for employees. An innovative idea award may be awarded for an innovative idea that, if implemented, would: increase revenue to the State; save money for the State; improve the quality of services delivered to the public; or otherwise significantly benefit the State. Except under exceptional circumstances, an award may not be made for an innovative idea that is under active study or continual review by a unit of State government. The head of each principal unit shall establish a labor–management review committee, with half of the members being selected from the exclusive representatives, if any, to evaluate and recommend awards for innovative ideas by employees of that unit. To the extent possible, within 60 days after an innovative idea is submitted to the labor–management review committee, the head of the unit shall decide whether to give an innovative idea award. The innovative idea may be received directly from an employee through an application, or forwarded by the employee’s supervisor. For an innovative idea, the head of a principal unit may give an employee of that unit a cash award of not more than: $1,000 for an innovative idea with a reasonably ascertainable monetary savings or gain to the State; or $300 for any other innovative idea. There is a Governor’s Award Panel. The Governor’s Award Panel consists of five members appointed by the Governor, at least three of whom shall be public members who serve without compensation. The head of a principal unit, in consultation with the labor–management review committee, shall submit to the Governor’s Award Panel each innovative idea for which an award is made under subsection (e) of this section, with a recommendation for any additional award by the Governor. The Governor’s Award Panel shall: review each innovative idea submitted to it; at least once a year, make a recommendation to the Governor about additional awards for the innovative ideas; and recommend to the Governor either monetary or nonmonetary awards for the employees’ innovative ideas. The Governor may make an additional cash award for an innovative idea. The cash award may not exceed $20,000. The Governor may grant paid administrative leave, not exceeding 20 workdays. The State’s use of an innovative idea: does not entitle the employee submitting the innovative idea to an award under this section; and does not give rise to any claim by the employee or the heirs or assigns of the employee.

There is an Incentive Performance Awards Program for employees. An incentive performance award for extraordinary service may be awarded for extraordinary performance in the public interest in connection with an employee's State employment. For extraordinary service, the head of a principal unit may make the following awards to an employee or members of a group of employees in that unit: cash of not more than $300; a gift of not more than $300 in value; paid administrative leave of not more than 3 days; or any combination of cash, gift, and leave of not more than $300 in value. An employee may only receive one incentive performance award under this subsection in any 12-month period. An incentive performance award for outstanding service in connection with State employment over a sustained period or a special State project may be awarded for: exceptional performance that exceeds the knowledge, skill, or ability required by the employee's position; or exceptionally meritorious acts or services in the public interest. For outstanding service, the head of a principal unit may make a cash award of not more than $3,000 to an employee of that unit. An employee may only receive one incentive performance award under this subsection in any 24-month period. Before making an award, the head of a principal unit shall: establish criteria for administering the Incentive Performance Awards Program, including standards of eligibility; and ensure that the employees in the unit have copies of the criteria. The head of the unit may amend the criteria at any time, but an amendment is not effective until the employees in the unit have been sent a copy of the amendment. The head of a principal unit may delegate to any subordinate supervising unit head the authority to make awards under this section.

An award made under this subtitle is in addition to the regular pay of the recipient.

A determination under this subtitle about any award or proposed award is not subject to employee grievance procedures.

A cash award and expenses related to other awards under this subtitle shall be paid: from increased revenue or monetary savings attributable to the innovative idea or service; from the funds of any principal unit that employs the employee or that benefits from the innovative idea or service; or as provided in the State budget.

The Secretary shall adopt regulations to carry out this subtitle. Regulations to implement the Innovative Idea Awards Program shall be made with the concurrence of the Governor's Award Panel. Within 90 days after the end of each fiscal year, the head of each principal unit shall submit to the Secretary a report on all awards made under this subtitle. The report shall be made on the form and in the manner that the Secretary requires.