(1) Except as provided in subsection (2), an employee may be eligible for an incentive award if:
(a) the employee's suggestion or invention results in eliminating or reducing an agency's expenditures or improving services to the public by permitting more work to be accomplished without increasing the cost of governmental operations; or
(b) the employee participates in or successfully completes a program designed to improve employee health or enhance employee safety.
(2) (a) An employee may not be eligible for an incentive award under subsection (1)(a) if the employee's suggestion or invention directly relates to the employee's assigned duties and responsibilities unless the proposal warrants special recognition as determined by the governing body.
(b) Suggestions or inventions relating to the following matters may not be considered for awards:
(i) personnel grievances;
(ii) classification and pay of positions;
(iii) matters recommended for study or review; and
(iv) proposals resulting from assigned or contracted audits, studies, surveys, reviews, or research.