EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 353 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 6, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 6, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3 and

1-5 4 of this act have the meanings ascribed to them in those sections.

1-6 Sec. 3. "Agency" means an agency, board, bureau, commission,

1-7 department, division, institution or office of the State of Nevada.

1-8 Sec. 4. "Employee" means an employee of an agency who is in the

1-9 classified or unclassified service of this state.

1-10 Sec. 5. 1. If an agency that is funded by appropriation from the

1-11 state general fund does not expend the entire amount of money

1-12 appropriated for its operating expenses during a fiscal year, the agency

1-13 shall:

1-14 (a) Within 90 days after the end of that fiscal year, request from the

1-15 chief of the budget division of the department of administration:

1-16 (1) A report of the cash flow of money for the agency for that fiscal

1-17 year; and

2-1 (2) The form adopted by the interim finance committee to report the

2-2 savings of the agency; and

2-3 (b) Complete the report of the savings of the agency on the form

2-4 adopted by the interim finance committee and return the report to the

2-5 chief of the budget division.

2-6 2. The chief of the budget division shall submit the completed report

2-7 of the savings of the agency on behalf of the agency to the interim

2-8 finance committee within 30 days after receiving the completed report.

2-9 3. After receiving a report of the savings of an agency, the interim

2-10 finance committee shall:

2-11 (a) Review the report at its next meeting;

2-12 (b) Determine what portion of the unexpended money reported is a

2-13 savings and may be returned to the agency for the payment of bonuses

2-14 pursuant to subsection 4, excluding money that does not qualify as a

2-15 savings pursuant to subsection 2 of section 6 of this act; and

2-16 (c) Require the amount of the savings to be returned to the agency.

2-17 4. Money returned to the agency pursuant to subsection 3 must be

2-18 used to pay bonuses to those persons chosen by the head of the agency

2-19 who are employed by the agency on the date the bonuses are to be paid.

2-20 To determine which employees of the agency are entitled to receive a

2-21 bonus, the head of the agency shall first give consideration to those

2-22 employees whose work was most instrumental in realizing the savings.

2-23 The determination of the head of the agency concerning which

2-24 employees are entitled to receive bonuses and the amounts of those

2-25 bonuses is not subject to approval and may not be appealed.

2-26 5. A bonus paid pursuant to this section must not exceed 10 percent

2-27 of the salary of an employee for the preceding 6 months or $2,500,

2-28 whichever is less.

2-29 6. If the money returned to an agency exceeds the amount required

2-30 to pay bonuses pursuant to subsection 4, the agency shall deposit the

2-31 excess amount with the state treasurer for credit to the fund to stabilize

2-32 the operation of the state government.

2-33 Sec. 6. 1. The interim finance committee shall adopt a form to be

2-34 used by agencies for reporting savings. The form must include:

2-35 (a) The amount of money appropriated to an agency for its work

2-36 program for the fiscal year;

2-37 (b) The amount of money expended by the agency;

2-38 (c) A description of the manner in which the savings were realized,

2-39 including, without limitation:

2-40 (1) The amount of the savings;

2-41 (2) The program used to realize the savings;

2-42 (3) The date on which the program was initiated;

2-43 (4) The time required for carrying out that program; and

3-1 (5) The manner in which the program improved the efficiency of

3-2 the agency or the services provided by the agency, or both; and

3-3 (d) Any other information deemed necessary by the interim finance

3-4 committee to determine whether the savings were realized because of

3-5 increased efficiency, and not from money that does not qualify for

3-6 consideration as savings pursuant to subsection 2.

3-7 2. Unexpended money of an agency does not qualify for

3-8 consideration as savings if the money is:

3-9 (a) From funds, other than the state general fund, made available to

3-10 the agency for the fiscal year;

3-11 (b) Set aside as a reserve pursuant to NRS 353.225;

3-12 (c) Realized from the deferred payment of a capital expense or

3-13 equipment purchased by the agency;

3-14 (d) Received from supplemental appropriations;

3-15 (e) Realized from the shifting of costs to another agency or

3-16 governmental entity;

3-17 (f) Realized from the failure of the agency to fill a position which is

3-18 not eliminated;

3-19 (g) Realized from a grant that is not expended; or

3-20 (h) Realized from reducing the amount or quality of services provided

3-21 by the agency.

3-22 Sec. 7. NRS 353.253 is hereby amended to read as follows:

3-23 353.253 1. Every agency, department and institution of the State of

3-42 therefor.

4-1 4. This section does not apply to the board of regents of the University

4-2 of Nevada and the Nevada state museum.

4-3 Sec. 8. This act becomes effective on July 1, 1999.