A. As used in this section:
(1) "actual cost savings" means realized, not projected, cost savings substantiated by documentation;
(2) "award" means a government cost savings incentive award;
(3) "economy" includes maximizing the purchasing value of public funds;
(4) "efficiency" includes a significant reduction in paperwork and the elimination of unnecessary rules, regulations and procedures; and
(5) "state agency" means any office, department, institution, school district, board, commission, court, district attorney, council or committee of state government which receives appropriations and is authorized expenditures pursuant to a general appropriation act.
B. A state agency may provide an award to any employee whose accomplishment or written suggestion beyond the scope of his responsibility contributes to the efficiency, economy or improvement of agency operations and results in actual cost savings to the agency.
C. An award pursuant to this section shall:
(1) be paid only from actual cost savings;
(2) be paid only on the payday immediately following the first full pay period succeeding the award or immediately prior to separation or transfer from the agency; and
(3) be paid one time based on actual cost savings in an amount not to exceed the lesser of:
(a) two thousand dollars ($2,000); or
(b) an amount equal to ten percent of the actual cost savings attributable to the employee in the twelve-month period immediately preceding the award or a lesser period preceding the award, if appropriate.
D. Documentation substantiating awards pursuant to this section shall be submitted to the state personnel board which shall, as necessary or appropriate, prescribe regulations and review proposed awards made under this section and procedures used in making the awards to verify the cost savings for which the awards were made.
E. The state personnel board shall report by September 1 of each year to the legislative finance committee all awards paid and savings realized under this act [this section].
History: Laws 1986, ch. 39, § 1.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Structure New Mexico Statutes
Chapter 10 - Public Officers and Employees
Article 7 - Compensation and Working Conditions Generally
Section 10-7-2 - Salaries and wages; rules; direct deposit.
Section 10-7-3 - [Inapplicability of act.]
Section 10-7-4 - Group insurance; cafeteria plan; contributions from public funds.
Section 10-7-4.1 - Children, youth and families department; group life insurance.
Section 10-7-5 - [Premiums; deduction from salaries.]
Section 10-7-5.1 - Local public bodies; group health and group life insurance.
Section 10-7-6 - [Repeal and saving clause.]
Section 10-7-7 - [Old-age benefits under Social Security Act.]
Section 10-7-8 - Annuities and deferred compensation plans; reductions from gross salaries.
Section 10-7-9 - Minimum salary rate.
Section 10-7-10 - Accumulated sick leave; payment of certain excess amounts.
Section 10-7-11 - Accumulated sick leave prior to retirement; payment of certain excess amounts.
Section 10-7-12 - Government cost savings incentive award.
Section 10-7-13 - Leave; coordination with workmen's compensation benefits.
Section 10-7-14 - Short title.
Section 10-7-15 - Definitions.
Section 10-7-16 - Cafeteria plan; optional.
Section 10-7-17 - Salary reduction agreements.
Section 10-7-18 - Status of salary reduction.
Section 10-7-19 - Applicability to deferred compensation plans.
Section 10-7-20 - Qualified transportation fringe benefit.
Section 10-7-21 - Undercover agents; life insurance benefits.