CARSON CITY — The Nevada controller’s office pitched a bill Friday designed to encourage state agencies to charge more on procurement cards to reap more cash rebates.
Assembly Bill 10, sponsored by the controller’s office, was heard by the Assembly Committee on Government Affairs.
It designates that half of any cashback rewards would go to the agency and half to Nevada’s rainy day fund, unless money being spent has other restrictions, such as fee-based agencies or federal grants.
James Smack, chief deputy controller, told committee members that current state law doesn’t direct use of rebate money. Splitting the rewards would give agencies an incentive to use state-issued procurement cards, and add a savings mechanism for the Rainy Day fund.
In 2016, agencies charged $19.7 million in purchases and realized about $311,000 in rebates. That rebate would have yielded about $155,000 under the proposal, not including administrative fees.
The higher the dollar amount charged, the higher the percentage Nevada receives back.
Nevada’s rainy day fund was depleted during the recession, and contributions resumed only recently.
When it comes to saving, Smack said every little bit helps.
“If you do that every year until the next downturn, the rainy day fund, it will add up over time,” Smack said.
No one spoke against the bill and no action was taken by the committee.
Contact Sandra Chereb at firstname.lastname@example.org or 775-461-3821. Follow @SandraChereb on Twitter.