SECTION 1. Chapter 29 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by inserting after Section 9G the following new section:-

Section 9H. Unexpended Appropriations

Any state department or agency that has expended less than 75 per cent of its annual budget, inclusive of any supplemental appropriation as of the last day of March of each fiscal year, shall be eligible for shared savings by all employees of the department or agency in the last quarter of each fiscal year. Any unexpended appropriation in the department or agency at the end of the fiscal year shall be allocated and expended as follows: 

(a) 25 per cent of savings shall be divided equally among all employees of each department or agency or, where the compensation of the employees is subject to collective bargaining, to the bargaining unit for allocation among its members as it deems appropriate; provided, that no employee shall receive more than 10 per cent bonus pay above the employee’s regular annual salary or wages;

(b) 75 per cent of savings shall revert to the state treasurer and receiver general to be deposited in the General Fund of the commonwealth. Nothing in this section shall excuse any department or agency from performing its statutory and regulatory function to the fullest extent of the law.