ARIZONA STATE SENATE
Phoenix, Arizona
performance based
personnel system
Establishes a performance based personnel system and the personnel reform and collective bargaining agreement legislative study committee.
Generally speaking, exempt state employees are employees and officers that are hired and retained at Athe will of@ the appointing person, such as agency directors and limited staff. Nonexempt employees are those persons currently employed under the Arizona Department of Administration (DOA) personnel system. Nonexempt employees may be separated from state service for cause as prescribed in statute. “Exempt” is the category utilized by H.B. 2603 to consist of persons hired within an agency who are not covered by the state personnel system. Exempt employees generally retain protections granted by state and federal labor laws, including the Fair Labor Standards Act (FLSA), Occupational Safety and Health Act (OSHA), whistle-blower protections, and state laws against nepotism and the purchase of office. Exempt employees, however, are retained on the basis of the adequacy of their performance.
This legislation allows agencies to utilize unbudgeted vacancy savings to grant pay raises to personnel exempt from the state personnel system, uncovers program managers, managers and any persons in charge of work units vested with a certain amount of discretion and independent judgement from the state personnel system, and alters the types of appeals that may be heard by the state personnel board. Because the specific fiscal impacts of these changes are unknown, the total fiscal impact of this legislation is indeterminable.
Performance Based Personnel System
1. Establishes a performance based personnel system and prescribes the duties of state agencies and the Director of DOA.
2. Requires the Director of DOA to annually evaluate and submit a report before October 1 on the implementation and operation of the performance based personnel system to the Governor and the Legislature.
State Personnel System Exemptions
3. Prohibits the continued designation of a position as nonexempt from the state personnel system if the Director of DOA determines that a position is an exempt position.
4. Requires the Director of DOA to review and approve or disapprove the designation of positions as exempt or nonexempt.
5. Exempts the following from the state personnel system:
a. persons who are at pay grade 24 or above as prescribed by DOA rules in effect on October 1, 2001.
b. persons at pay grade 23 who are in charge of and in control of a branch establishment, division or section of an agency, board or commission who are vested with a certain amount of discretion and independent judgment, specifically including assistant directors, program managers and managers as prescribed by DOA rules in effect on October 1, 2001.
c. persons in an attorney position at the Department of Law.
d. positions that are determined to be exempt and that are not classified as an exempt position after October 1, 2001 or at the time the position is next vacant, whichever occurs later.
6. Requires agency heads to annually submit the following before December 1 of each year to the Director of DOA:
7. Specifies that executive staff, executive secretarial and administrative assistant positions required to maintain a direct confidential working relationship with exempt officials are exempt from the state personnel system.
8. Limits exemption from the state personnel system those persons who provide legal counsel other than directly to the top level positions of a department or agency.
9. Allows state agency heads to use unbudgeted vacancy savings to give pay raises to exempt employees if the agency head certifies that the action does not and will not result in the need for an increased appropriation and to give salary increases to retain all state personnel if the agency head certifies that the action will not result in the need for an increased appropriation.
10. Requires vacancy savings pay raises to be based on merit and may be made annually up to the lesser of a 10 percent increase or the competitive market amount as determined by ADOA.
11. Requires vacancy savings salary increases to be used to retain personnel receiving bona fide job offers from non-state employers and allows increases in salary to meet the salary of the job offer if it is within the position’s pay range.
Legislative Study Committee
12. Establishes the personnel reform and collective bargaining agreement legislative (PRCBAL) study committee. Prescribes membership.
13. Requires the committee to conduct inquiries into the reform of the state personnel system including a review of the Georgia personnel system and the ability of state employees to enter into collective bargaining agreements.
14. Requires the PRCBAL study committee to report its findings and recommendations to the Legislature and the Governor by December 15, 2001.
15. Repeals the committee on January 1, 2002.
16. Provides for a general effective date.
1. Exempts pay grades 24 or above from the state personnel system.
2. Exempts persons who are at pay grade 23, who are in charge of a branch establishment, division or section of an agency, board or commission who are vested with a certain amount of discretion and independent judgement.
3. Removes exemption for persons in charge of a work unit who have a certain amount of discretion.
4. Retains requirements that:
a. state personnel rules allow for leaves of absence from a position in state service to an exempt position,
b. relate to appeals to the state personnel board dealing with suspensions of more than 40 hours, cross examination time limits.
5. Removes the purpose statement.
6. Establishes the personnel reform and collective bargaining agreement legislative study committee.
7. Specifies that an exemption to the state personnel system for those persons who are at a specified pay grade as prescribed in DOA rules.
RGO 2/27/01 DP 6-4-0-0-0 GOV 4/9/01 DPA 6-0-0-0
3rd Read 3/20/01 33-21-6-0
Prepared by Senate Staff
April 10, 2001