Bill Text: AZ SB1447 | 2017 | Fifty-third Legislature 1st Regular | Introduced


Bill Title: State personnel system; covered employees

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2017-02-01 - Senate read second time [SB1447 Detail]

Download: Arizona-2017-SB1447-Introduced.html

 

 

 

REFERENCE TITLE: state personnel system; covered employees

 

 

 

State of Arizona

Senate

Fifty-third Legislature

First Regular Session

2017

 

 

SB 1447

 

Introduced by

Senators Hobbs: Bradley, Farley, Mendez, Quezada

 

 

AN ACT

 

amending sections 15‑543, 18‑401, 38‑532, 38‑610.01, 38‑610.02, 38‑611.01 and 38‑611.02, Arizona Revised Statutes; repealing title 41, chapter 4, articles 4 and 5, Arizona Revised Statutes; amending title 41, chapter 4, Arizona Revised Statutes, by adding new articles 4 and 5; amending section 41‑782, Arizona Revised Statutes; providing for renumbering; amending title 41, chapter 4, article 6, Arizona Revised Statutes, by adding a new section 41‑783; amending title 41, chapter 4, article 6, Arizona Revised Statutes, by adding section 41‑784; amending section 41‑785, Arizona Revised Statutes, as renumbered; amending sections 41‑1233, 41‑1830.12 and 41‑1830.13, Arizona Revised Statutes; amending title 41, chapter 12, article 10, Arizona Revised Statutes, by adding section 41‑1830.14; amending section 41‑1830.15, Arizona Revised Statutes; repealing section 41‑1830.16, Arizona Revised Statutes; amending section 41‑2517, Arizona Revised Statutes; relating to the state personnel system. 

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 15-543, Arizona Revised Statutes, is amended to read:

START_STATUTE15-543.  Appeal from decision of board

A.  The decision of the governing board is final unless the certificated teacher files, within thirty days after the date of the decision, an appeal with the superior court in the county within which he the teacher was employed.

B.  The decision of the governing board may be reviewed by the court in the same manner as the decision made in accordance with section 41‑783 41‑785.  The proceeding shall be set for hearing at the earliest possible date and shall take precedence over all other cases, except older matters of the same character and matters to which special precedence is otherwise given by law. END_STATUTE

Sec. 2.  Section 18-401, Arizona Revised Statutes, is amended to read:

START_STATUTE18-401.  Information technology fund

A.  The information technology fund is established for use by the department and the committee.  Monies in the fund are subject to legislative appropriation.

B.  State agencies subject to section 41‑750 41‑747, all budget units and the legislative and judicial branches of state government shall contribute a pro rata share of the overall cost of information technology services provided by the department or committee.  The pro rata share is payable by payroll fund source, and the resultant amount shall be deposited in the information technology fund.  For all budget units and the legislative and judicial branches of state government, the pro rata share shall be .20 per cent percent of the total payroll.  Total payroll includes all fund sources including the state general fund, federal monies, special revenue funds, intergovernmental revenue monies, trust funds and other payroll fund sources.

C.  A claim for the pro rata share percentage payment shall be submitted according to the fund source, with the accompanying payroll, to the department of administration for deposit in the information technology fund.

D.  Notwithstanding section 35‑190, monies in the information technology fund do not revert to the state general fund at the end of each fiscal year. END_STATUTE

Sec. 3.  Section 38-532, Arizona Revised Statutes, is amended to read:

START_STATUTE38-532.  Prohibited personnel practice; violation; reinstatement; exceptions; civil penalty

A.  It is a prohibited personnel practice for an employee who has control over personnel actions to take reprisal against an employee for a disclosure of information of a matter of public concern by the employee to a public body that the employee reasonably believes evidences:

1.  A violation of any law.

2.  Mismanagement, a gross waste of monies or an abuse of authority.

B.  The disclosure by an employee to a public body alleging a violation of law, mismanagement, gross waste of monies or abuse of authority shall be in writing and shall contain the following information:

1.  The date of the disclosure.

2.  The name of the employee making the disclosure.

3.  The nature of the alleged violation of law, mismanagement, gross waste of monies or abuse of authority.

4.  If possible, the date or range of dates on which the alleged violation of law, mismanagement, gross waste of monies or abuse of authority occurred.

C.  An employee who knowingly commits a prohibited personnel practice shall be ordered by the state personnel board, a community college district governing board, a school district governing board, a city or town personnel board or any other appropriate independent personnel board established or authorized pursuant to section 38‑534 to pay a civil penalty of up to five thousand dollars to the state general fund, a county general fund, a community college district unrestricted general fund, a school district maintenance and operation fund or a city or town general fund, whichever is appropriate.  The employee who committed the prohibited personnel practice, not the governmental entity, shall pay the civil penalty.  On a finding that an employee committed a prohibited personnel practice, the employer shall take appropriate disciplinary action including dismissal, except that on a finding that an employee committed a prohibited personnel practice against an employee who disclosed information that the employee reasonably believed evidenced a violation of any law, the employee who knowingly committed the prohibited personnel practice is subject to a civil penalty of up to ten thousand dollars, the employer shall dismiss the employee and the employee is barred from any future employment by the government entity.

D.  An employee or former employee against whom a prohibited personnel practice is committed may recover attorney fees, costs, back pay, general and special damages and full reinstatement for any reprisal resulting from the prohibited personnel practice as determined by the court.

E.  An employee does not commit a prohibited personnel practice if he takes reprisal against an employee if that employee discloses information in a manner prohibited by law or the materials or information are prescribed as confidential by law.

F.  This section may not be used as a defense in a disciplinary action where the employee is being disciplined for cause pursuant to section 41‑773 41‑751, except in a hearing on a complaint brought pursuant to this section by an employee or former employee who believes he has been the subject of a prohibited personnel practice as prescribed in this section as the result of a disclosure of information.

G.  On request or at any time an employee alleges reprisal, an employer shall provide an employee who is subject to disciplinary or corrective action, suspension, demotion or dismissal with a copy of this section.

H.  If an employee or former employee believes that a personnel action taken against him is the result of his disclosure of information under this section, he may make a complaint to an appropriate independent personnel board, if one is established or authorized pursuant to section 38‑534, or to a community college district governing board, school district governing board or city or town council.  If an independent personnel board has not been established or authorized, or if a school district governing board, a community college district governing board or a city or town council does not hear and decide personnel matters brought pursuant to this section, the employee or former employee may make a complaint to the state personnel board.  A complaint made pursuant to this subsection shall be made within ten days of the effective date of the action taken against him.  The state personnel board, a school district governing board, a community college district governing board, a city or town council or any other appropriate independent personnel board shall, pursuant to the rules governing appeals under section 41‑783 41‑785, make a determination concerning:

1.  The validity of the complaint.

2.  Whether a prohibited personnel practice was committed against the employee or former employee as a result of disclosure of information by the employee or former employee.

I.  If the state personnel board, a community college district governing board, a school district governing board, a city or town council or any other appropriate independent personnel board established or authorized pursuant to section 38‑534 determines that a prohibited personnel practice was committed as a result of disclosure of information by the employee or former employee, it shall rescind the personnel action and order that all lost pay and benefits be returned to the employee or former employee.  The employee, former employee, employee alleged to have committed a prohibited personnel practice pursuant to subsection A of this section or employer may appeal the decision of the state personnel board, a community college district governing board, a school district governing board, a city or town council or any other appropriate independent personnel board established or authorized pursuant to section 38‑534 to the superior court as provided in title 12, chapter 7, article 6. 

J.  For purposes of a hearing by the state personnel board, a school district governing board, a community college district governing board, a city or town council or any other appropriate independent personnel board conducted under this section, the employee, former employee, employee alleged to have committed the prohibited personnel practice pursuant to subsection A of this section and employer may be represented by counsel.  In addition, representation by counsel in such hearings shall meet any other requirements stipulated by the state personnel board, a school district governing board, a community college district governing board, a city or town council or any other appropriate independent personnel board or as required by law.

K.  An employee or former employee may also seek injunctive relief as is otherwise available in civil actions.  A court may award reasonable attorney fees to an employee or former employee who prevails in an action pursuant to this section, but the award of attorney fees shall not exceed ten thousand dollars.

L.  This section shall not be construed to limit or extend the civil or criminal liability of an employee or former employee for any disclosure of information or to limit an employee's right to a separate pretermination hearing with the employee's employer, as provided by law.

M.  An employee who knowingly makes a false accusation that a public officer or employee who has control over personnel actions has engaged in a violation of any law, mismanagement, a gross waste of monies or an abuse of authority is personally subject to a civil penalty of up to twenty‑five thousand dollars and dismissal from employment by the employer. END_STATUTE

Sec. 4.  Section 38-610.01, Arizona Revised Statutes, is amended to read:

START_STATUTE38-610.01.  Leave of absence and compensation for officers and employees during active military service

A.  If the president of the United States or the governor of this state declares that a state of emergency exists, an officer or employee of this state who is ordered to active military service of the United States or this state as a member of the national guard, air national guard, army reserve, naval reserve, marine corps reserve, air force reserve or coast guard reserve and whose state employment is subject to title 41, chapter 4, article 4 or who is exempt pursuant to section 41‑742 41‑771, subsection A, paragraph 1, 2, 3, 4, or 5, 7, 8, 9, 10, 11, 12 or 13 or subsection B, paragraph 1, 2, 3, 4, 5, 7 or 8 is eligible for an additional leave of absence until released from active duty by competent authority.  During the additional leave of absence, the officer or employee shall continue to receive the officer's or employee's salary or compensation, less the amount of all pay and allowances for military activities while on active duty.

B.  An officer or employee who receives salary or compensation pursuant to subsection A of this section is not entitled to accrue annual leave or sick leave during the period of active duty.  Before qualifying for the compensation pursuant to subsection A of this section, the officer or employee must exhaust all military leave balances by the time of activation or at any time during the active duty period.

C.  An officer or employee may receive compensation pursuant to subsection A of this section for the continuous duration of the officer's or employee's order.

D.  Within sixty days after an officer or employee who receives pay differential pursuant to this section completes the period of active duty, the officer or employee shall provide proof that the officer or employee rendered honorable service while on active duty during any period for which the officer or employee received the pay differential pursuant to this section.  The state may seek recovery of the pay differential from any person who fails to provide proof of honorable service.

E.  The director of the department of administration shall establish procedures to be used by an eligible officer or employee to receive compensation pursuant to subsection A of this section. END_STATUTE

Sec. 5.  Section 38-610.02, Arizona Revised Statutes, is amended to read:

START_STATUTE38-610.02.  Leave of absence and compensation for national disaster medical system employment

A.  An officer or employee of this state who is called into employment to the national disaster medical system under the United States department of health and human services and whose state employment is subject to title 41, chapter 4, article 4 or who is exempt pursuant to section 41‑742 41‑771, subsection A, paragraph 1, 2, 3, 4, or 5, 7, 8, 9, 10, 11, 12 or 13 or subsection B, paragraph 1, 2, 3, 4, 5, 7 or 8 is eligible for an additional leave of absence until released from active duty by competent authority.  During the additional leave of absence, the officer or employee shall continue to receive the officer's or employee's salary or compensation, less the amount of all pay and allowances for activities while on active duty with the national disaster medical system.

B.  An officer or employee who receives salary or compensation pursuant to subsection A of this section is not entitled to accrue annual leave or sick leave during the period of active duty.

C.  An officer or employee may receive compensation pursuant to subsection A of this section for the continuous duration of the officer's or employee's order.

D.  Within sixty days after an officer or employee who receives pay differential pursuant to this section completes the period of active duty, the officer or employee shall provide proof that the officer or employee rendered honorable service while on active duty during any period for which the officer or employee received the pay differential pursuant to this section.  This state may seek recovery of the pay differential from any person who fails to provide proof of honorable service.

E.  The rights and duties of an officer or employee who is subject to this section is subject to the uniformed services employment and reemployment rights act (38 United States Code chapter 43).

F.  The director of the department of administration shall establish procedures to be used by an eligible officer or employee to receive compensation pursuant to subsection A of this section. END_STATUTE

Sec. 6.  Section 38-611.01, Arizona Revised Statutes, is amended to read:

START_STATUTE38-611.01.  Arizona state retirement system; incentive compensation plan; special market adjustments

The Arizona state retirement system established by chapter 5, article 2 of this title:

1.  May administer an incentive compensation plan for investment related personnel established in consultation with the director of the department of administration.  The Arizona state retirement system shall file a copy of any incentive compensation plan for investment related personnel with the governor, the president of the senate, the speaker of the house of representatives, the office of strategic planning and budgeting, the joint legislative budget committee and the department of administration within ten business days of its adoption or readoption.

2.  Except for the incentive compensation plan for investment related personnel, shall not establish any other compensation plans without the approval of the director of the department of administration.

3.  May request that the director of the department of administration establish a special pay plan market adjustments system for the Arizona state retirement system director, deputy director, chief investment officer, investment related personnel and fiduciary or investment counsel.  The director of the department of administration, pursuant to section 41‑742, subsection C, paragraph 4 41‑744, shall establish the special pay plan market adjustments system after considering the recommendations of the Arizona state retirement system board and using relevant market data.  The director of the department of administration may adopt other special pay plans market adjustments systems determined necessary for certain classes or groups of Arizona state retirement system employees, taking into consideration such factors as occupational patterns, economic conditions and pay ranges common to government, business and industry, and shall work with the Arizona state retirement system in establishing the plans. END_STATUTE

Sec. 7.  Section 38-611.02, Arizona Revised Statutes, is amended to read:

START_STATUTE38-611.02.  Public safety personnel retirement system; special market adjustments

The board of trustees of the public safety personnel retirement system established by chapter 5, article 4 of this title:

1.  May administer an incentive compensation plan for investment related personnel established in consultation with the director of the department of administration.  The public safety personnel retirement system shall file a copy of any incentive compensation plan for investment related personnel with the governor, the president of the senate, the speaker of the house of representatives, the office of strategic planning and budgeting, the joint legislative budget committee and the department of administration within ten business days of its adoption or readoption.

2.  Except for the incentive compensation plan for investment related personnel, shall not establish any other compensation plans without the approval of the director of the department of administration.

3.  May request that the director of the department of administration establish a special pay plan market adjustments system for the public safety personnel retirement system administrator, deputy or assistant administrator, chief investment officer, investment related personnel and fiduciary or investment counsel.  The director of the department of administration, pursuant to section 41‑742, subsection C, paragraph 4 41‑744, shall establish the special pay plan market adjustments system after considering the recommendations of the public safety personnel retirement system board of trustees, including consideration of the salary ranges recommended by an independent compensation consultant and using relevant market data.  The director of the department of administration may adopt other special pay plans market adjustments systems determined necessary for certain classes or groups of public safety personnel retirement system employees, taking into consideration such factors as occupational patterns, economic conditions and pay ranges common to government, business and industry, and shall work with the public safety personnel retirement system in establishing the plans.END_STATUTE

Sec. 8.  Repeal

Title 41, chapter 4, articles 4 and 5, Arizona Revised Statutes, are repealed.

Sec. 9.  Title 41, chapter 4, Arizona Revised Statutes, is amended by adding new articles 4 and 5, to read:

ARTICLE 4.  STATE PERSONNEL SYSTEM

START_STATUTE41-741.  Definitions

In this article and articles 5 and 6 of this chapter, unless the context otherwise requires:

1.  "Employee" means a person holding a position in state service.

2.  "State service" means all offices and positions of employment in state government except offices and positions exempted by this article. END_STATUTE

START_STATUTE41-742.  Powers and duties of the director

A.  The director is responsible for direction and control of personnel administration.

B.  The director shall:

1.  Appoint employees necessary to perform the duties prescribed by this article.

2.  Have authority for developing and administering a program of personnel administration for the state service in conformance with the personnel rules.

3.  Have authority to establish such offices as may be necessary to maintain an effective and economical program of personnel administration.

4.  Have the power to deputize employees in various state agencies where certain of the functions of personnel administration can be performed by such deputies.

5.  Make an annual report and recommendation to the legislature and the joint legislative budget committee as provided in section 41‑743.

6.  Adopt rules relating to personnel and personnel administration.

7.  Subject to legislative appropriation, have the authority to contract for the services of consultants necessary to perform the annual salary plan and salary plan adjustment recommendations.

8.  Establish a mandatory program of annual personnel management training for all state employees with supervisory or managerial responsibility that is appropriate to the nature and scope of the employees' supervisorial responsibilities.  The director may waive the annual mandatory training on a case by case basis.  The training shall include at least the following subjects:

(a)  Basic employee supervisory or managerial skills.

(b)  Establishing employee objectives and performance measures.

(c)  Measuring employee performance and the use of performance evaluation methods.

(d)  Employee discipline training and discipline procedures.

(e)  Other subjects as determined by the director.END_STATUTE

START_STATUTE41-743.  Annual report and recommendations

A.  The director shall prepare a report on state personnel and the operation of the state personnel system.

B.  The report shall include:

1.  Information concerning all state employees, including employees of all executive, legislative and judicial branch agencies.  All agencies shall provide any information requested by the director to prepare the annual report.

2.  Information concerning the number of employees affected by and reasons for turnover within state service.

3.  Information concerning the compensation during the preceding year and the coming year of state employees and the compensation of other public employees and private employees.

4.  An advisory recommendation on the salary plan and adjustments to the plan for employees in state service.  In establishing the salary plan the director shall consider the relative levels of duties and responsibilities of the various classes of positions, rates paid for comparable positions elsewhere and other relevant factors.

5.  An advisory recommendation for all positions that have been exempted from covered service pursuant to section 41‑771.  Salary recommendations shall not be required for elected officials.  The director shall make advisory salary recommendations for specific positions in the governor's office, the legislature and the courts if requested by the respective administrative heads of these units of state government.

6.  The overtime pay requirements of all state agencies except those agencies excluded by section 41‑771.

7.  Other information as determined by the director.

C.  The annual report and recommendations shall be presented to the governor and the legislature on or before September 1 of each year.

D.  Notwithstanding section 41‑771, the Arizona board of regents, the department of public safety, the judicial department and the Arizona state schools for the deaf and the blind shall prepare and submit an annual report on their personnel as prescribed in this section.  The report shall include:

1.  Information concerning the number of employees affected by and reasons for turnover of their employees.

2.  Information concerning the compensation during the preceding year and the coming year of their employees and the compensation of other public employees and private employees.

3.  An advisory recommendation on the salary plan and adjustments for their employees.  In establishing the salary plan, they shall consider the relative levels of duties and responsibilities of the various classes of positions, rates paid for comparable positions elsewhere and other relevant factors.

4.  Their overtime pay requirements.END_STATUTE

START_STATUTE41-744.  Special market adjustments; committee

A.  The director shall establish a system of special market adjustments to modify salaries of state employees within certain identified job classifications.

B.  The system shall provide for salary adjustments, subject to legislative appropriation, for state positions and for positions in job classifications that, in the opinion of the director, are critical to the orderly conduct of the agencies in which the positions are located and that meet specific comparative criteria.  These criteria include whether the positions are experiencing substantially above average turnover or have salaries that are substantially below comparable positions outside state service.

C.  The director shall establish procedures to determine the job classifications eligible for special market adjustments.  The procedures shall include:

1.  The systematic identification of job classifications based on specific comparative criteria including turnover and salary information.

2.  The consideration of job classifications identified by agency directors.

3.  In cases in which significant increases are recommended, recommended increases may be scheduled over two or more years.  If multiple year increases are recommended, the cost of funding the proposed adjustments in each year shall be included.

D.  A special market adjustment committee is established consisting of the following members:

1.  The director of the governor's office of strategic planning and budgeting or the director's designee.

2.  The administrative director of the courts or the administrative director's designee.

3.  Two members who have at least ten years of experience in human resources administration and who are appointed by the director of the department of administration.  One of these members shall be employed in the private sector.

4.  One member who is a member of an employee organization that has at least one thousand members and who is appointed by the director of the department of administration.

5.  Two members who are state agency directors, deputy directors or assistant directors and who are appointed by the director of the department of administration.

E.  Members of the special market adjustment committee who are appointed by the director of the department of administration shall not serve more than two consecutive three year terms.  The department shall provide staff for the special market adjustment committee.

F.  The special market adjustment committee may assist the director in determining recommendations for the cost of funding the proposed adjustments. END_STATUTE

START_STATUTE41-745.  Reduction in force procedures

A.  The director shall establish reduction in force procedures to be used by all state agencies if reductions are required by reason of lack of monies or work, abolition of a position, a material change in duties or organization or the introduction of other cost reduction initiatives and for reemployment of employees separated by reduction in force.

B.  The procedures shall give substantially equal consideration in both reduction in force and reemployment to the person's performance record and seniority in service. Consideration of the person's performance is limited to performance, as measured by up to the three most recent performance evaluations conducted using a performance measurement system approved by the director, during a period of not more than the two years immediately preceding the reduction in force.  Consideration of the person's seniority is limited to tenure in the current job class series as defined in the personnel rules during the five years immediately preceding the reduction in force.

C.  The procedures shall provide for a reduction in force to be limited to a single agency or organizational unit of an agency or agency operations within a geographic area.

D.  The procedures shall provide for an expedited review of any determinations made during a reduction in force.

E.  The procedures shall provide that if, by legislative action or otherwise, part or all of the functions of one department or agency are transferred to another department or agency, the affected employees shall be accepted as transfers by the receiving department or agency at the same pay grade unless the receiving department or agency has no need for the particular position or positions.  If this is true the rules concerning reduction in force apply, and the employees shall not be transferred to the receiving department or agency with the transfer of the function and these employees have reduction in force rights in the department or agency from which the function has been abolished or transferred. END_STATUTE

START_STATUTE41-746.  Required reduction in hours

An agency director may require agency covered employees to work reduced hours in order to comply with any reduction in appropriations.  The director of the department of administration shall prescribe procedures to implement these reductions. END_STATUTE

START_STATUTE41-747.  Contribution of pro rata share for personnel division fund

A.  State service agencies within the covered service shall contribute a pro rata share of the overall cost of personnel administration services provided by the department.  The pro rata share shall be payable by payroll fund source and the resultant amount shall be deposited, pursuant to sections 35‑146 and 35‑147, in a personnel division fund for appropriation by the legislature for the personnel board and the personnel division of the department.  The pro rata share shall be 1.10 percent of the total payroll of the agency. Of the 1.10 percent pro rata share, 0.03 percent of total payroll shall be deposited in a separate subaccount of the personnel division fund for use by the personnel board and shall be subject to legislative appropriation.  Total payroll shall include all fund sources, including the state general fund, federal monies, special revenue funds, intergovernmental revenue monies, trust funds and other payroll fund sources.

B.  A claim for the pro rata share percentage payment shall be submitted according to the fund source, with the accompanying payroll to the department for deposit in the personnel division fund.

C.  Notwithstanding section 35‑190, only monies in excess of five hundred thousand dollars revert to the state general fund at the end of each fiscal year.  The state comptroller shall pay any monies determined to be owed to the federal government from the personnel division fund before calculating the reversion. END_STATUTE

START_STATUTE41-748.  Agreements for services and facilities

The department of administration may enter into agreements with any municipality or other political subdivision or any agency thereof to furnish personnel administration services and facilities of the department.  Unless funds have been appropriated by the legislature for such purpose, any such agreement shall provide for reimbursement to the state of the actual cost of the services and facilities furnished, as determined by the department. END_STATUTE

START_STATUTE41-749.  Coordination with department of economic security

The department of administration and the department of economic security may develop a comprehensive agreement whereby the personnel and facilities of the department of economic security are used to assist the department in the performance of its personnel administration duties, if the agreement will:

1.  Result in more economical performance of the duties of the department.

2.  Provide for reimbursement to the department of economic security wherever federal regulations so require. END_STATUTE

START_STATUTE41-750.  Refusal of examination or certification

The director may refuse to examine or, after examination, may refuse to certify as an eligible or may withdraw from certification anyone who:

1.  Has practiced any deception or fraud in his application, in his examination or in securing his eligibility.

2.  Has failed to reply within a reasonable time to communications concerning his availability for employment.

3.  Is found to be unsuited or not qualified for employment.

4.  Lacks any of the requirements established by the director for the examination or position for which he applies.

5.  Is physically or mentally so disabled as to be rendered unfit to perform the duties of the position to which he seeks appointment. END_STATUTE

START_STATUTE41-751.  Causes for dismissal or discipline

A.  Each of the following constitutes cause for discipline or dismissal of an employee in the state service:

1.  Fraud in securing appointment.

2.  Incompetency.

3.  Inefficiency.

4.  Neglect of duty.

5.  Insubordination.

6.  Dishonesty.

7.  Drunkenness on duty.

8.  Addiction to the use of narcotics or habit-forming drugs.

9.  Absence without leave.

10.  Final conviction of a felony or a misdemeanor involving moral turpitude.

11.  Discourteous treatment of the public.

12.  Improper political activity.

13.  Wilful disobedience.

14.  Misuse or unauthorized use of state property.

B.  In addition to the causes prescribed by the terms of subsection A of this section, the director may establish such other causes deemed necessary.

C.  The director shall prescribe definitions for each of the causes for dismissal or discipline prescribed or established under this section that shall be used by all employees and the personnel board in evaluating dismissals and disciplinary actions.END_STATUTE

ARTICLE 5.  PERSONNEL ADMINISTRATION

START_STATUTE41-771.  Exemptions

A.  This article and article 6 of this chapter do not apply to:

1.  Elected state officers.

2.  State officers and members of boards and commissions who are appointed by the legislature or the governor, the employees of the governor's office, the employees of the Arizona legislative council and the employees of the supreme court and the court of appeals.

3.  State officers and employees who are appointed or employed by the legislature or either house of the legislature.

4.  The curator, curatorial aides and tour guides and any other person who is employed to work in the state capitol museum.

5.  Officers or employees of state universities and personnel of the Arizona state schools for the deaf and the blind.

6.  Patients or inmates who are employed in state institutions.

7.  Officers and enlisted personnel of the national guard of Arizona.

8.  The single administrative or executive director and one deputy director of each state department or agency.

9.  Not more than two assistants who serve in the office of an elected state officer, if that elected state officer is the sole elected head of the department.

10.  One administrative assistant who serves a board or commission elected to head a state agency, department or division, and one assistant for each elected member of such a board or commission.

11.  Persons who report directly to the governor.

12.  Employees of the department of emergency and military affairs who occupy Arizona national guard positions identified as mobilization assets.

13.  Except as otherwise required by federal law and except for certified peace officers as defined in section 38‑842, correctional officers and juvenile correctional officers, state officers and employees who are appointed or employed after December 31, 2006 and who are at a pay grade of twenty-four or above.

14.  Any other position exempted by law.

B.  Except for section 41‑772, subsections D, E and F, this article and article 6 of this chapter do not apply to those positions determined by the director to meet any of the following criteria:

1.  Top level positions in a department or agency that determine and publicly advocate substantive program policy.  This includes those persons who are engaged in the direction of line operations if they report directly to the director or deputy director of the agency and in large multiprogram agencies those persons who report directly to the head of a primary component of the department or agency.

2.  Those persons who are required to maintain a direct confidential working relationship with an exempt official.

3.  Persons who provide legal counsel.

4.  Positions that are part time.

5.  Positions that are temporary and that are established for the purpose of conducting a special project, study or investigation.

6.  Positions that are essentially for rehabilitation purposes.

7.  Positions that are determined by the director to be directly or indirectly engaged in establishing policy or enforcement standards.

8.  Directors of all institutions that maintain supervision or care on a twenty-four hour per day basis other than halfway houses or group homes. END_STATUTE

START_STATUTE41-772.  Prohibitions; violation; classification; civil penalty; protection of civil or political liberties

A.  An employee shall not:

1.  Use any political endorsement in connection with any appointment to a position in the state service.

2.  Use or promise to use any official authority or influence for the purpose of influencing the vote or political action of any person or for any consideration.

B.  An employee or member of the personnel board shall not be a member of any national, state or local committee of a political party, an officer or chairman of a committee of a partisan political club, or a candidate for nomination or election to any paid public office, shall not hold any paid, elective public office or shall not take any part in the management or affairs of any political party or in the management of any partisan or nonpartisan campaign or recall effort, except that any employee may:

1.  Express his opinion.

2.  Attend meetings for the purpose of becoming informed concerning the candidates for public office and the political issues.

3.  Cast his vote and sign nomination or recall petitions.

4.  Make contributions to candidates, political parties or campaign committees contributing to candidates or advocating the election or defeat of candidates.

5.  Circulate candidate nomination petitions or recall petitions.

6.  Engage in activities to advocate the election or defeat of any candidate.

7.  Solicit or encourage contributions to be made directly to candidates or campaign committees contributing to candidates or advocating the election or defeat of candidates.

C.  Except for expressing his opinion or pursuant to section 16‑402, an employee shall not engage in any activity permitted by this section while on duty, while in uniform or at public expense.

D.  A person shall not solicit any employee or a member of the personnel board to engage or not engage in activities permitted by this section with the direct or indirect use of any threat, intimidation or coercion including threats of discrimination, reprisal, force or any other adverse consequence including the loss of any benefit, reward, promotion, advancement or compensation.

E.  A person shall not subject any employee or a member of the personnel board engaging in activity permitted by this section to any direct or indirect discrimination, reprisal, force, coercion or intimidation or any other adverse consequence including the loss of any benefit, reward, promotion, advancement or compensation.

F.  A person shall not subject any employee or member of the personnel board who chooses not to engage in any activity permitted by this section to any direct or indirect discrimination, reprisal, force, coercion or intimidation or any other adverse consequence including the loss of any benefit, reward, promotion, advancement or compensation.

G.  This section does not apply to school board elections or community college district governing board elections, and an employee may serve as a member of the governing board of a common or high school district or as a member of a community college district governing board.

H.  An employee who violates any of the provisions of this section shall be subject to suspension of not less than thirty days or dismissal.

I.  A person who violates:

1.  Subsection D, E or F of this section is guilty of a class 6 felony.

2.  Any other provision of this section is guilty of a class 1 misdemeanor.

J.  In addition to any other penalty, any person soliciting or encouraging a contribution in a manner prohibited by this section is subject to a civil penalty of up to three times the amount of the contribution solicited or encouraged plus costs, expenses and reasonable attorney fees.

K.  This section shall not be construed as denying any employee or board member his civil or political liberties as guaranteed by the United States and Arizona Constitutions.

L.  It is the public policy of this state, reflected in this section, that government programs be administered in an unbiased manner and without favoritism for or against any political party or group or any member in order to promote public confidence in government, governmental integrity and the efficient delivery of governmental services and to ensure that all employees are free from any express or implied requirement or any political or other pressure of any kind to engage or not engage in any activity permitted by this section. Toward this end, any person or entity charged with the interpretation of this section shall take into account the policy of this section and shall construe any of its provisions accordingly. END_STATUTE

START_STATUTE41-773.  Unlawful acts; violation; classification

A.  No person may make any false statement, certificate, mark, rating or report with regard to any test, certification or appointment made under any provision of this chapter or in any manner commit any fraud preventing the impartial execution of this chapter and the rules.

B.  No person may, directly or indirectly, give, render, pay, offer, solicit or accept any money, service or other valuable consideration for or on account of any appointment, proposed appointment, promotion or proposed promotion to, or any advantage in, a position in the state service.

C.  No employee of the department, examiner or other person shall obstruct any person in his right to examination, eligibility, certification or appointment under this chapter, or furnish to any person any special or secret information for the purpose of affecting the rights or prospects of any person with respect to employment in the state service.

D.  No elected or appointed official may with corrupt intent use his political influence or position to cause the firing, promotion or demotion of any public employee or the hiring of or failure to hire any applicant for public employment.

E.  An elected or appointed official who knowingly and with corrupt intent violates subsection D of this section is guilty of a class 2 misdemeanor.

F.  A contact by an elected or appointed official with a public agency regarding the qualifications of an applicant shall not be construed as illegally using political influence or position. END_STATUTE

START_STATUTE41-774.  Certification by division

A salary shall not be paid to any employee in the state service unless the director or the director's designee has certified that the employment is in accordance with this article. END_STATUTE

START_STATUTE41-775.  Violation; classification

A.  Except as provided in section 41‑772, any person who knowingly commits any act that is unlawful under this article or who violates any provision of this article is guilty of a class 2 misdemeanor unless another classification is specifically prescribed in this article.

B.  Any person who is convicted of a class 2 misdemeanor under this article shall be ineligible for appointment to or employment in a position in the state service for a period of five years and, if the person is an employee of the state at the time of conviction, is subject to suspension for not less than ninety days or dismissal. END_STATUTE

START_STATUTE41-776.  State employees; mentoring

A.  The director shall provide in the personnel rules a procedure that allows state employees to voluntarily engage in activities that support mentoring, education and youth development of school age youths in this state.

B.  The rules shall:

1.  Encourage state employees to volunteer as mentors to school age youths at public schools, private schools or home schools or through faith‑based organizations.

2.  Include:

(a)  Up to one hour of flex time per week, not to exceed five hours per calendar month.

(b)  Provisions that the flex time must be made up within the same work week that it is taken and that flex time is unpaid, cannot be accrued and does not count toward overtime hours. END_STATUTE

Sec. 10.  Section 41-782, Arizona Revised Statutes, is amended to read:

START_STATUTE41-782.  Powers and duties of the state personnel board

A.  Except as provided by section 41‑1830.16, The state personnel board shall hear and review appeals as provided in this article relating to dismissal of a covered employee from covered state service, suspension for more than eighty forty working hours or involuntary demotion resulting from disciplinary action as defined in the personnel rules for an employee in covered service.

B.  The state personnel board shall hear and review complaints as provided in title 38, chapter 3, article 9, relating to any personnel action taken against an employee or former employee of this state, except an employee or former employee of a state university or the Arizona board of regents, which the employee or former employee believes was taken in reprisal for the employee's or former employee's disclosure of information to a public body.  The state personnel board shall recommend the dismissal of a supervisor or other responsible person, other than an elected official, who it determines committed a prohibited personnel practice.

C.  The state personnel board may adopt rules it deems necessary for the administration of hearings and the review of appeals and complaints as prescribed in this section.

D.  The state personnel board shall only exercise authority that is specifically granted to the board pursuant to this article. END_STATUTE

Sec. 11.  Renumber

Section 41‑783, Arizona Revised Statutes, is renumbered as section 41‑785.

Sec. 12.  Title 41, chapter 4, article 6, Arizona Revised Statutes, is amended by adding a new section 41-783, to read:

START_STATUTE41-783.  Personnel rules

The personnel rules shall provide for:

1.  A position classification plan for all positions in the state service.

2.  Competitive examinations to test the relative qualifications of applicants for positions in state service.  All competitive examinations shall be given statewide.  For the purposes of this paragraph, "statewide" means that a competitive examination shall be given in an office of the department of economic security in each city or town of the state in which the office is located, unless the director designates another location within such city or town.

3.  Evaluation of performance of employees for the purpose of improving staff effectiveness.

4.  Promotions or transfers between classes that give appropriate consideration to the applicant's qualifications, record of performance and conduct.

5.  Establishment of eligibility lists for appointment and promotion.  The names of successful candidates shall be placed on the lists in the order of their relative excellence in their respective examinations.

6.  Rejection of candidates for appointment or promotion who fail to fulfill reasonable requirements.

7.  Delivery of a list of qualified applicants to any state agency requiring it.  The state agency may select and hire an employee from this list.

8.  A minimum period of original probationary service following initial appointment.  During a period of original probationary service, the probationary employee shall perform the actual duties of the position and may be discharged without cause.  A period of promotional probation service shall be established by the director.

9.  A reasonable period of provisional employment without competitive examination if there is no eligibility list available for the position.

10.  Emergency appointments for not more than thirty days with or without examination as provided by the rules.

11.  Temporary appointments to positions that occur, terminate and recur periodically regardless of the duration of the position.

12.  Transfer from a position in one department to a similar position in another department involving similar qualifications, duties, responsibilities and salary ranges.

13.  Reinstatement to an eligibility list of previous employees who have resigned in good standing or who were separated from their positions without fault on their part.

14.  Reduction in force by reason of lack of funds or work, abolition of a position or material change in duties or organization, and for reemployment of employees separated by reduction in force as provided in section 41‑745.

15.  The circumstances under which an employee may be suspended without pay.

16.  Establishment of a plan for resolving employee grievances and complaints and in cases of alleged discrimination for referral to the appropriate agency if an employee is not otherwise satisfied with the final grievance resolution.

17.  Attendance, including hours of employment, annual leave, sick leave and special leaves of absence, with or without pay or with reduced pay.  Rules on hours of employment shall provide for the implementation of flexible hours of employment as an option for employees if the director of an employing agency decides, in the director's discretion, that existing services can be maintained.  The rules shall provide:

(a)  For the transfer of accumulated annual leave from one employee to another employee in the same agency and for transfer of accumulated annual leave from one employee to another employee in another agency if the employees are members of the same family.  Such transfers may occur if the employee to whom the leave is transferred has a seriously incapacitating and extended illness or injury or a seriously incapacitating and extended disability that is caused by pregnancy or childbirth or a member of the employee's immediate family has a seriously incapacitating and extended illness or injury or a seriously incapacitating and extended disability that is caused by pregnancy or childbirth and the employee has exhausted all available leave balances.  Transferred annual leave shall be increased or reduced proportionally by the difference in the salaries of the employees as determined by department rule.  For the purposes of this subdivision, "family" means spouse, natural child, adopted child, foster child, stepchild, natural parent, stepparent, adoptive parent, grandparent, grandchild, brother, sister, sister-in-law, brother-in-law, son-in-law, daughter-in-law, mother-in-law, father-in-law, aunt, uncle, nephew or niece.

(b)  That an employee who receives transferred annual leave as provided in subdivision (a) of this paragraph is limited to using six consecutive months of transferred leave per occurrence unless the employee has applied for long-term disability insurance as provided by rule.

(c)  That if a permanent status employee is unable to work due to a non‑job related, seriously incapacitating and extended illness or injury, as certified by a physician of the employee subject to confirmation by a physician chosen by the agency, and the employee has exhausted all leave balances and any leave transferred pursuant to subdivision (a) of this paragraph, the employee shall be placed on leave without pay status for up to one hundred eighty days or until able to return to work, whichever is sooner.

18.  Development of policies and procedures for the employment of qualified disabled job applicants.

19.  Establishment of a clerical pool in any locality where the demand for temporary clerical help warrants.

20.  Leaves of absence to allow employees in state service to accept appointment to nonelective positions in state employment that are exempt from the terms of this article and article 5 of this chapter.

21.  The adoption of special rules applicable solely to special classes of employees whose duties, as determined by the director, justify the adoption of rules applicable only to a specific class of employees.

22.  The establishment of standards of ethical conduct for employees.

23.  Reasonable public notice to be given of the examinations for a position and the examination dates.

24.  Authorization to publish and make available to all employees a handbook outlining pertinent rules.

25.  A determination as to which positions in state employment shall qualify the employee to receive overtime pay.  In making this determination the director shall consider all employees who are covered under the fair labor standards act of 1938 (52 Stat. 1060; 29 United States Code sections 201 through 219), as amended and interpreted, and shall exclude all employees who meet exemption requirements as defined in that act, as amended and interpreted.  No overtime or compensatory time may be granted to the following positions and persons:

(a)  All elected positions.

(b)  All positions that are appointed pursuant to section 38‑211.

(c)  All professional positions as defined by the director.

(d)  Persons whose primary duty is to manage the state agency or state agency subdivisions and:

(i)  Who use discretionary powers.

(ii)  Who direct the work of at least two other employees.

(iii)  Who have the authority to hire and fire.

26.  Compensatory time off for employees, except those employees in positions prescribed in paragraph 25 of this section.

27.  Approving overtime pay for positions eligible for compensatory time off pursuant to paragraph 26 of this section because their primary duty is management when either of the following criteria is met:

(a)  The practice is determined by the director to be a prevailing condition in the Arizona labor market and when pay differentials between subordinates and supervisors are reduced by overtime pay received by the nonexempt subordinates to the extent that it is no longer an incentive to remain in the supervisory position.

(b)  When temporary emergency conditions arise that make it more practical to pay overtime than to grant compensatory leave.

28.  Establishment of a plan for the impartial review of complaints. END_STATUTE

Sec. 13.  Title 41, chapter 4, article 6, Arizona Revised Statutes, is amended by adding section 41‑784, to read:

START_STATUTE41-784.  Nonconformity with federal regulations granting federal funds

Any provision of this article or article 5 of this chapter that conflicts or is inconsistent with federal rules, regulations or standards governing the grant of federal funds to any agency or department of the state is not applicable to such agency or department. The director is authorized to vary the terms of the personnel rules as applicable to such agencies and departments to comply with the conditions for federal grants. END_STATUTE

Sec. 14.  Section 41-785, Arizona Revised Statutes, as renumbered by this act, is amended to read:

START_STATUTE41-785.  Appeals to the state personnel board; notice of charges; hearings

A.  Except as provided by section 41‑1830.16, a covered Any employee who has completed the covered employee's original probationary period of service as provided by the personnel rules may appeal to the state personnel board the covered employee's seeking relief from dismissal from covered state service, suspension for more than eighty forty working hours or involuntary demotion resulting from disciplinary action.  The appeal shall be filed not later than ten working days after the effective date of such action.  The covered employee shall be furnished with specified charges in writing when the action is taken.  Such appeal shall be in writing and must state specific facts relating directly to the charges on which the appeal is based and shall be heard by the state personnel board within thirty days after its receipt.  The state personnel board shall provide the employing agency with a copy of the appeal not less than twenty days in advance of the hearing.

B.  Hearings on such appeals shall be open to the public, except in cases where the covered employee requests a confidential hearing, and shall be informal with technical rules of evidence not applying to the proceedings except the rule of privilege recognized by law.  Both the covered employee and the employing agency shall be notified of any hearing or meeting date not less than twenty days in advance of the hearing or not less than ten days in advance of a meeting and may select representatives of their choosing, present and cross‑examine witnesses and give evidence before the state personnel board.  The state personnel board may appoint a hearing officer to conduct the hearing and take evidence on behalf of the board and exercise the rights prescribed by section 12‑2212.  The state personnel board shall prepare an official record of the hearing, including all testimony recorded manually or by mechanical device, and exhibits.  Either party may request that the record be transcribed.  If a party requests that the record be transcribed, an entity, other than the state personnel board, selected by the requesting party shall transcribe the record at the cost of the requesting party.  If the disciplinary hearing would involve evidence the state is prevented by law from disclosing, then a confidential hearing upon the state's request shall be granted.

C.  The state personnel board:

1.  Shall determine whether the state agency has proven by a preponderance of the evidence the material facts on which the discipline was based.  On such a finding, the board shall affirm the decision of the state agency head, unless the disciplinary decision was arbitrary and capricious.

2.  May recommend modification of a disciplinary action if the agency has not proven by a preponderance of the evidence the material facts on which the discipline was based or if a disciplinary decision is found to be arbitrary and capricious.

3.  Shall reverse the decision of the state agency head if the board finds that cause did not exist for any discipline to be imposed and, in the case of dismissal or demotion, return the covered employee to the same position the employee held before the dismissal or demotion with or without back pay.

D.  On a finding that the agency has not proven by a preponderance of the evidence the material facts on which the discipline was based, the board shall identify the material facts that the board found were not supported by a preponderance of the evidence and may recommend a proposed disciplinary action in light of the facts proven.  On a finding that the disciplinary decision was arbitrary and capricious, the board shall include the board's reasons for the board's finding and may recommend a proposed disciplinary action in light of the facts proven.

C.  The state personnel board may reverse an agency's action on appeal only if the board finds the action to be arbitrary, capricious or otherwise contrary to law.

D.  The board may modify the disciplinary penalty chosen by an agency only if the board finds the penalty to be disproportionate to the proven offense in light of mitigating circumstances or made for reasons that are arbitrary, capricious or otherwise contrary to law.

E.  Within forty‑five days after the conclusion of the hearing, the state personnel board shall enter its decision or recommendation and shall at the same time send a copy of the decision or recommendation by certified mail to the employing agency and to the covered employee at the employee's address as given at the hearing or to a representative designated by the covered employee to receive a copy of the decision or recommendation.  The agency director or the director's designee shall accept, modify or reverse the board's decision or accept, modify or reject the board's recommendation within fourteen days of receipt of the findings or recommendation from the state personnel board.  The decision of the agency director or director's designee is final and binding.  The agency director shall send a copy of the agency's final determination to the covered employee pursuant to this section.

F.  Any party may appeal the decision of the state personnel board or the final decision of the agency pursuant to title 12, chapter 7, article 6 to the superior court in the covered employee's county of residence on one or more of the following grounds that the order was:

1.  Founded on or contained error of law that shall specifically include error of construction or application of any pertinent rules.

2.  Unsupported by any evidence as disclosed by the entire record.

3.  Materially affected by unlawful procedure.

4.  Based on a violation of any constitutional provision.

5.  Arbitrary or capricious.

G.  An appeal shall be available to the court of appeals from the order of the superior court pursuant to title 12, chapter 7, article 6 as in other civil cases.

H.  A covered An employee may represent himself or designate a representative, not necessarily an attorney, before any board hearing or any quasi-judicial hearing held pursuant to this section providing that no fee may be charged for any services rendered in connection with such hearing by any such designated representative who is not an attorney admitted to practice. END_STATUTE

Sec. 15.  Section 41-1233, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1233.  Prohibited acts; definition

A.  No person shall:

1.  Retain or employ another person to promote or oppose legislation for compensation contingent in whole or in part on the passage or defeat of any legislation, or the approval or veto of any legislation by the governor, and no person shall accept employment or render service for compensation on a contingent basis.

2.  Lobby the legislature for compensation within one year after the person ceases to be a member of the senate or house of representatives.

3.  In any manner improperly seek to influence the vote of any member of the legislature through communication with that member's employer.

4.  Lobby the public body that employed the person in a capacity having a significant procurement role as defined in section 41‑741 in the procurement of materials, services or construction within one year after the person ceases to be employed by the public body.

B.  For the purposes of this section, "significant procurement role"

1.    Means any role that includes any of the following duties:

(a)  Participating in the development of a procurement as defined in section 41‑2503.

(b)  Participating in the development of an evaluation tool.

(c)  Approving a procurement as defined in section 41‑2503 or an evaluation tool.

(d)  Soliciting quotes greater than ten thousand dollars for the provision of materials, services or construction.

(e)  Serving as a technical advisor or an evaluator who evaluates a procurement as defined in section 41‑2503.

(f)  Recommending or selecting a vendor that will provide materials, services or construction to this state.

(g)  Serving as a decision‑maker or designee on a protest or an appeal by a party regarding an agency procurement selection or decision.

2.  Does not include making decisions on developing specifications and the scope of work for a procurement as defined in section 41‑2503 if the decision is based on the application of commonly accepted industry standards or known published standards of the agency as applied to the project, services, goods or materials.  END_STATUTE

Sec. 16.  Section 41-1830.12, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1830.12.  Law enforcement merit system council; duties; authority; rules; business manager; definitions

A.  The law enforcement merit system council shall:

1.  Select a chairman and vice‑chairman.

2.  Hold meetings that are necessary to perform its duties on the call of the chairman.

3.  Adopt rules pursuant to recognized merit principles of public employment it deems necessary for establishing the following for department of public safety and Arizona peace officer standards and training board personnel:

(a)  A classification and compensation plan for all covered positions and for establishing standards and qualifications for all classified positions from a list of necessary employees that is prepared by the director of the employing agency.

(b)  A plan for fair and impartial selection, appointment, probation, promotion, retention and separation or removal from service by resignation, retirement, reduction in force or dismissal of all classified employees.

(c)  A performance appraisal system for evaluating the work performance of employees of the agencies.

(d)  Procedures for the conduct of hearings of employee grievances that are brought before the council relating to classification, compensation and the employee appraisal system.

(e)  Procedures for the conduct of hearings on appeals from an order of the director of the employing agency in connection with suspension, demotion, reduction in pay, loss of accrued leave time or dismissal of a classified employee.

(f)  For hours of employment, annual and sick leave and special leaves of absence, with or without pay or with reduced pay.

4.  Pursuant to recognized merit principles, hear and review appeals from any order of the director of the employing agency in connection with suspension, demotion, reduction in pay, loss of accrued leave time or dismissal of a classified employee.  The council's determination is subject to review by the director and final, except on appeal as provided in section 41‑1830.13.

B.  The council may meet with the state personnel board to discuss matters of mutual concern.

C.  The rules under subsection A, paragraph 3, subdivision (f) of this section shall provide for the transfer of accumulated annual leave from one employee to another employee in the same agency and for the transfer of accumulated annual leave from one employee to another employee of another agency, department, board or commission if the employees are members of the same family.  The transfers may occur if the employee to whom the leave is transferred has a seriously incapacitating and extended illness or injury or a member of the employee's immediate family has a seriously incapacitating and extended illness or injury and the employee has exhausted all available leave balances.  Transferred annual leave shall be increased or reduced proportionally by the difference in the salaries of the employees as determined by council rule.  For the purposes of this subsection, "family" means spouse, natural child, adopted child, foster child, stepchild, natural parent, stepparent, adoptive parent, grandparent, grandchild, brother, sister, sister‑in‑law, brother‑in‑law, son‑in‑law, daughter‑in‑law, mother‑in‑law or father‑in‑law.

D.  In hearing and reviewing an appeal from any order of the director of the employing agency, the council:

1.  Shall determine whether the employing agency has proven by a preponderance of the evidence that the employing agency had just cause to discipline the employee.

2.  May recommend modification of a disciplinary action if the director of the employing agency has not proven by a preponderance of the evidence that the employing agency had just cause to discipline the employee.

3.  Shall reverse the decision of the director of the employing agency if the council finds that just cause did not exist for any discipline to be imposed and, in the case of dismissal or demotion, return the employee to the same position the employee held before the dismissal or demotion with or without back pay.

E.  On a finding that the director of the employing agency has not proven just cause to discipline the employee by a preponderance of the evidence, the council may recommend a proposed disciplinary action in light of the facts proven. 

F.  Within forty‑five days after the conclusion of the hearing, the council shall enter its decision or recommendation and at the same time shall send a copy of the decision or recommendation by certified mail to the employing agency and to the employee at the employee's address as given at the hearing or to a representative designated by the employee to receive a copy of the decision or recommendation.

G.  D.  The council shall select and the director of the department of public safety shall appoint a business manager who is a certified peace officer and an employee of the department of public safety but who is not a member of the council.  The business manager shall perform and discharge all of the powers and duties that are vested in the council, except that adoption of rules, creation and adjustment of classifications and grades, compensation and hearing appeals for dismissal, demotion, reduction in pay, suspensions or other punitive action remain the duty of the council.  Any power or duty that the council may lawfully delegate to the business manager is conclusively presumed to have been delegated to the business manager unless it is shown that the council by an affirmative vote recorded in its minutes has specifically reserved the power or duty to itself.  At the request of the council, the business manager may make inquiries regarding or investigate infractions of council rules within the department of public safety.  The business manager shall report the result of the inquiry or investigation to the council for appropriate action.  The business manager may delegate the business manager's powers and duties to the business manager's subordinates unless by council rule or express provision of law the business manager is specifically required to act personally.

H.  E.  For the purposes of this section and section 41‑1830.13:

1.  "Director of the employing agency" means the director of the department of public safety with respect to employees of the department and the executive director of the Arizona peace officer standards and training board with respect to employees of the board.

2.  "Just cause" has the same meaning prescribed in title 38, chapter 8, article 1 section 38‑1101. END_STATUTE

Sec. 17.  Section 41-1830.13, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1830.13.  Review of council decision; appeal; reinstatement

A.  Within fourteen days of receipt of the finding or recommendation by the council pursuant to section 41‑1830.12, the director of the employing agency shall accept, modify or reverse the council's decision or accept, modify or reject the council's recommendation.  The director shall accept the council's recommendation unless the recommendation is arbitrary or without reasonable justification.  If the director does not accept the council's recommendation, the director shall state the reason or reasons for rejecting the recommendation.  The decision of the director of the employing agency is final and binding.  The director of the employing agency shall send a copy of the agency's final determination to the employee pursuant to section 41‑1830.12.

B.  A.  Except as provided in section 41‑1092.08, subsection H, a classified employee who is suspended, is demoted, has pay reduced, loses accrued leave time or is dismissed pursuant to this article, after a fair hearing and review before the law enforcement merit system council and review confirmation of the suspension, demotion, reduction in pay, loss of accrued leave time or dismissal by the director of the employing agency department of public safety, may appeal the determination of the council and the final determination of the director of the employing agency pursuant to title 12, chapter 7, article 6.

C.  B.  In addition to the trial court's powers as prescribed in section 12‑911, if the court overrules the determination of the council or the director of the employing agency, the employee shall be reinstated in the employee's position and the employee shall receive full compensation for any salary withheld pending the determination by the council, the director of the employing agency and court. END_STATUTE

Sec. 18.  Title 41, chapter 12, article 10, Arizona Revised Statutes, is amended by adding section 41-1830.14, to read:

START_STATUTE41-1830.14.  Status of persons employed before merit system institution

All employees of the department shall continue in their respective positions without examination, until removed from the positions under the provisions of the merit system established pursuant to this article. END_STATUTE

Sec. 19.  Section 41-1830.15, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1830.15.  Causes for dismissal or discipline; definitions

A.  The director of the department of public safety may dismiss or discipline any classified employee based on any of the following causes:

1.  Fraud or misrepresentation in securing employment.

2.  Incompetency.

3.  Inefficiency.

4.  Inexcusable neglect of duty or unauthorized absence.

5.  Insubordination.

6.  Dishonesty.

7.  Physical or mental disability subject to the provisions of the Americans with disabilities act of 1990 (42 United States Code sections 12101 through 12213).

8.  Unauthorized drinking on duty or drunkenness on duty.

9.  Being impaired by alcohol or drugs, as provided in title 13, chapter 34, while on duty.

10.  Commission of any crime classified as a felony.

11.  Discourteous treatment of the public or other employees.

12.  Commission of any crime involving moral turpitude.

13.  Improper political activity as proscribed in section 41‑752 41‑772.

14.  Misuse or unauthorized use of state property.

15.  Addiction to the illegal use of a narcotic or dangerous drug.

16.  Any other failure of good behavior or acts either during or outside of duty hours that are incompatible with or inimical to the interest of the department of public safety.

B.  For the purposes of this section:

1.  "Incompetency" means the lack of ability or judgment, legal qualifications or fitness to discharge required duties.

2.  "Inefficiency" means the failure to produce as required for reasons other than incompetency. END_STATUTE

Sec. 20.  Repeal

Section 41-1830.16, Arizona Revised Statutes, is repealed.

Sec. 21.  Section 41-2517, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2517.  Procurement officers and procurement employees; violation; classification; exception; definition

A.  It is unlawful for a procurement officer or an employee having a significant procurement role to accept any position or have employment discussions with a person or firm lobbying or potentially responding to the solicitation beginning on signature of the first nondisclosure agreement pertaining to a particular solicitation or at the time of request for a sole source procurement or competition impracticable procurement and ending at the time of contract award.  It is unlawful for a procurement officer or an employee having a significant procurement role to accept any position or have employment discussions with the successful offeror or offerors and their lobbyists beginning on signature of the first nondisclosure agreement pertaining to a particular solicitation or at the time of request for a sole source procurement or competition impracticable procurement and ending one year after the purchased materials are delivered or the purchase of services or construction begins, if the procurement officer or employee had a significant procurement role in the particular procurement.

B.  It is unlawful for a procurement officer or an employee having a significant procurement role to solicit an employment opportunity, regardless of who would receive such an opportunity, from any person or firm lobbying or potentially responding to a solicitation for the procurement of materials, services or construction beginning on signature of the first nondisclosure agreement pertaining to a particular solicitation or at the time of request for a sole source procurement or competition impracticable procurement and ending at the time of contract award.  It is unlawful for a procurement officer or an employee having a significant procurement role to solicit an employment opportunity, regardless of who would receive such an opportunity, from the successful offeror or offerors and their lobbyists beginning on signature of the first nondisclosure agreement pertaining to a particular solicitation or at the time of request for a sole source procurement or competition impracticable procurement and ending one year after the purchased materials are delivered or the purchase of services or construction begins, if the procurement officer or employee had a significant role in the particular procurement.

C.  It is unlawful for a person or firm lobbying or potentially responding to a solicitation for the procurement of materials, services or construction to offer employment to a procurement officer, a procurement employee or an employee having a significant procurement role beginning on signature of the first nondisclosure agreement pertaining to a particular solicitation or at the time of request for a sole source procurement or competition impracticable procurement and ending at the time of contract award.  It is unlawful for the successful offeror or offerors and their lobbyists to offer employment to a procurement officer, a procurement employee or an employee having a significant procurement role beginning on signature of the first nondisclosure agreement pertaining to a particular solicitation or at the time of request for a sole source procurement or competition impracticable procurement and ending one year after the purchased materials are delivered or the purchase of services or construction begins, if the procurement officer or employee had a significant role in the particular procurement.

D.  The director of the department of administration may waive any or all of the waiting period required pursuant to subsections A, B and C of this section in excess of twenty-four months for a procurement officer or an employee with a significant procurement role if the period of time that follows the signature of the nondisclosure agreement exceeds twenty‑four months.  A procurement officer or an employee seeking a waiver shall make a written request to the officer's or employee's state governmental unit director, and the director of the state governmental unit shall forward the request with a written recommendation to the director of the department of administration.  The director of the department of administration shall provide a written decision and justification within fifteen business days after the receipt of the complete request.  The director of the department of administration may not approve waiver requests for matters still in evaluation or within six months following the contract award.  If the requesting party is the director or a deputy director of a state governmental unit, the request for a waiver and all written materials, including a director recommendation, must be forwarded to the governor for a final decision, except that the director may not make any recommendation or determination on the director's own request.

E.  In response to a written request from an employee seeking clarification on whether the employee has played a significant role in a procurement, the director shall issue a determination in writing within fifteen days after receiving the request.  The director may make a determination in writing that this section and section 41‑753, subsection D do does not apply if a particular solicitation, sole source procurement or competition impracticable procurement has been canceled or is associated with the privatization of existing state services that would result in the elimination of the position in state service of an employee with a significant procurement role.  The director may delegate the authority to make determinations pursuant to this subsection to a director of a state agency.  An agency director or agency deputy director may request a determination from the office of the governor regarding whether the agency director or agency deputy director played a significant role in a particular procurement for the purposes of the one-year employment restriction, and the office of the governor shall make a determination within thirty days after the receipt of the written request.

F.  An employee of any agency as defined in section 41‑1001, including the office of the governor, who has a significant role in the procurement of materials, services or construction shall not accept an offer of employment from or have employment discussions with any person or entity lobbying for or potentially responding to a solicitation during a period beginning on signature of the first nondisclosure agreement pertaining to a particular solicitation or at the time of request for a sole source procurement or competition impracticable procurement and ending at the time of the contract award.  An employee of any agency as defined in section 41‑1001, including the office of the governor, who has a significant role in the procurement of materials, services or construction shall not accept an offer of employment from or have employment discussions with the successful offeror or offerors and their lobbyists during a period beginning on signature of the first nondisclosure agreement pertaining to a particular solicitation or at the time of request for a sole source procurement or competition impracticable procurement and ending one year after the purchased materials are delivered or the purchase of services or construction begins.  The director of the department of administration may waive any or all of the waiting period in excess of twenty‑four months for a procurement officer or an employee with a significant procurement role if the period of time that follows the signature of the nondisclosure agreement exceeds twenty‑four months.  A procurement officer or an employee seeking a waiver shall make a written request to the officer's or employee's state agency director, and the director of the state agency shall forward the request with a written recommendation to the director of the department of administration.  The director of the department of administration shall provide a written decision and justification within fifteen business days after the receipt of the complete request.  The director of the department of administration may not approve waiver requests for matters still in evaluation or within six months following the contract award.  If the requesting party is the director or a deputy director of a state agency, the request for a waiver and all written materials, including a director recommendation, must be forwarded to the governor for a final decision, except that the director may not make any recommendation or determination on the director's own request.  An agency as defined in section 41‑1001, including the office of the governor, shall inform its employees when the first nondisclosure agreement is signed on a particular solicitation, and the agency shall notify the state procurement administrator who shall post information regarding the date of the first nondisclosure agreement pertaining to a particular procurement activity on the department of administration's website.  This subsection does not apply to a procurement officer or an employee who in good faith relies on a determination issued by the director pursuant to subsection E of this section that the procurement officer or employee has not had a significant procurement role.

F.  G.  It is unlawful for a procurement officer or an employee who was previously employed by a person or firm responding to a solicitation to serve in a significant procurement role for a period of one year following the person's previous employment.

G.  H.  Beginning October 1, 2014, if an agency uses a qualified vendor list of persons or entities that are eligible to be selected to design, develop, implement or construct any form of project associated with the list, any procurement officer who was assigned to work evaluating or approving the vendor list or any employee having a significant procurement role in developing the vendor list shall not accept an offer of employment from or have employment discussions with a vendor on the list within one year after the initial publication of the list or accept an offer of employment from or have employment discussions with a newly added vendor within one year after the vendor is added to the original list.  If a vendor from an approved list of qualified vendors is awarded a contract that is associated with the list, a procurement officer involved in selecting the vendor or an employee having a significant procurement role in selecting the vendor shall not accept an offer of employment from or have employment discussions with that vendor within one year after that vendor is awarded the contract.

H.  I.  On signature of a nondisclosure agreement pertaining to a particular solicitation, or at the time of a request for a sole source or competition impracticable procurement, a procurement officer or an employee having a significant role in the procurement shall provide written disclosure of any financial interest the officer or employee, or the spouse of the officer or employee, may hold.

I.  J.  A person who knowingly violates this section is guilty of a class 2 misdemeanor.  On conviction the person is ineligible for appointment to or employment in a position in the state personnel system for a period of five years and, if the person is an employee of this state at the time of conviction, is subject to suspension for not less than ninety days or dismissal.

J.  K.  This section does not apply to a procurement officer or employee who in good faith relies on a determination issued by the director pursuant to subsection E of this section that the procurement officer or employee has not had a significant procurement role. END_STATUTE

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