Chapter 0249 - 562R - S Ver of HB2034

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

Section 1. Section 41-742, Arizona Revised Statutes, is amended to read:

START_STATUTE41-742. State personnel system; covered and uncovered employees; application; exemptions

A. Beginning September 29, 2012, unless otherwise prescribed in this article:

1. All new hires are at will uncovered employees.

2. Any employee who meets any of the following criteria is an at will uncovered employee:

(a) Is employed as an attorney in a position assigned to the attorney salary schedule.

(b) Is a supervisor.

(c) Is at a pay grade of nineteen or above or, if a successor compensation system is established, in an equivalent pay range as determined by the director.

(d) Is in a position assigned to the information technology salary schedule, in a position assigned to an information technology classification or, if a successor compensation system is established, in an equivalent pay range as determined by the director.

3. Any covered employee who voluntarily accepts a change in assignment to a position in the uncovered service, regardless of whether the voluntary change in assignment is a promotion, demotion or lateral transfer, is an at will uncovered employee on the start date of the voluntary change in assignment.

4. A covered employee may voluntarily elect to become an at will uncovered employee without a change in assignment on approval by the state agency head and the director. If approved, the change from covered to uncovered status is immediate.

5. Once a covered employee becomes an at will uncovered employee, the change is irrevocable.

B. Except as provided in subsection F of this section, the purpose of this article is for all state agencies in the state personnel system to treat employees pursuant to the following principles:

1. Recruiting, selecting and advancing employees on the basis of the employee's relative ability, knowledge and skills after open competition.

2. Providing compensation based on merit, performance, job value and competitiveness within applicable labor markets.

3. Training employees if the training will result in better organizational and individual performance.

4. Retaining employees on the basis of the adequacy of their performance, correct correcting inadequate performance where possible and appropriate and separate separating employees whose performance is inadequate.

5. Managing applicants and employees in all aspects of personnel administration without regard to political affiliation, race, color, national origin, sex, age, disability or religious creed and with proper regard for their privacy and constitutional rights as citizens.

6. Ensuring that employees are protected against coercion for partisan political purposes and are prohibited from using their official authority for the purpose of interfering with or affecting the result of an election or nomination for office.

C. The director shall establish and administer the state personnel system, including:

1. A classification system and job classes and associated knowledge, skills and abilities for those classes.

2. A centralized job announcement system to streamline statewide recruiting for applicants.

3. A centralized employment system to be used by all successful applicants, including a common application form to be used by all state agencies.

4. A compensation system, including assigning pay ranges for all job classes and special pay plans for certain classes or groups of employees considering such factors as occupational patterns, economic conditions and pay plans common to government, business and industry.

5. A statewide training program.

6. A statewide performance management system.

7. An audit function to review state agencies' processes and compliance with applicable statutes, personnel rules and policies.

8. An integrated system to process personnel, payroll and benefits transactions and serve as the system of record for state employees.

D. This article and articles 5 and 6 of this chapter do not apply to:

1. An elected state officer. An elected state officer means only elected officials and does not include the employees of elected state officers unless expressly provided.

2. Members of boards and commissions who are appointed by the legislature or the governor, board members appointed pursuant to section 41-619.52 unless otherwise prescribed by law, employees of the Arizona legislative council, employees appointed or employed by the legislature, any legislative agency or either house of the legislature and employees of the supreme court and the court of appeals.

3. The Arizona board of regents, officers or employees of state universities and personnel of the Arizona state schools for the deaf and the blind.

4. Patients or inmates employed in state institutions.

5. Officers and enlisted personnel of the national guard of Arizona and employees of the department of emergency and military affairs who occupy Arizona national guard positions identified as mobilization assets.

6. The cotton research and protection council.

7. The department of public safety.

8. The Arizona peace officer standards and training board.

E. Unless otherwise prescribed in this article, subsection A, paragraphs 1, 2 and 3 of this section do not apply to either an initial appointment to or changes in assignment to:

1. An employee of any state agency who is a full authority peace officer as certified by the Arizona peace officer standards and training board.

2. An employee of the state department of corrections who is employed as a correctional captain, correctional lieutenant, correctional sergeant, correctional corporal, correctional officer I, correctional officer II, correctional officer III, correctional officer IV, community corrections unit supervisor, community corrections group supervisor, community corrections officer or, if a successor classification system is established, in an equivalent job class as determined by the director.

F. Subsection B, paragraph 1 of this section, relating to open competition and subsection B, paragraph 4 of this section and subsection B, paragraph 5 of this section, relating to political affiliation, do not apply to:

1. Employees of the governor's office.

2. Employees of offices of elected officials who either:

(a) Report directly to the elected official.

(b) Head a primary component or report directly to the head of a primary component of the office of the elected official.

3. The state agency head and each deputy director, or equivalent, of each state agency and employees of the state agency who report directly to either the state agency head or deputy director.

4. Each assistant director, or equivalent, of each state agency and employees in the state agency who report directly to an assistant director.

5. Attorneys in the office of the attorney general.

6. Employees in investment related investment-related positions in the state retirement system or plans established by title 38, chapter 5, article 2, 3, 4 or 6.

G. This article and articles 5 and 6 of this chapter do not confer any rights in excess of, or in addition to, those previously authorized to any state employee.

H. This article does not create or confer any contractual employment right for any employee and, unless otherwise provided by law, state agencies are prohibited from executing employment contracts with any state employee.

I. Any communications, including policy manuals, employee handbooks, job offers and performance appraisals and other communications as determined by the director, whether in writing or oral, that conflict with article 1, 5 or 6 of this chapter or this article are void and do not alter or supersede article 1, 5 or 6 of this chapter or this article. END_STATUTE

Sec. 2. Section 41-745, Arizona Revised Statutes, is amended to read:

START_STATUTE41-745. Covered and uncovered service

A. Except as provided in subsection C of this section or section 41-742, subsection A, an employee under covered service is entitled to continue to be a covered employee as long as the employee remains in covered status without a break in service or as otherwise provided by law. Probationary status employees are required to complete their probationary period before obtaining rights of appeal. On successfully completing a probationary period, an employee in covered service is entitled to have appeal rights as provided in article 6 of this chapter or section 41-1830.16, as applicable.

B. Except as provided in subsection subsections C and D of this section, uncovered service consists of all employees in the state agencies not included in the covered service. Employees in uncovered service are employees at will and are not entitled to appeal rights.

C. A position that requires certification as a full authority peace officer by the Arizona peace officer standards and training board or a position designated as a correctional officer I, correctional officer II, correctional officer III or community corrections officer shall be in the covered and uncovered service as follows:

1. If, on September 29, 2012, the position is filled with an uncovered employee, the position shall remain in the uncovered service for all future appointments to that position.

2. If, on September 29, 2012, the position is filled with a covered employee who was in the state service and the employee does not voluntarily elect to become an at will uncovered employee, the position shall remain in the covered service for the current incumbent and for all future appointments to that position.

3. If, on or after September 29, 2012, an employee in the covered service voluntarily elects to become an at will uncovered employee, the position shall remain in the uncovered service for all future appointments to that position.

D. beginning on the effective date of this amendment to this section, A position designated as a correctional captain, correctional lieutenant, correctional sergeant, correctional corporal, correctional officer I, correctional officer II, correctional officer III, correctional officer IV, community corrections unit supervisor, community corrections group supervisor or community corrections officer shall be in the covered service. END_STATUTE

Sec. 3. Section 41-771, Arizona Revised Statutes, is amended to read:

START_STATUTE41-771. Powers and duties of director relating to employees in covered service

The director shall adopt rules and procedures that are applicable only to employees in covered service. The rules and procedures shall provide for:

1. The continuation of a probationary period for probationary employees.

2. A minimum period of original probationary service following the initial appointment of a full authority peace officer as certified by the Arizona peace officers officer standards and training board or the initial appointment of a correctional captain, correctional lieutenant, correctional sergeant, correctional corporal, correctional officer I, correctional officer II, correctional officer III, correctional officer IV, community corrections unit supervisor, community corrections group supervisor or community corrections officer. During an original probationary period, the probationary employee shall perform the actual duties of the position and may be discharged without cause. The director shall establish a period of promotional probation service.

3. Disciplinary action to be taken against an employee only if cause exists.

4. Reduction in force by reason of lack of monies or work, abolition of a position or a material change in duties or organization as provided in section 41-772.

5. The continuation of the same annual leave ACCRUAL rate and the maximum number of annual leave hours that may carry over into a new calendar year as an uncovered employee for an employee of the state department of corrections who is employed on the effective date of this amendment to this section as a correctional captain, correctional lieutenant, correctional sergeant, correctional corporal, correctional officer IV, community corrections unit supervisor or community corrections group supervisor. END_STATUTE