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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
REVISED
pay parity; law enforcement; benchmarks
Purpose
Requires the Department of Public Safety (DPS) to establish benchmarks based on the average compensation of law enforcement personnel compared to the compensation of personnel from peer law enforcement agencies, includes the benchmarks in the annual report on state personnel and the state personnel system and modifies the Parity Compensation Fund (Fund).
Background
By September 1 of each year, the Director of the Arizona
Department of Administration (ADOA) must present to the Governor and the
Legislature a report on state personnel and the operation of the state personnel system that includes: 1) information
concerning all state employees, including executive, legislative and judicial
branch agencies; 2) information concerning turnover, including the number of
employees separating from state employment and the reasons for separation; 3)
information concerning the compensation of state employees during the preceding
year and the coming year and the compensation of other public employees and
private employees; 4) an advisory recommendation on state employees' salaries;
5) the overtime pay of all state agencies; and
6) other information as determined by the Director (A.R.S.
§ 41-751).
The Fund consists of monies appropriated by the Legislature and 1.51 percent of the portion of vehicle license tax revenues that otherwise would be deposited in the State Highway Fund. DPS administers the Fund and, considering state revenues and employee pay adjustments, must spend Fund monies for law enforcement personnel salary and benefit adjustments. Fund monies do not revert to the state General Fund (state GF), are exempt from lapsing and are subject to legislative appropriation (A.R.S. § 41-1720).
The Joint Legislative Budget Committee fiscal note indicates that H.B. 2386 would have a minimal impact on the state GF because DPS is not required to use the benchmarks when determining compensation and the benchmarks only apply to Fund expenditures when the majority of DPS salaries are paid from the state GF (JLBC Fiscal Note).
Provisions
1. Requires DPS, in determining the amount of expenditures from the Fund, to annually establish and consider benchmarks based on the average total compensation for each comparable law enforcement personnel rank of the DPS's three largest county or municipal peer law enforcement agencies in Arizona.
2. Specifies that DPS must spend Fund monies for salaries and benefits for law enforcement personnel that DPS determines will enhance the ability of DPS to successfully recruit and retain qualified law enforcement personnel.
3. Removes the requirement that DPS consider state revenues and employee pay adjustments when spending Fund monies as prescribed.
4. Includes, in the ADOA Director's annual report on state personnel, the most recent benchmarks established by DPS in the reported information concerning the compensation of state employees and the compensation of other public and private employees.
5. Removes the stipulation that Fund monies:
a) do not revert to the state GF; and
b) are subject to legislative appropriation.
6. Specifies that Fund monies are continuously appropriated.
7. Defines total compensation as including the base salary, educational incentive pay, physical performance pay, longevity pay and retirement contributions made by an employer on behalf of an employee.
8. Becomes effective on the general effective date.
Revisions
· Updates the fiscal impact statement.
House Action
PSLE 2/3/25 DP 13-0-2-0
3rd Read 2/13/25 53-0-7
Prepared by Senate Research
March 12, 2025
KJA/slp