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S1309.......................................by COMMERCE AND HUMAN RESOURCES STATE EMPLOYEE COMPENSATION PLAN - Repeals, amends and adds to existing law to increase the maximum award that may be granted to certain nonclassified officers and employees for meritorious service and for suggestions resulting in taxpayer savings; to provide exceptions to the maximum award; to require reporting of all awards granted in the preceding fiscal year and reporting of changes made pursuant to an employee's suggestion and resulting savings; to provide for recruitment and retention awards and to require reporting of such awards; to provide for nonperformance related pay to certain nonclassified officers and employees and to require reporting; to provide criteria for reimbursement of moving expenses and to require reporting; to provide that the State Controller's Office is responsible for the establishment and maintenance of specific pay codes; to clarify compensatory time for classified and nonclassified employees who are designated as executive; to provide an exception to the limitation on use of appropriations made for expenses other than personnel costs; to provide for limitations on the amount of legislative appropriations for personnel costs which can be transferred to other object codes; to expand the definition of "holiday" to distinguish nonexecutive employees from employees classified as executive exempt; to clarify the rulemaking authority of the Division of Human Resources regarding rules for disciplinary dismissal, demotion, suspension or other discipline for cause and for shift differential pay; to provide a state employee compensation philosophy; to establish the Idaho compensation plan; to provide for specified annual surveys, reports and recommendations; to provide other pay delivery options; to provide state overtime policy; to clarify provisions relating to cash compensation and compensatory time; to clarify computation of vacation time for classified officers and employees; and to redefine "severance pay." 01/25 Senate intro - 1st rdg - to printing 01/26 Rpt prt - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE SENATE SENATE BILL NO. 1309 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO THE STATE PERSONNEL SYSTEM AND NONCLASSIFIED STATE OFFICERS AND 3 EMPLOYEES; AMENDING SECTION 33-2101A, IDAHO CODE, TO DELETE A CODE REFER- 4 ENCE; AMENDING SECTION 33-2109A, IDAHO CODE, TO PROVIDE CORRECT CODE REF- 5 ERENCES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 59-1603, IDAHO 6 CODE, TO DELETE A CODE REFERENCE, TO PROVIDE CORRECT TERMINOLOGY, TO 7 INCREASE THE MAXIMUM AWARD THAT MAY BE GRANTED TO CERTAIN NONCLASSIFIED 8 OFFICERS AND EMPLOYEES FOR MERITORIOUS SERVICE AND FOR SUGGESTIONS RESULT- 9 ING IN TAXPAYER SAVINGS, TO PROVIDE EXCEPTIONS TO THE MAXIMUM AWARD UNDER 10 EXTRAORDINARY CIRCUMSTANCES, TO REQUIRE REPORTING OF ALL AWARDS GRANTED IN 11 THE PRECEDING FISCAL YEAR AND REPORTING OF CHANGES MADE PURSUANT TO AN 12 EMPLOYEE'S SUGGESTION AND RESULTING SAVINGS, TO PROVIDE FOR RECRUITMENT 13 AND RETENTION AWARDS TO CERTAIN NONCLASSIFIED OFFICERS AND EMPLOYEES AND 14 TO REQUIRE REPORTING OF SUCH AWARDS GRANTED IN THE PRECEDING FISCAL YEAR, 15 TO PROVIDE FOR NONPERFORMANCE RELATED PAY TO CERTAIN NONCLASSIFIED OFFI- 16 CERS AND EMPLOYEES AND TO REQUIRE REPORTING OF SUCH AWARDS GRANTED IN THE 17 PRECEDING FISCAL YEAR, TO PROVIDE FOR NONPERFORMANCE RELATED PAY TO SPECI- 18 FIED EMPLOYEES WHICH CANNOT EXCEED FIVE PERCENT OF THE EMPLOYEE'S BASE PAY 19 AND TO REQUIRE REPORTING OF SUCH AWARDS GRANTED IN THE PRECEDING FISCAL 20 YEAR, TO PROVIDE CRITERIA FOR REIMBURSEMENT OF MOVING EXPENSES AND TO 21 REQUIRE REPORTING OF ALL MOVING REIMBURSEMENTS GRANTED IN THE PRECEDING 22 FISCAL YEAR AND TO PROVIDE THAT THE STATE CONTROLLER'S OFFICE IS RESPONSI- 23 BLE FOR THE ESTABLISHMENT AND MAINTENANCE OF SPECIFIC PAY CODES; AMENDING 24 SECTION 59-1606, IDAHO CODE, TO DELETE AN INCORRECT CODE REFERENCE; AMEND- 25 ING SECTION 59-1607, IDAHO CODE, TO PROVIDE PROPER TERMINOLOGY AND TO 26 CLARIFY COMPENSATORY TIME FOR CLASSIFIED AND NONCLASSIFIED EMPLOYEES WHO 27 ARE DESIGNATED AS EXECUTIVE; AMENDING SECTION 67-3511, IDAHO CODE, TO PRO- 28 VIDE AN EXCEPTION TO THE LIMITATION ON USE OF APPROPRIATIONS MADE FOR 29 EXPENSES OTHER THAN PERSONNEL COSTS AND TO PROVIDE FOR LIMITATIONS ON THE 30 AMOUNT OF LEGISLATIVE APPROPRIATIONS FOR PERSONNEL COSTS WHICH CAN BE 31 TRANSFERRED TO OTHER OBJECT CODES AND TO MAKE TECHNICAL CORRECTIONS; 32 AMENDING SECTION 67-5302, IDAHO CODE, TO PROVIDE CORRECT REFERENCES, TO 33 REFORMAT THE SECTION AND TO EXPAND THE DEFINITION OF "HOLIDAY" TO DISTIN- 34 GUISH NONEXECUTIVE EMPLOYEES FROM EMPLOYEES CLASSIFIED AS EXECUTIVE 35 EXEMPT; AMENDING SECTION 67-5309, IDAHO CODE, TO CLARIFY RULEMAKING 36 AUTHORITY OF THE DIVISION OF HUMAN RESOURCES REGARDING RULES FOR DISCI- 37 PLINARY DISMISSAL, DEMOTION, SUSPENSION OR OTHER DISCIPLINE FOR CAUSE AND 38 FOR SHIFT DIFFERENTIAL PAY AND TO SPECIFY ADDITIONAL RULEMAKING AUTHORITY; 39 REPEALING SECTION 67-5309A, IDAHO CODE; AMENDING CHAPTER 53, TITLE 67, 40 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-5309A, IDAHO CODE, TO PRO- 41 VIDE A STATE EMPLOYEE COMPENSATION PHILOSOPHY; REPEALING SECTION 67-5309B, 42 IDAHO CODE; AMENDING CHAPTER 53, TITLE 67, IDAHO CODE, BY THE ADDITION OF 43 A NEW SECTION 67-5309B, IDAHO CODE, TO ESTABLISH THE IDAHO COMPENSATION 44 PLAN; REPEALING SECTION 67-5309C, IDAHO CODE; AMENDING CHAPTER 53, TITLE 45 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-5309C, IDAHO CODE, TO 46 PROVIDE FOR SPECIFIED ANNUAL SURVEYS, REPORTS AND RECOMMENDATIONS; AMEND- 2 1 ING CHAPTER 53, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 2 67-5309D, IDAHO CODE, TO PROVIDE OTHER PAY DELIVERY OPTIONS; REPEALING 3 SECTION 67-5326, IDAHO CODE; AMENDING SECTIONS 67-5328, 67-5329, 67-5330 4 AND 67-5331, IDAHO CODE, TO PROVIDE STATE OVERTIME POLICY, TO CLARIFY PRO- 5 VISIONS RELATING TO CASH COMPENSATION AND COMPENSATORY TIME, TO REFORMAT 6 SECTION 67-5328, IDAHO CODE, TO REDESIGNATE SECTIONS 67-5329, 67-5330 AND 7 67-5331, IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY AND TO PROVIDE CORRECT 8 CODE REFERENCES; AMENDING SECTIONS 67-5333 AND 67-5339, IDAHO CODE, TO 9 REFORMAT SECTION 67-5333, IDAHO CODE, TO REDESIGNATE SECTION 67-5339, 10 IDAHO CODE, AND TO PROVIDE CORRECT CODE REFERENCES; AMENDING SECTIONS 11 67-5334, 67-5335 AND 67-5337, IDAHO CODE, TO CLARIFY COMPUTATION OF VACA- 12 TION TIME FOR CLASSIFIED OFFICERS AND EMPLOYEES ACCORDING TO THEIR DEFINI- 13 TIONS UNDER THE FEDERAL FAIR LABOR STANDARDS ACT, TO MAKE TECHNICAL COR- 14 RECTIONS, TO REFORMAT SECTION 67-5334, IDAHO CODE, AND TO REDESIGNATE SEC- 15 TIONS 67-5335 AND 67-5337, IDAHO CODE; AMENDING CHAPTER 53, TITLE 67, 16 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-5337, IDAHO CODE, TO PRO- 17 VIDE FOR MOVING EXPENSE REIMBURSEMENT; AMENDING SECTION 67-5342, IDAHO 18 CODE, TO REDEFINE "SEVERANCE PAY"; AND DECLARING AN EMERGENCY. 19 Be It Enacted by the Legislature of the State of Idaho: 20 SECTION 1. That Section 33-2101A, Idaho Code, be, and the same is hereby 21 amended to read as follows: 22 33-2101A. JUNIOR COLLEGE SHALL MEAN COMMUNITY COLLEGE. Notwithstanding 23 any other provision of law, in sections 21-805, 21-806, 21-809, 23-404, 24 31-808, 33-101, 33-107, 33-107B, 33-601, 33-1252, 33-2101, 33-2102, 33-2103, 25 33-2104, 33-2105, 33-2106, 33-2107, 33-2107A, 33-2107B, 33-2107C, 33-2108, 26 33-2109A, 33-2110, 33-2110A, 33-2110B, 33-2111, 33-2112, 33-2113, 33-2114, 27 33-2115, 33-2116, 33-2117, 33-2118, 33-2119, 33-2121, 33-2122, 33-2123, 28 33-2124, 33-2125, 33-2126, 33-2130, 33-2135, 33-2137, 33-2138, 33-2139, 29 33-2141, 33-2142, 33-2143, 33-2144, 33-2211, 33-3716, 33-3717, 33-4001, 30 33-4003, 33-4004, 33-4006, 33-4201, 33-4306, 33-4315, 46-314, 50-1721, 31 57-1105A, 59-1324, 59-1371, 59-1374, 67-2320, 67-2322, 67-5309Cand 67-5332, 32 Idaho Code, the term "junior college" shall mean and shall be denoted as 33 "community college." 34 SECTION 2. That Section 33-2109A, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 33-2109A. USE OF UNUSED SICK LEAVE. Upon separation from employment with 37 thejuniorcommunity college district by retirement, in accordance with chap- 38 ter 13, title 59, Idaho Code, or with chapter 1, title 33, Idaho Code, an 39 employee shall be accorded credit for unused sick leave as provided in section 40 67-53393, Idaho Code. Eachjuniorcommunity college district shall contribute 41 to the sick leave account for the purposes of this section, as provided in 42 subsection (32)(c) of section 67-53393, Idaho Code. 43 SECTION 3. That Section 59-1603, Idaho Code, be, and the same is hereby 44 amended to read as follows: 45 59-1603. CONFORMITY WITH CLASSIFIED POSITIONS. (1) To the extent possi- 46 ble, each nonclassified position in the executive department will be paid a 47 salary or wage comparable to classified positions with similar duties, respon- 48 sibilities, training, experience and other qualifications. Temporary employees 3 1 and agricultural inspectors referred to in subsections (n) and (p) of section 2 67-5303, Idaho Code, shall not be entitled to sick leave accruals provided in 3 section 59-1605, Idaho Code, vacation leave provided in section 59-1606, Idaho 4 Code, nor holiday pay defined in subsection (15) of section 67-5302, Idaho 5 Code, unless contributions are being made to the public employee retirement 6 system in accordance with chapter 13, title 59, Idaho Code, and rules promul- 7 gated by the retirement board. Vacation and sick leave accruals, but not holi- 8 day pay, shall be awarded retroactively, if necessary, to the date such 9 employees become eligible for retirement system membership. 10 (2) To the extent possible, each nonclassified position in the legisla- 11 tive department will be paid a salary or wage comparable to classified posi- 12 tions with similar duties, responsibilities, training, experience and other 13 qualifications. 14 (3) The supreme court shall determine the schedules of salary and compen- 15 sation for all officers and employees of the judicial department which are not 16 otherwise fixed by law. To the extent possible, the supreme court shall adopt 17 schedules which are compatible with the state's accounting system. The judi- 18 cial department may also maintain personnel records and files under such sys- 19 tem as is ordered by the supreme court. 20 (4) The state board of education shall determine the schedules of salary 21 and compensation, and prescribe policies for overtime and compensatory time 22 off from duty, for all officers and employees of the state board of education 23 who are not subject to the provisions of chapter 53, title 67, Idaho Code, and 24 which are not otherwise fixed by law. To the extent possible, the state board 25 of education shall adopt schedules and policies which are compatible with the 26 state's accounting system. The state board of education may also maintain per- 27 sonnel records and files under a system of its own, if approved by the state 28 controller. 29 (5) Members of the legislature, the lieutenant governor, other officers 30 whose salaries are fixed by law, and members of part-time boards, commissions 31 and committees shall be paid according to law. 32 (6) Any schedule of salary and compensation, if not the schedule pre-33scribed by section 67-5309C(a), Idaho Code,must be approved by the appointing 34 authority and be communicated to the state controller in writing at least 35 thirty (30) days in advance of the effective date of the schedule. 36 (7) In addition to salary increases provided by any compensation schedule 37 adopted pursuant to paragraph (6) of this section, nonclassified officers and 38 employees, except those who are elected officials or whose salaries are fixed 39 by law, may be granteda lump sum bonusan award not to exceedonefive thou- 40 sand dollars ($15,000) in any given fiscal year based upon an affirmative 41 certification of meritorious service. Exceptions to theonefive thousand dol- 42 lar ($15,000) limit provided in this section may be granted under extraordi- 43 nary circumstances if approved in advance by thestate board of examiners44 appointing authority. Appointing authorities shall submit a report to the 45 division of financial management and the legislative services office by Octo- 46 ber 1 on all awards granted in the preceding fiscal year. 47 (8) In addition to salary increases provided by any compensation sched- 48 ule, nonclassified officers and employees holding permanent status, except 49 those who are elected officials or whose salaries are fixed by law, may be 50 granted anlump sum bonusaward not to exceedonefive thousand dollars 51 ($15,000) in any given fiscal year based upon suggestions or recommendations 52 made by the employee which resulted in taxpayer savings as a result of cost 53 savings or greater efficiencies to the department, office or institution or to 54 the state of Idaho in excess of the amount of thebonusaward. Exceptions to 55 theonefive thousand dollar ($15,000) limit provided in this subsection may 4 1 be granted in extraordinary circumstances if approved in advance by thestate2board of examinersappointing authority. The appointing authority shall as 3 near as practicable utilize the criteria in conformance with rules promulgated 4 by the division of human resources pursuant to section 67-5309D, Idaho Code. 5 Appointing authorities shall submit a report to the division of financial man- 6 agement and the legislative services office by October 1 on all employee sug- 7 gestion awards granted in the preceding fiscal year. Such report shall include 8 any changes made as a direct result of an employee's suggestion and savings 9 resulting therefrom. 10 (9) Each appointing authority, including the elective offices in the 11 executive department, the legislative department, the judicial department, and 12 the state board of education and the board of regents, shall comply with all 13 reporting requirements necessary to produce the list of employee positions 14 prescribed by section 67-3519, Idaho Code. 15 (10) The adjutant general, with the approval of the governor, shall pre- 16 scribe personnel policies for all officers and employees of the national guard 17 which are not otherwise fixed by law. Such policies will include an employee 18 grievance procedure with appeal to the adjutant general. The adjutant general 19 shall determine schedules of salary and compensation which are, to the extent 20 possible, comparable to the schedules used for federal civil service employees 21 of the national guard and those employees serving in military status. Sched- 22 ules adopted shall be compatible with the state's accounting system to the 23 extent possible. 24 (11) In addition to salary increases provided by any compensation sched- 25 ule, nonclassified officers and employees holding permanent status, except 26 those who are elected officials or whose salaries are fixed by law, may be 27 granted award pay for recruitment or retention purposes upon completion of at 28 least six (6) months of an achieved performance rating. Appointing authorities 29 shall submit a report to the division of financial management and the legisla- 30 tive services office by October 1 on all such awards granted in the preceding 31 fiscal year. 32 (12) In addition to salary increases provided by any compensation sched- 33 ule, nonclassified officers and employees holding permanent status, except 34 those who are elected officials or whose salaries are fixed by law, may be 35 granted other nonperformance related pay as provided in this subsection. 36 Appointing authorities shall submit a report to the division of financial man- 37 agement and the legislative services office by October 1 on all such awards 38 granted in the preceding fiscal year. 39 (a) Shift differential pay up to twenty-five percent (25%) of hourly 40 rates depending on local market rates in order to attract and retain qual- 41 ified staff. 42 (b) Geographic differential pay in areas of the state where recruitment 43 and retention are difficult due to economic conditions and cost of living. 44 (13) In unusual circumstances, each appointing authority, including the 45 elective offices in the executive branch, the legislative branch, the judicial 46 branch, and the state board of education and the board of regents of the uni- 47 versity of Idaho, may grant nonperformance related pay to employees, which in 48 no case may exceed five percent (5%) of an employee's base pay. Appointing 49 authorities shall submit a report to the division of financial management and 50 the legislative services office by October 1 on all such awards granted in the 51 preceding fiscal year. 52 (14) Each appointing authority, shall as nearly as practicable, utilize 53 the criteria for reimbursement of moving expenses in conformance with section 54 67-5337, Idaho Code, and rules promulgated by the division of human resources 55 pursuant thereto. Appointing authorities shall submit a report to the division 5 1 of financial management and the legislative services office by October 1 on 2 all moving reimbursements granted in the preceding fiscal year. 3 (15) Specific pay codes shall be established and maintained in the state 4 controller's office to ensure accurate reporting and monitoring of all pay 5 actions authorized in this section. 6 SECTION 4. That Section 59-1606, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 59-1606. VACATION TIME. (1) Eligible nonclassified officers and employees 9 in the executive department and in the legislative department shall accrue 10 vacation leave and take vacation leave at the same rate and under the same 11 conditions as is provided in sections67-5334,and 67-5335,Idaho Code, for 12 classified officers and employees. 13 (a) The state board of examiners shall adopt comparative tables and 14 charts to compute vacation time on daily, weekly, bi-weekly, calendar 15 month and annual periods. 16 (2) Eligible nonclassified officers and employees in the judicial depart- 17 ment shall accrue vacation leave as determined by order of the supreme court. 18 Leave policies established by the supreme court must be communicated to 19 the state controller in writing at least one hundred eighty (180) days in 20 advance of the effective date of the policies. 21 (3) The state board of education shall determine the vacation leave poli- 22 cies for all officers and employees of the state board of education who are 23 not subject to the provisions of chapter 53, title 67, Idaho Code. To the 24 extent possible, the state board of education shall adopt policies which are 25 compatible with the state's accounting system. 26 Any policy and procedures determined by the state board of education must 27 be communicated to the state controller in writing at least one hundred eighty 28 (180) days in advance of the effective date of the policy and procedures. 29 SECTION 5. That Section 59-1607, Idaho Code, be, and the same is hereby 30 amended to read as follows: 31 59-1607. HOURS OF WORK -- OVERTIME. (1) It is the policy of the legisla- 32 ture of the state of Idaho that all classified and nonclassified officers and 33 employees of state government shall be treatedequallysubstantially similar 34 with reference to hours of employment, holidays and vacation leave, except as 35 provided in this chapter. The policy of this state shall not restrict the 36 extension of regular work hour schedules on an overtime basis, which shall be 37 the same for classified and nonclassified employees, in those activities and 38 duties where such extension is necessary and authorized by the appointing 39 authority. 40 (2) The appointing authority of any department shall determine the neces- 41 sity for overtime work and shall provide for cash compensation or compensatory 42 time off for such overtime work for eligible classified and nonclassified 43 officers and employees. 44 (3) Classified and nonclassified officers and employees who fall within 45 one (1) or more of the following categories are ineligible for cash compensa- 46 tion or compensatory time for overtime work: 47 (a) Elected officials; or 48 (b) Those included in the definition of section 67-5303(j), Idaho Code. 49 (4) Classified and nonclassified employees who are designated as execu- 50 tive, as provided insection 67-5302, Idaho Code, who are designated as exempt51under any other complete exemption inthe federallawfair labor standards 6 1 act, and who are not included in the definition of subsection (3) of this sec- 2 tion, shall be ineligible for compensatory time or cash compensation for over- 3 time work, but such classified and nonclassified employees shall be allowed4compensatory time off from duty for overtime work. Such compensatory time5shall be earned and allowed on a one (1) hour for one (1) hour basis not to6exceed two hundred forty (240) hours. Accrued compensatory time off earned7under this section shall not be transferable, and shall be forfeited at the8time of transfer to another appointing authority or upon separation from state9service. Unused compensatory time shall be forfeited on December 31, 2006. 10 (5) Classified and nonclassified officers and employees who are desig- 11 nated as administrative or professional as provided insection 67-5302, Idaho12Code, or who are designated as exempt under any other complete exemption in13 the federallawfair labor standards act, and who are not included in the def- 14 inition of subsection (3) of this section, shall be ineligible for cash com- 15 pensation for overtime work unless cash payment is authorized by the state 16 board of examiners for overtime accumulated during unusual or emergency situa- 17 tions, but such classified and nonclassified officers and employees shall be 18 allowed compensatory time off from duty for overtime work. Such compensatory 19 time shall be earned and allowed on a one (1) hour for one (1) hour basis, 20 shall not be transferable, and shall be forfeited at the time of transfer to 21 another appointing authority or upon separation from state service. 22 (6) Classified and nonclassified officers and employees who are not des- 23 ignated as executive, administrative or professional as provided insection2467-5302, Idaho Code, who are not designated as exempt under any other complete25exemption inthe federallawfair labor standards act, and who are not 26 included in the definition of subsection (3) of this section, shall be eligi- 27 ble for cash compensation or compensatory time off from duty for overtime 28 work, subject to the restrictions of applicable federal law. Compensatory time 29 off may be provided in lieu of cash compensation at the discretion of the 30 appointing authority after consultation, in advance, with the employee. Com- 31 pensatory time off shall be paid at the rate of one and one-half (1 1/2) hours 32 for each overtime hour worked. Compensatory time off which has been earned 33 during any one-half (1/2) fiscal year but not taken by the end of the succeed- 34 ing one-half (1/2) fiscal year, shall be paid in cash on the first payroll 35 following the close of such succeeding one-half (1/2) fiscal year. Compensa- 36 tory time not taken at the time of transfer to another appointing authority or 37 upon separation from state service shall be liquidated at the time of such 38 transfer or separation by payment in cash. 39 SECTION 6. That Section 67-3511, Idaho Code, be, and the same is hereby 40 amended to read as follows: 41 67-3511. TRANSFER OF LEGISLATIVE APPROPRIATIONS. (1) No appropriations 42 made by the Idaho legislature may be transferred from one object code to 43 another except with the consent of the state board of examiners upon applica- 44 tion duly made by the head of any department, office or institution of the 45 state (including the elected officers in the executive department and the 46 state board of education). No appropriation made for expenses other than per- 47 sonnel costs shall be expended for personnel costs of the particular depart- 48 ment, office or institution for which it is appropriated, provided however, 49 that employee suggestion awards made pursuant to sections 59-1603 and 50 67-5309D, Idaho Code, may be made from the object code in which the savings 51 were realized. 52 (2) Legislative appropriations may be transferred from one program to 53 another within an agency upon application duly made by the head of any depart- 7 1 ment, office or institution of the state and approval of the application by 2 the administrator of the division of financial management and the board of 3 examiners provided the requested transfer is not more than tenper centper- 4 cent (10%) cumulative change from the appropriated amount for any program 5 affected by the transfer. Requests for transfers above tenper centpercent 6 (10%) cumulative change must, in addition to the above, be approved by legis- 7 lative appropriation. Legislative appropriations shall not be transferred from 8 one fund to another fund unless expressly approved by the legislature. 9 (3) All moneys appropriated to any agency of the state of Idaho for the 10 purpose of capital outlay shall be used for that purpose and not for any other 11 purpose. 12 (4) The joint finance-appropriations committee may limit the amount of 13 legislative appropriations for personnel costs which can be transferred to 14 other object codes. 15 SECTION 7. That Section 67-5302, Idaho Code, be, and the same is hereby 16 amended to read as follows: 17 67-5302. DEFINITIONS. As used in this chapter, and other applicable sec- 18 tions of the Idaho Code, each of the terms defined in this section shall have 19 the meaning given in this section unless a different meaning is clearly 20 required by the context. Such terms and their definitions are: 21 (1) "Administrative employee" means any person, nonclassified or classi- 22 fied appointed to a position which meets the following criteria: 231.(a) (ai) Responsible office or nonmanual work directly related to the 24 management policies of a department or section; or 25 (bii) Responsible work that is directly related to academic instruc- 26 tion or training carried on in the administration of a school system 27 or educational establishment; and 282.(b) The employee must customarily and regularly exercise discretion and 29 independent judgment, as distinguished from using skills and following 30 procedures. The employee must have the authority to make important deci- 31 sions; and 323.(c) The employee must: 33 (ai) Regularly assist a bona fide executive or administrative 34 employee; or 35 (bii) Perform work under general supervision along specialized or 36 technical lines requiring special training, experience or knowledge; 37 or 38 (ciii) Execute under only general supervision special assignments; 39 and 404.(d) The employee is classified to a position allocated to the pay grade 41 equivalent to two hundred sixty (260) points or higher pursuant to the 42 rating system established bysection 67-5309C, Idaho Coderule. 435.(e) Final designation of a classified position as "administrative" 44 within this definition shall be made by the administrator of the division 45 of human resources. 46 (2) "Administrator" means the administrator of the division of human 47 resources in the governor's office. 48 (3) "Appointing authority" means the officer, board, commission, person 49 or group of persons authorized by statute or lawfully delegated authority to 50 make appointments to or employ personnel in any department. 51 (4) "Class" means a group of positions sufficiently similar as to the 52 duties performed, degree of supervision exercised or required, minimum 53 requirements of training, experience or skill, and other characteristics, that 8 1 the same title, the same tests of fitness and the same schedule of compensa- 2 tion may be applied to each position in the group. 3 (5) "Classified officer or employee" means any person appointed to or 4 holding a position in any department of the state of Idaho which position is 5 subject to the provisions of the merit examination, selection, retention, 6 promotion and dismissal requirements of chapter 53, title 67, Idaho Code. 7 (6) "Commission" means the Idaho personnel commission. 8 (7) "Compensatory time" means approved time off from duty provided in 9 compensation for overtime hours worked. 10 (8) "Department" means any department, agency, institution or office of 11 the state of Idaho. 12 (9) "Disabled veteran" means an individual who has served on military 13 duty in the armed forces of the United States during any period of war recog- 14 nized by the United States department of veterans affairs for the purposes of 15 awarding federal veterans benefits as may be defined in title 38, U.S. code, 16 chapter 1, section 101(11), or during any other conflict recognized by the 17 award of a campaign or service medal of the United States; and has been sepa- 18 rated therefrom under honorable conditions; and has established the present 19 existence of a service-connected disability; and is receiving compensation, 20 disability retirement benefits, or pension under a public statute as adminis- 21 tered by the department of veterans affairs or a military department. 22 (10) "Earned administrative leave" means hours which exceed the regularly 23 scheduled hours but do not result in overtime. These hours may accrue after 24 hours worked and hours on paid leave exceed forty (40) hours in one (1) work 25 week. 26 (11) "Eligible" means a person who has been determined to be qualified for 27 a classified position and whose name has been placed on the register of eligi- 28 bles. 29 (12) "Executive employee" means any person, nonclassified or classified, 30 appointed to a position equivalent to a bureau chief or above as provided in 31 section 67-2402, Idaho Code, or any employee meeting the following criteria: 321.(a) An individual whose primary duty is management of a department, 33 division or section; and 342.(b) Who customarily and regularly directs the work of at least two (2) 35 or more other employees therein; and 363.(c) Who has the authority to hire and fire, or to recommend hiring and 37 firing; or whose recommendation on these and other actions affecting 38 employees is given particular weight; and 394.(d) Who customarily and regularly exercises discretionary powers; and 405.(e) Who is classified to a position allocated to the pay grade equiva- 41 lent to two hundred sixty (260) points or higher pursuant to the rating 42 system established bysection 67-5309C, Idaho Coderule. 436.(f) Final designation of a classified position as "executive" in this 44 definition shall be made by the administrator. 45 (13) "Exempt employee" means any employee, classified or nonclassified, 46 who is determined to be an executive, professional or administrative employee 47 as defined herein, or who qualifies for any other exemption from cash compen- 48 sation for overtime under applicable federal law. Final designation of a clas- 49 sified position as exempt shall be made by the administrator. 50 (14) "Full-time employee" means any employee working a forty (40) hour 51 work week. 52 (15) "Holiday" means the following: 53 January 1 (New Year's Day); 54 Third Monday in January (Martin Luther King, Jr.-Idaho Human Rights 55 Day); 9 1 Third Monday in February (Washington's Birthday); 2 Last Monday in May (Memorial Day); 3 July 4 (Independence Day); 4 First Monday in September (Labor Day); 5 Second Monday in October (Columbus Day); 6 November 11 (Veterans Day); 7 Fourth Thursday in November (Thanksgiving); 8 December 25 (Christmas). 9 In addition, the term "holiday" shall mean any day so designated by the Presi- 10 dent of the United States or the governor of this state for a public fast, 11 thanksgiving or holiday. 12 In the event that a holiday occurs on a Saturday, the preceding Friday 13 shall be a holiday, and if the holiday falls on a Sunday, the following Monday 14 shall be a holiday. 15 A holiday is a day of exemption from work granted to nonexecutive employ- 16 ees during which said employees shall be compensated as if they actually 17 worked. Employees classified as executive exempt are entitled to ten (10) paid 18 holidays per year. If such an employee works on one (1) of the official holi- 19 days listed in this subsection, then such employee may take an alternative day 20 off but shall not receive additional compensation. 21 (16) "Hours worked" means those hours actually spent in the performance of 22 the employee's job on any day including holidays, and shall not include vaca- 23 tion or sick leave or other approved leave of absence. 24 (17) "Nonclassified employee" means any person appointed to or holding a 25 position in any department of the state of Idaho, which position is exempted 26 from the provisions of chapter 53, title 67, Idaho Code, as provided for in 27 section 67-5303, Idaho Code. 28 (18) "Normal work week" means any forty (40) hours worked during a partic- 29 ular one hundred sixty-eight (168) hour period as previously established by 30 the employee's appointing authority. 31 (19) "Open competitive examination" means an examination which may be 32 taken by qualified applicants to compete on an equal basis for listing on the 33 register of eligibles. 34 (20) "Overtime work" means time worked on holidays and time worked in 35 excess of forty (40) hours in a period of one hundred sixty-eight (168) con- 36 secutive hours, except that in the case of those employees engaged in law 37 enforcement, correctional and fire protection activities characterized by 38 irregular shift work schedules, time worked in excess of one hundred sixty 39 (160) hours in a period of twenty-eight (28) consecutive days shall constitute 40 overtime work within the meaning of this chapter. 41 (21) "Participating department" means any department of the state of Idaho 42 which employs persons in classified positions subject to the merit examina- 43 tion, selection, retention, promotion and dismissal requirements of this chap- 44 ter. 45 (22) "Part-time employee" means any employee whose usually scheduled work 46 is less than forty (40) hours in a period of one hundred sixty-eight (168) 47 consecutive hours. 48 (23) "Personnel system" means the procedure for administering employees in 49 accordance with this chapter. 50 (24) "Political office" means a public office for which partisan politics 51 is a basis for nomination, election or appointment. 52 (25) "Political organization" means a party which sponsors candidates for 53 election to political office. 54 (26) "Position" means a group of duties and responsibilities legally 55 assigned or delegated by one (1) or more appointing authorities and requiring 10 1 the employment of one (1) person. 2 (27) "Professional employee" means any person, nonclassified or classi- 3 fied, appointed to a position which meets the following criteria: 41.(a) The employee's primary duty must be either: 5 (ai) Work requiring knowledge of an advanced type in a field of 6 science or learning, customarily obtained by a prolonged course of 7 specialized instruction and study; or 8 (bii) Work that is original and creative in character in a recog- 9 nized field of artistic endeavor and the result of which depends pri- 10 marily on his invention, imagination, or talent; or 11 (ciii) Work as a teacher certified or recognized as such in a school 12 system or educational institution by which he is employed; and 132.(b) The employee must consistently exercise discretion and judgment; 14 and 153.(c) The employee must do work that is predominantly intellectual and 16 varied, as distinguished from routine or mechanical duties; and 174.(d) The employee is classified to a position allocated to the pay grade 18 equivalent to two hundred sixty (260) points or higher pursuant to the 19 rating system establishedin section 67-5309C, Idaho Codeby rule. 205.(e) Final designation of a classified position as "professional" within 21 this definition shall be made by the administrator. 22 (28) "Provisional appointment" means appointment to a classified position 23 pending the establishment of a register for such position and employment shall 24 not be continued in this status longer than thirty (30) days after establish- 25 ment of a register. 26 (29) "Qualifying examination" means an examination or evaluation given to 27 a selected person to determine eligibility for reclassification or appointment 28 to a position in a classification. 29 (30) "Register" means a list of names of persons who have been determined 30 to be eligible for employment in a classified position as determined on the 31 basis of examination and merit factors as established by the administrator. 32 (31) "Seasonal appointment" means an appointment to a position which is 33 permanent in nature, but which has intermittent work periods throughout the 34 year. 35 (32) "Service rating" means a recorded evaluation of work performance and 36 promotional potential of an employee by his supervisor. 37 (33) "Temporary appointment" means appointment to a position which is not 38 permanent in nature, and in which employment will not exceed one thousand 39 three hundred eighty-five (1,385) hours during any twelve (12) month period. 40 No person holding a temporary appointment may work in excess of one thousand 41 three hundred eighty-five (1,385) hours during a twelve (12) month period of 42 time for any one (1) department, except upon petition by the appointing 43 authority of the department of lands that demonstrates good cause, the admin- 44 istrator of the division of human resources may extend the one thousand three 45 hundred eighty-five (1,385) hour limit for employees of the department who are 46 required to perform fire suppression activities. 47 (34) "Vacation leave" means a period of exemption from work granted to 48 employees during which time said employees shall be compensated. The term 49 shall not include compensatory time for overtime work. 50 (35) "Veteran" means any person who has served in the active service of 51 the armed forces of the United States during any period of war recognized by 52 the United States department of veterans affairs for the purpose of awarding 53 federal veterans benefits as may be defined in title 38, U.S. code, chapter 1, 54 section 101(11), or during any other conflict recognized by the award of a 55 campaign or service medal of the United States, and who has been discharged 11 1 under other than dishonorable conditions. 2 SECTION 8. That Section 67-5309, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 67-5309. RULES OF THE DIVISION OF HUMAN RESOURCES AND THE PERSONNEL COM- 5 MISSION. The administrator of the division of human resources shall have the 6 power and authority to adopt, amend, or rescind such rules as may be necessary 7 for proper administration of this chapter. Such rules shall include: 8 (a) A rule requiring the administrator, after consulting with each 9 department to develop, adopt, and make effective, a job classification system 10 for positions covered by this chapter, based upon an analysis of the duties 11 and responsibilities of the positions. The job classification shall include an 12 appropriate title for each class, and a description of duties and responsibil- 13 ities of positions in the classes and the requirements of minimum training, 14 experience and other qualifications, suitable for the performance of duties of 15 the position. 16 (b) A rule describing the relevant labor markets and benchmark job clas- 17 sifications used in the administrator's salary surveys. 18 (c) A rule requiring that all classes of positions which are common to 19 the departments concerned shall have the same titles, minimum requirements and 20 compensation ranges. 21 (d) A rule providing for review by the administrator of the personnel 22 system including classifications and compensation policies and procedures. 23 (e) A rule that, notwithstanding the procedure for examination and rank- 24 ing of eligibles on a register provided in subsection (f) of this section, an 25 agency may appoint an individual directly into an entrance or promotional pro- 26 bation if the division of vocational rehabilitation, Idaho commission for the 27 blind and visually impaired or the industrial commission certifies, with the 28 concurrence of division of human resources staff, that the individual (1) has 29 a disability or handicap as defined under state or federal law; (2) is quali- 30 fied to perform the essential functions of a particular classified position 31 with or without reasonable accommodation; and (3) lacks competitiveness in the 32 examination process due to the disability or handicap. The probationary period 33 as provided in subsection (j) of this section shall be the sole examination 34 for such individuals. 35 (f) A rule requiring fair and impartial selection of appointees to all 36 positions other than those defined as nonclassified in this chapter, on the 37 basis of open competitive merit examinations or evaluations. An application 38 for an examination will be accepted after the closing date of the examination 39 from a person who was serving in the armed forces, or undergoing hospitaliza- 40 tion of no more than one (1) year following discharge, during any period in 41 which the examination was open; the application must be submitted within one 42 hundred twenty (120) days of separation from the armed forces or hospitaliza- 43 tion and prior to the expiration of the register established as a result of 44 the examination. A disabled veteran may file an application at any time for 45 any position for which the division maintains a register or for which a regis- 46 ter is about to be established, provided he or she has not already been exam- 47 ined twice for the same position and grade for which application is made, does 48 not have current eligibility on that register, or is not serving in a compet- 49 itive position in the same grade for which application is made. Examinations 50 may be assembled or unassembled and may include various examining techniques 51 such as rating of training and experience, written tests, oral interviews, 52 recognition of professional licensing, performance tests, investigations and 53 any other measure of ability to perform the duties of the position. Examina- 12 1 tions shall be scored objectively. Five (5) points shall be added to the 2 earned rating of any war veteran as defined in section 65-506, Idaho Code, and 3 the widow or widower of any war veteran as defined in section 65-506, Idaho 4 Code, as long as he or she remains unmarried. Pursuant to section 65-506, 5 Idaho Code, ten (10) points shall be added to the earned rating of any dis- 6 abled veteran, the widow or widower of any disabled veteran as long as he or 7 she remains unmarried or the spouse of any disabled veteran who is physically 8 unable to perform the work in the position to which the spouse seeks to apply 9 the preference. Employment registers shall be established in order of final 10 score except that the names of all five (5) point preference eligibles result- 11 ing from any merit system or civil service examination shall be placed on the 12 register in accordance with their augmented rating, and the names of all ten 13 (10) point preference eligibles shall be placed at the top of the register 14 above the names of all nonpreference eligibles. Certification of eligibility 15 for appointment to vacancies shall be in accordance with a formula which lim- 16 its selection by the hiring department from among the ten (10) top ranking 17 available eligibles plus the names of all individuals with scores identical to 18 the tenth ranking eligible on the register. A register with at least five (5) 19 eligibles shall be adequate. Selective certification shall be permitted when 20 justified by the hiring department, under rules to be made by the division 21 defining adequate justification based on the duties and requirements of the 22 positions. Such examinations need not be held until after the rules have been 23 adopted, the service classified and a pay plan established, but shall be held 24 not later than one (1) year after departments commence participation in the 25 personnel system. 26 (g) A rule that, whenever practicable, a vacancy in a classified position 27 shall be filled by the promotion of a qualified permanent employee of the 28 agency in which the vacancy occurs. An interagency promotion shall be made 29 through competitive examination and all qualified state employees shall have 30 the opportunity to compete for such promotions. If an employee's name appears 31 within certifiable range on a current register for a higher class of position, 32 he shall be eligible for a transfer and promotion. 33 (h) A rule for development and maintenance of a system of service ratings 34 and the use of such ratings by all departments in connection with promotions, 35 demotions, retentions, separations and reassignments. The rule shall require 36 that an evaluation of each classified employee shall be made after each two 37 thousand eighty (2,080) hour period of credited state service, and that a copy 38 of the evaluation shall be filed with the division. 39 (i) A rule prohibiting disqualification of any person from taking an 40 examination, from appointment to a position, from promotion, or from holding a 41 position because of race or national origin, color, sex, age, political or 42 religious opinions or affiliations, and providing for right of appeal. 43 (j) A rule establishing a probation period not to exceed one thousand 44 forty (1,040) hours of credited state service for all appointments and promo- 45 tions, except that peace officers as defined in section 19-5101, Idaho Code, 46 shall be subject to a probation period of two thousand eighty (2,080) hours of 47 credited state service, and for the appointing authority to provide the 48 employee and the administrator a performance evaluation indicating satisfac- 49 tory or unsatisfactory performance not later than thirty (30) days after the 50 expiration of the probationary period. The rule shall provide that if the 51 appointing authority fails to provide a performance evaluation within thirty 52 (30) days after the expiration of the probationary period, the employee shall 53 be deemed to have satisfactorily completed the probation unless the appointing 54 authority receives approval from the administrator to extend the probationary 55 period for good cause for an additional specified period not to exceed one 13 1 thousand forty (1,040) hours of credited state service. If an employee is per- 2 forming in an unsatisfactory manner during the entrance probationary period, 3 the appointing authority shall ask the employee to resign, and if no resigna- 4 tion is submitted, shall terminate the employment of such employee without the 5 right of grievance or appeal. 6 (k) A rule concerning provisional appointments. 7 (l) A rule concerning temporary appointments. 8 (m) A rule governing the employment of consultants and persons retained 9 under independent contract. 10 (n) A rule for the disciplinary dismissal, demotion, suspension or other 11 discipline of employees only for cause with reasons given in writing. Such 12 rule shall provide that any of the following reasons shall be proper cause for 13 the disciplinary dismissal, demotion or suspension of any employee in the 14 state classified service: 15 1. Failure to perform the duties and carry out the obligations imposed by 16 the state constitution, state statutes and rules of the employee's depart- 17 ment, or rules of the administrator or the division. 18 2. Inefficiency, incompetency, or negligence in the performance of 19 duties, or job performance that fails to meet established performance 20 standards. 21 3. Physical or mental incapability for performing assigned duties. 22 4. Refusal to accept a reasonable and proper assignment from an autho- 23 rized supervisor. 24 5. Insubordination or conduct unbecoming a state employee or conduct det- 25 rimental to good order and discipline in the employee's department. 26 6. Intoxication on duty. 27 7. Careless, negligent, or improper use or unlawful conversion of state 28 property, equipment or funds. 29 8. Use of any influence which violates the principles of the merit system 30 in an attempt to secure a promotion or privileges for individual advan- 31 tage. 32 9. Conviction of official misconduct in office, or conviction of any fel- 33 ony, or conviction of any other crime involving moral turpitude. 34 10. Acceptance of gifts in exchange for influence or favors given in the 35 employee's official capacity. 36 11. Habitual pattern of failure to report for duty at the assigned place 37 and time. 38 12. Habitual improper use of sick leave privileges. 39 13. Unauthorized disclosure of confidential information from official 40 records. 41 14. Absence without leave. 42 15. Misstatement or deception in the application for the position. 43 16. Failure to obtain or maintain a current license or certificate law- 44 fully required as a condition for performing the duties of the job. 45 17. Prohibited participation in political activities. 46 (o) A rule to establish procedures for maintenance of a record of the 47 employment history and appropriate information relating to performance of all 48 employees under the personnel system. For the purposes of this rule, the state 49 shall be considered one (1) employer. 50 (p) Rules to provide for recruitment programs in cooperation with depart- 51 ment heads and the employment security agency in keeping with current employ- 52 ment conditions and labor market trends. 53 (q) Rules to establish procedures for examinations as necessary for the 54 purpose of maintaining current registers from which to fill employment vacan- 55 cies. 14 1 (r) Other rules not inconsistent with the foregoing provisions of this 2 section as may be necessary and proper for the administration and enforcement 3 of this chapter. 4 (s) A rule concerning "project exempt" appointments. 5 (t) Rules relating to leave for state employees from official duties 6 including, but not limited to, sick leave, military leave, jury duty, leaves 7 of absence without compensation and such other forms of absence from perfor- 8 mance of duties in the course of state employment as may be necessary. 9 (u) A rule providingfor five percent (5%)up to twenty-five percent 10 (25%) shift differential pay based on local market practices. 11 (v) A rule to establish guidelines for awarding employee suggestion 12 awards set forth in sections 59-1603 and 67-5309D, Idaho Code. 13 (w) A rule to establish the reimbursement of moving expenses for a cur- 14 rent or newly-hired state employee. 15 (x) A rule to allow, at the request of the hiring agency, temporary and 16 acting appointment service time to count toward fulfilling entrance probation- 17 ary requirements as established in section 67-5309(j), Idaho Code. 18 SECTION 9. That Section 67-5309A, Idaho Code, be, and the same is hereby 19 repealed. 20 SECTION 10. That Chapter 53, Title 67, Idaho Code, be, and the same is 21 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 22 ignated as Section 67-5309A, Idaho Code, and to read as follows: 23 67-5309A. STATE EMPLOYEE COMPENSATION PHILOSOPHY. (1) It is hereby 24 declared to be the intent of the legislature of the state of Idaho that the 25 goal of a total compensation system for state employees shall be to fund a 26 competitive employee compensation and benefit package that will attract quali- 27 fied applicants to the work force; retain employees who have a commitment to 28 public service excellence; motivate employees to maintain high standards of 29 productivity; and reward employees for outstanding performance. 30 (2) The foundation for this philosophy recognizes that state government 31 is a service enterprise in which the state work force provides the most criti- 32 cal role for Idaho citizens. Maintaining a competitive compensation system is 33 an integral, necessary and expected cost of providing the delivery of state 34 services and is based on the following compensation standards: 35 (a) The state's overall compensation system, which includes both a salary 36 and a benefit component, when taken as a whole shall be competitive with 37 relevant labor market averages. 38 (b) Advancement in pay shall be based on job performance and market 39 changes. 40 (c) Pay for performance shall provide faster salary advancement for 41 higher performers based on a merit increase matrix developed by the divi- 42 sion of human resources. 43 (d) All employees below the state's midpoint market average in a salary 44 range who are meeting expectations in the performance of their jobs shall 45 move through the pay range toward the midpoint market average. 46 (3) It is hereby declared to be legislative intent that regardless of 47 specific budgetary conditions from year to year, it is vital to fund necessary 48 compensation adjustments each year to maintain market competitiveness in the 49 compensation system. In order to provide this funding commitment in difficult 50 fiscal conditions, it may be necessary to increase revenues, or to prioritize 51 and eliminate certain functions or programs in state government, or to reduce 52 the overall number of state employees in a given year, or any combination of 15 1 such methods. 2 SECTION 11. That Section 67-5309B, Idaho Code, be, and the same is hereby 3 repealed. 4 SECTION 12. That Chapter 53, Title 67, Idaho Code, be, and the same is 5 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 6 ignated as Section 67-5309B, Idaho Code, and to read as follows: 7 67-5309B. IDAHO COMPENSATION PLAN. (1) The administrator of the division 8 of human resources shall establish benchmark job classifications and shall 9 assign all classifications to a pay grade utilizing the Hay profile method in 10 combination with market data. Pay grades established or revised by the admin- 11 istrator shall appropriately weigh Hay points and market data to ensure inter- 12 nal equity and market equity within the classified service. 13 (2) It shall be the responsibility of each department director to prepare 14 a department salary administration plan and corresponding budget plan that 15 supports the core mission of the department and is consistent with the provi- 16 sions of section 67-5309A, Idaho Code. 17 (3) Advancement in pay shall be based on performance and market changes 18 and be provided in a variety of delivery methods, including ongoing increases, 19 temporary increases and market related payline moves. Market related payline 20 moves may advance all eligible employees as well as the structure to avoid 21 compression in the salary system. 22 (4) Pay for performance shall provide faster salary advancement for 23 higher performers based on a merit increase matrix developed by the division 24 of human resources. Such matrix shall be based upon the employee's proximity 25 to the state midpoint market average, and the employee's relative performance. 26 Such matrix may be adapted by each agency to meet its specific needs when 27 approved by the division of human resources. 28 (5) No employee shall advance in a salary range without a performance 29 evaluation on file certifying that the employee meets the performance criteria 30 of the assigned position. 31 (6) Each employee's work performance shall be evaluated through a format 32 and process approved by the department and the division of human resources. 33 The employee shall be evaluated after one thousand forty (1,040) hours of 34 credited state service from the date of initial appointment or promotion, and 35 thereafter be evaluated after each two thousand eighty (2,080) hours of cred- 36 ited state service. Employees may be eligible for advancement in pay if certi- 37 fied as meeting the performance requirements of this section. However, such 38 in-grade advancement shall not be construed as a vested right. The department 39 director shall designate in writing whether such in-grade advancement is tem- 40 porary, conditional or permanent. It shall be the specific responsibility of 41 the employee's immediate supervisor to effect the evaluation process. Such 42 evaluation shall be approved by the department director or the director's des- 43 ignee. 44 (7) All supervisors who evaluate state employees shall receive training 45 in the evaluation format and process to assure fairness and consistency in the 46 evaluation process. 47 (8) Notwithstanding any other provision of Idaho Code, it is hereby 48 declared to be the policy of the legislature of the state of Idaho that all 49 classified employees of like classification and pay grade allocation shall be 50 treated in a substantially similar manner with reference to personnel bene- 51 fits. 16 1 SECTION 13. That Section 67-5309C, Idaho Code, be, and the same is hereby 2 repealed. 3 SECTION 14. That Chapter 53, Title 67, Idaho Code, be, and the same is 4 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 5 ignated as Section 67-5309C, Idaho Code, and to read as follows: 6 67-5309C. ANNUAL SURVEYS, REPORTS AND RECOMMENDATIONS. (1) The adminis- 7 trator of the division of human resources shall conduct or approve annual sal- 8 ary and benefit surveys within relevant labor markets to determine salary 9 ranges and benefit packages that represent competitive labor market average 10 rates and benefits provided by private industry and other governmental units. 11 (2) A report of the results of the annual salary and benefit surveys and 12 recommendations for changes to meet the requirements of section 67-5309A, 13 Idaho Code, together with their estimated costs of implementation, shall be 14 submitted to the governor and the legislature not later than the first day of 15 December of each year. The recommendation shall include, at a minimum, four 16 (4) components to address the compensation philosophy described in section 17 67-5309A, Idaho Code, and shall include specific funding recommendations for 18 each component: 19 (a) A recommendation for market related changes necessary to address sys- 20 tem wide structure adjustments to stay competitive with relevant labor 21 markets. Such recommendation may include a market related payline adjust- 22 ment for all eligible employees, as well as the structure, to avoid com- 23 pression in the salary system. 24 (b) A recommendation for market related changes necessary to address spe- 25 cific occupational inequities. 26 (c) A recommendation for a merit increase component to recognize and 27 reward state employees in the performance of public service to the citi- 28 zens of Idaho. 29 (d) A recommendation for any changes to the employee benefit package, 30 including any adjustments to the overall design of the benefit package 31 and/or employee contributions. 32 (3) The governor shall submit his own recommendations on proposed changes 33 in salaries and benefits to the legislature prior to the seventh legislative 34 day of each session. Such recommendation shall address, at a minimum, the four 35 (4) components and subsequent funding for each component required in this sec- 36 tion. 37 (4) The legislature may, by concurrent resolution, accept, modify or 38 reject the governor's recommendations, but any such action by the legislature, 39 at a minimum, shall address the four (4) components and subsequent funding of 40 each component required in this section. The failure of the legislature to 41 accept, modify or reject the recommendations prior to adjournment sine die 42 shall constitute approval of the governor's recommendations, and such recom- 43 mendations shall be funded through appropriations provided by law. The admin- 44 istrator of the division of human resources shall implement necessary and 45 authorized changes to salary and pay schedule by rule. The administrator of 46 the department of administration shall implement necessary and authorized 47 changes to benefits by rule. 48 SECTION 15. That Chapter 53, Title 67, Idaho Code, be, and the same is 49 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 50 ignated as Section 67-5309D, Idaho Code, and to read as follows: 51 67-5309D. OTHER PAY DELIVERY OPTIONS. (1) In addition to pay increases 17 1 authorized in section 67-5309B, Idaho Code, the department director may grant 2 a classified employee holding permanent status bonus pay not to exceed five 3 thousand dollars ($5,000) in any given fiscal year based upon exemplary per- 4 formance. Exceptions to the five thousand dollar ($5,000) limit provided in 5 this subsection (1) may be granted in extraordinary circumstances if approved 6 in advance by the department director. Departments shall submit a report to 7 the division of financial management and the legislative services office by 8 October 1 on all bonuses granted in the preceding fiscal year. 9 (2) In addition to pay increases authorized in section 67-5309B, Idaho 10 Code, the department director may grant a classified employee holding perma- 11 nent status an award payment based upon suggestions or recommendations made by 12 the employee which resulted in taxpayer savings as a result of cost savings or 13 greater efficiencies to the department or to the state of Idaho in excess of 14 the amount of the award, and in compliance with the rules for employee sugges- 15 tion awards promulgated by the division of human resources. The award may be 16 an amount up to twenty-five percent (25%) of the amount determined to be the 17 dollar savings to the state, but not in excess of five thousand dollars 18 ($5,000). Exceptions to the five thousand dollar ($5,000) limit provided in 19 this subsection (2) may be granted in extraordinary circumstances if approved 20 in advance by the department director. Departments shall submit a report to 21 the division of financial management and the legislative services office by 22 October 1 on all employee suggestion awards granted in the preceding fiscal 23 year. Such report shall include any changes made as a direct result of an 24 employee's suggestion and savings resulting therefrom. 25 (3) In addition to pay increases authorized in section 67-5309B, Idaho 26 Code, the department director may grant award pay to a classified employee 27 holding permanent status for recruitment or retention purposes upon completion 28 of at least six (6) months of achieving performance standards. Departments 29 shall submit a report to the division of financial management and the legisla- 30 tive services office by October 1 on all such awards granted in the preceding 31 fiscal year. 32 (4) In addition to pay increases authorized in section 67-5309B, Idaho 33 Code, department directors may provide a classified employee holding permanent 34 status other nonperformance related pay as provided in this subsection (4). 35 Departments shall submit a report to the division of financial management and 36 the legislative services office by October 1 on all such awards granted in the 37 preceding fiscal year. 38 (a) Shift differential pay up to twenty-five percent (25%) of hourly 39 rates depending on local market rates in order to attract and retain qual- 40 ified staff. 41 (b) Geographic differential pay in areas of the state where recruitment 42 and retention of qualified staff are difficult due to economic conditions 43 and cost of living. 44 (5) When necessary to obtain or retain qualified personnel in a particu- 45 lar classification, upon petition of the department to the administrator con- 46 taining acceptable reasons therefor, a higher temporary pay grade may be 47 authorized by the administrator which, if granted, shall be reviewed annually 48 to determine the need for continuance. 49 (6) In unusual circumstances, with prior approval from the administrators 50 of the division of human resources and the division of financial management, 51 agencies may grant nonperformace related pay to employees, which in no case 52 may exceed five percent (5%) of an employee's base pay. Departments shall sub- 53 mit a report to the division of financial management and the legislative ser- 54 vices office by October 1 on all such awards granted in the preceding fiscal 55 year. 18 1 (7) Specific pay codes shall be established and maintained in the state 2 controller's office to ensure accurate reporting and monitoring of all pay 3 actions authorized in this section. 4 SECTION 16. That Section 67-5326, Idaho Code, be, and the same is hereby 5 repealed. 6 SECTION 17. That Sections 67-5328, 67-5329, 67-5330 and 67-5331, Idaho 7 Code, be, and the same are hereby amended to read as follows: 8 67-5328.OVERTIME COMPENSATION -- ELIGIBILITYSTATE POLICY -- OVERTIME. 9 (1) It is hereby declared to be the policy of the legislature of the state of 10 Idaho that all classified employees shall be treated substantially similar 11 with reference to hours of employment. The policy of this state as declared in 12 this act shall not restrict the extension of regular work hour schedules on an 13 overtime basis in those activities and duties where such extension is neces- 14 sary and authorized, provided that overtime work performed under such exten- 15 sion is compensated for as hereinafter provided. 16 (2) The appointing authority of any department shall determine the neces- 17 sity for overtime work and shall provide for cash compensation or compensatory 18 time off for such overtime work for eligible classified officers and employ- 19 ees, subject to the restrictions of applicable federal law. 2067-5329. CASH FOR OVERTIME -- COMPENSATORY TIME.21 (13) Cash for overtime and compensatory time shall be paid based on the 22 following criteria: 23 (a) Classified and nonclassified officers and employees who fall within 24 one (1) or more of the following categories are ineligible for cash com- 25 pensation or compensatory time for overtime work: 26 (ai) Elected officials; or 27 (bii) Those included in the definition of section 67-5303(j), Idaho 28 Code. 29 (2b) Classified and nonclassified employees who are designated as execu- 30 tive, as provided insection 67-5302, Idaho Code, who are designated as31exempt under any other complete exemption inthe federallawfair labor 32 standards act, and who are not included in the definition of subsection 33 (13)(a) of this section, shall be ineligible for compensatory time or cash 34 compensation for overtime work, but such classified and nonclassified35employees shall be allowed compensatory time off from duty for overtime36work. Such compensatory time shall be earned and allowed on a one (1) hour37for one (1) hour basis not to exceed two hundred forty (240) hours.38Accrued compensatory time off earned under this section shall not be39transferable, and shall be forfeited at the time of transfer to another40appointing authority or upon separation from state service. Unused compen- 41 satory time shall be forfeited on December 31, 2006. 42 (3c) Classified and nonclassified employees who are designated as admin- 43 istrative or professional, as provided insection 67-5302, Idaho Code, or44who are designated as exempt under any other complete exemption inthe 45 federallawfair labor standards act, and who are not included in the def- 46 inition of subsection (13)(a) of this section, shall be ineligible for 47 cash compensation for overtime work unless cash payment is authorized by 48 the state board of examiners for overtime accumulated during unusual or 49 emergency situations, but such classified and nonclassified employees 50 shall be allowed compensatory time off from duty for overtime work. Such 51 compensatory time shall be earned and allowed on a one (1) hour for one 52 (1) hour basis, shall not be transferable, and shall be forfeited at the 19 1 time of transfer to another appointing authority or upon separation from 2 state service. 3 (4d) Classified employees who are not designated as executive, adminis- 4 trative or professional as provided insection 67-5302, Idaho Code, who5are not designated as exempt under any other complete exemption inthe 6 federallawfair labor standards act, and who are not included in the def- 7 inition of subsection (13)(a) of this section, shall be eligible for cash 8 compensation or compensatory time off from duty for overtime work, subject 9 to the restrictions of applicable federal law. Compensatory time off may 10 be provided in lieu of cash compensation at the discretion of the appoint- 11 ing authority after consultation, in advance, with the employee. Compensa- 12 tory time off shall be paid at the rate of one and one-half (1 1/2) hours 13 for each overtime hour worked. Compensatory time off which has been earned 14 during any one-half (1/2) fiscal year but not taken by the end of the suc- 15 ceeding one-half (1/2) fiscal year, shall be paid in cash on the first 16 payroll following the close of such succeeding one-half (1/2) fiscal year. 17 Compensatory time not taken at the time of transfer to another appointing 18 authority or upon separation from state service shall be liquidated at the 19 time of such transfer or separation by payment in cash. 2067-5330. RATE OF OVERTIME COMPENSATION WHEN PAID IN CASH.21 (4) Cash compensation for overtime, when paid, shall be at one and one- 22 half (1 1/2) times the hourly rate of that officer's or employee's salary or 23 wage, except for those employees whose positions fall within the definitions 24 of executive, administrative or professional as stated in section 67-5302, 25 Idaho Code, who will be paid at their regular hourly rate of pay as provided 26 for in subsection67-5329, Idaho Code(3) of this section. 2767-5331. OVERTIME COMPENSATION -- WHEN PAID.28 (5) Except as provided for in subsection67-5329, Idaho Code(3) of this 29 section, compensation for authorized overtime work shall be made at the com- 30 pletion of the pay period next following the pay period in which the overtime 31 work occurred and shall be added to the regular salary payment. 32 SECTION 18. That Sections 67-5333 and 67-5339, Idaho Code, be, and the 33 same are hereby amended to read as follows: 34 67-5333. SICK LEAVE.COMPUTATION.(1) Sick leave shall be computed as 35 follows: 36 (a) The rate per hour at which sick leave shall accrue to classified 37 officers and employees earning credited state service shall be at the rate 38 represented by the proportion 96/2080. Sick leave shall accrue without 39 limit, and shall be transferable from department to department. 40 (2b) Sick leave shall not accrue to any officer or employee on any kind 41 of leave of absence without pay, suspension without pay or layoff. Sick 42 leave shall accrue while an officer or employee is on approved leave with 43 pay, on approved vacation leave, on approved military leave with pay, and 44 on approved sick leave, but not when compensatory time or earned adminis- 45 trative leave is taken. 46 (3c) All accrued sick leave shall be forfeited at the time of separation 47 from state service and no officer or employee shall be reimbursed for 48 accrued sick leave at the time of separation, except as provided in 49 subsection67-5339, Idaho Code(2) of this section. If such officer or 50 employee returns to credited state service within three (3) years of such 51 separation, all sick leave credits accrued at the time of separation shall 52 be reinstated, except to the extent that unused sick leave was utilized 53 for the purposes specified in subsection67-5339, Idaho Code(2) of this 20 1 section. 2 (4d) Sick leave shall be taken on a workday basis. Regularly scheduled 3 days off and officially designated holidays falling within a period of 4 sick leave shall not be counted against sick leave. Sick leave shall not 5 be taken in advance of being earned. 6 (5e) In cases where absences for sick leave exceed three (3) consecutive 7 working days, the appointing authority may require verification by a phy- 8 sician or other authorized practitioner. 9 (6f) If an absence for illness or injury extends beyond the sick leave 10 accrued to the credit of the officer or employee, the officer or employee 11 may be granted leave without pay. 12 (7g) The administrator shall prescribe additional requirements for sick 13 leave for classified officers and employees on a part-time or irregular 14 schedule, for maintaining sick leave records, for funeral leave, and such 15 other applicable purposes as necessary. 1667-5339. USE OF UNUSED SICK LEAVE.17 (12) Unused sick leave may be used as follows: 18 (a) Upon separation from state employment by retirement in accordance 19 with chapter 13, title 59 or chapter 1, title 33, Idaho Code, an 20 employee's unused sick leave shall be determined based on accumulated sick 21 leave earned subsequent to July 1, 1976, and shall be reported by the 22 employer to the public employee retirement system. Upon separation from 23 state employment by retirement in accordance with chapter 20, title 1, 24 Idaho Code, an employee's unused sick leave shall be determined based on 25 accumulated sick leave earned subsequent to July 1, 2000, and shall be 26 reported by the employer to the public employee retirement system. A sum 27 equal to one-half (1/2), or the maximum amount allowed bysubsection (2)28 paragraph (b) of this subsection (2), whichever is the lesser, of the mon- 29 etary value of such unused sick leave, calculated at the rate of pay for 30 such employee at the time of retirement, shall be transferred from the 31 sick leave account provided bysubsection (3)paragraph (c) of this 32 subsection (2) and shall be credited to such employee's retirement 33 account. Such sums shall be used by the Idaho public employee retirement 34 board to pay premiums for such group health, accident, and life insurance 35 programs as may be maintained by the state, to the extent of the funds 36 credited to the employee's account pursuant to this section. Upon an 37 employee's death, any unexpended sums remaining in the account shall 38 revert to the sick leave account. 39 (2b) For the purposes of determining the monetary value of unused sick 40 leave, the maximum unused sick leave which may be considered, shall be: 41 (ai) During the first ten thousand four hundred (10,400) hours of 42 credited state service, the maximum unused sick leave which may be 43 considered shall be four hundred twenty (420) hours; 44 (bii) During the second ten thousand four hundred (10,400) hours of 45 credited state service, the maximum unused sick leave which may be 46 considered shall be four hundred eighty (480) hours; 47 (ciii) During the third ten thousand four hundred (10,400) hours of 48 credited state service, the maximum unused sick leave which may be 49 considered shall be five hundred forty (540) hours; and 50 (div) Thereafter, the maximum unused sick leave which may be consid- 51 ered shall be six hundred (600) hours. 52 (3c) Each employer in state government shall contribute to a sick leave 53 account maintained by the public employee retirement system exclusively 54 for the purpose of the provisions of this section. The rate of such con- 55 tribution each pay period shall consist of a percentage of employees' sal- 21 1 aries as determined by the board, and such rate shall remain in effect 2 until next determined by the board. Any excess balance in the sick leave 3 account shall be invested, and the earnings therefrom shall accrue to the 4 sick leave account except the amount required by the board to defray 5 administrative expenses. All moneys payable to the sick leave account are 6 hereby perpetually appropriated to the board, and shall not be included in 7 its departmental budget. The state insurance fund and public health dis- 8 tricts shall be considered employers in state government for purposes of 9 participation under this section. 10 SECTION 19. That Sections 67-5334, 67-5335 and 67-5337, Idaho Code, be, 11 and the same are hereby amended to read as follows: 12 67-5334. VACATION TIME.COMPUTATION.(1) Vacation time shall be computed 13 as follows: 14 (a) Vacation time shall not accrue to any officer or employee on any kind 15 of leave of absence without pay, suspension without pay or layoff. Vaca- 16 tion leave shall accrue while an officer or employee is on approved leave 17 with pay, on approved vacation leave, on approved military leave with pay, 18 and on approved sick leave, but not when compensatory time or earned 19 administrative leave is taken. 20 (2b) The rate per hour at which vacation leave shall accrue to eligible 21 classified officers and employees earning credited state service who are 22 covered and nonexempt under the federal fair labor standards act shall be 23 at the rate represented by the proportion 96/2080 during the first ten 24 thousand four hundred (10,400) hours of credited state service; at the 25 rate represented by the proportion 120/2080 during the second ten thousand 26 four hundred (10,400) hours of credited state service; at the rate repre- 27 sented by the proportion 144/2080 during the third ten thousand four hun- 28 dred (10,400) hours of credited state service; and at the rate represented 29 by the proportion 168/2080 thereafter. 30 (c) Classified officers and employees earning credited state service and 31 are defined as an exempt "professional," "administrative," or "computer 32 worker" under the federal fair labor standards act shall be at the rate 33 represented by the proportion 120/2080 during the first ten thousand four 34 hundred (10,400) hours of credited state service; at the rate represented 35 by the proportion 144/2080 during the second ten thousand four hundred 36 (10,400) hours of credited state service; and at the rate represented by 37 the proportion 168/2080 thereafter. 38 (d) Classified officers and employees earning credited state service and 39 are defined as an exempt "executive" under the federal fair labor stan- 40 dards act shall be at the rate represented by the proportion 200/2080. 4167-5335. VACATION TIME -- ELIGIBILITY -- MAXIMUM TIME -- RIGHT TO ANNUAL42VACATION.43 (12) Eligibility and use of vacation time shall be determined as follows: 44 (a) An appointing authority shall permit each officer or employee to take 45 vacation leave to the extent such leave has accrued. 46 (2b) Vacation leave may be accrued and accumulated only as follows, 47 unless amounts in excess of the permitted accumulations have been 48 expressly authorized in writing by the board of examiners during unusual 49 or emergency situations: 50 During the first ten thousand four hundred (10,400) hours of credited 51 state service, vacation leave may be accrued and accumulated to a maximum of 52 one hundred ninety-two (192) hours, employees classified as "executive" under 53 the federal fair labor standards act may accrue and accumulate vacation leave 22 1 to a maximum of two hundred (200) hours during this period; 2 During the second ten thousand four hundred (10,400) hours of credited 3 state service, vacation leave may be accrued and accumulated to a maximum of 4 two hundred forty (240) hours; 5 During the third ten thousand four hundred (10,400) hours of credited 6 state service, vacation leave may be accrued and accumulated to a maximum of 7 two hundred eighty-eight (288) hours; 8 After thirty-one thousand two hundred (31,200) hours of credited state 9 service, vacation leave may be accrued and accumulated to a maximum of three 10 hundred thirty-six (336) hours. 11 (3c) Vacation leave shall be transferable from department to department 12 only to the extent that it is accrued and accumulated. 13 (4d) Vacation leave shall not be earned, accrued or accumulated during 14 any pay period in which the maximum accruals and accumulations provided by 15 this section have been met. 16 (5e) Vacation leave not taken shall be compensated for at the time of 17 separation only to the maximum accruals and accumulations allowed by this 18 section. 19 (6f) Vacation leave shall be taken on a workday basis. Regularly sched- 20 uled days off and officially designated holidays falling within a period 21 of vacation leave shall not be counted against vacation leave. Vacation 22 leave shall not be taken in advance of being earned and shall only be 23 taken in pay periods subsequent to being earned. 24 (7g) With the approval of the appointing authority for both the transfer- 25 ring and receiving officer or employee, an officer or employee may trans- 26 fer accrued vacation leave, up to a maximum of forty (40) hours per fiscal 27 year, to another officer or employee for purposes of sick leave in the 28 event the receiving officer or employee or a family member suffers from a 29 serious illness or injury. The amount transferred shall be converted to 30 sick leave. An officer or employee shall not be allowed to receive more 31 than one hundred sixty (160) hours of transferred leave per fiscal year, 32 and a transfer shall not occur until the receiving employee has exhausted 33 all of his or her accrued sick and vacation leave. An officer or employee 34 shall not be eligible to transfer vacation leave unless his or her balance 35 exceeds eighty (80) hours, and in no event may an officer or employee 36 transfer an amount of accrued leave which would result in an accrued bal- 37 ance of less than eighty (80) hours. 3867-5337. CASH FOR UNUSED VACATION TIME.39 (3) Upon separation from state employment and to the limits allowed by 40 subsection67-5335, Idaho Code(2) of this section, all classified officers 41 and employees shall receive a lump sum payment for accrued but unused vacation 42 leave at the hourly rate of pay of that officer or employee. 43 SECTION 20. That Chapter 53, Title 67, Idaho Code, be, and the same is 44 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 45 ignated as Section 67-5337, Idaho Code, and to read as follows: 46 67-5337. MOVING EXPENSE REIMBURSEMENT. In order for the state to attract 47 and retain professional staff, it may be necessary to defray normal intrastate 48 and interstate moving expenses. The head of any department, office or institu- 49 tion of the state shall have the authority to decide whether or not to reim- 50 burse moving expenses for current or newly-hired state employees on a case-by- 51 case basis up to ten percent (10%) of the employee's base salary or fifteen 52 thousand dollars ($15,000), whichever is less, and in compliance with rules 53 for the reimbursement of moving expenses promulgated by the division of human 23 1 resources. Exceptions to the maximum moving expense reimbursement may be 2 granted if approved in advance by the department director. Agencies shall sub- 3 mit a report to the division of financial management and the legislative ser- 4 vices office by October 1 on all moving expense reimbursements granted in the 5 preceding fiscal year. 6 SECTION 21. That Section 67-5342, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 67-5342. SEVERANCE PAY FOR STATE EMPLOYEES. Upon termination from state 9 service, no classified or exempt employee shall be eligible for severance pay 10 and no employer shall provide or pay severance pay to such an employee or 11 former employee. As used in this section, "severance pay" shall mean money, 12 exclusive of wages or salary, vacation leave payoff, compensatory time leave 13 and earned administrative leave payoff, paid to a classified or exempt 14 employee who resigns from state service of his own volition and not under 15 duress. 16 SECTION 22. An emergency existing therefor, which emergency is hereby 17 declared to exist, this act shall be in full force and effect on and after its 18 passage and approval.
STATEMENT OF PURPOSE RS15619 This legislation would repeal and re-enact three existing sections of Idaho Code to establish a State Employee Compensation Philosophy and a State Compensation Plan, and to specify issues to be addressed in an Annual Survey, Report and Recommendation. A key component in all this is the compensation philosophy which provides that employees below the state's mid-point market average shall move through the pay range toward mid-point market average. This legislation would also amend current law as it relates to bonuses and employee suggestion awards, and authorizes a number of other pay delivery options to give agencies and institutions some flexibility to help facilitate retention and recruitment of employees. It amends the budget laws to allow employee suggestion awards to be paid from the area in which savings were realized. It codifies the payment of moving expenses. It amends current overtime laws to prohibit executive employees from earning compensatory time or earned administrative leave. It amends current vacation leave laws to increase the minimum vacation leave for professional and administrative employees from 12 to 15 days per year, and moves executive employees from 12 to 25 days per year. Finally, it authorizes the Joint Finance Appropriations Committee to limit the amount of personnel costs which can be transferred to cover operating expenses or capital outlay. FISCAL IMPACT Over the past ten years, base salary increase in the marketplace have averaged at least 3.7% annually, so to catch up and keep up with average market rates, funding for merit increases must average more than 3.7% per year. If the state were to spend 7.7% per year for five years or 5.7% per year over ten years, salaries would most likely be at market. The cost of these salary increases will grow each year as the salary base grows. Other components of this legislation (e.g. employee suggestion awards or reimbursement of moving expenses) would be paid from existing budgets. Programming changes necessary to implement this legislation would create a fiscal impact to the State Controller's Office. Contact Name: Sen. John Andreason Phone: 332-1333 Name: Rep. Robert Schaefer Phone: 332-1000 S 1309