2006 Legislation
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SENATE BILL NO. 1309 – State employee compensation plan

SENATE BILL NO. 1309

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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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN 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, 67-5309C and 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    the  junior community 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. Each junior community 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-
 33    scribed 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 granted a lump sum bonus an award not to exceed one five thou-
 40    sand dollars ($15,000)  in any given fiscal year  based  upon  an  affirmative
 41    certification of meritorious service. Exceptions to the one five thousand dol-
 42    lar  ($15,000)  limit provided in this section may be granted under extraordi-
 43    nary circumstances if approved in advance by  the  state  board  of  examiners
 44    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 an lump sum bonus award  not  to  exceed  one  five  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 the bonus award. Exceptions to
 55    the one five thousand dollar ($15,000) limit provided in this  subsection  may
                                                                        
                                           4
                                                                        
  1    be  granted in extraordinary circumstances if approved in advance by the state
  2    board of examiners appointing 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 sections 67-5334, 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 treated equally substantially 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 in section 67-5302, Idaho Code, who are designated as exempt
 51    under  any  other  complete  exemption in the federal law fair 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  allowed
  4    compensatory  time  off  from  duty  for overtime work. Such compensatory time
  5    shall be earned and allowed on a one (1) hour for one (1) hour  basis  not  to
  6    exceed  two  hundred  forty  (240) hours. Accrued compensatory time off earned
  7    under this section shall not be transferable, and shall be  forfeited  at  the
  8    time of transfer to another appointing authority or upon separation from state
  9    service. 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 in section 67-5302,  Idaho
 12    Code,  or  who  are designated as exempt under any other complete exemption in
 13    the federal law fair 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 in section
 24    67-5302, Idaho Code, who are not designated as exempt under any other complete
 25    exemption in the federal law  fair  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 ten per  cent  per-
  4    cent  (10%)  cumulative  change  from  the appropriated amount for any program
  5    affected by the transfer. Requests for transfers above ten  per  cent  percent
  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:
 23        1.(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
 28        2.(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
 32        3.(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
 40        4.(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 by section 67-5309C, Idaho Code rule.
 43        5.(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:
 32        1.(a)  An  individual  whose  primary  duty is management of a department,
 33        division or section; and
 34        2.(b)  Who customarily and regularly directs the work of at least two  (2)
 35        or more other employees therein; and
 36        3.(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
 39        4.(d)  Who customarily and regularly exercises discretionary powers; and
 40        5.(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 by section 67-5309C, Idaho Code rule.
 43        6.(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:
  4        1.(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
 13        2.(b)  The  employee  must  consistently exercise discretion and judgment;
 14        and
 15        3.(c)  The employee must do work that is  predominantly  intellectual  and
 16        varied, as distinguished from routine or mechanical duties; and
 17        4.(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 established in section 67-5309C, Idaho Code by rule.
 20        5.(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  providing  for  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  -- ELIGIBILITY STATE 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.
 20        67-5329.  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  in section 67-5302, Idaho Code, who are designated as
 31        exempt under any other complete exemption in the federal  law  fair  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  nonclassified
 35        employees  shall  be  allowed compensatory time off from duty for overtime
 36        work. Such compensatory time shall be earned and allowed on a one (1) hour
 37        for one (1) hour basis not  to  exceed  two  hundred  forty  (240)  hours.
 38        Accrued  compensatory  time  off  earned  under  this section shall not be
 39        transferable, and shall be forfeited at the time of  transfer  to  another
 40        appointing 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 in section 67-5302, Idaho Code,  or
 44        who  are  designated  as  exempt under any other complete exemption in the
 45        federal law fair 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 in section 67-5302, Idaho Code, who
  5        are not designated as exempt under any other  complete  exemption  in  the
  6        federal law fair 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.
 20        67-5330.  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 subsection 67-5329, Idaho Code (3) of this section.
 27        67-5331.  OVERTIME COMPENSATION -- WHEN PAID.
 28        (5)  Except  as provided for in subsection 67-5329, 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        subsection  67-5339,  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 subsection 67-5339, 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.
 16        67-5339.  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 by subsection (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  by  subsection  (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.
 41        67-5335.  VACATION  TIME -- ELIGIBILITY -- MAXIMUM TIME -- RIGHT TO ANNUAL
 42    VACATION.
 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.
 38        67-5337.  CASH FOR UNUSED VACATION TIME.
 39        (3)  Upon separation from state employment and to the  limits  allowed  by
 40    subsection  67-5335,  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 / Fiscal Impact


                      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