2006 Legislation
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SENATE BILL NO. 1363 – State employee compensation plan

SENATE BILL NO. 1363

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Bill Status



S1363aaH....................................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 other 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."
                                                                        
02/08    Senate intro - 1st rdg - to printing
02/09    Rpt prt - to Com/HuRes
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Brandt(Harper), Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Langhorst,
      Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Keough
    Floor Sponsors - Andreason, Stegner, McGee & Kelly
    Title apvd - to House
02/23    House intro - 1st rdg - to Com/HuRes
03/10    Rpt out - to Gen Ord
03/13    Rpt out amen - to 1st rdg as amen
03/14    1st rdg - to 2nd rdg as amen
03/15    2nd rdg - to 3rd rdg as amen
03/22    3rd rdg as amen - PASSED - 69-1-0
      AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Wood, Mr. Speaker
      NAYS -- Barrett
      Absent and excused -- None
    Floor Sponsors - Schaefer, Roberts & Garrett
    Title apvd - to Senate
03/24    Senate concurred in House amens - to engros
03/27    Rpt engros - 1st rdg - to 2nd rdg as amen
03/28    2nd rdg - to 3rd rdg as amen
03/29    3rd rdg as amen - PASSED - 35-0-0
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett(Clark),
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsors - Andreason, McGee & Kelly
    Title apvd - to enrol
03/30    Rpt enrol - Pres signed
03/31    Sp signed
04/03    To Governor
04/07    Governor signed
         Session Law Chapter 380
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1363
                                                                        
                         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 OTHER PAY TO CERTAIN NONCLASSIFIED OFFICERS  AND  EMPLOYEES
 16        AND  TO  REQUIRE  REPORTING OF SUCH AWARDS GRANTED IN THE PRECEDING FISCAL
 17        YEAR, TO PROVIDE FOR NONMERIT PAY AND TO REQUIRE REPORTING OF SUCH  AWARDS
 18        GRANTED  IN  THE PRECEDING FISCAL YEAR, TO PROVIDE CRITERIA FOR REIMBURSE-
 19        MENT OF MOVING EXPENSES, TO REQUIRE REPORTING OF ALL MOVING REIMBURSEMENTS
 20        GRANTED IN THE PRECEDING  FISCAL  YEAR  AND  TO  PROVIDE  THAT  THE  STATE
 21        CONTROLLER'S  OFFICE  IS RESPONSIBLE FOR THE ESTABLISHMENT AND MAINTENANCE
 22        OF SPECIFIC PAY CODES; AMENDING SECTION 59-1606, IDAHO CODE, TO DELETE  AN
 23        INCORRECT CODE REFERENCE; AMENDING SECTION 59-1607, IDAHO CODE, TO PROVIDE
 24        PROPER  TERMINOLOGY  AND  TO  CLARIFY COMPENSATORY TIME FOR CLASSIFIED AND
 25        NONCLASSIFIED EMPLOYEES WHO ARE DESIGNATED AS EXECUTIVE; AMENDING  SECTION
 26        67-3511,  IDAHO  CODE, TO PROVIDE AN EXCEPTION TO THE LIMITATION ON USE OF
 27        APPROPRIATIONS MADE FOR EXPENSES OTHER THAN PERSONNEL  COSTS,  TO  PROVIDE
 28        FOR  LIMITATIONS ON THE AMOUNT OF LEGISLATIVE APPROPRIATIONS FOR PERSONNEL
 29        COSTS WHICH CAN BE TRANSFERRED TO OTHER OBJECT CODES AND TO MAKE TECHNICAL
 30        CORRECTIONS; AMENDING SECTION 67-5302, IDAHO CODE, TO PROVIDE CORRECT REF-
 31        ERENCES, TO REFORMAT THE SECTION AND TO EXPAND THE DEFINITION OF "HOLIDAY"
 32        TO DISTINGUISH NONEXECUTIVE EMPLOYEES FROM EMPLOYEES CLASSIFIED AS  EXECU-
 33        TIVE  EXEMPT;  AMENDING SECTION 67-5309, IDAHO CODE, TO CLARIFY RULEMAKING
 34        AUTHORITY OF THE DIVISION OF HUMAN RESOURCES REGARDING  RULES  FOR  DISCI-
 35        PLINARY  DISMISSAL, DEMOTION, SUSPENSION OR OTHER DISCIPLINE FOR CAUSE AND
 36        FOR SHIFT DIFFERENTIAL PAY AND TO SPECIFY ADDITIONAL RULEMAKING AUTHORITY;
 37        REPEALING SECTION 67-5309A, IDAHO CODE, RELATING  TO  PERSONNEL  BENEFITS;
 38        AMENDING  CHAPTER  53, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
 39        TION 67-5309A, IDAHO CODE, TO PROVIDE A STATE EMPLOYEE  COMPENSATION  PHI-
 40        LOSOPHY;  REPEALING SECTION 67-5309B, IDAHO CODE, RELATING TO ESTABLISHING
 41        SALARIES; AMENDING CHAPTER 53, TITLE 67, IDAHO CODE, BY THE ADDITION OF  A
 42        NEW  SECTION  67-5309B,  IDAHO  CODE,  TO ESTABLISH THE IDAHO COMPENSATION
 43        PLAN; REPEALING SECTION 67-5309C, IDAHO CODE, RELATING TO PAY  GRADES  AND
 44        MERIT  INCREASES;  AMENDING CHAPTER 53, TITLE 67, IDAHO CODE, BY THE ADDI-
 45        TION OF A NEW SECTION 67-5309C,  IDAHO  CODE,  TO  PROVIDE  FOR  SPECIFIED
 46        ANNUAL  SURVEYS,  REPORTS  AND RECOMMENDATIONS; AMENDING CHAPTER 53, TITLE
                                                                        
                                           2
                                                                        
  1        67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-5309D, IDAHO CODE,  TO
  2        PROVIDE OTHER PAY DELIVERY OPTIONS; REPEALING SECTION 67-5326, IDAHO CODE,
  3        RELATING  TO  OVERTIME  AND  HOURS  OF  WORK;  AMENDING  SECTIONS 67-5328,
  4        67-5329, 67-5330 AND 67-5331, IDAHO CODE, TO PROVIDE STATE  OVERTIME  POL-
  5        ICY,  TO CLARIFY PROVISIONS RELATING TO CASH COMPENSATION AND COMPENSATORY
  6        TIME, TO REFORMAT SECTION 67-5328, IDAHO  CODE,  TO  REDESIGNATE  SECTIONS
  7        67-5329,  67-5330  AND 67-5331, IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY
  8        AND TO PROVIDE CORRECT CODE  REFERENCES;  AMENDING  SECTIONS  67-5333  AND
  9        67-5339,  IDAHO CODE, TO REFORMAT SECTION 67-5333, IDAHO CODE, TO REDESIG-
 10        NATE SECTION 67-5339, IDAHO CODE, AND TO PROVIDE CORRECT CODE  REFERENCES;
 11        AMENDING  SECTIONS  67-5334,  67-5335  AND 67-5337, IDAHO CODE, TO CLARIFY
 12        COMPUTATION OF VACATION TIME FOR CLASSIFIED OFFICERS AND EMPLOYEES ACCORD-
 13        ING TO THEIR DEFINITIONS UNDER THE FEDERAL FAIR LABOR  STANDARDS  ACT,  TO
 14        MAKE  TECHNICAL  CORRECTIONS, TO REFORMAT SECTION 67-5334, IDAHO CODE, AND
 15        TO REDESIGNATE SECTIONS 67-5335 AND 67-5337, IDAHO CODE; AMENDING  CHAPTER
 16        53,  TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-5337, IDAHO
 17        CODE, TO  PROVIDE  FOR  MOVING  EXPENSE  REIMBURSEMENT;  AMENDING  SECTION
 18        67-5342,  IDAHO  CODE, TO REDEFINE "SEVERANCE PAY"; AND DECLARING AN EMER-
 19        GENCY.
                                                                        
 20    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 21        SECTION 1.  That Section 33-2101A, Idaho Code, be, and the same is  hereby
 22    amended to read as follows:
                                                                        
 23        33-2101A.  JUNIOR  COLLEGE  SHALL  MEAN COMMUNITY COLLEGE. Notwithstanding
 24    any other provision of  law,  in  sections  21-805,  21-806,  21-809,  23-404,
 25    31-808,  33-101,  33-107, 33-107B, 33-601, 33-1252, 33-2101, 33-2102, 33-2103,
 26    33-2104, 33-2105, 33-2106, 33-2107,  33-2107A,  33-2107B,  33-2107C,  33-2108,
 27    33-2109A,  33-2110,  33-2110A,  33-2110B,  33-2111, 33-2112, 33-2113, 33-2114,
 28    33-2115,  33-2116,  33-2117,  33-2118,  33-2119,  33-2121,  33-2122,  33-2123,
 29    33-2124,  33-2125,  33-2126,  33-2130,  33-2135,  33-2137,  33-2138,  33-2139,
 30    33-2141,  33-2142,  33-2143,  33-2144,  33-2211,  33-3716,  33-3717,  33-4001,
 31    33-4003,  33-4004,  33-4006,  33-4201,  33-4306,  33-4315,  46-314,   50-1721,
 32    57-1105A,  59-1324,  59-1371, 59-1374, 67-2320, 67-2322, 67-5309C and 67-5332,
 33    Idaho Code, the term "junior college" shall  mean  and  shall  be  denoted  as
 34    "community college."
                                                                        
 35        SECTION  2.  That Section 33-2109A, Idaho Code, be, and the same is hereby
 36    amended to read as follows:
                                                                        
 37        33-2109A.  USE OF UNUSED SICK LEAVE. Upon separation from employment  with
 38    the  junior community college district by retirement, in accordance with chap-
 39    ter 13, title 59, Idaho Code, or with chapter 1,  title  33,  Idaho  Code,  an
 40    employee shall be accorded credit for unused sick leave as provided in section
 41    67-53393,  Idaho Code. Each junior community college district shall contribute
 42    to the sick leave account for the purposes of this  section,  as  provided  in
 43    subsection (32)(c) of section 67-53393, Idaho Code.
                                                                        
 44        SECTION  3.  That  Section 59-1603, Idaho Code, be, and the same is hereby
 45    amended to read as follows:
                                                                        
 46        59-1603.  CONFORMITY WITH CLASSIFIED POSITIONS. (1) To the  extent  possi-
 47    ble,  each  nonclassified  position in the executive department will be paid a
 48    salary or wage comparable to classified positions with similar duties, respon-
                                                                        
                                           3
                                                                        
  1    sibilities, training, experience and other qualifications. Temporary employees
  2    and agricultural inspectors referred to in subsections (n) and (p) of  section
  3    67-5303,  Idaho Code, shall not be entitled to sick leave accruals provided in
  4    section 59-1605, Idaho Code, vacation leave provided in section 59-1606, Idaho
  5    Code, nor holiday pay defined in subsection (15)  of  section  67-5302,  Idaho
  6    Code,  unless  contributions  are being made to the public employee retirement
  7    system in accordance with chapter  13, title 59, Idaho Code, and rules promul-
  8    gated by the retirement board. Vacation and sick leave accruals, but not holi-
  9    day pay, shall be awarded  retroactively,  if  necessary,  to  the  date  such
 10    employees become eligible for retirement system membership.
 11        (2)  To  the  extent possible, each nonclassified position in the legisla-
 12    tive department will be paid a salary or wage comparable to  classified  posi-
 13    tions  with  similar  duties, responsibilities, training, experience and other
 14    qualifications.
 15        (3)  The supreme court shall determine the schedules of salary and compen-
 16    sation for all officers and employees of the judicial department which are not
 17    otherwise fixed by law. To the extent possible, the supreme court shall  adopt
 18    schedules  which  are compatible with the state's accounting system. The judi-
 19    cial department may also maintain personnel records and files under such  sys-
 20    tem as is ordered by the supreme court.
 21        (4)  The  state board of education shall determine the schedules of salary
 22    and compensation, and prescribe policies for overtime  and  compensatory  time
 23    off  from duty, for all officers and employees of the state board of education
 24    who are not subject to the provisions of chapter 53, title 67, Idaho Code, and
 25    which are not otherwise fixed by law. To the extent possible, the state  board
 26    of  education shall adopt schedules and policies which are compatible with the
 27    state's accounting system. The state board of education may also maintain per-
 28    sonnel records and files under a system of its own, if approved by  the  state
 29    controller.
 30        (5)  Members  of  the legislature, the lieutenant governor, other officers
 31    whose salaries are fixed by law, and members of part-time boards,  commissions
 32    and committees shall be paid according to law.
 33        (6)  Any  schedule  of  salary  and compensation, if not the schedule pre-
 34    scribed by section 67-5309C(a), Idaho Code, must be approved by the appointing
 35    authority and be communicated to the state  controller  in  writing  at  least
 36    thirty (30) days in advance of the effective date of the schedule.
 37        (7)  In addition to salary increases provided by any compensation schedule
 38    adopted  pursuant to paragraph (6) of this section, nonclassified officers and
 39    employees, except those who are elected officials or whose salaries are  fixed
 40    by  law, may be granted a lump sum bonus an award not to exceed one five thou-
 41    sand dollars ($15,000)  in any given fiscal year  based  upon  an  affirmative
 42    certification of meritorious service. Exceptions to the one five thousand dol-
 43    lar  ($15,000)  limit provided in this section may be granted under extraordi-
 44    nary circumstances if approved in advance by  the  state  board  of  examiners
 45    appointing  authority.  Appointing  authorities  shall  submit a report to the
 46    division of financial management and the legislative services office by  Octo-
 47    ber 1 on all awards granted in the preceding fiscal year.
 48        (8)  In  addition  to salary increases provided by any compensation sched-
 49    ule, nonclassified officers and employees  holding  permanent  status,  except
 50    those  who  are  elected  officials or whose salaries are fixed by law, may be
 51    granted an lump sum bonus award  not  to  exceed  one  five  thousand  dollars
 52    ($15,000)  in  any given fiscal year based upon suggestions or recommendations
 53    made by the employee which resulted in taxpayer savings as a  result  of  cost
 54    savings or greater efficiencies to the department, office or institution or to
 55    the  state  of Idaho in excess of the amount of the bonus award. Exceptions to
                                                                        
                                           4
                                                                        
  1    the one five thousand dollar ($15,000) limit provided in this  subsection  may
  2    be  granted in extraordinary circumstances if approved in advance by the state
  3    board of examiners appointing authority. The  appointing  authority  shall  as
  4    near as practicable utilize the criteria in conformance with rules promulgated
  5    by  the  division of human resources pursuant to section 67-5309D, Idaho Code.
  6    Appointing authorities shall submit a report to the division of financial man-
  7    agement and the legislative services office by October 1 on all employee  sug-
  8    gestion awards granted in the preceding fiscal year. Such report shall include
  9    any  changes  made  as a direct result of an employee's suggestion and savings
 10    resulting therefrom.
 11        (9)  Each appointing authority, including  the  elective  offices  in  the
 12    executive department, the legislative department, the judicial department, and
 13    the  state  board of education and the board of regents, shall comply with all
 14    reporting requirements necessary to produce the  list  of  employee  positions
 15    prescribed by section 67-3519, Idaho Code.
 16        (10) The  adjutant  general, with the approval of the governor, shall pre-
 17    scribe personnel policies for all officers and employees of the national guard
 18    which are not otherwise fixed by law. Such policies will include  an  employee
 19    grievance  procedure with appeal to the adjutant general. The adjutant general
 20    shall determine schedules of salary and compensation which are, to the  extent
 21    possible, comparable to the schedules used for federal civil service employees
 22    of  the  national guard and those employees serving in military status. Sched-
 23    ules adopted shall be compatible with the state's  accounting  system  to  the
 24    extent possible.
 25        (11) In  addition  to salary increases provided by any compensation sched-
 26    ule, nonclassified officers and employees, except those who are elected  offi-
 27    cials  or  whose  salaries  are  fixed  by  law,  may be granted award pay for
 28    recruitment or retention purposes based upon affirmative certification of mer-
 29    itorious service after completion of at  least  six  (6)  months  of  service.
 30    Appointing authorities shall submit a report to the division of financial man-
 31    agement  and  the  legislative services office by October 1 on all such awards
 32    granted in the preceding fiscal year.
 33        (12) In addition to salary increases provided by any  compensation  sched-
 34    ule,  nonclassified officers and employees, except those who are elected offi-
 35    cials or whose salaries are fixed by law, may be granted other pay as provided
 36    in this subsection. Appointing authorities shall submit a report to the  divi-
 37    sion  of financial management and the legislative services office by October 1
 38    on all such awards 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, when a distribution has been  approved  for
 45    classified employees pursuant to section 67-5309D, Idaho Code, each appointing
 46    authority,  including the elective offices in the executive branch, the legis-
 47    lative branch, the judicial branch, and the state board of education  and  the
 48    board of regents of the university of Idaho, may grant nonclassified employees
 49    nonmerit  pay  in  the  same proportion as received by classified employees in
 50    that department or institution. Appointing authorities shall submit  a  report
 51    to the division of financial management and the legislative services office by
 52    October 1 on all such awards granted in the preceding fiscal year.
 53        (14) Each  appointing  authority,  shall as nearly as practicable, utilize
 54    the criteria for reimbursement of moving expenses in conformance with  section
 55    67-5337,  Idaho Code, and rules promulgated by the division of human resources
                                                                        
                                           5
                                                                        
  1    pursuant thereto. Appointing authorities shall submit a report to the division
  2    of financial management and the legislative services office by  October  1  on
  3    all moving reimbursements granted in the preceding fiscal year.
  4        (15) Specific  pay  codes shall be established and maintained in the state
  5    controller's office to ensure accurate reporting and  monitoring  of  all  pay
  6    actions authorized in this section.
                                                                        
  7        SECTION  4.  That  Section 59-1606, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        59-1606.  VACATION TIME. (1) Eligible nonclassified officers and employees
 10    in the executive department and in the  legislative  department  shall  accrue
 11    vacation  leave  and  take  vacation leave at the same rate and under the same
 12    conditions as is provided in sections 67-5334, and 67-5335,  Idaho  Code,  for
 13    classified officers and employees.
 14        (a)  The  state  board  of  examiners  shall  adopt comparative tables and
 15        charts to compute vacation time  on  daily,  weekly,  bi-weekly,  calendar
 16        month and annual periods.
 17        (2)  Eligible nonclassified officers and employees in the judicial depart-
 18    ment shall accrue vacation leave as determined by order of the supreme court.
 19        Leave  policies  established  by the supreme court must be communicated to
 20    the state controller in writing at least one  hundred  eighty  (180)  days  in
 21    advance of the effective date of the policies.
 22        (3)  The state board of education shall determine the vacation leave poli-
 23    cies  for  all  officers and employees of the state board of education who are
 24    not subject to the provisions of chapter 53, title  67,  Idaho  Code.  To  the
 25    extent  possible,  the state board of education shall adopt policies which are
 26    compatible with the state's accounting system.
 27        Any policy and procedures determined by the state board of education  must
 28    be communicated to the state controller in writing at least one hundred eighty
 29    (180) days in advance of the effective date of the policy and procedures.
                                                                        
 30        SECTION  5.  That  Section 59-1607, Idaho Code, be, and the same is hereby
 31    amended to read as follows:
                                                                        
 32        59-1607.  HOURS OF WORK -- OVERTIME. (1) It is the policy of the  legisla-
 33    ture  of the state of Idaho that all classified and nonclassified officers and
 34    employees of state government shall be treated equally  substantially  similar
 35    with  reference to hours of employment, holidays and vacation leave, except as
 36    provided in this chapter. The policy of this  state  shall  not  restrict  the
 37    extension  of regular work hour schedules on an overtime basis, which shall be
 38    the same for classified and nonclassified employees, in those  activities  and
 39    duties  where  such  extension  is  necessary and authorized by the appointing
 40    authority.
 41        (2)  The appointing authority of any department shall determine the neces-
 42    sity for overtime work and shall provide for cash compensation or compensatory
 43    time off for such overtime work  for  eligible  classified  and  nonclassified
 44    officers and employees.
 45        (3)  Classified  and  nonclassified officers and employees who fall within
 46    one (1) or more of the following categories are ineligible for cash  compensa-
 47    tion or compensatory time for overtime work:
 48        (a)  Elected officials; or
 49        (b)  Those included in the definition of section 67-5303(j), Idaho Code.
 50        (4)  Classified  and  nonclassified employees who are designated as execu-
 51    tive, as provided in section 67-5302, Idaho Code, who are designated as exempt
                                                                        
                                           6
                                                                        
  1    under any other complete exemption in the federal  law  fair  labor  standards
  2    act, and who are not included in the definition of subsection (3) of this sec-
  3    tion, shall be ineligible for compensatory time or cash compensation for over-
  4    time  work,  but  such classified and nonclassified employees shall be allowed
  5    compensatory time off from duty for  overtime  work.  Such  compensatory  time
  6    shall  be  earned  and allowed on a one (1) hour for one (1) hour basis not to
  7    exceed two hundred forty (240) hours. Accrued  compensatory  time  off  earned
  8    under  this  section  shall not be transferable, and shall be forfeited at the
  9    time of transfer to another appointing authority or upon separation from state
 10    service. Unused compensatory time balances in  excess  of  two  hundred  forty
 11    (240)  hours  as  of  the  date of enactment of this act shall be forfeited on
 12    December 31, 2008. Unused compensatory time  balances  of  two  hundred  forty
 13    (240) hours or less shall be forfeited on December 31, 2006.
 14        (5)  Classified  and  nonclassified  officers and employees who are desig-
 15    nated as administrative or professional as provided in section 67-5302,  Idaho
 16    Code,  or  who  are designated as exempt under any other complete exemption in
 17    the federal law fair labor standards act, and who are not included in the def-
 18    inition of subsection (3) of this section, shall be ineligible for  cash  com-
 19    pensation  for  overtime  work  unless cash payment is authorized by the state
 20    board of examiners for overtime accumulated during unusual or emergency situa-
 21    tions, but such classified and nonclassified officers and employees  shall  be
 22    allowed  compensatory  time off from duty for overtime work. Such compensatory
 23    time shall be earned and allowed on a one (1) hour for  one  (1)  hour  basis,
 24    shall  not  be transferable, and shall be forfeited at the time of transfer to
 25    another appointing authority or upon separation from state service.
 26        (6)  Classified and nonclassified officers and employees who are not  des-
 27    ignated  as  executive,  administrative or professional as provided in section
 28    67-5302, Idaho Code, who are not designated as exempt under any other complete
 29    exemption in the federal law  fair  labor  standards  act,  and  who  are  not
 30    included  in the definition of subsection (3) of this section, shall be eligi-
 31    ble for cash compensation or compensatory time  off  from  duty  for  overtime
 32    work, subject to the restrictions of applicable federal law. Compensatory time
 33    off  may  be  provided  in  lieu of cash compensation at the discretion of the
 34    appointing authority after consultation, in advance, with the  employee.  Com-
 35    pensatory time off shall be paid at the rate of one and one-half (1 1/2) hours
 36    for  each  overtime  hour  worked. Compensatory time off which has been earned
 37    during any one-half (1/2) fiscal year but not taken by the end of the succeed-
 38    ing one-half (1/2) fiscal year, shall be paid in cash  on  the  first  payroll
 39    following  the  close of such succeeding one-half (1/2) fiscal year. Compensa-
 40    tory time not taken at the time of transfer to another appointing authority or
 41    upon separation from state service shall be liquidated at  the  time  of  such
 42    transfer or separation by payment in cash.
                                                                        
 43        SECTION  6.  That  Section 67-3511, Idaho Code, be, and the same is hereby
 44    amended to read as follows:
                                                                        
 45        67-3511.  TRANSFER OF LEGISLATIVE APPROPRIATIONS.  (1)  No  appropriations
 46    made  by  the  Idaho  legislature  may  be transferred from one object code to
 47    another except with the consent of the state board of examiners upon  applica-
 48    tion  duly  made  by  the head of any department, office or institution of the
 49    state (including the elected officers in  the  executive  department  and  the
 50    state  board of education). No appropriation made for expenses other than per-
 51    sonnel costs shall be expended for personnel costs of the  particular  depart-
 52    ment,  office  or  institution for which it is appropriated, provided however,
 53    that  employee  suggestion  awards  made  pursuant  to  sections  59-1603  and
                                                                        
                                           7
                                                                        
  1    67-5309D, Idaho Code, may be made from the object code in  which  the  savings
  2    were realized.
  3        (2)  Legislative  appropriations  may  be  transferred from one program to
  4    another within an agency upon application duly made by the head of any depart-
  5    ment, office or institution of the state and approval of  the  application  by
  6    the  administrator  of  the  division of financial management and the board of
  7    examiners provided the requested transfer is not more than ten per  cent  per-
  8    cent  (10%)  cumulative  change  from  the appropriated amount for any program
  9    affected by the transfer. Requests for transfers above ten  per  cent  percent
 10    (10%)  cumulative change must, in addition to the above, be approved by legis-
 11    lative appropriation. Legislative appropriations shall not be transferred from
 12    one fund to another fund unless expressly approved by the legislature.
 13        (3)  All moneys appropriated to any agency of the state of Idaho  for  the
 14    purpose of capital outlay shall be used for that purpose and not for any other
 15    purpose.
 16        (4)  The  joint  finance-appropriations  committee may limit the amount of
 17    legislative appropriations for personnel costs which  can  be  transferred  to
 18    other object codes.
                                                                        
 19        SECTION  7.  That  Section 67-5302, Idaho Code, be, and the same is hereby
 20    amended to read as follows:
                                                                        
 21        67-5302.  DEFINITIONS. As used in this chapter, and other applicable  sec-
 22    tions  of the Idaho Code, each of the terms defined in this section shall have
 23    the meaning given in this  section  unless  a  different  meaning  is  clearly
 24    required by the context. Such terms and their definitions are:
 25        (1)  "Administrative  employee" means any person, nonclassified or classi-
 26    fied appointed to a position which meets the following criteria:
 27        1.(a)  (ai)   Responsible office or nonmanual work directly related to the
 28             management policies of a department or section; or
 29             (bii)  Responsible work that is directly related to academic instruc-
 30             tion or training carried on in the administration of a school  system
 31             or educational establishment; and
 32        2.(b)  The employee must customarily and regularly exercise discretion and
 33        independent  judgment,  as  distinguished  from using skills and following
 34        procedures. The employee must have the authority to make  important  deci-
 35        sions; and
 36        3.(c)  The employee must:
 37             (ai)  Regularly  assist  a  bona  fide  executive  or  administrative
 38             employee; or
 39             (bii)  Perform  work  under  general supervision along specialized or
 40             technical lines requiring special training, experience or  knowledge;
 41             or
 42             (ciii)  Execute  under  only general supervision special assignments;
 43             and
 44        4.(d)  The employee is classified to a position allocated to the pay grade
 45        equivalent to two hundred sixty (260) points or  higher  pursuant  to  the
 46        rating system established by section 67-5309C, Idaho Code rule.
 47        5.(e)  Final  designation  of  a  classified  position as "administrative"
 48        within this definition shall be made by the administrator of the  division
 49        of human resources.
 50        (2)  "Administrator"  means  the  administrator  of  the division of human
 51    resources in the governor's office.
 52        (3)  "Appointing authority" means the officer, board,  commission,  person
 53    or  group  of persons authorized by statute or lawfully delegated authority to
                                                                        
                                           8
                                                                        
  1    make appointments to or employ personnel in any department.
  2        (4)  "Class" means a group of positions  sufficiently similar  as  to  the
  3    duties  performed,  degree  of  supervision  exercised  or  required,  minimum
  4    requirements of training, experience or skill, and other characteristics, that
  5    the  same  title, the same tests of fitness and the same schedule of compensa-
  6    tion may be applied to each position in the group.
  7        (5)  "Classified officer or employee" means any  person  appointed  to  or
  8    holding  a  position in any department of the state of Idaho which position is
  9    subject to the provisions  of the  merit  examination,  selection,  retention,
 10    promotion and dismissal requirements of chapter 53, title 67, Idaho Code.
 11        (6)  "Commission" means the Idaho personnel commission.
 12        (7)  "Compensatory  time"  means  approved  time off from duty provided in
 13    compensation for overtime hours worked.
 14        (8)  "Department" means any department, agency, institution or  office  of
 15    the state of Idaho.
 16        (9)  "Disabled  veteran"  means  an  individual who has served on military
 17    duty in the armed forces of the United States during any period of war  recog-
 18    nized  by the United States department of veterans affairs for the purposes of
 19    awarding federal veterans benefits as may be defined in title 38,  U.S.  code,
 20    chapter  1,  section  101(11),  or during any other conflict recognized by the
 21    award of a campaign or service medal of the United States; and has been  sepa-
 22    rated  therefrom  under  honorable conditions; and has established the present
 23    existence of a service-connected disability; and  is  receiving  compensation,
 24    disability  retirement benefits, or pension under a public statute as adminis-
 25    tered by the department of veterans affairs or a military department.
 26        (10) "Earned administrative leave" means hours which exceed the  regularly
 27    scheduled  hours  but  do not result in overtime. These hours may accrue after
 28    hours worked and hours on paid leave exceed forty (40) hours in one  (1)  work
 29    week.
 30        (11) "Eligible" means a person who has been determined to be qualified for
 31    a classified position and whose name has been placed on the register of eligi-
 32    bles.
 33        (12) "Executive  employee"  means any person, nonclassified or classified,
 34    appointed to a position equivalent to a bureau chief or above as  provided  in
 35    section 67-2402, Idaho Code, or any employee meeting the following criteria:
 36        1.(a)  An  individual  whose  primary  duty is management of a department,
 37        division or section; and
 38        2.(b)  Who customarily and regularly directs the work of at least two  (2)
 39        or more other employees therein; and
 40        3.(c)  Who  has the authority to hire and fire, or to recommend hiring and
 41        firing; or whose recommendation  on  these  and  other  actions  affecting
 42        employees is given particular weight; and
 43        4.(d)  Who customarily and regularly exercises discretionary powers; and
 44        5.(e)  Who  is classified to a position allocated to the pay grade equiva-
 45        lent to two hundred sixty (260) points or higher pursuant  to  the  rating
 46        system established by section 67-5309C, Idaho Code rule.
 47        6.(f)  Final  designation  of a classified position as "executive" in this
 48        definition shall be made by the administrator.
 49        (13) "Exempt employee" means any employee,  classified  or  nonclassified,
 50    who  is determined to be an executive, professional or administrative employee
 51    as defined herein, or who qualifies for any other exemption from cash  compen-
 52    sation for overtime under applicable federal law. Final designation of a clas-
 53    sified position as exempt shall be made by the administrator.
 54        (14) "Full-time  employee"  means  any  employee working a forty (40) hour
 55    work week.
                                                                        
                                           9
                                                                        
  1        (15) "Holiday" means the following:
  2             January 1 (New Year's Day);
  3             Third Monday in January (Martin Luther King, Jr.-Idaho  Human  Rights
  4             Day);
  5             Third Monday in February (Washington's Birthday);
  6             Last Monday in May (Memorial Day);
  7             July 4 (Independence Day);
  8             First Monday in September (Labor Day);
  9             Second Monday in October (Columbus Day);
 10             November 11 (Veterans Day);
 11             Fourth Thursday in November (Thanksgiving);
 12             December 25 (Christmas).
 13    In addition, the term "holiday" shall mean any day so designated by the Presi-
 14    dent  of  the  United  States or the governor of this state for a public fast,
 15    thanksgiving or holiday.
 16        In the event that a holiday occurs on a  Saturday,  the  preceding  Friday
 17    shall be a holiday, and if the holiday falls on a Sunday, the following Monday
 18    shall be a holiday.
 19        A  holiday is a day of exemption from work granted to nonexecutive employ-
 20    ees during which said employees shall  be  compensated  as  if  they  actually
 21    worked. Employees classified as executive exempt are entitled to ten (10) paid
 22    holidays  per year. If such an employee works on one (1) of the official holi-
 23    days listed in this subsection, then such employee may take an alternative day
 24    off but shall not receive additional compensation.
 25        (16) "Hours worked" means those hours actually spent in the performance of
 26    the employee's job on any day including holidays, and shall not include  vaca-
 27    tion or sick leave or other approved leave of absence.
 28        (17) "Nonclassified  employee"  means any person appointed to or holding a
 29    position in any department of the state of Idaho, which position  is  exempted
 30    from  the  provisions  of chapter 53, title 67, Idaho Code, as provided for in
 31    section 67-5303, Idaho Code.
 32        (18) "Normal work week" means any forty (40) hours worked during a partic-
 33    ular one hundred sixty-eight (168) hour period as  previously  established  by
 34    the employee's appointing authority.
 35        (19) "Open  competitive  examination"  means  an  examination which may be
 36    taken by qualified applicants to compete on an equal basis for listing on  the
 37    register of eligibles.
 38        (20) "Overtime  work"  means  time  worked  on holidays and time worked in
 39    excess of forty (40) hours in a period of one hundred sixty-eight  (168)  con-
 40    secutive  hours,  except  that  in  the case of those employees engaged in law
 41    enforcement, correctional and  fire  protection  activities  characterized  by
 42    irregular  shift  work  schedules,  time worked in excess of one hundred sixty
 43    (160) hours in a period of twenty-eight (28) consecutive days shall constitute
 44    overtime work within the meaning of this chapter.
 45        (21) "Participating department" means any department of the state of Idaho
 46    which employs persons in classified positions subject to  the  merit  examina-
 47    tion, selection, retention, promotion and dismissal requirements of this chap-
 48    ter.
 49        (22) "Part-time  employee" means any employee whose usually scheduled work
 50    is less than forty (40) hours in a period of  one  hundred  sixty-eight  (168)
 51    consecutive hours.
 52        (23) "Personnel system" means the procedure for administering employees in
 53    accordance with this chapter.
 54        (24) "Political  office" means a public office for which partisan politics
 55    is a basis for nomination, election or appointment.
                                                                        
                                           10
                                                                        
  1        (25) "Political organization" means a party which sponsors candidates  for
  2    election to political office.
  3        (26) "Position"  means  a  group  of  duties  and responsibilities legally
  4    assigned  or delegated by one (1) or more appointing authorities and requiring
  5    the employment of one (1) person.
  6        (27) "Professional employee" means any person,  nonclassified  or  classi-
  7    fied, appointed to a position which meets the following criteria:
  8        1.(a)  The employee's primary duty must be either:
  9             (ai)   Work  requiring  knowledge  of  an advanced type in a field of
 10             science or learning, customarily obtained by a  prolonged  course  of
 11             specialized instruction and study; or
 12             (bii)  Work  that  is  original and creative in character in a recog-
 13             nized field of artistic endeavor and the result of which depends pri-
 14             marily on his invention, imagination, or talent; or
 15             (ciii) Work as a teacher certified or recognized as such in a  school
 16             system or educational institution by which he is employed; and
 17        2.(b)  The  employee  must  consistently exercise discretion and judgment;
 18        and
 19        3.(c)  The employee must do work that is  predominantly  intellectual  and
 20        varied, as distinguished from routine or mechanical duties; and
 21        4.(d)  The employee is classified to a position allocated to the pay grade
 22        equivalent  to  two  hundred  sixty (260) points or higher pursuant to the
 23        rating system established in section 67-5309C, Idaho Code by rule.
 24        5.(e)  Final designation of a classified position as "professional" within
 25        this definition shall be made by the administrator.
 26        (28) "Provisional appointment" means appointment to a classified  position
 27    pending the establishment of a register for such position and employment shall
 28    not  be continued in this status longer than thirty (30) days after establish-
 29    ment of a register.
 30        (29) "Qualifying examination" means an examination or evaluation given  to
 31    a selected person to determine eligibility for reclassification or appointment
 32    to a position in a classification.
 33        (30) "Register"  means a list of names of persons who have been determined
 34    to be eligible for employment in a classified position as  determined  on  the
 35    basis of examination and merit factors as established by the administrator.
 36        (31) "Seasonal  appointment"  means  an appointment to a position which is
 37    permanent in nature, but which has intermittent work  periods  throughout  the
 38    year.
 39        (32) "Service  rating" means a recorded evaluation of work performance and
 40    promotional potential of an employee by his supervisor.
 41        (33) "Temporary appointment" means appointment to a position which is  not
 42    permanent  in  nature,  and  in  which employment will not exceed one thousand
 43    three hundred eighty-five (1,385) hours during any twelve (12)  month  period.
 44    No  person  holding a temporary appointment may work in excess of one thousand
 45    three hundred eighty-five (1,385) hours during a twelve (12) month  period  of
 46    time  for  any  one  (1)  department,  except  upon petition by the appointing
 47    authority of the department of lands that demonstrates good cause, the  admin-
 48    istrator of the division of human resources  may extend the one thousand three
 49    hundred eighty-five (1,385) hour limit for employees of the department who are
 50    required to perform fire suppression activities.
 51        (34) "Vacation  leave"  means  a  period of exemption from work granted to
 52    employees during which time said employees  shall  be  compensated.  The  term
 53    shall not include compensatory time for overtime work.
 54        (35) "Veteran"  means  any  person who has served in the active service of
 55    the armed forces of the United States during any period of war  recognized  by
                                                                        
                                           11
                                                                        
  1    the  United States  department of veterans affairs for the purpose of awarding
  2    federal veterans benefits as may be defined in title 38, U.S. code, chapter 1,
  3    section  101(11), or during any other conflict recognized by the  award  of  a
  4    campaign  or  service  medal of the United States, and who has been discharged
  5    under other than dishonorable conditions.
                                                                        
  6        SECTION 8.  That Section 67-5309, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
                                                                        
  8        67-5309.  RULES  OF THE DIVISION OF HUMAN RESOURCES AND THE PERSONNEL COM-
  9    MISSION. The administrator of the division of human resources shall  have  the
 10    power and authority to adopt, amend, or rescind such rules as may be necessary
 11    for proper administration of this chapter. Such rules shall include:
 12        (a)  A  rule  requiring  the  administrator,  after  consulting  with each
 13    department to develop, adopt, and make effective, a job classification  system
 14    for  positions  covered  by this chapter, based upon an analysis of the duties
 15    and responsibilities of the positions. The job classification shall include an
 16    appropriate title for each class, and a description of duties and responsibil-
 17    ities of positions in the classes and the requirements  of  minimum  training,
 18    experience and other qualifications, suitable for the performance of duties of
 19    the position.
 20        (b)  A  rule describing the relevant labor markets and benchmark job clas-
 21    sifications used in the administrator's salary surveys.
 22        (c)  A rule requiring that all classes of positions which  are  common  to
 23    the departments concerned shall have the same titles, minimum requirements and
 24    compensation ranges.
 25        (d)  A  rule  providing  for  review by the administrator of the personnel
 26    system including classifications and compensation policies and procedures.
 27        (e)  A rule that, notwithstanding the procedure for examination and  rank-
 28    ing  of eligibles on a register provided in subsection (f) of this section, an
 29    agency may appoint an individual directly into an entrance or promotional pro-
 30    bation if the division of vocational rehabilitation, Idaho commission for  the
 31    blind  and  visually impaired or the industrial commission certifies, with the
 32    concurrence of division of human resources staff, that the individual (1)  has
 33    a  disability or handicap as defined under state or federal law; (2) is quali-
 34    fied to perform the essential functions of a  particular  classified  position
 35    with or without reasonable accommodation; and (3) lacks competitiveness in the
 36    examination process due to the disability or handicap. The probationary period
 37    as  provided  in  subsection (j) of this section shall be the sole examination
 38    for such individuals.
 39        (f)  A rule requiring fair and impartial selection of  appointees  to  all
 40    positions  other  than  those defined as nonclassified in this chapter, on the
 41    basis of open competitive merit examinations or  evaluations.  An  application
 42    for  an examination will be accepted after the closing date of the examination
 43    from a person who was serving in the armed forces, or undergoing  hospitaliza-
 44    tion  of  no  more than one (1) year following discharge, during any period in
 45    which the examination was open; the application must be submitted  within  one
 46    hundred  twenty (120) days of separation from the armed forces or hospitaliza-
 47    tion and prior to the expiration of the register established as  a  result  of
 48    the  examination.  A  disabled veteran may file an application at any time for
 49    any position for which the division maintains a register or for which a regis-
 50    ter is about to be established, provided he or she has not already been  exam-
 51    ined twice for the same position and grade for which application is made, does
 52    not have current eligibility on that  register, or is not serving in a compet-
 53    itive  position  in the same grade for which application is made. Examinations
                                                                        
                                           12
                                                                        
  1    may be assembled or unassembled and may include various  examining  techniques
  2    such  as  rating  of  training and experience, written tests, oral interviews,
  3    recognition of professional licensing, performance tests,  investigations  and
  4    any  other  measure of ability to perform the duties of the position. Examina-
  5    tions shall be scored objectively. Five (5)  points  shall  be  added  to  the
  6    earned rating of any war veteran as defined in section 65-506, Idaho Code, and
  7    the  widow  or  widower of any war veteran as defined in section 65-506, Idaho
  8    Code, as long as he or she remains  unmarried.  Pursuant  to  section  65-506,
  9    Idaho  Code,  ten  (10) points shall be added to the earned rating of any dis-
 10    abled veteran, the widow or widower of any disabled veteran as long as  he  or
 11    she  remains unmarried or the spouse of any disabled veteran who is physically
 12    unable to perform the work in the position to which the spouse seeks to  apply
 13    the  preference.  Employment  registers shall be established in order of final
 14    score except that the names of all five (5) point preference eligibles result-
 15    ing from any merit system or civil service examination shall be placed on  the
 16    register  in  accordance with their augmented rating, and the names of all ten
 17    (10) point preference eligibles shall be placed at the  top  of  the  register
 18    above  the  names of all nonpreference eligibles. Certification of eligibility
 19    for appointment to vacancies shall be in accordance with a formula which  lim-
 20    its  selection  by  the  hiring department from among the ten (10) top ranking
 21    available eligibles plus the names of all individuals with scores identical to
 22    the tenth ranking eligible on the register. A register with at least five  (5)
 23    eligibles  shall  be adequate. Selective certification shall be permitted when
 24    justified by the hiring department, under rules to be  made  by  the  division
 25    defining  adequate  justification  based on the duties and requirements of the
 26    positions. Such examinations need not be held until after the rules have  been
 27    adopted,  the service classified and a pay plan established, but shall be held
 28    not later than one (1) year after departments commence  participation  in  the
 29    personnel system.
 30        (g)  A rule that, whenever practicable, a vacancy in a classified position
 31    shall  be  filled  by  the  promotion of a qualified permanent employee of the
 32    agency in which the vacancy occurs. An interagency  promotion  shall  be  made
 33    through  competitive  examination and all qualified state employees shall have
 34    the opportunity to compete for such promotions. If an employee's name  appears
 35    within certifiable range on a current register for a higher class of position,
 36    he shall be eligible for a transfer and promotion.
 37        (h)  A rule for development and maintenance of a system of service ratings
 38    and  the use of such ratings by all departments in connection with promotions,
 39    demotions, retentions, separations and reassignments. The rule  shall  require
 40    that  an  evaluation  of each classified employee shall be made after each two
 41    thousand eighty (2,080) hour period of credited state service, and that a copy
 42    of the evaluation shall be filed with the division.
 43        (i)  A rule prohibiting disqualification of  any  person  from  taking  an
 44    examination, from appointment to a position, from promotion, or from holding a
 45    position  because  of  race  or national origin, color, sex, age, political or
 46    religious opinions or affiliations, and providing for right of appeal.
 47        (j)  A rule establishing a probation period not  to  exceed  one  thousand
 48    forty  (1,040) hours of credited state service for all appointments and promo-
 49    tions, except that peace officers as defined in section 19-5101,  Idaho  Code,
 50    shall be subject to a probation period of two thousand eighty (2,080) hours of
 51    credited  state  service,  and  for  the  appointing  authority to provide the
 52    employee and the administrator a performance evaluation  indicating  satisfac-
 53    tory  or  unsatisfactory performance not later than thirty (30) days after the
 54    expiration of the probationary  period. The rule shall  provide  that  if  the
 55    appointing  authority  fails to provide a performance evaluation within thirty
                                                                        
                                           13
                                                                        
  1    (30) days after the expiration of the probationary period, the employee  shall
  2    be deemed to have satisfactorily completed the probation unless the appointing
  3    authority  receives approval from the administrator to extend the probationary
  4    period for good cause for an additional specified period  not  to  exceed  one
  5    thousand forty (1,040) hours of credited state service. If an employee is per-
  6    forming  in  an unsatisfactory manner during the entrance probationary period,
  7    the appointing authority shall ask the employee to resign, and if no  resigna-
  8    tion is submitted, shall terminate the employment of such employee without the
  9    right of grievance or appeal.
 10        (k)  A rule concerning provisional appointments.
 11        (l)  A rule concerning temporary appointments.
 12        (m)  A  rule  governing the employment of consultants and persons retained
 13    under independent contract.
 14        (n)  A rule for the disciplinary dismissal, demotion, suspension or  other
 15    discipline  of  employees  only  for cause with reasons given in writing. Such
 16    rule shall provide that any of the following reasons shall be proper cause for
 17    the disciplinary dismissal, demotion or suspension  of  any  employee  in  the
 18    state classified service:
 19        1.  Failure to perform the duties and carry out the obligations imposed by
 20        the state constitution, state statutes and rules of the employee's depart-
 21        ment, or rules of the administrator or the division.
 22        2.  Inefficiency,  incompetency,  or  negligence  in  the  performance  of
 23        duties,  or  job  performance  that  fails to meet established performance
 24        standards.
 25        3.  Physical or mental incapability for performing assigned duties.
 26        4.  Refusal to accept a reasonable and proper assignment  from  an  autho-
 27        rized supervisor.
 28        5.  Insubordination or conduct unbecoming a state employee or conduct det-
 29        rimental to good order and discipline in the employee's department.
 30        6.  Intoxication on duty.
 31        7.  Careless,  negligent,  or improper use or unlawful conversion of state
 32        property, equipment or funds.
 33        8.  Use of any influence which violates the principles of the merit system
 34        in an attempt to secure a promotion or privileges  for  individual  advan-
 35        tage.
 36        9.  Conviction of official misconduct in office, or conviction of any fel-
 37        ony, or conviction of any other crime involving moral turpitude.
 38        10. Acceptance  of  gifts in exchange for influence or favors given in the
 39        employee's official capacity.
 40        11. Habitual pattern of failure to report for duty at the  assigned  place
 41        and time.
 42        12. Habitual improper use of sick leave privileges.
 43        13. Unauthorized  disclosure  of  confidential  information  from official
 44        records.
 45        14. Absence without leave.
 46        15. Misstatement or deception in the application for the position.
 47        16. Failure to obtain or maintain a current license  or  certificate  law-
 48        fully required as a condition for performing the duties of the job.
 49        17. Prohibited participation in political activities.
 50        (o)  A  rule  to  establish  procedures for maintenance of a record of the
 51    employment history and appropriate information relating to performance of  all
 52    employees under the personnel system. For the purposes of this rule, the state
 53    shall be considered one (1) employer.
 54        (p)  Rules to provide for recruitment programs in cooperation with depart-
 55    ment  heads and the employment security agency in keeping with current employ-
                                                                        
                                           14
                                                                        
  1    ment conditions and labor market trends.
  2        (q)  Rules to establish procedures for examinations as necessary  for  the
  3    purpose  of maintaining current registers from which to fill employment vacan-
  4    cies.
  5        (r)  Other rules not inconsistent with the foregoing  provisions  of  this
  6    section  as may be necessary and proper for the administration and enforcement
  7    of this chapter.
  8        (s)  A rule concerning "project exempt" appointments.
  9        (t)  Rules relating to leave for  state  employees  from  official  duties
 10    including,  but  not limited to, sick leave, military leave, jury duty, leaves
 11    of absence without compensation and such other forms of absence  from  perfor-
 12    mance of duties in the course of state employment as may be necessary.
 13        (u)  A  rule  providing  for  five  percent (5%) up to twenty-five percent
 14    (25%) shift differential pay based on local market practices.
 15        (v)  A rule to  establish  guidelines  for  awarding  employee  suggestion
 16    awards set forth in sections 59-1603 and 67-5309D, Idaho Code.
 17        (w)  A  rule  to establish the reimbursement of moving expenses for a cur-
 18    rent or newly-hired state employee.
 19        (x)  A rule to allow, at the request of the hiring agency,  temporary  and
 20    acting appointment service time to count toward fulfilling entrance probation-
 21    ary requirements as established in section 67-5309(j), Idaho Code.
                                                                        
 22        SECTION  9.  That Section 67-5309A, Idaho Code, be, and the same is hereby
 23    repealed.
                                                                        
 24        SECTION 10.  That Chapter 53, Title 67, Idaho Code, be, and  the  same  is
 25    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 26    ignated as Section 67-5309A, Idaho Code, and to read as follows:
                                                                        
 27        67-5309A.  STATE  EMPLOYEE  COMPENSATION  PHILOSOPHY.  (1)  It  is  hereby
 28    declared to be the intent of the legislature of the state of  Idaho  that  the
 29    goal  of  a  total  compensation system for state employees shall be to fund a
 30    competitive employee compensation and benefit package that will attract quali-
 31    fied applicants to the work force; retain employees who have a  commitment  to
 32    public  service  excellence;  motivate employees to maintain high standards of
 33    productivity; and reward employees for outstanding performance.
 34        (2)  The foundation for this philosophy recognizes that  state  government
 35    is a service enterprise in which the state work force provides the most criti-
 36    cal  role for Idaho citizens. Maintaining a competitive compensation system is
 37    an integral, necessary and expected cost of providing the  delivery  of  state
 38    services and is based on the following compensation standards:
 39        (a)  The state's overall compensation system, which includes both a salary
 40        and  a  benefit component, when taken as a whole shall be competitive with
 41        relevant labor market averages.
 42        (b)  Advancement in pay shall be  based  on  job  performance  and  market
 43        changes.
 44        (c)  Pay  for  performance  shall  provide  faster  salary advancement for
 45        higher performers based on a merit increase matrix developed by the  divi-
 46        sion of human resources.
 47        (d)  All  employees  below the state's midpoint market average in a salary
 48        range  who are meeting expectations in the performance of their jobs shall
 49        move through the pay range toward the midpoint market average.
 50        (3)  It is hereby declared to be legislative  intent  that  regardless  of
 51    specific budgetary conditions from year to year, it is vital to fund necessary
 52    compensation  adjustments  each year to maintain market competitiveness in the
                                                                        
                                           15
                                                                        
  1    compensation system. In order to provide this funding commitment in  difficult
  2    fiscal  conditions, it may be necessary to increase revenues, or to prioritize
  3    and eliminate certain functions or programs in state government, or to  reduce
  4    the  overall  number of state employees in a given year, or any combination of
  5    such methods.
                                                                        
  6        SECTION 11.  That Section 67-5309B, Idaho Code, be, and the same is hereby
  7    repealed.
                                                                        
  8        SECTION 12.  That Chapter 53, Title 67, Idaho Code, be, and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 67-5309B, Idaho Code, and to read as follows:
                                                                        
 11        67-5309B.  IDAHO COMPENSATION PLAN. (1)  The administrator of the division
 12    of human resources shall establish benchmark  job  classifications  and  shall
 13    assign  all classifications to a pay grade utilizing the Hay profile method in
 14    combination with market data. Pay grades established or revised by the  admin-
 15    istrator shall appropriately weigh Hay points and market data to ensure inter-
 16    nal equity and market equity within the classified service.
 17        (2)  It shall be the responsibility of each department director to prepare
 18    a  department  salary  administration  plan and corresponding budget plan that
 19    supports the core mission of the department and is consistent with the  provi-
 20    sions of section 67-5309A, Idaho Code.
 21        (3)  Advancement  in  pay shall be based on performance and market changes
 22    and be provided in a variety of delivery methods, including ongoing increases,
 23    temporary increases and market related payline moves. Market  related  payline
 24    moves  may  advance  all  eligible employees as well as the structure to avoid
 25    compression in the salary system.
 26        (4)  Pay for performance  shall  provide  faster  salary  advancement  for
 27    higher  performers  based on a merit increase matrix developed by the division
 28    of human resources. Such matrix shall be based upon the  employee's  proximity
 29    to the state midpoint market average, and the employee's relative performance.
 30    Such  matrix  may  be  adapted  by each agency to meet its specific needs when
 31    approved by the division of human resources.
 32        (5)  No employee shall advance in a salary  range  without  a  performance
 33    evaluation on file certifying that the employee meets the performance criteria
 34    of the assigned position.
 35        (6)  Each  employee's work performance shall be evaluated through a format
 36    and process approved by the department and the division  of  human  resources.
 37    The  employee  shall  be  evaluated  after one thousand forty (1,040) hours of
 38    credited state service from the date of initial appointment or promotion,  and
 39    thereafter  be evaluated after each two thousand eighty (2,080) hours of cred-
 40    ited state service. Employees may be eligible for advancement in pay if certi-
 41    fied as meeting the performance requirements of this  section.  However,  such
 42    in-grade  advancement shall not be construed as a vested right. The department
 43    director shall designate in writing whether such in-grade advancement is  tem-
 44    porary,  conditional  or permanent. It shall be the specific responsibility of
 45    the employee's immediate supervisor to effect  the  evaluation  process.  Such
 46    evaluation shall be approved by the department director or the director's des-
 47    ignee.
 48        (7)  All  supervisors  who evaluate state employees shall receive training
 49    in the evaluation format and process to assure fairness and consistency in the
 50    evaluation process.
 51        (8)  Notwithstanding any other provision  of  Idaho  Code,  it  is  hereby
 52    declared  to  be  the policy of the legislature of the state of Idaho that all
                                                                        
                                           16
                                                                        
  1    classified employees of like classification and pay grade allocation shall  be
  2    treated  in  a  substantially similar manner with reference to personnel bene-
  3    fits.
                                                                        
  4        SECTION 13.  That Section 67-5309C, Idaho Code, be, and the same is hereby
  5    repealed.
                                                                        
  6        SECTION 14.  That Chapter 53, Title 67, Idaho Code, be, and  the  same  is
  7    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
  8    ignated as Section 67-5309C, Idaho Code, and to read as follows:
                                                                        
  9        67-5309C.  ANNUAL SURVEYS, REPORTS AND RECOMMENDATIONS. (1)  The  adminis-
 10    trator of the division of human resources shall conduct or approve annual sal-
 11    ary  and  benefit  surveys  within  relevant labor markets to determine salary
 12    ranges and benefit packages that represent competitive  labor  market  average
 13    rates and benefits provided by private industry and other governmental units.
 14        (2)  A  report of the results of the annual salary and benefit surveys and
 15    recommendations for changes to meet  the  requirements  of  section  67-5309A,
 16    Idaho  Code,  together  with their estimated costs of implementation, shall be
 17    submitted to the governor and the legislature not later than the first day  of
 18    December  of  each  year. The recommendation shall include, at a minimum, four
 19    (4) components to address the compensation  philosophy  described  in  section
 20    67-5309A,  Idaho  Code, and shall include specific funding recommendations for
 21    each component:
 22        (a)  A recommendation for market related changes necessary to address sys-
 23        tem wide structure adjustments to stay  competitive  with  relevant  labor
 24        markets.  Such recommendation may include a market related payline adjust-
 25        ment for all eligible employees, as well as the structure, to  avoid  com-
 26        pression in the salary system.
 27        (b)  A recommendation for market related changes necessary to address spe-
 28        cific occupational inequities.
 29        (c)  A  recommendation  for  a  merit  increase component to recognize and
 30        reward state employees in the performance of public service to  the  citi-
 31        zens of Idaho.
 32        (d)  A  recommendation  for  any  changes to the employee benefit package,
 33        including any adjustments to the overall design  of  the  benefit  package
 34        and/or employee contributions.
 35        (3)  The governor shall submit his own recommendations on proposed changes
 36    in  salaries  and benefits to the legislature prior to the seventh legislative
 37    day of each session. Such recommendation shall address, at a minimum, the four
 38    (4) components and subsequent funding for each component required in this sec-
 39    tion.
 40        (4)  The legislature may, by  concurrent  resolution,  accept,  modify  or
 41    reject the governor's recommendations, but any such action by the legislature,
 42    at  a minimum, shall address the four (4) components and subsequent funding of
 43    each component required in this section. The failure  of  the  legislature  to
 44    accept,  modify  or  reject  the recommendations prior to adjournment sine die
 45    shall constitute approval of the governor's recommendations, and  such  recom-
 46    mendations  shall be funded through appropriations provided by law. The admin-
 47    istrator of the division of human  resources  shall  implement  necessary  and
 48    authorized  changes  to  salary  and pay schedule by rule. The director of the
 49    department of administration shall implement necessary and authorized  changes
 50    to benefits by rule.
                                                                        
 51        SECTION  15.  That  Chapter  53, Title 67, Idaho Code, be, and the same is
                                                                        
                                           17
                                                                        
  1    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  2    ignated as Section 67-5309D, Idaho Code, and to read as follows:
                                                                        
  3        67-5309D.  OTHER  PAY  DELIVERY  OPTIONS. (1) In addition to pay increases
  4    authorized in section 67-5309B, Idaho Code, the department director may  grant
  5    a  classified  employee  holding permanent status bonus pay not to exceed five
  6    thousand dollars ($5,000) in any given fiscal year based upon  exemplary  per-
  7    formance.  Exceptions  to  the five thousand dollar ($5,000) limit provided in
  8    this subsection (1) may be granted in extraordinary circumstances if  approved
  9    in  advance  by  the department director. Departments shall submit a report to
 10    the division of financial management and the legislative  services  office  by
 11    October 1 on all bonuses granted in the preceding fiscal year.
 12        (2)  In  addition  to  pay increases authorized in section 67-5309B, Idaho
 13    Code, the department director may grant a classified employee  holding  perma-
 14    nent status an award payment based upon suggestions or recommendations made by
 15    the employee which resulted in taxpayer savings as a result of cost savings or
 16    greater  efficiencies  to the department or to the state of Idaho in excess of
 17    the amount of the award, and in compliance with the rules for employee sugges-
 18    tion awards promulgated by the division of human resources. The award  may  be
 19    an  amount  up to twenty-five percent (25%) of the amount determined to be the
 20    dollar savings to the state, but  not  in  excess  of  five  thousand  dollars
 21    ($5,000).  Exceptions  to  the five thousand dollar ($5,000) limit provided in
 22    this subsection (2) may be granted in extraordinary circumstances if  approved
 23    in  advance  by  the department director. Departments shall submit a report to
 24    the division of financial management and the legislative  services  office  by
 25    October  1  on  all employee suggestion awards granted in the preceding fiscal
 26    year. Such report shall include any changes made as  a  direct  result  of  an
 27    employee's suggestion and savings resulting therefrom.
 28        (3)  In  addition  to  pay increases authorized in section 67-5309B, Idaho
 29    Code, the department director may grant award pay  to  a  classified  employee
 30    holding permanent status for recruitment or retention purposes upon completion
 31    of  at  least  six  (6) months of achieving performance standards. Departments
 32    shall submit a report to the division of financial management and the legisla-
 33    tive services office by October 1 on all such awards granted in the  preceding
 34    fiscal year.
 35        (4)  In  addition  to  pay increases authorized in section 67-5309B, Idaho
 36    Code, department directors may provide a classified employee holding permanent
 37    status other nonperformance related pay as provided in  this  subsection  (4).
 38    Departments  shall submit a report to the division of financial management and
 39    the legislative services office by October 1 on all such awards granted in the
 40    preceding fiscal year.
 41        (a)  Shift differential pay up to  twenty-five  percent  (25%)  of  hourly
 42        rates depending on local market rates in order to attract and retain qual-
 43        ified staff.
 44        (b)  Geographic  differential  pay in areas of the state where recruitment
 45        and retention of qualified staff are difficult due to economic  conditions
 46        and cost of living.
 47        (5)  When  necessary to obtain or retain qualified personnel in a particu-
 48    lar classification, upon petition of the department to the administrator  con-
 49    taining  acceptable  reasons  therefor,  a  higher  temporary pay grade may be
 50    authorized by the administrator which, if granted, shall be reviewed  annually
 51    to determine the need for continuance.
 52        (6)  In unusual circumstances, with prior approval from the administrators
 53    of  the  division of human resources and the division of financial management,
 54    agencies may grant nonperformance related pay to employees, which in  no  case
                                                                        
                                           18
                                                                        
  1    may exceed five percent (5%) of an employee's base pay. Departments shall sub-
  2    mit  a report to the division of financial management and the legislative ser-
  3    vices office by October 1 on all such awards granted in the  preceding  fiscal
  4    year.
  5        (7)  Specific  pay  codes shall be established and maintained in the state
  6    controller's office to ensure accurate reporting and  monitoring  of  all  pay
  7    actions authorized in this section.
                                                                        
  8        SECTION  16.  That Section 67-5326, Idaho Code, be, and the same is hereby
  9    repealed.
                                                                        
 10        SECTION 17.  That Sections 67-5328, 67-5329, 67-5330  and  67-5331,  Idaho
 11    Code, be, and the same are hereby amended to read as follows:
                                                                        
 12        67-5328.  OVERTIME  COMPENSATION  -- ELIGIBILITY STATE POLICY -- OVERTIME.
 13    (1)  It is hereby declared to be the policy of the legislature of the state of
 14    Idaho that all classified employees shall  be  treated  substantially  similar
 15    with reference to hours of employment. The policy of this state as declared in
 16    this act shall not restrict the extension of regular work hour schedules on an
 17    overtime  basis  in those activities and duties where such extension is neces-
 18    sary and authorized, provided that overtime work performed under  such  exten-
 19    sion is compensated for as hereinafter provided.
 20        (2)  The appointing authority of any department shall determine the neces-
 21    sity for overtime work and shall provide for cash compensation or compensatory
 22    time  off  for such overtime work for eligible classified officers and employ-
 23    ees, subject to the restrictions of applicable federal law.
 24        67-5329.  CASH FOR OVERTIME -- COMPENSATORY TIME.
 25        (13)  Cash for overtime and compensatory time shall be paid based  on  the
 26    following criteria:
 27        (a)  Classified  and  nonclassified officers and employees who fall within
 28        one (1) or more of the following categories are ineligible for  cash  com-
 29        pensation or compensatory time for overtime work:
 30             (ai)   Elected officials; or
 31             (bii)  Those  included in the definition of section 67-5303(j), Idaho
 32             Code.
 33        (2b)  Classified and nonclassified employees who are designated as  execu-
 34        tive,  as  provided  in section 67-5302, Idaho Code, who are designated as
 35        exempt under any other complete exemption in the federal  law  fair  labor
 36        standards  act,  and  who are not included in the definition of subsection
 37        (13)(a) of this section, shall be ineligible for compensatory time or cash
 38        compensation for overtime work,  but  such  classified  and  nonclassified
 39        employees  shall  be  allowed compensatory time off from duty for overtime
 40        work. Such compensatory time shall be earned and allowed on a one (1) hour
 41        for one (1) hour basis not  to  exceed  two  hundred  forty  (240)  hours.
 42        Accrued  compensatory  time  off  earned  under  this section shall not be
 43        transferable, and shall be forfeited at the time of  transfer  to  another
 44        appointing authority or upon separation from state service. Unused compen-
 45        satory  time balances in excess of two hundred forty (240) hours as of the
 46        date of enactment of this act shall be forfeited  on  December  31,  2008.
 47        Unused compensatory time balances of two hundred forty (240) hours or less
 48        shall be forfeited on December 31, 2006.
 49        (3c)  Classified  and nonclassified employees who are designated as admin-
 50        istrative or professional, as provided in section 67-5302, Idaho Code,  or
 51        who  are  designated  as  exempt under any other complete exemption in the
 52        federal law fair labor standards act, and who are not included in the def-
                                                                        
                                           19
                                                                        
  1        inition of either subsection (13)(a) or (3)(b) of this section,  shall  be
  2        ineligible  for cash compensation for overtime work unless cash payment is
  3        authorized by the state board of examiners for overtime accumulated during
  4        unusual or emergency situations, but  such  classified  and  nonclassified
  5        employees  shall  be  allowed compensatory time off from duty for overtime
  6        work. Such compensatory time shall be earned and allowed on a one (1) hour
  7        for one (1) hour basis, shall not be transferable, and shall be  forfeited
  8        at the time of transfer to another appointing authority or upon separation
  9        from state service.
 10        (4d)  Classified  employees  who are not designated as executive, adminis-
 11        trative or professional as provided in section 67-5302,  Idaho  Code,  who
 12        are  not  designated  as  exempt under any other complete exemption in the
 13        federal law fair labor standards act, and who are not included in the def-
 14        inition of subsection (13)(a) of this section, shall be eligible for  cash
 15        compensation or compensatory time off from duty for overtime work, subject
 16        to  the  restrictions of applicable federal law. Compensatory time off may
 17        be provided in lieu of cash compensation at the discretion of the appoint-
 18        ing authority after consultation, in advance, with the employee. Compensa-
 19        tory time off shall be paid at the rate of one and one-half (1 1/2)  hours
 20        for each overtime hour worked. Compensatory time off which has been earned
 21        during any one-half (1/2) fiscal year but not taken by the end of the suc-
 22        ceeding  one-half  (1/2)  fiscal  year, shall be paid in cash on the first
 23        payroll following the close of such succeeding one-half (1/2) fiscal year.
 24        Compensatory time not taken at the time of transfer to another  appointing
 25        authority or upon separation from state service shall be liquidated at the
 26        time of such transfer or separation by payment in cash.
 27        67-5330.  RATE OF OVERTIME COMPENSATION WHEN PAID IN CASH.
 28        (4)  Cash  compensation  for overtime, when paid, shall be at one and one-
 29    half (1 1/2) times the hourly rate of that officer's or employee's  salary  or
 30    wage,  except  for those employees whose positions fall within the definitions
 31    of executive, administrative or professional as  stated  in  section  67-5302,
 32    Idaho  Code,  who will be paid at their regular hourly rate of pay as provided
 33    for in subsection 67-5329, Idaho Code (3) of this section.
 34        67-5331.  OVERTIME COMPENSATION -- WHEN PAID.
 35        (5)  Except as provided for in subsection 67-5329, Idaho Code (3) of  this
 36    section,  compensation  for authorized overtime work shall be made at the com-
 37    pletion of the pay period next following the pay period in which the  overtime
 38    work occurred and shall be added to the regular salary payment.
                                                                        
 39        SECTION  18.  That  Sections  67-5333 and 67-5339, Idaho Code, be, and the
 40    same are hereby amended to read as follows:
                                                                        
 41        67-5333.  SICK LEAVE. COMPUTATION. (1)  Sick leave shall  be  computed  as
 42    follows:
 43        (a)  The  rate  per  hour  at  which sick leave shall accrue to classified
 44        officers and employees earning credited state service shall be at the rate
 45        represented by the proportion 96/2080. Sick  leave  shall  accrue  without
 46        limit, and shall be transferable from department to department.
 47        (2b)  Sick  leave  shall not accrue to any officer or employee on any kind
 48        of leave of absence without pay, suspension without pay  or  layoff.  Sick
 49        leave shall accrue  while an officer or employee is on approved leave with
 50        pay,  on approved vacation leave, on approved military leave with pay, and
 51        on approved sick leave, but not when compensatory time or earned  adminis-
 52        trative leave is taken.
 53        (3c)  All  accrued sick leave shall be forfeited at the time of separation
                                                                        
                                           20
                                                                        
  1        from state service and no officer or  employee  shall  be  reimbursed  for
  2        accrued  sick  leave  at  the  time  of  separation, except as provided in
  3        subsection 67-5339, Idaho Code (2) of this section.  If  such  officer  or
  4        employee  returns to credited state service within three (3) years of such
  5        separation, all sick leave credits accrued at the time of separation shall
  6        be reinstated, except to the extent that unused sick  leave  was  utilized
  7        for  the  purposes specified in subsection 67-5339, Idaho Code (2) of this
  8        section.
  9        (4d)  Sick leave shall be taken on a workday  basis.  Regularly  scheduled
 10        days  off  and  officially  designated holidays falling within a period of
 11        sick leave shall not be counted against sick leave. Sick leave  shall  not
 12        be taken in advance of being earned.
 13        (5e)  In  cases where absences for sick leave exceed three (3) consecutive
 14        working days, the appointing authority may require verification by a  phy-
 15        sician or other authorized practitioner.
 16        (6f)  If  an  absence  for illness or injury extends beyond the sick leave
 17        accrued to the credit of the officer or employee, the officer or  employee
 18        may be granted leave without pay.
 19        (7g)  The  administrator  shall prescribe additional requirements for sick
 20        leave for classified officers and employees on a  part-time  or  irregular
 21        schedule,  for maintaining sick leave records, for funeral leave, and such
 22        other applicable purposes as necessary.
 23        67-5339.  USE OF UNUSED SICK LEAVE.
 24        (12)  Unused sick leave may be used as follows:
 25        (a)  Upon separation from state employment  by  retirement  in  accordance
 26        with  chapter  13,  title  59  or  chapter  1,  title  33,  Idaho Code, an
 27        employee's unused sick leave shall be determined based on accumulated sick
 28        leave earned subsequent to July 1, 1976, and  shall  be  reported  by  the
 29        employer  to  the  public employee retirement system. Upon separation from
 30        state employment by retirement in accordance with  chapter  20,  title  1,
 31        Idaho  Code,  an employee's unused sick leave shall be determined based on
 32        accumulated sick leave earned subsequent to July 1,  2000,  and  shall  be
 33        reported  by  the employer to the public employee retirement system. A sum
 34        equal to one-half (1/2), or the maximum amount allowed by  subsection  (2)
 35        paragraph (b) of this subsection (2), whichever is the lesser, of the mon-
 36        etary  value  of such unused sick leave, calculated at the rate of pay for
 37        such employee at the time of retirement, shall  be  transferred  from  the
 38        sick  leave  account  provided  by  subsection  (3)  paragraph (c) of this
 39        subsection (2)  and  shall  be  credited  to  such  employee's  retirement
 40        account.  Such  sums shall be used by the Idaho public employee retirement
 41        board to pay premiums for such group health, accident, and life  insurance
 42        programs  as  may  be  maintained by the state, to the extent of the funds
 43        credited to the employee's account  pursuant  to  this  section.  Upon  an
 44        employee's  death,  any  unexpended  sums  remaining  in the account shall
 45        revert to the sick leave account.
 46        (2b)  For the purposes of determining the monetary value  of  unused  sick
 47        leave, the maximum unused sick leave which may be considered, shall be:
 48             (ai)   During  the  first ten thousand four hundred (10,400) hours of
 49             credited state service, the maximum unused sick leave  which  may  be
 50             considered shall be four hundred twenty (420) hours;
 51             (bii)  During  the second ten thousand four hundred (10,400) hours of
 52             credited state service, the maximum unused sick leave  which  may  be
 53             considered shall be four hundred eighty (480) hours;
 54             (ciii) During  the  third ten thousand four hundred (10,400) hours of
 55             credited state service, the maximum unused sick leave  which  may  be
                                                                        
                                           21
                                                                        
  1             considered shall be five hundred forty (540) hours; and
  2             (div)  Thereafter, the maximum unused sick leave which may be consid-
  3             ered shall be six hundred (600) hours.
  4        (3c)  Each  employer  in state government shall contribute to a sick leave
  5        account maintained by the public employee  retirement  system  exclusively
  6        for  the  purpose of the provisions of this section. The rate of such con-
  7        tribution each pay period shall consist of a percentage of employees' sal-
  8        aries as determined by the board, and such rate  shall  remain  in  effect
  9        until  next  determined by the board. Any excess balance in the sick leave
 10        account shall be invested, and the earnings therefrom shall accrue to  the
 11        sick  leave  account  except  the  amount  required by the board to defray
 12        administrative expenses. All moneys payable to the sick leave account  are
 13        hereby perpetually appropriated to the board, and shall not be included in
 14        its  departmental  budget. The state insurance fund and public health dis-
 15        tricts shall be considered employers in state government for  purposes  of
 16        participation under this section.
                                                                        
 17        SECTION  19.  That  Sections 67-5334, 67-5335 and 67-5337, Idaho Code, be,
 18    and the same are hereby amended to read as follows:
                                                                        
 19        67-5334.  VACATION TIME. COMPUTATION. (1) Vacation time shall be  computed
 20    as follows:
 21        (a)  Vacation time shall not accrue to any officer or employee on any kind
 22        of  leave  of absence without pay, suspension without pay or layoff. Vaca-
 23        tion leave shall accrue while an officer or employee is on approved  leave
 24        with pay, on approved vacation leave, on approved military leave with pay,
 25        and  on  approved  sick  leave,  but  not when compensatory time or earned
 26        administrative leave is taken.
 27        (2b)  The rate per hour at which vacation leave shall accrue  to  eligible
 28        classified  officers  and employees earning credited state service who are
 29        covered and nonexempt under the federal fair labor standards act shall  be
 30        at  the  rate  represented  by the proportion 96/2080 during the first ten
 31        thousand four hundred (10,400) hours of credited  state  service;  at  the
 32        rate represented by the proportion 120/2080 during the second ten thousand
 33        four  hundred (10,400) hours of credited state service; at the rate repre-
 34        sented by the proportion 144/2080 during the third ten thousand four  hun-
 35        dred (10,400) hours of credited state service; and at the rate represented
 36        by the proportion 168/2080 thereafter.
 37        (c)  Classified  officers and employees earning credited state service and
 38        defined  as  an  exempt  "professional,"  "administrative,"  or  "computer
 39        worker" under the federal fair labor standards act shall be  at  the  rate
 40        represented  by the proportion 120/2080 during the first ten thousand four
 41        hundred (10,400) hours of credited state service; at the rate  represented
 42        by  the  proportion  144/2080  during the second ten thousand four hundred
 43        (10,400) hours of credited state service; and at the rate  represented  by
 44        the proportion 168/2080 thereafter.
 45        (d)  Classified  officers and employees earning credited state service and
 46        defined as an exempt "executive" under the federal  fair  labor  standards
 47        act shall be at the rate represented by the proportion 200/2080.
 48        67-5335.  VACATION  TIME -- ELIGIBILITY -- MAXIMUM TIME -- RIGHT TO ANNUAL
 49    VACATION.
 50        (12)  Eligibility and use of vacation time shall be determined as follows:
 51        (a)  An appointing authority shall permit each officer or employee to take
 52        vacation leave to the extent such leave has accrued.
 53        (2b)  Vacation leave may be  accrued  and  accumulated  only  as  follows,
                                                                        
                                           22
                                                                        
  1        unless  amounts  in  excess  of  the  permitted  accumulations  have  been
  2        expressly  authorized  in writing by the board of examiners during unusual
  3        or emergency situations:
  4        During the first ten thousand four  hundred  (10,400)  hours  of  credited
  5    state  service,  vacation leave may be accrued and accumulated to a maximum of
  6    one hundred ninety-two (192) hours; employees classified as "executive"  under
  7    the  federal fair labor standards act may accrue and accumulate vacation leave
  8    to a maximum of two hundred (200) hours during this period;
  9        During the second ten thousand four hundred  (10,400)  hours  of  credited
 10    state  service,  vacation leave may be accrued and accumulated to a maximum of
 11    two hundred forty (240) hours;
 12        During the third ten thousand four  hundred  (10,400)  hours  of  credited
 13    state  service,  vacation leave may be accrued and accumulated to a maximum of
 14    two hundred eighty-eight (288) hours;
 15        After thirty-one thousand two hundred (31,200)  hours  of  credited  state
 16    service,  vacation  leave may be accrued and accumulated to a maximum of three
 17    hundred thirty-six (336) hours.
 18        (3c)  Vacation leave shall be transferable from department  to  department
 19        only to the extent that it is accrued and accumulated.
 20        (4d)  Vacation  leave  shall  not be earned, accrued or accumulated during
 21        any pay period in which the maximum accruals and accumulations provided by
 22        this section have been met.
 23        (5e)  Vacation leave not taken shall be compensated for  at  the  time  of
 24        separation  only to the maximum accruals and accumulations allowed by this
 25        section.
 26        (6f)  Vacation leave shall be taken on a workday basis.  Regularly  sched-
 27        uled  days  off and officially designated holidays falling within a period
 28        of vacation leave shall not be counted against  vacation  leave.  Vacation
 29        leave  shall  not  be  taken  in advance of being earned and shall only be
 30        taken in pay periods subsequent to being earned.
 31        (7g)  With the approval of the appointing authority for both the transfer-
 32        ring and receiving officer or employee, an officer or employee may  trans-
 33        fer accrued vacation leave, up to a maximum of forty (40) hours per fiscal
 34        year,  to  another  officer  or employee for purposes of sick leave in the
 35        event the receiving officer or employee or a family member suffers from  a
 36        serious  illness  or  injury. The amount transferred shall be converted to
 37        sick leave. An officer or employee shall not be allowed  to  receive  more
 38        than  one  hundred sixty (160) hours of transferred leave per fiscal year,
 39        and a transfer shall not occur until the receiving employee has  exhausted
 40        all  of his or her accrued sick and vacation leave. An officer or employee
 41        shall not be eligible to transfer vacation leave unless his or her balance
 42        exceeds eighty (80) hours, and in no event  may  an  officer  or  employee
 43        transfer  an amount of accrued leave which would result in an accrued bal-
 44        ance of less than eighty (80) hours.
 45        67-5337.  CASH FOR UNUSED VACATION TIME.
 46        (3)  Upon separation from state employment and to the  limits  allowed  by
 47    subsection  67-5335,  Idaho  Code (2) of this section, all classified officers
 48    and employees shall receive a lump sum payment for accrued but unused vacation
 49    leave at the hourly rate of pay of that officer or employee.
                                                                        
 50        SECTION 20.  That Chapter 53, Title 67, Idaho Code, be, and  the  same  is
 51    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 52    ignated as Section 67-5337, Idaho Code, and to read as follows:
                                                                        
 53        67-5337.  MOVING EXPENSE REIMBURSEMENT. In order for the state to  attract
                                                                        
                                           23
                                                                        
  1    and retain professional staff, it may be necessary to defray normal intrastate
  2    and interstate moving expenses. The head of any department, office or institu-
  3    tion  of  the state shall have the authority to decide whether or not to reim-
  4    burse moving expenses for current or newly-hired state employees on a case-by-
  5    case basis up to ten percent (10%) of the employee's base  salary  or  fifteen
  6    thousand  dollars  ($15,000),  whichever is less, and in compliance with rules
  7    for the reimbursement of moving expenses promulgated by the division of  human
  8    resources.  Exceptions  to  the  maximum  moving  expense reimbursement may be
  9    granted if approved in advance by the department director. Agencies shall sub-
 10    mit a report to the division of financial management and the legislative  ser-
 11    vices  office by October 1 on all moving expense reimbursements granted in the
 12    preceding fiscal year.
                                                                        
 13        SECTION 21.  That Section 67-5342, Idaho Code, be, and the same is  hereby
 14    amended to read as follows:
                                                                        
 15        67-5342.  SEVERANCE  PAY  FOR STATE EMPLOYEES. Upon termination from state
 16    service, no classified or exempt employee shall be eligible for severance  pay
 17    and  no  employer  shall  provide  or pay severance pay to such an employee or
 18    former employee. As used in this section, "severance pay"  shall  mean  money,
 19    exclusive  of  wages or salary, vacation leave payoff, compensatory time leave
 20    and earned administrative  leave  payoff,  paid  to  a  classified  or  exempt
 21    employee  who  resigns  from  state  service of his own volition and not under
 22    duress.
                                                                        
 23        SECTION 22.  An emergency existing therefor,  which  emergency  is  hereby
 24    declared to exist, this act shall be in full force and effect on and after its
 25    passage and approval.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                                     Moved by    Garrett             
                                                                        
                                                     Seconded by Schaefer            
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                             HOUSE AMENDMENTS TO S.B. NO. 1363
                                                                        
                                                                        
  1                               AMENDMENTS TO SECTION 3
  2        On page 3 of the printed bill, in  line  40,  delete  "five"  and  insert:
  3    "two";  in  line 41, delete "5" and insert: "2"; in line 42, delete "five" and
  4    insert: "two"; in line 43, delete "5" and insert:  "2";  in  line  44,  delete
  5    "state  board of examiners appoint-" and insert:  "state board of examiners.";
  6    in line 45, delete "ing authority."; in line  49,  delete  "holding  permanent
  7    status"  and  insert: ", holding permanent status,"; in line 51, delete "five"
  8    and insert: "two"; and in line 52, delete "5" and insert: "2".
  9        On page 4, in line 1, delete "five" and insert: "two", and also in line 1,
 10    delete "5" and insert: "2"; in line 2, delete "state" and insert: "state"; and
 11    in line 3, delete "board  of  examiners  appointing  authority."  and  insert:
 12    "board of examiners.".
                                                                        
 13                                AMENDMENT TO SECTION 5
 14        On page 5, in line 32,  delete "--"  and insert: "-- AND"; and in line 51,
 15    delete  "section  67-5302,  Idaho  Code,"  and insert: "section 67-5302, Idaho
 16    Code,".
 17        On page 6, delete line 1, and insert:  "under any other complete exemption
 18    in federal law,"; in line 2, delete "act,"; in line 10,  following  "service."
 19    insert:  "Such  salaried employees shall report absences in excess of one-half
 20    (1/2) day."; in line 27, delete "section" and  insert:  "this  section,";  and
 21    delete line 29, and insert: "exemption in federal law, and who are not".
                                                                        
 22                                AMENDMENT TO SECTION 7
 23        On page 8, in line 37, delete "section" and insert: "section bureau".
                                                                        
 24                                AMENDMENT TO SECTION 8
 25        On page 12, in line 31, delete "permanent" and insert: "permanent".
                                                                        
 26                               AMENDMENT TO SECTION 14
 27        On page 16, in line 50, delete "by rule".
                                                                        
 28                               AMENDMENTS TO SECTION 15
 29        On page 17, in line 5, delete "holding permanent status", and also in line
 30    5,  delete "five" and insert: "two"; in line 6, delete "5" and insert: "2"; in
 31    line 7, delete "five" and insert: "two", and also in line 7,  delete  "5"  and
 32    insert:  "2"; in line 9, delete "department director" and insert: "state board
 33    of examiners"; in line 13, delete "holding perma-"; in line 14,  delete  "nent
 34    status";  in  line  20,  delete  "five"  and insert: "two"; in line 21, delete
 35    "($5,000). Exceptions to  the  five  thousand  dollar  ($5,000)"  and  insert:
 36    "($2,000). Exceptions to the two thousand dollar ($2,000)"; in line 23, delete
 37    "department  director"  and  insert:  "state  board of examiners"; in line 30,
 38    delete "holding permanent status"; in line 36, delete "holding permanent";  in
                                                                        
                                          2
                                                                        
  1    line 37, delete "status"; and following line 46, insert:
  2        "(c)   Employees  in  the  same  classification who are similarly situated
  3        shall be treated consistently in respect to shift  differential  and  geo-
  4        graphic pay differential.".
                                                                        
  5                               AMENDMENTS TO SECTION 17
  6        On  page  18,  in  line 12, delete "STATE POLICY --" and insert: "HOURS OF
  7    WORK AND"; in line 34, delete  "section  67-5302,  Idaho  Code,"  and  insert:
  8    "section  67-5302, Idaho Code,"; delete line 35, and insert: "exempt under any
  9    other complete exemption in federal  law,";  in  line  36,  delete  "standards
 10    act,";  and  in line 44, following "service." insert: "Such salaried employees
 11    shall report absences in excess of one-half (1/2) day.".
 12        On page 19, in line 11, delete "section" and insert:  "this section,";  in
 13    line  12,  delete "the";  and in line 13, delete "federal law fair labor stan-
 14    dards act," and insert: "federal law,".
                                                                        
 15                               AMENDMENTS TO SECTION 19
 16        On page 21, in line 46, delete "the  federal  fair  labor  standards"  and
 17    insert:  "section 67-5302, Idaho Code,"; in line 47, delete "act"; and on page
 18    22, in line 7, delete "the federal fair labor standards act" and insert: "sec-
 19    tion 67-5302, Idaho Code,".
                                                                        
 20                                AMENDMENT TO THE BILL
 21        On page 23, delete lines 23, 24 and 25.
                                                                        
 22                                 CORRECTIONS TO TITLE
 23        On page 1, in line 31, following "ERENCES" insert: "AND  TERMINOLOGY";  in
 24    line 33, following "IDAHO CODE," insert: "TO PROVIDE CORRECT TERMINOLOGY,".
 25        On  page  2,  in  line 12, delete "ACCORD-"; delete line 13 and insert: ",
 26    TO"; in line 17, following "REIMBURSEMENT;" insert: "AND"; in line 18, follow-
 27    ing "PAY" delete the remainder of the line and insert: ".""; and  delete  line
 28    19.

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                       SENATE BILL NO. 1363, As Amended in the House
                                                                        
                         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 OTHER PAY TO CERTAIN NONCLASSIFIED OFFICERS  AND  EMPLOYEES
 16        AND  TO  REQUIRE  REPORTING OF SUCH AWARDS GRANTED IN THE PRECEDING FISCAL
 17        YEAR, TO PROVIDE FOR NONMERIT PAY AND TO REQUIRE REPORTING OF SUCH  AWARDS
 18        GRANTED  IN  THE PRECEDING FISCAL YEAR, TO PROVIDE CRITERIA FOR REIMBURSE-
 19        MENT OF MOVING EXPENSES, TO REQUIRE REPORTING OF ALL MOVING REIMBURSEMENTS
 20        GRANTED IN THE PRECEDING  FISCAL  YEAR  AND  TO  PROVIDE  THAT  THE  STATE
 21        CONTROLLER'S  OFFICE  IS RESPONSIBLE FOR THE ESTABLISHMENT AND MAINTENANCE
 22        OF SPECIFIC PAY CODES; AMENDING SECTION 59-1606, IDAHO CODE, TO DELETE  AN
 23        INCORRECT CODE REFERENCE; AMENDING SECTION 59-1607, IDAHO CODE, TO PROVIDE
 24        PROPER  TERMINOLOGY  AND  TO  CLARIFY COMPENSATORY TIME FOR CLASSIFIED AND
 25        NONCLASSIFIED EMPLOYEES WHO ARE DESIGNATED AS EXECUTIVE; AMENDING  SECTION
 26        67-3511,  IDAHO  CODE, TO PROVIDE AN EXCEPTION TO THE LIMITATION ON USE OF
 27        APPROPRIATIONS MADE FOR EXPENSES OTHER THAN PERSONNEL  COSTS,  TO  PROVIDE
 28        FOR  LIMITATIONS ON THE AMOUNT OF LEGISLATIVE APPROPRIATIONS FOR PERSONNEL
 29        COSTS WHICH CAN BE TRANSFERRED TO OTHER OBJECT CODES AND TO MAKE TECHNICAL
 30        CORRECTIONS; AMENDING SECTION 67-5302, IDAHO CODE, TO PROVIDE CORRECT REF-
 31        ERENCES AND TERMINOLOGY, TO REFORMAT THE SECTION AND TO EXPAND THE DEFINI-
 32        TION OF "HOLIDAY" TO DISTINGUISH  NONEXECUTIVE  EMPLOYEES  FROM  EMPLOYEES
 33        CLASSIFIED  AS  EXECUTIVE EXEMPT; AMENDING SECTION 67-5309, IDAHO CODE, TO
 34        PROVIDE CORRECT TERMINOLOGY, TO CLARIFY RULEMAKING AUTHORITY OF THE  DIVI-
 35        SION  OF HUMAN RESOURCES REGARDING RULES FOR DISCIPLINARY DISMISSAL, DEMO-
 36        TION, SUSPENSION OR OTHER DISCIPLINE FOR CAUSE AND FOR SHIFT  DIFFERENTIAL
 37        PAY  AND  TO  SPECIFY  ADDITIONAL  RULEMAKING AUTHORITY; REPEALING SECTION
 38        67-5309A, IDAHO CODE, RELATING TO PERSONNEL BENEFITS; AMENDING CHAPTER 53,
 39        TITLE 67, IDAHO CODE, BY THE ADDITION OF A  NEW  SECTION  67-5309A,  IDAHO
 40        CODE,  TO PROVIDE A STATE EMPLOYEE COMPENSATION PHILOSOPHY; REPEALING SEC-
 41        TION 67-5309B, IDAHO CODE, RELATING  TO  ESTABLISHING  SALARIES;  AMENDING
 42        CHAPTER  53,  TITLE  67,  IDAHO  CODE,  BY  THE  ADDITION OF A NEW SECTION
 43        67-5309B, IDAHO CODE, TO ESTABLISH THE IDAHO COMPENSATION PLAN;  REPEALING
 44        SECTION  67-5309C, IDAHO CODE, RELATING TO PAY GRADES AND MERIT INCREASES;
 45        AMENDING CHAPTER 53, TITLE 67, IDAHO CODE, BY THE ADDITION OF A  NEW  SEC-
 46        TION  67-5309C,  IDAHO  CODE,  TO  PROVIDE  FOR  SPECIFIED ANNUAL SURVEYS,
                                                                        
                                           2
                                                                        
  1        REPORTS AND RECOMMENDATIONS; AMENDING CHAPTER 53, TITLE 67, IDAHO CODE, BY
  2        THE ADDITION OF A NEW SECTION 67-5309D, IDAHO CODE, TO PROVIDE  OTHER  PAY
  3        DELIVERY OPTIONS; REPEALING SECTION 67-5326, IDAHO CODE, RELATING TO OVER-
  4        TIME  AND  HOURS  OF WORK; AMENDING SECTIONS 67-5328, 67-5329, 67-5330 AND
  5        67-5331, IDAHO CODE, TO PROVIDE STATE OVERTIME POLICY, TO  CLARIFY  PROVI-
  6        SIONS  RELATING  TO  CASH  COMPENSATION AND COMPENSATORY TIME, TO REFORMAT
  7        SECTION 67-5328, IDAHO CODE, TO REDESIGNATE SECTIONS 67-5329, 67-5330  AND
  8        67-5331, IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY AND TO PROVIDE CORRECT
  9        CODE  REFERENCES;  AMENDING  SECTIONS  67-5333 AND 67-5339, IDAHO CODE, TO
 10        REFORMAT SECTION 67-5333, IDAHO  CODE,  TO  REDESIGNATE  SECTION  67-5339,
 11        IDAHO  CODE,  AND  TO  PROVIDE  CORRECT CODE REFERENCES; AMENDING SECTIONS
 12        67-5334, 67-5335 AND 67-5337, IDAHO CODE, TO CLARIFY COMPUTATION OF  VACA-
 13        TION TIME FOR CLASSIFIED OFFICERS AND EMPLOYEES, TO MAKE TECHNICAL CORREC-
 14        TIONS,  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; AND AMENDING SECTION 67-5342, IDAHO
 18        CODE, TO REDEFINE "SEVERANCE PAY."
                                                                        
 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 two thou-
 40    sand dollars ($12,000) in any given fiscal year based upon an affirmative cer-
 41    tification of meritorious service. Exceptions to the one two  thousand  dollar
 42    ($12,000)  limit  provided  in this section may be granted under extraordinary
 43    circumstances if  approved  in  advance  by  the  state  board  of  examiners.
 44    Appointing authorities shall submit a report to the division of financial man-
 45    agement and the legislative services office by October 1 on all awards granted
 46    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  two  thousand  dollars
 51    ($12,000)  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 two thousand dollar ($12,000) limit provided in this subsection may be
                                                                        
                                           4
                                                                        
  1    granted in extraordinary circumstances if approved in  advance  by  the  state
  2    board of examiners. The appointing authority shall as near as practicable uti-
  3    lize  the  criteria  in  conformance with rules promulgated by the division of
  4    human resources pursuant to section 67-5309D, Idaho Code. Appointing  authori-
  5    ties  shall  submit  a  report to the division of financial management and the
  6    legislative services office by October 1 on  all  employee  suggestion  awards
  7    granted  in  the  preceding fiscal year. Such report shall include any changes
  8    made as a direct result of an  employee's  suggestion  and  savings  resulting
  9    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, except those who are elected offi-
 26    cials or whose salaries are fixed  by  law,  may  be  granted  award  pay  for
 27    recruitment or retention purposes based upon affirmative certification of mer-
 28    itorious  service  after  completion  of  at  least six (6) months of service.
 29    Appointing authorities shall submit a report to the division of financial man-
 30    agement and the legislative services office by October 1 on  all  such  awards
 31    granted in the preceding fiscal year.
 32        (12) In  addition  to salary increases provided by any compensation sched-
 33    ule, nonclassified officers and employees, except those who are elected  offi-
 34    cials or whose salaries are fixed by law, may be granted other pay as provided
 35    in  this subsection. Appointing authorities shall submit a report to the divi-
 36    sion of financial management and the legislative services office by October  1
 37    on all such awards granted in the 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 are difficult due to economic conditions and cost of living.
 43        (13) In  unusual  circumstances, when a distribution has been approved for
 44    classified employees pursuant to section 67-5309D, Idaho Code, each appointing
 45    authority, including the elective offices in the executive branch, the  legis-
 46    lative  branch,  the judicial branch, and the state board of education and the
 47    board of regents of the university of Idaho, may grant nonclassified employees
 48    nonmerit pay in the same proportion as received  by  classified  employees  in
 49    that  department  or institution. Appointing authorities shall submit a report
 50    to the division of financial management and the legislative services office by
 51    October 1 on all such awards granted in the 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 -- AND OVERTIME. (1) It is the policy of the leg-
 32    islature of the state of Idaho that all classified and nonclassified  officers
 33    and employees of state government shall be treated equally substantially simi-
 34    lar with reference to hours of employment, holidays and vacation leave, except
 35    as  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 federal law, and who are not included in
                                                                        
                                           6
                                                                        
  1    the definition of subsection (3) of this section, shall be ineligible for com-
  2    pensatory time or cash compensation for overtime work, but such classified and
  3    nonclassified  employees  shall be allowed compensatory time off from duty for
  4    overtime work. Such compensatory time shall be earned and allowed on a one (1)
  5    hour for one (1) hour basis not to  exceed  two  hundred  forty  (240)  hours.
  6    Accrued compensatory time off earned under this section shall not be transfer-
  7    able,  and  shall  be  forfeited at the time of transfer to another appointing
  8    authority or upon separation from state service. Such salaried employees shall
  9    report absences in excess of one-half (1/2) day. Unused compensatory time bal-
 10    ances in excess of two hundred forty (240) hours as of the date  of  enactment
 11    of  this act shall be forfeited on December 31, 2008. Unused compensatory time
 12    balances of two hundred forty (240) hours or less shall be forfeited on Decem-
 13    ber 31, 2006.
 14        (5)  Classified and nonclassified officers and employees  who  are  desig-
 15    nated  as administrative or professional as provided in section 67-5302, Idaho
 16    Code, or who are designated as exempt under any other  complete  exemption  in
 17    the federal law fair labor standards act, and who are not included in the def-
 18    inition  of  subsection (3) of this section, shall be ineligible for cash com-
 19    pensation for overtime work unless cash payment is  authorized  by  the  state
 20    board of examiners for overtime accumulated during unusual or emergency situa-
 21    tions,  but  such classified and nonclassified officers and employees shall be
 22    allowed compensatory time off from duty for overtime work.  Such  compensatory
 23    time  shall  be  earned  and allowed on a one (1) hour for one (1) hour basis,
 24    shall not be transferable, and shall be forfeited at the time of  transfer  to
 25    another appointing authority or upon separation from state service.
 26        (6)  Classified  and nonclassified officers and employees who are not des-
 27    ignated as executive, administrative or professional as provided in this  sec-
 28    tion,  67-5302,  Idaho  Code, who are not designated as exempt under any other
 29    complete exemption in federal law, and who are not included in the  definition
 30    of  subsection (3) of this section, shall be eligible for cash compensation or
 31    compensatory time off from duty for overtime work, subject to the restrictions
 32    of applicable federal law. Compensatory time off may be provided  in  lieu  of
 33    cash  compensation at the discretion of the appointing authority after consul-
 34    tation, in advance, with the employee. Compensatory time off shall be paid  at
 35    the rate of one and one-half (1 1/2) hours for each overtime hour worked. Com-
 36    pensatory time off which has been earned during any one-half (1/2) fiscal year
 37    but  not  taken by the end of the succeeding one-half (1/2) fiscal year, shall
 38    be paid in cash on the first payroll following the close  of  such  succeeding
 39    one-half  (1/2) fiscal year. Compensatory time not taken at the time of trans-
 40    fer to another appointing authority or  upon  separation  from  state  service
 41    shall  be  liquidated at the time of such transfer or separation by payment in
 42    cash.
                                                                        
 43        SECTION 6.  That Section 67-3511, Idaho Code, be, and the same  is  hereby
 44    amended to read as follows:
                                                                        
 45        67-3511.  TRANSFER  OF  LEGISLATIVE  APPROPRIATIONS. (1) No appropriations
 46    made by the Idaho legislature may be  transferred  from  one  object  code  to
 47    another  except with the consent of the state board of examiners upon applica-
 48    tion duly made by the head of any department, office  or  institution  of  the
 49    state  (including  the  elected  officers  in the executive department and the
 50    state board of education). No appropriation made for expenses other than  per-
 51    sonnel  costs  shall be expended for personnel costs of the particular depart-
 52    ment, office or institution for which it is  appropriated,  provided  however,
 53    that  employee  suggestion  awards  made  pursuant  to  sections  59-1603  and
                                                                        
                                           7
                                                                        
  1    67-5309D,  Idaho  Code,  may be made from the object code in which the savings
  2    were realized.
  3        (2)  Legislative appropriations may be transferred  from  one  program  to
  4    another within an agency upon application duly made by the head of any depart-
  5    ment,  office  or  institution of the state and approval of the application by
  6    the administrator of the division of financial management  and  the  board  of
  7    examiners  provided  the requested transfer is not more than ten per cent per-
  8    cent (10%) cumulative change from the  appropriated  amount  for  any  program
  9    affected  by  the  transfer. Requests for transfers above ten per cent percent
 10    (10%) cumulative change must, in addition to the above, be approved by  legis-
 11    lative appropriation. Legislative appropriations shall not be transferred from
 12    one fund to another fund unless expressly approved by the legislature.
 13        (3)  All  moneys  appropriated to any agency of the state of Idaho for the
 14    purpose of capital outlay shall be used for that purpose and not for any other
 15    purpose.
 16        (4)  The joint finance-appropriations committee may limit  the  amount  of
 17    legislative  appropriations  for  personnel  costs which can be transferred to
 18    other object codes.
                                                                        
 19        SECTION 7.  That Section 67-5302, Idaho Code, be, and the same  is  hereby
 20    amended to read as follows:
                                                                        
 21        67-5302.  DEFINITIONS.  As used in this chapter, and other applicable sec-
 22    tions of the Idaho Code, each of the terms defined in this section shall  have
 23    the  meaning  given  in  this  section  unless  a different meaning is clearly
 24    required by the context. Such terms and their definitions are:
 25        (1)  "Administrative employee" means any person, nonclassified or  classi-
 26    fied appointed to a position which meets the following criteria:
 27        1.(a)  (ai)   Responsible office or nonmanual work directly related to the
 28             management policies of a department or section; or
 29             (bii)  Responsible work that is directly related to academic instruc-
 30             tion  or training carried on in the administration of a school system
 31             or educational establishment; and
 32        2.(b)  The employee must customarily and regularly exercise discretion and
 33        independent judgment, as distinguished from  using  skills  and  following
 34        procedures.  The  employee must have the authority to make important deci-
 35        sions; and
 36        3.(c)  The employee must:
 37             (ai)  Regularly  assist  a  bona  fide  executive  or  administrative
 38             employee; or
 39             (bii)  Perform work under general supervision  along  specialized  or
 40             technical  lines requiring special training, experience or knowledge;
 41             or
 42             (ciii)  Execute under only general supervision  special  assignments;
 43             and
 44        4.(d)  The employee is classified to a position allocated to the pay grade
 45        equivalent  to  two  hundred  sixty (260) points or higher pursuant to the
 46        rating system established by section 67-5309C, Idaho Code rule.
 47        5.(e)  Final designation of  a  classified  position  as  "administrative"
 48        within  this definition shall be made by the administrator of the division
 49        of human resources.
 50        (2)  "Administrator" means the administrator  of  the  division  of  human
 51    resources in the governor's office.
 52        (3)  "Appointing  authority"  means the officer, board, commission, person
 53    or group of persons authorized by statute or lawfully delegated  authority  to
                                                                        
                                           8
                                                                        
  1    make appointments to or employ personnel in any department.
  2        (4)  "Class"  means  a  group of positions  sufficiently similar as to the
  3    duties  performed,  degree  of  supervision  exercised  or  required,  minimum
  4    requirements of training, experience or skill, and other characteristics, that
  5    the same title, the same tests of fitness and the same schedule  of  compensa-
  6    tion may be applied to each position in the group.
  7        (5)  "Classified  officer  or  employee"  means any person appointed to or
  8    holding a position in any department of the state of Idaho which  position  is
  9    subject  to  the  provisions   of the merit examination, selection, retention,
 10    promotion and dismissal requirements of chapter 53, title 67, Idaho Code.
 11        (6)  "Commission" means the Idaho personnel commission.
 12        (7)  "Compensatory time" means approved time off  from  duty  provided  in
 13    compensation for overtime hours worked.
 14        (8)  "Department"  means  any department, agency, institution or office of
 15    the state of Idaho.
 16        (9)  "Disabled veteran" means an individual who  has  served  on  military
 17    duty  in the armed forces of the United States during any period of war recog-
 18    nized by the United States department of veterans affairs for the purposes  of
 19    awarding  federal  veterans benefits as may be defined in title 38, U.S. code,
 20    chapter 1, section 101(11), or during any other  conflict  recognized  by  the
 21    award  of a campaign or service medal of the United States; and has been sepa-
 22    rated therefrom under honorable conditions; and has  established  the  present
 23    existence  of  a  service-connected disability; and is receiving compensation,
 24    disability retirement benefits, or pension under a public statute as  adminis-
 25    tered by the department of veterans affairs or a military department.
 26        (10) "Earned  administrative leave" means hours which exceed the regularly
 27    scheduled hours but do not result in overtime. These hours  may  accrue  after
 28    hours  worked  and hours on paid leave exceed forty (40) hours in one (1) work
 29    week.
 30        (11) "Eligible" means a person who has been determined to be qualified for
 31    a classified position and whose name has been placed on the register of eligi-
 32    bles.
 33        (12) "Executive employee" means any person, nonclassified  or  classified,
 34    appointed  to  a position equivalent to a bureau chief or above as provided in
 35    section 67-2402, Idaho Code, or any employee meeting the following criteria:
 36        1.(a)  An individual whose primary duty is  management  of  a  department,
 37        division or section bureau; and
 38        2.(b)  Who  customarily and regularly directs the work of at least two (2)
 39        or more other employees therein; and
 40        3.(c)  Who has the authority to hire and fire, or to recommend hiring  and
 41        firing;  or  whose  recommendation  on  these  and other actions affecting
 42        employees is given particular weight; and
 43        4.(d)  Who customarily and regularly exercises discretionary powers; and
 44        5.(e)  Who is classified to a position allocated to the pay grade  equiva-
 45        lent  to  two  hundred sixty (260) points or higher pursuant to the rating
 46        system established by section 67-5309C, Idaho Code rule.
 47        6.(f)  Final designation of a classified position as "executive"  in  this
 48        definition shall be made by the administrator.
 49        (13) "Exempt  employee"  means  any employee, classified or nonclassified,
 50    who is determined to be an executive, professional or administrative  employee
 51    as  defined herein, or who qualifies for any other exemption from cash compen-
 52    sation for overtime under applicable federal law. Final designation of a clas-
 53    sified position as exempt shall be made by the administrator.
 54        (14) "Full-time employee" means any employee working  a  forty  (40)  hour
 55    work week.
                                                                        
                                           9
                                                                        
  1        (15) "Holiday" means the following:
  2             January 1 (New Year's Day);
  3             Third  Monday  in January (Martin Luther King, Jr.-Idaho Human Rights
  4             Day);
  5             Third Monday in February (Washington's Birthday);
  6             Last Monday in May (Memorial Day);
  7             July 4 (Independence Day);
  8             First Monday in September (Labor Day);
  9             Second Monday in October (Columbus Day);
 10             November 11 (Veterans Day);
 11             Fourth Thursday in November (Thanksgiving);
 12             December 25 (Christmas).
 13    In addition, the term "holiday" shall mean any day so designated by the Presi-
 14    dent of the United States or the governor of this state  for  a  public  fast,
 15    thanksgiving or holiday.
 16        In  the  event  that  a holiday occurs on a Saturday, the preceding Friday
 17    shall be a holiday, and if the holiday falls on a Sunday, the following Monday
 18    shall be a holiday.
 19        A holiday is a day of exemption from work granted to nonexecutive  employ-
 20    ees  during  which  said  employees  shall  be compensated as if they actually
 21    worked. Employees classified as executive exempt are entitled to ten (10) paid
 22    holidays per year. If such an employee works on one (1) of the official  holi-
 23    days listed in this subsection, then such employee may take an alternative day
 24    off but shall not receive additional compensation.
 25        (16) "Hours worked" means those hours actually spent in the performance of
 26    the  employee's job on any day including holidays, and shall not include vaca-
 27    tion or sick leave or other approved leave of absence.
 28        (17) "Nonclassified employee" means any person appointed to or  holding  a
 29    position  in  any department of the state of Idaho, which position is exempted
 30    from the provisions of chapter 53, title 67, Idaho Code, as  provided  for  in
 31    section 67-5303, Idaho Code.
 32        (18) "Normal work week" means any forty (40) hours worked during a partic-
 33    ular  one  hundred  sixty-eight (168) hour period as previously established by
 34    the employee's appointing authority.
 35        (19) "Open competitive examination" means  an  examination  which  may  be
 36    taken  by qualified applicants to compete on an equal basis for listing on the
 37    register of eligibles.
 38        (20) "Overtime work" means time worked on  holidays  and  time  worked  in
 39    excess  of  forty (40) hours in a period of one hundred sixty-eight (168) con-
 40    secutive hours, except that in the case of  those  employees  engaged  in  law
 41    enforcement,  correctional  and  fire  protection  activities characterized by
 42    irregular shift work schedules, time worked in excess  of  one  hundred  sixty
 43    (160) hours in a period of twenty-eight (28) consecutive days shall constitute
 44    overtime work within the meaning of this chapter.
 45        (21) "Participating department" means any department of the state of Idaho
 46    which  employs  persons  in classified positions subject to the merit examina-
 47    tion, selection, retention, promotion and dismissal requirements of this chap-
 48    ter.
 49        (22) "Part-time employee" means any employee whose usually scheduled  work
 50    is  less  than  forty  (40) hours in a period of one hundred sixty-eight (168)
 51    consecutive hours.
 52        (23) "Personnel system" means the procedure for administering employees in
 53    accordance with this chapter.
 54        (24) "Political office" means a public office for which partisan  politics
 55    is a basis for nomination, election or appointment.
                                                                        
                                           10
                                                                        
  1        (25) "Political  organization" means a party which sponsors candidates for
  2    election to political office.
  3        (26) "Position" means a  group  of  duties  and  responsibilities  legally
  4    assigned  or delegated by one (1) or more appointing authorities and requiring
  5    the employment of one (1) person.
  6        (27) "Professional  employee"  means  any person, nonclassified or classi-
  7    fied, appointed to a position which meets the following criteria:
  8        1.(a)  The employee's primary duty must be either:
  9             (ai)   Work requiring knowledge of an advanced type  in  a  field  of
 10             science  or  learning,  customarily obtained by a prolonged course of
 11             specialized instruction and study; or
 12             (bii)  Work that is original and creative in character  in  a  recog-
 13             nized field of artistic endeavor and the result of which depends pri-
 14             marily on his invention, imagination, or talent; or
 15             (ciii) Work  as a teacher certified or recognized as such in a school
 16             system or educational institution by which he is employed; and
 17        2.(b)  The employee must consistently exercise  discretion  and  judgment;
 18        and
 19        3.(c)  The  employee  must  do work that is predominantly intellectual and
 20        varied, as distinguished from routine or mechanical duties; and
 21        4.(d)  The employee is classified to a position allocated to the pay grade
 22        equivalent to two hundred sixty (260) points or  higher  pursuant  to  the
 23        rating system established in section 67-5309C, Idaho Code by rule.
 24        5.(e)  Final designation of a classified position as "professional" within
 25        this definition shall be made by the administrator.
 26        (28) "Provisional  appointment" means appointment to a classified position
 27    pending the establishment of a register for such position and employment shall
 28    not be continued in this status longer than thirty (30) days after  establish-
 29    ment of a register.
 30        (29) "Qualifying  examination" means an examination or evaluation given to
 31    a selected person to determine eligibility for reclassification or appointment
 32    to a position in a classification.
 33        (30) "Register" means a list of names of persons who have been  determined
 34    to  be  eligible  for employment in a classified position as determined on the
 35    basis of examination and merit factors as established by the administrator.
 36        (31) "Seasonal appointment" means an appointment to a  position  which  is
 37    permanent  in  nature,  but which has intermittent work periods throughout the
 38    year.
 39        (32) "Service rating" means a recorded evaluation of work performance  and
 40    promotional potential of an employee by his supervisor.
 41        (33) "Temporary  appointment" means appointment to a position which is not
 42    permanent in nature, and in which employment  will  not  exceed  one  thousand
 43    three  hundred  eighty-five (1,385) hours during any twelve (12) month period.
 44    No person holding a temporary appointment may work in excess of  one  thousand
 45    three  hundred  eighty-five (1,385) hours during a twelve (12) month period of
 46    time for any one (1)  department,  except  upon  petition  by  the  appointing
 47    authority  of the department of lands that demonstrates good cause, the admin-
 48    istrator of the division of human resources  may extend the one thousand three
 49    hundred eighty-five (1,385) hour limit for employees of the department who are
 50    required to perform fire suppression activities.
 51        (34) "Vacation leave" means a period of exemption  from  work  granted  to
 52    employees  during  which  time  said  employees shall be compensated. The term
 53    shall not include compensatory time for overtime work.
 54        (35) "Veteran" means any person who has served in the  active  service  of
 55    the  armed  forces of the United States during any period of war recognized by
                                                                        
                                           11
                                                                        
  1    the United States  department of veterans affairs for the purpose of  awarding
  2    federal veterans benefits as may be defined in title 38, U.S. code, chapter 1,
  3    section   101(11),  or  during any other conflict recognized by the award of a
  4    campaign or service medal of the United States, and who  has  been  discharged
  5    under other than dishonorable conditions.
                                                                        
  6        SECTION  8.  That  Section 67-5309, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        67-5309.  RULES OF THE DIVISION OF HUMAN RESOURCES AND THE PERSONNEL  COM-
  9    MISSION.  The  administrator of the division of human resources shall have the
 10    power and authority to adopt, amend, or rescind such rules as may be necessary
 11    for proper administration of this chapter. Such rules shall include:
 12        (a)  A rule  requiring  the  administrator,  after  consulting  with  each
 13    department  to develop, adopt, and make effective, a job classification system
 14    for positions covered by this chapter, based upon an analysis  of  the  duties
 15    and responsibilities of the positions. The job classification shall include an
 16    appropriate title for each class, and a description of duties and responsibil-
 17    ities  of  positions  in the classes and the requirements of minimum training,
 18    experience and other qualifications, suitable for the performance of duties of
 19    the position.
 20        (b)  A rule describing the relevant labor markets and benchmark job  clas-
 21    sifications used in the administrator's salary surveys.
 22        (c)  A  rule  requiring  that all classes of positions which are common to
 23    the departments concerned shall have the same titles, minimum requirements and
 24    compensation ranges.
 25        (d)  A rule providing for review by the  administrator  of  the  personnel
 26    system including classifications and compensation policies and procedures.
 27        (e)  A  rule that, notwithstanding the procedure for examination and rank-
 28    ing of eligibles on a register provided in subsection (f) of this section,  an
 29    agency may appoint an individual directly into an entrance or promotional pro-
 30    bation  if the division of vocational rehabilitation, Idaho commission for the
 31    blind and visually impaired or the industrial commission certifies,  with  the
 32    concurrence  of division of human resources staff, that the individual (1) has
 33    a disability or handicap as defined under state or federal law; (2) is  quali-
 34    fied  to  perform  the essential functions of a particular classified position
 35    with or without reasonable accommodation; and (3) lacks competitiveness in the
 36    examination process due to the disability or handicap. The probationary period
 37    as provided in subsection (j) of this section shall be  the  sole  examination
 38    for such individuals.
 39        (f)  A  rule  requiring  fair and impartial selection of appointees to all
 40    positions other than those defined as nonclassified in this  chapter,  on  the
 41    basis  of  open  competitive merit examinations or evaluations. An application
 42    for an examination will be accepted after the closing date of the  examination
 43    from  a person who was serving in the armed forces, or undergoing hospitaliza-
 44    tion of no more than one (1) year following discharge, during  any  period  in
 45    which  the  examination was open; the application must be submitted within one
 46    hundred twenty (120) days of separation from the armed forces or  hospitaliza-
 47    tion  and  prior  to the expiration of the register established as a result of
 48    the examination. A disabled veteran may file an application at  any  time  for
 49    any position for which the division maintains a register or for which a regis-
 50    ter  is about to be established, provided he or she has not already been exam-
 51    ined twice for the same position and grade for which application is made, does
 52    not have current eligibility on that  register, or is not serving in a compet-
 53    itive position in the same grade for which application is  made.  Examinations
                                                                        
                                           12
                                                                        
  1    may  be  assembled or unassembled and may include various examining techniques
  2    such as rating of training and experience,  written  tests,  oral  interviews,
  3    recognition  of  professional licensing, performance tests, investigations and
  4    any other measure of ability to perform the duties of the  position.  Examina-
  5    tions  shall  be  scored  objectively.  Five  (5) points shall be added to the
  6    earned rating of any war veteran as defined in section 65-506, Idaho Code, and
  7    the widow or widower of any war veteran as defined in  section  65-506,  Idaho
  8    Code,  as  long  as  he  or she remains unmarried. Pursuant to section 65-506,
  9    Idaho Code, ten (10) points shall be added to the earned rating  of  any  dis-
 10    abled  veteran,  the widow or widower of any disabled veteran as long as he or
 11    she remains unmarried or the spouse of any disabled veteran who is  physically
 12    unable  to perform the work in the position to which the spouse seeks to apply
 13    the preference. Employment registers shall be established in  order  of  final
 14    score except that the names of all five (5) point preference eligibles result-
 15    ing  from any merit system or civil service examination shall be placed on the
 16    register in accordance with their augmented rating, and the names of  all  ten
 17    (10)  point  preference  eligibles  shall be placed at the top of the register
 18    above the names of all nonpreference eligibles. Certification  of  eligibility
 19    for  appointment to vacancies shall be in accordance with a formula which lim-
 20    its selection by the hiring department from among the  ten  (10)  top  ranking
 21    available eligibles plus the names of all individuals with scores identical to
 22    the  tenth ranking eligible on the register. A register with at least five (5)
 23    eligibles shall be adequate. Selective certification shall be  permitted  when
 24    justified  by  the  hiring  department, under rules to be made by the division
 25    defining adequate justification based on the duties and  requirements  of  the
 26    positions.  Such examinations need not be held until after the rules have been
 27    adopted, the service classified and a pay plan established, but shall be  held
 28    not  later  than  one (1) year after departments commence participation in the
 29    personnel system.
 30        (g)  A rule that, whenever practicable, a vacancy in a classified position
 31    shall be filled by the promotion of a  qualified  permanent  employee  of  the
 32    agency  in  which  the  vacancy occurs. An interagency promotion shall be made
 33    through competitive examination and all qualified state employees  shall  have
 34    the  opportunity to compete for such promotions. If an employee's name appears
 35    within certifiable range on a current register for a higher class of position,
 36    he shall be eligible for a transfer and promotion.
 37        (h)  A rule for development and maintenance of a system of service ratings
 38    and the use of such ratings by all departments in connection with  promotions,
 39    demotions,  retentions,  separations and reassignments. The rule shall require
 40    that an evaluation of each classified employee shall be made  after  each  two
 41    thousand eighty (2,080) hour period of credited state service, and that a copy
 42    of the evaluation shall be filed with the division.
 43        (i)  A  rule  prohibiting  disqualification  of  any person from taking an
 44    examination, from appointment to a position, from promotion, or from holding a
 45    position because of race or national origin, color,  sex,  age,  political  or
 46    religious opinions or affiliations, and providing for right of appeal.
 47        (j)  A  rule  establishing  a  probation period not to exceed one thousand
 48    forty (1,040) hours of credited state service for all appointments and  promo-
 49    tions,  except  that peace officers as defined in section 19-5101, Idaho Code,
 50    shall be subject to a probation period of two thousand eighty (2,080) hours of
 51    credited state service, and  for  the  appointing  authority  to  provide  the
 52    employee  and  the administrator a performance evaluation indicating satisfac-
 53    tory or unsatisfactory performance not later than thirty (30) days  after  the
 54    expiration  of  the  probationary   period. The rule shall provide that if the
 55    appointing authority fails to provide a performance evaluation  within  thirty
                                                                        
                                           13
                                                                        
  1    (30)  days after the expiration of the probationary period, the employee shall
  2    be deemed to have satisfactorily completed the probation unless the appointing
  3    authority receives approval from the administrator to extend the  probationary
  4    period  for  good  cause  for an additional specified period not to exceed one
  5    thousand forty (1,040) hours of credited state service. If an employee is per-
  6    forming in an unsatisfactory manner during the entrance  probationary  period,
  7    the  appointing authority shall ask the employee to resign, and if no resigna-
  8    tion is submitted, shall terminate the employment of such employee without the
  9    right of grievance or appeal.
 10        (k)  A rule concerning provisional appointments.
 11        (l)  A rule concerning temporary appointments.
 12        (m)  A rule governing the employment of consultants and  persons  retained
 13    under independent contract.
 14        (n)  A  rule for the disciplinary dismissal, demotion, suspension or other
 15    discipline of employees only for cause with reasons  given  in  writing.  Such
 16    rule shall provide that any of the following reasons shall be proper cause for
 17    the  disciplinary  dismissal,  demotion  or  suspension of any employee in the
 18    state classified service:
 19        1.  Failure to perform the duties and carry out the obligations imposed by
 20        the state constitution, state statutes and rules of the employee's depart-
 21        ment, or rules of the administrator or the division.
 22        2.  Inefficiency,  incompetency,  or  negligence  in  the  performance  of
 23        duties, or job performance that  fails  to  meet  established  performance
 24        standards.
 25        3.  Physical or mental incapability for performing assigned duties.
 26        4.  Refusal  to  accept  a reasonable and proper assignment from an autho-
 27        rized supervisor.
 28        5.  Insubordination or conduct unbecoming a state employee or conduct det-
 29        rimental to good order and discipline in the employee's department.
 30        6.  Intoxication on duty.
 31        7.  Careless, negligent, or improper use or unlawful conversion  of  state
 32        property, equipment or funds.
 33        8.  Use of any influence which violates the principles of the merit system
 34        in  an  attempt  to secure a promotion or privileges for individual advan-
 35        tage.
 36        9.  Conviction of official misconduct in office, or conviction of any fel-
 37        ony, or conviction of any other crime involving moral turpitude.
 38        10. Acceptance of gifts in exchange for influence or favors given  in  the
 39        employee's official capacity.
 40        11. Habitual  pattern  of failure to report for duty at the assigned place
 41        and time.
 42        12. Habitual improper use of sick leave privileges.
 43        13. Unauthorized disclosure  of  confidential  information  from  official
 44        records.
 45        14. Absence without leave.
 46        15. Misstatement or deception in the application for the position.
 47        16. Failure  to  obtain  or maintain a current license or certificate law-
 48        fully required as a condition for performing the duties of the job.
 49        17. Prohibited participation in political activities.
 50        (o)  A rule to establish procedures for maintenance of  a  record  of  the
 51    employment  history and appropriate information relating to performance of all
 52    employees under the personnel system. For the purposes of this rule, the state
 53    shall be considered one (1) employer.
 54        (p)  Rules to provide for recruitment programs in cooperation with depart-
 55    ment heads and the employment security agency in keeping with current  employ-
                                                                        
                                           14
                                                                        
  1    ment conditions and labor market trends.
  2        (q)  Rules  to  establish procedures for examinations as necessary for the
  3    purpose of maintaining current registers from which to fill employment  vacan-
  4    cies.
  5        (r)  Other  rules  not  inconsistent with the foregoing provisions of this
  6    section as may be necessary and proper for the administration and  enforcement
  7    of this chapter.
  8        (s)  A rule concerning "project exempt" appointments.
  9        (t)  Rules  relating  to  leave  for  state employees from official duties
 10    including, but not limited to, sick leave, military leave, jury  duty,  leaves
 11    of  absence  without compensation and such other forms of absence from perfor-
 12    mance of duties in the course of state employment as may be necessary.
 13        (u)  A rule providing for five percent  (5%)  up  to  twenty-five  percent
 14    (25%) shift differential pay based on local market practices.
 15        (v)  A  rule  to  establish  guidelines  for  awarding employee suggestion
 16    awards set forth in sections 59-1603 and 67-5309D, Idaho Code.
 17        (w)  A rule to establish the reimbursement of moving expenses for  a  cur-
 18    rent or newly-hired state employee.
 19        (x)  A  rule  to allow, at the request of the hiring agency, temporary and
 20    acting appointment service time to count toward fulfilling entrance probation-
 21    ary requirements as established in section 67-5309(j), Idaho Code.
                                                                        
 22        SECTION 9.  That Section 67-5309A, Idaho Code, be, and the same is  hereby
 23    repealed.
                                                                        
 24        SECTION  10.  That  Chapter  53, Title 67, Idaho Code, be, and the same is
 25    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 26    ignated as Section 67-5309A, Idaho Code, and to read as follows:
                                                                        
 27        67-5309A.  STATE  EMPLOYEE  COMPENSATION  PHILOSOPHY.  (1)  It  is  hereby
 28    declared  to  be  the intent of the legislature of the state of Idaho that the
 29    goal of a total compensation system for state employees shall  be  to  fund  a
 30    competitive employee compensation and benefit package that will attract quali-
 31    fied  applicants  to the work force; retain employees who have a commitment to
 32    public service excellence; motivate employees to maintain  high  standards  of
 33    productivity; and reward employees for outstanding performance.
 34        (2)  The  foundation  for this philosophy recognizes that state government
 35    is a service enterprise in which the state work force provides the most criti-
 36    cal role for Idaho citizens. Maintaining a competitive compensation system  is
 37    an  integral,  necessary  and expected cost of providing the delivery of state
 38    services and is based on the following compensation standards:
 39        (a)  The state's overall compensation system, which includes both a salary
 40        and a benefit component, when taken as a whole shall be  competitive  with
 41        relevant labor market averages.
 42        (b)  Advancement  in  pay  shall  be  based  on job performance and market
 43        changes.
 44        (c)  Pay for performance  shall  provide  faster  salary  advancement  for
 45        higher  performers based on a merit increase matrix developed by the divi-
 46        sion of human resources.
 47        (d)  All employees below the state's midpoint market average in  a  salary
 48        range  who are meeting expectations in the performance of their jobs shall
 49        move through the pay range toward the midpoint market average.
 50        (3)  It  is  hereby  declared  to be legislative intent that regardless of
 51    specific budgetary conditions from year to year, it is vital to fund necessary
 52    compensation adjustments each year to maintain market competitiveness  in  the
                                                                        
                                           15
                                                                        
  1    compensation  system. In order to provide this funding commitment in difficult
  2    fiscal conditions, it may be necessary to increase revenues, or to  prioritize
  3    and  eliminate certain functions or programs in state government, or to reduce
  4    the overall number of state employees in a given year, or any  combination  of
  5    such methods.
                                                                        
  6        SECTION 11.  That Section 67-5309B, Idaho Code, be, and the same is hereby
  7    repealed.
                                                                        
  8        SECTION  12.  That  Chapter  53, Title 67, Idaho Code, be, and the same is
  9    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 10    ignated as Section 67-5309B, Idaho Code, and to read as follows:
                                                                        
 11        67-5309B.  IDAHO COMPENSATION PLAN. (1)  The administrator of the division
 12    of  human  resources  shall  establish benchmark job classifications and shall
 13    assign all classifications to a pay grade utilizing the Hay profile method  in
 14    combination  with market data. Pay grades established or revised by the admin-
 15    istrator shall appropriately weigh Hay points and market data to ensure inter-
 16    nal equity and market equity within the classified service.
 17        (2)  It shall be the responsibility of each department director to prepare
 18    a department salary administration plan and  corresponding  budget  plan  that
 19    supports  the core mission of the department and is consistent with the provi-
 20    sions of section 67-5309A, Idaho Code.
 21        (3)  Advancement in pay shall be based on performance and  market  changes
 22    and be provided in a variety of delivery methods, including ongoing increases,
 23    temporary  increases  and market related payline moves. Market related payline
 24    moves may advance all eligible employees as well as  the  structure  to  avoid
 25    compression in the salary system.
 26        (4)  Pay  for  performance  shall  provide  faster  salary advancement for
 27    higher performers based on a merit increase matrix developed by  the  division
 28    of  human  resources. Such matrix shall be based upon the employee's proximity
 29    to the state midpoint market average, and the employee's relative performance.
 30    Such matrix may be adapted by each agency to  meet  its  specific  needs  when
 31    approved by the division of human resources.
 32        (5)  No  employee  shall  advance  in a salary range without a performance
 33    evaluation on file certifying that the employee meets the performance criteria
 34    of the assigned position.
 35        (6)  Each employee's work performance shall be evaluated through a  format
 36    and  process  approved  by the department and the division of human resources.
 37    The employee shall be evaluated after one  thousand  forty  (1,040)  hours  of
 38    credited  state service from the date of initial appointment or promotion, and
 39    thereafter be evaluated after each two thousand eighty (2,080) hours of  cred-
 40    ited state service. Employees may be eligible for advancement in pay if certi-
 41    fied  as  meeting  the performance requirements of this section. However, such
 42    in-grade advancement shall not be construed as a vested right. The  department
 43    director  shall designate in writing whether such in-grade advancement is tem-
 44    porary, conditional or permanent. It shall be the specific  responsibility  of
 45    the  employee's  immediate  supervisor  to effect the evaluation process. Such
 46    evaluation shall be approved by the department director or the director's des-
 47    ignee.
 48        (7)  All supervisors who evaluate state employees shall  receive  training
 49    in the evaluation format and process to assure fairness and consistency in the
 50    evaluation process.
 51        (8)  Notwithstanding  any  other  provision  of  Idaho  Code, it is hereby
 52    declared to be the policy of the legislature of the state of  Idaho  that  all
                                                                        
                                           16
                                                                        
  1    classified  employees of like classification and pay grade allocation shall be
  2    treated in a substantially similar manner with reference  to  personnel  bene-
  3    fits.
                                                                        
  4        SECTION 13.  That Section 67-5309C, Idaho Code, be, and the same is hereby
  5    repealed.
                                                                        
  6        SECTION  14.  That  Chapter  53, Title 67, Idaho Code, be, and the same is
  7    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  8    ignated as Section 67-5309C, Idaho Code, and to read as follows:
                                                                        
  9        67-5309C.  ANNUAL  SURVEYS, REPORTS AND RECOMMENDATIONS. (1)  The adminis-
 10    trator of the division of human resources shall conduct or approve annual sal-
 11    ary and benefit surveys within relevant  labor  markets  to  determine  salary
 12    ranges  and  benefit  packages that represent competitive labor market average
 13    rates and benefits provided by private industry and other governmental units.
 14        (2)  A report of the results of the annual salary and benefit surveys  and
 15    recommendations  for  changes  to  meet  the requirements of section 67-5309A,
 16    Idaho Code, together with their estimated costs of  implementation,  shall  be
 17    submitted  to the governor and the legislature not later than the first day of
 18    December of each year. The recommendation shall include, at  a  minimum,  four
 19    (4)  components  to  address  the compensation philosophy described in section
 20    67-5309A, Idaho Code, and shall include specific funding  recommendations  for
 21    each component:
 22        (a)  A recommendation for market related changes necessary to address sys-
 23        tem  wide  structure  adjustments  to stay competitive with relevant labor
 24        markets. Such recommendation may include a market related payline  adjust-
 25        ment  for  all eligible employees, as well as the structure, to avoid com-
 26        pression in the salary system.
 27        (b)  A recommendation for market related changes necessary to address spe-
 28        cific occupational inequities.
 29        (c)  A recommendation for a merit  increase  component  to  recognize  and
 30        reward  state  employees in the performance of public service to the citi-
 31        zens of Idaho.
 32        (d)  A recommendation for any changes to  the  employee  benefit  package,
 33        including  any  adjustments  to  the overall design of the benefit package
 34        and/or employee contributions.
 35        (3)  The governor shall submit his own recommendations on proposed changes
 36    in salaries and benefits to the legislature prior to the  seventh  legislative
 37    day of each session. Such recommendation shall address, at a minimum, the four
 38    (4) components and subsequent funding for each component required in this sec-
 39    tion.
 40        (4)  The  legislature  may,  by  concurrent  resolution, accept, modify or
 41    reject the governor's recommendations, but any such action by the legislature,
 42    at a minimum, shall address the four (4) components and subsequent funding  of
 43    each  component  required  in  this section. The failure of the legislature to
 44    accept, modify or reject the recommendations prior  to  adjournment  sine  die
 45    shall  constitute  approval of the governor's recommendations, and such recom-
 46    mendations shall be funded through appropriations provided by law. The  admin-
 47    istrator  of  the  division  of  human resources shall implement necessary and
 48    authorized changes to salary and pay schedule by rule.  The  director  of  the
 49    department  of administration shall implement necessary and authorized changes
 50    to benefits.
                                                                        
 51        SECTION 15.  That Chapter 53, Title 67, Idaho Code, be, and  the  same  is
                                                                        
                                           17
                                                                        
  1    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
  2    ignated as Section 67-5309D, Idaho Code, and to read as follows:
                                                                        
  3        67-5309D.  OTHER PAY DELIVERY OPTIONS. (1) In addition  to  pay  increases
  4    authorized  in section 67-5309B, Idaho Code, the department director may grant
  5    a classified employee bonus pay not to exceed two thousand dollars ($2,000) in
  6    any given fiscal year based upon exemplary performance. Exceptions to the  two
  7    thousand  dollar ($2,000) limit provided in this subsection (1) may be granted
  8    in extraordinary circumstances if approved in advance by the  state  board  of
  9    examiners. Departments shall submit a report to the division of financial man-
 10    agement  and  the  legislative  services  office  by  October 1 on all bonuses
 11    granted in the preceding fiscal year.
 12        (2)  In addition to pay increases authorized in  section  67-5309B,  Idaho
 13    Code, the department director may grant a classified employee an award payment
 14    based  upon suggestions or recommendations made by the employee which resulted
 15    in taxpayer savings as a result of cost savings or greater efficiencies to the
 16    department or to the state of Idaho in excess of the amount of the award,  and
 17    in compliance with the rules for employee suggestion awards promulgated by the
 18    division of human resources. The award may be an amount up to twenty-five per-
 19    cent (25%) of the amount determined to be the dollar savings to the state, but
 20    not in excess of two thousand dollars ($2,000). Exceptions to the two thousand
 21    dollar  ($2,000)  limit  provided  in  this  subsection  (2) may be granted in
 22    extraordinary circumstances if approved in advance by the state board of exam-
 23    iners. Departments shall submit a report to the division of financial  manage-
 24    ment  and the legislative services office by October 1 on all employee sugges-
 25    tion awards granted in the preceding fiscal year. Such  report  shall  include
 26    any  changes  made  as a direct result of an employee's suggestion and savings
 27    resulting therefrom.
 28        (3)  In addition to pay increases authorized in  section  67-5309B,  Idaho
 29    Code, the department director may grant award pay to a classified employee for
 30    recruitment  or  retention purposes upon completion of at least six (6) months
 31    of achieving performance standards. Departments shall submit a report  to  the
 32    division  of financial management and the legislative services office by Octo-
 33    ber 1 on all such awards granted in the preceding fiscal year.
 34        (4)  In addition to pay increases authorized in  section  67-5309B,  Idaho
 35    Code,  department directors may provide a classified employee other nonperfor-
 36    mance related pay as provided in this subsection (4). Departments shall submit
 37    a report to the division of financial management and the legislative  services
 38    office by October 1 on all such awards 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 of qualified staff are difficult due to economic conditions
 44        and cost of living.
 45        (c)  Employees in the same classification who are similarly situated shall
 46        be treated consistently in respect to shift  differential  and  geographic
 47        pay differential.
 48        (5)  When  necessary to obtain or retain qualified personnel in a particu-
 49    lar classification, upon petition of the department to the administrator  con-
 50    taining  acceptable  reasons  therefor,  a  higher  temporary pay grade may be
 51    authorized by the administrator which, if granted, shall be reviewed  annually
 52    to determine the need for continuance.
 53        (6)  In unusual circumstances, with prior approval from the administrators
 54    of  the  division of human resources and the division of financial management,
                                                                        
                                           18
                                                                        
  1    agencies may grant nonperformance related pay to employees, which in  no  case
  2    may exceed five percent (5%) of an employee's base pay. Departments shall sub-
  3    mit  a report to the division of financial management and the legislative ser-
  4    vices office by October 1 on all such awards granted in the  preceding  fiscal
  5    year.
  6        (7)  Specific  pay  codes shall be established and maintained in the state
  7    controller's office to ensure accurate reporting and  monitoring  of  all  pay
  8    actions authorized in this section.
                                                                        
  9        SECTION  16.  That Section 67-5326, Idaho Code, be, and the same is hereby
 10    repealed.
                                                                        
 11        SECTION 17.  That Sections 67-5328, 67-5329, 67-5330  and  67-5331,  Idaho
 12    Code, be, and the same are hereby amended to read as follows:
                                                                        
 13        67-5328.  OVERTIME COMPENSATION -- ELIGIBILITY HOURS OF WORK AND OVERTIME.
 14    (1)  It is hereby declared to be the policy of the legislature of the state of
 15    Idaho  that  all  classified  employees shall be treated substantially similar
 16    with reference to hours of employment. The policy of this state as declared in
 17    this act shall not restrict the extension of regular work hour schedules on an
 18    overtime basis in those activities and duties where such extension  is  neces-
 19    sary  and  authorized, provided that overtime work performed under such exten-
 20    sion is compensated for as hereinafter provided.
 21        (2)  The appointing authority of any department shall determine the neces-
 22    sity for overtime work and shall provide for cash compensation or compensatory
 23    time off for such overtime work for eligible classified officers  and  employ-
 24    ees, subject to the restrictions of applicable federal law.
 25        67-5329.  CASH FOR OVERTIME -- COMPENSATORY TIME.
 26        (13)  Cash  for  overtime and compensatory time shall be paid based on the
 27    following criteria:
 28        (a)  Classified and nonclassified officers and employees who  fall  within
 29        one  (1)  or more of the following categories are ineligible for cash com-
 30        pensation or compensatory time for overtime work:
 31             (ai)   Elected officials; or
 32             (bii)  Those included in the definition of section 67-5303(j),  Idaho
 33             Code.
 34        (2b)  Classified  and nonclassified employees who are designated as execu-
 35        tive, as provided in section 67-5302, Idaho Code, who  are  designated  as
 36        exempt  under any other complete exemption in federal law, and who are not
 37        included in the definition of subsection (13)(a) of this section, shall be
 38        ineligible for compensatory time or cash compensation for  overtime  work,
 39        but such classified and nonclassified employees shall be allowed compensa-
 40        tory time off from duty for overtime work. Such compensatory time shall be
 41        earned  and allowed on a one (1) hour for one (1) hour basis not to exceed
 42        two hundred forty (240) hours. Accrued compensatory time off earned  under
 43        this section shall not be transferable, and shall be forfeited at the time
 44        of  transfer to another appointing authority or upon separation from state
 45        service. Such salaried employees shall report absences in excess  of  one-
 46        half (1/2) day. Unused compensatory time balances in excess of two hundred
 47        forty  (240)  hours  as of the date of enactment of this act shall be for-
 48        feited on December 31, 2008. Unused compensatory time balances of two hun-
 49        dred forty (240) hours or less shall be forfeited on December 31, 2006.
 50        (3c)  Classified and nonclassified employees who are designated as  admin-
 51        istrative  or professional, as provided in section 67-5302, Idaho Code, or
 52        who are designated as exempt under any other  complete  exemption  in  the
                                                                        
                                           19
                                                                        
  1        federal law fair labor standards act, and who are not included in the def-
  2        inition  of  either subsection (13)(a) or (3)(b) of this section, shall be
  3        ineligible for cash compensation for overtime work unless cash payment  is
  4        authorized by the state board of examiners for overtime accumulated during
  5        unusual  or  emergency  situations,  but such classified and nonclassified
  6        employees shall be allowed compensatory time off from  duty  for  overtime
  7        work. Such compensatory time shall be earned and allowed on a one (1) hour
  8        for  one (1) hour basis, shall not be transferable, and shall be forfeited
  9        at the time of transfer to another appointing authority or upon separation
 10        from state service.
 11        (4d)  Classified employees who are not designated as  executive,  adminis-
 12        trative  or professional as provided in this section, 67-5302, Idaho Code,
 13        who are not designated as exempt under any  other  complete  exemption  in
 14        federal  law,  and  who  are  not included in the definition of subsection
 15        (13)(a) of this section, shall be eligible for cash compensation  or  com-
 16        pensatory  time  off  from duty for overtime work, subject to the restric-
 17        tions of applicable federal law. Compensatory time off may be provided  in
 18        lieu  of  cash  compensation at the discretion of the appointing authority
 19        after consultation, in advance, with the employee. Compensatory  time  off
 20        shall be paid at the rate of one and one-half (1 1/2) hours for each over-
 21        time  hour  worked. Compensatory time off which has been earned during any
 22        one-half (1/2) fiscal year but not taken by the end of the succeeding one-
 23        half (1/2) fiscal year, shall be paid in cash on the first payroll follow-
 24        ing the close of such succeeding one-half (1/2) fiscal year.  Compensatory
 25        time  not taken at the time of transfer to another appointing authority or
 26        upon separation from state service shall be liquidated at the time of such
 27        transfer or separation by payment in cash.
 28        67-5330.  RATE OF OVERTIME COMPENSATION WHEN PAID IN CASH.
 29        (4)  Cash compensation for overtime, when paid, shall be at one  and  one-
 30    half  (1  1/2) times the hourly rate of that officer's or employee's salary or
 31    wage, except for those employees whose positions fall within  the  definitions
 32    of  executive,  administrative  or  professional as stated in section 67-5302,
 33    Idaho Code, who will be paid at their regular hourly rate of pay  as  provided
 34    for in subsection 67-5329, Idaho Code (3) of this section.
 35        67-5331.  OVERTIME COMPENSATION -- WHEN PAID.
 36        (5)  Except  as provided for in subsection 67-5329, Idaho Code (3) of this
 37    section, compensation for authorized overtime work shall be made at  the  com-
 38    pletion  of the pay period next following the pay period in which the overtime
 39    work occurred and shall be added to the regular salary payment.
                                                                        
 40        SECTION 18.  That Sections 67-5333 and 67-5339, Idaho Code,  be,  and  the
 41    same are hereby amended to read as follows:
                                                                        
 42        67-5333.  SICK  LEAVE.  COMPUTATION.  (1)  Sick leave shall be computed as
 43    follows:
 44        (a)  The rate per hour at which sick  leave  shall  accrue  to  classified
 45        officers and employees earning credited state service shall be at the rate
 46        represented  by  the  proportion  96/2080. Sick leave shall accrue without
 47        limit, and shall be transferable from department to department.
 48        (2b)  Sick leave shall not accrue to any officer or employee on  any  kind
 49        of  leave  of  absence without pay, suspension without pay or layoff. Sick
 50        leave shall accrue  while an officer or employee is on approved leave with
 51        pay, on approved vacation leave, on approved military leave with pay,  and
 52        on  approved sick leave, but not when compensatory time or earned adminis-
 53        trative leave is taken.
                                                                        
                                           20
                                                                        
  1        (3c)  All accrued sick leave shall be forfeited at the time of  separation
  2        from  state  service  and  no  officer or employee shall be reimbursed for
  3        accrued sick leave at the  time  of  separation,  except  as  provided  in
  4        subsection  67-5339,  Idaho  Code  (2) of this section. If such officer or
  5        employee returns to credited state service within three (3) years of  such
  6        separation, all sick leave credits accrued at the time of separation shall
  7        be  reinstated,  except  to the extent that unused sick leave was utilized
  8        for the purposes specified in subsection 67-5339, Idaho Code (2)  of  this
  9        section.
 10        (4d)  Sick  leave  shall  be taken on a workday basis. Regularly scheduled
 11        days off and officially designated holidays falling  within  a  period  of
 12        sick  leave  shall not be counted against sick leave. Sick leave shall not
 13        be taken in advance of being earned.
 14        (5e)  In cases where absences for sick leave exceed three (3)  consecutive
 15        working  days, the appointing authority may require verification by a phy-
 16        sician or other authorized practitioner.
 17        (6f)  If an absence for illness or injury extends beyond  the  sick  leave
 18        accrued  to the credit of the officer or employee, the officer or employee
 19        may be granted leave without pay.
 20        (7g)  The administrator shall prescribe additional requirements  for  sick
 21        leave  for  classified  officers and employees on a part-time or irregular
 22        schedule, for maintaining sick leave records, for funeral leave, and  such
 23        other applicable purposes as necessary.
 24        67-5339.  USE OF UNUSED SICK LEAVE.
 25        (12)  Unused sick leave may be used as follows:
 26        (a)  Upon  separation  from  state  employment by retirement in accordance
 27        with chapter 13,  title  59  or  chapter  1,  title  33,  Idaho  Code,  an
 28        employee's unused sick leave shall be determined based on accumulated sick
 29        leave  earned  subsequent  to  July  1, 1976, and shall be reported by the
 30        employer to the public employee retirement system.  Upon  separation  from
 31        state  employment  by  retirement  in accordance with chapter 20, title 1,
 32        Idaho Code, an employee's unused sick leave shall be determined  based  on
 33        accumulated  sick  leave  earned  subsequent to July 1, 2000, and shall be
 34        reported by the employer to the public employee retirement system.  A  sum
 35        equal  to  one-half (1/2), or the maximum amount allowed by subsection (2)
 36        paragraph (b) of this subsection (2), whichever is the lesser, of the mon-
 37        etary value of such unused sick leave, calculated at the rate of  pay  for
 38        such  employee  at  the  time of retirement, shall be transferred from the
 39        sick leave account provided  by  subsection  (3)  paragraph  (c)  of  this
 40        subsection  (2)  and  shall  be  credited  to  such  employee's retirement
 41        account. Such sums shall be used by the Idaho public  employee  retirement
 42        board  to pay premiums for such group health, accident, and life insurance
 43        programs as may be maintained by the state, to the  extent  of  the  funds
 44        credited  to  the  employee's  account  pursuant  to this section. Upon an
 45        employee's death, any unexpended  sums  remaining  in  the  account  shall
 46        revert to the sick leave account.
 47        (2b)  For  the  purposes  of determining the monetary value of unused sick
 48        leave, the maximum unused sick leave which may be considered, shall be:
 49             (ai)   During the first ten thousand four hundred (10,400)  hours  of
 50             credited  state  service,  the maximum unused sick leave which may be
 51             considered shall be four hundred twenty (420) hours;
 52             (bii)  During the second ten thousand four hundred (10,400) hours  of
 53             credited  state  service,  the maximum unused sick leave which may be
 54             considered shall be four hundred eighty (480) hours;
 55             (ciii) During the third ten thousand four hundred (10,400)  hours  of
                                                                        
                                           21
                                                                        
  1             credited  state  service,  the maximum unused sick leave which may be
  2             considered shall be five hundred forty (540) hours; and
  3             (div)  Thereafter, the maximum unused sick leave which may be consid-
  4             ered shall be six hundred (600) hours.
  5        (3c)  Each employer in state government shall contribute to a  sick  leave
  6        account  maintained  by  the public employee retirement system exclusively
  7        for the purpose of the provisions of this section. The rate of  such  con-
  8        tribution each pay period shall consist of a percentage of employees' sal-
  9        aries  as  determined  by  the board, and such rate shall remain in effect
 10        until next determined by the board. Any excess balance in the  sick  leave
 11        account  shall be invested, and the earnings therefrom shall accrue to the
 12        sick leave account except the amount  required  by  the  board  to  defray
 13        administrative  expenses. All moneys payable to the sick leave account are
 14        hereby perpetually appropriated to the board, and shall not be included in
 15        its departmental budget. The state insurance fund and public  health  dis-
 16        tricts  shall  be considered employers in state government for purposes of
 17        participation under this section.
                                                                        
 18        SECTION 19.  That Sections 67-5334, 67-5335 and 67-5337, Idaho  Code,  be,
 19    and the same are hereby amended to read as follows:
                                                                        
 20        67-5334.  VACATION  TIME. COMPUTATION. (1) Vacation time shall be computed
 21    as follows:
 22        (a)  Vacation time shall not accrue to any officer or employee on any kind
 23        of leave of absence without pay, suspension without pay or  layoff.  Vaca-
 24        tion  leave shall accrue while an officer or employee is on approved leave
 25        with pay, on approved vacation leave, on approved military leave with pay,
 26        and on approved sick leave, but  not  when  compensatory  time  or  earned
 27        administrative leave is taken.
 28        (2b)  The  rate  per hour at which vacation leave shall accrue to eligible
 29        classified officers and employees earning credited state service  who  are
 30        covered  and nonexempt under the federal fair labor standards act shall be
 31        at the rate represented by the proportion 96/2080  during  the  first  ten
 32        thousand  four  hundred  (10,400)  hours of credited state service; at the
 33        rate represented by the proportion 120/2080 during the second ten thousand
 34        four hundred (10,400) hours of credited state service; at the rate  repre-
 35        sented  by the proportion 144/2080 during the third ten thousand four hun-
 36        dred (10,400) hours of credited state service; and at the rate represented
 37        by the proportion 168/2080 thereafter.
 38        (c)  Classified officers and employees earning credited state service  and
 39        defined  as  an  exempt  "professional,"  "administrative,"  or  "computer
 40        worker"  under  the  federal fair labor standards act shall be at the rate
 41        represented by the proportion 120/2080 during the first ten thousand  four
 42        hundred  (10,400) hours of credited state service; at the rate represented
 43        by the proportion 144/2080 during the second  ten  thousand  four  hundred
 44        (10,400)  hours  of credited state service; and at the rate represented by
 45        the proportion 168/2080 thereafter.
 46        (d)  Classified officers and employees earning credited state service  and
 47        defined  as an exempt "executive" under section 67-5302, Idaho Code, shall
 48        be at the rate represented by the proportion 200/2080.
 49        67-5335.  VACATION TIME -- ELIGIBILITY -- MAXIMUM TIME -- RIGHT TO  ANNUAL
 50    VACATION.
 51        (12)  Eligibility and use of vacation time shall be determined as follows:
 52        (a)  An appointing authority shall permit each officer or employee to take
 53        vacation leave to the extent such leave has accrued.
                                                                        
                                           22
                                                                        
  1        (2b)  Vacation  leave  may  be  accrued  and  accumulated only as follows,
  2        unless  amounts  in  excess  of  the  permitted  accumulations  have  been
  3        expressly authorized in writing by the board of examiners  during  unusual
  4        or emergency situations:
  5        During  the  first  ten  thousand  four hundred (10,400) hours of credited
  6    state service, vacation leave may be accrued and accumulated to a  maximum  of
  7    one  hundred ninety-two (192) hours; employees classified as "executive" under
  8    section 67-5302, Idaho Code, may accrue and accumulate  vacation  leave  to  a
  9    maximum of two hundred (200) hours during this period;
 10        During  the  second  ten  thousand four hundred (10,400) hours of credited
 11    state service, vacation leave may be accrued and accumulated to a  maximum  of
 12    two hundred forty (240) hours;
 13        During  the  third  ten  thousand  four hundred (10,400) hours of credited
 14    state service, vacation leave may be accrued and accumulated to a  maximum  of
 15    two hundred eighty-eight (288) hours;
 16        After  thirty-one  thousand  two  hundred (31,200) hours of credited state
 17    service, vacation leave may be accrued and accumulated to a maximum  of  three
 18    hundred thirty-six (336) hours.
 19        (3c)  Vacation  leave  shall be transferable from department to department
 20        only to the extent that it is accrued and accumulated.
 21        (4d)  Vacation leave shall not be earned, accrued  or  accumulated  during
 22        any pay period in which the maximum accruals and accumulations provided by
 23        this section have been met.
 24        (5e)  Vacation  leave  not  taken  shall be compensated for at the time of
 25        separation only to the maximum accruals and accumulations allowed by  this
 26        section.
 27        (6f)  Vacation  leave  shall be taken on a workday basis. Regularly sched-
 28        uled days off and officially designated holidays falling within  a  period
 29        of  vacation  leave  shall not be counted against vacation leave. Vacation
 30        leave shall not be taken in advance of being  earned  and  shall  only  be
 31        taken in pay periods subsequent to being earned.
 32        (7g)  With the approval of the appointing authority for both the transfer-
 33        ring  and receiving officer or employee, an officer or employee may trans-
 34        fer accrued vacation leave, up to a maximum of forty (40) hours per fiscal
 35        year, to another officer or employee for purposes of  sick  leave  in  the
 36        event  the receiving officer or employee or a family member suffers from a
 37        serious illness or injury. The amount transferred shall  be  converted  to
 38        sick  leave.  An  officer or employee shall not be allowed to receive more
 39        than one hundred sixty (160) hours of transferred leave per  fiscal  year,
 40        and  a transfer shall not occur until the receiving employee has exhausted
 41        all of his or her accrued sick and vacation leave. An officer or  employee
 42        shall not be eligible to transfer vacation leave unless his or her balance
 43        exceeds  eighty  (80)  hours,  and  in no event may an officer or employee
 44        transfer an amount of accrued leave which would result in an accrued  bal-
 45        ance of less than eighty (80) hours.
 46        67-5337.  CASH FOR UNUSED VACATION TIME.
 47        (3)  Upon  separation  from  state employment and to the limits allowed by
 48    subsection 67-5335, Idaho Code (2) of this section,  all  classified  officers
 49    and employees shall receive a lump sum payment for accrued but unused vacation
 50    leave at the hourly rate of pay of that officer or employee.
                                                                        
 51        SECTION  20.  That  Chapter  53, Title 67, Idaho Code, be, and the same is
 52    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 53    ignated as Section 67-5337, Idaho Code, and to read as follows:
                                                                        
                                           23
                                                                        
  1        67-5337.  MOVING  EXPENSE REIMBURSEMENT. In order for the state to attract
  2    and retain professional staff, it may be necessary to defray normal intrastate
  3    and interstate moving expenses. The head of any department, office or institu-
  4    tion of the state shall have the authority to decide whether or not  to  reim-
  5    burse moving expenses for current or newly-hired state employees on a case-by-
  6    case  basis  up  to ten percent (10%) of the employee's base salary or fifteen
  7    thousand dollars ($15,000), whichever is less, and in  compliance  with  rules
  8    for  the reimbursement of moving expenses promulgated by the division of human
  9    resources. Exceptions to the  maximum  moving  expense  reimbursement  may  be
 10    granted if approved in advance by the department director. Agencies shall sub-
 11    mit  a report to the division of financial management and the legislative ser-
 12    vices office by October 1 on all moving expense reimbursements granted in  the
 13    preceding fiscal year.
                                                                        
 14        SECTION  21.  That Section 67-5342, Idaho Code, be, and the same is hereby
 15    amended to read as follows:
                                                                        
 16        67-5342.  SEVERANCE PAY FOR STATE EMPLOYEES. Upon termination  from  state
 17    service,  no classified or exempt employee shall be eligible for severance pay
 18    and no employer shall provide or pay severance pay  to  such  an  employee  or
 19    former  employee.  As  used in this section, "severance pay" shall mean money,
 20    exclusive of wages or salary, vacation leave payoff, compensatory  time  leave
 21    and  earned  administrative  leave  payoff,  paid  to  a  classified or exempt
 22    employee who resigns from state service of his  own  volition  and  not  under
 23    duress.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                            RS15966
                                
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
           
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