House Engrossed pay parity; law enforcement; benchmarks State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2386 AN ACT amending sections 41-751 and 41-1720, Arizona Revised Statutes; relating to parity pay for law enforcement personnel. (TEXT OF BILL BEGINS ON NEXT PAGE) House Engrossed pay parity; law enforcement; benchmarks State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2386 House Engrossed pay parity; law enforcement; benchmarks State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2386 AN ACT amending sections 41-751 and 41-1720, Arizona Revised Statutes; relating to parity pay for law enforcement personnel. (TEXT OF BILL BEGINS ON NEXT PAGE) Be it enacted by the Legislature of the State of Arizona: Section 1. Section 41-751, Arizona Revised Statutes, is amended to read: START_STATUTE41-751. Annual report and recommendations A. The director shall prepare a report on state personnel and the operation of the state personnel system. B. The report shall include: 1. Information concerning all state employees, including employees of all executive, legislative and judicial branch agencies. All state agencies shall provide any information requested by the director to prepare the annual report. 2. Information concerning turnover, including the number of employees separating from state employment and the reasons for separation. 3. Information concerning the compensation during the preceding year and the coming year of state employees and the compensation of other public employees and private employees, including the most recent benchmarks established pursuant to section 41-1720. 4. An advisory recommendation on state employees' salaries. In establishing the recommendation, the director shall consider the relative levels of duties and responsibilities of the various classes of positions, rates paid for comparable positions elsewhere and other relevant factors. Salary recommendations are not required for elected officials. The director shall make advisory salary recommendations for specific positions in the governor's office, the legislature and the courts if requested by the respective administrative heads of these units of state government. 5. The overtime pay of all state agencies. 6. Other information as determined by the director. C. The annual report and recommendations shall be presented to the governor and the legislature on or before September 1 of each year. The director shall provide a copy of the report to the secretary of state. D. The Arizona board of regents, the department of public safety, the judicial department and the Arizona state schools for the deaf and the blind shall each prepare and submit an annual report on their personnel as prescribed in this section. The report shall include: 1. Information concerning the number of employees affected by and reasons for turnover of their employees. 2. Information concerning the compensation during the preceding year and the coming year of their employees and the compensation of other public employees and private employees. 3. An advisory recommendation on the salary plan and adjustments for their employees. In establishing the salary plan, they shall consider the relative levels of duties and responsibilities of the various classes of positions, rates paid for comparable positions elsewhere and other relevant factors. 4. The overtime pay for their employees. END_STATUTE Sec. 2. Section 41-1720, Arizona Revised Statutes, is amended to read: START_STATUTE41-1720. Parity compensation fund; exemption A. The parity compensation fund is established consisting of monies deposited pursuant to section 28-5808 and monies appropriated by the legislature. The department shall administer the fund. and, considering state revenues and state employee pay adjustments, Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department shall spend monies from the fund for salaries and benefits for law enforcement personnel that the department determines will enhance the ability of the department to successfully recruit and retain qualified law enforcement personnel. in determining the amount of the expenditures from the fund, the DEPARTMENT shall annually establish and consider benchmarks based on the average total compensation for each comparable law enforcement personnel rank of the DEPARTMENT'S three largest county or municipal peer law enforcement agencies in this state. For the purposes of this subsection, "total compensation" includes base salary, educational incentive pay, physical performance pay, longevity pay and retirement contributions made by an employer on behalf of an employee. B. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. C. Fund monies: 1. Do not revert to the state general fund. 2. Are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 3. Are subject to legislative appropriation. END_STATUTE Be it enacted by the Legislature of the State of Arizona: Section 1. Section 41-751, Arizona Revised Statutes, is amended to read: START_STATUTE41-751. Annual report and recommendations A. The director shall prepare a report on state personnel and the operation of the state personnel system. B. The report shall include: 1. Information concerning all state employees, including employees of all executive, legislative and judicial branch agencies. All state agencies shall provide any information requested by the director to prepare the annual report. 2. Information concerning turnover, including the number of employees separating from state employment and the reasons for separation. 3. Information concerning the compensation during the preceding year and the coming year of state employees and the compensation of other public employees and private employees, including the most recent benchmarks established pursuant to section 41-1720. 4. An advisory recommendation on state employees' salaries. In establishing the recommendation, the director shall consider the relative levels of duties and responsibilities of the various classes of positions, rates paid for comparable positions elsewhere and other relevant factors. Salary recommendations are not required for elected officials. The director shall make advisory salary recommendations for specific positions in the governor's office, the legislature and the courts if requested by the respective administrative heads of these units of state government. 5. The overtime pay of all state agencies. 6. Other information as determined by the director. C. The annual report and recommendations shall be presented to the governor and the legislature on or before September 1 of each year. The director shall provide a copy of the report to the secretary of state. D. The Arizona board of regents, the department of public safety, the judicial department and the Arizona state schools for the deaf and the blind shall each prepare and submit an annual report on their personnel as prescribed in this section. The report shall include: 1. Information concerning the number of employees affected by and reasons for turnover of their employees. 2. Information concerning the compensation during the preceding year and the coming year of their employees and the compensation of other public employees and private employees. 3. An advisory recommendation on the salary plan and adjustments for their employees. In establishing the salary plan, they shall consider the relative levels of duties and responsibilities of the various classes of positions, rates paid for comparable positions elsewhere and other relevant factors. 4. The overtime pay for their employees. END_STATUTE Sec. 2. Section 41-1720, Arizona Revised Statutes, is amended to read: START_STATUTE41-1720. Parity compensation fund; exemption A. The parity compensation fund is established consisting of monies deposited pursuant to section 28-5808 and monies appropriated by the legislature. The department shall administer the fund. and, considering state revenues and state employee pay adjustments, Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department shall spend monies from the fund for salaries and benefits for law enforcement personnel that the department determines will enhance the ability of the department to successfully recruit and retain qualified law enforcement personnel. in determining the amount of the expenditures from the fund, the DEPARTMENT shall annually establish and consider benchmarks based on the average total compensation for each comparable law enforcement personnel rank of the DEPARTMENT'S three largest county or municipal peer law enforcement agencies in this state. For the purposes of this subsection, "total compensation" includes base salary, educational incentive pay, physical performance pay, longevity pay and retirement contributions made by an employer on behalf of an employee. B. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. C. Fund monies: 1. Do not revert to the state general fund. 2. Are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 3. Are subject to legislative appropriation. END_STATUTE