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