2005 Arizona Revised Statutes - Revised Statutes §38-618.01  Performance pay for state employees; applicability; definition

A. All state agencies, departments, boards and commissions shall follow the procedures prescribed by this section.

B. The legislature may authorize in the general appropriations act a percentage increase for performance pay for each employee in a governmental unit if the governmental unit meets or exceeds prescribed performance measures.

C. Each governmental unit shall establish or revise a list of reasonable performance measures that are designed to result in cost reduction, increased productivity and improved quality of the delivery of state services or products. The performance measures shall include a measurement of the quality of service to citizens and other state agencies and employees as measured by the degree of excellence in providing the service and measurements of the quality of operations and unit cost of operations to the extent practicable and applicable. The head of each governmental unit shall either apply these performance measures to the entire governmental unit or apply relevant performance measures to subsets within the governmental unit either on a department, division, group, unit or individual basis.

D. Every month or every quarter, at the discretion of the governmental unit, the governmental unit shall review the unit's performance and determine if the performance measures were met. If the performance measures are met or exceeded, the applicable employees are entitled to receive the performance pay no later than the end of each month or the end of each quarter, if applicable. If the performance measures are not met, the applicable employee is not entitled to receive performance pay and monies that were appropriated for performance pay revert to the appropriate state fund. Each governmental unit shall annually inform the governor's office of strategic planning and budgeting and the joint legislative budget committee of the results of each review of the unit's performance.

E. If the head of the governmental unit applies the performance measures to the entire governmental unit, all employees of the governmental unit are entitled to receive the performance pay if the governmental unit meets or exceeds the governmental unit's performance measures. If the head of the governmental unit applies performance measures to subsets within the governmental unit, all employees within the subset are entitled to receive the performance pay if the subset meets or exceeds that subset's performance measures.

F. The head of the governmental unit shall forward a copy of the performance measures established by the unit to the performance based incentives program oversight committee established by section 38-619 and shall notify the committee as to the results of achieving the performance measures.

G. Each governmental unit shall annually conduct a survey of the unit's employees ensuring that a significant sample of employees participates. The survey shall allow the employees to rate the workplace as outstanding, excellent, good, satisfactory or poor. The survey shall provide a comment section where employees can communicate what the governmental unit does well, areas where the governmental unit can improve and suggestions to improve the governmental unit. The governmental unit shall compile the data obtained pursuant to this subsection and forward a copy of the compiled data to the performance based incentives program oversight committee and on request make a copy of the compiled data available to the public.

H. This section does not apply to:

1. Employees who are appointed or employed by the legislature or either house of the legislature.

2. Employees of the governor's office.

3. Employees of the judiciary unless the chief justice of the supreme court elects to participate in this section.

4. Employees of the Arizona board of regents and employees of a university under the jurisdiction of the Arizona board of regents.

I. For the purposes of this section, "governmental unit" means all agencies, departments, boards and commissions of this state.