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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
pay parity; law enforcement; benchmarks
Purpose
Requires the Department of Public Safety (DPS) to establish and consider benchmarks based on the average compensation of personnel compared to peer law enforcement agencies, prescribes related reporting requirements and modifies the administration and use of 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 and reasons for employees separating from employment; 3) information concerning employee compensation during the preceding year and the coming year and the compensation of other public 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 Fund expenditures, to annually establish and consider benchmarks based on the average total compensation for each comparable law enforcement personnel rank of DPS's three largest county or municipal peer law enforcement agencies in Arizona.
2. Requires DPS to spend Fund monies on salaries and benefits for law enforcement personnel who DPS determines will enhance DPS's ability to successfully recruit and retain qualified personnel.
3. Stipulates that DPS must administer the Fund considering state revenues and employee pay adjustments.
4. Includes the most recent benchmarks established by DPS in the reported information concerning the compensation of state employees and other public and private employees within the ADOA Director's report on state personnel and the operation of the state personnel system.
5. 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.
6. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
2. Reinstates the stipulation that Fund monies do not revert to the state GF and are subject to legislative appropriation.
3. Removes requiring Fund monies to be continuously appropriated.
4. Makes conforming changes.
House Action Senate Action
PSLE 2/3/25 DP 13-0-2-0 PS 3/12/25 DP 6-0-1
3rd Read 2/13/25 53-0-7 APPROP 3/18/25 DP 10-0-0
Prepared by Senate Research
June 18, 2025
KJA/slp