A.R.S. tit. 38 ch. 4 — Arizona Revised Statutes Title 38 Chapter 4 — Compensation And Insurance

38-601. Effect of payment of legal salary State or county officers, employees, members of boards and commissions, and deputies, stenographers, clerks and employees of any such officer, board or commission, or of any institution, shall receive the salary provided by law, and shall not, under any pretext, receive any salary or emolument in excess of the salary so provided. 38-602. Limitation on action for salary; waiver of right to additional salary A. State and county officers, or former officers, their personal representatives or assigns, claiming the right to a salary as an officer or former officer due by virtue of any law of this state, shall bring an action for such salary within ninety days after the date the salary becomes due, and not thereafter. B. In such action if it is alleged and proved that the party has received the compensation fixed by law, it shall be conclusively presumed that any right to additional salary has been waived and that the party has elected to receive such compensation in full payment. 38-606. Suspension of salary pending determination of contested title to office; exception A. When the title of the incumbent of any office is contested by proceedings instituted for that purpose, no warrant shall be drawn or paid for any part of such officer's salary, except when otherwise provided by the law relating to contests of elections, until the proceedings have been finally terminated. B. As soon as such proceedings are instituted, the clerk of the court in which they are pending shall certify the facts to the officers whose duty it would otherwise be to draw the warrant or pay the salary. 38-607. Recovery of payment to disqualified persons Any board, officer or person who allows, audits or pays any warrant or other certificate of indebtedness for services performed to any person not qualified as provided in section 38-201, shall be liable for twice the amount so paid by an action in the name of any citizen of the county, if paid from county funds, or by an action in the name of any citizen of the state, if paid from state funds. The recovery, if any, shall be paid into the fund from which the amount was originally paid. 38-608. Compensation or time off for legal holidays A. All public employees who work forty hours or more per week who do not receive either compensation or commensurate time off for legal holidays worked, regardless of the day of the week on which such legal holidays fall, shall receive, for each such holiday worked, one day additional vacation leave or one day additional compensation for each such legal holiday worked. B. For the purposes of this section, unless the context otherwise requires: 1. "Legal holiday" includes Christmas, Thanksgiving, Labor day, New Year's day and Independence day. 2. "Public employee" includes the employees of the state, a county, city, town or any other political subdivision of the state, but does not include irrigation, power, electrical, agricultural, improvement, drainage and flood control districts, and tax-levying public improvement districts organized pursuant to law. 38-609. Retention of salary of subordinate; classification A public officer or employee who accepts, retains or diverts for his own use or the use of any other person any part of the salary or fees allowed by law or usage to his deputy, clerk, other subordinate officer or employee, is guilty of a class 5 felony. 38-610. Leaves of absence for certain military and disaster duty; definitions A. The officers and employees of this state, any county, city or town or any agency or political subdivision of this state or a county, city or town shall be granted leaves of absence from their duties without loss of time, pay or efficiency rating: 1. On all days during which they are complying with competent orders of the national guard of this state or any other state or the United States armed forces reserves for active duty or training for the period prescribed in subsection C, paragraph 3 of this section. 2. On all days during which they are employed on duty by the national disaster medical system under the United States department of health and human services. B. The officers and employees of this state, any county, city or town or any agency or political subdivision of this state or a county, city or town shall be granted leaves of absence from their duties on all days during which they are employed on duty or under orders with any auxiliary of the armed forces of the United States. The state, any county, city or town or any agency or political subdivision of this state or a county, city or town may grant the leave of absence without loss of time, pay or efficiency rating as prescribed in subsection C, paragraph 3 of this section. C. For the purposes of subsection A, paragraph 1 and subsection B of this section, the following apply: 1. An officer or employee may not be charged military leave for days on which the individual was not otherwise scheduled for work. 2. The period of time spent under orders may not be deducted from the vacation period with pay to which the officer or employee is otherwise entitled. 3. The military leave period is based on the average total of regularly scheduled hours in a weekly work period. An officer or employee of this state or a political subdivision of this state is entitled to up to three times the average of regularly scheduled work hours in a weekly work period each year and up to six times the average of regularly scheduled work hours in a weekly work period in any two consecutive years. D. For the purposes of this section: 1. "Day" means a shift of work. 2. "Year" means the fiscal year of the United States government. 38-610.01. Leave of absence and compensation for officers and employees during active military service A. If the president of the United States or the governor of this state declares that a state of emergency exists, an officer or employee of this state who is ordered to active military service of the United States or this state as a member of the national guard, air national guard, army reserve, naval reserve, marine corps reserve, air force reserve or coast guard reserve and whose state employment is subject to title 41, chapter 4, article 4 or who is exempt pursuant to section 41-742, subsection D, paragraph 1, 2, 3 or 5 is eligible for an additional leave of absence until released from active duty by competent authority. During the additional leave of absence, the officer or employee shall continue to receive the officer's or employee's salary or compensation, less the amount of all pay and allowances for military activities while on active duty. B. An officer or employee who receives salary or compensation pursuant to subsection A of this section is not entitled to accrue annual leave or sick leave during the period of active duty. Before qualifying for the compensation pursuant to subsection A of this section, the officer or employee must exhaust all military leave balances by the time of activation or at any time during the active duty period. C. An officer or employee may receive compensation pursuant to subsection A of this section for the continuous duration of the officer's or employee's order. D. Within sixty days after an officer or employee who receives pay differential pursuant to this section completes the period of active duty, the officer or employee shall provide proof that the officer or employee rendered honorable service while on active duty during any period for which the officer or employee received the pay differential pursuant to this section. The state may seek recovery of the pay differential from any person who fails to provide proof of honorable service. E. The director of the department of administration shall establish procedures to be used by an eligible officer or employee to receive compensation pursuant to subsection A of this section. 38-610.02. Leave of absence and compensation for national disaster medical system employment A. An officer or employee of this state who is called into employment to the national disaster medical system under the United States department of health and human services and whose state employment is subject to title 41, chapter 4, article 4 or who is exempt pursuant to section 41-742, subsection D, paragraph 1, 2, 3 or 5 is eligible for an additional leave of absence until released from active duty by competent authority. During the additional leave of absence, the officer or employee shall continue to receive the officer's or employee's salary or compensation, less the amount of all pay and allowances for activities while on active duty with the national disaster medical system. B. An officer or employee who receives salary or compensation pursuant to subsection A of this section is not entitled to accrue annual leave or sick leave during the period of active duty. C. An officer or employee may receive compensation pursuant to subsection A of this section for the continuous duration of the officer's or employee's order. D. Within sixty days after an officer or employee who receives pay differential pursuant to this section completes the period of active duty, the officer or employee shall provide proof that the officer or employee rendered honorable service while on active duty during any period for which the officer or employee received the pay differential pursuant to this section. This state may seek recovery of the pay differential from any person who fails to provide proof of honorable service. E. The rights and duties of an officer or employee who is subject to this section is subject to the uniformed services employment and reemployment rights act (38 United States Code chapter 43). F. The director of the department of administration shall establish procedures to be used by an eligible officer or employee to receive compensation pursuant to subsection A of this section. 38-611. Compensation of certain state officers and employees A. Except as otherwise provided in subsections B and C of this section, any officer or employee of the state, or any of its agencies, is entitled to receive a salary within the range as determined by the department of administration unless modified by the legislature. B. Elected state officers, employees of the supreme court, employees of the court of appeals, employees of the legislature, employees of the governor's office, employees of the Arizona state schools for the deaf and the blind except the superintendent and the medical officer and all employees of the Arizona board of regents and the state universities are exempt from the provisions of this section. C. Except as otherwise provided by statute or specific legislative appropriation, members of boards, commissions, councils or advisory committees who are authorized by law to receive compensation may receive compensation at the rate of not to exceed thirty dollars for each day engaged in the service of such board, commission, council or advisory committee. 38-611.01. Arizona state retirement system; incentive compensation plan; special pay plan The Arizona state retirement system established by chapter 5, article 2 of this title: 1. May administer an incentive compensation plan for investment related personnel established in consultation with the director of the department of administration. The Arizona state retirement system shall file a copy of any incentive compensation plan for investment related personnel with the governor, the president of the senate, the speaker of the house of representatives, the office of strategic planning and budgeting, the joint legislative budget committee and the department of administration within ten business days of its adoption or readoption. 2. Except for the incentive compensation plan for investment related personnel, shall not establish any other compensation plans without the approval of the director of the department of administration. 3. May request that the director of the department of administration establish a special pay plan for the Arizona state retirement system director, deputy director, chief investment officer, investment related personnel and fiduciary or investment counsel. The director of the department of administration, pursuant to section 41-742, subsection C, paragraph 4, shall establish the special pay plan after considering the recommendations of the Arizona state retirement system board and using relevant market data. The director of the department of administration may adopt other special pay plans determined necessary for certain classes or groups of Arizona state retirement system employees, taking into consideration such factors as occupational patterns, economic conditions and pay ranges common to government, business and industry, and shall work with the Arizona state retirement system in establishing the plans. 38-611.02. Public safety personnel retirement system; special pay practices The board of trustees of the public safety personnel retirement system established by chapter 5, article 4 of this title: 1. May administer an incentive compensation plan for investment related personnel established in consultation with the director of the department of administration. The public safety personnel retirement system shall file a copy of any incentive compensation plan for investment related personnel with the governor, the president of the senate, the speaker of the house of representatives, the office of strategic planning and budgeting, the joint legislative budget committee and the department of administration within ten business days of its adoption or readoption. 2. Except for the incentive compensation plan for investment related personnel, shall not establish any other compensation plans without the approval of the director of the department of administration. 3. May request that the director of the department of administration establish a special pay plan for the public safety personnel retirement system administrator, deputy or assistant administrator, chief investment officer, investment related personnel and fiduciary or investment counsel. The director of the department of administration, pursuant to section 41-742, subsection C, paragraph 4, shall establish the special pay plan after considering the recommendations of the public safety personnel retirement system board of trustees, including consideration of the salary ranges recommended by an independent compensation consultant and using relevant market data. The director of the department of administration may adopt other special pay plans determined necessary for certain classes or groups of public safety personnel retirement system employees, taking into consideration such factors as occupational patterns, economic conditions and pay ranges common to government, business and industry, and shall work with the public safety personnel retirement system in establishing the plans. 38-612. Administration of payroll salary deductions A. There shall be no payroll salary deductions from the compensation of state officers or employees except as specifically authorized by federal law or regulation or by a statute of this state. An administrative agency of this state may not authorize any other deduction. B. Notwithstanding subsection A of this section, reductions to retroactive payroll compensation are authorized pursuant to section 38-1106, subsection L, paragraph 5. C. In addition to those payroll salary deductions required by federal law or regulation or by statute, state officers or employees may authorize deductions to be made from their salaries or wages for the payment of: 1. Premiums on any health benefits, disability plans or group life plans provided for by statute and any existing insurance programs already provided by payroll deduction. 2. Shares or obligations to any state or federally chartered credit union established primarily for the purpose of serving state officers and employees and their families. 3. Dues in a recognized association composed principally of employees and former employees of agencies of this state, subject to the following criteria: (a) When composed of at least one thousand state employees other than employees of the state universities, the department of public safety and academic personnel of the Arizona state schools for the deaf and the blind. (b) When composed of at least twenty-five percent of the academic personnel or of the nonacademic employees of any state university. (c) When composed of at least twenty-five percent of the academic personnel of the Arizona state schools for the deaf and the blind. (d) When composed of at least four hundred state employees who are certified as peace officers by the Arizona peace officer standards and training board established by section 41-1821. (e) When composed of a combined total of at least eight hundred state employees described in subdivision (d) of this paragraph, state employees of the state department of corrections and state employees who are law enforcement officers. 4. Deferred compensation or tax sheltered annuity salary reductions when made under approved plans. 5. Federal savings bond plans. 6. Recurrent fees, charges or other payments payable to a state agency under a collection plan approved by the director of the department of administration. 7. Except as provided in subsection G of this section, contributions made to a charitable organization: (a) Organized and operated exclusively for charitable purposes and selected by the presidents of the state universities. Employees of the state universities shall be advised by form of the charitable organizations to which the employees may contribute through payroll salary deductions. The advisory provided under this subdivision shall be substantially similar to the following and prominently printed: "You may contribute to any charitable organization registered under internal revenue code section 501(c)(3), tax exempt status. ________________________________ Charitable organization name" This subdivision applies only to academic personnel and nonacademic employees of the state universities. (b) Organized and operated exclusively for charitable purposes, provided a fund drive by such an organization shall be applicable to all state agencies except the state universities covered under subdivision (a) of this paragraph and no state officer or employee of state agencies subject to this subdivision may authorize more than one deduction for charitable purposes to be in effect at the same time. This subdivision applies to all state agencies except the universities covered under subdivision (a) of this paragraph. 8. Contributions made for the purpose of contributing to a fundraising campaign for a university or a club for faculty or staff, or both, which is recognized by the university president and authorized by the Arizona board of regents. This paragraph applies only to academic personnel and nonacademic employees of the state universities. 9. Charges payable for transportation expenses pursuant to section 41-710.01. 10. Payments ordered by courts of competent jurisdiction within this state. 11. Automobile or homeowner's insurance premiums. 12. Premiums for the following state-sponsored group benefits that are established primarily for the purpose of serving state officers and employees and their families: (a) Long-term care insurance. (b) Critical care insurance. (c) Prepaid legal services. (d) Identity theft protection services. 13. A computer system as defined in section 13-2301 for personal use. D. In order for the department of administration to establish and maintain a dues deduction pursuant to subsection C, paragraph 3 of this section, the department of administration may establish and maintain the deduction without the appropriation of any additional monies or technological improvements. The department of administration shall track all personnel hours dedicated to dues deduction. The department of administration may charge a fee to a recognized association that qualifies under subsection C, paragraph 3 of this section for establishing the automatic dues deduction and anytime changes are needed in the automatic dues deduction system as a result of an increase or decrease in association dues. If the membership criteria of a recognized association fall below the criteria set forth in subsection C, paragraph 3 of this section, the recognized association shall be on probation for one year. If the membership of a recognized association falls below the criteria set forth in subsection C, paragraph 3 of this section for more than one year, or if the members of the association engage in a work slowdown or work stoppage, the dues deduction authorized by this section shall immediately be discontinued. E. For those state officers and employees under payroll systems that are under the direction of the director of the department of administration, the director shall provide for the administration of payroll deductions for the purposes set forth in this section. For all other state officers and employees and for persons receiving allowances or benefits under other state payroll and retirement systems, the appropriate state officer shall provide for such administration of payroll deductions. Such administration shall operate without cost or contribution from the state other than the incidental expense of making the deductions and remittances to the payees. If any payee requests additional services, the director of the department of administration or any other appropriate state officer may require payment for the additional cost of providing such services. F. As a means of readily identifying the employee from whom payroll deductions are to be made, the state officer administering payroll deductions may request an employee to enter such employee's social security identification number on the payroll deduction authorization. Such number shall not be used for any other purpose. G. There shall be no payroll salary deductions from the compensation of state officers or employees for contributions made to a charitable organization that performs a nonfederally qualified abortion or maintains or operates a facility where a nonfederally qualified abortion is performed for the provision of family planning services. For the purposes of this subsection, "nonfederally qualified abortion" means an abortion that does not meet the requirements for federal reimbursement under title XIX of the social security act. H. The state, the director of the department of administration or any other appropriate state officer shall be relieved of any liability to employees authorizing deductions or organizations receiving deductions that may result from authorizations pursuant to this section. 38-613. State employee suggestion program awards; fund A. The director of the department of administration may adopt rules to provide an award to any state employee for any of the following: 1. An adopted procedure or idea that resulted in eliminating or reducing state expenditures or improving operations in the public interest. 2. The performance of a special act or service in the public interest. B. The governor shall appoint a five member board that serves at the governor's pleasure for four year staggered terms to establish policy for the operation of the state employee suggestion program, review all suggestions and approve all awards with the concurrence of the head of the agency in which the cost saving is realized. The board shall elect a chairman each year. C. The award may equal no more than ten per cent of the amount saved as a result of the suggestion. D. A state employee suggestion program award fund is established consisting of identified measurable dollar savings transferred from appropriated and nonappropriated monies in the budget unit where the cost saving is realized, except that monies may not be transferred from the state general fund. The board shall initiate fund transfers with the concurrence of the director of the department of administration. Except as provided in subsection G of this section, the director of the department of administration shall use monies in the state employee suggestion program award fund for the following purposes only: 1. To make awards pursuant to this section. 2. To purchase recognition materials with a cost of not to exceed fifty dollars for each award. E. The board shall certify to the director of the department of administration the names of persons granted awards and the amounts of the awards. On certification of the names and the amounts of the awards the director of the department of administration shall draw a warrant on the state treasurer. The state treasurer shall pay the warrant from the state employee suggestion program award fund. F. An award to a state employee shall not be considered as extra compensation. G. The director of the department of administration may use up to six per cent of any monies transferred to the state employee suggestion program award fund for the purposes of administering, advertising and promoting the state employee suggestion program. H. Elected officials, directors, deputy directors, managers and supervisors are not eligible for awards pursuant to this section. 38-614. Merit awards; county employees; merit award system board; special merit award fund A. A county board of supervisors may adopt rules and regulations to provide merit awards for county employees. The rules and regulations shall include granting a merit award for any of the following: 1. An adopted procedure or idea which resulted in eliminating or reducing county expenditures or improving operations in the public interest. 2. The performance of a special act or service in the public interest. B. If the board of supervisors permits merit awards it shall appoint a merit award system board to establish policy for the operation of the merit award system, review all suggestions and recommend for approval all merit awards with the concurrence of the head of the department in which the cost savings is realized. The size of the merit award system board shall be equal to the number of supervisors for that county. Each supervisor shall appoint one member to serve on the merit award system board. C. The board of supervisors shall approve all merit awards. D. No merit award may exceed two thousand five hundred dollars. E. The board of supervisors shall establish and may fund for the purpose of this section a special merit award fund consisting of identified measurable dollar savings transferred from appropriated and nonappropriated monies in the department where the cost saving is realized. F. The board of supervisors may at the end of each fiscal year transfer all or part of the monies accumulated in the special merit award fund to the county general fund. G. The merit award system board shall certify to the board of supervisors the names of persons recommended for merit awards and the amounts of the awards. On final approval by the board of supervisors of the names and the amounts of the merit awards, the county finance director shall draw a warrant on the county treasury. The county treasurer shall pay the warrant from the special merit award fund. H. All county employees are eligible for merit awards, except that the qualifying criteria prescribed in subsection A are not met as a result of the employee's regular employment duties and an award is not considered extra compensation. 38-615. Payment for accumulated sick leave; requirements; limit; definition A. An officer or employee of this state, subject to legislative appropriation, or an officer or employee of a county, subject to authorization by the board of supervisors, is eligible, on retirement, to receive benefits as follows: 1. An officer or employee who has at least five hundred but less than seven hundred fifty hours of sick leave is entitled to receive payments equal to twenty-five per cent of the officer's or employee's salary at the officer's or employee's current hourly rate for each hour of accumulated sick leave. 2. An officer or employee who has at least seven hundred fifty but less than one thousand hours of sick leave is entitled to receive payments equal to thirty-three per cent of the officer's or employee's salary at the officer's or employee's current hourly rate for each hour of accumulated sick leave. 3. An officer or employee who has at least one thousand hours of sick leave is entitled to receive payments equal to fifty per cent of the officer's or employee's salary at the officer's or employee's current hourly rate for each hour of accumulated sick leave not to exceed one thousand five hundred hours of accumulated sick leave. B. In order to be eligible to receive payments pursuant to subsection A of this section: 1. An officer or employee must establish a retirement date not later than thirty-one days after termination of employment by qualifying with an authorized retirement system or plan of this state. 2. The retirement date must be effective not later than thirty-one days after termination of employment. 3. An officer or employee shall elect retirement benefits that are defined not later than thirty-one days after termination of employment. C. An officer or employee who receives payments as provided in subsection A of this section shall not receive more than thirty thousand dollars. D. If an officer or employee receives payments pursuant to subsection A of this section, the officer or employee shall be paid the amount due the officer or employee either in a lump sum or in installments over a three year period. E. If an officer or employee dies before the officer or employee receives the total payment due to the officer or employee or if an officer or employee is eligible for normal retirement but has not retired at the time of the officer's or employee's death, the officer's or employee's beneficiary is entitled to receive the balance due to the officer or employee in a lump sum. F. Notwithstanding any other law: 1. The cash value of the sick leave credit pursuant to subsection A of this section shall not be used to compute the average salary. 2. The payment authorized by this section for accumulated sick leave is not salary or compensation for the purposes of making retirement contributions or computing any pension benefit. 3. The sick leave must be available for use by the officer or employee at the time of termination of employment. This section does not apply to previously forfeited sick leave. G. This section applies to an officer or employee of this state or a county who is eligible to participate in the Arizona state retirement system as provided in chapter 5, article 2 of this title, in the public safety personnel retirement system as provided in chapter 5, article 4 of this title, in the corrections officer retirement plan as provided in chapter 5, article 6 of this title or in an optional retirement program established by the Arizona board of regents pursuant to section 15-1628. H. This section applies retroactively to July 1, 1998 to an officer or employee of a university under the jurisdiction of the Arizona board of regents who participates in a federal retirement system, except that this section does not apply to a participant in a federal retirement system if the participant receives any sick leave payment from the federal government. I. This section applies only to officers or employees of this state or a county whose compensation regulations provide for a forfeiture of sick leave on retirement. J. For the purposes of this section, "hourly rate" means an officer's or employee's hourly salary on retirement, excluding overtime pay and pay for unused annual leave. 38-616. Retiree accumulated sick leave fund; administration; contribution A. A retiree accumulated sick leave fund is established consisting of deposits made pursuant to subsection C of this section. The department of administration shall administer the fund and shall maintain individual accounts for each state officer or employee receiving a benefit on retirement pursuant to section 38-615. Monies in the fund may be used for payment for accumulated sick leave made pursuant to section 38-615 and for any associated employee related expenditures. The department of administration may use up to two per cent of the total amount deposited in the fund in fiscal year 1999-2000 and up to one and one-half per cent of the total amount deposited in the fund in fiscal year 2000-2001 and each fiscal year thereafter to administer section 38-615. B. The department of administration shall pay the accumulated sick leave payment for each eligible state officer or employee pursuant to section 38-615. C. All state budget units and legislative and judicial branches of state government that employ officers or employees who may be eligible on retirement to receive payment for accumulated sick leave pursuant to section 38-615 shall contribute a pro rata share of the overall cost of the accumulated sick leave payments. The pro rata share shall be payable by payroll fund source, and the resultant amount shall be deposited in the retiree accumulated sick leave fund. The pro rata share shall be established by the director, is subject to review by the joint legislative budget committee and shall not exceed .40 per cent of the total benefit eligible payroll as prescribed in section 38-651 in fiscal year 1999-2000 and .55 per cent of the total benefit eligible payroll as prescribed in section 38-651 in fiscal year 2000-2001 and each fiscal year thereafter. Total payroll includes all fund sources including the state general fund, federal monies, special revenue funds, intergovernmental revenue monies, trust funds and other payroll sources. A claim for the pro rata share percentage payment shall be submitted according to the fund source, with the accompanying payroll, to the department of administration for deposit in the retiree accumulated sick leave fund. D. Notwithstanding section 35-190, monies in the retiree accumulated sick leave fund do not revert to the state general fund at the end of each fiscal year. 38-617. County safety incentive awards A county board of supervisors may adopt rules to provide employee safety recognition awards with terms and conditions deemed appropriate by the board for the safe operation of county government. No award shall exceed two hundred fifty dollars. 38-618. Performance based incentives program A. The director of the department of administration and the president of the Arizona board of regents may establish a performance based incentives program to promote efficiency and effectiveness in state government. The director of the department of administration shall identify state agencies and the president of the Arizona board of regents shall identify state universities in which to implement the program. B. The director of the department of administration and the president of the Arizona board of regents shall cooperate with the directors of agencies and the presidents of the identified universities, respectively, to: 1. Develop a performance based appraisal system of state employee performance that is based on agency or university goals and objectives, as identified and approved by the agency's or university's employees, supervisors, director or president. 2. Authorize all agency directors and university presidents participating in the program to recognize the performance of state employees, who are under their authority, based on the outcome of the appraisal conducted pursuant to paragraph 1 of this subsection. C. The director of the department of administration shall cooperate with the director of the department of public safety, the superintendent of public instruction and the superintendent of the state schools for the deaf and the blind to implement the performance based incentives program. The president of the Arizona board of regents shall cooperate with the president of each university under the jurisdiction of the Arizona board of regents to implement the performance based incentives program. D. Notwithstanding section 35-174, subsection B, the director of the department of administration, the director of the department of public safety, the president of the Arizona board of regents, the superintendent of public instruction and the superintendent of the state schools for the deaf and the blind may authorize the expenditure of up to eighty per cent of excess vacancy savings to recognize employees of state agencies and state universities who are under their respective authority and who are participating in the performance based incentives program. In addition to excess vacancy savings, the participating agency or university may use monies appropriated from the state general fund or other sources, including federal enhanced funding an agency or university receives for quality initiatives. Federal enhanced monies do not revert to the state general fund but remain in a separate agency or university account at the end of the fiscal year for use by the agency or university in accordance with the terms and conditions imposed by the federal funding source. For the purposes of this subsection, "excess vacancy savings" means the same as "vacancy saving" as defined in section 35-174, subsection A, except that "excess vacancy savings" are any vacancy savings that are over and above the amount eliminated from an agency's budget as the result of the applied vacancy factor reported in the annual appropriations report prepared by the joint legislative budget committee. E. As provided for in subsection D of this section, any incentive or performance compensation using monies from excess vacancy savings or other fund sources including state general fund appropriations shall not be added to an agency's salary base. F. Recognition of state employees may be in the form of increase in compensation for future services, but the increase may not exceed two hundred seventy-five dollars per month per employee. G. An approved program shall notify the director of the department of administration or the president of the Arizona board of regents when it makes any substantive changes to the approved program. 38-621. Persons eligible to receive travel expenses A. The provisions of this article shall apply to every public officer, deputy or employee of the state, or of any department, institution or agency thereof, and to a member of any board, commission or other agency of the state when traveling on necessary public business away from his designated post of duty and when issued a proper travel order. B. The designated post of duty of members of boards, commissions, authorities, councils and committees who are not fulltime employees of the agency served by the board, commission, authority, council or committee shall be deemed to be their place of residence. 38-622. Authorization for travel; claims A. When the official duties of a public officer, deputy or employee require the public officer, deputy or employee to travel from the public officer's, deputy's or employee's designated post of duty, the public officer, deputy or employee shall be allowed reimbursement of the expenses incurred for that travel. B. The reimbursement of expenses shall be authorized by travel orders signed by the head of the department or agency, or by a person to whom that authority has been properly delegated. C. Claims by public officers, deputies, and employees for reimbursement of expenses for transportation, lodging, meals and incidentals and long-term subsistence allowances shall be submitted on forms prescribed by and in the manner required by the department of administration. 38-623. Means of travel; rates A. Travel by air, railroad or motor vehicle is permitted. Railroad sleeping accommodations shall be considered as transportation, and the cost of railroad sleeping accommodations may be allowed each person traveling. Private conveyance may be allowed for travel inside and outside this state by way of the most direct regularly traveled route computed by highway map or odometer reading when traveling by motor vehicle, or if by airplane, by the most direct air mileage route listed by the civil aeronautics board. Expenses for transportation by private conveyances used for travel outside this state shall be reimbursed at the lesser of either the rate set by the department of administration or air coach fare to the same destination. Travel by rented or chartered motor vehicle or airplane shall be paid at the cost of the travel. B. When a private conveyance is used outside this state, a transportation expense shall not be allowed as provided for in subsection A, unless authority is delegated in writing by the director of the department of administration, or in the case of a university employee, by the president of the respective university, if the authority is delegated by the governor, or unless otherwise provided by law. C. When one or more officers, employees or other public agents traveling on official business are transported in the same private conveyance, one mileage only may be allowed. D. The department of administration shall set rates of reimbursement for state travel by motor vehicle and by airplane as provided in this section. In setting the rates the department of administration shall consider amounts established by the United States internal revenue service as acceptable for income tax purposes without further documentation. No increase or decrease from the current rate established by the department of administration shall be effective until approved by the joint legislative budget committee. 38-624. Lodging expenses; meal and incidental expense reimbursement and long-term subsistence allowance; items covered by reimbursement; amount predetermined by department of administration A. A state employee while traveling on authorized state business shall be reimbursed for actual lodging expenses incurred not to exceed a predetermined amount pursuant to subsection C of this section. All claims for reimbursement shall be accompanied by lodging expense receipts. B. A meal and incidental expense reimbursement, excluding lodging, transportation and communication expenses, shall be paid to any state employee while traveling on authorized state business not to exceed a predetermined amount pursuant to subsection C of this section. C. The director of the department of administration shall establish maximum amounts for reimbursement for lodging and meal and incidental expenses or long-term subsistence incurred pursuant to subsections A and B of this section, based on federal guidelines for these types of expenses or other reasonable rates as determined by the department. The director may change the maximum amounts from time to time and may establish a separate maximum amount for geographical areas of the United States if the director finds that the reasonable cost varies significantly in one or more areas. Maximum amounts established by the director shall be subject to approval by the joint legislative budget committee. D. The director of the department of administration shall establish in the state accounting manual uniform procedures by which amounts less than the maximum lodging and meal and incidental expense reimbursement amounts may be claimed by a person who is in travel status for less than a full twenty-four-hour period or by a person who does not provide lodging receipts. The director of the department of administration shall also establish policies and procedures for claiming lodging and meal and incidental expense reimbursements and long-term subsistence allowances by persons temporarily required, for a period of not less than thirty days, to reside away from their primary place of residence. If housing or meals are provided, the reimbursements may be less than, and cannot exceed, the lodging and meal and incidental expense reimbursements pursuant to subsection C of this section. Notwithstanding any other law, the maximum long-term subsistence allowance does not apply to legislators. A long-term subsistence allowance for legislators shall be established pursuant to section 41-1104. 38-625. Receipts for transportation Claims which include transportation by common carrier, rented automobiles, trains or airplanes shall not be allowed unless accompanied by receipts, but receipts for transportation by means of local public transportation including taxicabs shall not be required, and such means of local transportation may be allowed and paid for and shall not be considered as regular common carrier transportation. 38-626. Out-of-state travel; approval; exemptions A. When the official duties or activities of a public officer, deputy or employee of the state or of any department, institution, commission, board or other agency of the state necessitate out-of-state travel, the travel order shall be countersigned by the agency head or by the president of the respective university for its university employees and is authority to pay the claims from any funds available for such travel. The agency head or the university president may delegate the authority to countersign out-of-state travel orders. Except as provided by subsection B, the department of administration shall: 1. Adopt policies and procedures for the approval of out-of-state travel orders. 2. Disseminate these policies and procedures to all agencies. 3. Perform compliance reviews on out-of-state travel orders for compliance with the policies and procedures. 4. Require that all outside travel orders shall be available for public inspection. B. The Arizona board of regents is responsible for implementing the provisions of subsection A, paragraphs 1, 3 and 4, for the universities under its jurisdiction. C. The requirements of subsection A shall not apply under the following: 1. When, by the shortest practical routing, travel through an adjoining state is necessary to reach remote areas of this state. 2. When any legislative member, officers and employees of the legislature, the legislative council, joint legislative budget committee members and employees, and other legislative interim committee members are traveling on official business. 38-626.01. Authorization for certain out-of-state travel by state employees Notwithstanding the provisions of sections 38-626 and 38-627, the agency head, or a person properly delegated by the agency head, may authorize travel of personnel and state equipment under the agency head's jurisdiction into states of the United States adjoining this state. 38-627. Use of state equipment out of state The agency head or the president of a university may authorize the use of state equipment outside of this state when the agency head or president ascertains in writing that no other means of transportation is available or no service of the type required is provided by existing common carriers or the use of state transportation equipment outside the state will best serve the interests of this state. 38-641. Definitions In this article, unless the context otherwise requires: 1. "Board" means the board of trustees of the public safety personnel retirement system established by section 38-848, including its authorized employees, administrators, attorneys and agents. 2. "Employer" means this state or any political subdivision of this state, including cities, towns, fire districts and Indian tribes, that employs firefighters, peace officers, corrections officers, detention officers or other members as defined in section 38-881 and that participates in the public safety personnel retirement system established by chapter 5, article 4 of this title or the corrections officer retirement plan established by chapter 5, article 6 of this title. 3. "Peace officer" means a certified peace officer as defined in section 38-842. 4. "Program" means the public safety cancer insurance policy program established by this article. 38-642. Public safety cancer insurance policy program A. Except as provided in subsection D of this section, the board shall establish and administer a public safety cancer insurance policy program for participating employers that employ firefighters or peace officers. For the purposes of the internal revenue code, the program is an integral part of a political subdivision of this state. B. Except as provided in subsection D of this section, participating employers that employ firefighters or peace officers shall participate in the program. C. The board shall contract for a group cancer insurance policy to provide coverage as prescribed by section 38-645 or may self-insure the program by establishing an insurance policy that is of its own design and that is underwritten by the assets of the public safety cancer insurance policy program account established by section 38-643. When procuring, establishing or administering any cancer insurance policy provided pursuant to this article the board is exempt from the requirements of title 41, chapter 23. D. The board shall administer a public safety cancer insurance policy program for employers and their employees who are corrections officers, detention officers or other members as defined in section 38-881 and who join the program. The state department of corrections, the department of juvenile corrections, the department of public safety or a county, city or town may establish a voluntary cancer insurance policy program for employees who are corrections officers, detention officers or other members as defined in section 38-881. The state department of corrections, the department of juvenile corrections, the department of public safety or a county, city or town that, in its discretion, establishes a program shall collect the payments for the program and submit the monies to the board on behalf of the employees who voluntarily enroll in the program and make payments for the cancer insurance. If a county, city or town establishes a voluntary cancer insurance policy program, the county, city or town is not required to make payments for the cancer insurance. If the state department of corrections, the department of juvenile corrections or the department of public safety establishes a voluntary cancer insurance policy program, the department shall not make payments for the cancer insurance. The board may adopt policies that establish criteria for participation in the program pursuant to this subsection. E. On or before July 31 of each year, the board shall notify each employer required to participate in the program of the total amount payable to the board to pay for the costs of the program. The amount charged to each employer shall not exceed one hundred eighty dollars for each employee of the employer who is a firefighter, peace officer, corrections officer, detention officer or any other member as defined in section 38-881 on record with the board as of June 30 of that year. Each employer shall pay this amount to the board on or before August 31 of each year. F. Employers that fail to pay the amount required by subsection E of this section by August 31 shall pay a fifteen percent late charge to the board on all delinquent amounts accrued monthly. If the amount due and the late charge are not paid within thirty days, the board may recover the amounts due from the employer by either: 1. Filing an action in a court of competent jurisdiction to recover the amount due. 2. Requesting a deduction of any monies, including excise revenue taxes, payable to the employer by any department or agency of this state. G. If the board self-insures the program the board and the program are exempt from title 20 and any rules adopted pursuant to title 20. 38-643. Public safety cancer insurance policy program account A. The public safety cancer insurance policy program account is established and shall be under the exclusive control of the board. The board shall deposit monies collected pursuant to section 38-642 in the account to pay the cost of providing a group cancer insurance policy under the program and the cost of administering the program. B. The board may use monies deposited in the account up to the amount equal to or less than ten percent of the total claims paid, averaged over the previous five years, each year ending June 30 to pay the costs of administering the program, excluding the costs of processing the claims, except that board attorney fees and court costs relating to the program shall be paid out of the account and are not subject to this limitation. C. The board shall cause an independent audit of the account to be performed at the end of each fiscal year and shall report the results of the audit to each employer within six months following the end of the fiscal year. D. The employer contributions and securities in the account and investment earnings on monies in the account are exempt from state, county and municipal taxes. E. The program is a welfare benefit plan or trust intended to pay expenses incurred in the treatment of cancer as provided in the policy of insurance secured or established by the board pursuant to section 38-642. The legislature intends that the program's income be excluded as gross income for assessing federal income tax under section 115 of the internal revenue code and that coverage under the program be excluded as gross income to the employees or retirees under section 106 of the internal revenue code. The board may adopt additional program provisions as necessary to fulfill the legislature's intent that the program's income and coverage are not subject to federal income tax. F. To the extent required to exclude coverage under the program as gross income of participants, employers that are required to participate in the program shall pay the premiums for the cost of the program and include the premium amount as wages of the firefighters and peace officers who are participating in the program, subject to federal and state income and employment taxes. G. Employers, the board of trustees and any member of a local board do not guarantee the account in any manner against loss or depreciation and are not liable for any act or failure to act made in good faith pursuant to this article, including determinations on program claims. 38-644. Eligibility A. Except as provided in subsections B, C and D of this section, to qualify for covered benefits under the program, a person must satisfy all of the following criteria: 1. Be an active or retired member of the public safety personnel retirement system or the corrections officer retirement plan or a participant in the public safety personnel defined contribution retirement plan. 2. Be one of the following: (a) A firefighter who is or was regularly assigned to hazardous duty of the type normally expected of a firefighter. (b) A peace officer. (c) A corrections officer employed by the state department of corrections or the department of juvenile corrections, a detention officer employed by a county, city or town or any other member as defined in section 38-881 if the department, county, city, town or participating employer as defined in section 38-881 has voluntarily established a program and the corrections officer, detention officer or other member as defined in section 38-881 voluntarily enrolled in the program and made the payments pursuant to section 38-642, subsection D. 3. Have cancer that was first diagnosed after the person's date of membership in the public safety personnel retirement system or corrections officer retirement plan or date of participation in the public safety personnel defined contribution retirement plan. B. Persons who terminate employment with a participating employer are not eligible for benefits under the program unless the person has made a valid claim for payment of expenses under the program before termination of employment. C. On retirement, persons who were either receiving benefits under the program before retirement or who are diagnosed with cancer subsequent to retirement and within the time frames specified in this subsection remain eligible for coverage under the program for the total of: 1. Either: (a) Five months for each year of credited service accumulated toward retirement under the public safety personnel retirement system or corrections officer retirement plan. (b) Five months for each year of service under the public safety personnel defined contribution retirement plan. 2. Plus actual time spent in the deferred retirement option plan pursuant to section 38-844.03 or the reverse deferred retirement option plan pursuant to section 38-885.01. D. A person whose eligibility to receive benefits under subsection C of this section is expiring may continue to remain eligible for coverage under the program if the person makes an election with the board and pays to the board the cost of the premium equal to the amount paid by the employer for each employee as determined by the board at the time determined by the board. E. A person who did not receive covered benefits under subsection C of this section may elect to continue coverage under the program by paying the cost of the premium as determined by the board. When determining the cost of the premium, the board: 1. Shall determine the cost to the program for persons who elect to continue coverage, except for persons who received covered benefits under subsection C of this section, and set an actuarially determined premium to cover the costs. 2. May not consider the balance of, contributions to or investment earnings associated with the public safety cancer insurance policy program account established by section 38-643 that are not associated with persons who are eligible for the program pursuant to this subsection. F. For a person who elects to continue coverage under the program pursuant to subsection E of this section, the annual premium payment shall be deducted from the person's pension payment at the beginning of the plan year. The person may elect to discontinue coverage under the program within one hundred eighty days after the payment is made and may request a refund of the annual premium payment. A person who elects to discontinue coverage under the program is no longer eligible for coverage under the program. G. A person is not eligible for benefits under the program if there is any evidence that the cancer that forms the basis for a benefit claim under the program existed before the person's membership in the public safety personnel retirement system or corrections officer retirement plan or the person's participation in the public safety personnel defined contribution retirement plan. 38-645. Coverage A. Coverage provided under the program shall provide benefits to eligible persons to pay for expenses that are designated by the board and that are incurred in the treatment of cancer, including treatments by clinics or providers outside of the United States. B. The board may provide for additional coverage or exclusions under the program based on available monies in the public safety cancer insurance policy program account. C. Coverage under the public safety cancer insurance policy program may be canceled, changed or terminated by the board at any time without notice. If the program is terminated, the board shall refund monies in the public safety cancer insurance policy program account on a pro rata basis to employers, excluding monies held in reserve for benefits as determined by the board. D. If the program is self-insured, benefits are limited to the assets in the public safety cancer insurance policy program account and those benefits may be reduced or eliminated at any time. 38-651. Expenditure of monies for health an