A.R.S. tit. 41 ch. 4 — Arizona Revised Statutes Title 41 Chapter 4 — Department Of Administration And Personnel Board

41-701. Department of administration; director; appointment A. A department of administration is established. B. The direction, operation and control of the department is the responsibility of the director. C. The director shall be appointed by the governor with the advice and consent of the senate and shall serve at the pleasure of the governor. 41-701.01. Definitions In this chapter, unless the context otherwise requires: 1. "Department" means the department of administration. 2. "Director" means the director of the department of administration. 41-702. Deputy director; department organization; assistant directors; compensation of officers A. The director with the approval of the governor shall appoint a deputy director of the department. The deputy director serves at the pleasure of the director and shall assist the director in administering the department by performing the duties and responsibilities that the director prescribes. B. The director may establish, abolish or reorganize the positions or organizational units within the department, subject to legislative appropriation, if in the director's judgment such modification of organization would make the operation of the department more efficient, effective or economical. C. The director, with approval of the governor, shall appoint an assistant director qualified to head each division, and each assistant director shall serve at the pleasure of the director. Each assistant director is responsible for the functions performed by the assistant director's division. D. The director, deputy director and assistant directors are eligible to receive compensation pursuant to section 38-611. 41-703. Duties of director The director shall: 1. Be directly responsible to the governor for the direction, control and operation of the department. 2. Provide assistance to the governor and legislature as requested. 3. Adopt rules the director deems necessary or desirable to further the objectives and programs of the department. 4. Formulate policies, plans and programs to effectuate the missions and purposes of the department. 5. Employ, determine the conditions of employment and prescribe the duties and powers of administrative, professional, technical, secretarial, clerical and other persons as may be necessary in the performance of the department's duties and contract for the services of outside advisors, consultants and aides as may be reasonably necessary. 6. Make contracts and incur obligations within the general scope of the department's activities and operations subject to the availability of monies. 7. Contract with or assist other departments, agencies and institutions of the state, local and federal governments in the furtherance of the department's purposes, objectives and programs. 8. Accept and disburse grants, gifts, donations, matching monies and direct payments from public or private agencies for the conduct of programs that are consistent with the overall purposes and objectives of the department. 9. Establish and maintain separate financial accounts as required by federal law or regulations. 10. Advise and make recommendations to the governor and the legislature on all matters concerning the department's objectives. 11. Delegate the administrative functions, duties and powers as the director deems necessary to carry out the efficient operation of the department. 41-704. Emergency telecommunication services; administration; annual report; revolving fund A. The director of the department of administration shall: 1. Adopt rules and procedures for administering and disbursing monies deposited in the emergency telecommunication services revolving fund, and at least quarterly review and approve requests by political subdivisions of this state for payment for operating emergency telecommunication service systems. 2. In fiscal year 2001-2002 and every two years thereafter, recommend to the legislature the amount of the telecommunication services excise tax that will be required during the following two fiscal years for the purposes of this section, with supporting documentation and information. The legislature shall review the recommendation and take legislative action regarding the recommendation. 3. On or before December 1 of each year, submit a report to the director of the joint legislative budget committee containing: (a) The department's expenditure plan for the current fiscal year for the emergency telecommunication services revolving fund established by this section. (b) The status of the department's implementation of improvements to the 911 emergency system. B. The emergency telecommunication services revolving fund is established to be administered by the director. The fund shall be used for: 1. Necessary or appropriate equipment or service for implementing and operating emergency telecommunication services through political subdivisions of this state. Priority shall be given to establishing emergency telecommunication services in those areas of the state that are without emergency telecommunication services. 2. Necessary or appropriate administrative costs or fees for consultants' services, not to exceed five percent of the amounts deposited annually in the revolving fund. The department may use up to two-thirds of the five percent of the amounts deposited annually in the revolving fund for administrative costs. The remainder of the five percent may be allocated for local network management of contracts with public safety answering points for emergency telecommunication services. 3. Monthly recurring costs of emergency telecommunication services, including expenditures for capital, maintenance and operation purposes. 4. A wireless carrier's costs associated with the provision, development, design, construction and maintenance of the wireless emergency telecommunication services in an amount that the wireless carrier has not recovered through the deduction mechanism specified in federal law. C. At the end of each fiscal year, any unexpended monies in the fund, including interest, shall be carried over and do not revert to the state general fund but shall be applied to the extent possible to reduce the levy under section 42-5252, subsection A for the following fiscal year. 41-705. Racing investigation fund; distributions; refund A. The racing investigation fund is established consisting of monies deposited for the projected cost of investigations conducted pursuant to title 5, chapter 1 by persons, partnerships, associations or corporations that hold a permit for a racing meeting under title 5. Monies deposited into the fund shall be made in a reasonable amount based on a request from the director of the department of gaming. The department of administration shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. B. Monies distributed from the fund are subject to the following restrictions: 1. Distributions shall be made pursuant to instructions from the director of the department of gaming to the director of the department of administration. 2. Distributions shall be limited to expenses that are authorized under title 5, chapter 1, article 1 and that are incurred in compliance with chapter 23 of this title including open and competitive bidding for all services. C. On the instruction of the director of the department of gaming, the department of administration at the conclusion of an investigation shall refund to the permittee the difference between the amount deposited into the fund by that permittee and the total actual cost of the investigation. 41-706. State employee living donor leave; definitions A. An employee is entitled to a leave of absence for the time specified for the following purposes: 1. Five work days to serve as a bone marrow donor for a bone marrow transplant if the employee provides the employee's employer with written verification that the employee is to serve as a bone marrow donor. 2. Thirty work days to serve as an organ donor for a human organ transplant if the employee provides the employee's employer with written verification that the employee is to serve as an organ donor. B. An employee who is granted a leave of absence pursuant to this section is entitled to receive base pay without interruption during the leave of absence. For the purpose of determining seniority, pay or pay advancement and performance awards and for the receipt of any benefit that may be affected by a leave of absence, the service of the employee is considered uninterrupted by the leave of absence. C. The employer shall not penalize an employee for requesting or obtaining a leave of absence pursuant to this section. D. For the purposes of this section: 1. "Bone marrow" means the soft material that fills human bone cavities. 2. "Bone marrow transplant" means the medical procedure by which transfer of bone marrow is made from the body of a person to the body of another person. 3. "Employee" means a person employed in a position in any office, board, commission or department in state government, a person employed by the judiciary or a person employed by a university under the jurisdiction of the Arizona board of regents or a community college district. 4. "Human organ transplant" means the medical procedure by which transfer of an organ or part of an organ is made from the body of a person to the body of another person. 5. "Organ" means human organs or parts of an organ that are capable of being transferred from the body of a person to the body of another person. 41-707. Investment yield restriction report On or before October 1 of each year, the director shall submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report on the costs associated with meeting the investment yield restriction requirements for any tax-exempt deficit financing agreements entered into on or after January 1, 2009, including whether the requirements have reduced the yield of investments or required the state to pay any penalties to the federal government. 41-708. Annual report; state employee salaries; full-time equivalent positions; definitions A. On or before October 1 of each year, the department shall collect from each budget unit and shall submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report containing the number of full-time equivalent positions and the total amount of salaries for each budget unit for the prior fiscal year, delineated by: 1. Retirement system. 2. Employee tier. 3. Fund source. B. For the purposes of this section: 1. "Budget unit": (a) Means a department, commission, board, institution or other agency of this state that receives, expends or disburses state monies or incurs obligations of this state. (b) Does not include the Arizona board of regents, universities under the jurisdiction of the Arizona board of regents and community college districts. 2. "Employee tier" means a class of employees in a retirement system in which each employee is subject to the same employer contribution rate pursuant to title 38, chapter 5. 41-709. Gifts and donations for employee recognition A state department or agency may accept gifts and donations from a public entity, a private entity or any person for the conduct of employee recognition programs. Gifts and donations for employee recognition programs are subject to the requirements of title 35, chapter 1, article 3 and chapter 23 of this title. 41-710. Information technology personnel; criminal history records; definitions A. Before accepting an offer of employment, an applicant for an information technology position in the department of administration shall submit a full set of fingerprints to the department of administration for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The director of the department of administration shall request personnel who were employed in information technology positions on or before July 18, 2000 to submit a full set of fingerprints if the director determines that it is necessary to ensure the privacy, confidentiality or integrity of data within the department's control. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. B. The department of administration shall not disclose information obtained pursuant to subsection A of this section except to members of the department's staff solely for the purpose of employment of information technology personnel by the department. C. For the purposes of this section: 1. "Applicant" means any person who seeks employment as a new hire or any employee of the department of administration who seeks a transfer, a reclassification or a reassignment to an information technology position. 2. "Information technology position" means any position that is in the department of administration, that requires the operation of computer systems that contain or transmit data to which access is restricted by virtue of applicable federal or state laws, rules or regulations and that requires access to the restricted data in order to fulfill the requirements of the position. 41-710.01. Reimbursement of transportation and telecommuting costs; definition A. The director shall adopt rules to provide for the reimbursement of up to one hundred per cent of the cost to state employees of either: 1. Public transportation, vanpool or private bus service to and from their place of employment. 2. Telecommuting connectivity. B. For the purposes of this section, "public transportation" means local transportation of passengers by means of a public conveyance operated or licensed by an incorporated city or town or a regional public transportation authority. 41-710.02. Skilled through alternative routes; state employment applicants; report; definition A. The director shall evaluate all state employee positions and identify the positions that are suitable for skilled through alternative routes applicants. B. The department's online state jobs application portal shall identify those positions that are suitable for applicants who have postsecondary degrees and those positions that are suitable for skilled through alternative routes applicants. C. On or before October 1, 2023, the director shall submit a report that details which state employee positions may be modified to accept skilled through alternative routes applicants to the governor, the president of the senate and the speaker of the house of representatives and shall submit a copy of this report to the secretary of state. D. For the purposes of this section, "skilled through alternative routes applicant" means an individual who has developed skills through job training, community college, military service or an apprenticeship and who meets all of the following: 1. Is currently active in the workforce. 2. Has a high school diploma or the equivalent of a high school diploma. 3. Does not have a bachelor's degree or graduate degree. 41-710.03. Erroneous convictions fund (Rpld. 7/1/27) A. The erroneous convictions fund is established consisting of monies appropriated to the fund by the legislature. The department of administration shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations. B. The department of administration shall use the monies deposited in the erroneous convictions fund to fund claims brought pursuant to title 13, chapter 38, article 36. C. Any state agency, board, commission or department may not use monies from any fund or source other than the erroneous convictions fund to pay any reimbursement or compensation that is awarded pursuant to title 13, chapter 38, article 36. This state is not liable for any amount to pay any reimbursement or compensation awarded pursuant to title 13, chapter 38, article 36 in excess of the monies available in the erroneous convictions fund. 41-711. Establishment of automation operation center; fund; report A. The department may establish an automation operation center to serve the management and other needs of state government. B. An automation operations fund is established for paying for the costs of any automation operation applications implemented by the department and otherwise allowed by law. C. The fund consists of: 1. Legislative appropriations. 2. Grants, except for otherwise specifically dedicated grants, received for automation operations, consolidation and cost reduction or cost avoidance functions. 3. Monies derived from implementing and operating an automation program. 4. Monies derived from the sale or exchange of automation assets. 5. Monies derived from agencies and political subdivisions and other states or their agencies in payment for services provided by the department's automation operation center. D. The department of administration shall administer the fund. Separate accounts shall be established to account for monies received and spent pursuant to automation agreements with other states or their agencies or the Arizona health care cost containment system administration in fulfillment of an agreement entered into pursuant to section 36-2925. The separate accounts are continuously appropriated for the purposes specified in the agreements. All other monies in the fund are subject to annual legislative appropriation to the department. E. In connection with its annual budget request to the legislature, the department shall prepare a report that accounts for all monies deposited in the fund, the sources of the monies received for deposit, the purposes for which the fund monies were used during the preceding fiscal year and the plans for using fund monies during the next fiscal year. F. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 41-712. Telecommunications program office; state contractor; cost of operation; employees; report; exception A. The director shall establish a telecommunications program office within the department to enter into a primary contract with a corporation authorized to do business in this state for the contractor to provide for the installation and maintenance of telecommunication systems and to act as the state's agent for telecommunication carrier services to the offices, departments and agencies of this state. Each office, department and agency of this state shall contract with the primary contractor through the telecommunications program office and make payment to the primary contractor for its telecommunications needs. B. With the approval of the director, the telecommunications program office may enter into more than one contract for each statewide telecommunications product or service not provided by the primary contractor. C. The director shall pay administrative costs of the telecommunications program office, and each office, department or other state agency shall pay from available monies the proportionate cost of administration of the office as determined by the director. In carrying out this subsection, the director shall only employ those contract managers, telephone operators, help desk personnel and forensic investigators required to oversee the primary contract and administer efficiently the telecommunications program office. D. The department shall prepare and submit an annual consolidated telecommunications budget report to the joint legislative budget committee in connection with its annual budget request showing the previous fiscal year's actual payments and the next fiscal year's anticipated payments charged and received by the primary contractor from state offices, departments and agencies for telecommunications services. E. All procurement pursuant to this section shall be as prescribed in chapter 23 of this title unless otherwise provided by law. F. Any contract involving the use of a state highway right-of-way is subject to approval pursuant to sections 28-304, 28-363, 28-7045, 28-7048 and 28-7209. G. This section does not apply to the cotton research and protection council established by section 3-1082. 41-713. Telecommunications fund; report A. A telecommunications fund is established for paying costs incurred in operating the telecommunications program office established pursuant to section 41-712. B. The fund consists of: 1. Legislative appropriations. 2. Grants, except for otherwise specifically dedicated grants, received for telecommunication operations, consolidation and cost reduction or cost avoidance functions. 3. Monies derived from administering the telecommunications program office. 4. Monies derived from the sale or exchange of telecommunications assets or any assets that may be used to provide telecommunication access. 5. Monies derived from agencies and political subdivisions and other states or their agencies in payment for services provided by the telecommunications program office established pursuant to section 41-712. C. The department of administration shall administer the fund. All monies in the fund, including subaccounts and private accounts such as the infrastructure investment account, are subject to annual legislative appropriation to the department. D. In connection with its annual budget request to the legislature, the department shall prepare a report that accounts for all monies deposited in the fund, the sources of the monies received for deposit, the purposes for which the fund monies were used during the preceding fiscal year and the plans for using fund monies during the next fiscal year. E. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 41-714. Automation projects fund; subaccounts; exemption; annual report; purpose; joint legislative budget committee review A. The automation projects fund is established consisting of monies appropriated by the legislature. The department of administration shall administer the fund. Monies in the fund are subject to legislative appropriation. The director shall establish a separate subaccount for each agency that implements, upgrades or maintains automation and information technology projects. Monies in each subaccount are subject to legislative appropriation. Monies may not be transferred between agency subaccounts and are exempt from the provisions of section 35-190 relating to lapsing of appropriations, except that on completion of an automation and information technology project, all monies remaining unexpended and unencumbered in the subaccount revert to their fund of origin. On or before September 1 of each year, the department shall submit a report to the joint legislative budget committee on each reversion made pursuant to this subsection in the prior fiscal year. B. Monies in the fund shall be used to implement, upgrade or maintain automation and information technology projects for any state agency. C. Before the expenditure of any monies from the fund, the joint legislative budget committee shall review the expenditure plan presented by the department for the fiscal year in which the monies are to be spent. The expenditure plan shall include the project cost, deliverables, timeline for completion and method of procurement. 41-722. Powers and duties relating to finance A. The department shall assist the governor in his duties pertaining to the formulation of the budget, and shall correlate and recommend revision of estimates and requests for appropriations of the budget units. B. The director shall: 1. Make changes or improvements in state accounting practices, systems and procedures as he deems advisable. 2. Continually evaluate and plan improvements of state fiscal matters and annually submit his recommendations to the governor. 3. Recommend to the governor such administrative reorganization and management practices as he deems necessary for the economical and efficient operation of state government. 4. Develop and maintain, in cooperation with each state agency and recommend to the governor a comprehensive, long-range plan for capital outlay, consistent with means available for financing the same. 5. Promulgate rules, regulations or procedures to carry out the provisions of this article. 41-723. Governor's office of strategic planning and budgeting; duties The director of the governor's office of strategic planning and budgeting shall: 1. Confer with officials of federal agencies concerning grants-in-aid generally, and particularly in regard to federal-aid programs in progress in this state. 2. On or before September 1 of each year or with the submission of budget estimates as provided in section 35-113, report to the staff of the joint legislative budget committee findings and recommendations in the following areas: (a) Except for a university under the jurisdiction of the Arizona board of regents, the use of federal monies by any state agency that receives federal monies, that anticipates receipt of federal monies or that administers a program supported by federal monies. A university shall submit an audited schedule of federal award spending for the preceding fiscal year to the staff of the joint legislative budget committee. The reports that all state agencies, except universities, are required to submit must: (i) Delineate the federal monies received for the preceding fiscal year. (ii) Delineate the federal monies to be used by the state agency for the current and upcoming fiscal year, including any programs supported by federal monies in which the loss of federal monies may impact the continuity or delivery of services. (iii) Identify the date, if known, on which federal monies are set to expire. (iv) Identify any obligations, agreements, joint exercise of powers agreements, maintenance of efforts agreements or memoranda of understanding that may be impacted by federal or state decisions regarding federal receipts, including any state matching requirements. (v) Calculate the percentage of federal monies from the total monies available for the state agency for the fiscal year. (b) If any state agency received notice of a reduction in federal monies from a specific federal grant of fifty percent or more from the previous fiscal year's funding, identify the plan to either reduce or eliminate the services provided through the grant or to continue services without any increase to any state resources. (c) Federal grant-in-aid programs in which this state does not participate. (d) Legislation necessary for activation of federal programs in which this state does not participate. (e) Legislation necessary for improved operation of federal grant-in-aid programs in progress in this state. (f) The advisability of accepting new grant-in-aid programs or discontinuing programs already in progress. 3. Have access to the books, accounts, reports and vouchers and all other pertinent records of all state agencies for the purpose of carrying out the provisions of this section. 41-724. Exemptions A. The Arizona board of regents, the Arizona commerce authority and the legislative and judicial branches of state government shall not be subject to the provisions of this article except as prescribed by law. B. The Arizona board of regents and the judicial branch of state government shall be subject to the provisions of sections 35-112 and 35-113. 41-725. Comprehensive database of receipts and expenditures of state monies; local reporting; definition A. The department shall establish and maintain an official internet website that is electronically searchable by the public at no cost and that contains a comprehensive database of receipts and expenditures of state monies. The database shall include the information as prescribed in the comprehensive annual financial report of a budget unit that has been made by a certified public accountant who is currently certified by the Arizona state board of accountancy or who has a limited reciprocity privilege pursuant to section 32-725 and who is not an employee of the department. The report shall be made in accordance with generally accepted auditing standards and shall contain financial statements that are in conformity with generally accepted accounting principles. If the department has a comprehensive annual financial report of a budget unit that has been presented with a certificate of achievement for excellence in financial reporting by the governmental finance officers association, the department may post such a financial report to satisfy the requirements of this subsection. B. The department must present information in the database in a manner that is intuitive to members of the general public, including graphical representations. The database must allow users to: 1. Search and aggregate payments by individual budget units and programs. 2. Search and aggregate payments by individual vendors, including the total amount of state funding awarded by all budget units to individual vendors. 3. Download information yielded by a search of the database. 4. Access electronic versions of contracts that relate to expenditures. C. The database shall include the following information: 1. Annual receipts of revenues, including: (a) Receipts or deposits by each state budget unit into funds established in the state treasury. (b) Taxes. (c) Earnings by each budget unit, including amounts collected for merchandise sold, services performed and licenses, certifications and permits issued. (d) Revenue from the use of publicly owned money or property, including leases and licenses. (e) Gifts, donations and grants received, including amounts received from the federal government. (f) Any other type of public revenue, however denominated or derived, deposited into the state treasury. 2. Annual expenditures and disbursements of state revenues by each state budget unit from funds established in the state treasury, as applicable, including: (a) Bond payments, debt service and redemption charges and fees. (b) Contractual services and cooperative agreements. (c) Commodities. (d) Capital outlay. (e) Revenue sharing and other aid to other levels of government, including tribal governments. (f) Any other expenditure or disbursement of state revenue from the state treasury, however denominated or structured. D. Expenditure data shall list: 1. The manner of payment, including check or warrant or credit, debit or other purchase card. 2. The funding source, including categorical codes and the state accounts the expenditure is appropriated from. 3. A standardized descriptive title of the type and purpose of the transaction. 4. The date and amount of each payment. 5. The state agency or budget unit making the payment. 6. The name of the person or entity receiving the payment, including to the extent practicable a parent entity of the recipient if the recipient is owned by another entity. 7. The primary location of performance under the contract, including the county, city or town and legislative district. E. The database shall not include: 1. Tax payment or refund data that include confidential taxpayer information. 2. Data relating to payments of state assistance to individual recipients. 3. Payees' addresses or telephone numbers, but the department may allow public access in the database to information identifying the county in which the payee is located. 4. Work product in anticipation of litigation or information subject to attorney-client privilege. 5. Any other information that is designated by law as confidential or preapproved as confidential by the department pursuant to rule. The department and any officer or employee of the department: (a) May rely on a determination made by a budget unit regarding confidentiality of information relating to the budget unit's expenditures. (b) Are immune from civil liability for posting confidential information under this section if the posting is in reliance on the budget unit's determination relating to confidentiality. F. Each budget unit shall cooperate with the department as necessary to implement and administer this section. Each budget unit shall provide to the department any additional data in a manner and schedule prescribed by the department that are required to be included in the database. The database shall be updated within thirty days after the end of each fiscal year and may be updated as new data become available. The data shall be retained in the database for at least ten full fiscal years. G. The governor, secretary of state, state treasurer and legislature shall include a link to the database under this section in their individual official websites. Each budget unit that maintains a generally accessible internet website, or for which a generally accessible website is maintained, shall include a link on that website to the database under this section. H. Each local government shall establish and maintain an official internet website that is accessible to the public at no cost and that contains a comprehensive reporting of all revenues and expenditures over five thousand dollars of local monies in as nearly as practicable the same manner and consistent with subsections B through E of this section. The database shall include the information as prescribed in the comprehensive annual financial report of a budget unit that has been made by a certified public accountant who is currently certified by the Arizona state board of accountancy or who has a limited reciprocity privilege pursuant to section 32-725 and who is not an employee of the local government. The report shall be made in accordance with generally accepted auditing standards and shall contain financial statements that are in conformity with generally accepted accounting principles. If a local government has a comprehensive annual financial report of a budget unit that has been presented with a certificate of achievement for excellence in financial reporting by the governmental finance officers association, the local government may post such a financial report to satisfy the requirements of this subsection. A link to this data shall be displayed in a prominent place on the local government's official internet website or on a website of an association of cities and towns for cities and towns that do not have official websites and on the department's official internet website as prescribed in this section. The data shall be updated no less frequently than every three months and may be updated as new data becomes available. The data shall be retained and accessible online for at least three fiscal years. I. For the purposes of this section "local government" means: 1. A county, city or town with a population of more than twenty-five hundred persons. 2. Any community college district and school district having a student count of more than six hundred pupils. 3. A state university. 41-726. Debt; annual report; definition A. Beginning on or before December 1, 2013 and each December 1 thereafter, the department shall submit a report to the speaker of the house of representatives, the president of the senate and the staff director of the joint legislative budget committee that addresses the cost to this state to pay the remaining balance of any outstanding state debt and obligations and, based on the current interest rates, the interest that would be saved. The report shall include an analysis that gives the amount of the savings if this state pays the outstanding state debt and obligations, under current economic conditions, in increments of fifty million dollars up to two hundred million dollars. The analysis shall focus on approaches that would produce the highest cost savings to this state. B. For the purposes of this section, "state debt and obligations" means the following obligations that are paid with state general fund monies: 1. Outstanding general obligation bonds. 2. Long-term notes and obligations. 3. Certificates of participation and other obligations pursuant to any lease-purchase agreement. 4. Revenue bonds. 41-732. Duties relating to general accounting activities A. The director or the director's authorized representative shall be the general accountant of this state and keeper of all public account books, vouchers, documents and papers relating to accounts and contracts of the state, and to its revenue, debts and fiscal affairs, not required by law to be placed in some other office or kept by some other person. B. The general accountant shall: 1. Draw all payments upon the treasury for money, except in cases otherwise expressly provided by law. The general accountant shall maintain a record of all warrants drawn and electronic funds transfers, by number, date of issue, payee and amount. 2. Keep, or require budget units to keep, an account of all debts and credits between this state and the United States, and between this state and every other state, officer or person with whom this state has financial dealings, and of any separate fund of this state, or touching any duty of the general accountant's office. 3. Upon approval by the governor, give information in writing to any person authorized by law to examine the general accountant's accounts or papers, when required, upon any subject relating to the fiscal affairs of this state or touching any duty of his office. 4. Keep a seal of office which shall be used to authenticate all warrants signed by the general accountant and all writings, papers and documents certified from the office of the general accountant. 41-733. Examination of witnesses When it is necessary in the exercise of his powers and duties, the director or his authorized agents may examine the parties and others on oath, touching any material matters, and for that purpose may administer oaths, issue subpoenas and compel witnesses to attend before him and give evidence, in the same manner and by the same means allowed by law to courts of record. 41-734. Preservation of accounts; copies; fees All accounts, vouchers, warrants, claims and supporting documents shall be preserved by the department pursuant to section 41-151.14 and copies of these documents shall be given to any person who applies for them and who tenders the fees as prescribed by the director. 41-735. Internal audit; authority to examine records; divulgence of restricted information; violation; classification; public records exception A. Except as provided in subsection C, the department shall have access to, and authority to examine, any and all books, accounts, reports, vouchers, correspondence files and other records, bank accounts, money and other property of any state agency, whether created by the constitution or otherwise. An officer or employee of any such agency, having such records under his control, shall permit access to and examination thereof upon the request of the director or his authorized representative. Any officer or person who knowingly fails or refuses to permit such access and examination is guilty of a class 2 misdemeanor. B. If the director or any member of his staff or other employee knowingly divulges or makes known in any manner not permitted by law any particulars of any record, document or information the disclosure of which is restricted by law he is guilty of a class 5 felony. C. Books, accounts, reports or other records which are prescribed confidential with limited access by either state or federal law are not subject to examination under this section. D. Draft working papers and other draft audit files maintained by the department are not public records and are exempt from title 39, chapter 1. The information contained in draft working papers and draft audit files prepared pursuant to a specific audit is not subject to disclosure, except to the attorney general or to any county attorney in connection with an investigation made or action taken in the course of their official duties. On completion and issuance of the final audit report, draft working papers and draft audit files become public records. 41-736. Forest reserve monies When this state receives any monies that belong to the counties from the federal government from forest reserves the department shall: 1. Determine the amount to pass through to each county according to the forest acreage report for each county. 2. Distribute the monies as directed by the federal government among these counties. 3. Transmit these payments to the county treasurers for deposit in their respective county general funds. 41-737. Forms for reports by county assessors and treasurers The department shall cause suitable forms to be printed for use of the several county assessors in taking statistics as required by law, and for use of the several county treasurers in making reports to the department. The department shall pay for the printing of such forms. 41-738. Membership in national organizations; attending conventions The director or his authorized representative is authorized to hold membership in, and to maintain membership by payment of dues to, the national organizations of state officials occupying a like office or performing similar functions, and is authorized to attend annual conventions of such national organizations. 41-739. Drawing illegal warrant; classification If the director or any employee or officer of the department knowingly issues a warrant upon the treasury not authorized by law, he is guilty of a class 6 felony. 41-740. Nonperformance of duty; classification If the director or any duly appointed officer or supervisor charged with duties and responsibilities under this article knowingly fails or refuses to perform any duty required of him by law, he is guilty of a class 1 misdemeanor. 41-740.01. Arizona financial information system collections fund; purpose; transaction fee; joint legislative budget committee; annual report A. The Arizona financial information system collections fund is established consisting of monies collected pursuant to subsection C of this section. The department shall administer the fund. Monies in the fund are subject to legislative appropriation. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. B. Monies in the fund shall be used to reimburse the department for the costs of operating the Arizona financial information system. C. The department may charge a transaction fee to each state agency that uses the Arizona financial information system. The department shall submit a proposed transaction fee to the joint legislative budget committee before establishing or changing the fee. On or before December 1 of each year, the department shall submit a report to the joint legislative budget committee on the Arizona financial information system transaction count by agency and fund source. 41-741. Definitions In this article and articles 5 and 6 of this chapter, unless the context otherwise requires: 1. "Appointing authority" means the person or group of persons authorized by law or delegated authority to make appointments to fill positions. 2. "At will" means an employment relationship where either party to the relationship may sever the relationship at any time for any reason other than an unlawful reason. 3. "Break in service" means a separation from state employment, regardless of the reason for separation. 4. "Change in assignment" means movement of an employee to a different position in the same state agency or another state agency. 5. "Covered employee" means an employee who: (a) Before September 29, 2012, is in the state service, is not uncovered pursuant to section 41-742, subsection A and has remained in covered status without a break in service since that date. (b) Before September 29, 2012, is in the state service, is employed as a correctional officer I, correctional officer II, correctional officer III or community corrections officer and has remained in covered status without a break in service since that date. (c) Before September 29, 2012, is in the state service, is a full authority peace officer as certified by the Arizona peace officer standards and training board and has remained in that status without a break in service since that date. (d) On or after September 29, 2012, is a correctional officer I, correctional officer II, correctional officer III or community corrections officer and is appointed to a position in the covered service, but does not include a position in any other class in the correctional officer class series or the community correctional officer class series or in any other correctional class series. (e) On or after September 29, 2012, is a full authority peace officer as certified by the Arizona peace officer standards and training board and is appointed to a position that requires such a certification in the covered service. 6. "Covered service" means that employment status conferring rights of appeal as prescribed in sections 41-782 and 41-783 or section 41-1830.16, as applicable. 7. "Director" means the director of the department of administration, or the director's designee, who is responsible for administering the state personnel system pursuant to applicable state and federal laws. 8. "Employee" means all officers and employees of this state, whether in covered service or uncovered service, unless otherwise prescribed. 9. "Full authority peace officer" means a peace officer whose authority to enforce the laws of this state is not limited by the rules adopted by the Arizona peace officer standards and training board. 10. "Original probationary period" means the specified period following initial appointment to covered service. 11. "Probationary period" means a working test period of employment in a covered service position for evaluation of the employee's work. 12. "Promotional probation" means the specified period of employment following promotion of a permanent status employee to another covered service position that has a higher pay grade. 13. "Rules" means rules adopted by the department of administration, human resources division. 14. "Significant procurement role": (a) Means any role that includes any of the following duties: (i) Participating in the development of a procurement as defined in section 41-2503. (ii) Participating in the development of an evaluation tool. (iii) Approving a procurement as defined in section 41-2503 or an evaluation tool. (iv) Soliciting quotes greater than ten thousand dollars for the provision of materials, services or construction. (v) Serving as a technical advisor or an evaluator who evaluates a procurement as defined in section 41-2503. (vi) Recommending or selecting a vendor that will provide materials, services or construction to this state. (vii) Serving as a decision maker or designee on a protest or an appeal by a party regarding an agency procurement selection or decision. (b) Does not include making decisions on developing specifications and the scope of work for a procurement as defined in section 41-2503 if the decision is based on the application of commonly accepted industry standards or known published standards of the agency as applied to the project, services, goods or materials. 15. "State agency" means a department, board, office, authority, commission or other governmental budget unit of this state and includes an agency assigned to a department for administrative purposes. State agency does not include the legislative and judicial branches, the Arizona board of regents, state universities, the Arizona state schools for the deaf and the blind, the department of public safety, the Arizona peace officer standards and training board, the cotton research and protection council or public corporations. 16. "State personnel board" means the board established by section 41-781. 17. "State personnel system" means all state agencies and employees of those agencies that are not exempted by this article. 18. "State service" means all offices and positions of employment in state government that, before September 29, 2012, were subject to the provisions of articles 5 and 6 of this chapter that were in effect before September 29, 2012. 19. "Supervisor" means a state employee who has one or more other state employees reporting directly to the person and, for those state employees, typically has the authority to: (a) Approve sick or annual leave. (b) Recommend hiring, discipline or dismissal. (c) Assign or schedule daily work. (d) Complete a performance evaluation. 20. "Uncovered employee" means an employee in uncovered service. 21. "Uncovered service" means employment at will and includes all state employees except those in covered service. 41-742. State personnel system; covered and uncovered employees; application; exemptions A. Beginning September 29, 2012, unless otherwise prescribed in this article: 1. All new hires are at will uncovered employees. 2. Any employee who meets any of the following criteria is an at will uncovered employee: (a) Is employed as an attorney in a position assigned to the attorney salary schedule. (b) Is a supervisor. (c) Is at a pay grade of nineteen or above or, if a successor compensation system is established, in an equivalent pay range as determined by the director. (d) Is in a position assigned to the information technology salary schedule, in a position assigned to an information technology classification or, if a successor compensation system is established, in an equivalent pay range as determined by the director. 3. Any covered employee who voluntarily accepts a change in assignment to a position in the uncovered service, regardless of whether the voluntary change in assignment is a promotion, demotion or lateral transfer, is an at will uncovered employee on the start date of the voluntary change in assignment. 4. A covered employee may voluntarily elect to become an at will uncovered employee without a change in assignment on approval by the state agency head and the director. If approved, the change from covered to uncovered status is immediate. 5. Once a covered employee becomes an at will uncovered employee, the change is irrevocable. B. Except as provided in subsection F of this section, the purpose of this article is for all state agencies in the state personnel system to treat employees pursuant to the following principles: 1. Recruiting, selecting and advancing employees on the basis of the employee's relative ability, knowledge and skills after open competition. 2. Providing compensation based on merit, performance, job value and competitiveness within applicable labor markets. 3. Training employees if the training will result in better organizational and individual performance. 4. Retaining employees on the basis of the adequacy of their performance, correcting inadequate performance where possible and appropriate and separating employees whose performance is inadequate. 5. Managing applicants and employees in all aspects of personnel administration without regard to political affiliation, race, color, national origin, sex, age, disability or religious creed and with proper regard for their privacy and constitutional rights as citizens. 6. Ensuring that employees are protected against coercion for partisan political purposes and are prohibited from using their official authority for the purpose of interfering with or affecting the result of an election or nomination for office. C. The director shall establish and administer the state personnel system, including: 1. A classification system and job classes and associated knowledge, skills and abilities for those classes. 2. A centralized job announcement system to streamline statewide recruiting for applicants. 3. A centralized employment system to be used by all successful applicants, including a common application form to be used by all state agencies. 4. A compensation system, including assigning pay ranges for all job classes and special pay plans for certain classes or groups of employees considering such factors as occupational patterns, economic conditions and pay plans common to government, business and industry. 5. A statewide training program. 6. A statewide performance management system. 7. An audit function to review state agencies' processes and compliance with applicable statutes, personnel rules and policies. 8. An integrated system to process personnel, payroll and benefits transactions and serve as the system of record for state employees. D. This article and articles 5 and 6 of this chapter do not apply to: 1. An elected state officer. An elected state officer means only elected officials and does not include the employees of elected state officers unless expressly provided. 2. Members of boards and commissions who are appointed by the legislature or the governor, board members appointed pursuant to section 41-619.52 unless otherwise prescribed by law, employees of the Arizona legislative council, employees appointed or employed by the legislature, any legislative agency or either house of the legislature and employees of the supreme court and the court of appeals. 3. The Arizona board of regents, officers or employees of state universities and personnel of the Arizona state schools for the deaf and the blind. 4. Patients or inmates employed in state institutions. 5. Officers and enlisted personnel of the national guard of Arizona and employees of the department of emergency and military affairs who occupy Arizona national guard positions identified as mobilization assets. 6. The cotton research and protection council. 7. The department of public safety. 8. The Arizona peace officer standards and training board. E. Unless otherwise prescribed in this article, subsection A, paragraphs 1, 2 and 3 of this section do not apply to either an initial appointment to or changes in assignment to: 1. An employee of any state agency who is a full authority peace officer as certified by the Arizona peace officer standards and training board. 2. An employee of the state department of corrections who is employed as a correctional captain, correctional lieutenant, correctional sergeant, correctional corporal, correctional officer I, correctional officer II, correctional officer III, correctional officer IV, community corrections unit supervisor, community corrections group supervisor, community corrections officer or, if a successor classification system is established, an equivalent job class as determined by the director. F. Subsection B, paragraph 1 of this section, relating to open competition and subsection B, paragraph 4 of this section and subsection B, paragraph 5 of this section, relating to political affiliation, do not apply to: 1. Employees of the governor's office. 2. Employees of offices of elected officials who either: (a) Report directly to the elected official. (b) Head a primary component or report directly to the head of a primary component of the office of the elected official. (c) As a primary duty, determine or publicly advocate substantive program policy for the office of the elected official. 3. The state agency head and each deputy director, or equivalent, of each state agency and employees of the state agency who report directly to either the state agency head or deputy director. 4. Each assistant director, or equivalent, of each state agency and employees in the state agency who report directly to an assistant director. 5. Attorneys in the office of the attorney general. 6. Employees in investment-related positions in the state retirement system or plans established by title 38, chapter 5, article 2, 3, 4 or 6. G. This article and articles 5 and 6 of this chapter do not confer any rights in excess of, or in addition to, those previously authorized to any state employee. H. This article does not create or confer any contractual employment right for any employee and, unless otherwise provided by law, state agencies are prohibited from executing employment contracts with any state employee. I. Any communications, including policy manuals, employee handbooks, job offers and performance appraisals and other communications as determined by the director, whether in writing or oral, that conflict with article 1, 5 or 6 of this chapter or this article are void and do not alter or supersede article 1, 5 or 6 of this chapter or this article. 41-743. Powers and duties of the director A. The director is responsible for the direction and control of personnel administration. B. The director shall: 1. Employ staff as necessary to perform the duties prescribed by this article. 2. Establish those offices as the director determines necessary to maintain an effective and efficient program of personnel administration. 3. Adopt rules and procedures relating to personnel and personnel administration for both covered and uncovered employees. The rules shall include: (a) The establishment and maintenance of classification and compensation plans. (b) The recruitment, selection and appointment process of eligible applicants. (c) Leave benefits and administration. (d) Procedures for the periodic and regular review and evaluation of the quality and quantity of work performed by employees. (e) Changes to employment status. (f) Procedures for the review of complaints if the complaint contains an allegation of discrimination or harassment. (g) Procedures requiring review by the director of dismissals, suspensions for more than eighty working hours or involuntary demotions before administering the action. (h) Grievance rights specific to covered employees. (i) Appeal rights and other rules specific to covered employees. (j) Any other aspects of personnel administration as determined by the director. 4. Provide an annual report and recommendation to the legislature and the joint legislative budget committee as provided in section 41-751. 5. Establish a mandatory program of personnel management training for all employees with supervisory responsibility that is appropriate to the nature and scope of the employees' responsibilities. The director may waive the mandatory training on a case by case basis. The training shall include at least the following subjects: (a) Basic employee supervision. (b) Employee performance evaluations. (c) Employee discipline. (d) Other subjects as the director determines. 6. Provide consultation to state agency management in all aspects of personnel management to increase efficiency and economy in state agencies by improving the methods of personnel administration with full recognition of the requirements and needs of management. C. The director may: 1. Delegate specific personnel functions to a state agency head consistent with legal requirements. 2. Enter into agreements with any state agency or political subdivision of this state or any agency of a political subdivision of this state to furnish personnel administration services and facilities of the department. Unless monies have been appropriated by the legislature for this purpose, any agreement shall provide for reimbursement to this state of the actual cost of the services and facilities furnished, as determined by the department. 3. Subject to legislative appropriation, contract for the services of consultants necessary to perform the annual salary plan and salary plan adjustment recommendations. D. Subsection B, paragraph 3, subdivision (g) of this section relating to review by the director for certain disciplinary actions does not apply to those employees listed in section 41-742, subsection F. 41-744. Nonconform