AZ HB2672

Directs the director of the Department of Administration to develop a salary plan for state employees based on activity-based compensation, where employee pay is fixed to prescribed goals and value-added activities.

Allows the director to exempt employees from the activity-based compensation plan if their duties are not appropriate for this compensation method.

Requires the director to contract for consultant services to perform recommendations for the annual salary plan, salary plan adjustments, and the activity-based compensation plan.

Amends the annual report requirements to include advisory recommendations on the activity-based compensation plan alongside existing salary plan recommendations.

Requires personnel rules to establish an activity-based compensation plan as part of state employee compensation standards.