AZ SB1254

Expands the definition of "covered employee" to include employees of the auditor general's office, state agency employees with audit functions as primary responsibility, and Department of Revenue employees involved in revenue collection, effective upon passage of the amendment.

Ensures these three new employee categories receive covered service status with appeal rights under the state personnel system, unless they voluntarily elect to become at-will uncovered employees with approval from the agency head and director.

Modifies Section 41-742 to exempt initial appointments and changes in assignment for auditor general staff, auditors in other state agencies, and revenue collection employees from the default "at will" uncovered employee status that applies to new hires.

Establishes that positions for these three employee categories shall remain in covered service for current incumbents and all future appointments unless the employee voluntarily becomes uncovered, mirroring protections previously limited to correctional officers and peace officers.

Applies these protections retroactively to employees already in these positions on or after the effective date of the amendment, granting them covered employee status if not previously uncovered.