AZ SB1272

Director of the Department of Administration may adopt rules to provide incentive rewards to state employees for backfilling vacant positions.

Governmental unit heads may use up to one-third of vacancy savings to provide incentive rewards to employees who backfill vacant positions for not more than five years, with two-thirds of savings reverting to the appropriated fund.

Vacant positions must be posted open for backfilling for 60 days, and employees may apply individually or as a team to backfill positions and receive proportionate amounts of the one-third vacancy savings.

Governmental unit heads must review employee performance every six months; employees who meet or exceed performance measures continue receiving the incentive reward, while those who fail to meet measures lose the reward and monies revert to the state fund.

Defines "backfill" as filling a vacant position with an employee of the same governmental unit, and "vacancy saving" as monies saved from unfilled positions that became vacant or were authorized after the bill's effective date.