38-612

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. No administrative agency of this state may authorize any
other deduction.

B. 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 comprised principally of employees and former
employees of agencies of this state, subject to the following criteria:

(a) When comprised 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 comprised of at least twenty-five per cent of the academic personnel or of
the nonacademic employees of any state university.

(c) When comprised of at least twenty-five per cent of the academic personnel of
the Arizona state schools for the deaf and the blind.

(d) When comprised of at least five hundred state employees who are certified as
peace officers by the Arizona peace officer standards and training board established by
section 41-1821.

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. 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 they 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 fund raising 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 41-786.

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.

(d) Identity theft protection services.

13. A computer system as defined in section 13-2301 for personal use.

C. In order for the department of administration to establish and maintain a dues
deduction pursuant to subsection B, 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 B, 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 falls below the
criteria set forth in subsection B, 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 B, 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.

D. For those state officers and employees under payroll systems which 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.

E. 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.

F. 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.