Session of 1999
         
HOUSE BILL No. 2522
         
By Committee on Appropriations
          
2-18
          
  9             AN  ACT concerning state officers and employees; relating to a state com-
10             pensation system with performance-based compensation provisions
11             and related personnel policies; amending K.S.A. 75-2938, 75-5541, 75-
12             5549 and 75-6512 and K.S.A. 1998 Supp. 75-2935 and repealing the
13             existing sections; also repealing K.S.A. 75-6801 and K.S.A. 1998 Supp.
14             75-2935f.
15      
16       Be it enacted by the Legislature of the State of Kansas:
17             New Section  1. (a) The state of Kansas values its employees as in-
18       dividuals and as the resource to provide efficient, effective and creative
19       public services to the people of Kansas. It is the goal of employees of the
20       state government to be responsive to the people of Kansas, while sup-
21       porting their employing agency's commitment to fiscally responsible and
22       equitable operations.
23             (b) It is the purpose of this act and the intent of the legislature that:
24             (1) The state government compensation system shall facilitate equity
25       across all state agencies and job classifications shall reflect meaningful
26       differences in the levels of skill necessary to perform agency tasks and it
27       shall provide an easily understood, broad-based position classification sys-
28       tem that defines the general scope and complexity of the work required;
29             (2) the performance appraisal component of the state compensation
30       system shall facilitate two-way communications between supervisors and
31       employees regarding expected levels of performance on behalf of the
32       employing agency and, ultimately, the people of Kansas;
33             (3) the performance management component of the state compen-
34       sation system shall be used to set employee objectives, communicate ob-
35       jectives, review employee achievements and support the employee in de-
36       livering excellent service and products to the employing agency and the
37       people of Kansas;
38             (4) the compensation, benefits and performance standards of the
39       state compensation system shall assist employees to achieve personal job
40       satisfaction and earn a livelihood and shall encourage employment loyalty
41       and high quality service to Kansas;
42             (5) the total employee compensation package of the state compen-
43       sation system shall reflect the economic conditions of the various occu-

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  1       pational labor markets, while rewarding employees who perform at above
  2       standard levels; and
  3             (6) the classification, evaluation and compensation systems and prac-
  4       tices of Kansas state government shall be administered in an efficient,
  5       cost-effective, responsive, fair and equitable manner to meet the needs
  6       of employing agencies, employees and the people of Kansas.
  7             New Sec.  2. (a) As used in this act, the state agencies in Group I
  8       are:
  9             (1) The following biennially-budgeted fee-funded agencies: Ab-
10       stracters' board of examiners; board of accountancy; state bank commis-
11       sioner; Kansas board of barbering; behavioral sciences regulatory board;
12       state board of healing arts; Kansas state board of cosmetology; state de-
13       partment of credit unions; Kansas dental board; state board of mortuary
14       arts; Kansas board of examiners in fitting and dispensing of hearing aids;
15       consumer credit commissioner; board of nursing; board of examiners in
16       optometry; state board of pharmacy; real estate appraisal board; Kansas
17       real estate commission; office of the securities commissioner of Kansas;
18       state board of technical professions; and state board of veterinary
19       examiners;
20             (2) the state corporation commission, citizens' utility ratepayer
21       board, health care stabilization fund board of governors, Kansas public
22       employees retirement system, Kansas lottery, Kansas racing and gaming
23       commission, Kansas technology enterprise corporation, state fire marshal
24       and Kansas wheat commission;
25             (3) the state board of regents and the following state educational
26       institutions under the control and supervision of the state board of re-
27       gents: Fort Hays state university; Kansas state university, including the
28       extension systems and agriculture research programs and the veterinary
29       medical center; Emporia state university; Pittsburg state university; uni-
30       versity of Kansas, including the university of Kansas medical center; and
31       Wichita state university; and
32             (4) the judicial branch and judicial council.
33             (b) All state agencies not specifically included in Group I are state
34       agencies in Group II.
35             (c) "State agency" has the meaning ascribed thereto under K.S.A.
36       75-3701 and amendments thereto.
37             (d) "Agency head" means an individual or body of individuals in
38       whom the ultimate legal authority of the state agency is vested by any
39       provision of law.
40             New Sec.  3. (a) The secretary of administration shall adopt policies
41       and may adopt rules and regulations for the purposes of implementing
42       and administering a performance-based system of compensation for the
43       state officers and employees of all state agencies in accordance with this

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  1       act. The system shall include a performance appraisal component, a per-
  2       formance management component and an education and training com-
  3       ponent. The system shall be applicable to state agencies in accordance
  4       with the provisions of this act.
  5             (b) On and after the first day of the first payroll period chargeable
  6       to the fiscal year ending June 30, 2001, each of the state agencies in Group
  7       I shall implement and administer a performance-based system of com-
  8       pensation for the state officers and employees of such agencies in ac-
  9       cordance with the provisions of this act. On and after the first day of the
10       first payroll period chargeable to the fiscal year ending June 30, 2002,
11       each of the state agencies in Group II shall implement and administer a
12       performance-based system of compensation for the state officers and em-
13       ployees of such agencies in accordance with the provisions of this act.
14             New Sec.  4. (a) On and after the first day of the first payroll period
15       chargeable to the fiscal year ending June 30, 2001, the state classified
16       civil service pay matrix of ranges and steps approved under subsection
17       (d) of K.S.A. 75-2938 and amendments thereto shall not be applicable to
18       the state officers and employees of the state agencies in Group I and such
19       officers and employees shall be assigned to biweekly pay rates on one of
20       the four salary matrices developed and adopted in accordance with sec-
21       tion 5 and amendments thereto.
22             (b) On and after the first day of the first payroll period chargeable
23       to the fiscal year ending June 30, 2002, the state classified civil service
24       pay matrix of ranges and steps approved under subsection (d) of K.S.A.
25       75-2938 and amendments thereto shall not be applicable to the state
26       officers and employees of any state agency. On and after the first day of
27       the first payroll period chargeable to the fiscal year ending June 30, 2002,
28       all state officers and employees in the classified service under the Kansas
29       civil service act shall be assigned to biweekly pay rates on one of the four
30       salary matrices developed and adopted in accordance with section 5 and
31       amendments thereto.
32             (c) On and after the first day of the first payroll period chargeable
33       to the fiscal year ending June 30, 2002, the state classified civil service
34       pay matrix of ranges and steps adopted and approved under subsection
35       (d) of K.S.A. 75-2938 and amendments thereto is hereby abolished.
36             (d) No state officer or employee shall be paid at a biweekly pay rate
37       under one of the pay matrices developed and adopted under section 5
38       and amendments thereto that is less than the biweekly pay rate equivalent
39       of the total of (1) the biweekly pay rate such officer or employee was paid
40       under the pay plan matrix adopted and approved under subsection (d) of
41       K.S.A. 75-2938 and amendments thereto and (2) the amount of any lon-
42       gevity bonus payment under K.S.A. 75-5541 and amendments thereto
43       that the employee received during the preceding fiscal year.

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  1             (e) The state officers and employees of each state agency that is im-
  2       plementing the performance-based compensation system for such state
  3       agency in accordance with this act shall receive education and training
  4       regarding the performance-based compensation system which shall be
  5       provided by the department of administration.
  6             (f) The agency head of each state agency is responsible to ensure
  7       that all state officers and employees of the state agency continue to learn
  8       and earn during their service with the state agency. Each state officer or
  9       employee of a state agency that has implemented and is operating under
10       the performance-based compensation system under this act who has
11       reached the maximum pay deemed appropriate for such officer or em-
12       ployee's position shall be provided counseling and assistance in becoming
13       trained or retrained to qualify for another job or position in state service
14       which has a higher salary. Each such officer or employee may acknowl-
15       edge in writing the officer or employee's choice to not assume additional
16       or new responsibilities in another job or position and may voluntarily elect
17       to remain in the current position at the maximum pay deemed appropri-
18       ate for such officer or employee's position. Such voluntary election may
19       be changed at any time by the officer or employee and shall be reviewed
20       with the officer or employee as part of each subsequent performance
21       evaluation.
22             New Sec.  5. (a) In accordance with this section, the secretary of
23       administration shall develop and adopt a separate pay matrix for each of
24       the following positions of state officers and employees in the classified
25       service under the Kansas civil service act:
26             (1) Public safety positions, which shall include, but not be limited
27       to, positions in state agencies which are assigned jobs which have pri-
28       marily public safety powers, duties and functions and which involve more
29       than minimal risk of personal injury, including, but not limited to, the
30       jobs of law enforcement officers, as defined by K.S.A. 74-5602 and
31       amendments thereto, adult and juvenile correctional officers of state adult
32       or juvenile correctional institutions, and other jobs that have law enforce-
33       ment authority;
34             (2) direct-contact public service positions, which shall include, but
35       not be limited to, the positions at state institutions and other state agen-
36       cies performing social, rehabilitation, health, environmental and other
37       services, including the construction or maintenance of highways and other
38       public improvements, that have regular and direct contact with members
39       of the public and that are not determined to be public safety positions,
40       professional or technical positions or system support provider positions;
41             (3) professional or technical positions, which shall include, but not
42       be limited to, the positions in state agencies which are assigned jobs re-
43       quiring professional or highly technical education or training, including

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  1       those requiring professional or occupational licensure, registration or cer-
  2       tification, and shall include, but not be limited to, highly trained labora-
  3       tory technicians, engineers, architects and attorneys; and
  4             (4) system support provider positions, which shall include, but not
  5       be limited to, those positions in state agencies that provide support serv-
  6       ices and regularly have minimal direct contact with members of the public
  7       and that are not determined to be public safety positions, direct-contact
  8       public service positions or professional or technical positions.
  9             (b) In consultation with the agency heads of the affected state agen-
10       cies, the secretary of administration shall place all public safety positions
11       in the classified service under the Kansas civil service act in a continuum
12       of necessary job skills and experience requirements to serve and protect
13       the people of Kansas. At least once each two years thereafter, the sec-
14       retary of administration shall compare the job responsibilities, risks and
15       compensation and benefits of state officers and employees in public safety
16       positions with the job responsibilities, risks and compensation and benefit
17       packages of selected public safety or other agencies or organizations out-
18       side of Kansas state government having public safety personnel and shall
19       report the results of such comparisons to the agency heads of the affected
20       state agencies.
21             (c) In consultation with the agency heads of the affected state agen-
22       cies, the secretary of administration shall place all direct contact public
23       service positions in the classified service under the Kansas civil service
24       act in a continuum of necessary job skills and experience requirements
25       to serve the people of Kansas. At least once each three years thereafter,
26       the secretary of administration shall compare the job responsibilities, risks
27       and compensation and benefits of state officers and employees in direct-
28       contact public service positions with the job responsibilities, risks and
29       compensation and benefit packages of selected agencies or organizations
30       outside of Kansas state government that have direct-contact service per-
31       sonnel and shall report the results of such comparisons to the agency
32       heads of the affected state agencies.
33             (d) In consultation with the agency heads of the affected state agen-
34       cies, the secretary of administration shall place all professional or tech-
35       nical positions in the classified service under the Kansas civil service act
36       in a continuum of necessary job skills and experience requirements to
37       serve and protect the people of Kansas. At least once each three years
38       thereafter, the secretary of administration shall compare the job respon-
39       sibilities, risks and compensation and benefits of state officers and em-
40       ployees in professional or technical positions with the job responsibilities,
41       risks and compensation and benefit packages of selected professional or
42       technical or other agencies or organizations outside of Kansas state gov-
43       ernment that have professional or technical personnel and shall report

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  1       the results of such comparisons to the agency heads of the affected state
  2       agencies.
  3             (e) In consultation with the agency heads of the affected state agen-
  4       cies, the secretary of administration shall place all system support provider
  5       positions in the classified service under the Kansas civil service act in a
  6       continuum of necessary job skills and experience requirements to serve
  7       and protect the people of Kansas. At least once each four years thereafter,
  8       the secretary of administration shall compare the job responsibilities, risks
  9       and compensation and benefits of state officers and employees in system
10       support provider positions with the job responsibilities, risks and com-
11       pensation and benefit packages of selected agencies or organizations out-
12       side of Kansas state government that have system support provider per-
13       sonnel and shall report the results of such comparisons to the agency
14       heads of the affected state agencies.
15             (f) For each of the pay matrices developed and adopted under this
16       section, the secretary of administration shall use a broad-band technique
17       to group and assign positions, jobs and job categories to the pay matrices
18       by analyzing the level of knowledge necessary to successfully perform the
19       work, the requisite degree of independent decision-making ability re-
20       quired to successfully perform the work, the supervisory responsibilities,
21       degree of risk of personal injury in performing the work, degree of service
22       in performing the work thereby fulfilling the duties and responsibilities
23       of the state agency and the concomitant service to the people of Kansas
24       in successfully performing the work. The pay matrices shall include only
25       such number of pay grades as may be required to provide for flexible and
26       efficient administration of the pay matrix and shall not include pay steps.
27       Each pay matrix developed and adopted under this section shall be sub-
28       ject to approval by the governor.
29             New Sec.  6. (a) Under the performance-based compensation system
30       prescribed by this act, compensation for a particular job is to be primarily
31       based on the officer or employee's value to the employing state agency
32       in the performance of the powers, duties and functions of the state agency
33       on behalf of the people of Kansas and shall be secondarily based on mar-
34       ket factors that are related to the affected state officers and employees,
35       including but not limited to, wages for substantially the same work per-
36       formed for private or nonstate public employers in a geographic area,
37       recruiting factors, relationships between similar jobs in the same state
38       agency and jobs in other state agencies.
39             (b) Each pay matrix developed and adopted under section 5 and
40       amendments thereto shall be based primarily on the value of the state
41       officers and employees to the state agency and the people of Kansas and
42       secondarily on appropriate and analogous market rates for the jobs and
43       jobs classes assigned thereto with the lowest and highest pay rates within

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  1       the pay matrix having an appropriate relationship to the market rates for
  2       the same or substantially similar jobs and job classes for organization and
  3       other agencies that are not within Kansas state government, with appro-
  4       priate provisions for regional differentials or other flexibility factors.
  5             (c) All such pay matrices, the assignment of positions, jobs and job
  6       categories to the pay matrices, and any modifications or changes in such
  7       pay matrices or such assignments for the classified service under the Kan-
  8       sas civil service act shall be subject to approval by the governor.
  9             (d) Each agency head shall fix the salary of the officers and employ-
10       ees of the state agency in the classified service under the Kansas civil
11       service act within such pay matrices in accordance with such assignments
12       and applicable statutes and rules and regulations. The agency head shall
13       prepare and adopt a compensation plan for the state agency which takes
14       into account each officer or employee's abilities, experience, education
15       or training and contributions to the state agency, the success of its mission
16       and the people of Kansas. In addition, each agency head may provide for
17       a regional pay differential which may provide for increases in the salary
18       for specific positions in the classified service of not to exceed 15% for
19       each such position in order to recruit and retain qualified employees for
20       such positions.
21             New Sec.  7. The supreme court shall establish by rule a perform-
22       ance-based compensation system for the nonjudicial personnel in the
23       state court system and for judicial personnel whose compensation is not
24       otherwise prescribed by law. The performance-based compensation sys-
25       tem shall take effect for the first payroll period chargeable to the fiscal
26       year ending June 30, 2001, and shall prescribe the compensation for all
27       such personnel. The performance-based compensation system for such
28       personnel shall include provisions that incorporate, emulate with appro-
29       priate modifications or otherwise are similar to or take into account the
30       principles and components of the performance-based compensation sys-
31       tem otherwise prescribed by this act for state agencies in the executive
32       and legislative branches of state government, including but not limited
33       to, appropriate pay matrices for positions, jobs and job classes for such
34       personnel, the utilization of a broad-banded technique to assign positions,
35       jobs and job classes to such pay matrices, periodic review and revision of
36       such pay matrices and the utilization of an appropriate performance eval-
37       uation component, a performance management component and an edu-
38       cation and training component. Except as prescribed by the provisions of
39       this section, the provisions of sections 2 and 3 and amendments thereto
40       and the other provisions of this act requiring the development and im-
41       plementation of a performance-based compensation system, including
42       education and training, for state agencies in the judicial branch of state
43       government, this act shall not be construed to require that the state agen-

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  1       cies in the judicial branch of state government have the same perform-
  2       ance-based compensation system as prescribed for state agencies in the
  3       executive and legislative branches of state government.
  4             New Sec.  8. (a) In cooperation with the business college faculties of
  5       state educational institutions and Washburn university, the secretary of
  6       administration shall develop and institute scheduled training for all state
  7       officers and employees relating to the performance-based compensation
  8       system and related policies including training in performance manage-
  9       ment, supervision, goal setting and evaluating performance and such
10       other matters as may be determined by the secretary of administration.
11       Prior to July 1, 2000, each agency head for a state agency included in
12       Group I, as defined in section 2 and amendments thereto, shall provide
13       training and educational programs for supervisors, managers and all other
14       officers and employees of the state agency regarding the development
15       and administration of meaningful performance-based compensation sys-
16       tems. Prior to July 1, 2001, each agency head for a state agency included
17       in Group II, as defined in section 2 and amendments thereto, shall pro-
18       vide training and educational programs for supervisors, managers and all
19       other officers and employees of the state agency regarding the develop-
20       ment and administration of meaningful performance-based compensation
21       systems.
22             (b) The secretary of administration shall ensure that in-service ed-
23       ucation and training opportunities on the performance-based compen-
24       sation system and related personnel policies are provided on a regular
25       basis for all state officers and employees in each state agency under the
26       performance-based compensation system.
27             New Sec.  9. There is hereby established within the department of
28       administration the office of the director of training. The director of train-
29       ing shall be in the unclassified service under the Kansas civil service act
30       and shall be appointed and serve at the pleasure of the secretary of ad-
31       ministration. The director of training shall plan, develop and coordinate
32       training and education programs and activities related to the perform-
33       ance-based compensation system and shall perform such other duties and
34       functions as may be prescribed by the secretary of administration.
35             New Sec.  10. (a) The administration of the performance-based com-
36       pensation system shall include the regular evaluation of the performance
37       of officers and employees in accordance with the evaluation system de-
38       veloped under this section. The secretary of administration shall adopt
39       policies and may adopt rules and regulations establishing and imple-
40       menting a performance-based evaluation system for state agencies under
41       the performance-based compensation system prescribed by this act.
42             (b) The performance-based evaluation system shall be based on the
43       officer or employee's performance of the duties and functions assigned

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  1       by the employing state agency and shall provide for evaluation of officers
  2       and employees in categories of exceptional, satisfactory and unsatisfac-
  3       tory. Agency heads shall implement and administer such evaluation sys-
  4       tem within the state agencies. Each agency head shall include peer group
  5       evaluations within the supervisor evaluation system of employee goal set-
  6       ting and performance reviews when determining performance-based pay
  7       increases. Agency heads shall monitor the evaluation system developed
  8       under this section to ensure that (1) differences between supervisors and
  9       other managers, with respect to an analysis of employee evaluations con-
10       ducted within the state agency, are within a statistically normal distribu-
11       tion and (2) employees of the state agency are not unduly denied or given
12       exceptional or unsatisfactory evaluations.
13             (c)  (1) A randomly-selected group of officers and employees from
14       each state agency which has implemented the performance-based com-
15       pensation system shall be selected to evaluate the performance of the
16       agency head of the state agency. For state agencies in the executive
17       branch of state government, the secretary of administration shall ran-
18       domly select the members of each such group, except that one or more
19       members of the governor's staff designated by the governor shall ran-
20       domly select the group to evaluate the secretary of administration. For
21       state agencies in the judicial branch of state government, the judicial
22       administrator shall randomly select the members of each such group. For
23       state agencies in the legislative branch of state government, the legislative
24       coordinating council shall randomly select the members of each such
25       group.
26             (2) The evaluation by each such group shall not be a public record
27       and, except as provided in this section, such evaluation shall be confiden-
28       tial and shall not be disclosed pursuant to the provisions of the open
29       record act or under any other law. The evaluation by each such group
30       formed for a state agency in the executive branch of state government
31       shall be submitted to the governor. The evaluation by each such group
32       formed for a state agency in the judicial branch of state government shall
33       be submitted to the chief justice of the supreme court. The evaluation
34       by each such group formed for a state agency in the legislative branch of
35       state government shall be submitted to the legislative coordinating coun-
36       cil.
37             (3) The provisions of this subsection (c) shall not apply to any agency
38       head who is an elected state official or to any agency head which is a body
39       of individuals which is composed of persons who are elected to mem-
40       bership thereon.
41             New Sec.  11. All state officers and employees who are under the
42       performance-based compensation system and who are evaluated as un-
43       satisfactory under both peer group evaluations and supervisor evaluations

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  1       shall be given counseling as to how their performance may be improved
  2       to a satisfactory level. In addition to the provisions of K.S.A. 75-2949e
  3       and 75-2949f and amendments thereto, if any such officer or employee
  4       receives two consecutive, unsatisfactory evaluations under both peer
  5       group evaluations and supervisor evaluations within 180 days, then the
  6       officer or employee's appointing authority may terminate the officer or
  7       employee.
  8             New Sec.  12. The legislature shall provide in appropriation acts for
  9       limits on the number of full-time and regular part-time positions equated
10       to full-time, excluding seasonal and temporary positions, paid from ap-
11       propriations for each fiscal year for each state agency. The legislature
12       shall provide by statute for administration of the performance-based com-
13       pensation system by agency heads. The implementation and administra-
14       tion of the performance-based compensation system shall be adminis-
15       tered by agency heads and the compensation levels of state officers and
16       employees, other than those rates of compensation fixed by statute, are
17       hereby deemed to be administrative decisions and are to be made within
18       the parameters of the pay matrices adopted under section 5 and amend-
19       ments thereto or as otherwise authorized by law for persons in the un-
20       classified service under the Kansas civil service act, and within the limi-
21       tations of appropriations for the state agency.
22             New Sec.  13. Each fiscal year commencing after June 30, 2001, the
23       secretary of administration shall prepare and distribute to each state of-
24       ficer or employee an annual one-page summary of such officer or em-
25       ployee's compensation package from the state, including salary, benefits
26       under the state health care benefits program of the Kansas state employ-
27       ees health care commission, the cafeteria plan administered by the sec-
28       retary of administration, retirement, insured and other benefits under the
29       Kansas public employees retirement system, paid leave and other benefits
30       provided for under the Kansas civil service act and any other benefits
31       provided to such officer or employee.
32             New Sec.  14. (a) On and after July 1, 2000, for the purposes of
33       financing the costs associated with development, implementation and ad-
34       ministration of the performance-based compensation system prescribed
35       by this act, each state agency in Group I, as defined by section 2, and
36       amendments thereto, is hereby authorized to fix, charge and collect a
37       performance-based compensation surcharge for each fee that is author-
38       ized by law to be charged and collected by the state agency and that
39       finances in whole or in part the operating expenses of one or more of the
40       state officers or employees of the state agency who are under the per-
41       formance-based compensation system prescribed by this act. All such sur-
42       charges to an existing fee shall be fixed, charged, collected and deposited
43       in the state treasury by the state agency in the same manner and subject

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  1       to the same requirements as the existing fee. If the existing fee is required
  2       to be deposited in the state treasury in whole or in part to the credit of
  3       a special revenue fund of the state agency, then the moneys received for
  4       the surcharge shall be deposited in the state treasury to the credit of the
  5       same special revenue fund. If the existing fee is required to be deposited
  6       in the state treasury to the credit of the state general fund, then the
  7       moneys received for the surcharge shall be deposited to the credit of a
  8       special revenue fund of the state agency which is hereby created in the
  9       state treasury, which shall be administered by the state agency and which
10       shall be known as the performance-based compensation surcharge fee
11       fund for the state agency. All expenditures from the performance-based
12       compensation surcharge fee fund created under this section for a state
13       agency shall be for the purpose of paying the costs associated with de-
14       velopment, implementation and administration of the performance-based
15       compensation system prescribed by this act and shall be in accordance
16       with appropriation acts pursuant to vouchers approved by the agency
17       head or by a person or persons designated by the agency head for that
18       purpose.
19             (b) On and after July 1, 2001, for the purposes of financing the costs
20       associated with development, implementation and administration of the
21       performance-based compensation system prescribed by this act, each
22       state agency in Group II, as defined by section 2, and amendments
23       thereto, is hereby authorized to fix, charge and collect a performance-
24       based compensation surcharge for each fee that is authorized by law to
25       be charged and collected by the state agency and that finances in whole
26       or in part the operating expenses of one or more of the state officers or
27       employees of the state agency who are under the performance-based
28       compensation system prescribed by this act. All such surcharges to an
29       existing fee shall be fixed, charged, collected and deposited in the state
30       treasury by the state agency in the same manner and subject to the same
31       requirements as the existing fee. If the existing fee is required to be
32       deposited in the state treasury in whole or in part to the credit of a special
33       revenue fund of the state agency, then the moneys received for the sur-
34       charge shall be deposited in the state treasury to the credit of the same
35       special revenue fund. If the existing fee is required to be deposited in the
36       state treasury to the credit of the state general fund, then the moneys
37       received for the surcharge shall be deposited to the credit of a special
38       revenue fund of the state agency which is hereby created in the state
39       treasury, which shall be administered by the state agency and which shall
40       be known as the performance-based compensation surcharge fee fund for
41       the state agency. All expenditures from the performance-based compen-
42       sation surcharge fee fund created under this section for a state agency
43       shall be for the purpose of paying the costs associated with development,

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  1       implementation and administration of the performance-based compen-
  2       sation system prescribed by this act and shall be in accordance with ap-
  3       propriation acts pursuant to vouchers approved by the agency head or by
  4       a person or persons designated by the agency head for that purpose.
  5             (c) As used in this section "fee" includes any tax, assessment or other
  6       charge that is authorized by statute and that is fixed as to rate or amount
  7       by the state agency charging or collecting such tax, assessment or other
  8       charge.
  9             New Sec.  15. (a) There is hereby established the state employee
10       compensation system oversight committee which shall consist of nine
11       members as follows:
12             (1) Three members shall be appointed by the speaker of the house
13       of representatives from among the members of the house of represen-
14       tative who are members of the majority party;
15             (2) two members shall be appointed by the minority leader of the
16       house of representatives from among the members of the house of rep-
17       resentative who are members of the minority party;
18             (3) two members shall be appointed by the president of the senate
19       from among the members of the senate who are members of the majority
20       party; and
21             (4) two members shall be appointed by the minority leader of the
22       senate from among the members of the senate who are members of the
23       minority party.
24             (b) The state employee compensation system oversight committee
25       shall organize annually by electing a chairperson and a vice-chairperson
26       from the members of the oversight committee. During odd-numbered
27       years, the chairperson shall be a member of the house of representatives
28       and the vice-chairperson shall be a member of the senate. During even-
29       numbered years, the chairperson shall be a member of the senate and
30       the vice-chairperson shall be a member of the house of representatives.
31       The vice-chairperson shall exercise all of the powers of the chairperson
32       in the absence of the chairperson. If a vacancy occurs in the office of
33       chairperson or vice-chairperson, a member of the oversight committee,
34       who is a member of the same house as the member who vacated the
35       office, shall be elected by the members of the oversight committee to fill
36       such vacancy.
37             (c) Each member of the state employee compensation system over-
38       sight committee shall serve at the pleasure of the officer who appointed
39       the member. A quorum of the state employee compensation system over-
40       sight committee shall be five. All actions of the state employee compen-
41       sation system oversight committee shall be taken by a majority of all of
42       the members of the oversight committee.
43             (d) The state employee compensation system oversight committee

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  1       may meet at any time and at any place within the state on the call of the
  2       chairperson. Members of the oversight committee shall receive compen-
  3       sation and travel expenses and subsistence expenses or allowances as pro-
  4       vided in K.S.A. 75-3212 and amendments thereto when attending meet-
  5       ings of such committee.
  6             (e) In accordance with K.S.A. 46-1204 and amendments thereto, the
  7       legislative coordinating council may provide for such professional services
  8       as may be requested by the state employee compensation system over-
  9       sight committee.
10             (f) The state employee compensation system oversight committee
11       may introduce such legislation as it deems necessary in performing its
12       functions.
13             (g) In addition to other duties authorized or prescribed by law or by
14       the legislative coordinating council, the state employee compensation sys-
15       tem oversight committee shall monitor the development, implementation
16       and administration of the performance-based compensation system and
17       the other provisions of this act. The oversight committee shall receive
18       recommendations and information from and shall advise and consult with
19       the secretary of administration, the agency heads and other officers and
20       employees of state agencies on the implementation and administration of
21       the performance-based compensation system.
22             (h) The state employee compensation system oversight committee
23       shall make an annual report to the legislative coordinating council as pro-
24       vided in K.S.A. 46-1207 and amendments thereto and such special reports
25       to committees of the house of representatives and senate as are deemed
26       appropriate by the oversight committee.
27             (i) The provisions of this section shall expire on January 1, 2003.
28             Sec.  16. K.S.A. 1998 Supp. 75-2935 is hereby amended to read as
29       follows: 75-2935. The civil service of the state of Kansas is hereby divided
30       into the unclassified and the classified services.
31             (1) The unclassified service comprises positions held by state officers
32       or employees who are:
33             (a) Chosen by election or appointment to fill an elective office;
34             (b) members of boards and commissions, heads of departments re-
35       quired by law to be appointed by the governor or by other elective offi-
36       cers, and the executive or administrative heads of offices, departments,
37       divisions and institutions specifically established by law;
38             (c) except as otherwise provided under this section, one personal
39       secretary to each elective officer of this state, and in addition thereto, 10
40       deputies, clerks or employees designated by such elective officer;
41             (d) all employees in the office of the governor;
42             (e) officers and employees of the senate and house of representatives
43       of the legislature and of the legislative coordinating council and all officers

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  1       and employees of the office of revisor of statutes, of the legislative re-
  2       search department, of the division of legislative administrative services,
  3       of the division of post audit and the legislative counsel;
  4             (f) chancellor, president, deans, administrative officers, student
  5       health service physicians, pharmacists, teaching and research personnel,
  6       health care employees and student employees in the institutions under
  7       the state board of regents, the executive officer of the board of regents
  8       and the executive officer's employees other than clerical employees, and,
  9       at the discretion of the state board of regents, directors or administrative
10       officers of departments and divisions of the institution and county exten-
11       sion agents, except that this subsection (1)(f) shall not be construed to
12       include the custodial, clerical or maintenance employees, or any employ-
13       ees performing duties in connection with the business operations of any
14       such institution, except administrative officers and directors; as used in
15       this subsection (1)(f), "health care employees" means employees of the
16       university of Kansas medical center who provide health care services at
17       the university of Kansas medical center and who are medical technicians
18       or technologists or respiratory therapists, who are licensed professional
19       nurses or licensed practical nurses, or who are in job classes which are
20       designated for this purpose by the chancellor of the university of Kansas
21       upon a finding by the chancellor that such designation is required for the
22       university of Kansas medical center to recruit or retain personnel for
23       positions in the designated job classes; and employees of any institution
24       under the state board of regents who are medical technologists;
25             (g) operations, maintenance and security personnel employed to im-
26       plement agreements entered into by the adjutant general and the federal
27       national guard bureau, and officers and enlisted persons in the national
28       guard and the naval militia;
29             (h) persons engaged in public work for the state but employed by
30       contractors when the performance of such contract is authorized by the
31       legislature or other competent authority;
32             (i) persons temporarily employed or designated by the legislature or
33       by a legislative committee or commission or other competent authority
34       to make or conduct a special inquiry, investigation, examination or
35       installation;
36             (j) officers and employees in the office of the attorney general and
37       special counsel to state departments appointed by the attorney general,
38       except that officers and employees of the division of the Kansas bureau
39       of investigation shall be in the classified or unclassified service as provided
40       in K.S.A. 75-711, and amendments thereto;
41             (k) all employees of courts;
42             (l) client, patient and inmate help in any state facility or institution;
43             (m) all attorneys for boards, commissions and departments;

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  1             (n) the secretary and assistant secretary of the Kansas state historical
  2       society;
  3             (o) physician specialists, dentists, dental hygienists, pharmacists,
  4       medical technologists and long term care workers employed by the de-
  5       partment of social and rehabilitation services;
  6             (p) physician specialists, dentists and medical technologists em-
  7       ployed by any board, commission or department or by any institution
  8       under the jurisdiction thereof;
  9             (q) student employees enrolled in public institutions of higher
10       learning;
11             (r) administrative officers, directors and teaching personnel of the
12       state board of education and the state department of education and of
13       any institution under the supervision and control of the state board of
14       education, except that this subsection (1)(r) shall not be construed to
15       include the custodial, clerical or maintenance employees, or any employ-
16       ees performing duties in connection with the business operations of any
17       such institution, except administrative officers and directors;
18             (s) all officers and employees in the office of the secretary of state;
19             (t) one personal secretary and one special assistant to the following:
20       The secretary of administration, the secretary of aging, the secretary of
21       agriculture, the secretary of commerce and housing, the secretary of cor-
22       rections, the secretary of health and environment, the superintendent of
23       the Kansas highway patrol, the secretary of human resources, the secre-
24       tary of revenue, the secretary of social and rehabilitation services, the
25       secretary of transportation, the secretary of wildlife and parks and the
26       commissioner of juvenile justice;
27             (u) one personal secretary and one special assistant to the chancellor
28       and presidents of institutions under the state board of regents;
29             (v) one personal secretary and one special assistant to the executive
30       vice chancellor of the university of Kansas medical center;
31             (w) one public information officer and one chief attorney for the
32       following: The department of administration, the department on aging,
33       the department of agriculture, the department of commerce and housing,
34       the department of corrections, the department of health and environ-
35       ment, the department of human resources, the department of revenue,
36       the department of social and rehabilitation services, the department of
37       transportation, the Kansas department of wildlife and parks and the com-
38       missioner of juvenile justice;
39             (x) civil service examination monitors;
40             (y) one executive director, one general counsel and one director of
41       public affairs and consumer protection in the office of the state corpo-
42       ration commission;
43             (z) specifically designated by law as being in the unclassified service;

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  1       and
  2             (aa) all officers and employees of Kansas, Inc. and the Kansas tech-
  3       nology enterprise corporation; and
  4             (bb) any position that is classified as a position in the information
  5       resource manager job class series, that is the chief position responsible for
  6       all information resources management for a state agency, and that be-
  7       comes vacant on or after the effective date of this act. Nothing in this
  8       section shall affect the classified status of any employee in the classified
  9       service who is employed on the date immediately preceding the effective
10       date of this act in any position that is a classified position in the infor-
11       mation resource manager job class series and the unclassified status as
12       prescribed by this subsection shall apply only to a person appointed to
13       any such position on or after the effective date of this act that is the chief
14       position responsible for all information resources management for a state
15       agency.
16             (2) The classified service comprises all positions now existing or here-
17       after created which are not included in the unclassified service. Appoint-
18       ments in the classified service shall be made according to merit and fitness
19       from eligible pools which so far as practicable shall be competitive. No
20       person shall be appointed, promoted, reduced or discharged as an officer,
21       clerk, employee or laborer in the classified service in any manner or by
22       any means other than those prescribed in the Kansas civil service act and
23       the rules adopted in accordance therewith.
24             (3) For positions involving unskilled, or semiskilled duties, the sec-
25       retary of administration, as provided by law, shall establish rules and reg-
26       ulations concerning certifications, appointments, layoffs and reemploy-
27       ment which may be different from the rules and regulations established
28       concerning these processes for other positions in the classified service.
29             (4) Officers authorized by law to make appointments to positions in
30       the unclassified service, and appointing officers of departments or insti-
31       tutions whose employees are exempt from the provisions of the Kansas
32       civil service act because of the constitutional status of such departments
33       or institutions shall be permitted to make appointments from appropriate
34       pools of eligibles maintained by the division of personnel services.
35             (5) On and after the first day of the first payroll period chargeable
36       to the fiscal year ending June 30, 2001, the agency head of a state agency
37       that is one of the state agencies in Group I, as defined in section 2 and
38       amendments thereto, and on and after the first day of the first payroll
39       period chargeable to the fiscal year ending June 30, 2003, the agency head
40       of any state agency may convert the position of any officer or employee
41       of such state agency that is in the classified service under the Kansas civil
42       service act to a position in the unclassified service under the Kansas civil
43       service act in accordance with procedures prescribed by the secretary of

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  1       administration. Each person who is a state officer or employee of any
  2       state agency and who is assigned to a position in the state agency that is
  3       converted from a position in the classified service to a position in the
  4       unclassified service under this subsection shall remain in the classified
  5       service under the Kansas civil service act in such position unless such
  6       person agrees to being placed in unclassified service status in such
  7       position.
  8             Sec.  17. K.S.A. 75-2938 is hereby amended to read as follows: 75-
  9       2938. (a) Except as otherwise provided in the Kansas civil service act or
10       by the provisions of this act, the director of personnel services, after
11       consultation with the heads of state agencies or persons designated by
12       them, shall assign each position in the classified service to a class accord-
13       ing to the duties and responsibilities thereof. Titles shall be specified by
14       the director of personnel services for each such class for use in certifying
15       the names of persons for appointment under this act. A description of
16       the duties and responsibilities with suitable qualifications required for
17       satisfactory performance in each class shall be specified by the director
18       of personnel services. The classes and titles so specified and described
19       shall be used for: (1) Original appointments; (2) promotions; (3) payrolls;
20       and (4) all other records affecting the status of persons in the classified
21       service. Each class when approved or modified and approved as modified
22       by the governor shall take effect on a date or dates specified by the gov-
23       ernor. After consultation with the director of the budget and the heads
24       of state agencies or persons designated by them, the director shall rec-
25       ommend changes in classes from time to time, and such changes, when
26       approved or modified and approved as modified by the governor, shall
27       take effect on a date or dates specified by the governor.
28             (b) Subject to the provisions of this act, the director of personnel
29       services shall recommend to the governor the assignment, and from time
30       to time the reassignment, of each class to a specified range approved or
31       modified and approved as modified by the governor, the same shall be-
32       come effective on a date or dates specified by the governor. In adopting
33       or revising any plans, the governor shall give consideration to pertinent
34       rates in other public and private employment in the appropriate labor
35       markets, and for this purpose the director of personnel services shall have
36       made periodic wage and salary surveys with one survey to be conducted
37       each year. The results of such survey and recommendations for revisions
38       in the pay plan are to be forwarded to the governor, the secretary of
39       administration, the director of the budget and the legislature. The rec-
40       ommendations shall give consideration and weight to survey results, to
41       changes in the cost-of-living and to proper internal alignment of the var-
42       ious job classes. The director of personnel services may use the results of
43       other appropriate surveys conducted by public or private agencies in lieu

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  1       of or in addition to surveys authorized to be conducted under this
  2       subsection.
  3             (c) The secretary of administration may delegate the authority to
  4       assign positions in the classified service to a class according to the duties
  5       and responsibilities thereof to the appointing authority. Such delegation
  6       shall specify the particular classes, ranges, and schedules authorized. Ap-
  7       pointing authorities delegated such assigning authority shall make
  8       monthly reports of assigning transactions to the director of personnel
  9       services. Any delegation of such authority is subject to review by the
10       secretary of administration who may modify any delegation made in order
11       to ensure consistency with the state classification plan and may withdraw
12       the delegated authority from the appointing authority upon evidence of
13       improper use of such authority by the appointing authority. The decision
14       of the secretary of administration in regard to the withdrawal of such
15       delegated authority shall be final.
16             (d) After consultation with the director of the budget and the sec-
17       retary of administration, the director of personnel services shall prepare
18       a pay plan which shall contain a schedule of salary and wage ranges and
19       steps, and from time to time changes therein. When such pay plan or any
20       change therein is approved or modified and approved as modified by the
21       governor, the same shall become effective on a date or dates specified by
22       the governor and any such modification, change of date shall be in ac-
23       cordance with any enactments of the legislature applicable thereto. The
24       pay plan adopted under this section is subject to the provisions of section
25       4 and amendments thereto.
26             (e) The classes and pay plan for the classified service as approved by
27       the governor under this section shall be used by the director of the budget
28       in preparation of the budget for the fiscal year ending June 30, 2001, for
29       state agencies in Group II, as defined by section 2 and amendments
30       thereto. The performance-based compensation system prescribed by this
31       act shall be used by the director of the budget in preparation of the budget
32       for the fiscal year ending June 30, 2001, for state agencies in Group I, as
33       defined by section 2 and amendments thereto and shall be used in prep-
34       aration of the budget for all state agencies in preparation of the budget
35       for the fiscal year ending June 30, 2002, and for each fiscal year thereafter.
36             (f) Whenever any appropriation or other act specifies any pay plan
37       or any change, limitation or condition upon the pay plan, personnel or
38       policies of the state or any state agency, such appropriation act or other
39       act shall control the provisions of this section to the extent of their ap-
40       plication thereto.
41             Sec.  18. K.S.A. 75-5541 is hereby amended to read as follows: 75-
42       5541. (a) During the period commencing on July 1, 1989, and ending on
43       June 30, 2001, each classified employee, excluding any such employee

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  1       who is on temporary appointment, and each nonjudicial employee in the
  2       unclassified service under the Kansas civil service act in a state agency in
  3       the judicial branch of state government, shall receive a bonus as provided
  4       by this section, which shall be referred to as a longevity bonus, under the
  5       terms and conditions and subject to the limitations prescribed by this
  6       section.
  7             (b) After June 30 During the period commencing on July 1, 1989,
  8       and ending on June 30, 2001, any such officer or employee who has been
  9       employed by any agency, board or department within any branch of state
10       government, whether or not the entire period of service is continuous
11       with the same agency, board or department, shall be eligible to receive a
12       longevity bonus upon completion of 120 months of state service. Length
13       of service and service anniversary dates shall be determined pursuant to
14       rules and regulations adopted by the secretary of administration.
15             (c) The amount of each longevity bonus payment shall be computed
16       by multiplying $40 by the number of full years of state service, not to
17       exceed 25 years, rendered by such officer or employee as of the service
18       anniversary date within such fiscal year.
19             (d) Each longevity bonus payment shall be included in the em-
20       ployee's regular pay warrant. The amount of the bonus shall be displayed
21       separately on the warrant stub or advice.
22             (e) Longevity bonus payments shall be compensation, within the
23       meaning of K.S.A. 74-4901 et seq., and amendments thereto, for all pur-
24       poses under the Kansas public employees retirement system and shall be
25       subject to applicable deductions for employee contributions notwith-
26       standing the fact that payments are made annually. Longevity bonus pay-
27       ments shall be in addition to the regular earnings to which an officer or
28       employee may become entitled or for which such employee may become
29       eligible.
30             (f) The purpose of longevity pay is to recognize permanent employ-
31       ees who have provided experience and faithful long-term service to the
32       state of Kansas in order to encourage officers and employees to remain
33       in the service of the state. The provisions of this section shall apply to
34       fiscal years commencing after June 30, 1989. The amendatory language
35       of this section shall be construed to confirm that longevity pay is intended,
36       and has been intended since its enactment, to be a bonus as defined in
37       29 C.F.R. §  778.208.
38             (g) In accordance with the provisions of K.S.A. 75-3706, and amend-
39       ments thereto, the secretary of administration shall adopt rules and reg-
40       ulations to implement the provisions of this section with respect to officers
41       and employees in the executive branch of state government. The supreme
42       court may adopt policies to implement the provisions of this section with
43       respect to officers and employees who are nonjudicial personnel of state

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  1       agencies in the judicial branch of state government.
  2             (h) On and after July 1, 2000, no state officer or employee of a state
  3       agency that is one of the state agencies in Group I, as defined by section
  4       2 and amendments thereto, shall be eligible to receive a longevity bonus
  5       payment under this section, but each such officer or employee shall be
  6       paid at a biweekly pay rate under a pay matrix developed and adopted
  7       under section 5 and amendments thereto and implemented in accordance
  8       with the provisions of this act. On and after July 1, 2001, no state officer
  9       or employee of any state agency shall be eligible to receive a longevity
10       bonus payment under this section, but each such officer or employee shall
11       be paid at a biweekly pay rate under a pay matrix developed and adopted
12       under section 5 and amendments thereto and implemented in accordance
13       with the provisions of this act.
14             Sec.  19. K.S.A. 75-5549 is hereby amended to read as follows: 75-
15       5549. (a) The secretary of administration, upon recommendation of the
16       director of personnel services, is hereby authorized to shall adopt rules
17       and regulations as provided by K.S.A. 75-3706, and amendments thereto,
18       establishing and maintaining a program for the sharing of leave between
19       employees of the state of Kansas. The program shall be known as the state
20       employee shared leave program and shall be the shared leave program
21       established by such rules and regulations prior to the effective date of this
22       act, as modified by this act or in accordance with the provisions of this
23       act by rules and regulations adopted by the secretary of administration.
24             (b) Employees authorized to share leave pursuant to such rules and
25       regulations shall be authorized to donate annual vacation and sick leave
26       to for use by other state employees, either specifically by name or gen-
27       erally, who are suffering from, or who have a family member suffering
28       from, an extraordinary or severe illness, injury, impairment or physical or
29       mental condition which has caused, or is likely to cause, the employee to
30       take leave without pay or terminate employment. As used in this section
31       "extraordinary or severe" means serious, extreme or life threatening. Such
32       rules and regulations may prescribe conditions for eligibility for an em-
33       ployee to receive and use shared leave under the state employee shared
34       leave program that require the receiving employee to first use (1) all sick
35       leave credits that are available for use, (2) any compensatory time credits
36       that the employee may have, and (3) a portion of the employee's vacation
37       leave credits, except that the receiving employee shall not be required to
38       use any vacation leave below the level of 144 hours of vacation leave
39       credits, or the equivalent thereof.
40             (c) Each request by an employee for shared leave under the state
41       employee shared leave program shall be acted upon by the employee's
42       appointing authority as soon as practicable and, in any case, such request
43       shall be acted upon within the period of 10 workdays after the day the

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  1       request was submitted to the appointing authority. The request for shared
  2       leave by any employee who has requested shared leave and who has not
  3       actually received written notice of a denial of all or part of such request
  4       within such period of 10 workdays shall be deemed to have been approved
  5       for all purposes under the state employee shared leave program and such
  6       employee may use the shared leave as requested in accordance with the
  7       state employee shared leave program.
  8             (d) In addition to other relevant information, an appointing author-
  9       ity or other decision-making authority under the state employee shared
10       leave program considering a request for shared leave may consider a
11       requesting employee's history of sick leave use and the reasons therefor.
12       The appointing authority or other decision-making authority under the
13       state employee shared leave program may approve or deny all or part of
14       a request for shared leave and shall act on a request only after receiving
15       information from the requesting employee and from the state agency.
16             (e) The secretary of administration shall adopt and amend rules and
17       regulations in accordance with K.S.A. 75-3707 and amendments thereto
18       for the implementation and administration of the state employee shared
19       leave program in accordance with this section.
20             Sec.  20. K.S.A. 75-6512 is hereby amended to read as follows: 75-
21       6512. (a) Subject to the provisions of appropriations appropriation acts,
22       the secretary of administration is hereby authorized to establish and ad-
23       minister a cafeteria plan pursuant to the provisions of section 125 of the
24       federal internal revenue code of 1986 which shall be available to persons
25       who are officers or employees of the state and who are qualified to par-
26       ticipate in the state health care benefits program and which shall include,
27       but not be limited to, provisions under which such officers and employees
28       may agree to receive reduced compensation and (1) have the state's con-
29       tribution under K.S.A. 75-6508 and amendments thereto cover costs of
30       dependent benefit coverage or other benefits under the state health care
31       benefits program which would otherwise be payable by such officers and
32       employees, and (2) receive benefits under the state employee dependent
33       care assistance program under K.S.A. 75-6520.
34             (b) Any reduction in compensation for any person pursuant to any
35       such cafeteria plan shall not reduce the compensation of such person for
36       purposes of the employment security law, workers compensation act or
37       the purposes of determining contributions and benefits under the Kansas
38       public employees retirement system or any retirement system adminis-
39       tered by the board of trustees of the Kansas public employees retirement
40       system.
41             (c) Implementation of any such cafeteria plan and any additions or
42       deletions thereto shall be subject to approval of the secretary of admin-
43       istration to assure adequate data processing resources therefor within the

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  1       division of information systems and communications of the department
  2       of administration.
  3             (d) On or before July 1, 2001, the secretary of administration shall
  4       modify the cafeteria plan so that persons who are state officers and em-
  5       ployees and who are qualified to participate in the state health care ben-
  6       efits program are provided with a cafeteria benefit amount with which
  7       such persons may select all or part of one or more cafeteria plan benefit
  8       options which shall include, but are not limited to, benefits under the state
  9       health care benefits program, the state employee dependent care assis-
10       tance program, long-term care insurance, prepaid legal services, in-home
11       care services, additional paid leave and an additional amount of salary in
12       lieu of other cafeteria plan benefits of not to exceed 50% of the cafeteria
13       benefit amount. The secretary of administration may include a require-
14       ment under the cafeteria plan that such persons have a minimum amount
15       of health care insurance or other health care coverage in the form of
16       benefits under the state health care benefits program as the covered in-
17       dividual or as a spouse or family member or otherwise or in the form of
18       health care benefits that are otherwise insured or provided to such persons
19       and certified to the secretary in the manner required by the secretary of
20       administration. 
21       Sec.  21. K.S.A. 75-2938, 75-5541, 75-5549, 75-6512 and 75-6801
22       and K.S.A. 1998 Supp. 75-2935 and 75-2935f are hereby repealed.
23         Sec.  22. This act shall take effect and be in force from and after its
24       publication in the statute book.