[As Amended by House Committee of the Whole]
         
Session of 1999
         
Substitute for House Bill No. 2522
         
By Kansas 2000 Select Committee
         
3-25
         

10             AN  ACT [establishing a task force on state employee compensa-
11             tion; prescribing certain duties and responsibilities therefor.]
12             concerning state officers and employees; relating to a state compen-
13             sation system with performance-based compensation provisions and
14             related personnel policies; amending K.S.A. 75-2938, 75-2943, 75-
15             5519, 75-5541, 75-5549 and 75-6512 and K.S.A. 1998 Supp. 75-6801
16             and repealing the existing sections.
17      
18       Be it enacted by the Legislature of the State of Kansas:
19        [Section  1. (a) There is hereby established the task force on
20       state employee compensation to study the current state employee
21       compensation and classification system and identify strengths and
22       weaknesses of such system and make recommendations for im-
23       provements of such system. The task force shall consist of 11 mem-
24       bers as follows:
25             [(1) Two members shall be appointed by and serve at the plea-
26       sure of the speaker of the house of representatives from among
27       the members of the house of representatives who are members of
28       the majority party;
29             [(2) one member shall be appointed by and serve at the plea-
30       sure of the minority leader of the house of representatives from
31       among the members of the house of representatives who are mem-
32       bers of the minority party;
33             [(3) two members shall be appointed by and serve at the plea-
34       sure of the president of the senate from among the members of
35       the senate who are members of the majority party;
36             [(4) one member shall be appointed by and serve at the plea-
37       sure of the minority leader of the senate from among the members
38       of the senate who are members of the minority party;
39             [(5) three members shall be appointed by and serve at the plea-
40       sure of the governor;
41             [(6) the director of the budget, or the director's designee, shall
42       serve as a member; and
43             [(7) the secretary of administration, or the secretary's desig-

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  1       nee, shall serve as a member.
  2             [(b) Of the members appointed by the governor, one shall be
  3       representative of private employers, one member shall be repre-
  4       sentative of public employees and one member shall be represen-
  5       tative of the public at large. The appointment of the employer
  6       representative member of the task force shall be made by the gov-
  7       ernor from a list of three nominations submitted by the Kansas
  8       chamber of commerce and industry. The appointment of the em-
  9       ployee representative member of the task force shall be made by
10       the governor from a list of three nominations submitted by the
11       Kansas A.F.L.-C.I.O. No member appointed by the governor shall
12       be an elected or other public official or, except for the member
13       representative of public employees, an officer or employee of any
14       governmental entity.
15             [(c) The task force on state employee compensation shall or-
16       ganize by electing a chairperson and a vice-chairperson from the
17       members of the task force. The vice-chairperson shall exercise all
18       of the powers of the chairperson in the absence of the chairperson.
19       If a vacancy occurs in the office of chairperson or vice-chairperson,
20       a member of the task force, who is a member of the same house
21       as the member who vacated the office, shall be elected by the
22       members of the task force to fill such vacancy.
23             [(d) A quorum of the task force on state employee compensa-
24       tion shall be six. All actions of the task force shall be taken by a
25       majority of all of the members of the task force.
26             [(e) The task force state employee compensation may meet at
27       any time and at any place within the state on the call of the chair-
28       person. The task force shall have a minimum of six meetings to
29       conduct its study. Members of the task force, other than the sec-
30       retary of administration and the director of the budget or their
31       designees, shall receive compensation and travel expenses and
32       subsistence expenses or allowances as provided in K.S.A. 75-3212
33       and amendments thereto when attending meetings of such com-
34       mittee.
35             [(f) In accordance with K.S.A. 46-1204 and amendments
36       thereto, the legislative coordinating council may provide for such
37       professional services as may be requested by the task force on state
38       employee compensation.
39             [(g) The task force on state employee compensation may intro-
40       duce such legislation as it deems necessary in performing its func-
41       tions.
42             [(h) The task force on state employee compensation shall make
43       a report which contains the recommendations of the task force on

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  1       or before January 10, 2000, to the Kansas legislature and the Kan-
  2       sas select 2000 committee of the house of representatives of the
  3       state of Kansas.
  4             [(i) The staff of the legislative research department, the office
  5       of the revisor of statutes and the division of legislative administra-
  6       tive services shall provide such assistance as maybe requested by
  7       the task force on state employee compensation and to the extent
  8       authorized by the legislative coordinating council.]
  9             New Section  1. (a) The state of Kansas values its employees as in-
10       dividuals and as the resource to provide efficient, effective and creative
11       public services to the people of Kansas. It is the goal of employees of the
12       state government to be responsive to the people of Kansas, while sup-
13       porting their employing agency's commitment to fiscally responsible and
14       equitable operations.
15             (b) It is the purpose of this act and the intent of the legislature that:
16             (1) The state government compensation system shall facilitate equity
17       across all state agencies and job classifications shall reflect meaningful
18       differences in the levels of skill necessary to perform agency tasks and it
19       shall provide an easily understood, broad-based job classification system
20       that defines the general scope and complexity of the work required;
21             (2) the performance appraisal component of the state compensation
22       system shall facilitate two-way communications between supervisors and
23       employees regarding expected [measurable and quantifiable] levels of
24       performance on behalf of the employing agency and, ultimately, the peo-
25       ple of Kansas;
26             (3) the performance management component of the state compen-
27       sation system shall be used to set [measurable and quantifiable] em-
28       ployee objectives, communicate objectives, review employee achieve-
29       ments and support the employee in delivering excellent service and
30       products to the employing agency and the people of Kansas;
31             (4) the compensation, benefits and performance standards of the
32       state compensation system shall assist employees to achieve personal job
33       satisfaction and earn a livelihood and shall encourage employment loyalty
34       and high quality service to Kansas;
35             (5) the total employee compensation package of the state compen-
36       sation system shall reflect the economic conditions of the various occu-
37       pational labor markets, while rewarding employees who perform at above
38       standard levels; and
39             (6) the classification, evaluation and compensation systems and prac-
40       tices of Kansas state government shall be administered in an efficient,
41       cost-effective, responsive, fair and equitable manner to meet the needs
42       of employing agencies, employees and the people of Kansas.
43             New Sec.  2. As used in this act,

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  1             (a) "State agency" has the meaning ascribed thereto under K.S.A. 75-
  2       3701 and amendments thereto.
  3             (b) "Agency head" means an individual or body of individuals in
  4       whom the ultimate legal authority of the state agency is vested by any
  5       provision of law.
  6             New Sec.  3. (a) The secretary of administration shall adopt policies
  7       and may adopt rules and regulations for the purposes of implementing
  8       and administering a [measurable and quantifiable] performance-based
  9       system of compensation for the state officers and employees of state agen-
10       cies in the executive branch of state government in accordance with this
11       act. The system shall include a performance appraisal component, a per-
12       formance management component and an education and training com-
13       ponent. The system shall be applicable to state agencies in accordance
14       with the provisions of this act.
15             (b) On and after the first day of the first payroll period chargeable to
16       the fiscal year ending June 30, 2001, the secretary of administration shall
17       implement and administer a performance-based system of compensation
18       for the state officers and employees of the department of administration
19       in accordance with the provisions of this act.
20             (c) For fiscal years commencing on or after July 1, 2002, the agency
21       head of a state agency in the executive branch of state government that
22       has not implemented the performance-based compensation system under
23       this act may apply to the secretary of administration for approval to im-
24       plement the performance-based compensation system for the state offi-
25       cers and employees of such state agency in accordance with this act. Each
26       agency head applying to the secretary of administration for approval un-
27       der this subsection shall submit evidence demonstrating that the officers
28       and employees of the state agency are interested in having the perform-
29       ance-based compensation system implemented for such state agency and
30       such other information as may be required by the secretary of adminis-
31       tration regarding such implementation. The secretary of administration
32       may approve implementation of the performance-based compensation
33       system for the officers and employees of a state agency under this sub-
34       section only if the secretary of administration has first advised and con-
35       sulted with the state employee compensation system oversight committee
36       about the implementation of the performance-based compensation sys-
37       tem for the officers and employees of such state agency and has made a
38       specific presentation to the oversight committee regarding each state
39       agency proposed for approval under this subsection. The implementation
40       of the performance-based compensation system for the officers and em-
41       ployees of any state agency shall commence on the first day of the first
42       payroll period chargeable to a fiscal year. Except as provided in section
43       7 and amendments thereto for the judicial branch, no state agency except

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  1       the department of administration shall implement the performance-based
  2       compensation system for any fiscal year prior to the fiscal year ending
  3       June 30, 2003.
  4             New Sec.  4. (a) On and after the first day of the first payroll period
  5       chargeable to the fiscal year ending June 30, 2001, the state classified
  6       civil service longevity-based pay matrix of ranges and steps approved un-
  7       der K.S.A. 75-2938 and amendments thereto shall not be applicable to
  8       the state officers and employees of the the department of administration
  9       and such officers and employees shall be assigned to base pay rates on
10       one of the performance-based pay matrices developed and adopted in
11       accordance with section 5 and amendments thereto, except that, in those
12       limited circumstances of job classes for which a performance-based com-
13       pensation system is determined by the secretary of administration to be
14       inappropriate, the secretary of administration may specify the longevity-
15       based pay matrix and plan.
16             (b) On and after the first day of the first payroll period chargeable to
17       the fiscal year ending June 30, 2002, except as otherwise provided in this
18       section, the state classified civil service longevity-based pay matrix of
19       ranges and steps approved under K.S.A. 75-2938 and amendments
20       thereto shall not be applicable to the state officers and employees of any
21       state agency that is under the performance-based compensation system.
22       On and after the first day of the first payroll period chargeable to the
23       fiscal year ending June 30, 2001, all state officers and employees in the
24       classified service under the Kansas civil service act of each state agency
25       under the performance-based compensation system shall be assigned to
26       base pay rates on one of the performance-based pay matrices developed
27       and adopted in accordance with section 5 and amendments thereto, ex-
28       cept that, in those limited circumstances of job classes for which a per-
29       formance-based compensation system is determined by the secretary of
30       administration to be inappropriate, the secretary of administration may
31       specify the longevity-based pay matrix and plan.
32             (c) On and after the first day of the first payroll period chargeable to
33       the fiscal year ending June 30, 2001, with respect to the officers and
34       employees of a state agency under the performance-based compensation
35       system, the state classified civil service longevity-based pay matrix of
36       ranges and steps adopted and approved under K.S.A. 75-2938 and
37       amendments thereto shall be applicable only to those job classes for which
38       a performance-based compensation system is determined by the secretary
39       of administration to be inappropriate and for which the secretary of ad-
40       ministration has specified the longevity-based pay matrix and plan.
41             (d) No state officer or employee shall have a base pay rate under one
42       of the performance-based pay matrices developed and adopted under
43       section 5 and amendments thereto that is less than the base pay rate

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  1       equivalent of the total of (1) the base pay rate such officer or employee
  2       was paid under the longevity-based pay plan matrix adopted and approved
  3       under K.S.A. 75-2938 and amendments thereto and (2) the base pay rate
  4       equivalent of the amount of any longevity bonus payment under K.S.A.
  5       75-5541 and amendments thereto that the employee received during the
  6       preceding fiscal year. The resulting base pay for such officer or employee
  7       shall continue to be subject to the provisions of the personnel rules and
  8       regulations and statutes pertaining to voluntary or disciplinary reductions
  9       under the Kansas civil service act and related personnel statutes.
10             (e) The state officers and employees of each state agency that is im-
11       plementing the performance-based compensation system for such state
12       agency in accordance with this act shall receive education and training
13       regarding the performance-based compensation system which shall be
14       provided by the department of administration.
15             (f) The agency head of each state agency is responsible to ensure that
16       all state officers and employees of the state agency continue to learn and
17       earn during their service with the state agency. Each state officer or em-
18       ployee of a state agency that has implemented and is operating under the
19       performance-based compensation system under this act who has reached
20       the maximum pay deemed appropriate for such officer or employee's
21       position shall be provided counseling and assistance in becoming trained
22       or retrained to qualify for another job class in state service which has a
23       higher salary. Each such officer or employee may acknowledge in writing
24       the officer or employee's choice to not assume additional or new respon-
25       sibilities in another job class and may voluntarily elect to remain in the
26       current job class at the maximum pay deemed appropriate for such officer
27       or employee's job class. Such voluntary election may be changed at any
28       time by the officer or employee and shall be reviewed with the officer or
29       employee as part of each subsequent performance evaluation.
30             New Sec.  5. (a) In accordance with this section, the secretary of ad-
31       ministration shall develop and adopt four or more separate performance-
32       based pay matrices for state officers and employees in the classified serv-
33       ice under the Kansas civil service act. The performance-based pay
34       matrices shall be developed by the secretary of administration in consul-
35       tation with the agency heads of the affected state agencies and the state
36       employee compensation system oversight committee. In those circum-
37       stances of job classes for which a performance-based pay matrix is inap-
38       propriate, the secretary of administration may use the longevity-based pay
39       matrix adopted and in effect under K.S.A. 75-2938 and amendments
40       thereto prior to July 1, 1999, subject to modification in accordance with
41       that statute.
42             (b) In consultation with the agency heads of the affected state agen-
43       cies, the secretary of administration shall assign each job class, according

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  1       to the duties and responsibilities thereof, to a performance-based pay
  2       matrix or, if the job class is inappropriate for a performance based pay
  3       matrix, to a longevity-based pay matrix. The secretary of administration
  4       shall conduct a market survey of 1/2 of the job classes, or the representative
  5       benchmarks of the job classes, in each matrix at least once every two
  6       years. In conducting such market survey, the secretary of administration
  7       shall compare the job responsibilities, risks and compensation of a suffi-
  8       cient number of benchmarks of the job class assigned to performance-
  9       based pay matrices with the job responsibilities, risks and compensation
10       of selected, comparable organizations outside of Kansas state government
11       having comparable personnel. The secretary of administration shall report
12       the results of such market surveys to the governor, the heads of the af-
13       fected state agencies and the state employee compensation system over-
14       sight committee.
15             (c) For each of the [performance-based] pay matrices developed
16       and adopted under this section, the secretary of administration shall use
17       a broad-band technique to group and assign job classes categories to the
18       pay matrices by analyzing the level of knowledge necessary to successfully
19       perform the work, the requisite degree of independent decision-making
20       ability required to successfully perform the work, the supervisory respon-
21       sibilities, degree of risk of personal injury in performing the work, degree
22       of service in performing the work thereby fulfilling the duties and re-
23       sponsibilities of the state agency and the concomitant service to the peo-
24       ple of Kansas in successfully performing the work. The pay matrices shall
25       include only such number of pay grades as may be required to provide
26       for flexible and efficient administration of the pay matrix and shall not
27       include pay steps. Each pay matrix developed and adopted under this
28       section shall be subject to approval by the governor.
29             (d) Each state agency under the performance-based compensation
30       plan shall prepare and submit budget estimates under K.S.A. 75-3717
31       and amendments thereto and the director of personnel services shall in-
32       clude recommendations in the annual compensation budget under K.S.A.
33       75-2938 and amendments thereto based on the amount of funds for sal-
34       aries for state officers and employees that would be sufficient to provide
35       for a percentage increase in each of the performance-based pay matrices
36       developed and adopted under this section for the ensuing fiscal year by
37       a percentage increase equal to or greater than the sum of: (1) The greater
38       of either (A) the annual rate of increase of the cost of living, as measured
39       by the increase in a consumer price index or other index prepared by an
40       agency of the federal government and selected by the secretary of ad-
41       ministration for this purpose, or (B) a percentage increase of 2.5%, and
42       (2) an additional 1% rate of increase which shall be for work group ex-
43       cellence and individual officer or employee exceptional performance.

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  1       Each agency head shall utilize the additional 1% for base salary increases
  2       for officers and employees in work groups for work group excellence and
  3       for base salary increases for individual officers or employees for excep-
  4       tional performance. Agency heads shall not be required to allocate that
  5       portion of the additional funding for salaries that is based on a cost of
  6       living increase determination on an equal percentage basis to all officers
  7       and employees of the state agency. In addition, each state agency utilizing
  8       the longevity-based pay matrix shall include funds in such budget estimate
  9       and the director of personnel services shall include in the annual com-
10       pensation budget recommendations to maintain the longevity-based pay
11       matrix for the ensuing fiscal year.
12             New Sec.  6. (a) Under the performance-based compensation system
13       prescribed by this act, compensation for a particular job is to be primarily
14       based on the officer or employee's value to the employing state agency
15       in the performance of the powers, duties and functions of the state agency
16       on behalf of the people of Kansas and shall be secondarily based on mar-
17       ket factors that are related to the affected state officers and employees,
18       including but not limited to, wages for substantially the same work per-
19       formed for private or nonstate public employers in a geographic area,
20       recruiting factors, relationships between similar jobs in the same state
21       agency and jobs in other state agencies.
22             (b) Each pay matrix developed and adopted under section 5 and
23       amendments thereto shall be based primarily on the value of the state
24       officers and employees to the state agency and the people of Kansas and
25       secondarily on appropriate and analogous market rates for the jobs and
26       jobs classes assigned thereto with the lowest and highest pay rates within
27       the pay matrix having an appropriate relationship to the market rates for
28       the same or substantially similar jobs and job classes for organizations and
29       other agencies that are not within Kansas state government, with appro-
30       priate provisions for regional differentials or other flexibility factors.
31             (c) All such pay matrices, the assignment of job classes to the pay
32       matrices, and any modifications or changes in such pay matrices or such
33       assignments to job classes under the Kansas civil service act shall be sub-
34       ject to approval by the governor.
35             (d) Each agency head shall fix the salary of the officers and employees
36       of the state agency in the classified service under the Kansas civil service
37       act within such pay matrices in accordance with such assignments and
38       applicable statutes and rules and regulations. The agency head shall pre-
39       pare and adopt a compensation plan for the state agency which takes into
40       account each officer or employee's abilities, experience, education or
41       training and contributions to the state agency, the success of its mission
42       and the people of Kansas. In addition, each agency head may provide for
43       a regional pay differential which may provide for increases in the salary

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  1       for specific positions in the classified service of not to exceed 15% for
  2       each such position in order to recruit and retain qualified employees for
  3       such positions. [Prior to the implementation of a compensation plan
  4       being adopted by an agency head, such agency head shall seek
  5       approval from the secretary of administration for the methods and
  6       rationale of placement of employees on a given pay matrix used
  7       by the agency head and for the need of a regional pay differential
  8       based on documentation provided by the agency head. The sec-
  9       retary of administration shall make any determinations required
10       pursuant to this subsection in consultation with the state employee
11       compensation system oversight committee.]
12             New Sec.  7. (a) The supreme court shall establish by rule a perform-
13       ance-based compensation system for the nonjudicial personnel of the
14       state court system. The performance-based compensation system shall
15       take effect for the nonjudicial personnel of the district courts in the third
16       judicial district and the seventh judicial district for the first payroll period
17       chargeable to the fiscal year ending June 30, 2001, and shall prescribe
18       the compensation for all such personnel. For fiscal years commencing on
19       or after July 1, 2001, the supreme court shall provide procedures for the
20       district judge who is designated as the administrative judge for each ju-
21       dicial district for which the performance-based compensation system has
22       not been implemented, to apply to the supreme court for approval to
23       implement the performance-based compensation system for the nonju-
24       dicial personnel of such judicial district. Each administrative district judge
25       applying to the supreme court for approval under this subsection shall
26       submit evidence demonstrating that the nonjudicial personnel of the ju-
27       dicial district are interested in having the performance-based compen-
28       sation system implemented for such judicial district and such other in-
29       formation as may be required by the supreme court regarding such
30       implementation. The supreme court may approve implementation of the
31       performance-based compensation system for the nonjudicial personnel of
32       the judicial district under this subsection only if the supreme court has
33       first advised and consulted with the state employee compensation system
34       oversight committee about the implementation of the performance-based
35       compensation system for the nonjudicial personnel of the judicial district.
36       The implementation of the performance-based compensation system for
37       the nonjudicial personnel of any judicial district shall commence on the
38       first day of the first payroll period chargeable to a fiscal year.
39             (b) The performance-based compensation system for such personnel
40       shall include provisions that incorporate, emulate with appropriate mod-
41       ifications or otherwise are similar to or take into account the principles
42       and components of the performance-based compensation system other-
43       wise prescribed by this act for state agencies in the executive and legis-

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  1       lative branches of state government, including but not limited to, appro-
  2       priate pay matrices for job classes for such personnel, the utilization of a
  3       broad-banded technique to assign job classes to such pay matrices, peri-
  4       odic review and revision of such pay matrices and the utilization of an
  5       appropriate [measurable and quantifiable] performance evaluation
  6       component, a performance management component and an education
  7       and training component.
  8             (c)  (1) Except as otherwise provided in this section, each nonjudicial
  9       employee of the district courts in the third judicial district or the seventh
10       judicial district, and each other nonjudicial employee of the state court
11       system who is under the performance-based compensation system estab-
12       lished for the nonjudicial personnel of the state court system, effective
13       on the first day of the first payroll period chargeable to the fiscal year for
14       which such performance-based compensation system becomes applicable
15       to the nonjudicial employee, shall have a base pay rate under such per-
16       formance-based compensation system that is not less than the base pay
17       rate equivalent of the total of (A) the base pay rate of such nonjudicial
18       employee on the last day of the last payroll period chargeable to the
19       preceding fiscal year and (B) the base pay rate equivalent of the amount
20       of any longevity bonus payment under K.S.A. 75-5541 and amendments
21       thereto that such nonjudicial employee received during the preceding
22       fiscal year. The resulting base pay for such nonjudicial employee shall
23       continue to be subject to the provisions of the personnel rules and reg-
24       ulations and statutes pertaining to the nonjudicial personnel of the state
25       court system.
26             (2) In those limited circumstances of job classes for which the per-
27       formance-based compensation system established for the nonjudicial per-
28       sonnel of the state court system is determined by the supreme court to
29       be inappropriate, the supreme court may specify a longevity-based pay
30       matrix and plan. In any such case of a nonjudicial employee who is a
31       nonjudicial employee of the district courts in a judicial district or other
32       unit within the state court system that is under the performance-based
33       compensation system established for the nonjudicial personnel of the
34       state court system and for whom the supreme court has specified a lon-
35       gevity-based pay matrix and plan, such nonjudicial employee shall have a
36       base pay rate under a longevity-based pay matrix and plan, effective on
37       the first day of the first payroll period chargeable to the fiscal year for
38       which such performance-based compensation system would otherwise
39       have become applicable to the nonjudicial employee, that is not less than
40       the base pay rate equivalent of the total of (A) the base pay rate of such
41       nonjudicial employee on the last day of the last payroll period chargeable
42       to the preceding fiscal year and (B) the base pay rate equivalent of the
43       amount of any longevity bonus payment under K.S.A. 75-5541 and

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11

  1       amendments thereto that such nonjudicial employee received during the
  2       preceding fiscal year. The resulting base pay for such nonjudicial em-
  3       ployee shall continue to be subject to the provisions of the personnel
  4       rules and regulations and statutes pertaining to the nonjudicial personnel
  5       of the state court system.
  6             (d) The performance-based compensation system for the nonjudicial
  7       personnel of the judicial branch shall provide for the administrative dis-
  8       trict judge of each judicial district under the performance-based com-
  9       pensation system to determine and assign the nonjudicial personnel of
10       each such judicial district to compensation levels within the broad-banded
11       matrices developed and adopted by the supreme court and within the
12       funds appropriated therefor. The supreme court shall provide a proce-
13       dure whereby the administrative district judge of each judicial district
14       within the judicial branch may obtain review by the supreme court of any
15       personnel or compensation-related decision made by the judicial admin-
16       istrator or other personnel of the office of judicial administration.
17             (e) Except as prescribed by the provisions of this section, the provi-
18       sions of sections 2 and 3 and amendments thereto and the other provi-
19       sions of this act requiring the development and implementation of a per-
20       formance-based compensation system, including education and training,
21       for state agencies in the judicial branch of state government, this act shall
22       not be construed to require that the state agencies in the judicial branch
23       of state government have the same performance-based compensation sys-
24       tem as prescribed for state agencies in the executive and legislative
25       branches of state government.
26             New Sec.  8. (a) In cooperation with agency heads and the business
27       college faculties of state educational institutions and Washburn university,
28       the secretary of administration shall develop and institute scheduled train-
29       ing for all state officers and employees relating to the performance-based
30       compensation system and related policies including training in perform-
31       ance management, supervision, goal setting, evaluating performance, de-
32       velopment of employee goal-setting and evaluation procedures and forms
33       and such other matters as may be determined by the secretary of admin-
34       istration. Each agency head for a state agency shall provide training and
35       educational programs for supervisors, managers and all other officers and
36       employees of the state agency regarding the development and adminis-
37       tration of meaningful performance-based compensation systems prior to
38       the first payroll period changeable to the fiscal year in which the per-
39       formance-based compensation system will be implemented for the state
40       agency. Supervisors, managers and all other officers and employees of
41       state agencies under the performance-based compensation system shall
42       be required by the agency heads to attend such training and educational
43       programs regarding the performance-based compensation system. All

Sub. HB 2522--Am. by HCW

12

  1       such supervisors and managers shall be required to satisfactorily complete
  2       such training and education programs.
  3             (b) In cooperation with affected agency heads and the business col-
  4       lege faculties of state educational institutions and Washburn university,
  5       the secretary of administration shall develop additional appropriate train-
  6       ing and education programs for supervisors, managers and other officers
  7       and employees of state agencies using the longevity-based pay matrix.
  8             (c) The secretary of administration shall ensure that appropriate and
  9       timely in-service education and training opportunities on the perform-
10       ance-based compensation system and related personnel policies, and on
11       the longevity-based pay matrix where appropriate, are provided on a reg-
12       ular basis for all state officers and employees in each state agency under
13       the performance-based compensation system. Appropriate schedules and
14       systems of education and training shall be developed by the secretary of
15       administration in cooperation with agency heads. The schedules and sys-
16       tems of education and training shall be adjusted as necessary to accom-
17       modate the needs and work requirements and priorities of the state
18       agencies.
19             New Sec.  9. There is hereby established within the division of per-
20       sonnel services of the department of administration the office of the di-
21       rector of training. The director of training shall be in the classified service
22       under the Kansas civil service act. The director of training shall plan,
23       develop and coordinate training and education programs and activities
24       related to the performance-based compensation system and shall perform
25       such other duties and functions as may be prescribed by the secretary of
26       administration.
27             New Sec.  10. (a) There is hereby created in the state treasury the
28       statewide employee development fund which shall be administered by
29       the secretary of administration.
30             (b) Commencing with the first payroll period chargeable to the fiscal
31       year ending June 30, 2001, and for each payroll period thereafter, the
32       secretary of administration may levy an assessment against state agency
33       payrolls for (1) in-service education and training, (2) statewide training
34       and employee development in performance management, supervision,
35       compensation, goal-setting, performance review and organization devel-
36       opment, and (3) retraining for career development.
37             (c) The assessment fixed by the secretary of administration under this
38       section shall be expressed as a percentage which shall not be greater than
39       0.1% and shall be the same for all state agencies. On or before July 15,
40       2000, and each July 15 thereafter, the director of the budget shall notify
41       each state agency of the rate of assessment imposed under this section
42       for the next fiscal year.
43             (d) The amount of the assessment imposed under this section each

Sub. HB 2522--Am. by HCW

13

  1       payroll period for each state agency shall be determined by multiplying
  2       the total gross wages for the payroll period of the state agency by the rate
  3       of the assessment fixed for the fiscal year by the secretary of administra-
  4       tion. The director of accounts and reports shall transfer the amount of
  5       each assessment for each state agency to the credit of the statewide em-
  6       ployee development fund.
  7             (e) As used in this section, "gross wages" means all compensation for
  8       services, including commissions, bonuses, back pay and the value of all
  9       remuneration including benefits paid in any medium other than cash.
10             New Sec.  11. (a) The administration of the performance-based com-
11       pensation system shall include the regular evaluation of the performance
12       of officers and employees in accordance with the evaluation system de-
13       veloped under this section. The secretary of administration shall adopt
14       policies and may adopt rules and regulations establishing and imple-
15       menting a [measurable and quantifiable] performance-based evalua-
16       tion system for state agencies under the performance-based compensa-
17       tion system prescribed by this act.
18             (b) The performance-based evaluation system shall be based on the
19       officer or employee's performance of the duties and functions assigned
20       by the employing state agency and shall provide for [measurable and
21       quantifiable] evaluation of officers and employees on a scale with at least
22       four levels of performance ranging from exceptional, the highest, to un-
23       satisfactory, the lowest, in accordance with rules and regulations adopted
24       by the secretary of administration. Agency heads shall implement and
25       administer such evaluation system within the state agencies. Each agency
26       head shall include peer group evaluations, where authorized and appro-
27       priate, within the supervisor evaluation system of employee goal setting
28       and performance reviews. Agency heads shall monitor the evaluation sys-
29       tem developed under this section to ensure that (1) differences between
30       supervisors and other managers, with respect to an analysis of employee
31       evaluations conducted within the state agency, are minimized and (2)
32       employees of the state agency are not unduly denied or given exceptional
33       or unsatisfactory evaluations. In addition to an evaluation of how well
34       supervisors and other managers are achieving their individual and work
35       group goals, supervisors and managers shall be evaluated as to their abil-
36       ities to supervise, including the ability to fairly evaluate supervised em-
37       ployees and to help supervised employees maximize their performance
38       and attain compensatory rewards therefor.
39             (c)  (1) A randomly-selected group of officers and employees from
40       each state agency which has implemented the performance-based com-
41       pensation system shall be selected to evaluate the performance of the
42       agency head of the state agency, except as provided in paragraph (3) of
43       this subsection (c), or, in the discretion of the agency head, to evaluate

Sub. HB 2522--Am. by HCW

14

  1       the performance of state officers or employees who are supervisors of
  2       large work groups or subdivisions of the state agency. For state agencies
  3       in the executive branch of state government, the secretary of administra-
  4       tion shall randomly select the members of each such group, except that
  5       one or more members of the governor's staff designated by the governor
  6       shall randomly select the group to evaluate the secretary of administra-
  7       tion. For state agencies in the judicial branch of state government, the
  8       judicial administrator shall randomly select the members of each such
  9       group. For state agencies in the legislative branch of state government,
10       the legislative coordinating council shall randomly select the members of
11       each such group.
12             (2) The evaluation by each such group shall not be a public record
13       and, except as provided in this section, such evaluation shall be confiden-
14       tial and shall not be disclosed pursuant to the provisions of the open
15       record act or under any other law. The evaluation by each such group
16       formed for a state agency in the executive branch of state government
17       shall be submitted to the governor. The evaluation by each such group
18       formed for a state agency in the judicial branch of state government shall
19       be submitted to the chief justice of the supreme court. The evaluation
20       by each such group formed for a state agency in the legislative branch of
21       state government shall be submitted to the legislative coordinating coun-
22       cil.
23             (3) The provisions of this subsection (c) requiring a group of officers
24       and employees to be selected and to evaluate the performance of an
25       agency head shall not apply to any agency head who is an elected state
26       official or to any agency head which is a body of individuals which is
27       composed of persons who are elected to membership thereon. As used
28       in this paragraph, "elected" includes the system of nonpartisan selection,
29       appointment and retention of justices and judges within the judicial
30       branch of state government.
31             (d) The secretary of administration shall monitor the activities of the
32       state agencies to implement and administer the performance-based com-
33       pensation system and shall review the actions of agency heads to increase
34       or decrease compensation of all positions of state officers and employees
35       in order to evaluate the fairness and comparability of such compensation
36       increases and decreases within and between state agencies, including as-
37       certaining the appropriateness of any concentrations of such compensa-
38       tion increases and decreases. The secretary of administration shall report
39       to the governor [and the state employee compensation system over-
40       sight committee] regarding such reviews of state agency activities and
41       shall take such other actions as may be warranted by the circumstances
42       to ensure the proper administration of the performance-based compen-
43       sation system.

Sub. HB 2522--Am. by HCW

15

  1             New Sec.  12. The legislature shall provide in appropriation acts for
  2       limits on the number of full-time and regular part-time positions equated
  3       to full-time, excluding seasonal and temporary positions, paid from ap-
  4       propriations for each fiscal year for each state agency. The legislature
  5       shall provide by statute for administration of the performance-based com-
  6       pensation system by agency heads. The implementation and administra-
  7       tion of the performance-based compensation system shall be adminis-
  8       tered by agency heads and the compensation levels of state officers and
  9       employees, other than those rates of compensation fixed by statute, are
10       hereby deemed to be administrative decisions and are to be made within
11       the parameters of the pay matrices adopted under section 5 and amend-
12       ments thereto or as otherwise authorized by law for persons in the un-
13       classified service under the Kansas civil service act, and within the limi-
14       tations of appropriations for the state agency.
15             New Sec.  13. Each fiscal year commencing after June 30, 2001, the
16       secretary of administration shall prepare and distribute to each state of-
17       ficer or employee an annual one-page summary of such officer or em-
18       ployee's compensation package from the state, including salary, benefits
19       under the state health care benefits program of the Kansas state employ-
20       ees health care commission, the cafeteria plan administered by the sec-
21       retary of administration, retirement, insured and other benefits under the
22       Kansas public employees retirement system, paid leave and other benefits
23       provided for under the Kansas civil service act and any other benefits
24       provided to such officer or employee.
25             New Sec.  14. (a) There is hereby established the state employee
26       compensation system oversight committee which shall consist of 11 mem-
27       bers as follows:
28             (1) Two members shall be appointed by and serve at the pleasure of
29       the speaker of the house of representatives from among the members of
30       the house of representatives who are members of the majority party;
31             (2) one member shall be appointed by and serve at the pleasure of
32       the minority leader of the house of representatives from among the mem-
33       bers of the house of representatives who are members of the minority
34       party;
35             (3) two members shall be appointed by and serve at the pleasure of
36       the president of the senate from among the members of the senate who
37       are members of the majority party;
38             (4) one member shall be appointed by and serve at the pleasure of
39       the minority leader of the senate from among the members of the senate
40       who are members of the minority party;
41             (5) three members shall be appointed by and serve at the pleasure
42       of the governor;
43             (6) the director of the budget, or the director's designee, shall serve

Sub. HB 2522--Am. by HCW

16

  1       as a member; and
  2             (7) the secretary of administration, or the secretary's designee, shall
  3       serve as a member.
  4             (b) Of the members appointed by the governor, one shall be repre-
  5       sentative of private employers, one member shall be representative of
  6       public employees and one member shall be representative of the public
  7       at large. [The appointment of the employee representative member
  8       of the committee shall be a current employee of a state agency that
  9       is under the performance-based compensation system and is in a
10       job class that is or will be designated to be on the performance-
11       based compensation system or a representative of an employee
12       organization pursuant to the provisions of K.S.A. 75-4321 et seq.
13       and amendments thereto.] No member appointed by the governor
14       shall be an elected or other public official or, except for the member
15       representative of public employees, an officer or employee of any gov-
16       ernmental entity.
17             (c) The state employee compensation system oversight committee
18       shall organize annually by electing a chairperson and a vice-chairperson
19       from the members of the oversight committee. During odd-numbered
20       years, the chairperson shall be a member of the house of representatives
21       and the vice-chairperson shall be a member of the senate. During even-
22       numbered years, the chairperson shall be a member of the senate and
23       the vice-chairperson shall be a member of the house of representatives.
24       The vice-chairperson shall exercise all of the powers of the chairperson
25       in the absence of the chairperson. If a vacancy occurs in the office of
26       chairperson or vice-chairperson, a member of the oversight committee,
27       who is a member of the same house as the member who vacated the
28       office, shall be elected by the members of the oversight committee to fill
29       such vacancy.
30             (d) A quorum of the state employee compensation system oversight
31       committee shall be six. All actions of the state employee compensation
32       system oversight committee shall be taken by a majority of all of the
33       members of the oversight committee.
34             (e) The state employee compensation system oversight committee
35       may meet at any time and at any place within the state on the call of the
36       chairperson. Members of the oversight committee, other than the sec-
37       retary of administration and the director of the budget or their designees,
38       shall receive compensation and travel expenses and subsistence expenses
39       or allowances as provided in K.S.A. 75-3212 and amendments thereto
40       when attending meetings of such committee.
41             (f) In accordance with K.S.A. 46-1204 and amendments thereto, the
42       legislative coordinating council may provide for such professional services
43       as may be requested by the state employee compensation system over-

Sub. HB 2522--Am. by HCW

17

  1       sight committee.
  2             (g) The state employee compensation system oversight committee
  3       may introduce such legislation as it deems necessary in performing its
  4       functions.
  5             (h) In addition to other duties authorized or prescribed by law or by
  6       the legislative coordinating council, the state employee compensation sys-
  7       tem oversight committee shall monitor the development, implementation
  8       and administration of the performance-based compensation system and
  9       the other provisions of this act. The oversight committee shall receive
10       recommendations and information from and shall advise and consult with
11       the secretary of administration, the agency heads and other officers and
12       employees of state agencies on the implementation and administration of
13       the performance-based compensation system.
14             (i) The state employee compensation system oversight committee
15       shall make an annual report to the legislative coordinating council as pro-
16       vided in K.S.A. 46-1207 and amendments thereto and such special reports
17       to committees of the house of representatives and senate as are deemed
18       appropriate by the oversight committee.
19             (j) The staff of the legislative research department, the office of the
20       revisor of statutes and the division of legislative administrative services
21       shall provide such assistance as may be requested by the state employee
22       compensation system oversight committee and to the extent authorized
23       by the legislative coordinating council.
24             New Sec.  15. If any provision of this act or the application thereof
25       to any person or circumstances is held invalid, such invalidity shall not
26       affect the provisions or applications of the act which can be given effect
27       without the invalid provision or application and to this end the provisions
28       of this act are declared to be severable.
29             Sec.  16. K.S.A. 75-2938 is hereby amended to read as follows: 75-
30       2938. (a) Except as otherwise provided in the Kansas civil service act or
31       by the provisions of this act, the director of personnel services, after
32       consultation with the heads of state agencies or persons designated by
33       them, shall assign each position in the classified service to a job class
34       according to the duties and responsibilities thereof. Titles shall be spec-
35       ified by the director of personnel services for each such job class for use
36       in certifying the names of persons for appointment under this act. A
37       description of the duties and responsibilities with suitable qualifications
38       required for satisfactory performance in each job class shall be specified
39       by the director of personnel services. The job classes and titles so specified
40       and described shall be used for: (1) Original appointments; (2) promo-
41       tions; (3) payrolls; and (4) all other records affecting the status of persons
42       in the classified service. Each job class when approved or modified and
43       approved as modified by the governor shall take effect on a date or dates

Sub. HB 2522--Am. by HCW

18

  1       specified by the governor. After consultation with the director of the
  2       budget and the heads of state agencies or persons designated by them,
  3       the director shall recommend changes in job classes from time to time,
  4       and such changes, when approved or modified and approved as modified
  5       by the governor, shall take effect on a date or dates specified by the
  6       governor.
  7             (b) Subject to the provisions of this act, the director of personnel
  8       services shall recommend to the governor the assignment, and from time
  9       to time the reassignment, of each job class to a specified range grade
10       approved or modified and approved as modified by the governor, the
11       same shall become effective on a date or dates specified by the governor.
12       In adopting or revising any plans schedule or schedules, the governor shall
13       give consideration to pertinent rates in other public and private employ-
14       ment in the appropriate labor markets, and for this purpose the director
15       of personnel services shall have made periodic conduct wage and salary
16       surveys with one survey to be conducted each year. The results of such
17       survey and recommendations for revisions in the pay plan are to be for-
18       warded to the governor, the secretary of administration, the director of
19       the budget and the legislature. annually. The director of personnel serv-
20       ices may use other appropriate surveys purchased or obtained by public
21       or private agencies in lieu of or in addition to surveys authorized by this
22       subsection. The results of such annual surveys and any recommendations
23       for revisions in the performance-based compensation system or the lon-
24       gevity-based pay plan based on such surveys shall be forwarded to the
25       governor, the secretary of administration, the director of the budget, the
26       state employee compensation system oversight committee and the legis-
27       lative research department.
28             (c) In addition, the director of personnel services may recommend to
29       the governor suggestions for monetary and nonmonetary incentives to
30       reward individual and team performance and pay premiums to recognize
31       skills, competencies, geographic market conditions or unique working con-
32       ditions. Incentives and pay premiums may or may not be additions to
33       base pay.
34             (d) The director of personnel services shall prepare and forward an
35       annual compensation budget, reflecting any enhancements to the com-
36       pensation system recommended by the director of personnel services, in-
37       cluding adjustments to all pay matrices, to the governor, the secretary of
38       administration, the director of the budget, the state employee compen-
39       sation system oversight committee and the legislative research depart-
40       ment. The recommendations shall give consideration and weight to mar-
41       ket survey results, to changes in the cost-of-living and, to proper internal
42       alignment of the various job classes. The director may use the results of
43       other appropriate surveys conducted by public or private agencies in lieu

Sub. HB 2522--Am. by HCW

19

  1       of or in addition to surveys authorized to be conducted under this sub-
  2       section, to recruitment and retention issues and to other relevant factors.
  3             (c) (e) The secretary of administration may delegate the authority to
  4       assign positions in the classified service to a job class according to the
  5       duties and responsibilities thereof to the appointing authority. Such del-
  6       egation shall specify the particular job classes, ranges, grades and sched-
  7       ules authorized. Appointing authorities delegated such assigning authority
  8       shall make monthly reports of assigning transactions to the director of
  9       personnel services. Any delegation of such authority is subject to review
10       by the secretary of administration who may modify any delegation made
11       in order to ensure consistency with the state classification plan and may
12       withdraw the delegated authority from the appointing authority upon ev-
13       idence of improper use of such authority by the appointing authority. The
14       decision of the secretary of administration in regard to the withdrawal of
15       such delegated authority shall be final.
16             (d) (f) After consultation with the director of the budget and the
17       secretary of administration, the director of personnel services shall pre-
18       pare a pay plan, and from time to time prepare amendments to, a com-
19       pensation system which shall contain a schedule of salary and wage ranges
20       and steps, and from time to time changes therein or schedules of salary
21       and wage grades. When such pay plan compensation system or any change
22       therein is approved or modified and approved as modified by the gov-
23       ernor, the same shall become effective on a date or dates specified by the
24       governor and any such modification, change of date shall be in accordance
25       with any enactments of the legislature applicable thereto. The longevity-
26       based pay plan adopted under this section is subject to the provisions of
27       section 4 and amendments thereto.
28             (e) (g) The job classes and longevity-based pay plan for the classified
29       service as approved by the governor under this section shall be used by
30       the director of the budget in preparation of the budget for the fiscal year
31       ending June 30, 2001, for state agencies, other than the department of
32       administration. The performance-based compensation system established
33       by this act shall be used by the director of the budget in preparation of
34       the budget for the fiscal year ending June 30, 2001, for the department of
35       administration and shall be used in preparation of the budget for the fiscal
36       year ending June 30, 2002, and for each fiscal year thereafter for the
37       department of administration and all other state agencies that are under
38       the performance-based compensation system. For the fiscal year ending
39       June 30, 2001, and each fiscal year thereafter, the longevity-based pay
40       plan under this section shall be used by the director of the budget in the
41       preparation of the budget for state agencies that have not implemented
42       the performance-based compensation system and in those limited circum-
43       stances within state agencies under the performance-based compensation

Sub. HB 2522--Am. by HCW

20

  1       system for job classes that the secretary of administration has determined
  2       that such system is inappropriate and has specified the longevity-based
  3       pay plan.
  4             (h)  (1) Effective on the first day of the first payroll period chargeable
  5       to the fiscal year ending June 30, 2001, each employee of the department
  6       of administration, who is in a job class for which a performance-based
  7       compensation system is determined by the secretary of administration to
  8       be inappropriate, shall have a base pay rate under the longevity-based
  9       pay plan that is not less than the base pay rate equivalent of the total of
10       (A) the base pay rate of such officer or employee under the longevity-
11       based pay plan under this section on the last day of the last payroll period
12       chargeable to the preceding fiscal year and (B) the base pay rate equiv-
13       alent of the amount of any longevity bonus payment under K.S.A. 75-5541
14       and amendments thereto that the officer or employee received during the
15       preceding fiscal year. The resulting base pay for such employee shall con-
16       tinue to be subject to the provisions of the personnel rules and regulations
17       and statutes pertaining to voluntary or disciplinary reductions under the
18       Kansas civil service act and related personnel statutes.
19             (2) Effective on the first day of the first payroll period chargeable to
20       the fiscal year for which a state agency, other than the department of
21       administration, commences implementing the performance-based com-
22       pensation system, each employee of such state agency, who is in a job
23       class for which a performance-based compensation system is determined
24       by the secretary of administration to be inappropriate, shall have a base
25       pay rate under the longevity-based pay plan that is not less than the base
26       pay rate equivalent of the total of (A) the base pay rate such officer or
27       employee was paid under the longevity-based pay plan under this section
28       on the last day of the last payroll period chargeable to the preceding fiscal
29       year and (B) the base pay rate equivalent of the amount of any longevity
30       bonus payment under K.S.A. 75-5541 and amendments thereto that the
31       employee received during the preceding fiscal year. The resulting base
32       pay for such employee shall continue to be subject to the provisions of the
33       personnel rules and regulations and statutes pertaining to voluntary or
34       disciplinary reductions under the Kansas civil service act and related per-
35       sonnel statutes.
36             (f) (i) 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.  17. K.S.A. 75-2943 is hereby amended to read as follows: 75-
42       2943. (a) Appointing authorities shall give notice to the director of per-
43       sonnel services of their intention to establish new positions and of the

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  1       existence of any vacancy to be filled in any office or employment in the
  2       classified service in the manner provided by the director.
  3             (b) The secretary of administration, upon recommendation of the di-
  4       rector of personnel services, shall establish procedures and standards for
  5       the certification of names of eligible persons for vacant positions.
  6             (c) The appointing authority shall appoint on probation, with sole
  7       reference to merit and fitness, one of the candidates whose name is cer-
  8       tified in the manner provided by subsection (b) to fill such vacancy. The
  9       provisions of this section shall not apply when the office or employment
10       is among those which are described in K.S.A. 75-2945 and amendments
11       thereto.
12             (d) After consultation with appointing authorities and other supervis-
13       ing officials, the director shall establish, and from time to time amend, a
14       system of performance ratings which shall provide for general categories
15       of performance levels and such other criteria as the director may pre-
16       scribe for each class of positions in the classified service or for groups of
17       classes. In accordance with K.S.A. 75-3706 and amendments thereto, the
18       secretary of administration shall adopt rules and regulations in respect to
19       such performance ratings, and such performance ratings shall be consid-
20       ered in determining the advisability of transfers, the promotion of an
21       employee to a higher class, questions of reduction or dismissal of any
22       employee, increases and decreases in salary of an employee within the
23       salary range placement in the pay grade or eligibility for other types of
24       compensation established under this act, and in all other decisions relating
25       to the status of employees. In accordance with K.S.A. 75-3706 and
26       amendments thereto, the secretary of administration shall adopt rules and
27       regulations prescribing the extent to which such ratings and the reports
28       upon which they are based shall be open to public inspection by the public
29       and by the affected employees.
30             (e) In accordance with K.S.A. 75-3706 and amendments thereto, the
31       secretary of administration shall adopt rules and regulations prescribing
32       corrective action for supervisors, managers and human resources person-
33       nel who do not comply with the system of performance ratings.
34             Sec.  18. K.S.A. 75-5519 is hereby amended to read as follows: 75-
35       5519. (a) Any Each state agency may shall pay the tuition and other ed-
36       ucational expenses for the education or training of any personnel of such
37       state agency when requested by such personnel and when it is determined
38       by the head of the state agency that such education or training is of value
39       to the state and such state agency.
40             (b) All payments under this section shall be made from appropriations
41       to the state agency in accordance with policies and procedures developed
42       by the secretary of administration to the state agency and shall be ap-
43       proved by the head of the state agency.

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  1             (c) As used in this section, "state agency" means any state depart-
  2       ment, office, board, commission, authority, council or officer and the
  3       personnel thereof.
  4             (d) In accordance with K.S.A. 75-3706 and amendments thereto and
  5       with the advice of the director of accounts and reports, the secretary of
  6       administration may adopt rules and regulations prescribing limitations
  7       and procedures relating to expenditures for tuition and other education
  8       or training expenses under this section.
  9             Sec.  19. K.S.A. 75-5541 is hereby amended to read as follows: 75-
10       5541. (a) Except as otherwise specifically provided by this section, each
11       classified employee, excluding any such employee who is on temporary
12       appointment, and each nonjudicial employee in the unclassified service
13       under the Kansas civil service act in a state agency in the judicial branch
14       of state government, shall receive a bonus as provided by this section,
15       which shall be referred to as a longevity bonus, under the terms and
16       conditions and subject to the limitations prescribed by this section.
17             (b) After June 30 1989, Except as otherwise specifically provided by
18       this section, any such officer or employee who has been employed by any
19       agency, board or department within any branch of state government,
20       whether or not the entire period of service is continuous with the same
21       agency, board or department, shall be eligible to receive a longevity bonus
22       upon completion of 120 months of state service. Length of service and
23       service anniversary dates shall be determined pursuant to rules and reg-
24       ulations adopted by the secretary of administration.
25             (c) The amount of each longevity bonus payment shall be computed
26       by multiplying $40 by the number of full years of state service, not to
27       exceed 25 years, rendered by such officer or employee as of the service
28       anniversary date within such fiscal year.
29             (d) Each longevity bonus payment shall be included in the employee's
30       regular pay warrant. The amount of the bonus shall be displayed sepa-
31       rately on the warrant stub or advice.
32             (e) Longevity bonus payments shall be compensation, within the
33       meaning of K.S.A. 74-4901 et seq., and amendments thereto, for all pur-
34       poses under the Kansas public employees retirement system and shall be
35       subject to applicable deductions for employee contributions notwith-
36       standing the fact that payments are made annually. Longevity bonus pay-
37       ments shall be in addition to the regular earnings to which an officer or
38       employee may become entitled or for which such employee may become
39       eligible.
40             (f) The purpose of longevity pay is to recognize permanent employees
41       who have provided experience and faithful long-term service to the state
42       of Kansas in order to encourage officers and employees to remain in the
43       service of the state. The provisions of this section shall apply to fiscal

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  1       years commencing after June 30, 1989. The amendatory language of this
  2       section shall be construed to confirm that longevity pay is intended, and
  3       has been intended since its enactment, to be a bonus as defined in 29
  4       C.F.R. §  778.208.
  5             (g) In accordance with the provisions of K.S.A. 75-3706, and amend-
  6       ments thereto, the secretary of administration shall adopt rules and reg-
  7       ulations to implement the provisions of this section with respect to officers
  8       and employees in the executive branch of state government. The supreme
  9       court may adopt policies to implement the provisions of this section with
10       respect to officers and employees who are nonjudicial personnel of state
11       agencies in the judicial branch of state government.
12             (h) On and after July 1, 2000, no state officer or employee of the
13       department of administration or any other state agency that is under the
14       performance-based compensation system established by this act shall be
15       eligible to receive a longevity bonus payment under this section, but each
16       such officer or employee shall be paid at a base pay rate under a pay
17       matrix developed and adopted under section 5 and amendments thereto
18       and implemented in accordance with the provisions of this act, except
19       that, (1) in any case of a state officer or employee of any such state agency
20       who is in a job class for which the performance-based compensation sys-
21       tem is determined by the secretary of administration to be inappropriate,
22       such officer or employee shall be paid at a base pay rate under the lon-
23       gevity-based pay plan under K.S.A. 75-2938 and amendments thereto,
24       and (2) in any case of any nonjudicial employee of the state court system
25       who is a nonjudicial employee of the district courts in a judicial district
26       or other unit within the state court system for which a performance-based
27       compensation system has been implemented under this act and who is in
28       a job class for which the performance-based compensation system estab-
29       lished for the nonjudicial personnel of the state court system is determined
30       by the supreme court to be inappropriate, such nonjudicial employee shall
31       be paid at a base pay rate under a longevity-based pay matrix and plan
32       specified by the supreme court under section 7 and amendments thereto.
33             Sec.  20. K.S.A. 75-5549 is hereby amended to read as follows: 75-
34       5549. (a) The secretary of administration, upon recommendation of the
35       director of personnel services, is hereby authorized to shall adopt rules
36       and regulations as provided by K.S.A. 75-3706, and amendments thereto,
37       establishing and maintaining a program for the sharing of leave between
38       employees of the state of Kansas. The program shall be known as the state
39       employee shared leave program and shall be the shared leave program
40       established by such rules and regulations prior to the effective date of this
41       act, as modified by this act or in accordance with the provisions of this
42       act by rules and regulations adopted by the secretary of administration.
43             (b) Employees authorized to share leave pursuant to such rules and

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24

  1       regulations shall be authorized to donate annual vacation and sick leave
  2       to for use by other state employees, either specifically by name or gen-
  3       erally, who are suffering from, or who have a family member suffering
  4       from, an extraordinary or severe illness, injury, impairment or physical or
  5       mental condition which has caused, or is likely to cause, the employee to
  6       take leave without pay or terminate employment. As used in this section
  7       "extraordinary or severe" means serious, extreme or life threatening. Such
  8       rules and regulations may prescribe conditions for eligibility for an em-
  9       ployee to receive and use shared leave under the state employee shared
10       leave program that require the receiving employee to first use (1) all sick
11       leave credits that are available for use, (2) any compensatory time credits
12       that the employee may have, and (3) any vacation leave credits that the
13       employee may have.
14             (c) Each request by an employee for shared leave under the state
15       employee shared leave program shall be acted upon by the employee's
16       appointing authority as soon as practicable and, in any case, such request
17       shall be acted upon within the period of 10 workdays after the day the
18       request was submitted to the appointing authority. The request for shared
19       leave by any employee who has requested shared leave and who has not
20       actually received written notice of a denial of all or part of such request
21       within such period of 10 workdays shall be deemed to have been approved
22       for all purposes under the state employee shared leave program and such
23       employee may use the shared leave as requested in accordance with the
24       state employee shared leave program.
25             (d) In addition to other relevant information, an appointing authority
26       or other decision-making authority under the state employee shared leave
27       program considering a request for shared leave may consider a requesting
28       employee's history of sick leave use and the reasons therefor. The appoint-
29       ing authority or other decision-making authority under the state employee
30       shared leave program may approve or deny all or part of a request for
31       shared leave and shall act on a request only after receiving information
32       from the requesting employee and from the state agency. [Nothing in
33       any decision made by the appointing authority or other decision-
34       making authority shall violate the employee's rights under any ap-
35       plicable federal law.]
36             (e) The secretary of administration shall adopt and amend rules and
37       regulations in accordance with K.S.A. 75-3707 and amendments thereto
38       for the implementation and administration of the state employee shared
39       leave program in accordance with this section.
40             Sec.  21. K.S.A. 75-6512 is hereby amended to read as follows: 75-
41       6512. (a) Subject to the provisions of appropriations appropriation acts,
42       the secretary of administration is hereby authorized to establish and ad-
43       minister a cafeteria plan pursuant to the provisions of section 125 of the

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25

  1       federal internal revenue code of 1986 which shall be available to persons
  2       who are officers or employees of the state and who are qualified to par-
  3       ticipate in the state health care benefits program and which shall include,
  4       but not be limited to, provisions under which such officers and employees
  5       may agree to receive reduced compensation and (1) have the state's con-
  6       tribution under K.S.A. 75-6508 and amendments thereto cover costs of
  7       dependent benefit coverage or other benefits under the state health care
  8       benefits program which would otherwise be payable by such officers and
  9       employees, and (2) receive benefits under the state employee dependent
10       care assistance program under K.S.A. 75-6520.
11             (b) Any reduction in compensation for any person pursuant to any
12       such cafeteria plan shall not reduce the compensation of such person for
13       purposes of the employment security law, workers compensation act or
14       the purposes of determining contributions and benefits under the Kansas
15       public employees retirement system or any retirement system adminis-
16       tered by the board of trustees of the Kansas public employees retirement
17       system.
18             (c) Implementation of any such cafeteria plan and any additions or
19       deletions thereto shall be subject to approval of the secretary of admin-
20       istration to assure adequate data processing resources therefor within the
21       division of information systems and communications of the department
22       of administration.
23             (d) On or before July 1, 2001, the secretary of administration shall
24       modify the cafeteria plan so that persons who are state officers and em-
25       ployees and who are qualified to participate in the state health care ben-
26       efits program are provided with a cafeteria benefit amount with which
27       such persons may select all or part of one or more cafeteria plan benefit
28       options which shall include, but are not limited to, benefits under the state
29       health care benefits program, the state employee dependent care assis-
30       tance program, long-term care insurance, prepaid legal services, in-home
31       care services, additional paid leave and an additional amount of salary in
32       lieu of other cafeteria plan benefits of not to exceed 25% of the cafeteria
33       benefit amount. The secretary of administration may include a require-
34       ment under the cafeteria plan that such persons have a minimum amount
35       of health care insurance or other health care coverage in the form of
36       benefits under the state health care benefits program as the covered in-
37       dividual or as a spouse or family member or otherwise or in the form of
38       health care benefits that are otherwise insured or provided to such persons
39       and certified to the secretary in the manner required by the secretary of
40       administration.
41             Sec.  22. K.S.A. 1998 Supp. 75-6801 is hereby amended to read as
42       follows: 75-6801. (a) As used in this section:
43             (1) "Executive secretary" means the executive secretary of the Kansas

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26

  1       public employees retirement system.
  2             (2) "F.T.E. positions" means the number of full time and regular part
  3       time positions equated to full time, excluding seasonal and temporary
  4       positions, paid from appropriations.
  5             (3) "Head of the governmental branch" means the governor, in the
  6       case of the executive branch; and the legislative coordinating council, in
  7       the case of the legislative branch.
  8             (4) "Retiree" means any person electing to retire pursuant to K.S.A.
  9       74-4914, and amendments thereto, except that "retiree" shall not include
10       any person who is retiring from (A) a position which provides direct care
11       for patients at Topeka state hospital, Osawatomie state hospital, Rainbow
12       mental health facility or Larned state hospital, Kansas neurological insti-
13       tute, Parsons state hospital and training center, Winfield state hospital
14       and training center, or university of Kansas medical center, (B) any po-
15       sition at Atchison juvenile correctional facility, Beloit juvenile correctional
16       facility, Larned juvenile correctional facility, Topeka juvenile correctional
17       facility, Kansas soldiers' home and or Kansas veterans' home, or (C) any
18       position at any state agency which has implemented the performance-
19       based compensation system in accordance with this act.
20             (b) The executive secretary shall provide the head of the govern-
21       mental branch notice of the name, employing state agency and retirement
22       date of each retiree retiring after the effective date of this act and such
23       other information that may be prescribed by the head of the govern-
24       mental branch.
25             (c)  (1) Upon receipt of each notice pursuant to subsection (b) re-
26       garding a retiree employed by a state agency in the executive branch, the
27       governor shall direct the secretary of administration to reduce by one the
28       number of F.T.E. positions authorized for the state agency that employed
29       the retiree and reduce the expenditure authority of such state agency in
30       an amount attributable to the amount of unused salary and employer-
31       paid benefits attributable to the retiree's job position.
32             (2) Upon receipt of each notice pursuant to subsection (c) regarding
33       a retiree employed by a state agency in the legislative branch, the legis-
34       lative coordinating council shall reduce by one the number of F.T.E.
35       positions for the state agency that employed the retiree and reduce the
36       expenditure authority of such state agency in an amount attributable to
37       the retiree's job position.
38             (d)  (1) For reductions made in the executive branch of government,
39       the governor is authorized to restore or allocate, to any state agency or
40       agencies within the executive branch, no more than 3/4 of the F.T.E.
41       positions and expenditure authority reductions made pursuant to subsec-
42       tion (c)(1), except that, upon request of the governor, the reduced num-
43       ber of authorized F.T.E. positions and the reduced amount of expendi-

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27

  1       ture authority established under subsection (c)(1) for a state agency in
  2       the executive branch of government may be increased upon approval by
  3       the state finance council acting on this matter which is hereby character-
  4       ized as a matter of legislative delegation and subject to the guidelines
  5       prescribed in subsection (c) of K.S.A. 75-3711c and amendments thereto.
  6             (2) For reductions made in the legislative branch of government, the
  7       legislative coordinating council is authorized to restore or allocate, to any
  8       state agency or agencies within the legislative branch, no more than 3/4 of
  9       the F.T.E. positions and expenditure authority reductions made pursuant
10       to subsection (c)(2), except that, upon request of the agency head, the
11       reduced number of authorized F.T.E. positions and the reduced amount
12       of expenditure authority established under subsection (c) for a state
13       agency in the legislative branch of government may be increased upon
14       approval by the legislative coordinating council.
15             (e) The secretary of administration is authorized to prescribe such
16       policies and procedures as may be deemed necessary to carry out the
17       provisions of this section.
18        Sec.  23. K.S.A. 75-2938, 75-2943, 75-5519, 75-5541, 75-5549 and 75-
19       6512 and K.S.A. 1998 Supp. 75-6801 are hereby repealed.
20        Sec.  24. [2.] This act shall take effect and be in force from and after
21       its publication in the statute book.
22