disciplinary action; appeal; superior court

SB1493 - 572R - H Ver

House Engrossed
Senate Bill

disciplinary
action; appeal; superior court

(now: law
enforcement; reinstatement; costs)

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1493

AN
ACT

Amending sections 38-612, 38-1004
and 38-1106, Arizona Revised Statutes; relating to law enforcement
terminations.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Section 38-612, Arizona Revised
Statutes, is amended to read:

START_STATUTE
38-612.

Administration
of payroll salary deductions

A. There shall be no payroll salary deductions from
the compensation of state officers or employees except as specifically
authorized by federal law or regulation or by a statute of this state.� An
administrative agency of this state may not authorize any other deduction.

B. Notwithstanding subsection A of this section,
reductions to retroactive payroll compensation
are
authorized pursuant to section 38-1106, subsection
K
l
, paragraph 5.

C. In addition to those payroll salary deductions
required by federal law or regulation or by statute, state officers or
employees may authorize deductions to be made from their salaries or wages for
the payment of:

1. Premiums on any health benefits, disability plans
or group life plans provided for by statute and any existing insurance programs
already provided by payroll deduction.

2. Shares or obligations to any state or federally
chartered credit union established primarily for the purpose of serving state
officers and employees and their families.

3. Dues in a recognized association composed
principally of employees and former employees of agencies of this state,
subject to the following criteria:

(a) When composed of at least one thousand state
employees other than employees of the state universities, the department of
public safety and academic personnel of the Arizona state schools for the deaf
and the blind.

(b) When composed of at least twenty-five
percent of the academic personnel or of the nonacademic employees of any state
university.

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

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

(e) When composed of a combined total of at least
eight hundred state employees described in subdivision (d) of this paragraph,
state employees of the state department of corrections and state employees who
are law enforcement officers.

4. Deferred compensation or tax sheltered annuity
salary reductions when made under approved plans.

5. Federal savings bond plans.

6. Recurrent fees, charges or other payments payable
to a state agency under a collection plan approved by the director of the
department of administration.

7. Except as provided in subsection G of this
section, contributions made to a charitable organization:

(a) Organized and operated exclusively for
charitable purposes and selected by the presidents of the state universities.�
Employees of the state universities shall be advised by form of the charitable
organizations to which the employees may contribute through payroll salary
deductions. The advisory provided under this subdivision shall be
substantially similar to the following and prominently printed:

"You may contribute to any charitable organization
registered under internal revenue code section 501(c)(3), tax exempt status.

________________________________

�Charitable organization name"

This subdivision applies only to academic personnel and
nonacademic employees of the state universities.

(b) Organized and operated exclusively for
charitable purposes, provided a fund drive by such an organization shall be
applicable to all state agencies except the state universities covered under
subdivision (a) of this paragraph and no state officer or employee of state
agencies subject to this subdivision may authorize more than one deduction for
charitable purposes to be in effect at the same time. This
subdivision applies to all state agencies except the universities covered under
subdivision (a) of this paragraph.

8. Contributions made for the purpose of
contributing to a fundraising campaign for a university or a club for faculty
or staff, or both, which is recognized by the university president and
authorized by the Arizona board of regents. This paragraph applies
only to academic personnel and nonacademic employees of the state universities.

9. Charges payable for transportation expenses
pursuant to section 41-710.01.

10. Payments ordered by courts of competent
jurisdiction within this state.

11. Automobile or homeowner's insurance premiums.

12. Premiums for the following state-sponsored
group benefits that are established primarily for the purpose of serving state
officers and employees and their families:

(a) Long-term care insurance.

(b) Critical care insurance.

(c) Prepaid legal services.

(d) Identity theft protection services.

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

D. In order for the department of administration to
establish and maintain a dues deduction pursuant to subsection C, paragraph 3
of this section, the department of administration may establish and maintain
the deduction without the appropriation of any additional monies or
technological improvements. The department of administration shall
track all personnel hours dedicated to dues deduction. The
department of administration may charge a fee to a recognized association that
qualifies under subsection C, paragraph 3 of this section for establishing the
automatic dues deduction and anytime changes are needed in the automatic dues
deduction system as a result of an increase or decrease in association dues.�
If the membership criteria of a recognized association fall below the criteria
set forth in subsection C, paragraph 3 of this section, the recognized
association shall be on probation for one year.� If the membership of a
recognized association falls below the criteria set forth in subsection C,
paragraph 3 of this section for more than one year, or if the members of the
association engage in a work slowdown or work stoppage, the dues deduction
authorized by this section shall immediately be discontinued.

E. For those state officers and employees under
payroll systems that are under the direction of the director of the department
of administration, the director shall provide for the administration of payroll
deductions for the purposes set forth in this section.� For all other state
officers and employees and for persons receiving allowances or benefits under
other state payroll and retirement systems, the appropriate state officer shall
provide for such administration of payroll deductions. Such administration
shall operate without cost or contribution from the state other than the
incidental expense of making the deductions and remittances to the payees.� If
any payee requests additional services, the director of the department of
administration or any other appropriate state officer may require payment for
the additional cost of providing such services.

F. As a means of readily identifying the employee
from whom payroll deductions are to be made, the state officer administering
payroll deductions may request an employee to enter such employee's social
security identification number on the payroll deduction authorization. Such
number shall not be used for any other purpose.

G. There shall be no payroll salary deductions from
the compensation of state officers or employees for contributions made to a
charitable organization that performs a nonfederally qualified abortion or
maintains or operates a facility where a nonfederally qualified abortion is
performed for the provision of family planning services. For the
purposes of this subsection, "nonfederally qualified abortion" means
an abortion that does not meet the requirements for federal reimbursement under
title XIX of the social security act.

H. The state, the director of the department of
administration or any other appropriate state officer shall be relieved of any
liability to employees authorizing deductions or organizations receiving
deductions that may result from authorizations pursuant to this section.
END_STATUTE

Sec. 2. Section 38-1004, Arizona Revised
Statutes, is amended to read:

START_STATUTE
38-1004.

Appeals;
hearings

A. A classified law enforcement officer who is
suspended, demoted or dismissed by the department head, after a hearing and
review before the merit system council, may have the determination of the
council reviewed pursuant to title 12, chapter 7, article 6 in the superior
court of the county in which the law enforcement officer resides. If
the determination of the council is overruled by the court, the law enforcement
officer shall be reinstated in the officer's position and the officer shall be
reimbursed for any compensation withheld pending determination by the council
and court.

B. If the order of the department head was for a
suspension greater than sixteen hours, demotion or dismissal and the court
exonerates the officer, the court may award, in whole or in part, the
reasonable costs and attorney fees that the law enforcement officer incurred or
were incurred on behalf of the law enforcement officer in the court
proceedings. The award of attorney fees by the court shall not
exceed $15,000. An award of attorney fees does not apply if either
of the following applies:

1. The order of the department head was not for
disciplinary purposes but was for administrative purposes such as a reduction
in force.

2. The disciplinary action related to off-duty
activities unrelated to the required duties of the law enforcement officer.� If
the department head appeals the decision of the court, the court's award of any
costs or attorney fees to an officer shall be stayed pending the conclusion of
the appeal.� If the department head's decision is upheld on appeal, the award
of costs or attorney fees in favor of the officer shall be reversed.

C. If a law enforcement officer of a county, city or
town described in section 38-1007 appeals from a decision of a department
head in connection with the law enforcement officer's suspension greater than
sixteen hours, demotion or dismissal and the county, city or town maintains a
merit system or civil service plan for its employees, and the merit system or
civil service plan appeals board exonerates the officer, the merit system or
civil service plan appeals board may award, in whole or in part, the reasonable
costs and attorney fees that the law enforcement officer incurred or were
incurred on behalf of the law enforcement officer in connection with the
appeal. The amount of the award by the merit system or civil service
plan appeals board shall not exceed $10,000. If the department head appeals the
decision of the merit system or civil service appeals board, the award of
attorney fees shall be stayed pending the conclusion of the
appeal. If the officer appeals to court the decision of the merit
system or civil service plan appeals board, or of the city or town council or
board of supervisors if the city, town or county has no such board, and the
court exonerates the officer, the court may award, in whole or in part, the
reasonable costs and attorney fees that the law enforcement officer incurred or
were incurred on behalf of the law enforcement officer in connection with the
appeal. The award of attorney fees by the governing body or court shall not
exceed $15,000. An award of attorney fees under this subsection does
not apply if either of the following applies:

1. The order of the department head was not for
disciplinary purposes but was for administrative purposes such as a reduction
in force.

2. The disciplinary action related to off-duty
activities unrelated to the required duties of the law enforcement officer.� If
the department head appeals the decision of the court, the court's award of any
costs or attorney fees to an officer shall be stayed pending the conclusion of
the appeal.� If the department head's decision is upheld on appeal, the award
of costs or attorney fees in favor of the officer shall be reversed.

D. A department head shall have the right to have
all council policies and decisions reviewed pursuant to title 12, chapter 7,
article 6 in the superior court of the county in which the law enforcement
officer resides and legal counsel for the department head shall be provided by
the county or city attorney in whose jurisdiction the department lies.

E. Notwithstanding section 38-1106, subsection

J
k
, any appeal of a
suspension, demotion or dismissal in which a single hearing officer or
administrative law judge has been appointed by the merit system council or
appeals board to conduct the appeal hearing shall be open to the public unless
the hearing officer or administrative law judge determines that good cause
exists to close the hearing.
END_STATUTE

Sec. 3. Section 38-1106, Arizona Revised
Statutes, is amended to read:

START_STATUTE
38-1106.

Appeal of disciplinary actions; transcripts; change of hearing
officer or administrative law judge; burden of proof; superior court appeal;
final disposition report; exception

A. In any appeal of a disciplinary action by a law
enforcement officer, the parties shall cooperate with each other, act in good
faith and exchange copies of all relevant documents and a list of all witnesses
pursuant to the following time periods and requirements:

1. Within fourteen calendar days after the
employer's receipt of a written request from the law enforcement officer for a
copy of the investigative file that is accompanied by a copy of the filed
notice of appeal, the employer shall provide a complete copy of the
investigative file as well as the names and contact information for all persons
interviewed during the course of the investigation.

2. Not later than fourteen calendar days before the
appeal hearing, the parties shall produce and serve on every party the
following information:

(a) The name of each witness whom the disclosing
party expects to call at the appeal hearing, with a designation of the subject
matter on which each witness might be called to testify.� A witness may decline
an interview. The parties shall not interfere with any decision of a witness
regarding whether to be interviewed. An employer shall not
discipline, retaliate against or threaten to retaliate against any witness for
agreeing to be interviewed or for testifying or providing evidence in the
appeal.

(b) The name and contact information of each person
who has given statements, whether written or recorded or signed or unsigned,
regarding matters relevant to the notice of discipline and the custodian of the
copies of those statements.

(c) Copies of any documents that may be introduced
at the hearing and that have not previously been disclosed.

3. The duty to disclose information continues to
exist throughout the process and up to the end of the appeal process.

B. It is unlawful for a person to disseminate
information that is disclosed pursuant to subsection A of this section to any
person other than the parties to the appeal and their lawful representatives
for purposes of the appeal of the disciplinary action. This
subsection does not prohibit the use of the information in the hearing or
disclosure pursuant to title 39, chapter 1, article 2.

C. If a transcript is required in an administrative
hearing, the employer shall obtain the transcript and provide a copy to the law
enforcement officer within ten calendar days after the employer's receipt of
the transcript.

D. Failure to comply with the requirements of
subsection A or B of this section shall result in the exclusion of the witness,
evidence or testimony, unless the failure to comply is because of excusable
neglect.

E. The employer or the law enforcement officer may
seek a determination by the hearing officer, administrative law judge or
appeals board hearing the appeal regarding any evidence that the employer or
the law enforcement officer believes should not be disclosed pursuant to
subsection A of this section because the risk of harm involved in disclosure
outweighs any usefulness of the disclosure in the hearing.� In determining
whether evidence will be disclosed, the hearing officer, administrative law
judge or appeals board may perform an in camera review of the evidence and may
disclose the material subject to any restriction on the disclosure, including
the closing of the hearing or the sealing of the records, that the hearing
officer, administrative law judge or appeals board finds necessary under the
circumstances.

F. In any appeal of a disciplinary action by a law
enforcement officer in which a single hearing officer or administrative law
judge has been appointed to conduct the appeal hearing, the law enforcement
officer or the employer, within ten calendar days after the appointment of the
hearing officer or administrative law judge, may request a change of hearing
officer or administrative law judge. In cases before the office of
administrative hearings or if the employer is a county, city or town, on the
first request of a party, the request shall be granted.� A city or town with a
population of less than sixty-five thousand persons or a county with a
population of less than two hundred fifty thousand persons must provide, if
necessary to comply with this subsection, for an alternate hearing officer by
means of an interagency agreement with another city, town or
county. If the law enforcement officer is the party who requested
the alternate hearing officer, the law enforcement officer shall reimburse the
city, town or county for one-half of any additional expenses incurred by
the city, town or county in procuring the alternate hearing officer under the
interagency agreement. If an alternate hearing officer is requested
by means of an interagency agreement, the hearing officer shall provide to the
law enforcement officer or employer the option of continuing the hearing for an
additional ten calendar days. Any subsequent requests may be granted
only on a showing that a fair and impartial hearing cannot be obtained due to
the prejudice of the assigned hearing officer or administrative law
judge. The supervisor or supervising body of the hearing officer or
administrative law judge shall decide whether a showing of prejudice has been
made.

G. The employer has the burden of proof in an appeal
of a disciplinary action by a law enforcement officer.

H. The hearing officer, administrative law judge or
appeals board may take into consideration violations of this article as
mitigation in determining discipline.

I. Except where a statute, rule or ordinance makes
the administrative evidentiary hearing the final administrative determination
and after a hearing where the law enforcement officer and the employer have
been equally allowed to call and examine witnesses, cross-examine witnesses,
provide documentary evidence and otherwise fully participate in the hearing,

an employer or a person acting on behalf of an employer may
amend, modify, reject or reverse the portion of a decision made by a
hearing officer, administrative law judge or appeals board

that was arbitrary or without reasonable justification. The employer
or person acting on behalf of the employer shall state the reason for the
amendment, modification, rejection or reversal.

J. If a hearing officer,
ADMINISTRATIVE LAW JUDGE OR APPEALS BOARD determines THAT A TERMINATION OF A
LAW ENFORCEMENT OFFICER BY AN EMPLOYER was without just cause and the employer
fails to reinstate the law enforcement officer
AND A
SUBSEQUENT ACTION BROUGHT IN SUPERIOR COURT PURSUANT TO SECTION 38�1107 ALSO
DETERMINES THAT THE TERMINATION WAS WITHOUT JUST CAUSE, the employer shall pay
all taxable costs and reasonable attorney fees and expert fees incurred by the
law enforcement officer
for the appeal TO THE HEARING
OFFICER, ADMINISTRATIVE LAW JUDGE OR APPEALS BOARD AND THE SUBSEQUENT APPEAL TO
THE SUPERIOR COURT.

J.

k.
Notwithstanding
chapter 3, article 3.1 of this title, all hearings pursuant to this section
shall be open to the public.� Executive sessions allowed pursuant to section 38-431.03
shall be limited to legal advice to a personnel appeals board or for
deliberations.

K.

L.
A
law enforcement officer who prevails in an appeal where a termination has been
reversed shall be awarded retroactive compensation from the date of the
law enforcement
officer's separation to the date of
reinstatement.� The hearing officer, administrative law judge or appeals board
hearing the appeal shall determine the amount of retroactive compensation
awarded and any reduction to that amount. Retroactive compensation
may be reduced:

1. If there is undue delay in setting a hearing date
caused by the law enforcement officer or the law enforcement officer's
representative.

2. If the law enforcement officer requests a
continuance.

3. If there exists a period between separation and
reinstatement that the law enforcement officer would have been unable to
perform the duties of a law enforcement officer.

4. By any amount earned by the law enforcement
officer in alternative employment.

5. If the hearing officer, administrative law judge
or appeals board finds that the law enforcement officer's action or misconduct
warrants suspension or demotion.

L.

m.
The
hearing officer, administrative law judge or appeals board shall state in every
finding of disciplinary action whether or not just cause existed for the
disciplinary action.

M.

n.
The
hearing officer, administrative law judge or appeals board shall document in
the record those circumstances where the hearing officer, administrative law
judge or appeals board determines that a party has clearly violated a party's
obligation under this section.

N.

o.
Immediately
after a law enforcement officer receives the final disposition of an appeal of
a disciplinary action, the administrative law judge, hearing officer or
presiding authority shall provide a final disposition report that includes the final
decision and any amended findings of fact to the law enforcement agency that
initiated or imposed the discipline.

O.

p.
A
law enforcement agency that receives a final disposition report shall include
the final disposition report in the agency's original investigation
record. If the law enforcement agency provided a prosecuting agency
with information that was obtained during the investigation of the law
enforcement officer for the prosecuting agency's rule 15.1 database
as defined in section 38-1119
, the law enforcement agency
shall forward the final disposition report to the prosecuting agency.

P.

q.
This
section does not apply to a law enforcement officer who is employed by an
agency of this state as an at will employee.
END_STATUTE