Ariz. Rev. Stat. § 38-613 – State employee suggestion program awards; fund

A. The director of the department of administration may adopt rules to provide an award to any state employee for any of the following:
1. 1. An adopted procedure or idea that resulted in eliminating or reducing state expenditures or improving operations in the public interest.
2. 2. The performance of a special act or service in the public interest.
B. The governor shall appoint a five member board that serves at the governor's pleasure for four year staggered terms to establish policy for the operation of the state employee suggestion program, review all suggestions and approve all awards with the concurrence of the head of the agency in which the cost saving is realized. The board shall elect a chairman each year.
C. The award may equal no more than ten per cent of the amount saved as a result of the suggestion.
D. A state employee suggestion program award fund is established consisting of identified measurable dollar savings transferred from appropriated and nonappropriated monies in the budget unit where the cost saving is realized, except that monies may not be transferred from the state general fund. The board shall initiate fund transfers with the concurrence of the director of the department of administration. Except as provided in subsection G of this section, the director of the department of administration shall use monies in the state employee suggestion program award fund for the following purposes only:
1. 1. To make awards pursuant to this section.
2. 2. To purchase recognition materials with a cost of not to exceed fifty dollars for each award.
E. The board shall certify to the director of the department of administration the names of persons granted awards and the amounts of the awards. On certification of the names and the amounts of the awards the director of the department of administration shall draw a warrant on the state treasurer. The state treasurer shall pay the warrant from the state employee suggestion program award fund.
F. An award to a state employee shall not be considered as extra compensation.
G. The director of the department of administration may use up to six per cent of any monies transferred to the state employee suggestion program award fund for the purposes of administering, advertising and promoting the state employee suggestion program.
H. Elected officials, directors, deputy directors, managers and supervisors are not eligible for awards pursuant to this section.