Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: Sections 1- 14 will be effective July 1, 2001, subject to voter approval. Sections 15 - 18, regarding the Agency-based Employee Appointment and Promotion Program, will be effective 90 days after adjournment unless a referendum petition is filed.
Appropriation Summary for FY 1999-2000: None
Local Government Impact: None

This bill conforms laws governing the State Personnel System to the constitutional amendment specified in House Concurrent Resolution 99-1001. The resolution would submit the constitutional amendments to the voters at the 2000 General Election. The changes to the state personnel laws per the proposed Constitutional amendment are as follows:

• the State Personnel Director shall submit an annual report to the State,Veterans, and Military Affairs Committees of the House and Senate rather than to the General Assembly;

• repeals certain qualification requirements for the State Personnel Director;

• repeals provisions authorizing the director to establish special procedures for classifying employees of the State Auditor's office who are within the State Personnel System;

• increases the period of time a person may be temporarily appointed to a permanent position from 6 months to 12 months;

• changes the "rule of 3" by requiring that appointments be made from one of the 10, rather than 3, persons ranking highest on eligibility lists;

• repeals the right of certain employees who are promoted or transferred at their own request to return to their original position when they are dismissed for unsatisfactory performance.

The bill changes the name of the "agency-based personnel pilot program" to the "agency-based employee appointment and promotion program" and makes the program permanent. This provision of the bill is not subject to voter approval of the proposed Constitutional amendment.

The bill requires the Department of Personnel to provide implementation and coordination assistance to any state agency that elects to participate in the program. The bill specifies the context of the program, including the recruitment, appointment, promotion, and evaluation of employees. The bill requires an agency that elects to participate in the program to be responsible for implementing the program in that agency. Participating agencies are to provide an annual status report to the General Assembly.

This bill may affect state expenditures for FY 1999-2000, and beyond. The provisions regarding the agency-based employee appointment and promotion program may affect state expenditures starting FY 1999-2000, if any state agency elects to participate in the program. Additional operating and administrative expenditures may be incurred for program design, development, and implementation; employee and management training; computer re-programming; and general counsel legal services. This fiscal note cannot assess whether these expenditures will be recurring, or whether the amount, if any, may be absorbed within existing resources.

The remaining provisions of the bill may affect state expenditures, starting FY 2001-02. Some provisions may generate additional state costs, while others may contribute to cost-avoidance or cost reduction. This fiscal note assumes each agency will evaluate the impact of the provisions of this bill at that time and will identify any associated expenditure increase or decrease as an element of the annual budget submittal process.

This fiscal note would imply no new state appropriations are required for FY 1999-2000.