HB 2812 Arizona House · 57th Legislature - Second Regular Session

accumulated sick leave; payments

HB 2812 allows Arizona state and county employees in specific retirement systems (like the Arizona State Retirement System or public safety plans) to receive cash payments for unused sick leave upon retirement. Payments are calculated as 25% of an employee’s hourly rate for 500-750 hours, 33% for 750-1,000 hours, and 50% for 1,000+ hours (capped at $57,600 total). Employees may choose to receive payments as a lump sum or over three years, and the law specifies these payments do not count toward retirement benefits or salary calculations. The bill applies retroactively to certain university employees under the Arizona Board of Regents but excludes those receiving federal sick leave payments.

Issues: ✓ Labor & Employment

Bill status failed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Governor

Introduced Jan 21, 2026 Last action Apr 9, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

House Engrossed Version (02/23/2026) → Senate Engrossed Version (04/09/2026) · 6 edits · Feb 23, 2026

MODERATE

The bill was completely rewritten to shift its focus from sick leave payments for state employees to defining the powers and duties of the Attorney General. The new version establishes the Attorney General as the chief legal officer, grants authority to hire counsel for specific agencies, and outlines rules for handling legal settlements and fees.

Scope change

The bill's scope changed entirely from governing retirement benefits for sick leave to governing the legal services provided by the state's Attorney General and restricting other agencies from hiring their own lawyers.

SCOPE

Removed all provisions regarding sick leave payment calculations, eligibility thresholds, and retirement timing for state employees.

Added comprehensive duties for the Attorney General, including serving as legal advisor, organizing the department, and representing the state in antitrust and civil rights cases.

REQUIREMENT

Added restrictions preventing most state agencies from hiring their own legal counsel, with specific exemptions for agencies like the Department of Public Safety, Governor's office, and others.

Modified the statute number and title from Section 38-615 (Sick Leave) to Section 41-192 (Attorney General Powers and Duties).

FISCAL

Added a new appropriation of $4,750,000 from the Arizona highway patrol fund to the Department of Public Safety for operating expenses.

TIMELINE

Added an effective date clause stating the new Attorney General provisions take effect on or after December 31, 2026.

Floor votes · House Feb 23, 2026

How they voted

48–9

Passed · 3 other

Total votes 60

Feb 23, 2026

D Democratic27

25 Yea 2

92% Yea

R Republican33

23 Yea 9 Nay 1

69% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 9, 2026

Upper · Passed

DPA

upper

Mar 31, 2026

Upper · Passed

DPA/SE

upper

Feb 23, 2026

Lower · Passed

PASSED

lower

Feb 11, 2026

Lower · Passed

lower

1 primary · 0 co-sponsors