Authorizes all state agencies, departments, and institutions to allow voluntary flexible work schedules, for the fiscal biennium ending June 30, 2013, for permanent state employees, including allowing thirty hour workweeks. Specifies that the budgeted salary for an employee on a flexible schedule remains the same, but the employee’s pay will be reduced pro rata based on hours worked, with salary savings reverted to the funding source. Allows the State Personnel Commission to assist with the implementation of the flexible schedules.