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S.B. 209





Sponsor: Craig A. Peterson

7    This act affects sections of Utah Code Annotated 1953 as follows:
8    AMENDS:
9         67-19-12, as last amended by Chapters 192 and 283, Laws of Utah 1996
10    Be it enacted by the Legislature of the state of Utah:
11        Section 1. Section 67-19-12 is amended to read:
12         67-19-12. State pay plans -- Applicability of section -- Exemptions from section --
13     Duties of director.
14        (1) (a) This section, and the rules adopted by the department to implement this section,
15    apply to each career and noncareer state employee not specifically exempted under Subsection (2).
16        (b) If not exempted under Subsection (2), a state employee is considered to be in classified
17    service.
18        (2) (a) The following state employees are exempt from this section:
19        (i) members of the Legislature and legislative employees;
20        (ii) members of the judiciary and judicial employees;
21        (iii) elected members of the executive branch and their direct staff who are merit-exempt
22    employees;
23        (iv) certificated employees of the State Board of Education;
24        (v) officers, faculty, and other employees of state institutions of higher education;
25        (vi) employees in any position for which the salary is set by statute;
26        (vii) attorneys in the Office of the Attorney General;
27        (viii) department heads and other persons appointed by the governor pursuant to statute;

1        (ix) employees of the Department of Community and Economic Development whose
2    positions are designated as executive/professional positions by the executive director of the
3    Department of Community and Economic Development with the concurrence of the director;
4        (x) deputy, division, and assistant directors and administrative assistants who report
5    directly to a department head or his equivalent; and
6        (xi) any other person whose appointment is required by law to be approved by the
7    governor.
8        (b) The executive director shall determine the salary range and other employment benefits
9    for appointees under Subsection (2)(a)(xi).
10        (3) (a) The director shall prepare, maintain, and revise a position classification plan for
11    each employee position not exempted under Subsection (2) to provide equal pay for equal work.
12        (b) Classification of positions shall be based upon similarity of duties performed and
13    responsibilities assumed, so that the same qualifications may reasonably be required for, and the
14    same salary range may be applied equitably to, each position in the same class.
15        (c) The director shall allocate or reallocate the position of each employee in classified
16    service to one of the classes in the classification plan.
17        (d) (i) The department shall conduct periodic studies and desk audits to provide that the
18    classification plan remains reasonably current and reflects the duties and responsibilities assigned
19    to and performed by employees.
20        (ii) The director shall determine the schedule for studies and desk audits after considering
21    factors such as changes in duties and responsibilities of positions or agency reorganizations.
22        (4) (a) With the approval of the governor, the director shall develop and adopt pay plans
23    for each position in classified service.
24        (b) The director shall design each pay plan to achieve, to the degree that funds permit,
25    comparability of state salary ranges to salary ranges used by private enterprise and other public
26    employment for similar work.
27        (c) The director shall [adhere to] comply with the following in developing each pay plan:
28        (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
29    differential among the various classes of positions in the classification plan.
30        (ii) (A) The director shall assign each class of positions in the classification plan to a salary
31    range and shall set the width of the salary range to reflect the normal growth and productivity

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1    potential of employees in that class.
2        (B) The width of the ranges need not be uniform for all classes of positions in the plan,
3    but each range shall contain merit steps in increments of [2.75%] 3% salary increases.
4        (iii) The director shall issue rules for the administration of pay plans. The rules may
5    provide for exceptional performance increases and for a program of incentive awards for
6    cost-saving suggestions and other commendable acts of employees. The director shall issue rules
7    providing for salary adjustments.
8        (iv) Merit step increases shall be granted, if funds are available, to employees who receive
9    a rating of "successful" or higher in an annual evaluation of their productivity and performance.
10        (v) By October 15 of each year, the director shall submit market comparability adjustments
11    to the state budget officer for consideration to be included as part of the affected agency's base
12    budgets.
13        (vi) By October 31 of each year, the director shall recommend a compensation package
14    to the governor.
15        (vii) Adjustments shall incorporate the results of a total compensation market survey of
16    salary ranges and benefits of a reasonable cross section of comparable benchmark positions in
17    private and public employment in the state. The survey may also study comparable unusual
18    positions requiring recruitment outside Utah in the surrounding western states. The director may
19    cooperate with other public and private employers in conducting the survey.
20        (viii) The director shall establish criteria to assure the adequacy and accuracy of the survey
21    and shall use methods and techniques similar to and consistent with those used in private sector
22    surveys. Except as provided under Section 67-19-12.3, the survey shall include a reasonable cross
23    section of employers. The director may cooperate with or participate in any survey conducted by
24    other public and private employers.
25        (ix) The establishing of a salary range is a nondelegable activity subject to Subsection
26    67-19-8(1) and is not appealable under the grievance procedures of Sections 67-19-30 through
27    67-19-32, Title 67, Chapter 19a, Grievance and Appeal Procedures, or otherwise.
28        (x) The governor shall:
29        (i) consider salary adjustments recommended under Subsection (4)(c)(vi) in preparing the
30    executive budget and shall recommend the method of distributing the adjustments;
31        (ii) submit compensation recommendations to the Legislature; and

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1        (iii) support the recommendation with schedules indicating the cost to individual
2    departments and the source of funds.
3        (xi) If funding is approved by the Legislature in a general appropriations act, the
4    adjustments take effect on the July 1 following the enactment.
5        (5) (a) The director shall regularly evaluate the total compensation program of state
6    employees in the classified service.
7        (b) The department shall determine if employee benefits are comparable to those offered
8    by other private and public employers using information from:
9        (i) the most recent edition of the Employee Benefits Survey Data conducted by the U.S.
10    Chamber of Commerce Research Center; or
11        (ii) the most recent edition of a nationally recognized benefits survey.
12        (6) (a) The director shall submit proposals for a state employee compensation plan to the
13    governor by October 31 of each year, setting forth findings and recommendations affecting state
14    employee compensation.
15        (b) The governor shall consider the director's proposals in preparing budget
16    recommendations for the Legislature.
17        (c) The governor's budget proposals to the Legislature shall include a specific
18    recommendation on state employee compensation.

Legislative Review Note
    as of 2-10-97 7:17 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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