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H.B. 173 Enrolled





Chief Sponsor: Ann W. Hardy

Senate Sponsor: Beverly Ann Evans

                  LONG TITLE
                  General Description:
                      This bill modifies the Utah State Personnel Management Act to amend salary survey
                  and line of duty death benefits provisions.
                  Highlighted Provisions:
                      This bill:
                      .    amends provisions for obtaining salary information for comparable unusual
                  positions requiring recruitment from surrounding states to other states;
                      .    requires the director of the Department of Human Resource Management to obtain
                  compensation survey information from the Division of Workforce Information and
                  Payment Services;
                      .    requires the Department of Human Resource Management to acquire and protect the
                  needed records in compliance with the records provisions of the Utah Work Force
                  Services Code;
                      .    amends unused sick leave benefits for the surviving family of an employee who dies
                  in the line of duty to:
                          .    repeal the dental benefit;
                          .    repeal the five-year maximum coverage provision; and
                          .    provide the same group health coverage that previously covered the surviving
                  family; and
                      .    makes technical changes.
                  Monies Appropriated in this Bill:

                  Other Special Clauses:
                  Utah Code Sections Affected:
                      67-19-12, as last amended by Chapter 16, Laws of Utah 2003
                      67-19-14.3, as enacted by Chapter 28, Laws of Utah 2004
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 67-19-12 is amended to read:
                       67-19-12. State pay plans -- Applicability of section -- Exemptions -- Duties of
                      (1) (a) This section, and the rules adopted by the department to implement this section,
                  apply to each career and noncareer state employee not specifically exempted under Subsection
                      (b) If not exempted under Subsection (2), a state employee is considered to be in
                  classified service.
                      (2) The following state employees are exempt from this section:
                      (a) members of the Legislature and legislative employees;
                      (b) members of the judiciary and judicial employees;
                      (c) elected members of the executive branch and their direct staff who meet career
                  service exempt criteria as defined in Subsection 67-19-15 (1)(k);
                      (d) certificated employees of the State Board of Education;
                      (e) officers, faculty, and other employees of state institutions of higher education;
                      (f) employees in any position that is determined by statute to be exempt from this
                  Subsection (2);
                      (g) attorneys in the Office of the Attorney General;
                      (h) department heads and other persons appointed by the governor pursuant to statute;
                      (i) employees of the Department of Community and Economic Development whose

                  positions are designated as executive/professional positions by the executive director of the
                  Department of Community and Economic Development with the concurrence of the director; and
                      (j) employees of the Medical Education Council.
                      (3) (a) The director shall prepare, maintain, and revise a position classification plan for
                  each employee position not exempted under Subsection (2) to provide equal pay for equal work.
                      (b) Classification of positions shall be based upon similarity of duties performed and
                  responsibilities assumed, so that the same job requirements and the same salary range may be
                  applied equitably to each position in the same class.
                      (c) The director shall allocate or reallocate the position of each employee in classified
                  service to one of the classes in the classification plan.
                      (d) (i) The department shall conduct periodic studies and desk audits to provide that the
                  classification plan remains reasonably current and reflects the duties and responsibilities assigned
                  to and performed by employees.
                      (ii) The director shall determine the schedule for studies and desk audits after
                  considering factors such as changes in duties and responsibilities of positions or agency
                      (4) (a) With the approval of the governor, the director shall develop and adopt pay plans
                  for each position in classified service.
                      (b) The director shall design each pay plan to achieve, to the degree that funds permit,
                  comparability of state salary ranges to salary ranges used by private enterprise and other public
                  employment for similar work.
                      (c) The director shall adhere to the following in developing each pay plan:
                      (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
                  differential among the various classes of positions in the classification plan.
                      (ii) (A) The director shall assign each class of positions in the classification plan to a
                  salary range and shall set the width of the salary range to reflect the normal growth and
                  productivity potential of employees in that class.
                      (B) The width of the ranges need not be uniform for all classes of positions in the plan,

                  but each range shall contain merit steps in increments of 2.75% salary increases.
                      (iii) (A) The director shall issue rules for the administration of pay plans.
                      (B) The rules may provide for exceptional performance increases and for a program of
                  incentive awards for cost-saving suggestions and other commendable acts of employees.
                      (C) The director shall issue rules providing for salary adjustments.
                      (iv) Merit step increases shall be granted, if funds are available, to employees who
                  receive a rating of "successful" or higher in an annual evaluation of their productivity and
                      (v) By October 15 of each year, the director shall submit market comparability
                  adjustments to the director of the Governor's Office of Planning and Budget for consideration to
                  be included as part of the affected agency's base budgets.
                      (vi) By October 31 of each year, the director shall recommend a compensation package
                  to the governor.
                      (vii) (A) Adjustments shall incorporate the results of a total compensation market survey
                  of salary ranges and benefits of a reasonable cross section of comparable benchmark positions in
                  private and public employment in the state.
                      (B) The survey may also study comparable unusual positions requiring recruitment
                  [outside Utah in the surrounding western] in other states.
                      (C) The director may cooperate with other public and private employers in conducting
                  the survey.
                      (viii) (A) The director shall establish criteria to assure the adequacy and accuracy of the
                  survey and shall use methods and techniques similar to and consistent with those used in private
                  sector surveys.
                      (B) Except as provided under Section 67-19-12.3 , the survey shall include a reasonable
                  cross section of employers.
                      (C) The director may cooperate with or participate in any survey conducted by other
                  public and private employers.
                      (D) The director shall obtain information for the purpose of constructing the survey from

                  the Division of Workforce Information and Payment Services and shall include employer name,
                  number of persons employed by the employer, employer contact information and job titles,
                  county code, and salary if available.
                      (E) The department shall acquire and protect the needed records in compliance with the
                  provisions of Section 35A-4-312 .
                      (ix) The establishing of a salary range is a nondelegable activity subject to Subsection
                  67-19-8 (1) and is not appealable under the grievance procedures of Sections 67-19-30 through
                  67-19-32 , Title 67, Chapter 19a, Grievance and Appeal Procedures, or otherwise.
                      (x) The governor shall:
                      (A) consider salary adjustments recommended under Subsection (4)(c)(vi) in preparing
                  the executive budget and shall recommend the method of distributing the adjustments;
                      (B) submit compensation recommendations to the Legislature; and
                      (C) support the recommendation with schedules indicating the cost to individual
                  departments and the source of funds.
                      (xi) If funding is approved by the Legislature in a general appropriations act, the
                  adjustments take effect on the July 1 following the enactment.
                      (5) (a) The director shall regularly evaluate the total compensation program of state
                  employees in the classified service.
                      (b) The department shall determine if employee benefits are comparable to those offered
                  by other private and public employers using information from:
                      (i) the most recent edition of the Employee Benefits Survey Data conducted by the U.S.
                  Chamber of Commerce Research Center; or
                      (ii) the most recent edition of a nationally recognized benefits survey.
                      (6) (a) The director shall submit proposals for a state employee compensation plan to the
                  governor by October 31 of each year, setting forth findings and recommendations affecting state
                  employee compensation.
                      (b) The governor shall consider the director's proposals in preparing budget
                  recommendations for the Legislature.

                      (c) The governor's budget proposals to the Legislature shall include a specific
                  recommendation on state employee compensation.
                      Section 2. Section 67-19-14.3 is amended to read:
                       67-19-14.3. Continuation of Insurance Benefits Program -- Creation -- Coverage
                  following death in the line of duty.
                      (1) There is created the "Continuation of [Medical and Dental] Insurance Benefits
                  Program" to provide a continuation of [medical and dental] insurance to the surviving spouse and
                  family of any state employee whose death occurs in the line of duty.
                      (2) The insurance coverage shall [continue for a period of five years or until the
                  surviving spouse becomes eligible for Medicare, whichever occurs first] be the same coverage as
                  provided under Section 49-20-406 .
                      (3) The program provides that unused accumulated sick leave of a deceased employee
                  may be used for additional medical coverage in the same manner as provided under Section
                  67-19-14.2 .

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