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H.B. 319 Enrolled

                 

EXPANSION OF DEPARTMENT OF

                 
ADMINISTRATIVE SERVICES OVERSIGHT

                 
TO INCLUDE HUMAN RESOURCE

                 
MANAGEMENT

                 
2005 GENERAL SESSION

                 
STATE OF UTAH

                 
Chief Sponsor: D. Gregg Buxton

                 
Senate Sponsor: John W. Hickman

                 
                  LONG TITLE
                  General Description:
                      This bill modifies provisions of the Personnel Management Act to change the
                  Department of Human Resource Management to a division under the Department of
                  Administrative Services.
                  Highlighted Provisions:
                      This bill:
                      .    provides that the Department of Human Resource Management shall be changed to
                  a division within the Department of Administrative Services;
                      .    changes the name of the Department of Human Resource Management to the
                  Division of Human Resource Management;
                      .    provides that the Division of Human Resource Management shall be administered
                  by a director appointed by the governor with the consent of the Senate;
                      .    provides that the director shall be accountable to the executive director of the
                  Department of Administrative Services;
                      .    removes the director's discretion to appoint division directors and program
                  managers;
                      .    provides that the director of the Division of Human Resource Management shall be
                  responsible for administering the human resource program for the state and for all
                  departments;


                      .    provides that policies set by the Division of Human Resource Management shall take
                  precedence over conflicting policies and practices;
                      .    eliminates the Utah Quality Service Award program;
                      .    terminates existing procedures for performing human resource services for various
                  departments and permits the Division of Human Resource Management to establish
                  field offices in departments;
                      .    eliminates the ability for departments to provide certain human resource management
                  functions;
                      .    provides a listing of required provisions for agreements governing field offices in
                  departments;
                      .    provides for allocation of the cost of department facilities, equipment, and supplies
                  that are used by a division field office;
                      .    requires the director of the Division of Human Resource Management to submit an
                  annual budget request for the approval of the governor and the Legislature;
                      .    provides the director of the Division of Human Resource Management with
                  responsibility to design and administer the state recruitment and selection system;
                      .    changes the date for submission of market comparability adjustments to coincide with
                  the date that the compensation package recommendation is due; and
                      .    makes technical changes.
                  Monies Appropriated in this Bill:
                      None
                  Other Special Clauses:
                      This bill takes effect on July 1, 2006.
                  Utah Code Sections Affected:
                  AMENDS:
                      13-1a-3, as last amended by Chapter 79, Laws of Utah 1996
                      35A-1-205, as last amended by Chapter 17, Laws of Utah 2003
                      49-20-401, as last amended by Chapter 118, Laws of Utah 2004


                      53-6-104, as renumbered and amended by Chapter 234, Laws of Utah 1993
                      53A-24-114, as last amended by Chapter 352, Laws of Utah 2004
                      53C-1-201, as last amended by Chapters 41 and 63, Laws of Utah 2004
                      54-1-6, as last amended by Chapters 101 and 122, Laws of Utah 1988
                      54-4a-3, as last amended by Chapter 122, Laws of Utah 1988
                      61-1-18, as last amended by Chapter 145, Laws of Utah 2001
                      62A-15-613, as renumbered and amended by Chapter 8, Laws of Utah 2002, Fifth Special
                  Session
                      63-5b-102, as last amended by Chapters 14 and 159, Laws of Utah 2002
                      63-13-2, as last amended by Chapter 306, Laws of Utah 2000
                      63-34-12, as last amended by Chapter 122, Laws of Utah 1988
                      63A-1-109, as last amended by Chapter 356, Laws of Utah 2004
                      63A-9-501, as last amended by Chapter 5, Laws of Utah 2003
                      63A-9-801, as last amended by Chapter 209, Laws of Utah 2003
                      67-5-7, as last amended by Chapter 122, Laws of Utah 1988
                      67-5-9, as last amended by Chapter 122, Laws of Utah 1988
                      67-5-12, as last amended by Chapter 191, Laws of Utah 1989
                      67-8-3, as last amended by Chapter 250, Laws of Utah 2002
                      67-8-5, as last amended by Chapter 214, Laws of Utah 1995
                      67-19-3, as last amended by Chapter 7, Laws of Utah 2002
                      67-19-3.1, as enacted by Chapter 322, Laws of Utah 2000
                      67-19-5, as last amended by Chapter 176, Laws of Utah 2002
                      67-19-6, as last amended by Chapter 4, Laws of Utah 2003
                      67-19-6.7, as last amended by Chapters 82 and 375, Laws of Utah 1997
                      67-19-11, as last amended by Chapter 122, Laws of Utah 1988
                      67-19-12, as last amended by Chapter 16, Laws of Utah 2003
                      67-19-12.2, as enacted by Chapter 231, Laws of Utah 2001
                      67-19-12.5, as enacted by Chapter 200, Laws of Utah 1989


                      67-19-12.7, as enacted by Chapter 125, Laws of Utah 1999
                      67-19-12.9, as last amended by Chapter 14, Laws of Utah 2002, Fifth Special Session
                      67-19-13, as enacted by Chapter 139, Laws of Utah 1979
                      67-19-15, as last amended by Chapter 213, Laws of Utah 1997
                      67-19-15.1, as enacted by Chapter 128, Laws of Utah 1994
                      67-19-19, as last amended by Chapter 122, Laws of Utah 1988
                      67-19-26, as enacted by Chapter 139, Laws of Utah 1979
                      67-19-31, as last amended by Chapter 7, Laws of Utah 2002
                      67-19-33, as enacted by Chapter 280, Laws of Utah 1990
                      67-19-34, as last amended by Chapter 259, Laws of Utah 1991
                      67-19-36, as enacted by Chapter 280, Laws of Utah 1990
                      67-19-37, as enacted by Chapter 280, Laws of Utah 1990
                      67-19-38, as enacted by Chapter 280, Laws of Utah 1990
                      67-19a-303, as last amended by Chapter 204, Laws of Utah 1991
                      67-19c-101, as last amended by Chapters 82 and 375, Laws of Utah 1997
                      67-20-8, as last amended by Chapter 213, Laws of Utah 1997
                      67-22-2, as last amended by Chapters 156 and 306, Laws of Utah 2004
                      72-1-203, as renumbered and amended by Chapter 270, Laws of Utah 1998
                  ENACTS:
                      67-19-6.1, Utah Code Annotated 1953
                  REPEALS:
                      67-19-6.4, as enacted by Chapter 156, Laws of Utah 1997
                      67-19-7, as last amended by Chapter 139, Laws of Utah 1989
                      67-19-8, as last amended by Chapter 4, Laws of Utah 2003
                      67-19-9, as enacted by Chapter 139, Laws of Utah 1979
                      67-19-10, as enacted by Chapter 139, Laws of Utah 1979
                  Uncodified Material Affected:
                  ENACTS UNCODIFIED MATERIAL


                 
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 13-1a-3 is amended to read:
                       13-1a-3. Employment and compensation of personnel -- Compensation of director.
                      The director, with the approval of the executive director, may employ personnel necessary
                  to carry out the duties and responsibilities of the division at salaries established by the executive
                  director according to standards established by the [Department] Division of Human Resource
                  Management. The executive director shall establish the salary of the director according to
                  standards established by the [Department] Division of Human Resource Management.
                      Section 2. Section 35A-1-205 is amended to read:
                       35A-1-205. Workforce Appeals Board -- Chair -- Appointment -- Compensation --
                  Qualifications.
                      (1) There is created the Workforce Appeals Board within the department consisting of
                  one or more panels to hear and decide appeals from the decision of an administrative law judge.
                      (2) (a) A panel shall consist of three impartial members appointed by the governor as
                  follows:
                      (i) the board chair, appointed in accordance with Subsection (5);
                      (ii) one member appointed to represent employers; and in making this appointment, the
                  governor shall consider nominations from employer organizations; and
                      (iii) one member appointed to represent employees; and in making this appointment, the
                  governor shall consider nominations from employee organizations.
                      (b) No more than two members of a panel may belong to the same political party.
                      (3) (a) (i) The term of a member shall be six years beginning on March 1 of the year the
                  member is appointed, except as otherwise provided in Subsection (3)(a)(ii).
                      (ii) The governor shall, at the time of appointment or reappointment, adjust the length of
                  terms to ensure that the terms of members are staggered so that approximately one third of the
                  members are appointed every two years.
                      (b) When a vacancy occurs in the membership for any reason, the replacement shall be


                  appointed for the unexpired term.
                      (c) The governor may remove a member for inefficiency, neglect of duty, malfeasance or
                  misfeasance in office, or other good and sufficient cause.
                      (d) A member shall hold office until a successor is appointed and has qualified.
                      (4) (a) Except as provided in Subsection (4)(c), a member of the board may not receive
                  compensation for the member's services, but may receive per diem and expenses incurred in the
                  performance of the member's official duties at the rates established by the Division of Finance
                  under Sections 63A-3-106 and 63A-3-107 .
                      (b) A member may decline to receive per diem and expenses for the member's service.
                      (c) The member appointed as board chair in accordance with Subsection (5) shall be
                  compensated at an hourly rate determined by the [Department] Division of Human Resource
                  Management in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
                      (5) (a) The chief officer of the board shall be the chair, who shall serve as the executive
                  and administrative head of the board.
                      (b) The chair shall be appointed by the governor to represent the public and may be
                  removed from that position at the will of the governor.
                      (c) The chair shall be experienced in administration and possess any additional
                  qualifications determined by the governor.
                      (6) (a) The chair shall designate an alternate from a panel appointed under this section:
                      (i) in the absence of a regular member or the chair; or
                      (ii) if the regular member or the chair has a conflict of interest.
                      (b) Each case shall be decided by a full three-member panel.
                      (7) The department shall provide the Workforce Appeals Board necessary staff support,
                  except, the board may employ, retain, or appoint legal counsel.
                      Section 3. Section 49-20-401 is amended to read:
                       49-20-401. Program -- Powers and duties.
                      (1) The program shall:
                      (a) act as a self-insurer of employee benefit plans and administer those plans;


                      (b) enter into contracts with private insurers or carriers to underwrite employee benefit
                  plans as considered appropriate by the program;
                      (c) indemnify employee benefit plans or purchase commercial reinsurance as considered
                  appropriate by the program;
                      (d) provide descriptions of all employee benefit plans under this chapter in cooperation
                  with covered employers;
                      (e) process claims for all employee benefit plans under this chapter or enter into
                  contracts, after competitive bids are taken, with other benefit administrators to provide for the
                  administration of the claims process;
                      (f) obtain an annual actuarial review of all health and dental benefit plans and a periodic
                  review of all other employee benefit plans;
                      (g) consult with the covered employers to evaluate employee benefit plans and develop
                  recommendations for benefit changes;
                      (h) annually submit a budget and audited financial statements to the governor and
                  Legislature which includes total projected benefit costs and administrative costs;
                      (i) maintain reserves sufficient to liquidate the unrevealed claims liability and other
                  liabilities of the employee benefit plans as certified by the program's consulting actuary;
                      (j) submit its recommended benefit adjustments for state employees to the director of the
                  state [Department] Division of Human Resource Management;
                      (k) determine benefits and rates, upon approval of the board, for multiemployer risk
                  pools, retiree coverage, and conversion coverage;
                      (l) determine benefits and rates, upon approval of the board and the Legislature, for state
                  employees;
                      (m) administer benefits and rates, upon ratification of the board, for single employer risk
                  pools;
                      (n) request proposals for provider networks or health and dental benefit plans
                  administered by third party carriers at least once every three years for the purposes of:
                      (i) stimulating competition for the benefit of covered individuals;


                      (ii) establishing better geographical distribution of medical care services; and
                      (iii) providing coverage for both active and retired covered individuals;
                      (o) offer proposals which meet the criteria specified in a request for proposals and
                  accepted by the program to active and retired state covered individuals and which may be offered
                  to active and retired covered individuals of other covered employers at the option of the covered
                  employer;
                      (p) perform the same functions established in Subsections (1)(a), (b), (e), and (h) for the
                  Department of Health if the program provides program benefits to children enrolled in the Utah
                  Children's Health Insurance Program created in Title 26, Chapter 40, Utah Children's Health
                  Insurance Act;
                      (q) establish rules and procedures governing the admission of political subdivisions or
                  educational institutions and their employees to the program;
                      (r) contract directly with medical providers to provide services for covered individuals;
                  and
                      (s) take additional actions necessary or appropriate to carry out the purposes of this
                  chapter.
                      (2) (a) Funds budgeted and expended shall accrue from rates paid by the covered
                  employers and covered individuals.
                      (b) Administrative costs shall be approved by the board and reported to the governor and
                  the Legislature.
                      (3) The [Department] Division of Human Resource Management shall include the
                  benefit adjustments described in Subsection (1)(j) in the total compensation plan recommended
                  to the governor required under Subsection 67-19-12 (6)(a).
                      Section 4. Section 53-6-104 is amended to read:
                       53-6-104. Appointment of director of division -- Qualifications -- Appointment of
                  employees -- Term of office -- Compensation.
                      (1) The commissioner, upon recommendation of the council and with the approval of the
                  governor, shall appoint a director of the division.


                      (2) The director is the executive and administrative head of the division and shall be
                  experienced in administration and possess additional qualifications as determined by the
                  commissioner and as provided by law.
                      (3) The director shall be a full-time officer of the state.
                      (4) The director may appoint deputies, consultants, clerks, and other employees from
                  eligibility lists authorized by the [Department] Division of Human Resource Management.
                      (5) The director may be removed from his position at the will of the commissioner.
                      (6) The director shall receive compensation as provided by Title 67, Chapter 19, Utah
                  State Personnel Management Act.
                      Section 5. Section 53A-24-114 is amended to read:
                       53A-24-114. Governor's Committee on Employment of People with Disabilities.
                      (1) There is created the Governor's Committee on Employment of People with
                  Disabilities.
                      (2) (a) The State Board of Education shall appoint at least twelve members to the
                  committee.
                      (b) The State Board of Education shall ensure that the committee includes members from
                  the public and private sectors who represent:
                      (i) business and industry;
                      (ii) individuals with disabilities and their advocates;
                      (iii) job training and placement;
                      (iv) [state agencies] administrative subunits of the state, such as the [Department]
                  Division of Human Resource Management, the Department of Workforce Services, Public
                  Education, Higher Education, and the Department of Human Services;
                      (v) labor;
                      (vi) veterans;
                      (vii) medical;
                      (viii) health;
                      (ix) insurance;


                      (x) media; and
                      (xi) the general public.
                      (c) (i) Except as provided in Subsection (2)(c)(ii), the State Board of Education shall
                  appoint committee members to serve four-year terms.
                      (ii) In making the initial appointments to the committee, the State Board of Education
                  shall appoint approximately 1/2 of the members to two-year terms and 1/2 of the members to
                  four-year terms.
                      (d) Committee members shall serve until their successors are appointed and qualified.
                      (e) The State Board of Education shall fill any vacancy that occurs on the committee for
                  any reason by appointing a person according to the procedures of this section for the unexpired
                  term of the vacated member.
                      (f) The State Board of Education shall select a chair from the membership.
                      (g) Seven members of the committee are a quorum for the transaction of business.
                      (3) (a) The committee shall:
                      (i) promote employment opportunities for individuals with disabilities;
                      (ii) serve as the designated state liaison to the President's Committee on Employment of
                  People with Disabilities;
                      (iii) provide training and technical assistance to employers in implementing the
                  Americans with Disabilities Act;
                      (iv) develop and disseminate appropriate information through workshops, meetings, and
                  other requests in response to needs to employers and others regarding employment of individuals
                  with disabilities;
                      (v) establish contacts with various community representatives to identify and resolve
                  barriers to full participation in employment and community life;
                      (vi) formally recognize exemplary contributions in the areas of employment, job
                  placement, training, rehabilitation, support services, medicine, media or public relations, and
                  personal achievements made by individuals with disabilities;
                      (vii) advise, encourage, and motivate individuals with disabilities who are preparing for


                  or seeking employment to reach their full potential as qualified employees;
                      (viii) advocate for policies and practices that promote full and equal rights for individuals
                  with disabilities;
                      (ix) advise the State Board of Education and the governor on issues that affect
                  employment and other requests for information on disability issues;
                      (x) prepare an annual report on the progress, accomplishments, and future goals of the
                  committee and present the report to the State Board of Education and the governor; and
                      (xi) establish and maintain a cooperative liaison between the governor's office, the
                  executive director of the committee, and the executive director of the Utah State Office of
                  Rehabilitation to fulfill the committee's purpose.
                      (b) The committee may, by following the procedures and requirements of Title 63,
                  Chapter 38e, Federal Funds Procedures, receive and accept federal funds, and may receive and
                  accept state funds, private gifts, donations, and funds from any source to carry out its purposes.
                      (4) The director of the State Office of Rehabilitation shall appoint a person to staff the
                  committee.
                      Section 6. Section 53C-1-201 is amended to read:
                       53C-1-201. Creation of administration -- Purpose -- Director.
                      (1) (a) There is established within state government the School and Institutional Trust
                  Lands Administration.
                      (b) The administration shall manage all school and institutional trust lands and assets
                  within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation of
                  Revenue from Trust Lands, and Section 51-7-12 .
                      (2) The administration is an independent state agency and not a division of any other
                  department.
                      (3) (a) It is subject to the usual legislative and executive department controls except as
                  provided in this Subsection (3).
                      (b) (i) The director may make rules as approved by the board that allow the
                  administration to classify a business proposal submitted to the administration as protected under


                  Section 63-2-304 , for as long as is necessary to evaluate the proposal.
                      (ii) The administration shall return the proposal to the party who submitted the proposal,
                  and incur no further duties under Title 63, Chapter 2, Government Records Access and
                  Management Act, if the administration determines not to proceed with the proposal.
                      (iii) The administration shall classify the proposal pursuant to law if it decides to proceed
                  with the proposal.
                      (iv) Section 63-2-403 does not apply during the review period.
                      (c) The director shall make rules in compliance with Title 63, Chapter 46a, Utah
                  Administrative Rulemaking Act, except that the director, with the board's approval, may
                  establish a procedure for the expedited approval of rules, based on written findings by the
                  director showing:
                      (i) the changes in business opportunities affecting the assets of the trust;
                      (ii) the specific business opportunity arising out of those changes which may be lost
                  without the rule or changes to the rule;
                      (iii) the reasons the normal procedures under Section 63-46a-4 cannot be met without
                  causing the loss of the specific opportunity;
                      (iv) approval by at least five board members; and
                      (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
                  reasons and justifications for its findings, with the Division of Administrative Rules and notified
                  interested parties as provided in Subsection 63-46a-4 (7).
                      (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
                  Management Act, except as provided in this Subsection (3)(d).
                      (ii) The board may approve, upon recommendation of the director, that exemption for
                  specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
                  the administration to efficiently fulfill its responsibilities under the law. The director shall
                  consult with the director of the [Department] Division of Human Resource Management prior to
                  making such a recommendation.
                      (iii) The positions of director, deputy director, associate director, assistant director, legal


                  counsel appointed under Section 53C-1-305 , administrative assistant, and public affairs officer
                  are exempt under Subsections 67-19-12 (2) and 67-19-15 (1).
                      (iv) Salaries for exempted positions, except for the director, shall be set by the director,
                  after consultation with the director of the [Department] Division of Human Resource
                  Management, within ranges approved by the board. The board and director shall consider
                  salaries for similar positions in private enterprise and other public employment when setting
                  salary ranges.
                      (v) The board may create an annual incentive and bonus plan for the director and other
                  administration employees designated by the board, based upon the attainment of financial
                  performance goals and other measurable criteria defined and budgeted in advance by the board.
                      (e) The administration shall comply with Title 63, Chapter 56, Utah Procurement Code,
                  except where the board approves, upon recommendation of the director, exemption from the
                  Utah Procurement Code, and simultaneous adoption of rules under Title 63, Chapter 46a, Utah
                  Administrative Rulemaking Act, for procurement, which enable the administration to efficiently
                  fulfill its responsibilities under the law.
                      (f) (i) The board and director shall review the exceptions under this Subsection (3) and
                  make recommendations for any modification, if required, which the Legislature would be asked
                  to consider during its annual general session.
                      (ii) The board and director may include in their recommendations any other proposed
                  exceptions from the usual executive and legislative controls the board and director consider
                  necessary to accomplish the purpose of this title.
                      (4) The administration is managed by a director of school and institutional trust lands
                  appointed by a majority vote of the board of trustees with the consent of the governor.
                      (5) (a) The board of trustees shall provide policies for the management of the
                  administration and for the management of trust lands and assets.
                      (b) The board shall provide policies for the ownership and control of Native American
                  remains that are discovered or excavated on school and institutional trust lands in consultation
                  with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,


                  Native American Grave Protection and Repatriation Act. The director may make rules in
                  accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, to implement
                  policies provided by the board regarding Native American remains.
                      (6) In connection with joint ventures for the development of trust lands and minerals
                  approved by the board under Sections 53C-1-303 and 53C-2-401 , the administration may become
                  a member of a limited liability company under Title 48, Chapter 2c, Utah Revised Limited
                  Liability Company Act, and is considered a person under Section 48-2c-102 .
                      Section 7. Section 54-1-6 is amended to read:
                       54-1-6. Employment of staff -- Status and compensation -- Employees not to be
                  parties or witnesses and may not appeal commission decisions.
                      (1) The annual budget of the Public Service Commission shall provide sufficient funds
                  for the commission to hire, develop, and organize an advisory staff to assist the commission in
                  performing the powers, duties, and functions committed to it by statute.
                      (a) The commission may hire:
                      (i) economists, accountants, engineers, statisticians, lawyers, law clerks, and other
                  professional and technical experts;
                      (ii) court reporters, transcribers of tape recordings, clerks, secretaries, and other
                  administrative and support staff;
                      (iii) additional experts as required for a particular matter; and
                      (iv) administrative law judges, who shall be members of the Utah State Bar, and
                  constitute a separate organizational unit reporting directly to the commission.
                      (b) The commission may provide for funds in the annual budget to acquire suitable
                  electronic recording equipment to maintain a verbatim record of proceedings before the
                  commission, any commissioner, or any administrative law judge.
                      (2) (a) With the exception of clerical workers in nonconfidential positions, all staff of the
                  Public Service Commission are exempt employees under the State Personnel Management Act
                  and serve at the pleasure of the commission.
                      (b) Administrative law judges are exempt employees under the State Personnel


                  Management Act and may only be removed from office upon due notice and by a unanimous
                  vote of the commission.
                      (c) (i) The [Department] Division of Human Resource Management shall determine pay
                  schedules using standard techniques for determining compensation.
                      (ii) The [Department] Division of Human Resource Management may make its
                  compensation determinations based upon compensation practices common to utility companies
                  throughout the United States.
                      (3) (a) The staff or other employees of the commission may not appear as parties or
                  witnesses in any proceeding before the commission, any commissioner, or any administrative law
                  judge.
                      (b) The staff or other employees of the commission may not appeal any finding, order, or
                  decision of the commission.
                      Section 8. Section 54-4a-3 is amended to read:
                       54-4a-3. Budget of division -- Employment of personnel.
                      (1) The annual budget of the Division of Public Utilities shall provide sufficient funds
                  for the division to hire, develop, and organize a technical and professional staff to perform the
                  duties, powers, and responsibilities committed to it by statute.
                      (2) The division director may:
                      (a) hire economists, accountants, engineers, inspectors, statisticians, lawyers, law clerks,
                  and other technical and professional experts as may be required;
                      (b) retain additional experts as required for a particular matter, but only to the extent that
                  it is necessary to supplement division staff in order to fulfill its duties; and
                      (c) employ necessary administrative and support staff.
                      (3) (a) The [Department] Division of Human Resource Management shall determine pay
                  schedules using standard techniques for determining compensation.
                      (b) The [Department] Division of Human Resource Management may make its
                  compensation determinations based upon compensation common to utility companies throughout
                  the United States.


                      Section 9. Section 61-1-18 is amended to read:
                       61-1-18. Division of Securities established -- Director -- Appointment -- Functions
                  -- Investigators.
                      (1) (a) There is established within the Department of Commerce a Division of Securities.
                      (b) The division shall be under the direction and control of a director, appointed by the
                  executive director with the governor's approval.
                      (c) The director shall be responsible for the administration and enforcement of this
                  chapter.
                      (d) The director shall hold office at the pleasure of the governor.
                      (2) The director, with the approval of the executive director, may employ such staff as
                  necessary to discharge the duties of the division at salaries to be fixed by the director according
                  to standards established by the [Department] Division of Human Resource Management.
                      (3) An investigator employed pursuant to Subsection (2) who meets the training
                  requirements of Subsection 53-13-105 (3) may be designated a special function officer, as defined
                  in Section 53-13-105 , by the director, but is not eligible for retirement benefits under the Public
                  Safety Employee's Retirement System.
                      Section 10. Section 62A-15-613 is amended to read:
                       62A-15-613. Appointment of superintendent -- Qualifications -- Powers and
                  responsibilities.
                      (1) The director, with the advice and consent of the board and the approval of the
                  executive director, shall appoint a superintendent of the state hospital, who shall hold office at
                  the will of the director.
                      (2) The superintendent shall have a bachelor's degree from an accredited university or
                  college, be experienced in administration, and be knowledgeable in matters concerning mental
                  health.
                      (3) Subject to the rules of the board, the superintendent has general responsibility for the
                  buildings, grounds, and property of the state hospital. The superintendent shall appoint, with the
                  approval of the director, as many employees as necessary for the efficient and economical care


                  and management of the state hospital, and shall fix their compensation and administer personnel
                  functions according to the standards of the [Department] Division of Human Resource
                  Management.
                      Section 11. Section 63-5b-102 is amended to read:
                       63-5b-102. Definitions.
                      (1) (a) "Absent" means:
                      (i) not physically present or not able to be communicated with for 48 hours; or
                      (ii) for local government officers, as defined by local ordinances.
                      (b) "Absent" does not include a person who can be communicated with via telephone,
                  radio, or telecommunications.
                      (2) "Attack" means a nuclear, conventional, biological, or chemical warfare action
                  against the United States of America or this state.
                      (3) "Department" means the Department of Administrative Services, the Department of
                  Agriculture and Food, the Alcoholic Beverage Control Commission, the Department of
                  Commerce, the Department of Community and Economic Development, the Department of
                  Corrections, the Department of Environmental Quality, the Department of Financial Institutions,
                  the Department of Health, [the Department of Human Resource Management,] the Department of
                  Workforce Services, the Labor Commission, the National Guard, the Department of Insurance,
                  the Department of Natural Resources, the Department of Public Safety, the Public Service
                  Commission, the Department of Human Services, the State Tax Commission, the Department of
                  Transportation, any other major administrative subdivisions of state government, the State Board
                  of Education, the State Board of Regents, the Utah Housing Corporation, the Utah Technology
                  Finance Corporation, the Workers' Compensation Fund, the State Retirement Board, and each
                  institution of higher education within the system of higher education.
                      (4) "Disaster" means a situation causing, or threatening to cause, widespread damage,
                  social disruption, or injury or loss of life or property resulting from attack, internal disturbance,
                  natural phenomenon, or technological hazard.
                      (5) "Division" means the Division of Emergency Services and Homeland Security


                  established in Title 53, Chapter 2, Emergency Services and Homeland Security Act.
                      (6) "Emergency interim successor" means a person designated by this chapter to exercise
                  the powers and discharge the duties of an office when the person legally exercising the powers
                  and duties of the office is unavailable.
                      (7) "Executive director" means the person with ultimate responsibility for managing and
                  overseeing the operations of each department, however denominated.
                      (8) "Internal disturbance" means a riot, prison break, disruptive terrorism, or strike.
                      (9) "Natural phenomenon" means any earthquake, tornado, storm, flood, landslide,
                  avalanche, forest or range fire, drought, epidemic, or other catastrophic event.
                      (10) (a) "Office" includes all state and local offices, the powers and duties of which are
                  defined by constitution, statutes, charters, optional plans, ordinances, articles, or by-laws.
                      (b) "Office" does not include the office of governor or the legislative or judicial offices.
                      (11) "Place of governance" means the physical location where the powers of an office are
                  being exercised.
                      (12) "Political subdivision" includes counties, cities, towns, townships, districts,
                  authorities, and other public corporations and entities whether organized and existing under
                  charter or general law.
                      (13) "Political subdivision officer" means a person holding an office in a political
                  subdivision.
                      (14) "State officer" means the attorney general, the state treasurer, the state auditor, and
                  the executive director of each department.
                      (15) "Technological hazard" means any hazardous materials accident, mine accident,
                  train derailment, air crash, radiation incident, pollution, structural fire, or explosion.
                      (16) "Unavailable" means:
                      (a) absent from the place of governance during a disaster that seriously disrupts normal
                  governmental operations, whether or not that absence or inability would give rise to a vacancy
                  under existing constitutional or statutory provisions; or
                      (b) as otherwise defined by local ordinance.


                      Section 12. Section 63-13-2 is amended to read:
                       63-13-2. Legal holidays -- Personal preference day -- Governor authorized to
                  declare additional days.
                      (1) (a) The following-named days are legal holidays in this state:
                      (i) every Sunday;
                      (ii) January 1, called New Year's Day;
                      (iii) the third Monday of January, called Dr. Martin Luther King, Jr. Day;
                      (iv) the third Monday of February, called Washington and Lincoln Day;
                      (v) the last Monday of May, called Memorial Day;
                      (vi) July 4, called Independence Day;
                      (vii) July 24, called Pioneer Day;
                      (viii) the first Monday of September, called Labor Day;
                      (ix) the second Monday of October, called Columbus Day;
                      (x) November 11, called Veterans' Day;
                      (xi) the fourth Thursday of November, called Thanksgiving Day;
                      (xii) December 25, called Christmas; and
                      (xiii) all days which may be set apart by the President of the United States, or the
                  governor of this state by proclamation as days of fast or thanksgiving.
                      (b) If any of the holidays under Subsection (1)(a), except the first mentioned, namely
                  Sunday, falls on Sunday, then the following Monday shall be the holiday.
                      (c) If any of the holidays under Subsection (1)(a) falls on Saturday the preceding Friday
                  shall be the holiday.
                      (d) Each employee may select one additional day, called Personal Preference Day, to be
                  scheduled pursuant to rules adopted by the [Department] Division of Human Resource
                  Management.
                      (2) (a) Whenever in his opinion extraordinary conditions exist justifying the action, the
                  governor may:
                      (i) declare, by proclamation, legal holidays in addition to those holidays under


                  Subsection (1); and
                      (ii) limit the holidays to certain classes of business and activities to be designated by him.
                      (b) A holiday may not extend for a longer period than 60 consecutive days.
                      (c) Any holiday may be renewed for one or more periods not exceeding 30 days each as
                  the governor may consider necessary, and any holiday may, by like proclamation, be terminated
                  before the expiration of the period for which it was declared.
                      Section 13. Section 63-34-12 is amended to read:
                       63-34-12. Approval prerequisite to volunteer service -- Rules and regulations.
                      (1) Volunteers may not donate any service to the Department of Natural Resources or its
                  divisions unless and until the work program in which volunteers would serve has first been
                  approved, in writing, by the executive director of the Department of Natural Resources and the
                  [Department] director of the Division of Human Resource Management.
                      (2) Volunteer services shall comply with any rules adopted by the [Department] Division
                  of Human Resource Management relating to that service that are not inconsistent with the
                  provisions of Sections 63-34-9 through 63-34-12 .
                      Section 14. Section 63A-1-109 is amended to read:
                       63A-1-109. Divisions of department -- Administration.
                      (1) The department shall be composed of the following divisions:
                      (a) administrative rules;
                      (b) archives and records;
                      (c) facilities construction and management;
                      (d) finance;
                      (e) fleet operations;
                      (f) information technology services;
                      (g) office of state debt collection;
                      (h) state purchasing and general services;
                      (i) risk management; [and]
                      (j) office of child welfare parental defense[.]; and


                      (k) human resource management.
                      (2) Each division shall be administered and managed by a division director.
                      Section 15. Section 63A-9-501 is amended to read:
                       63A-9-501. Complaints about misuse or illegal operation of state vehicles --
                  Disposition.
                      (1) The division shall refer complaints from the public about misuse or illegal operation
                  of state vehicles to the agency that is the owner or lessor of the vehicle.
                      (2) Each agency head or his designee shall investigate all complaints about misuse or
                  illegal operation of state vehicles and shall discipline each employee that is found to have
                  misused or illegally operated a vehicle by following the procedures set forth in the rules adopted
                  by the [Department] Division of Human Resource Management as authorized by Section
                  67-19-18 .
                      (3) (a) Each agency shall report the findings of each investigation conducted as well as
                  any action taken as a result of the investigation to the directors of the Divisions of Fleet
                  Operations and Risk Management.
                      (b) Misuse or illegal operation of state vehicles may result in suspension or revocation of
                  state vehicle driving privileges as governed in rule.
                      Section 16. Section 63A-9-801 is amended to read:
                       63A-9-801. State surplus property program -- Definitions -- Administration.
                      (1) As used in this section:
                      (a) "Agency" means:
                      (i) the Utah Departments of Administrative Services, Agriculture, Alcoholic Beverage
                  Control, Commerce, Community and Economic Development, Corrections, Workforce Services,
                  Health, [Human Resource Management,] Human Services, Insurance, Natural Resources, Public
                  Safety, and Transportation and the Labor Commission;
                      (ii) the Utah Offices of the Auditor, Attorney General, Court Administrator, Crime
                  Victim Reparations, Rehabilitation, and Treasurer;
                      (iii) the Public Service Commission and State Tax Commission;


                      (iv) the State Boards of Education, Pardons and Parole, and Regents;
                      (v) the Career Service Review Board;
                      (vi) other state agencies designated by the governor;
                      (vii) the legislative branch, the judicial branch, and the State Board of Regents; and
                      (viii) an institution of higher education, its president, and its board of trustees for
                  purposes of Section 63A-9-802 .
                      (b) "Division" means the Division of Fleet Operations.
                      (c) "Information technology equipment" means any equipment that is designed to
                  electronically manipulate, store, or transfer any form of data.
                      (d) "Inventory property" means property in the possession of the division that is available
                  for purchase by an agency or the public.
                      (e) "Judicial district" means the geographic districts established by Section 78-1-2.1 .
                      (f) (i) "Surplus property" means property purchased by, seized by, or donated to, an
                  agency that the agency wishes to dispose of.
                      (ii) "Surplus property" does not mean real property.
                      (g) "Transfer" means transfer of surplus property without cash consideration.
                      (2) (a) The division shall make rules establishing a state surplus property program that
                  meets the requirements of this chapter by following the procedures and requirements of Title 63,
                  Chapter 46a, Utah Administrative Rulemaking Act.
                      (b) Those rules shall include:
                      (i) a requirement prohibiting the transfer of surplus property from one agency to another
                  agency without written approval from the division;
                      (ii) procedures and requirements governing division administration requirements that an
                  agency must follow;
                      (iii) requirements governing purchase priorities;
                      (iv) requirements governing accounting, reimbursement, and payment procedures;
                      (v) procedures for collecting bad debts;
                      (vi) requirements and procedures for disposing of firearms;


                      (vii) the elements of the rates or other charges assessed by the division for services and
                  handling;
                      (viii) procedures governing the timing and location of public sales of inventory property;
                  and
                      (ix) procedures governing the transfer of information technology equipment by state
                  agencies directly to public schools.
                      (c) The division shall report all transfers of information technology equipment by state
                  agencies to public schools to the Utah Technology Commission and to the Legislative Interim
                  Education Committee at the end of each fiscal year.
                      (3) In creating and administering the program, the division shall:
                      (a) when conditions, inventory, and demand permit:
                      (i) establish facilities to store inventory property at geographically dispersed locations
                  throughout the state; and
                      (ii) hold public sales of property at geographically dispersed locations throughout the
                  state;
                      (b) establish, after consultation with the agency requesting the sale of surplus property,
                  the price at which the surplus property shall be sold; and
                      (c) transfer proceeds arising from the sale of state surplus property to the agency
                  requesting the sale in accordance with Title 63, Chapter 38, Budgetary Procedures Act, less an
                  amount established by the division by rule to pay the costs of administering the surplus property
                  program.
                      (4) Unless specifically exempted from this chapter by explicit reference to this chapter,
                  each state agency shall dispose of and acquire surplus property only by participating in the
                  division's program.
                      Section 17. Section 67-5-7 is amended to read:
                       67-5-7. Establishment of career service system.
                      (1) The purpose of this chapter is to establish a career service system for attorneys
                  employed by the Office of the Attorney General that will attract and retain attorneys of proven


                  ability and experience who will devote their full time to the service of the state.
                      (2) The Office of the Attorney General may adopt rules necessary to implement this
                  chapter, including personnel and work rules different from those promulgated by the
                  [Department] Division of Human Resource Management.
                      Section 18. Section 67-5-9 is amended to read:
                       67-5-9. Reassignment of career status attorneys -- Additional compensation for
                  managerial assignments -- Employment of special assistant attorneys general --
                  Termination of attorneys -- Salary increases.
                      This chapter does not affect the authority of the attorney general to:
                      (1) assign and reassign attorneys in a career status to different positions on his staff. The
                  salary of an attorney reassigned to a different position shall not be decreased by reason of
                  reassignment; except that if the attorney reassigned occupies the position of deputy attorney
                  general, the salary may be reduced by not more than 15% upon the assignment to a different
                  position;
                      (2) develop, with the assistance of the [Department] Division of Human Resource
                  Management, a plan for additional compensation for career status attorneys who accept
                  managerial assignments within the office. The provisions of Subsection (1) notwithstanding, the
                  attorney general may discontinue any additional compensation if the attorney no longer holds a
                  managerial assignment. Additional compensation provided under this section shall be
                  determined by the attorney general pursuant to the plan developed by the Office of the Attorney
                  General. At such time as the attorney no longer holds a managerial assignment, and the attorney
                  general decides to discontinue any additional compensation, the reduction may not place the
                  attorney at a salary below where the attorney would be through normal salary increases if the
                  attorney had not been in a managerial position;
                      (3) employ special assistant attorneys general, who shall not be subject to this chapter, to
                  represent the state in particular lawsuits or to handle particular legal matters for the state;
                      (4) terminate the employment of any attorney employed by the Office of the Attorney
                  General who is not in a career service status;


                      (5) establish the salary or determine salary increases of any attorney under this chapter.
                      Section 19. Section 67-5-12 is amended to read:
                       67-5-12. Dismissal of career status attorneys -- Causes -- Procedure -- Retention
                  roster -- Reappointment register.
                      (1) (a) Attorneys in a career status may be dismissed only:
                      (i) to advance the good of public service;
                      (ii) where funds have expired or work no longer exists; or
                      (iii) for causes such as dishonesty, inefficiency, insubordination, disloyalty to the orders
                  of a superior, misfeasance, malfeasance, or nonfeasance in office.
                      (b) Attorneys in career status may not be dismissed for reasons of race, national origin,
                  religion, or political affiliation.
                      (2) Except in aggravated cases of misconduct, no attorney in a career status may be
                  demoted or dismissed without the following procedures:
                      (a) The attorney general shall notify the attorney of the reasons for demotion or
                  dismissal.
                      (b) The attorney shall have an opportunity to reply and have the reply considered by the
                  attorney general.
                      (c) The attorney shall have an opportunity to be heard by the attorney general or his
                  designated representatives.
                      (d) Following a hearing, an attorney may be demoted or dismissed if the attorney general
                  finds adequate reason.
                      (e) If the attorney general finds that retention of an attorney would endanger the peace
                  and safety of others or pose a grave threat to the public interest, the attorney may be summarily
                  suspended pending administrative hearings and a review by the Career Service Review Board.
                      (3) (a) An attorney in a career status who is aggrieved by a decision of the attorney
                  general to either dismiss or demote may appeal the decision to the Career Service Review Board
                  or its hearing officers by following the procedures in Title 67, Chapter 19a, Grievance and
                  Appeal Procedures.


                      (b) Matters other than dismissal or demotion may be appealed to and reviewed by the
                  attorney general or a designated representative whose decision is final with no right of appeal to
                  the Career Service Review Board or its hearing officers.
                      (4) Disciplinary actions shall be supported by credible evidence, but the normal rules of
                  evidence in courts of law do not apply in hearings before the attorney general or the Career
                  Service Review Board or its hearing officers.
                      (5) (a) Reductions in force required by reinstatement of an attorney under Section
                  67-5-11 , inadequate funds, change of workload, or lack of work shall be governed by a retention
                  roster to be maintained by the director of the [Department] Division of Human Resource
                  Management and the requirements of this Subsection (5).
                      (b) Attorneys not in a career status shall be separated before any attorney in a career
                  status.
                      (c) Retention points for each attorney in a career status shall be based on [his] the
                  attorney's seniority in service as an attorney in the Office of the Attorney General, including any
                  military service fulfilled subsequent to [his] the attorney's original appointment.
                      (d) Attorneys in career status shall be separated in the order of their retention points, the
                  attorney with the lowest points to be discharged first.
                      (e) Those attorneys who are serving in other positions under Section 67-5-11 shall:
                      (i) have retention points determined as if they were working for the office; and
                      (ii) be separated in the order of the retention points as if they were working in the Office
                  of the Attorney General.
                      (f) An attorney in a career status who is separated by reason of a reduction in force shall
                  be:
                      (i) placed on a reappointment register kept by the director of the [Department] Division
                  of Human Resource Management for one year; and
                      (ii) offered reappointment to a position in the Office of the Attorney General before any
                  attorney not having a career status is appointed.
                      Section 20. Section 67-8-3 is amended to read:


                       67-8-3. Compensation plan for appointive officers -- Exceptions -- Legislative
                  approval -- Career status attorneys.
                      (1) (a) The director of the [Department] Division of Human Resource Management,
                  based upon recommendations of the Executive and Judicial Compensation Commission shall,
                  before October 31 of each year, recommend to the governor a compensation plan for appointed
                  officers of the state except those officers whose compensation is set under Section 49-11-203 ,
                  53A-1-301 , 53B-1-105 , or 53C-1-301 .
                      (b) The plan shall include salaries and wages, paid leave, group insurance plans,
                  retirement programs, and any other benefits that may be offered to state officers.
                      (2) The governor shall include in each annual budget proposal to the Legislature specific
                  recommendations on compensation for those appointed state officers in Subsection (1).
                      (3) (a) After consultation with the attorney general, the director of the [Department]
                  Division of Human Resource Management shall place career status attorneys on a state salary
                  schedule at a range comparable with salaries paid attorneys in private and other public
                  employment.
                      (b) The attorney general and the director shall take into consideration the experience of
                  the attorney, length of service with the Office of the Attorney General, quality of performance,
                  and responsibility involved in legal assignments.
                      (c) The attorney general and the director shall periodically adjust the salary levels for
                  attorneys in a career status to reasonably compensate them for full-time employment and the
                  restrictions placed on the private practice of law.
                      Section 21. Section 67-8-5 is amended to read:
                       67-8-5. Duties of commission -- Salary recommendations.
                      (1) (a) The commission shall recommend to the Legislature salaries for:
                      (i) the governor, the lieutenant governor, the attorney general, the state auditor, and the
                  state treasurer; and
                      (ii) justices of the Supreme Court and judges of the constitutional and statutory courts of
                  record.


                      (b) The commission shall recommend to the Legislature salary ranges for the other state
                  officers referred to in Article VII, Section 18, and enumerated in Title 67, Chapter 22, State
                  Officer Compensation.
                      (2) As used in this section and for the purposes of compensation in Title 67, Chapter 22,
                  State Officer Compensation, "state officer" means an individual at the executive level in state
                  government. The term includes:
                      (a) the governor, the lieutenant governor, the attorney general, the state auditor, and the
                  state treasurer;
                      (b) justices of the Supreme Court and judges of all constitutional and statutory courts of
                  record; and
                      (c) full-time commissioners and executive directors of executive branch departments
                  appointed by the governor or with his approval, who report directly to the governor, and who are
                  enumerated in Section 67-22-2 .
                      (3) The commission shall:
                      (a) make studies and formulate recommendations concerning the wage and salary
                  classification plan based upon factors such as educational requirements, experience,
                  responsibility, accountability for funds and staff, comparisons with wages paid in other
                  comparable public and private employment within this state, and other states similarly situated,
                  and any other factors generally used in similar comprehensive wage and salary classification
                  plans so that the plan and its administration reflect current conditions at all times;
                      (b) consult and advise with, and make recommendation to, the [Department] Division of
                  Human Resource Management regarding the plan, its administration, and the position of any
                  officer covered by the plan;
                      (c) submit to the Executive Appropriations Committee not later than 60 days before
                  commencement of each annual general session:
                      (i) a report briefly summarizing its activities during the calendar year immediately
                  preceding the session;
                      (ii) recommendations concerning revisions, modifications, or changes, if any, which


                  should be made in the plan, its administration, or in the classification of any officer under the
                  plan; and
                      (iii) specific recommendations regarding the office of governor, lieutenant governor,
                  attorney general, state auditor, and state treasurer concerning adjustments, if any, that should be
                  made in the salary or other emoluments of office so that all executive and judicial officers,
                  elected or appointed, receive equitable and consistent treatment regardless of whether salaries are
                  fixed by the Legislature or by the [Department] Division of Human Resource Management; and
                      (d) conduct a comprehensive review of judicial salary levels and make recommendations
                  for judicial salaries in a report to the president of the Senate, the speaker of the House of
                  Representatives, and the governor by November 1, prior to the convening of the general session
                  of the Legislature in each odd-numbered year.
                      (4) (a) The recommendation under Subsection (3)(d) shall be based upon consultation
                  with the Judicial Council and upon consideration for the career status of judges. It shall be based
                  upon comparisons with salaries paid in other states and in comparable public and private
                  employment within this state.
                      (b) In even-numbered years, the commission shall update its prior report, based upon the
                  Consumer Price Index and other relevant factors, and shall forward its updated recommendations
                  as prescribed in this section.
                      (5) The Judicial Council shall cooperate with the commission in providing information
                  on the judicial branch of government and on the individual levels of court as requested. The
                  director of personnel from the Office of the Court Administrator shall provide the salary
                  comparison data referred to in this section to the legislative fiscal analyst and shall provide other
                  staff assistance and support as requested by the legislative fiscal analyst.
                      Section 22. Section 67-19-3 is amended to read:
                       67-19-3. Definitions.
                      As used in this chapter:
                      (1) "Agency" means any department or unit of Utah state government with authority to
                  employ personnel.


                      (2) "Career service" means positions under Schedule B as defined in Section 67-19-15 .
                      (3) "Career service employee" means an employee who has successfully completed a
                  probationary period of service in a position covered by the career service.
                      (4) "Career service status" means status granted to employees who successfully complete
                  probationary periods for competitive career service positions.
                      (5) "Classified service" means those positions subject to the classification and
                  compensation provisions of Section 67-19-12 .
                      (6) "Controlled substance" means controlled substance as defined in Section 58-37-2 .
                      [(7) "Department" means the Department of Human Resource Management.]
                      (7) "Director" means the director of the Division of Human Resource Management.
                      (8) "Disability" means a physical or mental disability as defined and protected under the
                  Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
                      (9) "Division" means the Division of Human Resource Management.
                      [(9)] (10) "Employee" means any individual in a paid status covered by the career service
                  or classified service provisions of this chapter.
                      [(10)] (11) "Examining instruments" means written or other types of proficiency tests.
                      [(11)] (12) "Executive director," except where otherwise specified, means the executive
                  director of the [department] Department of Administrative Services.
                      [(12)] (13) "Market comparability adjustment" means a salary range adjustment
                  determined necessary through a market survey of salary ranges of a reasonable cross section of
                  comparable benchmark positions in private and public employment.
                      [(13)] (14) "Probationary employee" means an employee serving a probationary period in
                  a career service position but who does not have career service status.
                      [(14)] (15) "Probationary period" means that period of time determined by the
                  department that an employee serves in a career service position as part of the hiring process
                  before career service status is granted to the employee.
                      [(15)] (16) "Probationary status" means the status of an employee between the
                  employee's hiring and the granting of career service status.


                      [(16)] (17) "Total compensation" means salaries and wages, bonuses, paid leave, group
                  insurance plans, retirement, and all other benefits offered to state employees as inducements to
                  work for the state.
                      Section 23. Section 67-19-3.1 is amended to read:
                       67-19-3.1. Principles guiding interpretation of chapter and adoption of rules.
                      (1) The [department] division shall establish a career service system designed in a
                  manner that will provide for the effective implementation of the following merit principles:
                      (a) recruiting, selecting, and advancing employees on the basis of their relative ability,
                  knowledge, and skills, including open consideration of qualified applicants for initial
                  appointment;
                      (b) providing for equitable and competitive compensation;
                      (c) training employees as needed to assure high-quality performance;
                      (d) retaining employees on the basis of the adequacy of their performance and separating
                  employees whose inadequate performance cannot be corrected;
                      (e) fair treatment of applicants and employees in all aspects of [personnel] human
                  resource administration without regard to race, color, religion, sex, national origin, political
                  affiliation, age, or disability, and with proper regard for their privacy and constitutional rights as
                  citizens;
                      (f) providing information to employees regarding their political rights and the prohibited
                  practices under the Hatch Act; and
                      (g) providing a formal procedure for processing the appeals and grievances of employees
                  without discrimination, coercion, restraint, or reprisal.
                      (2) The principles in Subsection (1) shall govern interpretation and implementation of
                  this chapter.
                      Section 24. Section 67-19-5 is amended to read:
                       67-19-5. Division of Human Resource Management created -- Director --
                  Compensation -- Staff.
                      (1) There is created the [Department] Division of Human Resource Management within


                  the Department of Administrative Services.
                      (2) (a) The [department] division shall be administered by a director appointed by the
                  governor with the consent of the Senate.
                      (b) The director shall be a person with experience in [personnel] human resource
                  management and shall be accountable to the [governor] executive director for his performance in
                  office.
                      [(c) The governor shall establish the director's salary within the salary range fixed by the
                  Legislature in Title 67, Chapter 22, State Officer Compensation.]
                      (3) The director may[: (a)] appoint a personal secretary and, with the approval of the
                  [governor] executive director, a deputy director, both of whom shall be exempt from career
                  service[; and].
                      [(b) appoint division directors and program managers who may be career service
                  exempt.]
                      (4) (a) The director shall have full responsibility and accountability for the administration
                  of the statewide human resource management system.
                      (b) Except as provided in Section 67-19-6.1 , an agency may not perform human resource
                  functions without the consent of the director.
                      (5) Statewide human resource management rules adopted by the Division of Human
                  Resource Management in accordance with Title 63, Chapter 46a, Utah Administrative
                  Rulemaking Act, shall take precedence if there is a conflict with department rules, policies, or
                  practices.
                      Section 25. Section 67-19-6 is amended to read:
                       67-19-6. Responsibilities of director.
                      (1) The director shall:
                      (a) develop, implement, and administer a statewide program of [personnel] human
                  resource management [for state employees] that will:
                      (i) aid in the efficient execution of public policy;
                      (ii) foster careers in public service for qualified employees; and


                      (iii) render assistance to state agencies in performing their missions;
                      (b) design and administer the state pay plan;
                      (c) design and administer the state classification system and procedures for determining
                  schedule assignments;
                      (d) design and administer the state recruitment and selection system;
                      (e) monitor agency human resource practices to determine compliance with federal law,
                  state law, and state human resource rules, including equal employment opportunity;
                      (f) maintain central personnel records;
                      [(b)] (g) perform those functions necessary to implement this chapter unless otherwise
                  assigned or prohibited;
                      [(c)] (h) perform duties assigned by the governor or statute;
                      [(d)] (i) adopt rules for [personnel] human resource management according to the
                  procedures of Title 63, Chapter 46a, Utah Administrative Rulemaking Act;
                      [(e)] (j) establish and maintain a management information system that will furnish the
                  governor, the Legislature, and agencies with current information on authorized positions, payroll,
                  and related matters concerning state [personnel] human resources;
                      [(f)] (k) [in cooperation with other agencies,] conduct research and planning activities to:
                      (i) determine and prepare for future state [personnel] human resource needs;
                      (ii) develop methods for improving public [personnel] human resource management; and
                      (iii) propose needed policy changes to the governor;
                      [(g)] (l) study the character, causes, and extent of discrimination in state employment and
                  develop plans for its elimination through programs consistent with federal and state laws
                  governing equal employment opportunity in employment;
                      [(h)] (m) when requested by counties, municipalities, and other political subdivisions of
                  the state, provide technical service and advice on [personnel] human resource management at a
                  charge determined by the director;
                      [(i)] (n) establish compensation policies and procedures for early voluntary retirement;
                      [(j)] (o) confer with the heads of other agencies about human resource policies and


                  procedures;
                      [(k)] (p) submit an annual report to the governor and the Legislature; and
                      [(l)] (q) (i) develop a procedure by which each agency will:
                      (A) identify funded vacant positions; and
                      (B) report those funded vacant positions to the [department] division;
                      (ii) identify all funded employee positions in each agency that have been vacant for more
                  than 180 consecutive days during the 18-month period prior to July 1 of each year; and
                      (iii) by no later than September 1 of each year, provide a report of all funded employee
                  positions in each agency identified in Subsections (1)[(l)] (q)(i) and (ii) to:
                      (A) the Governor's Office of Planning and Budget; and
                      (B) the Office of the Legislative Fiscal Analyst.
                      (2) (a) After consultation with the governor and the heads of other agencies, the director
                  shall establish and coordinate statewide training programs.
                      (b) The programs developed under this Subsection (2) shall have application to more
                  than one agency.
                      (c) The [department] division may not establish training programs that train employees to
                  perform highly specialized or technical jobs and tasks.
                      (3) (a) (i) The [department] division may collect fees for training as authorized by this
                  Subsection (3).
                      (ii) Training funded from General Fund appropriations shall be treated as a separate
                  program within the [department] division budget.
                      (iii) All money received from fees under this section will be accounted for by the
                  [department] division as a separate user driven training program.
                      (iv) The user training program includes the costs of developing, procuring, and
                  presenting training and development programs, and other associated costs for these programs.
                      (b) (i) Funds remaining at the end of the fiscal year in the user training program are
                  nonlapsing.
                      (ii) Each year, as part of the appropriations process, the Legislature shall review the


                  amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
                  the [department] division to lapse a portion of the funds.
                      Section 26. Section 67-19-6.1 is enacted to read:
                      67-19-6.1. Department field offices.
                      (1) After consulting with an agency head, the director of the Division of Human
                  Resource Management may establish a field office in that agency.
                      (2) The director shall assign an employee of the division to act as field office director.
                      (3) Before establishing a field office, the director and agency head shall sign an
                  agreement, to be approved by the governor, that specifies:
                      (a) the scope of responsibility of the field office director and staff;
                      (b) the services to be provided by the field office director and staff;
                      (c) the relationship between the field office director and agency management;
                      (d) the facilities, equipment, supplies, and budget to be provided for the field office by
                  the agency and the allocation of the cost of those facilities, equipment, and supplies;
                      (e) staff size;
                      (f) protocols to resolve discrepancies between agency practice and Division of Human
                  Resource Management policy;
                      (g) the date that the agreement shall terminate if not previously terminated or renewed;
                  and
                      (h) any other issue necessary for the proper functioning of the field office within the
                  agency.
                      (4) Unless otherwise provided for in the field office agreement, the agency shall:
                      (a) obtain field office approval for the final selection of qualified applicants for
                  appointment and promotion to vacant positions;
                      (b) conduct performance appraisals;
                      (c) discipline employees; and
                      (d) maintain individual personnel records.
                      (5) Any field office agreement shall be subject to termination by the director with the


                  approval of the governor.
                      Section 27. Section 67-19-6.7 is amended to read:
                       67-19-6.7. Overtime policies for state employees.
                      (1) As used in this section:
                      (a) "Accrued overtime hours" means:
                      (i) for nonexempt employees, overtime hours earned during a fiscal year that, at the end
                  of the fiscal year, have not been paid and have not been taken as time off by the nonexempt state
                  employee who accrued them; and
                      (ii) for exempt employees, overtime hours earned during an overtime year.
                      [(b) "Agreement" means the agreement authorized by the FLSA by which a nonexempt
                  employee elects the form of compensation he will receive for overtime.]
                      [(c)] (b) "Appointed official" means:
                      (i) each department executive director and deputy director, each division director, and
                  each member of a board or commission; and
                      (ii) any other person employed by a department who is appointed by, or whose
                  appointment is required by law to be approved by, the governor and who:
                      (A) is paid a salary by the state [of Utah]; and
                      (B) who exercises managerial, policy-making, or advisory responsibility.
                      [(d)] (c) "Department" means the Department of Administrative Services, the
                  Department of Corrections, the Department of Financial Institutions, the Department of
                  Alcoholic Beverage Control, the Insurance Department, the Public Service Commission, the
                  Labor Commission, the Department of Agriculture and Food, the Department of Human
                  Services, the State Board of Education, the Department of Natural Resources, the Department of
                  Transportation, the Department of Commerce, the Department of Workforce Services, the State
                  Tax Commission, the Department of Community and Economic Development, the Department
                  of Health, the National Guard, the Department of Environmental Quality, the Department of
                  Public Safety, [the Department of Human Resource Management,] the Commission on Criminal
                  and Juvenile Justice, all merit employees except attorneys in the Office of the Attorney General,


                  merit employees in the Office of the State Treasurer, and merit employees in the Office of the
                  State Auditor.
                      [(e)] (d) "Elected official" means any person who is an employee of the state [of Utah]
                  because he was elected by the registered voters of Utah to a position in state government.
                      [(f)] (e) "Exempt employee" means a state employee who is exempt as defined by the
                  [FLSA] Fair Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
                      [(g)] (f) "FLSA" means the Fair Labor Standards Act of 1978, 29 U.S.C. Section 201 et
                  seq.[ (1978).]
                      (g) "FLSA agreement" means the agreement authorized by the Fair Labor Standards Act
                  of 1978, 29 U.S.C. Section 201 et seq. by which a nonexempt employee elects the form of
                  compensation he will receive for overtime.
                      [(h) "Human Resource Management" means the Department of Human Resource
                  Management.]
                      [(i)] (h) "Nonexempt employee" means a state employee who is nonexempt as defined by
                  the Division of Human Resource Management applying FLSA requirements.
                      [(j)] (i) "Overtime" means actual time worked in excess of the employee's defined work
                  period.
                      [(k)] (j) "Overtime year" means the year determined by a department under Subsection
                  (4)(b) at the end of which an exempt employee's accrued overtime lapses.
                      [(l)] (k) (i) "State employee" means every person employed by a department who is not
                  an appointed official or an elected official.
                      (ii) "State employee" does not mean:
                      (A) certificated employees of the State Board of Education; and
                      (B) employees of the Department of Community and Economic Development whose
                  positions are designated as schedule AM exempt employees under Section 67-19-15 .
                      [(m)] (l) "Uniform annual date" means the date when an exempt employee's accrued
                  overtime lapses.
                      [(n)] (m) "Work period" means:


                      (i) for all nonexempt employees, except law enforcement and hospital employees, a
                  consecutive seven day 24 hour work period of 40 hours;
                      (ii) for all exempt employees, a 14 day, 80 hour payroll cycle; and
                      (iii) for nonexempt law enforcement and hospital employees, the period established by
                  each department by rule for those employees according to the requirements of the [FLSA] Fair
                  Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
                      (2) Each department shall compensate each state employee who works overtime by
                  complying with the requirements of this section.
                      (3) (a) Each department shall negotiate and obtain a signed FLSA agreement from each
                  nonexempt employee.
                      (b) In the FLSA agreement, the nonexempt employee shall elect either to be compensated
                  for overtime by:
                      (i) taking time off work at the rate of one and one-half hour off for each overtime hour
                  worked; or
                      (ii) being paid for the overtime worked at the rate of one and one-half times the rate per
                  hour that the state employee receives for nonovertime work.
                      (c) Any nonexempt employee who elects to take time off under this subsection shall be
                  paid for any overtime worked in excess of the cap established by the Division of Human
                  Resource Management.
                      (d) Before working any overtime, each nonexempt employee shall obtain authorization to
                  work overtime from the employee's immediate supervisor.
                      (e) Each department shall:
                      (i) for employees who elect to be compensated with time off for overtime, allow
                  overtime earned during a fiscal year to be accumulated; and
                      (ii) for employees who elect to be paid for overtime worked, pay them for overtime
                  worked in the paycheck for the pay period in which the employee worked the overtime.
                      (f) If the department pays a nonexempt employee for overtime, the department shall
                  charge that payment to the department's budget.


                      (g) At the end of each fiscal year, the Division of Finance shall total all the accrued
                  overtime hours for nonexempt employees and charge that total against the appropriate fund or
                  subfund.
                      (4) (a) (i) Except as provided in Subsection (4)(a)(ii), each department shall compensate
                  exempt employees who work overtime by granting them time off at the rate of one hour off for
                  each hour of overtime worked.
                      (ii) The director of the Division of Human Resource Management may grant limited
                  exceptions to this requirement, where work circumstances dictate, by authorizing a department to
                  pay employees for overtime worked at the rate per hour that the employee receives for
                  nonovertime work, if the department has funds available.
                      (b) (i) Each department shall:
                      (A) establish in its written [personnel] human resource policies a uniform annual date for
                  each division that is at the end of any pay period; and
                      (B) communicate the uniform annual date to its employees.
                      (ii) If any department fails to establish a uniform annual date as required by this
                  Subsection (4), the director of the Division of Human Resource Management, in conjunction
                  with the director of the Division of Finance, shall establish the date for that department.
                      (c) (i) Any overtime earned under this Subsection (4) is not an entitlement, is not a
                  benefit, and is not a vested right.
                      (ii) A court may not construe the overtime for exempt employees authorized by this
                  Subsection (4) as an entitlement, a benefit, or as a vested right.
                      (d) At the end of the overtime year, upon transfer to another department at any time, and
                  upon termination, retirement, or other situations where the employee will not return to work
                  before the end of the overtime year:
                      (i) any of an exempt employee's overtime that is more than the maximum established by
                  the Division of Human Resource Management rule lapses; and
                      (ii) unless authorized by the director of the Division of Human Resource Management
                  under Subsection (4)(a)(ii), a department may not compensate the exempt employee for that


                  lapsed overtime by paying the employee for the overtime or by granting the employee time off
                  for the lapsed overtime.
                      (e) Before working any overtime, each exempt employee shall obtain authorization to
                  work overtime from [their] the exempt employee's immediate supervisor.
                      (f) If the department pays an exempt employee for overtime under authorization from the
                  director of the [Department] Division of Human Resource Management, the department shall
                  charge that payment to the department's budget in the pay period earned.
                      (5) The Division of Human Resource Management shall:
                      (a) ensure that the provisions of the FLSA and this section are implemented throughout
                  state government;
                      (b) determine, for each state employee, whether that employee is exempt, nonexempt,
                  law enforcement, or has some other status under the FLSA;
                      (c) in coordination with modifications to the systems operated by the Division of
                  Finance, make rules:
                      (i) establishing procedures for recording overtime worked that comply with FLSA
                  requirements;
                      (ii) establishing requirements governing overtime worked while traveling and procedures
                  for recording that overtime that comply with FLSA requirements;
                      (iii) establishing requirements governing overtime worked if the employee is "on call"
                  and procedures for recording that overtime that comply with FLSA requirements;
                      (iv) establishing requirements governing overtime worked while an employee is being
                  trained and procedures for recording that overtime that comply with FLSA requirements;
                      (v) subject to the FLSA, establishing the maximum number of hours that a nonexempt
                  employee may accrue before a department is required to pay the employee for the overtime
                  worked;
                      (vi) subject to the FLSA, establishing the maximum number of overtime hours for an
                  exempt employee that do not lapse; and
                      (vii) establishing procedures for adjudicating appeals of any FLSA determinations made


                  by the Division of Human Resource Management as required by this section;
                      (d) monitor departments for compliance with the FLSA; and
                      (e) recommend to the Legislature and the governor any statutory changes necessary
                  because of federal government action.
                      (6) In coordination with the procedures for recording overtime worked established in rule
                  by the Division of Human Resource Management, the Division of Finance shall modify its
                  payroll and [personnel] human resource systems to accommodate those procedures.
                      (a) Notwithstanding the procedures and requirements of Title 63, Chapter 46b,
                  Administrative Procedures Act, Section 67-19-31 , and Section 67-19a-301 , any employee who is
                  aggrieved by the FLSA designation made by the Division of Human Resource Management as
                  required by this section may appeal that determination to the [executive] director of the Division
                  of Human Resource Management by following the procedures and requirements established in
                  Division of Human Resource Management rule.
                      (b) Upon receipt of an appeal under this section, the director shall notify the executive
                  director of the employee's department that the appeal has been filed.
                      (c) If the employee is aggrieved by the decision of the [executive] director of the
                  Division of Human Resource Management, he shall appeal that determination to the Department
                  of Labor, Wage and Hour Division, according to the procedures and requirements of federal law.
                      Section 28. Section 67-19-11 is amended to read:
                       67-19-11. Use of department facilities -- Field office facilities cost allocation --
                  Funding for division.
                      (1) (a) All officers and employees of the state and its political subdivisions shall allow
                  the [department] division to use public buildings under their control, and furnish heat, light, and
                  furniture, for any examination, hearing, or investigation authorized by this chapter.
                      [(b) The department shall pay a political subdivision the reasonable cost of any facilities
                  furnished by it.]
                      (b) (i) Allocation of the cost for any facilities, equipment, or supplies furnished by an
                  agency for use as a field office of the division shall be governed by the field office agreement


                  established in Section 67-19-6.1 .
                      (ii) If the field office agreement does not specifically provide for the allocation of a cost
                  for the division's use of the agency's facilities, equipment, or supplies, the agency shall pay the
                  cost of those facilities, equipment, and supplies.
                      (2) The director shall [submit]:
                      (a) prepare an annual budget request for the [department] division, which is subject to the
                  executive director's approval; and
                      (b) submit the budget request to the governor and the Legislature.
                      Section 29. Section 67-19-12 is amended to read:
                       67-19-12. State pay plans -- Applicability of section -- Exemptions -- Duties of
                  director.
                      (1) (a) This section, and the rules adopted by the [department] division to implement this
                  section, apply to each career and noncareer [state] employee not specifically exempted under
                  Subsection (2).
                      (b) If not exempted under Subsection (2), [a state] an 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] division 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
                  reorganizations.
                      (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) 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. 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) The director shall issue rules for the administration of pay plans. 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. 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
                  performance.
                      (v) By October [15] 31 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) 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. The survey may also study comparable unusual
                  positions requiring recruitment outside Utah in the surrounding western states. The director may
                  cooperate with other public and private employers in conducting the survey.
                      (viii) 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. Except as provided under Section 67-19-12.3 , the survey shall include a
                  reasonable cross section of employers. The director may cooperate with or participate in any
                  survey conducted by other public and private employers.
                      (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] division 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 30. Section 67-19-12.2 is amended to read:
                       67-19-12.2. Education benefit plan for law enforcement and correctional officers.
                      (1) As used in this section, "law enforcement officer" has the same meaning as in Section
                  53-13-103 and "correctional officer" has the same meaning as in Section 53-13-104 .
                      (2) The director shall establish a plan authorizing any [state] agency to implement an
                  educational compensation program for law enforcement officers and correctional officers
                  employed by that [state] agency.
                      (3) The program shall provide that in order for a law enforcement officer or correctional


                  officer to qualify for education benefits for college or university education, the law enforcement
                  officer or correctional officer shall:
                      (a) provide a certified transcript of grades, demonstrating a grade point average of 3.0 or
                  greater, from an accredited college or university; and
                      (b) have successfully completed the probationary employment period with the employing
                  agency.
                      (4) The program shall also provide that the agency may consider a law enforcement
                  officer or correctional officer to receive additional compensation as follows for higher education
                  degrees earned on or after April 30, 2001, in a subject area directly related to the law
                  enforcement officer's or correctional officer's employment with the agency:
                      (a) two steps for an associate's degree;
                      (b) two steps for a bachelor's degree; and
                      (c) two steps for a master's degree.
                      (5) Expenses incurred by an agency to provide additional compensation under this
                  section may be only from the agency's existing budget.
                      Section 31. Section 67-19-12.5 is amended to read:
                       67-19-12.5. Creation of Flexible Benefit Program -- Rulemaking power granted to
                  establish program.
                      (1) The [department] division shall establish for calendar year 1990 and thereafter a
                  Flexible Benefit Program under Section 125 of the Internal Revenue Code of 1986.
                      (2) The [department] division shall establish accounts for all employees eligible for
                  benefits which meet the nondiscrimination requirements of the Internal Revenue Code of 1986.
                      (3) (a) Each account established under this section shall include employee paid premiums
                  for health and dental services.
                      (b) The account may also include, at the option of the employee, out-of-pocket employee
                  medical and dependent care expenses.
                      (c) Accounts may also include other expenses allowed under the Internal Revenue Code
                  of 1986.


                      (4) In accordance with Title 63, Chapter 46a, [the] Utah Administrative Rulemaking Act,
                  the [department] division may make rules to implement the program established under this
                  section.
                      Section 32. Section 67-19-12.7 is amended to read:
                       67-19-12.7. Accumulated annual leave -- Conversion to deferred compensation
                  plan.
                      (1) The [department] division shall implement a program whereby an employee may,
                  upon termination of employment or retirement, elect to convert any unused annual leave into any
                  of the employee's designated deferred compensation accounts that:
                      (a) are sponsored by the Utah State Retirement Board; and
                      (b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
                      (2) Any annual leave converted under Subsection (1) shall be converted into the
                  employee's deferred compensation account at the employee's pay rate at the time of termination
                  or retirement.
                      (3) No employee may convert hours of accrued annual leave to the extent that any hours
                  so converted would exceed the maximum amount authorized by the Internal Revenue Code for
                  each calendar year.
                      Section 33. Section 67-19-12.9 is amended to read:
                       67-19-12.9. Accumulated annual leave -- Annual conversion to deferred
                  compensation plan.
                      (1) If the Legislature in an annual appropriations act with accompanying intent language
                  specifically authorizes and fully funds the estimated costs of this use, the [department] division
                  shall implement a program that allows an employee, in the approved calendar year, to elect to
                  convert up to 20 hours of annual leave, in whole hour increments not to exceed $250 in value,
                  into any of the employee's designated deferred compensation accounts that:
                      (a) are sponsored by the Utah State Retirement Board; and
                      (b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
                      (2) Any annual leave converted under Subsection (1) shall be:


                      (a) converted into the employee's deferred compensation account at the employee's pay
                  rate at the time of conversion; and
                      (b) calculated in the last pay period of the leave year as determined by the Division of
                  Finance.
                      (3) An employee may not convert hours of accrued annual leave to the extent that any
                  hours converted would:
                      (a) exceed the maximum amount authorized by the Internal Revenue Code for the
                  calendar year; or
                      (b) cause the employee's balance of accumulated annual leave to drop below the
                  maximum accrual limit provided by rule.
                      Section 34. Section 67-19-13 is amended to read:
                       67-19-13. Examination of payrolls and certification of employee eligibility by
                  director.
                      (1) The director [of personnel management] may examine payrolls at any time to
                  determine conformity with this chapter and the regulations.
                      (2) No new employee shall be hired in a position covered by this chapter, and no
                  employee shall be changed in pay, title or status, nor shall any employee be paid unless certified
                  by the director as eligible under the provisions of or regulations promulgated pursuant to this
                  chapter.
                      Section 35. Section 67-19-15 is amended to read:
                       67-19-15. Career service -- Exempt positions -- Schedules for civil service positions
                  -- Coverage of career service provisions.
                      (1) Except as otherwise provided by law or by rules and regulations established for
                  federally aided programs, the following positions are exempt from the career service provisions
                  of this chapter:
                      (a) the governor, members of the Legislature, and all other elected state officers,
                  designated as Schedule AA;
                      (b) the agency heads enumerated in Section 67-22-2 , and commissioners designated as


                  Schedule AB;
                      (c) all employees and officers in the office and at the residence of the governor,
                  designated as Schedule AC;
                      (d) employees who are in a confidential relationship to an agency head or commissioner
                  and who report directly to, and are supervised by, a department head, commissioner, or deputy
                  director of an agency or its equivalent, designated as Schedule AD;
                      (e) unskilled employees in positions requiring little or no specialized skill or training,
                  designated as Schedule AE;
                      (f) part-time professional noncareer persons who are paid for any form of medical and
                  other professional service and who are not engaged in the performance of administrative duties,
                  designated as Schedule AF;
                      (g) attorneys in the attorney general's office who are under their own career service pay
                  plan, designated as Schedule AG;
                      (h) teaching staff of all state institutions and patients and inmates employed in state
                  institutions, designated as Schedule AH;
                      (i) persons appointed to a position vacated by an employee who has a right to return
                  under federal or state law or policy, designated as Schedule AI;
                      (j) noncareer employees compensated for their services on a seasonal or contractual basis
                  who are hired for limited periods of less than nine consecutive months or who are employed on
                  less than 1/2 time basis, designated as Schedule AJ;
                      (k) those employees in a personal and confidential relationship to elected officials,
                  designated as Schedule AK;
                      (l) employees appointed to perform work of a limited duration not exceeding two years
                  or to perform work with time-limited funding, designated as Schedule AL;
                      (m) 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,
                  designated as Schedule AM;


                      (n) employees of the Legislature, designated as Schedule AN;
                      (o) employees of the judiciary, designated as Schedule AO;
                      (p) all judges in the judiciary, designated as Schedule AP;
                      (q) members of state and local boards and councils appointed by the governor and
                  governing bodies of agencies, other local officials serving in an ex officio capacity, officers,
                  faculty, and other employees of state universities and other state institutions of higher education,
                  designated as Schedule AQ;
                      (r) employees who make statewide policy, designated as Schedule AR; and
                      (s) any other employee whose appointment is required by statute to be career service
                  exempt, designated as Schedule AS.
                      (2) The civil service shall consist of two schedules as follows:
                      (a) (i) Schedule A is the schedule consisting of positions exempted by Subsection (1).
                      (ii) Removal from any appointive position under Schedule A, unless otherwise regulated
                  by statute, is at the pleasure of the appointing officers without regard to tenure.
                      (b) Schedule B is the competitive career service schedule, consisting of all positions
                  filled through competitive selection procedures as defined by the director.
                      (3) (a) The director, after consultation with the heads of concerned executive branch
                  departments and agencies and with the approval of the governor, shall allocate positions to the
                  appropriate schedules under this section.
                      (b) Agency heads shall make requests and obtain approval from the director before
                  changing the schedule assignment and tenure rights of any position.
                      (c) Unless the director's decision is reversed by the governor, when the director denies an
                  agency's request, the director's decision is final.
                      (4) (a) Compensation for employees of the Legislature shall be established by the
                  directors of the legislative offices in accordance with Section 36-12-7 .
                      (b) Compensation for employees of the judiciary shall be established by the state court
                  administrator in accordance with Section 78-3-24 .
                      (c) Compensation for officers, faculty, and other employees of state universities and


                  institutions of higher education shall be established as provided in Title 53B, Chapters 1 and 2.
                      (d) Unless otherwise provided by law, compensation for all other Schedule A employees
                  shall be established by their appointing authorities, within ranges approved by, and after
                  consultation with the director of the [Department] Division of Human [Resources] Resource
                  Management.
                      (5) All employees of the Office of State Auditor, the Office of State Treasurer, the Office
                  of the Attorney General, excluding attorneys who are under their own career service system, and
                  employees who are not exempt under this section are covered by the career service provisions of
                  this chapter.
                      Section 36. Section 67-19-15.1 is amended to read:
                       67-19-15.1. Implementation of exempt status for Schedule AD and AR employees.
                      (1) As used in this section, "appointee" means:
                      (a) a deputy director;
                      (b) a division director;
                      (c) any assistant directors and administrative assistants who report directly to a
                  department head, deputy director, or their equivalent; and
                      (d) any other person whose appointment is required by law to be approved by the
                  governor.
                      (2) After the effective date of this [act] chapter, any new appointee is a merit exempt
                  employee.
                      (3) Notwithstanding the requirements of this [act] chapter, any appointee who is
                  currently a nonexempt employee does not lose that nonexempt status because of this [act]
                  chapter.
                      (4) The [Department] Division of Human Resource Management shall develop financial
                  and other incentives to encourage appointees who are nonexempt to voluntarily convert to merit
                  exempt status.
                      Section 37. Section 67-19-19 is amended to read:
                       67-19-19. Political activity of employees -- Rules and regulations -- Highway patrol


                  -- Hatch Act.
                      Except as otherwise provided by law or by rules promulgated under this section for
                  federally aided programs, the following provisions apply with regard to political activity of career
                  service employees in all grades and positions.
                      (1) [State career] Career service employees may voluntarily participate in political
                  activity subject to the following provisions:
                      (a) if any [state] career service employee is elected to any partisan or full-time
                  nonpartisan political office, that employee shall be granted a leave of absence without pay for
                  times when monetary compensation is received for service in political office;
                      (b) no officer or employee in career service may engage in any political activity during
                  the hours of employment, nor may any person solicit political contributions from employees of
                  the executive branch during hours of employment for political purposes; and
                      (c) partisan political activity may not be a basis for employment, promotion, demotion,
                  or dismissal, except that the director shall adopt rules providing for the discipline or punishment
                  of a state officer or employee who violates any provision of this section.
                      (2) (a) Notwithstanding any other provision of this section, no member of the Utah
                  Highway Patrol may use his official authority or influence for the purpose of interfering with an
                  election or affecting the results of an election.
                      (b) No person may induce or attempt to induce any member of the Utah Highway Patrol
                  to participate in any activity prohibited by this Subsection (2).
                      (3) Nothing contained in this section may be construed to:
                      (a) preclude voluntary contributions by [a state] an employee to the party or candidate of
                  the officer's or employee's choice; or
                      (b) permit partisan political activity by any [state] employee who is prevented or
                  restricted from engaging in the political activity by the provisions of the federal Hatch Act.
                      Section 38. Section 67-19-26 is amended to read:
                       67-19-26. Severability of provisions -- Compliance with requirements for federally
                  aided programs.


                      (1) If any provision of this chapter or of any regulation or order issued thereunder or the
                  application of any provision of this chapter to any person or circumstance is held invalid, the
                  remainder of this chapter and the application of provision of this chapter or regulation or orders
                  issued under it to persons or circumstances other than those to which it is held invalid shall still
                  be regarded as having the force and effect of law.
                      (2) If any part of this chapter is found to be in conflict with federal requirements which
                  are a condition precedent to the allocation of federal funds to the state, the conflicting part of this
                  chapter shall be inoperative solely to the extent of the conflict and with respect to the agencies
                  directly affected, and such findings shall not affect the operation of the remainder of this chapter
                  in its application to the agencies concerned.
                      (3) Notwithstanding any provisions in this chapter to the contrary, no regulation shall be
                  adopted which would deprive the state or any of its departments or institutions of federal grants
                  or other forms of financial assistance, and the rules and regulations promulgated hereunder shall
                  include standards, provisions, terms, and conditions for personnel engaged in the administration
                  of federally aided programs, which shall, in all respects, comply with the necessary requirements
                  for a qualified [personnel] human resource system under the standards applicable to personnel
                  engaged in the administration of federally aided programs.
                      Section 39. Section 67-19-31 is amended to read:
                       67-19-31. Position classification grievances -- Scope -- Procedure.
                      (1) (a) For the purpose of position classification grievances, the process that culminates
                  in assigning a career service position to an appropriate class specification is a matter of position
                  classification and may be grieved.
                      (b) The process that culminates in assigning a salary range to the class specification is
                  not a position classification and may not be grieved as a classification grievance.
                      (2) (a) Upon receipt of a position classification grievance, the director shall refer the
                  grievance to a classification panel of three or more impartial persons trained in state
                  classification procedures.
                      (b) The classification panel shall determine whether or not the classification assignment


                  for career service positions was appropriate by applying the statutes, rules, and procedures
                  adopted by the department that were in effect at the time of the classification change.
                      (c) The classification panel may:
                      (i) obtain access to previous audits, classification decisions, and reports;
                      (ii) request new or additional audits by [department or agency personnel] human resource
                  analysts; and
                      (iii) consider new or additional information.
                      (d) The classification panel may sustain or modify the original decision and, if
                  applicable, recommend a new classification.
                      (e) The classification panel shall report its recommendation to the director, who shall
                  make the classification decision and notify the grievant.
                      (3) (a) Either party may appeal the director's decision to an impartial hearing officer
                  trained in state classification procedures selected through a public bid process by a panel
                  consisting of the following members:
                      (i) the [executive] director of the [Department] Division of Human Resource
                  Management;
                      (ii) two department executive directors;
                      (iii) a private sector human resources executive appointed by the governor; and
                      (iv) a representative of the Utah Public Employees Association.
                      (b) The successful bid shall serve under contract for no more than three years. At the end
                  of that time, the [Department] Division of Human Resource Management shall reissue the bid.
                      (c) The hearing officer shall review the classification and make the final decision. The
                  final decision is subject to judicial review pursuant to the provisions of Section 63-46b-15 .
                      Section 40. Section 67-19-33 is amended to read:
                       67-19-33. Controlled substances and alcohol use prohibited.
                      An employee may not:
                      (1) manufacture, dispense, possess, use, distribute, or be under the influence of a
                  controlled substance or alcohol during work hours or on state property except where legally


                  permissible;
                      (2) manufacture, dispense, possess, use, or distribute a controlled substance or alcohol if
                  the activity prevents:
                      (a) state agencies from receiving federal grants or performing under federal contracts of
                  $25,000 or more; or
                      (b) the employee to perform his services or work for state government effectively as
                  regulated by the rules of the [executive] director in accordance with Section 67-19-34 ; or
                      (3) refuse to submit to a drug or alcohol test under Section 67-19-36 .
                      Section 41. Section 67-19-34 is amended to read:
                       67-19-34. Rulemaking power to director.
                      In accordance with this chapter and Title 63, Chapter 46a, Utah Administrative
                  Rulemaking Act, the [executive] director shall make rules regulating:
                      (1) disciplinary actions for employees subject to discipline under Section 67-19-37 ;
                      (2) the testing of employees for the use of controlled substances or alcohol as provided in
                  Section 67-19-36 ;
                      (3) the confidentiality of drug testing and test results performed under Section 67-19-36
                  in accordance with Title 63, Chapter 2, Government Records Access and Management Act; and
                      (4) minimum blood levels of alcohol or drug content for work effectiveness of an
                  employee.
                      Section 42. Section 67-19-36 is amended to read:
                       67-19-36. Drug testing of state employees.
                      (1) Except as provided in Subsection (2), when there is reasonable suspicion that an
                  employee is using a controlled substance or alcohol unlawfully during work hours, an employee
                  may be required to submit to medically accepted testing procedures for a determination of
                  whether the employee is using a controlled substance or alcohol in violation of this part.
                      (2) In highly sensitive positions, as identified in [department] division class
                  specifications, random drug testing of employees may be conducted by an agency in accordance
                  with the rules of the [executive] director.


                      (3) All drug or alcohol testing shall be:
                      (a) conducted by a federally certified and licensed physician, a federally certified and
                  licensed medical clinic, or testing facility federally certified and licensed to conduct medically
                  accepted drug testing;
                      (b) conducted in accordance with the rules of the [executive] director made under
                  Section 67-19-34 ; and
                      (c) kept confidential in accordance with the rules of the [executive] director made in
                  accordance with Section 67-19-34 .
                      (4) A physician, medical clinic, or testing facility may not be held liable in any civil
                  action brought by a party for:
                      (a) performing or failing to perform a test under this section;
                      (b) issuing or failing to issue a test result under this section; or
                      (c) acting or omitting to act in any other way in good faith under this section.
                      Section 43. Section 67-19-37 is amended to read:
                       67-19-37. Discipline of employees.
                      An employee shall be subject to the rules of discipline of the [executive] director made in
                  accordance with Section 67-19-34 , if [he] the employee:
                      (1) refuses to submit to testing procedures provided in Section 67-19-36 ;
                      (2) refuses to complete a drug rehabilitation program in accordance with Subsection
                  67-19-38 (3);
                      (3) is convicted under a federal or state criminal statute regulating the manufacture,
                  distribution, dispensation, possession, or use of a controlled substance; or
                      (4) manufactures, dispenses, possesses, uses, or distributes a controlled substance in
                  violation of state or federal law during work hours or on state property.
                      Section 44. Section 67-19-38 is amended to read:
                       67-19-38. Violations and penalties.
                      In addition to other criminal penalties provided by law, an employee who:
                      (1) fails to notify [his] the employee's director under Section 67-19-35 is subject to


                  disciplinary proceedings as established by the [executive] director by rule in accordance with
                  Section 67-19-34 ;
                      (2) refuses to submit to testing procedures provided for in Section 67-19-36 , may be
                  suspended immediately without pay pending further disciplinary action as set forth in the rules of
                  the [executive] director in accordance with Section 67-19-34 ;
                      (3) tests positive for the presence of unlawfully used controlled substances or alcohol
                  may be required, as part of [his] the employee's disciplinary treatment, to complete a drug
                  rehabilitation program at [his] the employee's expense within 60 days after receiving the positive
                  test results or be subject to further disciplinary procedures established by rule of the [executive]
                  director in accordance with Section 67-19-34 .
                      Section 45. Section 67-19a-303 is amended to read:
                       67-19a-303. Employees' rights in grievance and appeals procedure.
                      (1) For the purpose of processing a grievance, a career service employee may:
                      (a) obtain assistance by a representative of the employee's choice to act as an advocate at
                  any level of the grievance procedure;
                      (b) request a reasonable amount of time during work hours to confer with the
                  representative and prepare the grievance; and
                      (c) call other employees as witnesses at a grievance hearing.
                      (2) The state shall allow employees to attend and testify at the grievance hearing as
                  witnesses if the employee has given reasonable advance notice to [his] the employee's immediate
                  supervisor.
                      (3) No person may take any reprisals against any career service employee for use of
                  grievance procedures specified in this chapter.
                      (4) (a) The employing agency of an employee who files a grievance may not place
                  grievance forms, grievance materials, correspondence about the grievance, agency and
                  department replies to the grievance, or other documents relating to the grievance in the
                  employee's personnel file.
                      (b) The employing agency of an employee who files a grievance may place records of


                  disciplinary action in the employee's personnel file.
                      (c) If any disciplinary action against an employee is rescinded through the grievance
                  procedures established in this chapter, the agency and the [Department] Division of Human
                  Resource Management shall remove the record of the disciplinary action from the employee's
                  agency personnel file and central personnel file.
                      (d) An agency may maintain a separate grievance file relating to an employee's
                  grievance, but shall discard the file after three years.
                      Section 46. Section 67-19c-101 is amended to read:
                       67-19c-101. Department award program.
                      (1) As used in this section:
                      (a) "Department" means the Department of Administrative Services, the Department of
                  Agriculture and Food, the Department of Alcoholic Beverage Control, the Department of
                  Commerce, the Department of Community and Economic Development, the Department of
                  Corrections, the Department of Workforce Services, the Department of Environmental Quality,
                  the Department of Financial Institutions, the Department of Health, [the Department of Human
                  Resource Management,] the Department of Human Services, the Insurance Department, the
                  National Guard, the Department of Natural Resources, the Department of Public Safety, the
                  Public Service Commission, the Labor Commission, the State Board of Education, the State
                  Board of Regents, the State Tax Commission, and the Department of Transportation.
                      (b) "Department head" means the individual or body of individuals in whom the ultimate
                  legal authority of the department is vested by law.
                      (2) There is created a department awards program to award an outstanding employee in
                  each department of state government.
                      (3) (a) By April 1 of each year, each department head shall solicit nominations for
                  outstanding employee of the year for his department from the employees in his department.
                      (b) By July 1 of each year, the department head shall:
                      (i) select a person from the department to receive the outstanding employee of the year
                  award using the criteria established in Subsection (3)(c); and


                      (ii) announce the recipient of the award to his employees.
                      (c) Department heads shall make the award to a person who demonstrates:
                      (i) extraordinary competence in performing his function;
                      (ii) creativity in identifying problems and devising workable, cost-effective solutions to
                  them;
                      (iii) excellent relationships with the public and other employees;
                      (iv) a commitment to serving the public as the client; and
                      (v) a commitment to economy and efficiency in government.
                      (4) (a) The [Department] Division of Human Resource Management shall divide any
                  appropriation for outstanding department employee awards that it receives from the Legislature
                  equally among the departments.
                      (b) If the department receives monies from the [Department] Division of Human
                  Resource Management or if the department budget allows, the department head shall provide the
                  employee with a bonus, a plaque, or some other suitable acknowledgement of the award.
                      (5) (a) The department head may name the award after an exemplary present or former
                  employee of the department.
                      (b) A department head may not name the award for himself or for any relative as defined
                  in Section 52-3-1 .
                      (c) Any awards or award programs existing in any department as of May 3, 1993, shall
                  be modified to conform to the requirements of this section.
                      Section 47. Section 67-20-8 is amended to read:
                       67-20-8. Volunteer experience credit.
                      (1) State agencies shall designate positions for which approved volunteer experience
                  satisfies the job requirements for purposes of employment.
                      (2) When evaluating applicants for those designated positions, state agencies shall
                  consider documented approved volunteer experience in the same manner as similar paid
                  employment.
                      (3) The [Department] Division of Human Resource Management shall make statewide


                  rules governing the:
                      (a) designation of volunteer positions; and
                      (b) a uniform process to document the approval, use, and hours worked by volunteers.
                      Section 48. Section 67-22-2 is amended to read:
                       67-22-2. Compensation -- Other state officers.
                      (1) The governor shall establish salaries for the following state officers within the
                  following salary ranges fixed by the Legislature:
                          State Officer                 Salary Range
                      Commissioner of Agriculture and Food     $65,200 - $88,400
                      Commissioner of Insurance             $65,200 - $88,400
                      Commissioner of the Labor Commission     $65,200 - $88,400
                      Director, Alcoholic Beverage Control
                          Commission                 $65,200 - $88,400
                      Commissioner, Department of
                          Financial Institutions             $65,200 - $88,400
                      Members, Board of Pardons and Parole     $65,200 - $88,400
                      Executive Director, Department
                          of Commerce                 $65,200 - $88,400
                      Executive Director, Commission on
                          Criminal and Juvenile Justice     $65,200 - $88,400
                      Adjutant General                 $65,200 - $88,400
                      Chair, Tax Commission             $70,600 - $95,200
                      Commissioners, Tax Commission         $70,600 - $95,200
                      Executive Director, Department of
                          Community and Economic
                          Development                 $70,600 - $95,200
                      Executive Director, Tax Commission     $70,600 - $95,200
                      Chair, Public Service Commission         $70,600 - $95,200


                      Commissioners, Public Service
                          Commission                 $70,600 - $95,200
                      Executive Director, Department
                          of Corrections                 $76,800 - $103,600
                      Commissioner, Department of Public Safety     $76,800 - $103,600
                      Executive Director, Department of
                          Natural Resources             $76,800 - $103,600
                      Director, Governor's Office of Planning
                          and Budget                 $76,800 - $103,600
                      Executive Director, Department of
                          Administrative Services         $76,800 - $103,600
                      [Executive Director, Department of]
                          [Human Resource Management     $76,800 - $103,600]
                      Executive Director, Department of
                          Environmental Quality         $76,800 - $103,600
                      Executive Director, Department of
                          Workforce Services             $83,600 - $112,900
                      Executive Director, Department of
                          Health                     $83,600 - $112,900
                      Executive Director, Department
                          of Human Services             $83,600 - $112,900
                      Executive Director, Department
                          of Transportation             $83,600 - $112,900
                      Chief Information Officer             $83,600 - $112,900
                      (2) (a) The Legislature fixes benefits for the state offices outlined in Subsection (1) as
                  follows:
                      (i) the option of participating in a state retirement system established by Title 49, Utah
                  State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered by


                  the State Retirement Office in accordance with the Internal Revenue Code and its accompanying
                  rules and regulations;
                      (ii) health insurance;
                      (iii) dental insurance;
                      (iv) basic life insurance;
                      (v) unemployment compensation;
                      (vi) workers' compensation;
                      (vii) required employer contribution to Social Security;
                      (viii) long-term disability income insurance;
                      (ix) the same additional state-paid life insurance available to other noncareer service
                  employees;
                      (x) the same severance pay available to other noncareer service employees;
                      (xi) the same sick leave, converted sick leave, educational allowances, and holidays
                  granted to Schedule B state employees, and the same annual leave granted to Schedule B state
                  employees with more than ten years of state service;
                      (xii) the option to convert accumulated sick leave to cash or insurance benefits as
                  provided by law or rule upon resignation or retirement according to the same criteria and
                  procedures applied to Schedule B state employees;
                      (xiii) the option to purchase additional life insurance at group insurance rates according
                  to the same criteria and procedures applied to Schedule B state employees; and
                      (xiv) professional memberships if being a member of the professional organization is a
                  requirement of the position.
                      (b) Each department shall pay the cost of additional state-paid life insurance for its
                  executive director from its existing budget.
                      (3) The Legislature fixes the following additional benefits:
                      (a) for the executive director of the State Tax Commission a vehicle for official and
                  personal use;
                      (b) for the executive director of the Department of Transportation a vehicle for official


                  and personal use;
                      (c) for the executive director of the Department of Natural Resources a vehicle for
                  commute and official use;
                      (d) for the Commissioner of Public Safety:
                      (i) an accidental death insurance policy if POST certified; and
                      (ii) a public safety vehicle for official and personal use;
                      (e) for the executive director of the Department of Corrections:
                      (i) an accidental death insurance policy if POST certified; and
                      (ii) a public safety vehicle for official and personal use;
                      (f) for the Adjutant General a vehicle for official and personal use; and
                      (g) for each member of the Board of Pardons and Parole a vehicle for commute and
                  official use.
                      (4) (a) The governor has the discretion to establish a specific salary for each office listed
                  in Subsection (1), and, within that discretion, may provide salary increases within the range fixed
                  by the Legislature.
                      (b) The governor shall apply the same overtime regulations applicable to other FLSA
                  exempt positions.
                      (c) The governor may develop standards and criteria for reviewing the performance of
                  the state officers listed in Subsection (1).
                      (5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which are
                  not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary
                  Act, shall be established as provided in Section 67-19-15 .
                      Section 49. Section 72-1-203 is amended to read:
                       72-1-203. Deputy director -- Appointment -- Qualifications -- Other assistants and
                  advisers -- Salaries.
                      (1) The executive director shall appoint a deputy director, who shall be a registered
                  professional engineer in the state and shall serve at the discretion of the executive director.
                      (2) The deputy director is the chief engineer of the department. The deputy director shall


                  assist the executive director and is responsible for:
                      (a) program and project development; and
                      (b) operation and maintenance of the state transportation systems.
                      (3) The executive director may also appoint assistants to administer the divisions of the
                  department. These assistants shall serve at the discretion of the executive director.
                      (4) In addition, the executive director may employ other assistants and advisers as the
                  executive director finds necessary and fix salaries in accordance with the salary standards
                  adopted by the [Department] Division of Human Resource Management.
                      Section 50. Repealer.
                      This bill repeals:
                      Section 67-19-6.4, Utah Quality Service Award program.
                      Section 67-19-7, State agencies contracting to perform personnel functions on own
                  behalf.
                      Section 67-19-8, Functions of department not to be delegated.
                      Section 67-19-9, Functions for which state agencies responsible.
                      Section 67-19-10, Functions which director may delegate to state agencies --
                  Agreements to delegate -- Contents -- Execution -- Termination.
                      Section 51. Legislative intent.
                      It is the intent of the Legislature that the Division of Human Resource Management
                  renumber its rules, coordinating with the Division of Administrative Rules, and correct
                  references within its rules by the effective date of this bill.
                      Section 52. Effective date.
                      This bill takes effect on July 1, 2006.


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