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H.B. 173





Sponsor: Ann W. Hardy

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

             28          None
             29      Other Special Clauses:
             30          None
             31      Utah Code Sections Affected:
             32      AMENDS:
             33          67-19-12, as last amended by Chapter 16, Laws of Utah 2003
             34          67-19-14.3, as enacted by Chapter 28, Laws of Utah 2004
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 67-19-12 is amended to read:
             38           67-19-12. State pay plans -- Applicability of section -- Exemptions -- Duties of
             39      director.
             40          (1) (a) This section, and the rules adopted by the department to implement this section,
             41      apply to each career and noncareer state employee not specifically exempted under Subsection
             42      (2).
             43          (b) If not exempted under Subsection (2), a state employee is considered to be in
             44      classified service.
             45          (2) The following state employees are exempt from this section:
             46          (a) members of the Legislature and legislative employees;
             47          (b) members of the judiciary and judicial employees;
             48          (c) elected members of the executive branch and their direct staff who meet career
             49      service exempt criteria as defined in Subsection 67-19-15 (1)(k);
             50          (d) certificated employees of the State Board of Education;
             51          (e) officers, faculty, and other employees of state institutions of higher education;
             52          (f) employees in any position that is determined by statute to be exempt from this
             53      Subsection (2);
             54          (g) attorneys in the Office of the Attorney General;
             55          (h) department heads and other persons appointed by the governor pursuant to statute;
             56          (i) employees of the Department of Community and Economic Development whose
             57      positions are designated as executive/professional positions by the executive director of the
             58      Department of Community and Economic Development with the concurrence of the director;

             59      and
             60          (j) employees of the Medical Education Council.
             61          (3) (a) The director shall prepare, maintain, and revise a position classification plan for
             62      each employee position not exempted under Subsection (2) to provide equal pay for equal
             63      work.
             64          (b) Classification of positions shall be based upon similarity of duties performed and
             65      responsibilities assumed, so that the same job requirements and the same salary range may be
             66      applied equitably to each position in the same class.
             67          (c) The director shall allocate or reallocate the position of each employee in classified
             68      service to one of the classes in the classification plan.
             69          (d) (i) The department shall conduct periodic studies and desk audits to provide that the
             70      classification plan remains reasonably current and reflects the duties and responsibilities
             71      assigned to and performed by employees.
             72          (ii) The director shall determine the schedule for studies and desk audits after
             73      considering factors such as changes in duties and responsibilities of positions or agency
             74      reorganizations.
             75          (4) (a) With the approval of the governor, the director shall develop and adopt pay
             76      plans for each position in classified service.
             77          (b) The director shall design each pay plan to achieve, to the degree that funds permit,
             78      comparability of state salary ranges to salary ranges used by private enterprise and other public
             79      employment for similar work.
             80          (c) The director shall adhere to the following in developing each pay plan:
             81          (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
             82      differential among the various classes of positions in the classification plan.
             83          (ii) (A) The director shall assign each class of positions in the classification plan to a
             84      salary range and shall set the width of the salary range to reflect the normal growth and
             85      productivity potential of employees in that class.
             86          (B) The width of the ranges need not be uniform for all classes of positions in the plan,
             87      but each range shall contain merit steps in increments of 2.75% salary increases.
             88          (iii) (A) The director shall issue rules for the administration of pay plans.
             89          (B) The rules may provide for exceptional performance increases and for a program of

             90      incentive awards for cost-saving suggestions and other commendable acts of employees.
             91          (C) The director shall issue rules providing for salary adjustments.
             92          (iv) Merit step increases shall be granted, if funds are available, to employees who
             93      receive a rating of "successful" or higher in an annual evaluation of their productivity and
             94      performance.
             95          (v) By October 15 of each year, the director shall submit market comparability
             96      adjustments to the director of the Governor's Office of Planning and Budget for consideration
             97      to be included as part of the affected agency's base budgets.
             98          (vi) By October 31 of each year, the director shall recommend a compensation package
             99      to the governor.
             100          (vii) (A) Adjustments shall incorporate the results of a total compensation market
             101      survey of salary ranges and benefits of a reasonable cross section of comparable benchmark
             102      positions in private and public employment in the state.
             103          (B) The survey may also study comparable unusual positions requiring recruitment
             104      [outside Utah in the surrounding western] in other states.
             105          (C) The director may cooperate with other public and private employers in conducting
             106      the survey.
             107          (viii) (A) The director shall establish criteria to assure the adequacy and accuracy of the
             108      survey and shall use methods and techniques similar to and consistent with those used in
             109      private sector surveys.
             110          (B) Except as provided under Section 67-19-12.3 , the survey shall include a reasonable
             111      cross section of employers.
             112          (C) The director may cooperate with or participate in any survey conducted by other
             113      public and private employers.
             114          (D) The director shall obtain information for the purpose of constructing the survey
             115      from the Division of Workforce Information and Payment Services and shall include employer
             116      name, number of persons employed by the employer, employer contact information and job
             117      titles, county code, and salary if available.
             118          (E) The department shall acquire and protect the needed records in compliance with the
             119      provisions of Section 35A-4-312 .
             120          (ix) The establishing of a salary range is a nondelegable activity subject to Subsection

             121      67-19-8 (1) and is not appealable under the grievance procedures of Sections 67-19-30 through
             122      67-19-32 , Title 67, Chapter 19a, Grievance and Appeal Procedures, or otherwise.
             123          (x) The governor shall:
             124          (A) consider salary adjustments recommended under Subsection (4)(c)(vi) in preparing
             125      the executive budget and shall recommend the method of distributing the adjustments;
             126          (B) submit compensation recommendations to the Legislature; and
             127          (C) support the recommendation with schedules indicating the cost to individual
             128      departments and the source of funds.
             129          (xi) If funding is approved by the Legislature in a general appropriations act, the
             130      adjustments take effect on the July 1 following the enactment.
             131          (5) (a) The director shall regularly evaluate the total compensation program of state
             132      employees in the classified service.
             133          (b) The department shall determine if employee benefits are comparable to those
             134      offered by other private and public employers using information from:
             135          (i) the most recent edition of the Employee Benefits Survey Data conducted by the U.S.
             136      Chamber of Commerce Research Center; or
             137          (ii) the most recent edition of a nationally recognized benefits survey.
             138          (6) (a) The director shall submit proposals for a state employee compensation plan to
             139      the governor by October 31 of each year, setting forth findings and recommendations affecting
             140      state employee compensation.
             141          (b) The governor shall consider the director's proposals in preparing budget
             142      recommendations for the Legislature.
             143          (c) The governor's budget proposals to the Legislature shall include a specific
             144      recommendation on state employee compensation.
             145          Section 2. Section 67-19-14.3 is amended to read:
             146           67-19-14.3. Continuation of Insurance Benefits Program -- Creation -- Coverage
             147      following death in the line of duty.
             148          (1) There is created the "Continuation of [Medical and Dental] Insurance Benefits
             149      Program" to provide a continuation of [medical and dental] insurance to the surviving spouse
             150      and family of any state employee whose death occurs in the line of duty.
             151          (2) The insurance coverage shall [continue for a period of five years or until the

             152      surviving spouse becomes eligible for Medicare, whichever occurs first] be the same coverage
             153      as provided under Section 49-20-406 .
             154          (3) The program provides that unused accumulated sick leave of a deceased employee
             155      may be used for additional medical coverage in the same manner as provided under Section
             156      67-19-14.2 .

Legislative Review Note
    as of 12-15-04 10:01 AM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel

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