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H.B. 319

             1     

EXPANSION OF DEPARTMENT OF

             2     
ADMINISTRATIVE SERVICES OVERSIGHT

             3     
TO INCLUDE HUMAN RESOURCE

             4     
MANAGEMENT

             5     
2005 GENERAL SESSION

             6     
STATE OF UTAH

             7     
Sponsor: D. Gregg Buxton

             8     
             9      LONG TITLE
             10      General Description:
             11          This bill modifies provisions of the Personnel Management Act to change the
             12      Department of Human Resource Management to a division under the Department of
             13      Administrative Services.
             14      Highlighted Provisions:
             15          This bill:
             16          .    provides that the Department of Human Resource Management shall be changed to
             17      a division within the Department of Administrative Services;
             18          .    changes the name of the Department of Human Resource Management to the
             19      Division of Human Resource Management;
             20          .    provides that the Division of Human Resource Management shall be administered
             21      by a director appointed by the governor with the consent of the Senate;
             22          .    provides that the director shall be accountable to the executive director of the
             23      Department of Administrative Services;
             24          .    removes the director's discretion to appoint division directors and program
             25      managers;
             26          .    provides that the director of the Division of Human Resource Management shall be
             27      responsible for administering the human resource program for the state and for all



             28      departments;
             29          .    provides that policies set by the Division of Human Resource Management shall
             30      take precedence over conflicting policies and practices;
             31          .    eliminates the Utah Quality Service Award program;
             32          .    terminates existing procedures for performing human resource services for various
             33      departments and permits the Division of Human Resource Management to establish
             34      field offices in departments;
             35          .    eliminates the ability for departments to provide certain human resource
             36      management functions;
             37          .    provides a listing of required provisions for agreements governing field offices in
             38      departments;
             39          .    provides for allocation of the cost of department facilities, equipment, and supplies
             40      that are used by a division field office;
             41          .    requires the director of the Division of Human Resource Management to submit an
             42      annual budget request for the approval of the governor and the Legislature;
             43          .    provides the director of the Division of Human Resource Management with
             44      responsibility to design and administer the state recruitment and selection system;
             45          .    changes the date for submission of market comparability adjustments to coincide
             46      with the date that the compensation package recommendation is due; and
             47          .    makes technical changes.
             48      Monies Appropriated in this Bill:
             49          None
             50      Other Special Clauses:
             51          This bill takes effect on July 1, 2006.
             52      Utah Code Sections Affected:
             53      AMENDS:
             54          13-1a-3, as last amended by Chapter 79, Laws of Utah 1996
             55          35A-1-205, as last amended by Chapter 17, Laws of Utah 2003
             56          49-20-401, as last amended by Chapter 118, Laws of Utah 2004
             57          53-6-104, as renumbered and amended by Chapter 234, Laws of Utah 1993
             58          53A-24-114, as last amended by Chapter 352, Laws of Utah 2004



             59          53C-1-201, as last amended by Chapters 41 and 63, Laws of Utah 2004
             60          54-1-6, as last amended by Chapters 101 and 122, Laws of Utah 1988
             61          54-4a-3, as last amended by Chapter 122, Laws of Utah 1988
             62          61-1-18, as last amended by Chapter 145, Laws of Utah 2001
             63          62A-15-613, as renumbered and amended by Chapter 8, Laws of Utah 2002, Fifth
             64      Special Session
             65          63-5b-102, as last amended by Chapters 14 and 159, Laws of Utah 2002
             66          63-13-2, as last amended by Chapter 306, Laws of Utah 2000
             67          63-34-12, as last amended by Chapter 122, Laws of Utah 1988
             68          63A-1-109, as last amended by Chapter 356, Laws of Utah 2004
             69          63A-9-501, as last amended by Chapter 5, Laws of Utah 2003
             70          63A-9-801, as last amended by Chapter 209, Laws of Utah 2003
             71          67-5-7, as last amended by Chapter 122, Laws of Utah 1988
             72          67-5-9, as last amended by Chapter 122, Laws of Utah 1988
             73          67-5-12, as last amended by Chapter 191, Laws of Utah 1989
             74          67-8-3, as last amended by Chapter 250, Laws of Utah 2002
             75          67-8-5, as last amended by Chapter 214, Laws of Utah 1995
             76          67-19-3, as last amended by Chapter 7, Laws of Utah 2002
             77          67-19-3.1, as enacted by Chapter 322, Laws of Utah 2000
             78          67-19-5, as last amended by Chapter 176, Laws of Utah 2002
             79          67-19-6, as last amended by Chapter 4, Laws of Utah 2003
             80          67-19-6.7, as last amended by Chapters 82 and 375, Laws of Utah 1997
             81          67-19-11, as last amended by Chapter 122, Laws of Utah 1988
             82          67-19-12, as last amended by Chapter 16, Laws of Utah 2003
             83          67-19-12.2, as enacted by Chapter 231, Laws of Utah 2001
             84          67-19-12.5, as enacted by Chapter 200, Laws of Utah 1989
             85          67-19-12.7, as enacted by Chapter 125, Laws of Utah 1999
             86          67-19-12.9, as last amended by Chapter 14, Laws of Utah 2002, Fifth Special Session
             87          67-19-13, as enacted by Chapter 139, Laws of Utah 1979
             88          67-19-15, as last amended by Chapter 213, Laws of Utah 1997
             89          67-19-15.1, as enacted by Chapter 128, Laws of Utah 1994


             90          67-19-19, as last amended by Chapter 122, Laws of Utah 1988
             91          67-19-26, as enacted by Chapter 139, Laws of Utah 1979
             92          67-19-31, as last amended by Chapter 7, Laws of Utah 2002
             93          67-19-33, as enacted by Chapter 280, Laws of Utah 1990
             94          67-19-34, as last amended by Chapter 259, Laws of Utah 1991
             95          67-19-36, as enacted by Chapter 280, Laws of Utah 1990
             96          67-19-37, as enacted by Chapter 280, Laws of Utah 1990
             97          67-19-38, as enacted by Chapter 280, Laws of Utah 1990
             98          67-19a-303, as last amended by Chapter 204, Laws of Utah 1991
             99          67-19c-101, as last amended by Chapters 82 and 375, Laws of Utah 1997
             100          67-20-8, as last amended by Chapter 213, Laws of Utah 1997
             101          67-22-2, as last amended by Chapters 156 and 306, Laws of Utah 2004
             102          72-1-203, as renumbered and amended by Chapter 270, Laws of Utah 1998
             103      ENACTS:
             104          67-19-6.1, Utah Code Annotated 1953
             105      REPEALS:
             106          67-19-6.4, as enacted by Chapter 156, Laws of Utah 1997
             107          67-19-7, as last amended by Chapter 139, Laws of Utah 1989
             108          67-19-8, as last amended by Chapter 4, Laws of Utah 2003
             109          67-19-9, as enacted by Chapter 139, Laws of Utah 1979
             110          67-19-10, as enacted by Chapter 139, Laws of Utah 1979
             111      Uncodified Material Affected:
             112      ENACTS UNCODIFIED MATERIAL
             113     
             114      Be it enacted by the Legislature of the state of Utah:
             115          Section 1. Section 13-1a-3 is amended to read:
             116           13-1a-3. Employment and compensation of personnel -- Compensation of
             117      director.
             118          The director, with the approval of the executive director, may employ personnel
             119      necessary to carry out the duties and responsibilities of the division at salaries established by
             120      the executive director according to standards established by the [Department] Division of


             121      Human Resource Management. The executive director shall establish the salary of the director
             122      according to standards established by the [Department] Division of Human Resource
             123      Management.
             124          Section 2. Section 35A-1-205 is amended to read:
             125           35A-1-205. Workforce Appeals Board -- Chair -- Appointment -- Compensation
             126      -- Qualifications.
             127          (1) There is created the Workforce Appeals Board within the department consisting of
             128      one or more panels to hear and decide appeals from the decision of an administrative law
             129      judge.
             130          (2) (a) A panel shall consist of three impartial members appointed by the governor as
             131      follows:
             132          (i) the board chair, appointed in accordance with Subsection (5);
             133          (ii) one member appointed to represent employers; and in making this appointment,
             134      the governor shall consider nominations from employer organizations; and
             135          (iii) one member appointed to represent employees; and in making this appointment,
             136      the governor shall consider nominations from employee organizations.
             137          (b) No more than two members of a panel may belong to the same political party.
             138          (3) (a) (i) The term of a member shall be six years beginning on March 1 of the year
             139      the member is appointed, except as otherwise provided in Subsection (3)(a)(ii).
             140          (ii) The governor shall, at the time of appointment or reappointment, adjust the length
             141      of terms to ensure that the terms of members are staggered so that approximately one third of
             142      the members are appointed every two years.
             143          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             144      appointed for the unexpired term.
             145          (c) The governor may remove a member for inefficiency, neglect of duty, malfeasance
             146      or misfeasance in office, or other good and sufficient cause.
             147          (d) A member shall hold office until a successor is appointed and has qualified.
             148          (4) (a) Except as provided in Subsection (4)(c), a member of the board may not receive
             149      compensation for the member's services, but may receive per diem and expenses incurred in the
             150      performance of the member's official duties at the rates established by the Division of Finance
             151      under Sections 63A-3-106 and 63A-3-107 .


             152          (b) A member may decline to receive per diem and expenses for the member's service.
             153          (c) The member appointed as board chair in accordance with Subsection (5) shall be
             154      compensated at an hourly rate determined by the [Department] Division of Human Resource
             155      Management in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
             156          (5) (a) The chief officer of the board shall be the chair, who shall serve as the executive
             157      and administrative head of the board.
             158          (b) The chair shall be appointed by the governor to represent the public and may be
             159      removed from that position at the will of the governor.
             160          (c) The chair shall be experienced in administration and possess any additional
             161      qualifications determined by the governor.
             162          (6) (a) The chair shall designate an alternate from a panel appointed under this section:
             163          (i) in the absence of a regular member or the chair; or
             164          (ii) if the regular member or the chair has a conflict of interest.
             165          (b) Each case shall be decided by a full three-member panel.
             166          (7) The department shall provide the Workforce Appeals Board necessary staff
             167      support, except, the board may employ, retain, or appoint legal counsel.
             168          Section 3. Section 49-20-401 is amended to read:
             169           49-20-401. Program -- Powers and duties.
             170          (1) The program shall:
             171          (a) act as a self-insurer of employee benefit plans and administer those plans;
             172          (b) enter into contracts with private insurers or carriers to underwrite employee benefit
             173      plans as considered appropriate by the program;
             174          (c) indemnify employee benefit plans or purchase commercial reinsurance as
             175      considered appropriate by the program;
             176          (d) provide descriptions of all employee benefit plans under this chapter in cooperation
             177      with covered employers;
             178          (e) process claims for all employee benefit plans under this chapter or enter into
             179      contracts, after competitive bids are taken, with other benefit administrators to provide for the
             180      administration of the claims process;
             181          (f) obtain an annual actuarial review of all health and dental benefit plans and a
             182      periodic review of all other employee benefit plans;


             183          (g) consult with the covered employers to evaluate employee benefit plans and develop
             184      recommendations for benefit changes;
             185          (h) annually submit a budget and audited financial statements to the governor and
             186      Legislature which includes total projected benefit costs and administrative costs;
             187          (i) maintain reserves sufficient to liquidate the unrevealed claims liability and other
             188      liabilities of the employee benefit plans as certified by the program's consulting actuary;
             189          (j) submit its recommended benefit adjustments for state employees to the director of
             190      the state [Department] Division of Human Resource Management;
             191          (k) determine benefits and rates, upon approval of the board, for multiemployer risk
             192      pools, retiree coverage, and conversion coverage;
             193          (l) determine benefits and rates, upon approval of the board and the Legislature, for
             194      state employees;
             195          (m) administer benefits and rates, upon ratification of the board, for single employer
             196      risk pools;
             197          (n) request proposals for provider networks or health and dental benefit plans
             198      administered by third party carriers at least once every three years for the purposes of:
             199          (i) stimulating competition for the benefit of covered individuals;
             200          (ii) establishing better geographical distribution of medical care services; and
             201          (iii) providing coverage for both active and retired covered individuals;
             202          (o) offer proposals which meet the criteria specified in a request for proposals and
             203      accepted by the program to active and retired state covered individuals and which may be
             204      offered to active and retired covered individuals of other covered employers at the option of the
             205      covered employer;
             206          (p) perform the same functions established in Subsections (1)(a), (b), (e), and (h) for
             207      the Department of Health if the program provides program benefits to children enrolled in the
             208      Utah Children's Health Insurance Program created in Title 26, Chapter 40, Utah Children's
             209      Health Insurance Act;
             210          (q) establish rules and procedures governing the admission of political subdivisions or
             211      educational institutions and their employees to the program;
             212          (r) contract directly with medical providers to provide services for covered individuals;
             213      and


             214          (s) take additional actions necessary or appropriate to carry out the purposes of this
             215      chapter.
             216          (2) (a) Funds budgeted and expended shall accrue from rates paid by the covered
             217      employers and covered individuals.
             218          (b) Administrative costs shall be approved by the board and reported to the governor
             219      and the Legislature.
             220          (3) The [Department] Division of Human Resource Management shall include the
             221      benefit adjustments described in Subsection (1)(j) in the total compensation plan recommended
             222      to the governor required under Subsection 67-19-12 (6)(a).
             223          Section 4. Section 53-6-104 is amended to read:
             224           53-6-104. Appointment of director of division -- Qualifications -- Appointment of
             225      employees -- Term of office -- Compensation.
             226          (1) The commissioner, upon recommendation of the council and with the approval of
             227      the governor, shall appoint a director of the division.
             228          (2) The director is the executive and administrative head of the division and shall be
             229      experienced in administration and possess additional qualifications as determined by the
             230      commissioner and as provided by law.
             231          (3) The director shall be a full-time officer of the state.
             232          (4) The director may appoint deputies, consultants, clerks, and other employees from
             233      eligibility lists authorized by the [Department] Division of Human Resource Management.
             234          (5) The director may be removed from his position at the will of the commissioner.
             235          (6) The director shall receive compensation as provided by Title 67, Chapter 19, Utah
             236      State Personnel Management Act.
             237          Section 5. Section 53A-24-114 is amended to read:
             238           53A-24-114. Governor's Committee on Employment of People with Disabilities.
             239          (1) There is created the Governor's Committee on Employment of People with
             240      Disabilities.
             241          (2) (a) The State Board of Education shall appoint at least twelve members to the
             242      committee.
             243          (b) The State Board of Education shall ensure that the committee includes members
             244      from the public and private sectors who represent:


             245          (i) business and industry;
             246          (ii) individuals with disabilities and their advocates;
             247          (iii) job training and placement;
             248          (iv) [state agencies] administrative subunits of the state, such as the [Department]
             249      Division of Human Resource Management, the Department of Workforce Services, Public
             250      Education, Higher Education, and the Department of Human Services;
             251          (v) labor;
             252          (vi) veterans;
             253          (vii) medical;
             254          (viii) health;
             255          (ix) insurance;
             256          (x) media; and
             257          (xi) the general public.
             258          (c) (i) Except as provided in Subsection (2)(c)(ii), the State Board of Education shall
             259      appoint committee members to serve four-year terms.
             260          (ii) In making the initial appointments to the committee, the State Board of Education
             261      shall appoint approximately 1/2 of the members to two-year terms and 1/2 of the members to
             262      four-year terms.
             263          (d) Committee members shall serve until their successors are appointed and qualified.
             264          (e) The State Board of Education shall fill any vacancy that occurs on the committee
             265      for any reason by appointing a person according to the procedures of this section for the
             266      unexpired term of the vacated member.
             267          (f) The State Board of Education shall select a chair from the membership.
             268          (g) Seven members of the committee are a quorum for the transaction of business.
             269          (3) (a) The committee shall:
             270          (i) promote employment opportunities for individuals with disabilities;
             271          (ii) serve as the designated state liaison to the President's Committee on Employment
             272      of People with Disabilities;
             273          (iii) provide training and technical assistance to employers in implementing the
             274      Americans with Disabilities Act;
             275          (iv) develop and disseminate appropriate information through workshops, meetings,


             276      and other requests in response to needs to employers and others regarding employment of
             277      individuals with disabilities;
             278          (v) establish contacts with various community representatives to identify and resolve
             279      barriers to full participation in employment and community life;
             280          (vi) formally recognize exemplary contributions in the areas of employment, job
             281      placement, training, rehabilitation, support services, medicine, media or public relations, and
             282      personal achievements made by individuals with disabilities;
             283          (vii) advise, encourage, and motivate individuals with disabilities who are preparing
             284      for or seeking employment to reach their full potential as qualified employees;
             285          (viii) advocate for policies and practices that promote full and equal rights for
             286      individuals with disabilities;
             287          (ix) advise the State Board of Education and the governor on issues that affect
             288      employment and other requests for information on disability issues;
             289          (x) prepare an annual report on the progress, accomplishments, and future goals of the
             290      committee and present the report to the State Board of Education and the governor; and
             291          (xi) establish and maintain a cooperative liaison between the governor's office, the
             292      executive director of the committee, and the executive director of the Utah State Office of
             293      Rehabilitation to fulfill the committee's purpose.
             294          (b) The committee may, by following the procedures and requirements of Title 63,
             295      Chapter 38e, Federal Funds Procedures, receive and accept federal funds, and may receive and
             296      accept state funds, private gifts, donations, and funds from any source to carry out its purposes.
             297          (4) The director of the State Office of Rehabilitation shall appoint a person to staff the
             298      committee.
             299          Section 6. Section 53C-1-201 is amended to read:
             300           53C-1-201. Creation of administration -- Purpose -- Director.
             301          (1) (a) There is established within state government the School and Institutional Trust
             302      Lands Administration.
             303          (b) The administration shall manage all school and institutional trust lands and assets
             304      within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
             305      of Revenue from Trust Lands, and Section 51-7-12 .
             306          (2) The administration is an independent state agency and not a division of any other


             307      department.
             308          (3) (a) It is subject to the usual legislative and executive department controls except as
             309      provided in this Subsection (3).
             310          (b) (i) The director may make rules as approved by the board that allow the
             311      administration to classify a business proposal submitted to the administration as protected
             312      under Section 63-2-304 , for as long as is necessary to evaluate the proposal.
             313          (ii) The administration shall return the proposal to the party who submitted the
             314      proposal, and incur no further duties under Title 63, Chapter 2, Government Records Access
             315      and Management Act, if the administration determines not to proceed with the proposal.
             316          (iii) The administration shall classify the proposal pursuant to law if it decides to
             317      proceed with the proposal.
             318          (iv) Section 63-2-403 does not apply during the review period.
             319          (c) The director shall make rules in compliance with Title 63, Chapter 46a, Utah
             320      Administrative Rulemaking Act, except that the director, with the board's approval, may
             321      establish a procedure for the expedited approval of rules, based on written findings by the
             322      director showing:
             323          (i) the changes in business opportunities affecting the assets of the trust;
             324          (ii) the specific business opportunity arising out of those changes which may be lost
             325      without the rule or changes to the rule;
             326          (iii) the reasons the normal procedures under Section 63-46a-4 cannot be met without
             327      causing the loss of the specific opportunity;
             328          (iv) approval by at least five board members; and
             329          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
             330      reasons and justifications for its findings, with the Division of Administrative Rules and
             331      notified interested parties as provided in Subsection 63-46a-4 (7).
             332          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
             333      Management Act, except as provided in this Subsection (3)(d).
             334          (ii) The board may approve, upon recommendation of the director, that exemption for
             335      specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
             336      the administration to efficiently fulfill its responsibilities under the law. The director shall
             337      consult with the director of the [Department] Division of Human Resource Management prior


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


             369      accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, to implement
             370      policies provided by the board regarding Native American remains.
             371          (6) In connection with joint ventures for the development of trust lands and minerals
             372      approved by the board under Sections 53C-1-303 and 53C-2-401 , the administration may
             373      become a member of a limited liability company under Title 48, Chapter 2c, Utah Revised
             374      Limited Liability Company Act, and is considered a person under Section 48-2c-102 .
             375          Section 7. Section 54-1-6 is amended to read:
             376           54-1-6. Employment of staff -- Status and compensation -- Employees not to be
             377      parties or witnesses and may not appeal commission decisions.
             378          (1) The annual budget of the Public Service Commission shall provide sufficient funds
             379      for the commission to hire, develop, and organize an advisory staff to assist the commission in
             380      performing the powers, duties, and functions committed to it by statute.
             381          (a) The commission may hire:
             382          (i) economists, accountants, engineers, statisticians, lawyers, law clerks, and other
             383      professional and technical experts;
             384          (ii) court reporters, transcribers of tape recordings, clerks, secretaries, and other
             385      administrative and support staff;
             386          (iii) additional experts as required for a particular matter; and
             387          (iv) administrative law judges, who shall be members of the Utah State Bar, and
             388      constitute a separate organizational unit reporting directly to the commission.
             389          (b) The commission may provide for funds in the annual budget to acquire suitable
             390      electronic recording equipment to maintain a verbatim record of proceedings before the
             391      commission, any commissioner, or any administrative law judge.
             392          (2) (a) With the exception of clerical workers in nonconfidential positions, all staff of
             393      the Public Service Commission are exempt employees under the State Personnel Management
             394      Act and serve at the pleasure of the commission.
             395          (b) Administrative law judges are exempt employees under the State Personnel
             396      Management Act and may only be removed from office upon due notice and by a unanimous
             397      vote of the commission.
             398          (c) (i) The [Department] Division of Human Resource Management shall determine
             399      pay schedules using standard techniques for determining compensation.


             400          (ii) The [Department] Division of Human Resource Management may make its
             401      compensation determinations based upon compensation practices common to utility companies
             402      throughout the United States.
             403          (3) (a) The staff or other employees of the commission may not appear as parties or
             404      witnesses in any proceeding before the commission, any commissioner, or any administrative
             405      law judge.
             406          (b) The staff or other employees of the commission may not appeal any finding, order,
             407      or decision of the commission.
             408          Section 8. Section 54-4a-3 is amended to read:
             409           54-4a-3. Budget of division -- Employment of personnel.
             410          (1) The annual budget of the Division of Public Utilities shall provide sufficient funds
             411      for the division to hire, develop, and organize a technical and professional staff to perform the
             412      duties, powers, and responsibilities committed to it by statute.
             413          (2) The division director may:
             414          (a) hire economists, accountants, engineers, inspectors, statisticians, lawyers, law
             415      clerks, and other technical and professional experts as may be required;
             416          (b) retain additional experts as required for a particular matter, but only to the extent
             417      that it is necessary to supplement division staff in order to fulfill its duties; and
             418          (c) employ necessary administrative and support staff.
             419          (3) (a) The [Department] Division of Human Resource Management shall determine
             420      pay schedules using standard techniques for determining compensation.
             421          (b) The [Department] Division of Human Resource Management may make its
             422      compensation determinations based upon compensation common to utility companies
             423      throughout the United States.
             424          Section 9. Section 61-1-18 is amended to read:
             425           61-1-18. Division of Securities established -- Director -- Appointment -- Functions
             426      -- Investigators.
             427          (1) (a) There is established within the Department of Commerce a Division of
             428      Securities.
             429          (b) The division shall be under the direction and control of a director, appointed by the
             430      executive director with the governor's approval.


             431          (c) The director shall be responsible for the administration and enforcement of this
             432      chapter.
             433          (d) The director shall hold office at the pleasure of the governor.
             434          (2) The director, with the approval of the executive director, may employ such staff as
             435      necessary to discharge the duties of the division at salaries to be fixed by the director according
             436      to standards established by the [Department] Division of Human Resource Management.
             437          (3) An investigator employed pursuant to Subsection (2) who meets the training
             438      requirements of Subsection 53-13-105 (3) may be designated a special function officer, as
             439      defined in Section 53-13-105 , by the director, but is not eligible for retirement benefits under
             440      the Public Safety Employee's Retirement System.
             441          Section 10. Section 62A-15-613 is amended to read:
             442           62A-15-613. Appointment of superintendent -- Qualifications -- Powers and
             443      responsibilities.
             444          (1) The director, with the advice and consent of the board and the approval of the
             445      executive director, shall appoint a superintendent of the state hospital, who shall hold office at
             446      the will of the director.
             447          (2) The superintendent shall have a bachelor's degree from an accredited university or
             448      college, be experienced in administration, and be knowledgeable in matters concerning mental
             449      health.
             450          (3) Subject to the rules of the board, the superintendent has general responsibility for
             451      the buildings, grounds, and property of the state hospital. The superintendent shall appoint,
             452      with the approval of the director, as many employees as necessary for the efficient and
             453      economical care and management of the state hospital, and shall fix their compensation and
             454      administer personnel functions according to the standards of the [Department] Division of
             455      Human Resource Management.
             456          Section 11. Section 63-5b-102 is amended to read:
             457           63-5b-102. Definitions.
             458          (1) (a) "Absent" means:
             459          (i) not physically present or not able to be communicated with for 48 hours; or
             460          (ii) for local government officers, as defined by local ordinances.
             461          (b) "Absent" does not include a person who can be communicated with via telephone,


             462      radio, or telecommunications.
             463          (2) "Attack" means a nuclear, conventional, biological, or chemical warfare action
             464      against the United States of America or this state.
             465          (3) "Department" means the Department of Administrative Services, the Department of
             466      Agriculture and Food, the Alcoholic Beverage Control Commission, the Department of
             467      Commerce, the Department of Community and Economic Development, the Department of
             468      Corrections, the Department of Environmental Quality, the Department of Financial
             469      Institutions, the Department of Health, [the Department of Human Resource Management,] the
             470      Department of Workforce Services, the Labor Commission, the National Guard, the
             471      Department of Insurance, the Department of Natural Resources, the Department of Public
             472      Safety, the Public Service Commission, the Department of Human Services, the State Tax
             473      Commission, the Department of Transportation, any other major administrative subdivisions of
             474      state government, the State Board of Education, the State Board of Regents, the Utah Housing
             475      Corporation, the Utah Technology Finance Corporation, the Workers' Compensation Fund, the
             476      State Retirement Board, and each institution of higher education within the system of higher
             477      education.
             478          (4) "Disaster" means a situation causing, or threatening to cause, widespread damage,
             479      social disruption, or injury or loss of life or property resulting from attack, internal disturbance,
             480      natural phenomenon, or technological hazard.
             481          (5) "Division" means the Division of Emergency Services and Homeland Security
             482      established in Title 53, Chapter 2, Emergency Services and Homeland Security Act.
             483          (6) "Emergency interim successor" means a person designated by this chapter to
             484      exercise the powers and discharge the duties of an office when the person legally exercising the
             485      powers and duties of the office is unavailable.
             486          (7) "Executive director" means the person with ultimate responsibility for managing
             487      and overseeing the operations of each department, however denominated.
             488          (8) "Internal disturbance" means a riot, prison break, disruptive terrorism, or strike.
             489          (9) "Natural phenomenon" means any earthquake, tornado, storm, flood, landslide,
             490      avalanche, forest or range fire, drought, epidemic, or other catastrophic event.
             491          (10) (a) "Office" includes all state and local offices, the powers and duties of which are
             492      defined by constitution, statutes, charters, optional plans, ordinances, articles, or by-laws.


             493          (b) "Office" does not include the office of governor or the legislative or judicial offices.
             494          (11) "Place of governance" means the physical location where the powers of an office
             495      are being exercised.
             496          (12) "Political subdivision" includes counties, cities, towns, townships, districts,
             497      authorities, and other public corporations and entities whether organized and existing under
             498      charter or general law.
             499          (13) "Political subdivision officer" means a person holding an office in a political
             500      subdivision.
             501          (14) "State officer" means the attorney general, the state treasurer, the state auditor, and
             502      the executive director of each department.
             503          (15) "Technological hazard" means any hazardous materials accident, mine accident,
             504      train derailment, air crash, radiation incident, pollution, structural fire, or explosion.
             505          (16) "Unavailable" means:
             506          (a) absent from the place of governance during a disaster that seriously disrupts normal
             507      governmental operations, whether or not that absence or inability would give rise to a vacancy
             508      under existing constitutional or statutory provisions; or
             509          (b) as otherwise defined by local ordinance.
             510          Section 12. Section 63-13-2 is amended to read:
             511           63-13-2. Legal holidays -- Personal preference day -- Governor authorized to
             512      declare additional days.
             513          (1) (a) The following-named days are legal holidays in this state:
             514          (i) every Sunday;
             515          (ii) January 1, called New Year's Day;
             516          (iii) the third Monday of January, called Dr. Martin Luther King, Jr. Day;
             517          (iv) the third Monday of February, called Washington and Lincoln Day;
             518          (v) the last Monday of May, called Memorial Day;
             519          (vi) July 4, called Independence Day;
             520          (vii) July 24, called Pioneer Day;
             521          (viii) the first Monday of September, called Labor Day;
             522          (ix) the second Monday of October, called Columbus Day;
             523          (x) November 11, called Veterans' Day;


             524          (xi) the fourth Thursday of November, called Thanksgiving Day;
             525          (xii) December 25, called Christmas; and
             526          (xiii) all days which may be set apart by the President of the United States, or the
             527      governor of this state by proclamation as days of fast or thanksgiving.
             528          (b) If any of the holidays under Subsection (1)(a), except the first mentioned, namely
             529      Sunday, falls on Sunday, then the following Monday shall be the holiday.
             530          (c) If any of the holidays under Subsection (1)(a) falls on Saturday the preceding Friday
             531      shall be the holiday.
             532          (d) Each employee may select one additional day, called Personal Preference Day, to
             533      be scheduled pursuant to rules adopted by the [Department] Division of Human Resource
             534      Management.
             535          (2) (a) Whenever in his opinion extraordinary conditions exist justifying the action, the
             536      governor may:
             537          (i) declare, by proclamation, legal holidays in addition to those holidays under
             538      Subsection (1); and
             539          (ii) limit the holidays to certain classes of business and activities to be designated by
             540      him.
             541          (b) A holiday may not extend for a longer period than 60 consecutive days.
             542          (c) Any holiday may be renewed for one or more periods not exceeding 30 days each as
             543      the governor may consider necessary, and any holiday may, by like proclamation, be terminated
             544      before the expiration of the period for which it was declared.
             545          Section 13. Section 63-34-12 is amended to read:
             546           63-34-12. Approval prerequisite to volunteer service -- Rules and regulations.
             547          (1) Volunteers may not donate any service to the Department of Natural Resources or
             548      its divisions unless and until the work program in which volunteers would serve has first been
             549      approved, in writing, by the executive director of the Department of Natural Resources and the
             550      [Department] director of the Division of Human Resource Management.
             551          (2) Volunteer services shall comply with any rules adopted by the [Department]
             552      Division of Human Resource Management relating to that service that are not inconsistent with
             553      the provisions of Sections 63-34-9 through 63-34-12 .
             554          Section 14. Section 63A-1-109 is amended to read:


             555           63A-1-109. Divisions of department -- Administration.
             556          (1) The department shall be composed of the following divisions:
             557          (a) administrative rules;
             558          (b) archives and records;
             559          (c) facilities construction and management;
             560          (d) finance;
             561          (e) fleet operations;
             562          (f) information technology services;
             563          (g) office of state debt collection;
             564          (h) state purchasing and general services;
             565          (i) risk management; [and]
             566          (j) office of child welfare parental defense[.]; and
             567          (k) human resource management.
             568          (2) Each division shall be administered and managed by a division director.
             569          Section 15. Section 63A-9-501 is amended to read:
             570           63A-9-501. Complaints about misuse or illegal operation of state vehicles --
             571      Disposition.
             572          (1) The division shall refer complaints from the public about misuse or illegal
             573      operation of state vehicles to the agency that is the owner or lessor of the vehicle.
             574          (2) Each agency head or his designee shall investigate all complaints about misuse or
             575      illegal operation of state vehicles and shall discipline each employee that is found to have
             576      misused or illegally operated a vehicle by following the procedures set forth in the rules
             577      adopted by the [Department] Division of Human Resource Management as authorized by
             578      Section 67-19-18 .
             579          (3) (a) Each agency shall report the findings of each investigation conducted as well as
             580      any action taken as a result of the investigation to the directors of the Divisions of Fleet
             581      Operations and Risk Management.
             582          (b) Misuse or illegal operation of state vehicles may result in suspension or revocation
             583      of state vehicle driving privileges as governed in rule.
             584          Section 16. Section 63A-9-801 is amended to read:
             585           63A-9-801. State surplus property program -- Definitions -- Administration.


             586          (1) As used in this section:
             587          (a) "Agency" means:
             588          (i) the Utah Departments of Administrative Services, Agriculture, Alcoholic Beverage
             589      Control, Commerce, Community and Economic Development, Corrections, Workforce
             590      Services, Health, [Human Resource Management,] Human Services, Insurance, Natural
             591      Resources, Public Safety, and Transportation and the Labor Commission;
             592          (ii) the Utah Offices of the Auditor, Attorney General, Court Administrator, Crime
             593      Victim Reparations, Rehabilitation, and Treasurer;
             594          (iii) the Public Service Commission and State Tax Commission;
             595          (iv) the State Boards of Education, Pardons and Parole, and Regents;
             596          (v) the Career Service Review Board;
             597          (vi) other state agencies designated by the governor;
             598          (vii) the legislative branch, the judicial branch, and the State Board of Regents; and
             599          (viii) an institution of higher education, its president, and its board of trustees for
             600      purposes of Section 63A-9-802 .
             601          (b) "Division" means the Division of Fleet Operations.
             602          (c) "Information technology equipment" means any equipment that is designed to
             603      electronically manipulate, store, or transfer any form of data.
             604          (d) "Inventory property" means property in the possession of the division that is
             605      available for purchase by an agency or the public.
             606          (e) "Judicial district" means the geographic districts established by Section 78-1-2.1 .
             607          (f) (i) "Surplus property" means property purchased by, seized by, or donated to, an
             608      agency that the agency wishes to dispose of.
             609          (ii) "Surplus property" does not mean real property.
             610          (g) "Transfer" means transfer of surplus property without cash consideration.
             611          (2) (a) The division shall make rules establishing a state surplus property program that
             612      meets the requirements of this chapter by following the procedures and requirements of Title
             613      63, Chapter 46a, Utah Administrative Rulemaking Act.
             614          (b) Those rules shall include:
             615          (i) a requirement prohibiting the transfer of surplus property from one agency to
             616      another agency without written approval from the division;


             617          (ii) procedures and requirements governing division administration requirements that
             618      an agency must follow;
             619          (iii) requirements governing purchase priorities;
             620          (iv) requirements governing accounting, reimbursement, and payment procedures;
             621          (v) procedures for collecting bad debts;
             622          (vi) requirements and procedures for disposing of firearms;
             623          (vii) the elements of the rates or other charges assessed by the division for services and
             624      handling;
             625          (viii) procedures governing the timing and location of public sales of inventory
             626      property; and
             627          (ix) procedures governing the transfer of information technology equipment by state
             628      agencies directly to public schools.
             629          (c) The division shall report all transfers of information technology equipment by state
             630      agencies to public schools to the Utah Technology Commission and to the Legislative Interim
             631      Education Committee at the end of each fiscal year.
             632          (3) In creating and administering the program, the division shall:
             633          (a) when conditions, inventory, and demand permit:
             634          (i) establish facilities to store inventory property at geographically dispersed locations
             635      throughout the state; and
             636          (ii) hold public sales of property at geographically dispersed locations throughout the
             637      state;
             638          (b) establish, after consultation with the agency requesting the sale of surplus property,
             639      the price at which the surplus property shall be sold; and
             640          (c) transfer proceeds arising from the sale of state surplus property to the agency
             641      requesting the sale in accordance with Title 63, Chapter 38, Budgetary Procedures Act, less an
             642      amount established by the division by rule to pay the costs of administering the surplus
             643      property program.
             644          (4) Unless specifically exempted from this chapter by explicit reference to this chapter,
             645      each state agency shall dispose of and acquire surplus property only by participating in the
             646      division's program.
             647          Section 17. Section 67-5-7 is amended to read:


             648           67-5-7. Establishment of career service system.
             649          (1) The purpose of this chapter is to establish a career service system for attorneys
             650      employed by the Office of the Attorney General that will attract and retain attorneys of proven
             651      ability and experience who will devote their full time to the service of the state.
             652          (2) The Office of the Attorney General may adopt rules necessary to implement this
             653      chapter, including personnel and work rules different from those promulgated by the
             654      [Department] Division of Human Resource Management.
             655          Section 18. Section 67-5-9 is amended to read:
             656           67-5-9. Reassignment of career status attorneys -- Additional compensation for
             657      managerial assignments -- Employment of special assistant attorneys general --
             658      Termination of attorneys -- Salary increases.
             659          This chapter does not affect the authority of the attorney general to:
             660          (1) assign and reassign attorneys in a career status to different positions on his staff.
             661      The salary of an attorney reassigned to a different position shall not be decreased by reason of
             662      reassignment; except that if the attorney reassigned occupies the position of deputy attorney
             663      general, the salary may be reduced by not more than 15% upon the assignment to a different
             664      position;
             665          (2) develop, with the assistance of the [Department] Division of Human Resource
             666      Management, a plan for additional compensation for career status attorneys who accept
             667      managerial assignments within the office. The provisions of Subsection (1) notwithstanding,
             668      the attorney general may discontinue any additional compensation if the attorney no longer
             669      holds a managerial assignment. Additional compensation provided under this section shall be
             670      determined by the attorney general pursuant to the plan developed by the Office of the Attorney
             671      General. At such time as the attorney no longer holds a managerial assignment, and the
             672      attorney general decides to discontinue any additional compensation, the reduction may not
             673      place the attorney at a salary below where the attorney would be through normal salary
             674      increases if the attorney had not been in a managerial position;
             675          (3) employ special assistant attorneys general, who shall not be subject to this chapter,
             676      to represent the state in particular lawsuits or to handle particular legal matters for the state;
             677          (4) terminate the employment of any attorney employed by the Office of the Attorney
             678      General who is not in a career service status;


             679          (5) establish the salary or determine salary increases of any attorney under this chapter.
             680          Section 19. Section 67-5-12 is amended to read:
             681           67-5-12. Dismissal of career status attorneys -- Causes -- Procedure -- Retention
             682      roster -- Reappointment register.
             683          (1) (a) Attorneys in a career status may be dismissed only:
             684          (i) to advance the good of public service;
             685          (ii) where funds have expired or work no longer exists; or
             686          (iii) for causes such as dishonesty, inefficiency, insubordination, disloyalty to the
             687      orders of a superior, misfeasance, malfeasance, or nonfeasance in office.
             688          (b) Attorneys in career status may not be dismissed for reasons of race, national origin,
             689      religion, or political affiliation.
             690          (2) Except in aggravated cases of misconduct, no attorney in a career status may be
             691      demoted or dismissed without the following procedures:
             692          (a) The attorney general shall notify the attorney of the reasons for demotion or
             693      dismissal.
             694          (b) The attorney shall have an opportunity to reply and have the reply considered by the
             695      attorney general.
             696          (c) The attorney shall have an opportunity to be heard by the attorney general or his
             697      designated representatives.
             698          (d) Following a hearing, an attorney may be demoted or dismissed if the attorney
             699      general finds adequate reason.
             700          (e) If the attorney general finds that retention of an attorney would endanger the peace
             701      and safety of others or pose a grave threat to the public interest, the attorney may be summarily
             702      suspended pending administrative hearings and a review by the Career Service Review Board.
             703          (3) (a) An attorney in a career status who is aggrieved by a decision of the attorney
             704      general to either dismiss or demote may appeal the decision to the Career Service Review
             705      Board or its hearing officers by following the procedures in Title 67, Chapter 19a, Grievance
             706      and Appeal Procedures.
             707          (b) Matters other than dismissal or demotion may be appealed to and reviewed by the
             708      attorney general or a designated representative whose decision is final with no right of appeal
             709      to the Career Service Review Board or its hearing officers.


             710          (4) Disciplinary actions shall be supported by credible evidence, but the normal rules
             711      of evidence in courts of law do not apply in hearings before the attorney general or the Career
             712      Service Review Board or its hearing officers.
             713          (5) (a) Reductions in force required by reinstatement of an attorney under Section
             714      67-5-11 , inadequate funds, change of workload, or lack of work shall be governed by a
             715      retention roster to be maintained by the director of the [Department] Division of Human
             716      Resource Management and the requirements of this Subsection (5).
             717          (b) Attorneys not in a career status shall be separated before any attorney in a career
             718      status.
             719          (c) Retention points for each attorney in a career status shall be based on [his] the
             720      attorney's seniority in service as an attorney in the Office of the Attorney General, including
             721      any military service fulfilled subsequent to [his] the attorney's original appointment.
             722          (d) Attorneys in career status shall be separated in the order of their retention points,
             723      the attorney with the lowest points to be discharged first.
             724          (e) Those attorneys who are serving in other positions under Section 67-5-11 shall:
             725          (i) have retention points determined as if they were working for the office; and
             726          (ii) be separated in the order of the retention points as if they were working in the
             727      Office of the Attorney General.
             728          (f) An attorney in a career status who is separated by reason of a reduction in force
             729      shall be:
             730          (i) placed on a reappointment register kept by the director of the [Department] Division
             731      of Human Resource Management for one year; and
             732          (ii) offered reappointment to a position in the Office of the Attorney General before
             733      any attorney not having a career status is appointed.
             734          Section 20. Section 67-8-3 is amended to read:
             735           67-8-3. Compensation plan for appointive officers -- Exceptions -- Legislative
             736      approval -- Career status attorneys.
             737          (1) (a) The director of the [Department] Division of Human Resource Management,
             738      based upon recommendations of the Executive and Judicial Compensation Commission shall,
             739      before October 31 of each year, recommend to the governor a compensation plan for appointed
             740      officers of the state except those officers whose compensation is set under Section 49-11-203 ,


             741      53A-1-301 , 53B-1-105 , or 53C-1-301 .
             742          (b) The plan shall include salaries and wages, paid leave, group insurance plans,
             743      retirement programs, and any other benefits that may be offered to state officers.
             744          (2) The governor shall include in each annual budget proposal to the Legislature
             745      specific recommendations on compensation for those appointed state officers in Subsection (1).
             746          (3) (a) After consultation with the attorney general, the director of the [Department]
             747      Division of Human Resource Management shall place career status attorneys on a state salary
             748      schedule at a range comparable with salaries paid attorneys in private and other public
             749      employment.
             750          (b) The attorney general and the director shall take into consideration the experience of
             751      the attorney, length of service with the Office of the Attorney General, quality of performance,
             752      and responsibility involved in legal assignments.
             753          (c) The attorney general and the director shall periodically adjust the salary levels for
             754      attorneys in a career status to reasonably compensate them for full-time employment and the
             755      restrictions placed on the private practice of law.
             756          Section 21. Section 67-8-5 is amended to read:
             757           67-8-5. Duties of commission -- Salary recommendations.
             758          (1) (a) The commission shall recommend to the Legislature salaries for:
             759          (i) the governor, the lieutenant governor, the attorney general, the state auditor, and the
             760      state treasurer; and
             761          (ii) justices of the Supreme Court and judges of the constitutional and statutory courts
             762      of record.
             763          (b) The commission shall recommend to the Legislature salary ranges for the other
             764      state officers referred to in Article VII, Section 18, and enumerated in Title 67, Chapter 22,
             765      State Officer Compensation.
             766          (2) As used in this section and for the purposes of compensation in Title 67, Chapter
             767      22, State Officer Compensation, "state officer" means an individual at the executive level in
             768      state government. The term includes:
             769          (a) the governor, the lieutenant governor, the attorney general, the state auditor, and the
             770      state treasurer;
             771          (b) justices of the Supreme Court and judges of all constitutional and statutory courts


             772      of record; and
             773          (c) full-time commissioners and executive directors of executive branch departments
             774      appointed by the governor or with his approval, who report directly to the governor, and who
             775      are enumerated in Section 67-22-2 .
             776          (3) The commission shall:
             777          (a) make studies and formulate recommendations concerning the wage and salary
             778      classification plan based upon factors such as educational requirements, experience,
             779      responsibility, accountability for funds and staff, comparisons with wages paid in other
             780      comparable public and private employment within this state, and other states similarly situated,
             781      and any other factors generally used in similar comprehensive wage and salary classification
             782      plans so that the plan and its administration reflect current conditions at all times;
             783          (b) consult and advise with, and make recommendation to, the [Department] Division
             784      of Human Resource Management regarding the plan, its administration, and the position of any
             785      officer covered by the plan;
             786          (c) submit to the Executive Appropriations Committee not later than 60 days before
             787      commencement of each annual general session:
             788          (i) a report briefly summarizing its activities during the calendar year immediately
             789      preceding the session;
             790          (ii) recommendations concerning revisions, modifications, or changes, if any, which
             791      should be made in the plan, its administration, or in the classification of any officer under the
             792      plan; and
             793          (iii) specific recommendations regarding the office of governor, lieutenant governor,
             794      attorney general, state auditor, and state treasurer concerning adjustments, if any, that should be
             795      made in the salary or other emoluments of office so that all executive and judicial officers,
             796      elected or appointed, receive equitable and consistent treatment regardless of whether salaries
             797      are fixed by the Legislature or by the [Department] Division of Human Resource Management;
             798      and
             799          (d) conduct a comprehensive review of judicial salary levels and make
             800      recommendations for judicial salaries in a report to the president of the Senate, the speaker of
             801      the House of Representatives, and the governor by November 1, prior to the convening of the
             802      general session of the Legislature in each odd-numbered year.


             803          (4) (a) The recommendation under Subsection (3)(d) shall be based upon consultation
             804      with the Judicial Council and upon consideration for the career status of judges. It shall be
             805      based upon comparisons with salaries paid in other states and in comparable public and private
             806      employment within this state.
             807          (b) In even-numbered years, the commission shall update its prior report, based upon
             808      the Consumer Price Index and other relevant factors, and shall forward its updated
             809      recommendations as prescribed in this section.
             810          (5) The Judicial Council shall cooperate with the commission in providing information
             811      on the judicial branch of government and on the individual levels of court as requested. The
             812      director of personnel from the Office of the Court Administrator shall provide the salary
             813      comparison data referred to in this section to the legislative fiscal analyst and shall provide
             814      other staff assistance and support as requested by the legislative fiscal analyst.
             815          Section 22. Section 67-19-3 is amended to read:
             816           67-19-3. Definitions.
             817          As used in this chapter:
             818          (1) "Agency" means any department or unit of Utah state government with authority to
             819      employ personnel.
             820          (2) "Career service" means positions under Schedule B as defined in Section 67-19-15 .
             821          (3) "Career service employee" means an employee who has successfully completed a
             822      probationary period of service in a position covered by the career service.
             823          (4) "Career service status" means status granted to employees who successfully
             824      complete probationary periods for competitive career service positions.
             825          (5) "Classified service" means those positions subject to the classification and
             826      compensation provisions of Section 67-19-12 .
             827          (6) "Controlled substance" means controlled substance as defined in Section 58-37-2 .
             828          [(7) "Department" means the Department of Human Resource Management.]
             829          (7) "Director" means the director of the Division of Human Resource Management.
             830          (8) "Disability" means a physical or mental disability as defined and protected under
             831      the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
             832          (9) "Division" means the Division of Human Resource Management.
             833          [(9)] (10) "Employee" means any individual in a paid status covered by the career


             834      service or classified service provisions of this chapter.
             835          [(10)] (11) "Examining instruments" means written or other types of proficiency tests.
             836          [(11)] (12) "Executive director," except where otherwise specified, means the
             837      executive director of the [department] Department of Administrative Services.
             838          [(12)] (13) "Market comparability adjustment" means a salary range adjustment
             839      determined necessary through a market survey of salary ranges of a reasonable cross section of
             840      comparable benchmark positions in private and public employment.
             841          [(13)] (14) "Probationary employee" means an employee serving a probationary period
             842      in a career service position but who does not have career service status.
             843          [(14)] (15) "Probationary period" means that period of time determined by the
             844      department that an employee serves in a career service position as part of the hiring process
             845      before career service status is granted to the employee.
             846          [(15)] (16) "Probationary status" means the status of an employee between the
             847      employee's hiring and the granting of career service status.
             848          [(16)] (17) "Total compensation" means salaries and wages, bonuses, paid leave, group
             849      insurance plans, retirement, and all other benefits offered to state employees as inducements to
             850      work for the state.
             851          Section 23. Section 67-19-3.1 is amended to read:
             852           67-19-3.1. Principles guiding interpretation of chapter and adoption of rules.
             853          (1) The [department] division shall establish a career service system designed in a
             854      manner that will provide for the effective implementation of the following merit principles:
             855          (a) recruiting, selecting, and advancing employees on the basis of their relative ability,
             856      knowledge, and skills, including open consideration of qualified applicants for initial
             857      appointment;
             858          (b) providing for equitable and competitive compensation;
             859          (c) training employees as needed to assure high-quality performance;
             860          (d) retaining employees on the basis of the adequacy of their performance and
             861      separating employees whose inadequate performance cannot be corrected;
             862          (e) fair treatment of applicants and employees in all aspects of [personnel] human
             863      resource administration without regard to race, color, religion, sex, national origin, political
             864      affiliation, age, or disability, and with proper regard for their privacy and constitutional rights


             865      as citizens;
             866          (f) providing information to employees regarding their political rights and the
             867      prohibited practices under the Hatch Act; and
             868          (g) providing a formal procedure for processing the appeals and grievances of
             869      employees without discrimination, coercion, restraint, or reprisal.
             870          (2) The principles in Subsection (1) shall govern interpretation and implementation of
             871      this chapter.
             872          Section 24. Section 67-19-5 is amended to read:
             873           67-19-5. Division of Human Resource Management created -- Director --
             874      Compensation -- Staff.
             875          (1) There is created the [Department] Division of Human Resource Management
             876      within the Department of Administrative Services.
             877          (2) (a) The [department] division shall be administered by a director appointed by the
             878      governor with the consent of the Senate.
             879          (b) The director shall be a person with experience in [personnel] human resource
             880      management and shall be accountable to the [governor] executive director for his performance
             881      in office.
             882          [(c) The governor shall establish the director's salary within the salary range fixed by
             883      the Legislature in Title 67, Chapter 22, State Officer Compensation.]
             884          (3) The director may[: (a)] appoint a personal secretary and, with the approval of the
             885      [governor] executive director, a deputy director, both of whom shall be exempt from career
             886      service[; and].
             887          [(b) appoint division directors and program managers who may be career service
             888      exempt.]
             889          (4) (a) The director shall have full responsibility and accountability for the
             890      administration of the statewide human resource management system.
             891          (b) Except as provided in Section 67-19-6.1 , an agency may not perform human
             892      resource functions without the consent of the director.
             893          (5) Statewide human resource management rules adopted by the Division of Human
             894      Resource Management in accordance with Title 63, Chapter 46a, Utah Administrative
             895      Rulemaking Act, shall take precedence if there is a conflict with department rules, policies, or


             896      practices.
             897          Section 25. Section 67-19-6 is amended to read:
             898           67-19-6. Responsibilities of director.
             899          (1) The director shall:
             900          (a) develop, implement, and administer a statewide program of [personnel] human
             901      resource management [for state employees] that will:
             902          (i) aid in the efficient execution of public policy;
             903          (ii) foster careers in public service for qualified employees; and
             904          (iii) render assistance to state agencies in performing their missions;
             905          (b) design and administer the state pay plan;
             906          (c) design and administer the state classification system and procedures for determining
             907      schedule assignments;
             908          (d) design and administer the state recruitment and selection system;
             909          (e) monitor agency human resource practices to determine compliance with federal
             910      law, state law, and state human resource rules, including equal employment opportunity;
             911          (f) maintain central personnel records;
             912          [(b)] (g) perform those functions necessary to implement this chapter unless otherwise
             913      assigned or prohibited;
             914          [(c)] (h) perform duties assigned by the governor or statute;
             915          [(d)] (i) adopt rules for [personnel] human resource management according to the
             916      procedures of Title 63, Chapter 46a, Utah Administrative Rulemaking Act;
             917          [(e)] (j) establish and maintain a management information system that will furnish the
             918      governor, the Legislature, and agencies with current information on authorized positions,
             919      payroll, and related matters concerning state [personnel] human resources;
             920          [(f)] (k) [in cooperation with other agencies,] conduct research and planning activities
             921      to:
             922          (i) determine and prepare for future state [personnel] human resource needs;
             923          (ii) develop methods for improving public [personnel] human resource management;
             924      and
             925          (iii) propose needed policy changes to the governor;
             926          [(g)] (l) study the character, causes, and extent of discrimination in state employment


             927      and develop plans for its elimination through programs consistent with federal and state laws
             928      governing equal employment opportunity in employment;
             929          [(h)] (m) when requested by counties, municipalities, and other political subdivisions
             930      of the state, provide technical service and advice on [personnel] human resource management
             931      at a charge determined by the director;
             932          [(i)] (n) establish compensation policies and procedures for early voluntary retirement;
             933          [(j)] (o) confer with the heads of other agencies about human resource policies and
             934      procedures;
             935          [(k)] (p) submit an annual report to the governor and the Legislature; and
             936          [(l)] (q) (i) develop a procedure by which each agency will:
             937          (A) identify funded vacant positions; and
             938          (B) report those funded vacant positions to the [department] division;
             939          (ii) identify all funded employee positions in each agency that have been vacant for
             940      more than 180 consecutive days during the 18-month period prior to July 1 of each year; and
             941          (iii) by no later than September 1 of each year, provide a report of all funded employee
             942      positions in each agency identified in Subsections (1)[(l)] (q)(i) and (ii) to:
             943          (A) the Governor's Office of Planning and Budget; and
             944          (B) the Office of the Legislative Fiscal Analyst.
             945          (2) (a) After consultation with the governor and the heads of other agencies, the
             946      director shall establish and coordinate statewide training programs.
             947          (b) The programs developed under this Subsection (2) shall have application to more
             948      than one agency.
             949          (c) The [department] division may not establish training programs that train employees
             950      to perform highly specialized or technical jobs and tasks.
             951          (3) (a) (i) The [department] division may collect fees for training as authorized by this
             952      Subsection (3).
             953          (ii) Training funded from General Fund appropriations shall be treated as a separate
             954      program within the [department] division budget.
             955          (iii) All money received from fees under this section will be accounted for by the
             956      [department] division as a separate user driven training program.
             957          (iv) The user training program includes the costs of developing, procuring, and


             958      presenting training and development programs, and other associated costs for these programs.
             959          (b) (i) Funds remaining at the end of the fiscal year in the user training program are
             960      nonlapsing.
             961          (ii) Each year, as part of the appropriations process, the Legislature shall review the
             962      amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
             963      the [department] division to lapse a portion of the funds.
             964          Section 26. Section 67-19-6.1 is enacted to read:
             965          67-19-6.1. Department field offices.
             966          (1) After consulting with an agency head, the director of the Division of Human
             967      Resource Management may establish a field office in that agency.
             968          (2) The director shall assign an employee of the agency to act as field office director.
             969          (3) Before establishing a field office, the director and agency head shall sign an
             970      agreement, to be approved by the governor, that specifies:
             971          (a) the scope of responsibility of the field office director and staff;
             972          (b) the services to be provided by the field office director and staff;
             973          (c) the relationship between the field office director and agency management;
             974          (d) the facilities, equipment, supplies, and budget to be provided for the field office by
             975      the agency and the allocation of the cost of those facilities, equipment, and supplies;
             976          (e) staff size;
             977          (f) protocols to resolve discrepancies between agency practice and Division of Human
             978      Resource Management policy;
             979          (g) the date that the agreement shall terminate if not previously terminated or renewed;
             980      and
             981          (h) any other issue necessary for the proper functioning of the field office within the
             982      agency.
             983          (4) Unless otherwise provided for in the field office agreement, the agency shall:
             984          (a) obtain field office approval for the final selection of qualified applicants for
             985      appointment and promotion to vacant positions;
             986          (b) conduct performance appraisals;
             987          (c) discipline employees; and
             988          (d) maintain individual personnel records.


             989          (5) Any field office agreement shall be subject to termination by the director with the
             990      approval of the governor.
             991          Section 27. Section 67-19-6.7 is amended to read:
             992           67-19-6.7. Overtime policies for state employees.
             993          (1) As used in this section:
             994          (a) "Accrued overtime hours" means:
             995          (i) for nonexempt employees, overtime hours earned during a fiscal year that, at the end
             996      of the fiscal year, have not been paid and have not been taken as time off by the nonexempt
             997      state employee who accrued them; and
             998          (ii) for exempt employees, overtime hours earned during an overtime year.
             999          [(b) "Agreement" means the agreement authorized by the FLSA by which a nonexempt
             1000      employee elects the form of compensation he will receive for overtime.]
             1001          [(c)] (b) "Appointed official" means:
             1002          (i) each department executive director and deputy director, each division director, and
             1003      each member of a board or commission; and
             1004          (ii) any other person employed by a department who is appointed by, or whose
             1005      appointment is required by law to be approved by, the governor and who:
             1006          (A) is paid a salary by the state [of Utah]; and
             1007          (B) who exercises managerial, policy-making, or advisory responsibility.
             1008          [(d)] (c) "Department" means the Department of Administrative Services, the
             1009      Department of Corrections, the Department of Financial Institutions, the Department of
             1010      Alcoholic Beverage Control, the Insurance Department, the Public Service Commission, the
             1011      Labor Commission, the Department of Agriculture and Food, the Department of Human
             1012      Services, the State Board of Education, the Department of Natural Resources, the Department
             1013      of Transportation, the Department of Commerce, the Department of Workforce Services, the
             1014      State Tax Commission, the Department of Community and Economic Development, the
             1015      Department of Health, the National Guard, the Department of Environmental Quality, the
             1016      Department of Public Safety, [the Department of Human Resource Management,] the
             1017      Commission on Criminal and Juvenile Justice, all merit employees except attorneys in the
             1018      Office of the Attorney General, merit employees in the Office of the State Treasurer, and merit
             1019      employees in the Office of the State Auditor.


             1020          [(e)] (d) "Elected official" means any person who is an employee of the state [of Utah]
             1021      because he was elected by the registered voters of Utah to a position in state government.
             1022          [(f)] (e) "Exempt employee" means a state employee who is exempt as defined by the
             1023      [FLSA] Fair Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             1024          [(g)] (f) "FLSA" means the Fair Labor Standards Act of 1978, 29 U.S.C. Section 201
             1025      et seq.[ (1978).]
             1026          (g) "FLSA agreement" means the agreement authorized by the Fair Labor Standards
             1027      Act of 1978, 29 U.S.C. Section 201 et seq. by which a nonexempt employee elects the form of
             1028      compensation he will receive for overtime.
             1029          [(h) "Human Resource Management" means the Department of Human Resource
             1030      Management.]
             1031          [(i)] (h) "Nonexempt employee" means a state employee who is nonexempt as defined
             1032      by the Division of Human Resource Management applying FLSA requirements.
             1033          [(j)] (i) "Overtime" means actual time worked in excess of the employee's defined work
             1034      period.
             1035          [(k)] (j) "Overtime year" means the year determined by a department under Subsection
             1036      (4)(b) at the end of which an exempt employee's accrued overtime lapses.
             1037          [(l)] (k) (i) "State employee" means every person employed by a department who is not
             1038      an appointed official or an elected official.
             1039          (ii) "State employee" does not mean:
             1040          (A) certificated employees of the State Board of Education; and
             1041          (B) employees of the Department of Community and Economic Development whose
             1042      positions are designated as schedule AM exempt employees under Section 67-19-15 .
             1043          [(m)] (l) "Uniform annual date" means the date when an exempt employee's accrued
             1044      overtime lapses.
             1045          [(n)] (m) "Work period" means:
             1046          (i) for all nonexempt employees, except law enforcement and hospital employees, a
             1047      consecutive seven day 24 hour work period of 40 hours;
             1048          (ii) for all exempt employees, a 14 day, 80 hour payroll cycle; and
             1049          (iii) for nonexempt law enforcement and hospital employees, the period established by
             1050      each department by rule for those employees according to the requirements of the [FLSA] Fair


             1051      Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             1052          (2) Each department shall compensate each state employee who works overtime by
             1053      complying with the requirements of this section.
             1054          (3) (a) Each department shall negotiate and obtain a signed FLSA agreement from each
             1055      nonexempt employee.
             1056          (b) In the FLSA agreement, the nonexempt employee shall elect either to be
             1057      compensated for overtime by:
             1058          (i) taking time off work at the rate of one and one-half hour off for each overtime hour
             1059      worked; or
             1060          (ii) being paid for the overtime worked at the rate of one and one-half times the rate per
             1061      hour that the state employee receives for nonovertime work.
             1062          (c) Any nonexempt employee who elects to take time off under this subsection shall be
             1063      paid for any overtime worked in excess of the cap established by the Division of Human
             1064      Resource Management.
             1065          (d) Before working any overtime, each nonexempt employee shall obtain authorization
             1066      to work overtime from the employee's immediate supervisor.
             1067          (e) Each department shall:
             1068          (i) for employees who elect to be compensated with time off for overtime, allow
             1069      overtime earned during a fiscal year to be accumulated; and
             1070          (ii) for employees who elect to be paid for overtime worked, pay them for overtime
             1071      worked in the paycheck for the pay period in which the employee worked the overtime.
             1072          (f) If the department pays a nonexempt employee for overtime, the department shall
             1073      charge that payment to the department's budget.
             1074          (g) At the end of each fiscal year, the Division of Finance shall total all the accrued
             1075      overtime hours for nonexempt employees and charge that total against the appropriate fund or
             1076      subfund.
             1077          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), each department shall
             1078      compensate exempt employees who work overtime by granting them time off at the rate of one
             1079      hour off for each hour of overtime worked.
             1080          (ii) The director of the Division of Human Resource Management may grant limited
             1081      exceptions to this requirement, where work circumstances dictate, by authorizing a department


             1082      to pay employees for overtime worked at the rate per hour that the employee receives for
             1083      nonovertime work, if the department has funds available.
             1084          (b) (i) Each department shall:
             1085          (A) establish in its written [personnel] human resource policies a uniform annual date
             1086      for each division that is at the end of any pay period; and
             1087          (B) communicate the uniform annual date to its employees.
             1088          (ii) If any department fails to establish a uniform annual date as required by this
             1089      Subsection (4), the director of the Division of Human Resource Management, in conjunction
             1090      with the director of the Division of Finance, shall establish the date for that department.
             1091          (c) (i) Any overtime earned under this Subsection (4) is not an entitlement, is not a
             1092      benefit, and is not a vested right.
             1093          (ii) A court may not construe the overtime for exempt employees authorized by this
             1094      Subsection (4) as an entitlement, a benefit, or as a vested right.
             1095          (d) At the end of the overtime year, upon transfer to another department at any time,
             1096      and upon termination, retirement, or other situations where the employee will not return to
             1097      work before the end of the overtime year:
             1098          (i) any of an exempt employee's overtime that is more than the maximum established
             1099      by the Division of Human Resource Management rule lapses; and
             1100          (ii) unless authorized by the director of the Division of Human Resource Management
             1101      under Subsection (4)(a)(ii), a department may not compensate the exempt employee for that
             1102      lapsed overtime by paying the employee for the overtime or by granting the employee time off
             1103      for the lapsed overtime.
             1104          (e) Before working any overtime, each exempt employee shall obtain authorization to
             1105      work overtime from [their] the exempt employee's immediate supervisor.
             1106          (f) If the department pays an exempt employee for overtime under authorization from
             1107      the director of the [Department] Division of Human Resource Management, the department
             1108      shall charge that payment to the department's budget in the pay period earned.
             1109          (5) The Division of Human Resource Management shall:
             1110          (a) ensure that the provisions of the FLSA and this section are implemented throughout
             1111      state government;
             1112          (b) determine, for each state employee, whether that employee is exempt, nonexempt,


             1113      law enforcement, or has some other status under the FLSA;
             1114          (c) in coordination with modifications to the systems operated by the Division of
             1115      Finance, make rules:
             1116          (i) establishing procedures for recording overtime worked that comply with FLSA
             1117      requirements;
             1118          (ii) establishing requirements governing overtime worked while traveling and
             1119      procedures for recording that overtime that comply with FLSA requirements;
             1120          (iii) establishing requirements governing overtime worked if the employee is "on call"
             1121      and procedures for recording that overtime that comply with FLSA requirements;
             1122          (iv) establishing requirements governing overtime worked while an employee is being
             1123      trained and procedures for recording that overtime that comply with FLSA requirements;
             1124          (v) subject to the FLSA, establishing the maximum number of hours that a nonexempt
             1125      employee may accrue before a department is required to pay the employee for the overtime
             1126      worked;
             1127          (vi) subject to the FLSA, establishing the maximum number of overtime hours for an
             1128      exempt employee that do not lapse; and
             1129          (vii) establishing procedures for adjudicating appeals of any FLSA determinations
             1130      made by the Division of Human Resource Management as required by this section;
             1131          (d) monitor departments for compliance with the FLSA; and
             1132          (e) recommend to the Legislature and the governor any statutory changes necessary
             1133      because of federal government action.
             1134          (6) In coordination with the procedures for recording overtime worked established in
             1135      rule by the Division of Human Resource Management, the Division of Finance shall modify its
             1136      payroll and [personnel] human resource systems to accommodate those procedures.
             1137          (a) Notwithstanding the procedures and requirements of Title 63, Chapter 46b,
             1138      Administrative Procedures Act, Section 67-19-31 , and Section 67-19a-301 , any employee who
             1139      is aggrieved by the FLSA designation made by the Division of Human Resource Management
             1140      as required by this section may appeal that determination to the [executive] director of the
             1141      Division of Human Resource Management by following the procedures and requirements
             1142      established in Division of Human Resource Management rule.
             1143          (b) Upon receipt of an appeal under this section, the director shall notify the executive


             1144      director of the employee's department that the appeal has been filed.
             1145          (c) If the employee is aggrieved by the decision of the [executive] director of the
             1146      Division of Human Resource Management, he shall appeal that determination to the
             1147      Department of Labor, Wage and Hour Division, according to the procedures and requirements
             1148      of federal law.
             1149          Section 28. Section 67-19-11 is amended to read:
             1150           67-19-11. Use of department facilities -- Field office facilities cost allocation --
             1151      Funding for division.
             1152          (1) (a) All officers and employees of the state and its political subdivisions shall allow
             1153      the [department] division to use public buildings under their control, and furnish heat, light,
             1154      and furniture, for any examination, hearing, or investigation authorized by this chapter.
             1155          [(b) The department shall pay a political subdivision the reasonable cost of any facilities
             1156      furnished by it.]
             1157          (b) (i) Allocation of the cost for any facilities, equipment, or supplies furnished by an
             1158      agency for use as a field office of the division shall be governed by the field office agreement
             1159      established in Section 67-19-6.1 .
             1160          (ii) If the field office agreement does not specifically provide for the allocation of a
             1161      cost for the division's use of the agency's facilities, equipment, or supplies, the agency shall pay
             1162      the cost of those facilities, equipment, and supplies.
             1163          (2) The director shall [submit]:
             1164          (a) prepare an annual budget request for the [department] division, which is subject to
             1165      the executive director's approval; and
             1166          (b) submit the budget request to the governor and the Legislature.
             1167          Section 29. Section 67-19-12 is amended to read:
             1168           67-19-12. State pay plans -- Applicability of section -- Exemptions -- Duties of
             1169      director.
             1170          (1) (a) This section, and the rules adopted by the [department] division to implement
             1171      this section, apply to each career and noncareer [state] employee not specifically exempted
             1172      under Subsection (2).
             1173          (b) If not exempted under Subsection (2), [a state] an employee is considered to be in
             1174      classified service.


             1175          (2) The following [state] employees are exempt from this section:
             1176          (a) members of the Legislature and legislative employees;
             1177          (b) members of the judiciary and judicial employees;
             1178          (c) elected members of the executive branch and their direct staff who meet career
             1179      service exempt criteria as defined in Subsection 67-19-15 (1)(k);
             1180          (d) certificated employees of the State Board of Education;
             1181          (e) officers, faculty, and other employees of state institutions of higher education;
             1182          (f) employees in any position that is determined by statute to be exempt from this
             1183      Subsection (2);
             1184          (g) attorneys in the Office of the Attorney General;
             1185          (h) department heads and other persons appointed by the governor pursuant to statute;
             1186          (i) employees of the Department of Community and Economic Development whose
             1187      positions are designated as executive/professional positions by the executive director of the
             1188      Department of Community and Economic Development with the concurrence of the director;
             1189      and
             1190          (j) employees of the Medical Education Council.
             1191          (3) (a) The director shall prepare, maintain, and revise a position classification plan for
             1192      each employee position not exempted under Subsection (2) to provide equal pay for equal
             1193      work.
             1194          (b) Classification of positions shall be based upon similarity of duties performed and
             1195      responsibilities assumed, so that the same job requirements and the same salary range may be
             1196      applied equitably to each position in the same class.
             1197          (c) The director shall allocate or reallocate the position of each employee in classified
             1198      service to one of the classes in the classification plan.
             1199          (d) (i) The [department] division shall conduct periodic studies and desk audits to
             1200      provide that the classification plan remains reasonably current and reflects the duties and
             1201      responsibilities assigned to and performed by employees.
             1202          (ii) The director shall determine the schedule for studies and desk audits after
             1203      considering factors such as changes in duties and responsibilities of positions or agency
             1204      reorganizations.
             1205          (4) (a) With the approval of the governor, the director shall develop and adopt pay


             1206      plans for each position in classified service.
             1207          (b) The director shall design each pay plan to achieve, to the degree that funds permit,
             1208      comparability of state salary ranges to salary ranges used by private enterprise and other public
             1209      employment for similar work.
             1210          (c) The director shall adhere to the following in developing each pay plan:
             1211          (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
             1212      differential among the various classes of positions in the classification plan.
             1213          (ii) The director shall assign each class of positions in the classification plan to a salary
             1214      range and shall set the width of the salary range to reflect the normal growth and productivity
             1215      potential of employees in that class. The width of the ranges need not be uniform for all
             1216      classes of positions in the plan, but each range shall contain merit steps in increments of 2.75%
             1217      salary increases.
             1218          (iii) The director shall issue rules for the administration of pay plans. The rules may
             1219      provide for exceptional performance increases and for a program of incentive awards for
             1220      cost-saving suggestions and other commendable acts of employees. The director shall issue
             1221      rules providing for salary adjustments.
             1222          (iv) Merit step increases shall be granted, if funds are available, to employees who
             1223      receive a rating of "successful" or higher in an annual evaluation of their productivity and
             1224      performance.
             1225          (v) By October [15] 31 of each year, the director shall submit market comparability
             1226      adjustments to the director of the Governor's Office of Planning and Budget for consideration
             1227      to be included as part of the affected agency's base budgets.
             1228          (vi) By October 31 of each year, the director shall recommend a compensation package
             1229      to the governor.
             1230          (vii) Adjustments shall incorporate the results of a total compensation market survey of
             1231      salary ranges and benefits of a reasonable cross section of comparable benchmark positions in
             1232      private and public employment in the state. The survey may also study comparable unusual
             1233      positions requiring recruitment outside Utah in the surrounding western states. The director
             1234      may cooperate with other public and private employers in conducting the survey.
             1235          (viii) The director shall establish criteria to assure the adequacy and accuracy of the
             1236      survey and shall use methods and techniques similar to and consistent with those used in


             1237      private sector surveys. Except as provided under Section 67-19-12.3 , the survey shall include a
             1238      reasonable cross section of employers. The director may cooperate with or participate in any
             1239      survey conducted by other public and private employers.
             1240          (ix) The establishing of a salary range is a nondelegable activity [subject to Subsection
             1241      67-19-8 (1)] and is not appealable under the grievance procedures of Sections 67-19-30 through
             1242      67-19-32 , Title 67, Chapter 19a, Grievance and Appeal Procedures, or otherwise.
             1243          (x) The governor shall:
             1244          (A) consider salary adjustments recommended under Subsection (4)(c)(vi) in preparing
             1245      the executive budget and shall recommend the method of distributing the adjustments;
             1246          (B) submit compensation recommendations to the Legislature; and
             1247          (C) support the recommendation with schedules indicating the cost to individual
             1248      departments and the source of funds.
             1249          (xi) If funding is approved by the Legislature in a general appropriations act, the
             1250      adjustments take effect on the July 1 following the enactment.
             1251          (5) (a) The director shall regularly evaluate the total compensation program of state
             1252      employees in the classified service.
             1253          (b) The [department] division shall determine if employee benefits are comparable to
             1254      those offered by other private and public employers using information from:
             1255          (i) the most recent edition of the Employee Benefits Survey Data conducted by the U.S.
             1256      Chamber of Commerce Research Center; or
             1257          (ii) the most recent edition of a nationally recognized benefits survey.
             1258          (6) (a) The director shall submit proposals for a state employee compensation plan to
             1259      the governor by October 31 of each year, setting forth findings and recommendations affecting
             1260      [state] employee compensation.
             1261          (b) The governor shall consider the director's proposals in preparing budget
             1262      recommendations for the Legislature.
             1263          (c) The governor's budget proposals to the Legislature shall include a specific
             1264      recommendation on [state] employee compensation.
             1265          Section 30. Section 67-19-12.2 is amended to read:
             1266           67-19-12.2. Education benefit plan for law enforcement and correctional officers.
             1267          (1) As used in this section, "law enforcement officer" has the same meaning as in


             1268      Section 53-13-103 and "correctional officer" has the same meaning as in Section 53-13-104 .
             1269          (2) The director shall establish a plan authorizing any [state] agency to implement an
             1270      educational compensation program for law enforcement officers and correctional officers
             1271      employed by that [state] agency.
             1272          (3) The program shall provide that in order for a law enforcement officer or
             1273      correctional officer to qualify for education benefits for college or university education, the law
             1274      enforcement officer or correctional officer shall:
             1275          (a) provide a certified transcript of grades, demonstrating a grade point average of 3.0
             1276      or greater, from an accredited college or university; and
             1277          (b) have successfully completed the probationary employment period with the
             1278      employing agency.
             1279          (4) The program shall also provide that the agency may consider a law enforcement
             1280      officer or correctional officer to receive additional compensation as follows for higher
             1281      education degrees earned on or after April 30, 2001, in a subject area directly related to the law
             1282      enforcement officer's or correctional officer's employment with the agency:
             1283          (a) two steps for an associate's degree;
             1284          (b) two steps for a bachelor's degree; and
             1285          (c) two steps for a master's degree.
             1286          (5) Expenses incurred by an agency to provide additional compensation under this
             1287      section may be only from the agency's existing budget.
             1288          Section 31. Section 67-19-12.5 is amended to read:
             1289           67-19-12.5. Creation of Flexible Benefit Program -- Rulemaking power granted to
             1290      establish program.
             1291          (1) The [department] division shall establish for calendar year 1990 and thereafter a
             1292      Flexible Benefit Program under Section 125 of the Internal Revenue Code of 1986.
             1293          (2) The [department] division shall establish accounts for all employees eligible for
             1294      benefits which meet the nondiscrimination requirements of the Internal Revenue Code of 1986.
             1295          (3) (a) Each account established under this section shall include employee paid
             1296      premiums for health and dental services.
             1297          (b) The account may also include, at the option of the employee, out-of-pocket
             1298      employee medical and dependent care expenses.


             1299          (c) Accounts may also include other expenses allowed under the Internal Revenue
             1300      Code of 1986.
             1301          (4) In accordance with Title 63, Chapter 46a, [the] Utah Administrative Rulemaking
             1302      Act, the [department] division may make rules to implement the program established under this
             1303      section.
             1304          Section 32. Section 67-19-12.7 is amended to read:
             1305           67-19-12.7. Accumulated annual leave -- Conversion to deferred compensation
             1306      plan.
             1307          (1) The [department] division shall implement a program whereby an employee may,
             1308      upon termination of employment or retirement, elect to convert any unused annual leave into
             1309      any of the employee's designated deferred compensation accounts that:
             1310          (a) are sponsored by the Utah State Retirement Board; and
             1311          (b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
             1312          (2) Any annual leave converted under Subsection (1) shall be converted into the
             1313      employee's deferred compensation account at the employee's pay rate at the time of termination
             1314      or retirement.
             1315          (3) No employee may convert hours of accrued annual leave to the extent that any
             1316      hours so converted would exceed the maximum amount authorized by the Internal Revenue
             1317      Code for each calendar year.
             1318          Section 33. Section 67-19-12.9 is amended to read:
             1319           67-19-12.9. Accumulated annual leave -- Annual conversion to deferred
             1320      compensation plan.
             1321          (1) If the Legislature in an annual appropriations act with accompanying intent language
             1322      specifically authorizes and fully funds the estimated costs of this use, the [department] division
             1323      shall implement a program that allows an employee, in the approved calendar year, to elect to
             1324      convert up to 20 hours of annual leave, in whole hour increments not to exceed $250 in value,
             1325      into any of the employee's designated deferred compensation accounts that:
             1326          (a) are sponsored by the Utah State Retirement Board; and
             1327          (b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
             1328          (2) Any annual leave converted under Subsection (1) shall be:
             1329          (a) converted into the employee's deferred compensation account at the employee's pay


             1330      rate at the time of conversion; and
             1331          (b) calculated in the last pay period of the leave year as determined by the Division of
             1332      Finance.
             1333          (3) An employee may not convert hours of accrued annual leave to the extent that any
             1334      hours converted would:
             1335          (a) exceed the maximum amount authorized by the Internal Revenue Code for the
             1336      calendar year; or
             1337          (b) cause the employee's balance of accumulated annual leave to drop below the
             1338      maximum accrual limit provided by rule.
             1339          Section 34. Section 67-19-13 is amended to read:
             1340           67-19-13. Examination of payrolls and certification of employee eligibility by
             1341      director.
             1342          (1) The director [of personnel management] may examine payrolls at any time to
             1343      determine conformity with this chapter and the regulations.
             1344          (2) No new employee shall be hired in a position covered by this chapter, and no
             1345      employee shall be changed in pay, title or status, nor shall any employee be paid unless
             1346      certified by the director as eligible under the provisions of or regulations promulgated pursuant
             1347      to this chapter.
             1348          Section 35. Section 67-19-15 is amended to read:
             1349           67-19-15. Career service -- Exempt positions -- Schedules for civil service
             1350      positions -- Coverage of career service provisions.
             1351          (1) Except as otherwise provided by law or by rules and regulations established for
             1352      federally aided programs, the following positions are exempt from the career service provisions
             1353      of this chapter:
             1354          (a) the governor, members of the Legislature, and all other elected state officers,
             1355      designated as Schedule AA;
             1356          (b) the agency heads enumerated in Section 67-22-2 , and commissioners designated as
             1357      Schedule AB;
             1358          (c) all employees and officers in the office and at the residence of the governor,
             1359      designated as Schedule AC;
             1360          (d) employees who are in a confidential relationship to an agency head or


             1361      commissioner and who report directly to, and are supervised by, a department head,
             1362      commissioner, or deputy director of an agency or its equivalent, designated as Schedule AD;
             1363          (e) unskilled employees in positions requiring little or no specialized skill or training,
             1364      designated as Schedule AE;
             1365          (f) part-time professional noncareer persons who are paid for any form of medical and
             1366      other professional service and who are not engaged in the performance of administrative duties,
             1367      designated as Schedule AF;
             1368          (g) attorneys in the attorney general's office who are under their own career service pay
             1369      plan, designated as Schedule AG;
             1370          (h) teaching staff of all state institutions and patients and inmates employed in state
             1371      institutions, designated as Schedule AH;
             1372          (i) persons appointed to a position vacated by an employee who has a right to return
             1373      under federal or state law or policy, designated as Schedule AI;
             1374          (j) noncareer employees compensated for their services on a seasonal or contractual
             1375      basis who are hired for limited periods of less than nine consecutive months or who are
             1376      employed on less than 1/2 time basis, designated as Schedule AJ;
             1377          (k) those employees in a personal and confidential relationship to elected officials,
             1378      designated as Schedule AK;
             1379          (l) employees appointed to perform work of a limited duration not exceeding two years
             1380      or to perform work with time-limited funding, designated as Schedule AL;
             1381          (m) employees of the Department of Community and Economic Development whose
             1382      positions are designated as executive/professional positions by the executive director of the
             1383      Department of Community and Economic Development with the concurrence of the director,
             1384      designated as Schedule AM;
             1385          (n) employees of the Legislature, designated as Schedule AN;
             1386          (o) employees of the judiciary, designated as Schedule AO;
             1387          (p) all judges in the judiciary, designated as Schedule AP;
             1388          (q) members of state and local boards and councils appointed by the governor and
             1389      governing bodies of agencies, other local officials serving in an ex officio capacity, officers,
             1390      faculty, and other employees of state universities and other state institutions of higher
             1391      education, designated as Schedule AQ;


             1392          (r) employees who make statewide policy, designated as Schedule AR; and
             1393          (s) any other employee whose appointment is required by statute to be career service
             1394      exempt, designated as Schedule AS.
             1395          (2) The civil service shall consist of two schedules as follows:
             1396          (a) (i) Schedule A is the schedule consisting of positions exempted by Subsection (1).
             1397          (ii) Removal from any appointive position under Schedule A, unless otherwise
             1398      regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
             1399          (b) Schedule B is the competitive career service schedule, consisting of all positions
             1400      filled through competitive selection procedures as defined by the director.
             1401          (3) (a) The director, after consultation with the heads of concerned executive branch
             1402      departments and agencies and with the approval of the governor, shall allocate positions to the
             1403      appropriate schedules under this section.
             1404          (b) Agency heads shall make requests and obtain approval from the director before
             1405      changing the schedule assignment and tenure rights of any position.
             1406          (c) Unless the director's decision is reversed by the governor, when the director denies
             1407      an agency's request, the director's decision is final.
             1408          (4) (a) Compensation for employees of the Legislature shall be established by the
             1409      directors of the legislative offices in accordance with Section 36-12-7 .
             1410          (b) Compensation for employees of the judiciary shall be established by the state court
             1411      administrator in accordance with Section 78-3-24 .
             1412          (c) Compensation for officers, faculty, and other employees of state universities and
             1413      institutions of higher education shall be established as provided in Title 53B, Chapters 1 and 2.
             1414          (d) Unless otherwise provided by law, compensation for all other Schedule A
             1415      employees shall be established by their appointing authorities, within ranges approved by, and
             1416      after consultation with the director of the [Department] Division of Human [Resources]
             1417      Resource Management.
             1418          (5) All employees of the Office of State Auditor, the Office of State Treasurer, the
             1419      Office of the Attorney General, excluding attorneys who are under their own career service
             1420      system, and employees who are not exempt under this section are covered by the career service
             1421      provisions of this chapter.
             1422          Section 36. Section 67-19-15.1 is amended to read:


             1423           67-19-15.1. Implementation of exempt status for Schedule AD and AR employees.
             1424          (1) As used in this section, "appointee" means:
             1425          (a) a deputy director;
             1426          (b) a division director;
             1427          (c) any assistant directors and administrative assistants who report directly to a
             1428      department head, deputy director, or their equivalent; and
             1429          (d) any other person whose appointment is required by law to be approved by the
             1430      governor.
             1431          (2) After the effective date of this [act] chapter, any new appointee is a merit exempt
             1432      employee.
             1433          (3) Notwithstanding the requirements of this [act] chapter, any appointee who is
             1434      currently a nonexempt employee does not lose that nonexempt status because of this [act]
             1435      chapter.
             1436          (4) The [Department] Division of Human Resource Management shall develop
             1437      financial and other incentives to encourage appointees who are nonexempt to voluntarily
             1438      convert to merit exempt status.
             1439          Section 37. Section 67-19-19 is amended to read:
             1440           67-19-19. Political activity of employees -- Rules and regulations -- Highway
             1441      patrol -- Hatch Act.
             1442          Except as otherwise provided by law or by rules promulgated under this section for
             1443      federally aided programs, the following provisions apply with regard to political activity of
             1444      career service employees in all grades and positions.
             1445          (1) [State career] Career service employees may voluntarily participate in political
             1446      activity subject to the following provisions:
             1447          (a) if any [state] career service employee is elected to any partisan or full-time
             1448      nonpartisan political office, that employee shall be granted a leave of absence without pay for
             1449      times when monetary compensation is received for service in political office;
             1450          (b) no officer or employee in career service may engage in any political activity during
             1451      the hours of employment, nor may any person solicit political contributions from employees of
             1452      the executive branch during hours of employment for political purposes; and
             1453          (c) partisan political activity may not be a basis for employment, promotion, demotion,


             1454      or dismissal, except that the director shall adopt rules providing for the discipline or
             1455      punishment of a state officer or employee who violates any provision of this section.
             1456          (2) (a) Notwithstanding any other provision of this section, no member of the Utah
             1457      Highway Patrol may use his official authority or influence for the purpose of interfering with
             1458      an election or affecting the results of an election.
             1459          (b) No person may induce or attempt to induce any member of the Utah Highway
             1460      Patrol to participate in any activity prohibited by this Subsection (2).
             1461          (3) Nothing contained in this section may be construed to:
             1462          (a) preclude voluntary contributions by [a state] an employee to the party or candidate
             1463      of the officer's or employee's choice; or
             1464          (b) permit partisan political activity by any [state] employee who is prevented or
             1465      restricted from engaging in the political activity by the provisions of the federal Hatch Act.
             1466          Section 38. Section 67-19-26 is amended to read:
             1467           67-19-26. Severability of provisions -- Compliance with requirements for
             1468      federally aided programs.
             1469          (1) If any provision of this chapter or of any regulation or order issued thereunder or
             1470      the application of any provision of this chapter to any person or circumstance is held invalid,
             1471      the remainder of this chapter and the application of provision of this chapter or regulation or
             1472      orders issued under it to persons or circumstances other than those to which it is held invalid
             1473      shall still be regarded as having the force and effect of law.
             1474          (2) If any part of this chapter is found to be in conflict with federal requirements which
             1475      are a condition precedent to the allocation of federal funds to the state, the conflicting part of
             1476      this chapter shall be inoperative solely to the extent of the conflict and with respect to the
             1477      agencies directly affected, and such findings shall not affect the operation of the remainder of
             1478      this chapter in its application to the agencies concerned.
             1479          (3) Notwithstanding any provisions in this chapter to the contrary, no regulation shall
             1480      be adopted which would deprive the state or any of its departments or institutions of federal
             1481      grants or other forms of financial assistance, and the rules and regulations promulgated
             1482      hereunder shall include standards, provisions, terms, and conditions for personnel engaged in
             1483      the administration of federally aided programs, which shall, in all respects, comply with the
             1484      necessary requirements for a qualified [personnel] human resource system under the standards


             1485      applicable to personnel engaged in the administration of federally aided programs.
             1486          Section 39. Section 67-19-31 is amended to read:
             1487           67-19-31. Position classification grievances -- Scope -- Procedure.
             1488          (1) (a) For the purpose of position classification grievances, the process that culminates
             1489      in assigning a career service position to an appropriate class specification is a matter of position
             1490      classification and may be grieved.
             1491          (b) The process that culminates in assigning a salary range to the class specification is
             1492      not a position classification and may not be grieved as a classification grievance.
             1493          (2) (a) Upon receipt of a position classification grievance, the director shall refer the
             1494      grievance to a classification panel of three or more impartial persons trained in state
             1495      classification procedures.
             1496          (b) The classification panel shall determine whether or not the classification
             1497      assignment for career service positions was appropriate by applying the statutes, rules, and
             1498      procedures adopted by the department that were in effect at the time of the classification
             1499      change.
             1500          (c) The classification panel may:
             1501          (i) obtain access to previous audits, classification decisions, and reports;
             1502          (ii) request new or additional audits by [department or agency personnel] human
             1503      resource analysts; and
             1504          (iii) consider new or additional information.
             1505          (d) The classification panel may sustain or modify the original decision and, if
             1506      applicable, recommend a new classification.
             1507          (e) The classification panel shall report its recommendation to the director, who shall
             1508      make the classification decision and notify the grievant.
             1509          (3) (a) Either party may appeal the director's decision to an impartial hearing officer
             1510      trained in state classification procedures selected through a public bid process by a panel
             1511      consisting of the following members:
             1512          (i) the [executive] director of the [Department] Division of Human Resource
             1513      Management;
             1514          (ii) two department executive directors;
             1515          (iii) a private sector human resources executive appointed by the governor; and


             1516          (iv) a representative of the Utah Public Employees Association.
             1517          (b) The successful bid shall serve under contract for no more than three years. At the
             1518      end of that time, the [Department] Division of Human Resource Management shall reissue the
             1519      bid.
             1520          (c) The hearing officer shall review the classification and make the final decision. The
             1521      final decision is subject to judicial review pursuant to the provisions of Section 63-46b-15 .
             1522          Section 40. Section 67-19-33 is amended to read:
             1523           67-19-33. Controlled substances and alcohol use prohibited.
             1524          An employee may not:
             1525          (1) manufacture, dispense, possess, use, distribute, or be under the influence of a
             1526      controlled substance or alcohol during work hours or on state property except where legally
             1527      permissible;
             1528          (2) manufacture, dispense, possess, use, or distribute a controlled substance or alcohol
             1529      if the activity prevents:
             1530          (a) state agencies from receiving federal grants or performing under federal contracts of
             1531      $25,000 or more; or
             1532          (b) the employee to perform his services or work for state government effectively as
             1533      regulated by the rules of the [executive] director in accordance with Section 67-19-34 ; or
             1534          (3) refuse to submit to a drug or alcohol test under Section 67-19-36 .
             1535          Section 41. Section 67-19-34 is amended to read:
             1536           67-19-34. Rulemaking power to director.
             1537          In accordance with this chapter and Title 63, Chapter 46a, Utah Administrative
             1538      Rulemaking Act, the [executive] director shall make rules regulating:
             1539          (1) disciplinary actions for employees subject to discipline under Section 67-19-37 ;
             1540          (2) the testing of employees for the use of controlled substances or alcohol as provided
             1541      in Section 67-19-36 ;
             1542          (3) the confidentiality of drug testing and test results performed under Section
             1543      67-19-36 in accordance with Title 63, Chapter 2, Government Records Access and
             1544      Management Act; and
             1545          (4) minimum blood levels of alcohol or drug content for work effectiveness of an
             1546      employee.


             1547          Section 42. Section 67-19-36 is amended to read:
             1548           67-19-36. Drug testing of state employees.
             1549          (1) Except as provided in Subsection (2), when there is reasonable suspicion that an
             1550      employee is using a controlled substance or alcohol unlawfully during work hours, an
             1551      employee may be required to submit to medically accepted testing procedures for a
             1552      determination of whether the employee is using a controlled substance or alcohol in violation
             1553      of this part.
             1554          (2) In highly sensitive positions, as identified in [department] division class
             1555      specifications, random drug testing of employees may be conducted by an agency in
             1556      accordance with the rules of the [executive] director.
             1557          (3) All drug or alcohol testing shall be:
             1558          (a) conducted by a federally certified and licensed physician, a federally certified and
             1559      licensed medical clinic, or testing facility federally certified and licensed to conduct medically
             1560      accepted drug testing;
             1561          (b) conducted in accordance with the rules of the [executive] director made under
             1562      Section 67-19-34 ; and
             1563          (c) kept confidential in accordance with the rules of the [executive] director made in
             1564      accordance with Section 67-19-34 .
             1565          (4) A physician, medical clinic, or testing facility may not be held liable in any civil
             1566      action brought by a party for:
             1567          (a) performing or failing to perform a test under this section;
             1568          (b) issuing or failing to issue a test result under this section; or
             1569          (c) acting or omitting to act in any other way in good faith under this section.
             1570          Section 43. Section 67-19-37 is amended to read:
             1571           67-19-37. Discipline of employees.
             1572          An employee shall be subject to the rules of discipline of the [executive] director made
             1573      in accordance with Section 67-19-34 , if [he] the employee:
             1574          (1) refuses to submit to testing procedures provided in Section 67-19-36 ;
             1575          (2) refuses to complete a drug rehabilitation program in accordance with Subsection
             1576      67-19-38 (3);
             1577          (3) is convicted under a federal or state criminal statute regulating the manufacture,


             1578      distribution, dispensation, possession, or use of a controlled substance; or
             1579          (4) manufactures, dispenses, possesses, uses, or distributes a controlled substance in
             1580      violation of state or federal law during work hours or on state property.
             1581          Section 44. Section 67-19-38 is amended to read:
             1582           67-19-38. Violations and penalties.
             1583          In addition to other criminal penalties provided by law, an employee who:
             1584          (1) fails to notify [his] the employee's director under Section 67-19-35 is subject to
             1585      disciplinary proceedings as established by the [executive] director by rule in accordance with
             1586      Section 67-19-34 ;
             1587          (2) refuses to submit to testing procedures provided for in Section 67-19-36 , may be
             1588      suspended immediately without pay pending further disciplinary action as set forth in the rules
             1589      of the [executive] director in accordance with Section 67-19-34 ;
             1590          (3) tests positive for the presence of unlawfully used controlled substances or alcohol
             1591      may be required, as part of [his] the employee's disciplinary treatment, to complete a drug
             1592      rehabilitation program at [his] the employee's expense within 60 days after receiving the
             1593      positive test results or be subject to further disciplinary procedures established by rule of the
             1594      [executive] director in accordance with Section 67-19-34 .
             1595          Section 45. Section 67-19a-303 is amended to read:
             1596           67-19a-303. Employees' rights in grievance and appeals procedure.
             1597          (1) For the purpose of processing a grievance, a career service employee may:
             1598          (a) obtain assistance by a representative of the employee's choice to act as an advocate
             1599      at any level of the grievance procedure;
             1600          (b) request a reasonable amount of time during work hours to confer with the
             1601      representative and prepare the grievance; and
             1602          (c) call other employees as witnesses at a grievance hearing.
             1603          (2) The state shall allow employees to attend and testify at the grievance hearing as
             1604      witnesses if the employee has given reasonable advance notice to [his] the employee's
             1605      immediate supervisor.
             1606          (3) No person may take any reprisals against any career service employee for use of
             1607      grievance procedures specified in this chapter.
             1608          (4) (a) The employing agency of an employee who files a grievance may not place


             1609      grievance forms, grievance materials, correspondence about the grievance, agency and
             1610      department replies to the grievance, or other documents relating to the grievance in the
             1611      employee's personnel file.
             1612          (b) The employing agency of an employee who files a grievance may place records of
             1613      disciplinary action in the employee's personnel file.
             1614          (c) If any disciplinary action against an employee is rescinded through the grievance
             1615      procedures established in this chapter, the agency and the [Department] Division of Human
             1616      Resource Management shall remove the record of the disciplinary action from the employee's
             1617      agency personnel file and central personnel file.
             1618          (d) An agency may maintain a separate grievance file relating to an employee's
             1619      grievance, but shall discard the file after three years.
             1620          Section 46. Section 67-19c-101 is amended to read:
             1621           67-19c-101. Department award program.
             1622          (1) As used in this section:
             1623          (a) "Department" means the Department of Administrative Services, the Department of
             1624      Agriculture and Food, the Department of Alcoholic Beverage Control, the Department of
             1625      Commerce, the Department of Community and Economic Development, the Department of
             1626      Corrections, the Department of Workforce Services, the Department of Environmental Quality,
             1627      the Department of Financial Institutions, the Department of Health, [the Department of Human
             1628      Resource Management,] the Department of Human Services, the Insurance Department, the
             1629      National Guard, the Department of Natural Resources, the Department of Public Safety, the
             1630      Public Service Commission, the Labor Commission, the State Board of Education, the State
             1631      Board of Regents, the State Tax Commission, and the Department of Transportation.
             1632          (b) "Department head" means the individual or body of individuals in whom the
             1633      ultimate legal authority of the department is vested by law.
             1634          (2) There is created a department awards program to award an outstanding employee in
             1635      each department of state government.
             1636          (3) (a) By April 1 of each year, each department head shall solicit nominations for
             1637      outstanding employee of the year for his department from the employees in his department.
             1638          (b) By July 1 of each year, the department head shall:
             1639          (i) select a person from the department to receive the outstanding employee of the year


             1640      award using the criteria established in Subsection (3)(c); and
             1641          (ii) announce the recipient of the award to his employees.
             1642          (c) Department heads shall make the award to a person who demonstrates:
             1643          (i) extraordinary competence in performing his function;
             1644          (ii) creativity in identifying problems and devising workable, cost-effective solutions to
             1645      them;
             1646          (iii) excellent relationships with the public and other employees;
             1647          (iv) a commitment to serving the public as the client; and
             1648          (v) a commitment to economy and efficiency in government.
             1649          (4) (a) The [Department] Division of Human Resource Management shall divide any
             1650      appropriation for outstanding department employee awards that it receives from the Legislature
             1651      equally among the departments.
             1652          (b) If the department receives monies from the [Department] Division of Human
             1653      Resource Management or if the department budget allows, the department head shall provide
             1654      the employee with a bonus, a plaque, or some other suitable acknowledgement of the award.
             1655          (5) (a) The department head may name the award after an exemplary present or former
             1656      employee of the department.
             1657          (b) A department head may not name the award for himself or for any relative as
             1658      defined in Section 52-3-1 .
             1659          (c) Any awards or award programs existing in any department as of May 3, 1993, shall
             1660      be modified to conform to the requirements of this section.
             1661          Section 47. Section 67-20-8 is amended to read:
             1662           67-20-8. Volunteer experience credit.
             1663          (1) State agencies shall designate positions for which approved volunteer experience
             1664      satisfies the job requirements for purposes of employment.
             1665          (2) When evaluating applicants for those designated positions, state agencies shall
             1666      consider documented approved volunteer experience in the same manner as similar paid
             1667      employment.
             1668          (3) The [Department] Division of Human Resource Management shall make statewide
             1669      rules governing the:
             1670          (a) designation of volunteer positions; and


             1671          (b) a uniform process to document the approval, use, and hours worked by volunteers.
             1672          Section 48. Section 67-22-2 is amended to read:
             1673           67-22-2. Compensation -- Other state officers.
             1674          (1) The governor shall establish salaries for the following state officers within the
             1675      following salary ranges fixed by the Legislature:
             1676              State Officer                 Salary Range
             1677          Commissioner of Agriculture and Food     $65,200 - $88,400
             1678          Commissioner of Insurance             $65,200 - $88,400
             1679          Commissioner of the Labor Commission     $65,200 - $88,400
             1680          Director, Alcoholic Beverage Control
             1681              Commission                 $65,200 - $88,400
             1682          Commissioner, Department of
             1683              Financial Institutions             $65,200 - $88,400
             1684          Members, Board of Pardons and Parole     $65,200 - $88,400
             1685          Executive Director, Department
             1686              of Commerce                 $65,200 - $88,400
             1687          Executive Director, Commission on
             1688              Criminal and Juvenile Justice     $65,200 - $88,400
             1689          Adjutant General                 $65,200 - $88,400
             1690          Chair, Tax Commission             $70,600 - $95,200
             1691          Commissioners, Tax Commission         $70,600 - $95,200
             1692          Executive Director, Department of
             1693              Community and Economic
             1694              Development                 $70,600 - $95,200
             1695          Executive Director, Tax Commission     $70,600 - $95,200
             1696          Chair, Public Service Commission         $70,600 - $95,200
             1697          Commissioners, Public Service
             1698              Commission                 $70,600 - $95,200
             1699          Executive Director, Department
             1700              of Corrections                 $76,800 - $103,600
             1701          Commissioner, Department of Public Safety     $76,800 - $103,600


             1702          Executive Director, Department of
             1703              Natural Resources             $76,800 - $103,600
             1704          Director, Governor's Office of Planning
             1705              and Budget                 $76,800 - $103,600
             1706          Executive Director, Department of
             1707              Administrative Services         $76,800 - $103,600
             1708          [Executive Director, Department of]
             1709              [Human Resource Management     $76,800 - $103,600]
             1710          Executive Director, Department of
             1711              Environmental Quality         $76,800 - $103,600
             1712          Executive Director, Department of
             1713              Workforce Services             $83,600 - $112,900
             1714          Executive Director, Department of
             1715              Health                     $83,600 - $112,900
             1716          Executive Director, Department
             1717              of Human Services             $83,600 - $112,900
             1718          Executive Director, Department
             1719              of Transportation             $83,600 - $112,900
             1720          Chief Information Officer             $83,600 - $112,900
             1721          (2) (a) The Legislature fixes benefits for the state offices outlined in Subsection (1) as
             1722      follows:
             1723          (i) the option of participating in a state retirement system established by Title 49, Utah
             1724      State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered
             1725      by the State Retirement Office in accordance with the Internal Revenue Code and its
             1726      accompanying rules and regulations;
             1727          (ii) health insurance;
             1728          (iii) dental insurance;
             1729          (iv) basic life insurance;
             1730          (v) unemployment compensation;
             1731          (vi) workers' compensation;
             1732          (vii) required employer contribution to Social Security;


             1733          (viii) long-term disability income insurance;
             1734          (ix) the same additional state-paid life insurance available to other noncareer service
             1735      employees;
             1736          (x) the same severance pay available to other noncareer service employees;
             1737          (xi) the same sick leave, converted sick leave, educational allowances, and holidays
             1738      granted to Schedule B state employees, and the same annual leave granted to Schedule B state
             1739      employees with more than ten years of state service;
             1740          (xii) the option to convert accumulated sick leave to cash or insurance benefits as
             1741      provided by law or rule upon resignation or retirement according to the same criteria and
             1742      procedures applied to Schedule B state employees;
             1743          (xiii) the option to purchase additional life insurance at group insurance rates according
             1744      to the same criteria and procedures applied to Schedule B state employees; and
             1745          (xiv) professional memberships if being a member of the professional organization is a
             1746      requirement of the position.
             1747          (b) Each department shall pay the cost of additional state-paid life insurance for its
             1748      executive director from its existing budget.
             1749          (3) The Legislature fixes the following additional benefits:
             1750          (a) for the executive director of the State Tax Commission a vehicle for official and
             1751      personal use;
             1752          (b) for the executive director of the Department of Transportation a vehicle for official
             1753      and personal use;
             1754          (c) for the executive director of the Department of Natural Resources a vehicle for
             1755      commute and official use;
             1756          (d) for the Commissioner of Public Safety:
             1757          (i) an accidental death insurance policy if POST certified; and
             1758          (ii) a public safety vehicle for official and personal use;
             1759          (e) for the executive director of the Department of Corrections:
             1760          (i) an accidental death insurance policy if POST certified; and
             1761          (ii) a public safety vehicle for official and personal use;
             1762          (f) for the Adjutant General a vehicle for official and personal use; and
             1763          (g) for each member of the Board of Pardons and Parole a vehicle for commute and


             1764      official use.
             1765          (4) (a) The governor has the discretion to establish a specific salary for each office
             1766      listed in Subsection (1), and, within that discretion, may provide salary increases within the
             1767      range fixed by the Legislature.
             1768          (b) The governor shall apply the same overtime regulations applicable to other FLSA
             1769      exempt positions.
             1770          (c) The governor may develop standards and criteria for reviewing the performance of
             1771      the state officers listed in Subsection (1).
             1772          (5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which are
             1773      not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary
             1774      Act, shall be established as provided in Section 67-19-15 .
             1775          Section 49. Section 72-1-203 is amended to read:
             1776           72-1-203. Deputy director -- Appointment -- Qualifications -- Other assistants
             1777      and advisers -- Salaries.
             1778          (1) The executive director shall appoint a deputy director, who shall be a registered
             1779      professional engineer in the state and shall serve at the discretion of the executive director.
             1780          (2) The deputy director is the chief engineer of the department. The deputy director
             1781      shall assist the executive director and is responsible for:
             1782          (a) program and project development; and
             1783          (b) operation and maintenance of the state transportation systems.
             1784          (3) The executive director may also appoint assistants to administer the divisions of the
             1785      department. These assistants shall serve at the discretion of the executive director.
             1786          (4) In addition, the executive director may employ other assistants and advisers as the
             1787      executive director finds necessary and fix salaries in accordance with the salary standards
             1788      adopted by the [Department] Division of Human Resource Management.
             1789          Section 50. Repealer.
             1790          This bill repeals:
             1791          Section 67-19-6.4, Utah Quality Service Award program.
             1792          Section 67-19-7, State agencies contracting to perform personnel functions on own
             1793      behalf.
             1794          Section 67-19-8, Functions of department not to be delegated.


             1795          Section 67-19-9, Functions for which state agencies responsible.
             1796          Section 67-19-10, Functions which director may delegate to state agencies --
             1797      Agreements to delegate -- Contents -- Execution -- Termination.
             1798          Section 51. Legislative intent.
             1799          It is the intent of the Legislature that the Division of Human Resource Management
             1800      renumber its rules, coordinating with the Division of Administrative Rules, and correct
             1801      references within its rules by the effective date of this bill.
             1802          Section 52. Effective date.
             1803          This bill takes effect on July 1, 2006.




Legislative Review Note
    as of 2-15-05 8:36 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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