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H.B. 269

             1     

HUMAN RESOURCE MANAGEMENT

             2     
AMENDMENTS

             3     
2006 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: David Clark

             6     
Senate Sponsor: Beverly Ann Evans

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah State Retirement and Insurance Benefit Act, the Utah
             11      Administrative Services Code, and the Utah State Personnel Management Act to amend
             12      certain provisions related to the Department of Human Resource Management.
             13      Highlighted Provisions:
             14          This bill:
             15          .    changes the Division of Human Resource Management to the Department of
             16      Human Resource Management and the title of its director to executive director;
             17          .    allows an employee in the Public Safety Retirement System who is reassigned to the
             18      Department of Technology Services or to the Department of Human Resource
             19      Management to remain in the same retirement system;
             20          .    adds certain definitions to the Utah State Personnel Management Act;
             21          .    removes a requirement that:
             22              .    the governor approve agreements on the establishment of field offices; and
             23              .    an agency head must be consulted prior to establishing a field office;
             24          .    revises and clarifies certain powers and duties of the Department of Human
             25      Resource Management relating to the provision of human resource functions to
             26      executive branch entities and entities that subscribe to services;
             27          .    allows the Department of Human Resource Management to operate as an internal


             28      service fund agency for the human resource functions the department provides to executive
             29      branch entities and entities that subscribe to services rendered by the listed divisions;
             30          .    creates a rate committee and provides procedures for the approval by the rate
             31      committee of rate changes for services provided by the department;
             32          .    clarifies that state officers accrue annual leave at the maximum rate provided to
             33      Schedule B state employees; and
             34          .     makes technical changes.
             35      Monies Appropriated in this Bill:
             36          None
             37      Other Special Clauses:
             38          This bill takes effect on July 1, 2006.
             39      Utah Code Sections Affected:
             40      AMENDS:
             41          13-1a-3 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             42          35A-1-205 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             43          49-14-201, as last amended by Chapter 265, Laws of Utah 2005
             44          49-15-201, as last amended by Chapter 265, Laws of Utah 2005
             45          49-20-401 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             46          53-6-104 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             47          53A-24-114 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             48          53C-1-201 (Effective 07/01/06), as last amended by Chapters 48 and 181, Laws of
             49      Utah 2005
             50          54-1-6 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             51          54-4a-3 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             52          61-1-18 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             53          62A-15-613 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             54          63-5b-102 (Effective 07/01/06), as last amended by Chapters 71, 148 and 181, Laws of
             55      Utah 2005
             56          63-13-2 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             57          63-34-12 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             58          63A-1-109 (Effective 07/01/06), as last amended by Chapters 169 and 181, Laws of


             59      Utah 2005
             60          63A-9-501 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             61          63A-9-801 (Effective 07/01/06), as last amended by Chapters 148 and 181, Laws of
             62      Utah 2005
             63          67-5-7 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             64          67-5-9 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             65          67-5-12 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             66          67-8-3 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             67          67-8-5 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             68          67-19-3 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             69          67-19-3.1 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             70          67-19-5 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             71          67-19-6 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             72          67-19-6.1 (Effective 07/01/06), as enacted by Chapter 181, Laws of Utah 2005
             73          67-19-6.3, as last amended by Chapter 4, Laws of Utah 2003
             74          67-19-6.7 (Effective 07/01/06), as last amended by Chapters 148 and 181, Laws of
             75      Utah 2005
             76          67-19-11 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             77          67-19-12 (Effective 07/01/06), as last amended by Chapters 114, 148 and 181, Laws of
             78      Utah 2005
             79          67-19-12.2 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             80          67-19-12.5 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             81          67-19-12.7 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             82          67-19-12.9 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             83          67-19-13 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             84          67-19-14, as last amended by Chapter 15, Laws of Utah 2005
             85          67-19-15 (Effective 07/01/06), as last amended by Chapters 148, 169 and 181, Laws of
             86      Utah 2005
             87          67-19-15.1 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             88          67-19-15.6, as last amended by Chapter 44, Laws of Utah 1998
             89          67-19-16, as last amended by Chapter 213, Laws of Utah 1997


             90          67-19-17, as enacted by Chapter 139, Laws of Utah 1979
             91          67-19-18, as last amended by Chapter 130, Laws of Utah 1995
             92          67-19-19 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             93          67-19-31 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             94          67-19-33 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             95          67-19-34 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             96          67-19-36 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             97          67-19-37 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             98          67-19-38 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             99          67-19a-303 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             100          67-19c-101 (Effective 07/01/06), as last amended by Chapters 148 and 181, Laws of
             101      Utah 2005
             102          67-20-8 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             103          67-22-2 (Effective 07/01/06), as last amended by Chapter 8, Laws of Utah 2005, First
             104      Special Session
             105          72-1-203 (Effective 07/01/06), as last amended by Chapter 181, Laws of Utah 2005
             106     
             107      Be it enacted by the Legislature of the state of Utah:
             108          Section 1. Section 13-1a-3 (Effective 07/01/06) is amended to read:
             109           13-1a-3 (Effective 07/01/06). Employment and compensation of personnel --
             110      Compensation of director.
             111          The director, with the approval of the executive director, may employ personnel
             112      necessary to carry out the duties and responsibilities of the division at salaries established by
             113      the executive director according to standards established by the [Division] Department of
             114      Human Resource Management. The executive director shall establish the salary of the director
             115      according to standards established by the [Division] Department of Human Resource
             116      Management.
             117          Section 2. Section 35A-1-205 (Effective 07/01/06) is amended to read:
             118           35A-1-205 (Effective 07/01/06). Workforce Appeals Board -- Chair --
             119      Appointment -- Compensation -- Qualifications.
             120          (1) There is created the Workforce Appeals Board within the department consisting of


             121      one or more panels to hear and decide appeals from the decision of an administrative law
             122      judge.
             123          (2) (a) A panel shall consist of three impartial members appointed by the governor as
             124      follows:
             125          (i) the board chair, appointed in accordance with Subsection (5);
             126          (ii) one member appointed to represent employers; and in making this appointment,
             127      the governor shall consider nominations from employer organizations; and
             128          (iii) one member appointed to represent employees; and in making this appointment,
             129      the governor shall consider nominations from employee organizations.
             130          (b) No more than two members of a panel may belong to the same political party.
             131          (3) (a) (i) The term of a member shall be six years beginning on March 1 of the year
             132      the member is appointed, except as otherwise provided in Subsection (3)(a)(ii).
             133          (ii) The governor shall, at the time of appointment or reappointment, adjust the length
             134      of terms to ensure that the terms of members are staggered so that approximately one third of
             135      the members are appointed every two years.
             136          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             137      appointed for the unexpired term.
             138          (c) The governor may remove a member for inefficiency, neglect of duty, malfeasance
             139      or misfeasance in office, or other good and sufficient cause.
             140          (d) A member shall hold office until a successor is appointed and has qualified.
             141          (4) (a) Except as provided in Subsection (4)(c), a member of the board may not receive
             142      compensation for the member's services, but may receive per diem and expenses incurred in the
             143      performance of the member's official duties at the rates established by the Division of Finance
             144      under Sections 63A-3-106 and 63A-3-107 .
             145          (b) A member may decline to receive per diem and expenses for the member's service.
             146          (c) The member appointed as board chair in accordance with Subsection (5) shall be
             147      compensated at an hourly rate determined by the [Division] Department of Human Resource
             148      Management in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
             149          (5) (a) The chief officer of the board shall be the chair, who shall serve as the executive
             150      and administrative head of the board.
             151          (b) The chair shall be appointed by the governor to represent the public and may be


             152      removed from that position at the will of the governor.
             153          (c) The chair shall be experienced in administration and possess any additional
             154      qualifications determined by the governor.
             155          (6) (a) The chair shall designate an alternate from a panel appointed under this section:
             156          (i) in the absence of a regular member or the chair; or
             157          (ii) if the regular member or the chair has a conflict of interest.
             158          (b) Each case shall be decided by a full three-member panel.
             159          (7) The department shall provide the Workforce Appeals Board necessary staff
             160      support, except, the board may employ, retain, or appoint legal counsel.
             161          Section 3. Section 49-14-201 is amended to read:
             162           49-14-201. System membership -- Eligibility.
             163          (1) Except as provided in Section 49-15-201 , a public safety service employee of a
             164      participating employer participating in this system is eligible for service credit in this system at
             165      the earliest of:
             166          (a) July 1, 1969, if the public safety service employee was employed by the
             167      participating employer on July 1, 1969, and the participating employer was participating in this
             168      system on that date;
             169          (b) the date the participating employer begins participating in this system if the public
             170      safety service employee was employed by the participating employer on that date; or
             171          (c) the date the public safety service employee is employed by the participating
             172      employer and is eligible to perform public safety service.
             173          (2) (a) (i) A participating employer that has public safety service and firefighter service
             174      employees that require cross-training and duty shall enroll those dual purpose employees in the
             175      system in which the greatest amount of time is actually worked.
             176          (ii) The employees shall either be full-time public safety service or full-time firefighter
             177      service employees of the participating employer.
             178          (b) (i) Prior to transferring a dual purpose employee from one system to another, the
             179      participating employer shall receive written permission from the office.
             180          (ii) The office may request documentation to verify the appropriateness of the transfer.
             181          (3) The board may combine or segregate the actuarial experience of participating
             182      employers in this system for the purpose of setting contribution rates.


             183          (4) (a) (i) Each participating employer participating in this system shall annually
             184      submit to the office a schedule indicating the positions to be covered under this system in
             185      accordance with this chapter.
             186          (ii) The office may require documentation to justify the inclusion of any position under
             187      this system.
             188          (b) If there is a dispute between the office and a participating employer or employee
             189      over any position to be covered, the disputed position shall be submitted to the Peace Officer
             190      Standards and Training Council established under Section 53-6-106 for determination.
             191          (c) (i) The Peace Officer Standards and Training Council's authority to decide
             192      eligibility for public safety service credit is limited to claims for coverage under this system for
             193      time periods after July 1, 1989.
             194          (ii) A decision of the Peace Officer Standards and Training Council may not be applied
             195      to service credit earned in another system prior to July 1, 1989.
             196          (iii) Except as provided under Subsection (4)(c)(iv), a decision of the Peace Officer
             197      Standards and Training Council granting a position coverage under this system may only be
             198      applied prospectively from the date of that decision.
             199          (iv) A decision of the Peace Officer Standards and Training Council granting a position
             200      coverage under this system may be applied retroactively only if:
             201          (A) the participating employer covered other similarly situated positions under this
             202      system during the time period in question; and
             203          (B) the position otherwise meets all eligibility requirements for receiving service credit
             204      in this system during the period for which service credit is to be granted.
             205          (5) The Peace Officer Standards and Training Council may use a subcommittee to
             206      provide a recommendation to the council in determining disputes between the office and a
             207      participating employer or employee over a position to be covered under this system.
             208          (6) The Peace Officer Standards and Training Council shall comply with Title 63,
             209      Chapter 46b, Administrative Procedures Act, in resolving coverage disputes in this system.
             210          (7) A public safety employee who is transferred or promoted to an administration
             211      position not covered by this system shall continue to earn public safety service credit in this
             212      system as long as the employee remains employed in the same department.
             213          (8) Any employee who is [transferred to the Division of Information Technology


             214      Services from the Department of Public Safety prior to January 1, 1992] reassigned to the
             215      Department of Technology Services or to the Department of Human Resource Management,
             216      and who was a member of this system, shall be entitled to remain a member of this system
             217      [regardless of whether or not the employee's current position is covered by this system].
             218          (9) (a) To determine that a position is covered under this system, the office and, if a
             219      coverage dispute arises, the Peace Officer Standards and Training Council shall find that the
             220      position requires the employee to:
             221          (i) place the employee's life or personal safety at risk; and
             222          (ii) complete training as provided in Section 53-13-103 , 53-13-104 , or 53-13-105 .
             223          (b) If a position satisfies the requirements of Subsection (9)(a), the office and the Peace
             224      Officer Standards and Training Council shall consider whether or not the position requires the
             225      employee to:
             226          (i) perform duties that consist primarily of actively preventing or detecting crime and
             227      enforcing criminal statutes or ordinances of this state or any of its political subdivisions;
             228          (ii) perform duties that consist primarily of providing community protection; and
             229          (iii) respond to situations involving threats to public safety and make emergency
             230      decisions affecting the lives and health of others.
             231          (10) If a subcommittee is used to recommend the determination of disputes to the
             232      Peace Officer Standards and Training Council, the subcommittee shall comply with the
             233      requirements of Subsection (9) in making its recommendation.
             234          (11) A final order of the Peace Officer Standards and Training Council regarding a
             235      dispute is a final agency action for purposes of Title 63, Chapter 46b, Administrative
             236      Procedures Act.
             237          (12) Except as provided under Subsection (13), if a participating employer's public
             238      safety service employees are not covered by this system or under Chapter 15, Public Safety
             239      Noncontributory Retirement Act, as of January 1, 1998, those public safety service employees
             240      who may otherwise qualify for membership in this system shall, at the discretion of the
             241      participating employer, remain in their current retirement system.
             242          (13) (a) A public safety service employee employed by an airport police department,
             243      which elects to cover its public safety service employees under the Public Safety
             244      Noncontributory Retirement System under Subsection (12), may elect to remain in the public


             245      safety service employee's current retirement system.
             246          (b) The public safety service employee's election to remain in the current retirement
             247      system under Subsection (13)(a):
             248          (i) shall be made at the time the employer elects to move its public safety service
             249      employees to a public safety retirement system;
             250          (ii) documented by written notice to the participating employer; and
             251          (iii) is irrevocable.
             252          Section 4. Section 49-15-201 is amended to read:
             253           49-15-201. System membership -- Eligibility.
             254          (1) (a) A public safety service employee employed by the state after July 1, 1989, is
             255      eligible for service credit in this system.
             256          (b) A public safety service employee employed by the state prior to July 1, 1989, may
             257      either elect to receive service credit in this system or continue to receive service credit under
             258      the system established under Chapter 14, Public Safety Contributory Retirement Act, by
             259      following the procedures established by the board under this chapter.
             260          (2) (a) Public safety service employees of a participating employer other than the state
             261      that elected on or before July 1, 1989, to remain in the Public Safety Contributory Retirement
             262      System shall be eligible only for service credit in that system.
             263          (b) (i) A participating employer other than the state that elected on or before July 1,
             264      1989, to participate in this system shall, have allowed, prior to July 1, 1989, a public safety
             265      service employee to elect to participate in either this system or the Public Safety Contributory
             266      Retirement System.
             267          (ii) Except as expressly allowed by this title, the election of the public safety service
             268      employee is final and may not be changed.
             269          (c) A public safety service employee hired by a participating employer other than the
             270      state after July 1, 1989, shall become a member in this system.
             271          (d) A public safety service employee of a participating employer other than the state
             272      who began participation in this system after July 1, 1989, is only eligible for service credit in
             273      this system.
             274          (3) (a) (i) A participating employer that has public safety service and firefighter service
             275      employees that require cross-training and duty shall enroll those dual purpose employees in the


             276      system in which the greatest amount of time is actually worked.
             277          (ii) The employees shall either be full-time public safety service or full-time firefighter
             278      service employees of the participating employer.
             279          (b) (i) Prior to transferring a dual purpose employee from one system to another, the
             280      participating employer shall receive written permission from the office.
             281          (ii) The office may request documentation to verify the appropriateness of the transfer.
             282          (4) The board may combine or segregate the actuarial experience of participating
             283      employers in this system for the purpose of setting contribution rates.
             284          (5) (a) (i) Each participating employer participating in this system shall annually
             285      submit to the office a schedule indicating the positions to be covered under this system in
             286      accordance with this chapter.
             287          (ii) The office may require documentation to justify the inclusion of any position under
             288      this system.
             289          (b) If there is a dispute between the office and a participating employer or employee
             290      over any position to be covered, the disputed position shall be submitted to the Peace Officer
             291      Standards and Training Council established under Section 53-6-106 for determination.
             292          (c) (i) The Peace Officer Standards and Training Council's authority to decide
             293      eligibility for public safety service credit is limited to claims for coverage under this system for
             294      time periods after July 1, 1989.
             295          (ii) A decision of the Peace Officer Standards and Training Council may not be applied
             296      to service credit earned in another system prior to July 1, 1989.
             297          (iii) Except as provided under Subsection (5)(c)(iv), a decision of the Peace Officer
             298      Standards and Training Council granting a position coverage under this system may only be
             299      applied prospectively from the date of that decision.
             300          (iv) A decision of the Peace Officer Standards and Training Council granting a position
             301      coverage under this system may be applied retroactively only if:
             302          (A) the participating employer covered other similarly situated positions under this
             303      system during the time period in question; and
             304          (B) the position otherwise meets all eligibility requirements for receiving service credit
             305      in this system during the period for which service credit is to be granted.
             306          (6) The Peace Officer Standards and Training Council may use a subcommittee to


             307      provide a recommendation to the council in determining disputes between the office and a
             308      participating employer or employee over a position to be covered under this system.
             309          (7) The Peace Officer Standards and Training Council shall comply with Title 63,
             310      Chapter 46b, Administrative Procedures Act, in resolving coverage disputes in this system.
             311          (8) A public safety service employee who is transferred or promoted to an
             312      administration position not covered by this system shall continue to earn public safety service
             313      credit in this system as long as the employee remains employed in the same department.
             314          (9) Any employee who is [transferred to the Division of Information Technology
             315      Services from the Department of Public Safety prior to January 1, 1992] reassigned to the
             316      Department of Technology Services or to the Department of Human Resource Management,
             317      and who was a member in this system, shall be entitled to remain a member in this system
             318      [regardless of whether or not the employee's current position is covered by this system].
             319          (10) (a) To determine that a position is covered under this system, the office and, if a
             320      coverage dispute arises, the Peace Officer Standards and Training Council shall find that the
             321      position requires the employee to:
             322          (i) place the employee's life or personal safety at risk; and
             323          (ii) complete training as provided in Section 53-13-103 , 53-13-104 , or 53-13-105 .
             324          (b) If a position satisfies the requirements of Subsection (10)(a), the office and Peace
             325      Officer Standards and Training Council shall consider whether the position requires the
             326      employee to:
             327          (i) perform duties that consist primarily of actively preventing or detecting crime and
             328      enforcing criminal statutes or ordinances of this state or any of its political subdivisions;
             329          (ii) perform duties that consist primarily of providing community protection; and
             330          (iii) respond to situations involving threats to public safety and make emergency
             331      decisions affecting the lives and health of others.
             332          (11) If a subcommittee is used to recommend the determination of disputes to the
             333      Peace Officer Standards and Training Council, the subcommittee shall comply with the
             334      requirements of Subsection (10) in making its recommendation.
             335          (12) A final order of the Peace Officer Standards and Training Council regarding a
             336      dispute is a final agency action for purposes of Title 63, Chapter 46b, Administrative
             337      Procedures Act.


             338          (13) Except as provided under Subsection (14), if a participating employer's public
             339      safety service employees are not covered by this system under Chapter 14, Public Safety
             340      Contributory Retirement Act, as of January 1, 1998, those public safety service employees who
             341      may otherwise qualify for membership in this system shall, at the discretion of the participating
             342      employer, remain in their current retirement system.
             343          (14) (a) A public safety service employee employed by an airport police department,
             344      which elects to cover its public safety service employees under the Public Safety
             345      Noncontributory Retirement System under Subsection (13), may elect to remain in the public
             346      safety service employee's current retirement system.
             347          (b) The public safety service employee's election to remain in the current retirement
             348      system under Subsection (14)(a):
             349          (i) shall be made at the time the employer elects to move its public safety service
             350      employees to a public safety retirement system;
             351          (ii) documented by written notice to the participating employer; and
             352          (iii) is irrevocable.
             353          Section 5. Section 49-20-401 (Effective 07/01/06) is amended to read:
             354           49-20-401 (Effective 07/01/06). Program -- Powers and duties.
             355          (1) The program shall:
             356          (a) act as a self-insurer of employee benefit plans and administer those plans;
             357          (b) enter into contracts with private insurers or carriers to underwrite employee benefit
             358      plans as considered appropriate by the program;
             359          (c) indemnify employee benefit plans or purchase commercial reinsurance as
             360      considered appropriate by the program;
             361          (d) provide descriptions of all employee benefit plans under this chapter in cooperation
             362      with covered employers;
             363          (e) process claims for all employee benefit plans under this chapter or enter into
             364      contracts, after competitive bids are taken, with other benefit administrators to provide for the
             365      administration of the claims process;
             366          (f) obtain an annual actuarial review of all health and dental benefit plans and a
             367      periodic review of all other employee benefit plans;
             368          (g) consult with the covered employers to evaluate employee benefit plans and develop


             369      recommendations for benefit changes;
             370          (h) annually submit a budget and audited financial statements to the governor and
             371      Legislature which includes total projected benefit costs and administrative costs;
             372          (i) maintain reserves sufficient to liquidate the unrevealed claims liability and other
             373      liabilities of the employee benefit plans as certified by the program's consulting actuary;
             374          (j) submit its recommended benefit adjustments for state employees to the executive
             375      director of the state [Division] Department of Human Resource Management;
             376          (k) determine benefits and rates, upon approval of the board, for multiemployer risk
             377      pools, retiree coverage, and conversion coverage;
             378          (l) determine benefits and rates, upon approval of the board and the Legislature, for
             379      state employees;
             380          (m) administer benefits and rates, upon ratification of the board, for single employer
             381      risk pools;
             382          (n) request proposals for provider networks or health and dental benefit plans
             383      administered by third party carriers at least once every three years for the purposes of:
             384          (i) stimulating competition for the benefit of covered individuals;
             385          (ii) establishing better geographical distribution of medical care services; and
             386          (iii) providing coverage for both active and retired covered individuals;
             387          (o) offer proposals which meet the criteria specified in a request for proposals and
             388      accepted by the program to active and retired state covered individuals and which may be
             389      offered to active and retired covered individuals of other covered employers at the option of the
             390      covered employer;
             391          (p) perform the same functions established in Subsections (1)(a), (b), (e), and (h) for
             392      the Department of Health if the program provides program benefits to children enrolled in the
             393      Utah Children's Health Insurance Program created in Title 26, Chapter 40, Utah Children's
             394      Health Insurance Act;
             395          (q) establish rules and procedures governing the admission of political subdivisions or
             396      educational institutions and their employees to the program;
             397          (r) contract directly with medical providers to provide services for covered individuals;
             398      and
             399          (s) take additional actions necessary or appropriate to carry out the purposes of this


             400      chapter.
             401          (2) (a) Funds budgeted and expended shall accrue from rates paid by the covered
             402      employers and covered individuals.
             403          (b) Administrative costs shall be approved by the board and reported to the governor
             404      and the Legislature.
             405          (3) The [Division] Department of Human Resource Management shall include the
             406      benefit adjustments described in Subsection (1)(j) in the total compensation plan recommended
             407      to the governor required under Subsection 67-19-12 (6)(a).
             408          Section 6. Section 53-6-104 (Effective 07/01/06) is amended to read:
             409           53-6-104 (Effective 07/01/06). Appointment of director of division --
             410      Qualifications -- Appointment of employees -- Term of office -- Compensation.
             411          (1) The commissioner, upon recommendation of the council and with the approval of
             412      the governor, shall appoint a director of the division.
             413          (2) The director is the executive and administrative head of the division and shall be
             414      experienced in administration and possess additional qualifications as determined by the
             415      commissioner and as provided by law.
             416          (3) The director shall be a full-time officer of the state.
             417          (4) The director may appoint deputies, consultants, clerks, and other employees from
             418      eligibility lists authorized by the [Division] Department of Human Resource Management.
             419          (5) The director may be removed from his position at the will of the commissioner.
             420          (6) The director shall receive compensation as provided by Title 67, Chapter 19, Utah
             421      State Personnel Management Act.
             422          Section 7. Section 53A-24-114 (Effective 07/01/06) is amended to read:
             423           53A-24-114 (Effective 07/01/06). Governor's Committee on Employment of
             424      People with Disabilities.
             425          (1) There is created the Governor's Committee on Employment of People with
             426      Disabilities.
             427          (2) (a) The State Board of Education shall appoint at least twelve members to the
             428      committee.
             429          (b) The State Board of Education shall ensure that the committee includes members
             430      from the public and private sectors who represent:


             431          (i) business and industry;
             432          (ii) individuals with disabilities and their advocates;
             433          (iii) job training and placement;
             434          (iv) administrative subunits of the state, such as the [Division] Department of Human
             435      Resource Management, the Department of Workforce Services, Public Education, Higher
             436      Education, and the Department of Human Services;
             437          (v) labor;
             438          (vi) veterans;
             439          (vii) medical;
             440          (viii) health;
             441          (ix) insurance;
             442          (x) media; and
             443          (xi) the general public.
             444          (c) (i) Except as provided in Subsection (2)(c)(ii), the State Board of Education shall
             445      appoint committee members to serve four-year terms.
             446          (ii) In making the initial appointments to the committee, the State Board of Education
             447      shall appoint approximately 1/2 of the members to two-year terms and 1/2 of the members to
             448      four-year terms.
             449          (d) Committee members shall serve until their successors are appointed and qualified.
             450          (e) The State Board of Education shall fill any vacancy that occurs on the committee
             451      for any reason by appointing a person according to the procedures of this section for the
             452      unexpired term of the vacated member.
             453          (f) The State Board of Education shall select a chair from the membership.
             454          (g) Seven members of the committee are a quorum for the transaction of business.
             455          (3) (a) The committee shall:
             456          (i) promote employment opportunities for individuals with disabilities;
             457          (ii) serve as the designated state liaison to the President's Committee on Employment
             458      of People with Disabilities;
             459          (iii) provide training and technical assistance to employers in implementing the
             460      Americans with Disabilities Act;
             461          (iv) develop and disseminate appropriate information through workshops, meetings,


             462      and other requests in response to needs to employers and others regarding employment of
             463      individuals with disabilities;
             464          (v) establish contacts with various community representatives to identify and resolve
             465      barriers to full participation in employment and community life;
             466          (vi) formally recognize exemplary contributions in the areas of employment, job
             467      placement, training, rehabilitation, support services, medicine, media or public relations, and
             468      personal achievements made by individuals with disabilities;
             469          (vii) advise, encourage, and motivate individuals with disabilities who are preparing
             470      for or seeking employment to reach their full potential as qualified employees;
             471          (viii) advocate for policies and practices that promote full and equal rights for
             472      individuals with disabilities;
             473          (ix) advise the State Board of Education and the governor on issues that affect
             474      employment and other requests for information on disability issues;
             475          (x) prepare an annual report on the progress, accomplishments, and future goals of the
             476      committee and present the report to the State Board of Education and the governor; and
             477          (xi) establish and maintain a cooperative liaison between the governor's office, the
             478      executive director of the committee, and the executive director of the Utah State Office of
             479      Rehabilitation to fulfill the committee's purpose.
             480          (b) The committee may, by following the procedures and requirements of Title 63,
             481      Chapter 38e, Federal Funds Procedures, receive and accept federal funds, and may receive and
             482      accept state funds, private gifts, donations, and funds from any source to carry out its purposes.
             483          (4) The director of the State Office of Rehabilitation shall appoint a person to staff the
             484      committee.
             485          Section 8. Section 53C-1-201 (Effective 07/01/06) is amended to read:
             486           53C-1-201 (Effective 07/01/06). Creation of administration -- Purpose -- Director.
             487          (1) (a) There is established within state government the School and Institutional Trust
             488      Lands Administration.
             489          (b) The administration shall manage all school and institutional trust lands and assets
             490      within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
             491      of Revenue from Trust Lands, and Section 51-7-12 .
             492          (2) The administration is an independent state agency and not a division of any other


             493      department.
             494          (3) (a) It is subject to the usual legislative and executive department controls except as
             495      provided in this Subsection (3).
             496          (b) (i) The director may make rules as approved by the board that allow the
             497      administration to classify a business proposal submitted to the administration as protected
             498      under Section 63-2-304 , for as long as is necessary to evaluate the proposal.
             499          (ii) The administration shall return the proposal to the party who submitted the
             500      proposal, and incur no further duties under Title 63, Chapter 2, Government Records Access
             501      and Management Act, if the administration determines not to proceed with the proposal.
             502          (iii) The administration shall classify the proposal pursuant to law if it decides to
             503      proceed with the proposal.
             504          (iv) Section 63-2-403 does not apply during the review period.
             505          (c) The director shall make rules in compliance with Title 63, Chapter 46a, Utah
             506      Administrative Rulemaking Act, except that the director, with the board's approval, may
             507      establish a procedure for the expedited approval of rules, based on written findings by the
             508      director showing:
             509          (i) the changes in business opportunities affecting the assets of the trust;
             510          (ii) the specific business opportunity arising out of those changes which may be lost
             511      without the rule or changes to the rule;
             512          (iii) the reasons the normal procedures under Section 63-46a-4 cannot be met without
             513      causing the loss of the specific opportunity;
             514          (iv) approval by at least five board members; and
             515          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
             516      reasons and justifications for its findings, with the Division of Administrative Rules and
             517      notified interested parties as provided in Subsection 63-46a-4 (8).
             518          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
             519      Management Act, except as provided in this Subsection (3)(d).
             520          (ii) The board may approve, upon recommendation of the director, that exemption for
             521      specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
             522      the administration to efficiently fulfill its responsibilities under the law. The director shall
             523      consult with the executive director of the [Division] Department of Human Resource


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


             555      accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, to implement
             556      policies provided by the board regarding Native American remains.
             557          (6) In connection with joint ventures for the development of trust lands and minerals
             558      approved by the board under Sections 53C-1-303 and 53C-2-401 , the administration may
             559      become a member of a limited liability company under Title 48, Chapter 2c, Utah Revised
             560      Limited Liability Company Act, and is considered a person under Section 48-2c-102 .
             561          Section 9. Section 54-1-6 (Effective 07/01/06) is amended to read:
             562           54-1-6 (Effective 07/01/06). Employment of staff -- Status and compensation --
             563      Employees not to be parties or witnesses and may not appeal commission decisions.
             564          (1) The annual budget of the Public Service Commission shall provide sufficient funds
             565      for the commission to hire, develop, and organize an advisory staff to assist the commission in
             566      performing the powers, duties, and functions committed to it by statute.
             567          (a) The commission may hire:
             568          (i) economists, accountants, engineers, statisticians, lawyers, law clerks, and other
             569      professional and technical experts;
             570          (ii) court reporters, transcribers of tape recordings, clerks, secretaries, and other
             571      administrative and support staff;
             572          (iii) additional experts as required for a particular matter; and
             573          (iv) administrative law judges, who shall be members of the Utah State Bar, and
             574      constitute a separate organizational unit reporting directly to the commission.
             575          (b) The commission may provide for funds in the annual budget to acquire suitable
             576      electronic recording equipment to maintain a verbatim record of proceedings before the
             577      commission, any commissioner, or any administrative law judge.
             578          (2) (a) With the exception of clerical workers in nonconfidential positions, all staff of
             579      the Public Service Commission are exempt employees under the State Personnel Management
             580      Act and serve at the pleasure of the commission.
             581          (b) Administrative law judges are exempt employees under the State Personnel
             582      Management Act and may only be removed from office upon due notice and by a unanimous
             583      vote of the commission.
             584          (c) (i) The [Division] Department of Human Resource Management shall determine
             585      pay schedules using standard techniques for determining compensation.


             586          (ii) The [Division] Department of Human Resource Management may make its
             587      compensation determinations based upon compensation practices common to utility companies
             588      throughout the United States.
             589          (3) (a) The staff or other employees of the commission may not appear as parties or
             590      witnesses in any proceeding before the commission, any commissioner, or any administrative
             591      law judge.
             592          (b) The staff or other employees of the commission may not appeal any finding, order,
             593      or decision of the commission.
             594          Section 10. Section 54-4a-3 (Effective 07/01/06) is amended to read:
             595           54-4a-3 (Effective 07/01/06). Budget of division -- Employment of personnel.
             596          (1) The annual budget of the Division of Public Utilities shall provide sufficient funds
             597      for the division to hire, develop, and organize a technical and professional staff to perform the
             598      duties, powers, and responsibilities committed to it by statute.
             599          (2) The division director may:
             600          (a) hire economists, accountants, engineers, inspectors, statisticians, lawyers, law
             601      clerks, and other technical and professional experts as may be required;
             602          (b) retain additional experts as required for a particular matter, but only to the extent
             603      that it is necessary to supplement division staff in order to fulfill its duties; and
             604          (c) employ necessary administrative and support staff.
             605          (3) (a) The [Division] Department of Human Resource Management shall determine
             606      pay schedules using standard techniques for determining compensation.
             607          (b) The [Division] Department of Human Resource Management may make its
             608      compensation determinations based upon compensation common to utility companies
             609      throughout the United States.
             610          Section 11. Section 61-1-18 (Effective 07/01/06) is amended to read:
             611           61-1-18 (Effective 07/01/06). Division of Securities established -- Director --
             612      Appointment -- Functions -- Investigators.
             613          (1) (a) There is established within the Department of Commerce a Division of
             614      Securities.
             615          (b) The division shall be under the direction and control of a director, appointed by the
             616      executive director with the governor's approval.


             617          (c) The director shall be responsible for the administration and enforcement of this
             618      chapter.
             619          (d) The director shall hold office at the pleasure of the governor.
             620          (2) The director, with the approval of the executive director, may employ such staff as
             621      necessary to discharge the duties of the division at salaries to be fixed by the director according
             622      to standards established by the [Division] Department of Human Resource Management.
             623          (3) An investigator employed pursuant to Subsection (2) who meets the training
             624      requirements of Subsection 53-13-105 (3) may be designated a special function officer, as
             625      defined in Section 53-13-105 , by the director, but is not eligible for retirement benefits under
             626      the Public Safety Employee's Retirement System.
             627          Section 12. Section 62A-15-613 (Effective 07/01/06) is amended to read:
             628           62A-15-613 (Effective 07/01/06). Appointment of superintendent -- Qualifications
             629      -- Powers and responsibilities.
             630          (1) The director, with the advice and consent of the board and the approval of the
             631      executive director, shall appoint a superintendent of the state hospital, who shall hold office at
             632      the will of the director.
             633          (2) The superintendent shall have a bachelor's degree from an accredited university or
             634      college, be experienced in administration, and be knowledgeable in matters concerning mental
             635      health.
             636          (3) Subject to the rules of the board, the superintendent has general responsibility for
             637      the buildings, grounds, and property of the state hospital. The superintendent shall appoint,
             638      with the approval of the director, as many employees as necessary for the efficient and
             639      economical care and management of the state hospital, and shall fix their compensation and
             640      administer personnel functions according to the standards of the [Division] Department of
             641      Human Resource Management.
             642          Section 13. Section 63-5b-102 (Effective 07/01/06) is amended to read:
             643           63-5b-102 (Effective 07/01/06). Definitions.
             644          (1) (a) "Absent" means:
             645          (i) not physically present or not able to be communicated with for 48 hours; or
             646          (ii) for local government officers, as defined by local ordinances.
             647          (b) "Absent" does not include a person who can be communicated with via telephone,


             648      radio, or telecommunications.
             649          (2) "Attack" means a nuclear, conventional, biological, or chemical warfare action
             650      against the United States of America or this state.
             651          (3) "Department" means the Department of Administrative Services, the Department of
             652      Agriculture and Food, the Alcoholic Beverage Control Commission, the Department of
             653      Commerce, the Department of Community and Culture, the Department of Corrections, the
             654      Department of Environmental Quality, the Department of Financial Institutions, the
             655      Department of Health, the Department of Human Resource Management, the Department of
             656      Workforce Services, the Labor Commission, the National Guard, the Department of Insurance,
             657      the Department of Natural Resources, the Department of Public Safety, the Public Service
             658      Commission, the Department of Human Services, the State Tax Commission, the Department
             659      of Transportation, any other major administrative subdivisions of state government, the State
             660      Board of Education, the State Board of Regents, the Utah Housing Corporation, the Workers'
             661      Compensation Fund, the State Retirement Board, and each institution of higher education
             662      within the system of higher education.
             663          (4) "Disaster" means a situation causing, or threatening to cause, widespread damage,
             664      social disruption, or injury or loss of life or property resulting from attack, internal disturbance,
             665      natural phenomenon, or technological hazard.
             666          (5) "Division" means the Division of Emergency Services and Homeland Security
             667      established in Title 53, Chapter 2, Part 1, [Emergency Management] Emergency Services and
             668      Homeland Security Act.
             669          (6) "Emergency interim successor" means a person designated by this chapter to
             670      exercise the powers and discharge the duties of an office when the person legally exercising the
             671      powers and duties of the office is unavailable.
             672          (7) "Executive director" means the person with ultimate responsibility for managing
             673      and overseeing the operations of each department, however denominated.
             674          (8) "Internal disturbance" means a riot, prison break, disruptive terrorism, or strike.
             675          (9) "Natural phenomenon" means any earthquake, tornado, storm, flood, landslide,
             676      avalanche, forest or range fire, drought, epidemic, or other catastrophic event.
             677          (10) (a) "Office" includes all state and local offices, the powers and duties of which are
             678      defined by constitution, statutes, charters, optional plans, ordinances, articles, or by-laws.


             679          (b) "Office" does not include the office of governor or the legislative or judicial offices.
             680          (11) "Place of governance" means the physical location where the powers of an office
             681      are being exercised.
             682          (12) "Political subdivision" includes counties, cities, towns, townships, districts,
             683      authorities, and other public corporations and entities whether organized and existing under
             684      charter or general law.
             685          (13) "Political subdivision officer" means a person holding an office in a political
             686      subdivision.
             687          (14) "State officer" means the attorney general, the state treasurer, the state auditor, and
             688      the executive director of each department.
             689          (15) "Technological hazard" means any hazardous materials accident, mine accident,
             690      train derailment, air crash, radiation incident, pollution, structural fire, or explosion.
             691          (16) "Unavailable" means:
             692          (a) absent from the place of governance during a disaster that seriously disrupts normal
             693      governmental operations, whether or not that absence or inability would give rise to a vacancy
             694      under existing constitutional or statutory provisions; or
             695          (b) as otherwise defined by local ordinance.
             696          Section 14. Section 63-13-2 (Effective 07/01/06) is amended to read:
             697           63-13-2 (Effective 07/01/06). Legal holidays -- Personal preference day --
             698      Governor authorized to declare additional days.
             699          (1) (a) The following-named days are legal holidays in this state:
             700          (i) every Sunday;
             701          (ii) January 1, called New Year's Day;
             702          (iii) the third Monday of January, called Dr. Martin Luther King, Jr. Day;
             703          (iv) the third Monday of February, called Washington and Lincoln Day;
             704          (v) the last Monday of May, called Memorial Day;
             705          (vi) July 4, called Independence Day;
             706          (vii) July 24, called Pioneer Day;
             707          (viii) the first Monday of September, called Labor Day;
             708          (ix) the second Monday of October, called Columbus Day;
             709          (x) November 11, called Veterans' Day;


             710          (xi) the fourth Thursday of November, called Thanksgiving Day;
             711          (xii) December 25, called Christmas; and
             712          (xiii) all days which may be set apart by the President of the United States, or the
             713      governor of this state by proclamation as days of fast or thanksgiving.
             714          (b) If any of the holidays under Subsection (1)(a), except the first mentioned, namely
             715      Sunday, falls on Sunday, then the following Monday shall be the holiday.
             716          (c) If any of the holidays under Subsection (1)(a) falls on Saturday the preceding Friday
             717      shall be the holiday.
             718          (d) Each employee may select one additional day, called Personal Preference Day, to
             719      be scheduled pursuant to rules adopted by the [Division] Department of Human Resource
             720      Management.
             721          (2) (a) Whenever in his opinion extraordinary conditions exist justifying the action, the
             722      governor may:
             723          (i) declare, by proclamation, legal holidays in addition to those holidays under
             724      Subsection (1); and
             725          (ii) limit the holidays to certain classes of business and activities to be designated by
             726      him.
             727          (b) A holiday may not extend for a longer period than 60 consecutive days.
             728          (c) Any holiday may be renewed for one or more periods not exceeding 30 days each as
             729      the governor may consider necessary, and any holiday may, by like proclamation, be terminated
             730      before the expiration of the period for which it was declared.
             731          Section 15. Section 63-34-12 (Effective 07/01/06) is amended to read:
             732           63-34-12 (Effective 07/01/06). Approval prerequisite to volunteer service -- Rules
             733      and regulations.
             734          (1) Volunteers may not donate any service to the Department of Natural Resources or
             735      its divisions unless and until the work program in which volunteers would serve has first been
             736      approved, in writing, by the executive director of the Department of Natural Resources and the
             737      [director of the Division] executive director of the Department of Human Resource
             738      Management.
             739          (2) Volunteer services shall comply with any rules adopted by the [Division]
             740      Department of Human Resource Management relating to that service that are not inconsistent


             741      with the provisions of Sections 63-34-9 through 63-34-12 .
             742          Section 16. Section 63A-1-109 (Effective 07/01/06) is amended to read:
             743           63A-1-109 (Effective 07/01/06). Divisions of department -- Administration.
             744          (1) The department shall be composed of the following divisions:
             745          (a) administrative rules;
             746          (b) archives and records;
             747          (c) facilities construction and management;
             748          (d) finance;
             749          (e) fleet operations;
             750          (f) office of state debt collection;
             751          (g) state purchasing and general services;
             752          (h) risk management; and
             753          (i) office of child welfare parental defense[; and].
             754          [(j) human resource management.]
             755          (2) Each division shall be administered and managed by a division director.
             756          Section 17. Section 63A-9-501 (Effective 07/01/06) is amended to read:
             757           63A-9-501 (Effective 07/01/06). Complaints about misuse or illegal operation of
             758      state vehicles -- Disposition.
             759          (1) The division shall refer complaints from the public about misuse or illegal
             760      operation of state vehicles to the agency that is the owner or lessor of the vehicle.
             761          (2) Each agency head or his designee shall investigate all complaints about misuse or
             762      illegal operation of state vehicles and shall discipline each employee that is found to have
             763      misused or illegally operated a vehicle by following the procedures set forth in the rules
             764      adopted by the [Division] Department of Human Resource Management as authorized by
             765      Section 67-19-18 .
             766          (3) (a) Each agency shall report the findings of each investigation conducted as well as
             767      any action taken as a result of the investigation to the directors of the Divisions of Fleet
             768      Operations and Risk Management.
             769          (b) Misuse or illegal operation of state vehicles may result in suspension or revocation
             770      of state vehicle driving privileges as governed in rule.
             771          Section 18. Section 63A-9-801 (Effective 07/01/06) is amended to read:


             772           63A-9-801 (Effective 07/01/06). State surplus property program -- Definitions --
             773      Administration.
             774          (1) As used in this section:
             775          (a) "Agency" means:
             776          (i) the Utah Departments of Administrative Services, Agriculture, Alcoholic Beverage
             777      Control, Commerce, Community and Culture, Corrections, Workforce Services, Health,
             778      Human Resource Management, Human Services, Insurance, Natural Resources, Public Safety,
             779      and Transportation and the Labor Commission;
             780          (ii) the Utah Offices of the Auditor, Attorney General, Court Administrator, Crime
             781      Victim Reparations, Rehabilitation, and Treasurer;
             782          (iii) the Public Service Commission and State Tax Commission;
             783          (iv) the State Boards of Education, Pardons and Parole, and Regents;
             784          (v) the Career Service Review Board;
             785          (vi) other state agencies designated by the governor;
             786          (vii) the legislative branch, the judicial branch, and the State Board of Regents; and
             787          (viii) an institution of higher education, its president, and its board of trustees for
             788      purposes of Section 63A-9-802 .
             789          (b) "Division" means the Division of Fleet Operations.
             790          (c) "Information technology equipment" means any equipment that is designed to
             791      electronically manipulate, store, or transfer any form of data.
             792          (d) "Inventory property" means property in the possession of the division that is
             793      available for purchase by an agency or the public.
             794          (e) "Judicial district" means the geographic districts established by Section 78-1-2.1 .
             795          (f) (i) "Surplus property" means property purchased by, seized by, or donated to, an
             796      agency that the agency wishes to dispose of.
             797          (ii) "Surplus property" does not mean real property.
             798          (g) "Transfer" means transfer of surplus property without cash consideration.
             799          (2) (a) The division shall make rules establishing a state surplus property program that
             800      meets the requirements of this chapter by following the procedures and requirements of Title
             801      63, Chapter 46a, Utah Administrative Rulemaking Act.
             802          (b) Those rules shall include:


             803          (i) a requirement prohibiting the transfer of surplus property from one agency to
             804      another agency without written approval from the division;
             805          (ii) procedures and requirements governing division administration requirements that
             806      an agency must follow;
             807          (iii) requirements governing purchase priorities;
             808          (iv) requirements governing accounting, reimbursement, and payment procedures;
             809          (v) procedures for collecting bad debts;
             810          (vi) requirements and procedures for disposing of firearms;
             811          (vii) the elements of the rates or other charges assessed by the division for services and
             812      handling;
             813          (viii) procedures governing the timing and location of public sales of inventory
             814      property; and
             815          (ix) procedures governing the transfer of information technology equipment by state
             816      agencies directly to public schools.
             817          (c) The division shall report all transfers of information technology equipment by state
             818      agencies to public schools to the Utah Technology Commission and to the Legislative Interim
             819      Education Committee at the end of each fiscal year.
             820          (3) In creating and administering the program, the division shall:
             821          (a) when conditions, inventory, and demand permit:
             822          (i) establish facilities to store inventory property at geographically dispersed locations
             823      throughout the state; and
             824          (ii) hold public sales of property at geographically dispersed locations throughout the
             825      state;
             826          (b) establish, after consultation with the agency requesting the sale of surplus property,
             827      the price at which the surplus property shall be sold; and
             828          (c) transfer proceeds arising from the sale of state surplus property to the agency
             829      requesting the sale in accordance with Title 63, Chapter 38, Budgetary Procedures Act, less an
             830      amount established by the division by rule to pay the costs of administering the surplus
             831      property program.
             832          (4) Unless specifically exempted from this chapter by explicit reference to this chapter,
             833      each state agency shall dispose of and acquire surplus property only by participating in the


             834      division's program.
             835          Section 19. Section 67-5-7 (Effective 07/01/06) is amended to read:
             836           67-5-7 (Effective 07/01/06). Establishment of career service system.
             837          (1) The purpose of this chapter is to establish a career service system for attorneys
             838      employed by the Office of the Attorney General that will attract and retain attorneys of proven
             839      ability and experience who will devote their full time to the service of the state.
             840          (2) The Office of the Attorney General may adopt rules necessary to implement this
             841      chapter, including personnel and work rules different from those promulgated by the [Division]
             842      Department of Human Resource Management.
             843          Section 20. Section 67-5-9 (Effective 07/01/06) is amended to read:
             844           67-5-9 (Effective 07/01/06). Reassignment of career status attorneys -- Additional
             845      compensation for managerial assignments -- Employment of special assistant attorneys
             846      general -- Termination of attorneys -- Salary increases.
             847          This chapter does not affect the authority of the attorney general to:
             848          (1) assign and reassign attorneys in a career status to different positions on his staff.
             849      The salary of an attorney reassigned to a different position shall not be decreased by reason of
             850      reassignment; except that if the attorney reassigned occupies the position of deputy attorney
             851      general, the salary may be reduced by not more than 15% upon the assignment to a different
             852      position;
             853          (2) develop, with the assistance of the [Division] Department of Human Resource
             854      Management, a plan for additional compensation for career status attorneys who accept
             855      managerial assignments within the office. The provisions of Subsection (1) notwithstanding,
             856      the attorney general may discontinue any additional compensation if the attorney no longer
             857      holds a managerial assignment. Additional compensation provided under this section shall be
             858      determined by the attorney general pursuant to the plan developed by the Office of the Attorney
             859      General. At such time as the attorney no longer holds a managerial assignment, and the
             860      attorney general decides to discontinue any additional compensation, the reduction may not
             861      place the attorney at a salary below where the attorney would be through normal salary
             862      increases if the attorney had not been in a managerial position;
             863          (3) employ special assistant attorneys general, who shall not be subject to this chapter,
             864      to represent the state in particular lawsuits or to handle particular legal matters for the state;


             865          (4) terminate the employment of any attorney employed by the Office of the Attorney
             866      General who is not in a career service status; or
             867          (5) establish the salary or determine salary increases of any attorney under this chapter.
             868          Section 21. Section 67-5-12 (Effective 07/01/06) is amended to read:
             869           67-5-12 (Effective 07/01/06). Dismissal of career status attorneys -- Causes --
             870      Procedure -- Retention roster -- Reappointment register.
             871          (1) (a) Attorneys in a career status may be dismissed only:
             872          (i) to advance the good of public service;
             873          (ii) where funds have expired or work no longer exists; or
             874          (iii) for causes such as dishonesty, inefficiency, insubordination, disloyalty to the
             875      orders of a superior, misfeasance, malfeasance, or nonfeasance in office.
             876          (b) Attorneys in career status may not be dismissed for reasons of race, national origin,
             877      religion, or political affiliation.
             878          (2) Except in aggravated cases of misconduct, no attorney in a career status may be
             879      demoted or dismissed without the following procedures:
             880          (a) The attorney general shall notify the attorney of the reasons for demotion or
             881      dismissal.
             882          (b) The attorney shall have an opportunity to reply and have the reply considered by the
             883      attorney general.
             884          (c) The attorney shall have an opportunity to be heard by the attorney general or his
             885      designated representatives.
             886          (d) Following a hearing, an attorney may be demoted or dismissed if the attorney
             887      general finds adequate reason.
             888          (e) If the attorney general finds that retention of an attorney would endanger the peace
             889      and safety of others or pose a grave threat to the public interest, the attorney may be summarily
             890      suspended pending administrative hearings and a review by the Career Service Review Board.
             891          (3) (a) An attorney in a career status who is aggrieved by a decision of the attorney
             892      general to either dismiss or demote may appeal the decision to the Career Service Review
             893      Board or its hearing officers by following the procedures in Title 67, Chapter 19a, Grievance
             894      and Appeal Procedures.
             895          (b) Matters other than dismissal or demotion may be appealed to and reviewed by the


             896      attorney general or a designated representative whose decision is final with no right of appeal
             897      to the Career Service Review Board or its hearing officers.
             898          (4) Disciplinary actions shall be supported by credible evidence, but the normal rules
             899      of evidence in courts of law do not apply in hearings before the attorney general or the Career
             900      Service Review Board or its hearing officers.
             901          (5) (a) Reductions in force required by reinstatement of an attorney under Section
             902      67-5-11 , inadequate funds, change of workload, or lack of work shall be governed by a
             903      retention roster to be maintained by the executive director of the [Division] Department of
             904      Human Resource Management and the requirements of this Subsection (5).
             905          (b) Attorneys not in a career status shall be separated before any attorney in a career
             906      status.
             907          (c) Retention points for each attorney in a career status shall be based on the attorney's
             908      seniority in service as an attorney in the Office of the Attorney General, including any military
             909      service fulfilled subsequent to the attorney's original appointment.
             910          (d) Attorneys in career status shall be separated in the order of their retention points,
             911      the attorney with the lowest points to be discharged first.
             912          (e) Those attorneys who are serving in other positions under Section 67-5-11 shall:
             913          (i) have retention points determined as if they were working for the office; and
             914          (ii) be separated in the order of the retention points as if they were working in the
             915      Office of the Attorney General.
             916          (f) An attorney in a career status who is separated by reason of a reduction in force
             917      shall be:
             918          (i) placed on a reappointment register kept by the executive director of the [Division]
             919      Department of Human Resource Management for one year; and
             920          (ii) offered reappointment to a position in the Office of the Attorney General before
             921      any attorney not having a career status is appointed.
             922          Section 22. Section 67-8-3 (Effective 07/01/06) is amended to read:
             923           67-8-3 (Effective 07/01/06). Compensation plan for appointive officers --
             924      Exceptions -- Legislative approval -- Career status attorneys.
             925          (1) (a) The executive director of the [Division] Department of Human Resource
             926      Management, based upon recommendations of the Executive and Judicial Compensation


             927      Commission shall, before October 31 of each year, recommend to the governor a compensation
             928      plan for appointed officers of the state except those officers whose compensation is set under
             929      Section 49-11-203 , 53A-1-301 , 53B-1-105 , or 53C-1-301 .
             930          (b) The plan shall include salaries and wages, paid leave, group insurance plans,
             931      retirement programs, and any other benefits that may be offered to state officers.
             932          (2) The governor shall include in each annual budget proposal to the Legislature
             933      specific recommendations on compensation for those appointed state officers in Subsection (1).
             934          (3) (a) After consultation with the attorney general, the executive director of the
             935      [Division] Department of Human Resource Management shall place career status attorneys on
             936      a state salary schedule at a range comparable with salaries paid attorneys in private and other
             937      public employment.
             938          (b) The attorney general and the executive director shall take into consideration the
             939      experience of the attorney, length of service with the Office of the Attorney General, quality of
             940      performance, and responsibility involved in legal assignments.
             941          (c) The attorney general and the executive director shall periodically adjust the salary
             942      levels for attorneys in a career status to reasonably compensate them for full-time employment
             943      and the restrictions placed on the private practice of law.
             944          Section 23. Section 67-8-5 (Effective 07/01/06) is amended to read:
             945           67-8-5 (Effective 07/01/06). Duties of commission -- Salary recommendations.
             946          (1) (a) The commission shall recommend to the Legislature salaries for:
             947          (i) the governor, the lieutenant governor, the attorney general, the state auditor, and the
             948      state treasurer; and
             949          (ii) justices of the Supreme Court and judges of the constitutional and statutory courts
             950      of record.
             951          (b) The commission shall recommend to the Legislature salary ranges for the other
             952      state officers referred to in Article VII, Section 18, and enumerated in Title 67, Chapter 22,
             953      State Officer Compensation.
             954          (2) As used in this section and for the purposes of compensation in Title 67, Chapter
             955      22, State Officer Compensation, "state officer" means an individual at the executive level in
             956      state government. The term includes:
             957          (a) the governor, the lieutenant governor, the attorney general, the state auditor, and the


             958      state treasurer;
             959          (b) justices of the Supreme Court and judges of all constitutional and statutory courts
             960      of record; and
             961          (c) full-time commissioners and executive directors of executive branch departments
             962      appointed by the governor or with his approval, who report directly to the governor, and who
             963      are enumerated in Section 67-22-2 .
             964          (3) The commission shall:
             965          (a) make studies and formulate recommendations concerning the wage and salary
             966      classification plan based upon factors such as educational requirements, experience,
             967      responsibility, accountability for funds and staff, comparisons with wages paid in other
             968      comparable public and private employment within this state, and other states similarly situated,
             969      and any other factors generally used in similar comprehensive wage and salary classification
             970      plans so that the plan and its administration reflect current conditions at all times;
             971          (b) consult and advise with, and make recommendation to, the [Division] Department
             972      of Human Resource Management regarding the plan, its administration, and the position of any
             973      officer covered by the plan;
             974          (c) submit to the Executive Appropriations Committee not later than 60 days before
             975      commencement of each annual general session:
             976          (i) a report briefly summarizing its activities during the calendar year immediately
             977      preceding the session;
             978          (ii) recommendations concerning revisions, modifications, or changes, if any, which
             979      should be made in the plan, its administration, or in the classification of any officer under the
             980      plan; and
             981          (iii) specific recommendations regarding the office of governor, lieutenant governor,
             982      attorney general, state auditor, and state treasurer concerning adjustments, if any, that should be
             983      made in the salary or other emoluments of office so that all executive and judicial officers,
             984      elected or appointed, receive equitable and consistent treatment regardless of whether salaries
             985      are fixed by the Legislature or by the [Division] Department of Human Resource Management;
             986      and
             987          (d) conduct a comprehensive review of judicial salary levels and make
             988      recommendations for judicial salaries in a report to the president of the Senate, the speaker of


             989      the House of Representatives, and the governor by November 1, prior to the convening of the
             990      general session of the Legislature in each odd-numbered year.
             991          (4) (a) The recommendation under Subsection (3)(d) shall be based upon consultation
             992      with the Judicial Council and upon consideration for the career status of judges. It shall be
             993      based upon comparisons with salaries paid in other states and in comparable public and private
             994      employment within this state.
             995          (b) In even-numbered years, the commission shall update its prior report, based upon
             996      the Consumer Price Index and other relevant factors, and shall forward its updated
             997      recommendations as prescribed in this section.
             998          (5) The Judicial Council shall cooperate with the commission in providing information
             999      on the judicial branch of government and on the individual levels of court as requested. The
             1000      director of personnel from the Office of the Court Administrator shall provide the salary
             1001      comparison data referred to in this section to the legislative fiscal analyst and shall provide
             1002      other staff assistance and support as requested by the legislative fiscal analyst.
             1003          Section 24. Section 67-19-3 (Effective 07/01/06) is amended to read:
             1004           67-19-3 (Effective 07/01/06). Definitions.
             1005          As used in this chapter:
             1006          (1) "Agency" means any department or unit of Utah state government with authority to
             1007      employ personnel.
             1008          (2) "Career service" means positions under Schedule B as defined in Section 67-19-15 .
             1009          (3) "Career service employee" means an employee who has successfully completed a
             1010      probationary period of service in a position covered by the career service.
             1011          (4) "Career service status" means status granted to employees who successfully
             1012      complete probationary periods for competitive career service positions.
             1013          (5) "Classified service" means those positions subject to the classification and
             1014      compensation provisions of Section 67-19-12 .
             1015          (6) "Controlled substance" means controlled substance as defined in Section 58-37-2 .
             1016          (7) (a) "Demotion" means a disciplinary action resulting in a reduction of an
             1017      employee's current actual wage.
             1018          (b) "Demotion" does not mean:
             1019          (i) a nondisciplinary movement of an employee to another position without a reduction


             1020      in the current actual wage; or
             1021          (ii) a reclassification of an employee's position under the provisions of Subsection
             1022      67-19-12 (3) and rules made by the department.
             1023          (8) "Department" means the Department of Human Resource Management.
             1024          [(7) "Director" means the director of the Division of Human Resource Management.]
             1025          [(8)] (9) "Disability" means a physical or mental disability as defined and protected
             1026      under the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
             1027          [(9) "Division" means the Division of Human Resource Management.]
             1028          [(10)] (10) "Employee" means any individual in a paid status covered by the career
             1029      service or classified service provisions of this chapter.
             1030          [(11)] (11) "Examining instruments" means written or other types of proficiency tests.
             1031          [(12)] (12) "Executive director," except where otherwise specified, means the
             1032      executive director of the Department of [Administrative Services] Human Resource
             1033      Management.
             1034          (13) "Human resource function" means those duties and responsibilities specified:
             1035          (a) under Section 67-19-6 ;
             1036          (b) under rules of the department; and
             1037          (c) under other state or federal statute.
             1038          [(13)] (14) "Market comparability adjustment" means a salary range adjustment
             1039      determined necessary through a market survey of salary ranges of a reasonable cross section of
             1040      comparable benchmark positions in private and public employment.
             1041          [(14)] (15) "Probationary employee" means an employee serving a probationary period
             1042      in a career service position but who does not have career service status.
             1043          [(15)] (16) "Probationary period" means that period of time determined by the
             1044      department that an employee serves in a career service position as part of the hiring process
             1045      before career service status is granted to the employee.
             1046          [(16)] (17) "Probationary status" means the status of an employee between the
             1047      employee's hiring and the granting of career service status.
             1048          (18) "Temporary employee" means career service exempt employees on schedule AJ,
             1049      AI, or AL under Section 67-19-15 .
             1050          [(17)] (19) "Total compensation" means salaries and wages, bonuses, paid leave, group


             1051      insurance plans, retirement, and all other benefits offered to state employees as inducements to
             1052      work for the state.
             1053          Section 25. Section 67-19-3.1 (Effective 07/01/06) is amended to read:
             1054           67-19-3.1 (Effective 07/01/06). Principles guiding interpretation of chapter and
             1055      adoption of rules.
             1056          (1) The [division] department shall establish a career service system designed in a
             1057      manner that will provide for the effective implementation of the following merit principles:
             1058          (a) recruiting, selecting, and advancing employees on the basis of their relative ability,
             1059      knowledge, and skills, including open consideration of qualified applicants for initial
             1060      appointment;
             1061          (b) providing for equitable and competitive compensation;
             1062          (c) training employees as needed to assure high-quality performance;
             1063          (d) retaining employees on the basis of the adequacy of their performance and
             1064      separating employees whose inadequate performance cannot be corrected;
             1065          (e) fair treatment of applicants and employees in all aspects of human resource
             1066      administration without regard to race, color, religion, sex, national origin, political affiliation,
             1067      age, or disability, and with proper regard for their privacy and constitutional rights as citizens;
             1068          (f) providing information to employees regarding their political rights and the
             1069      prohibited practices under the Hatch Act; and
             1070          (g) providing a formal procedure for processing the appeals and grievances of
             1071      employees without discrimination, coercion, restraint, or reprisal.
             1072          (2) The principles in Subsection (1) shall govern interpretation and implementation of
             1073      this chapter.
             1074          Section 26. Section 67-19-5 (Effective 07/01/06) is amended to read:
             1075           67-19-5 (Effective 07/01/06). Department of Human Resource Management
             1076      created -- Executive director -- Compensation -- Staff.
             1077          (1) There is created the [Division] Department of Human Resource Management
             1078      [within the Department of Administrative Services].
             1079          (2) (a) The [division] department shall be administered by [a] an executive director
             1080      appointed by the governor with the consent of the Senate.
             1081          (b) The executive director shall be a person with experience in human resource


             1082      management and shall be accountable to the [executive director] governor for [his] the
             1083      executive director's performance in office.
             1084          (3) The executive director may:
             1085          (a) appoint a personal secretary and[, with the approval of the executive director,] a
             1086      deputy director, both of whom shall be exempt from career service[.]; and
             1087          (b) appoint division directors and program managers who may be career service
             1088      exempt.
             1089          (4) (a) The executive director shall have full responsibility and accountability for the
             1090      administration of the statewide human resource management system.
             1091          (b) Except as provided in Section 67-19-6.1 , an agency may not perform human
             1092      resource functions without the consent of the executive director.
             1093          (5) Statewide human resource management rules adopted by the [Division] Department
             1094      of Human Resource Management in accordance with Title 63, Chapter 46a, Utah
             1095      Administrative Rulemaking Act, shall take precedence if there is a conflict with [department]
             1096      agency rules, policies, or practices.
             1097          (6) The department may operate as an internal service fund agency in accordance with
             1098      Section 63-38-3.5 for the human resource functions the department provides.
             1099          Section 27. Section 67-19-6 (Effective 07/01/06) is amended to read:
             1100           67-19-6 (Effective 07/01/06). Responsibilities of the executive director.
             1101          (1) The executive director shall:
             1102          (a) develop, implement, and administer a statewide program of human resource
             1103      management that will:
             1104          (i) aid in the efficient execution of public policy;
             1105          (ii) foster careers in public service for qualified employees; and
             1106          (iii) render assistance to state agencies in performing their missions;
             1107          (b) design and administer the state pay plan;
             1108          (c) design and administer the state classification system and procedures for determining
             1109      schedule assignments;
             1110          (d) design and administer the state recruitment and selection system;
             1111          (e) [monitor] administer agency human resource practices [to determine] and ensure
             1112      compliance with federal law, state law, and state human resource rules, including equal


             1113      employment opportunity;
             1114          (f) consult with agencies on decisions concerning employee corrective action and
             1115      discipline;
             1116          [(f)] (g) maintain central personnel records;
             1117          [(g)] (h) perform those functions necessary to implement this chapter unless otherwise
             1118      assigned or prohibited;
             1119          [(h)] (i) perform duties assigned by the governor or statute;
             1120          [(i)] (j) adopt rules for human resource management according to the procedures of
             1121      Title 63, Chapter 46a, Utah Administrative Rulemaking Act;
             1122          [(j)] (k) establish and maintain a management information system that will furnish the
             1123      governor, the Legislature, and agencies with current information on authorized positions,
             1124      payroll, and related matters concerning state human resources;
             1125          [(k)] (l) conduct research and planning activities to:
             1126          (i) determine and prepare for future state human resource needs;
             1127          (ii) develop methods for improving public human resource management; and
             1128          (iii) propose needed policy changes to the governor;
             1129          [(l)] (m) study the character, causes, and extent of discrimination in state employment
             1130      and develop plans for its elimination through programs consistent with federal and state laws
             1131      governing equal employment opportunity in employment;
             1132          [(m)] (n) when requested by counties, municipalities, and other political subdivisions
             1133      of the state, provide technical service and advice on human resource management at a charge
             1134      determined by the executive director;
             1135          [(n)] (o) establish compensation policies and procedures for early voluntary retirement;
             1136          [(o)] (p) confer with the heads of other agencies about human resource policies and
             1137      procedures;
             1138          [(p)] (q) submit an annual report to the governor and the Legislature; and
             1139          [(q)] (r) (i) develop a procedure by which each agency will:
             1140          (A) identify funded vacant positions; and
             1141          (B) report those funded vacant positions to the [division] department;
             1142          (ii) identify all funded employee positions in each agency that have been vacant for
             1143      more than 180 consecutive days during the 18-month period prior to July 1 of each year; and


             1144          (iii) by no later than September 1 of each year, provide a report of all funded employee
             1145      positions in each agency identified in Subsections (1)[(q)](r)(i) and (ii) to:
             1146          (A) the Governor's Office of Planning and Budget; and
             1147          (B) the Office of the Legislative Fiscal Analyst.
             1148          (2) (a) After consultation with the governor and the heads of other agencies, the
             1149      executive director shall establish and coordinate statewide training programs.
             1150          (b) The programs developed under this Subsection (2) shall have application to more
             1151      than one agency.
             1152          (c) The [division] department may not establish training programs that train employees
             1153      to perform highly specialized or technical jobs and tasks.
             1154          (3) (a) (i) The [division] department may collect fees for training as authorized by this
             1155      Subsection (3).
             1156          (ii) Training funded from General Fund appropriations shall be treated as a separate
             1157      program within the [division] department budget.
             1158          (iii) All money received from fees under this section will be accounted for by the
             1159      [division] department as a separate user driven training program.
             1160          (iv) The user training program includes the costs of developing, procuring, and
             1161      presenting training and development programs, and other associated costs for these programs.
             1162          (b) (i) Funds remaining at the end of the fiscal year in the user training program are
             1163      nonlapsing.
             1164          (ii) Each year, as part of the appropriations process, the Legislature shall review the
             1165      amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
             1166      the [division] department to lapse a portion of the funds.
             1167          Section 28. Section 67-19-6.1 (Effective 07/01/06) is amended to read:
             1168           67-19-6.1 (Effective 07/01/06). Department field offices.
             1169          (1) [After consulting with an agency head, the] The executive director of the [Division]
             1170      Department of Human Resource Management may establish a field office in [that] an agency.
             1171          (2) The executive director [shall] may assign an employee of the [division] department
             1172      to act as field office [director] staff.
             1173          (3) [Before establishing a field office, the] The executive director and agency head
             1174      shall sign an agreement, to be [approved by the governor] reviewed annually, that specifies:


             1175          [(a) the scope of responsibility of the field office director and staff;]
             1176          [(b)] (a) the services to be provided by the [field office director and staff] department;
             1177          [(c) the relationship between the field office director and agency management;]
             1178          [(d) the facilities, equipment, supplies, and budget to be provided for the field office by
             1179      the agency and the allocation of the cost of those facilities, equipment, and supplies;]
             1180          [(e) staff size;]
             1181          (b) the use of agency facilities and equipment by the field office;
             1182          [(f)] (c) protocols to resolve discrepancies between agency practice and [Division]
             1183      Department of Human Resource Management policy; and
             1184          [(g) the date that the agreement shall terminate if not previously terminated or renewed;
             1185      and]
             1186          [(h)] (d) any other issue necessary for the proper functioning of the field office [within
             1187      the agency].
             1188          (4) Unless otherwise provided for in the field office agreement, the agency shall:
             1189          (a) obtain field office approval for the final selection of qualified applicants for
             1190      appointment and promotion to vacant positions;
             1191          (b) assign responsibilities and duties to its employees;
             1192          [(b)] (c) conduct performance appraisals;
             1193          [(c)] (d) discipline its employees in consultation with the department; and
             1194          [(d)] (e) maintain individual personnel records.
             1195          [(5) Any field office agreement shall be subject to termination by the director with the
             1196      approval of the governor.]
             1197          Section 29. Section 67-19-6.3 is amended to read:
             1198           67-19-6.3. Equal employment opportunity plan.
             1199          (1) In conjunction with the director's duties under Section 67-19-6 , and
             1200      notwithstanding the general prohibition in Subsection 34A-5-106 (3)(c), the executive director
             1201      shall prepare an equal employment opportunity plan for state employment consistent with the
             1202      guidelines provided in federal equal employment opportunity laws and in related federal
             1203      regulations.
             1204          (2) The equal employment opportunity plan required by this section applies only to
             1205      state career service employees described in Section 67-19-15 .


             1206          (3) The Legislature shall review the equal employment opportunity plan required by
             1207      this section before it may be implemented.
             1208          (4) Nothing in this section requires the establishment of hiring quotas or preferential
             1209      treatment of any identifiable group.
             1210          Section 30. Section 67-19-6.7 (Effective 07/01/06) is amended to read:
             1211           67-19-6.7 (Effective 07/01/06). Overtime policies for state employees.
             1212          (1) As used in this section:
             1213          (a) "Accrued overtime hours" means:
             1214          (i) for nonexempt employees, overtime hours earned during a fiscal year that, at the end
             1215      of the fiscal year, have not been paid and have not been taken as time off by the nonexempt
             1216      state employee who accrued them; and
             1217          (ii) for exempt employees, overtime hours earned during an overtime year.
             1218          (b) "Appointed official" means:
             1219          (i) each department executive director and deputy director, each division director, and
             1220      each member of a board or commission; and
             1221          (ii) any other person employed by a department who is appointed by, or whose
             1222      appointment is required by law to be approved by, the governor and who:
             1223          (A) is paid a salary by the state; and
             1224          (B) who exercises managerial, policy-making, or advisory responsibility.
             1225          (c) "Department" means the Department of Administrative Services, the Department of
             1226      Corrections, the Department of Financial Institutions, the Department of Alcoholic Beverage
             1227      Control, the Insurance Department, the Public Service Commission, the Labor Commission,
             1228      the Department of Agriculture and Food, the Department of Human Services, the State Board
             1229      of Education, the Department of Natural Resources, the Department of Transportation, the
             1230      Department of Commerce, the Department of Workforce Services, the State Tax Commission,
             1231      the Department of Community and Culture, the Department of Health, the National Guard, the
             1232      Department of Environmental Quality, the Department of Public Safety, the Department of
             1233      Human Resource Management, the Commission on Criminal and Juvenile Justice, all merit
             1234      employees except attorneys in the Office of the Attorney General, merit employees in the
             1235      Office of the State Treasurer, and merit employees in the Office of the State Auditor.
             1236          (d) "Elected official" means any person who is an employee of the state because he was


             1237      elected by the registered voters of Utah to a position in state government.
             1238          (e) "Exempt employee" means a state employee who is exempt as defined by the Fair
             1239      Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             1240          (f) "FLSA" means the Fair Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             1241          (g) "FLSA agreement" means the agreement authorized by the Fair Labor Standards
             1242      Act of 1978, 29 U.S.C. Section 201 et seq., by which a nonexempt employee elects the form of
             1243      compensation he will receive for overtime.
             1244          (h) "Nonexempt employee" means a state employee who is nonexempt as defined by
             1245      the [Division] Department of Human Resource Management applying FLSA requirements.
             1246          (i) "Overtime" means actual time worked in excess of the employee's defined work
             1247      period.
             1248          (j) "Overtime year" means the year determined by a department under Subsection
             1249      (4)(b) at the end of which an exempt employee's accrued overtime lapses.
             1250          (k) (i) "State employee" means every person employed by a department who is not an
             1251      appointed official or an elected official.
             1252          (ii) "State employee" does not mean:
             1253          (A) certificated employees of the State Board of Education; and
             1254          (B) employees of the Department of Community and Culture or the Governor's Office
             1255      of Economic Development, whose positions are designated as schedule AM exempt employees
             1256      under Section 67-19-15 .
             1257          (l) "Uniform annual date" means the date when an exempt employee's accrued
             1258      overtime lapses.
             1259          (m) "Work period" means:
             1260          (i) for all nonexempt employees, except law enforcement and hospital employees, a
             1261      consecutive seven day 24 hour work period of 40 hours;
             1262          (ii) for all exempt employees, a 14 day, 80 hour payroll cycle; and
             1263          (iii) for nonexempt law enforcement and hospital employees, the period established by
             1264      each department by rule for those employees according to the requirements of the Fair Labor
             1265      Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             1266          (2) Each department shall compensate each state employee who works overtime by
             1267      complying with the requirements of this section.


             1268          (3) (a) Each department shall negotiate and obtain a signed FLSA agreement from each
             1269      nonexempt employee.
             1270          (b) In the FLSA agreement, the nonexempt employee shall elect either to be
             1271      compensated for overtime by:
             1272          (i) taking time off work at the rate of one and one-half hour off for each overtime hour
             1273      worked; or
             1274          (ii) being paid for the overtime worked at the rate of one and one-half times the rate per
             1275      hour that the state employee receives for nonovertime work.
             1276          (c) Any nonexempt employee who elects to take time off under this Subsection (3)
             1277      shall be paid for any overtime worked in excess of the cap established by the [Division]
             1278      Department of Human Resource Management.
             1279          (d) Before working any overtime, each nonexempt employee shall obtain authorization
             1280      to work overtime from the employee's immediate supervisor.
             1281          (e) Each department shall:
             1282          (i) for employees who elect to be compensated with time off for overtime, allow
             1283      overtime earned during a fiscal year to be accumulated; and
             1284          (ii) for employees who elect to be paid for overtime worked, pay them for overtime
             1285      worked in the paycheck for the pay period in which the employee worked the overtime.
             1286          (f) If the department pays a nonexempt employee for overtime, the department shall
             1287      charge that payment to the department's budget.
             1288          (g) At the end of each fiscal year, the Division of Finance shall total all the accrued
             1289      overtime hours for nonexempt employees and charge that total against the appropriate fund or
             1290      subfund.
             1291          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), each department shall
             1292      compensate exempt employees who work overtime by granting them time off at the rate of one
             1293      hour off for each hour of overtime worked.
             1294          (ii) The executive director of the [Division] Department of Human Resource
             1295      Management may grant limited exceptions to this requirement, where work circumstances
             1296      dictate, by authorizing a department to pay employees for overtime worked at the rate per hour
             1297      that the employee receives for nonovertime work, if the department has funds available.
             1298          (b) (i) Each department shall:


             1299          (A) establish in its written human resource policies a uniform annual date for each
             1300      division that is at the end of any pay period; and
             1301          (B) communicate the uniform annual date to its employees.
             1302          (ii) If any department fails to establish a uniform annual date as required by this
             1303      Subsection (4), the executive director of the [Division] Department of Human Resource
             1304      Management, in conjunction with the director of the Division of Finance, shall establish the
             1305      date for that department.
             1306          (c) (i) Any overtime earned under this Subsection (4) is not an entitlement, is not a
             1307      benefit, and is not a vested right.
             1308          (ii) A court may not construe the overtime for exempt employees authorized by this
             1309      Subsection (4) as an entitlement, a benefit, or as a vested right.
             1310          (d) At the end of the overtime year, upon transfer to another department at any time,
             1311      and upon termination, retirement, or other situations where the employee will not return to
             1312      work before the end of the overtime year:
             1313          (i) any of an exempt employee's overtime that is more than the maximum established
             1314      by the [Division] Department of Human Resource Management rule lapses; and
             1315          (ii) unless authorized by the executive director of the [Division] Department of Human
             1316      Resource Management under Subsection (4)(a)(ii), a department may not compensate the
             1317      exempt employee for that lapsed overtime by paying the employee for the overtime or by
             1318      granting the employee time off for the lapsed overtime.
             1319          (e) Before working any overtime, each exempt employee shall obtain authorization to
             1320      work overtime from the exempt employee's immediate supervisor.
             1321          (f) If the department pays an exempt employee for overtime under authorization from
             1322      the executive director of the [Division] Department of Human Resource Management, the
             1323      department shall charge that payment to the department's budget in the pay period earned.
             1324          (5) The [Division] Department of Human Resource Management shall:
             1325          (a) ensure that the provisions of the FLSA and this section are implemented throughout
             1326      state government;
             1327          (b) determine, for each state employee, whether that employee is exempt, nonexempt,
             1328      law enforcement, or has some other status under the FLSA;
             1329          (c) in coordination with modifications to the systems operated by the Division of


             1330      Finance, make rules:
             1331          (i) establishing procedures for recording overtime worked that comply with FLSA
             1332      requirements;
             1333          (ii) establishing requirements governing overtime worked while traveling and
             1334      procedures for recording that overtime that comply with FLSA requirements;
             1335          (iii) establishing requirements governing overtime worked if the employee is "on call"
             1336      and procedures for recording that overtime that comply with FLSA requirements;
             1337          (iv) establishing requirements governing overtime worked while an employee is being
             1338      trained and procedures for recording that overtime that comply with FLSA requirements;
             1339          (v) subject to the FLSA, establishing the maximum number of hours that a nonexempt
             1340      employee may accrue before a department is required to pay the employee for the overtime
             1341      worked;
             1342          (vi) subject to the FLSA, establishing the maximum number of overtime hours for an
             1343      exempt employee that do not lapse; and
             1344          (vii) establishing procedures for adjudicating appeals of any FLSA determinations
             1345      made by the [Division] Department of Human Resource Management as required by this
             1346      section;
             1347          (d) monitor departments for compliance with the FLSA; and
             1348          (e) recommend to the Legislature and the governor any statutory changes necessary
             1349      because of federal government action.
             1350          (6) In coordination with the procedures for recording overtime worked established in
             1351      rule by the [Division] Department of Human Resource Management, the Division of Finance
             1352      shall modify its payroll and human resource systems to accommodate those procedures.
             1353          (a) Notwithstanding the procedures and requirements of Title 63, Chapter 46b,
             1354      Administrative Procedures Act, Section 67-19-31 , and Section 67-19a-301 , any employee who
             1355      is aggrieved by the FLSA designation made by the [Division] Department of Human Resource
             1356      Management as required by this section may appeal that determination to the executive director
             1357      of the [Division] Department of Human Resource Management by following the procedures
             1358      and requirements established in [Division] Department of Human Resource Management rule.
             1359          (b) Upon receipt of an appeal under this section, the executive director shall notify the
             1360      executive director of the employee's department that the appeal has been filed.


             1361          (c) If the employee is aggrieved by the decision of the executive director of the
             1362      [Division] Department of Human Resource Management, he shall appeal that determination to
             1363      the Department of Labor, Wage and Hour Division, according to the procedures and
             1364      requirements of federal law.
             1365          Section 31. Section 67-19-11 (Effective 07/01/06) is amended to read:
             1366           67-19-11 (Effective 07/01/06). Use of department facilities -- Field office facilities
             1367      cost allocation -- Funding for department.
             1368          (1) (a) All officers and employees of the state and its political subdivisions shall allow
             1369      the [division] department to use public buildings under their control, and furnish heat, light,
             1370      and furniture, for any examination, hearing, or investigation authorized by this chapter.
             1371          [(b) (i) Allocation of the cost for any facilities, equipment, or supplies furnished by an
             1372      agency for use as a field office of the division shall be governed by the field office agreement
             1373      established in Section 67-19-6.1 .]
             1374          [(ii) If the field office agreement does not specifically provide for the allocation of a
             1375      cost for the division's use of the agency's facilities, equipment, or supplies, the agency shall pay
             1376      the cost of those facilities, equipment, and supplies.]
             1377          (b) The cost of the department's use of facilities shall be paid by the agency housing a
             1378      field office staff.
             1379          (2) The executive director shall:
             1380          (a) prepare an annual budget request for the [division, which is subject to the executive
             1381      director's approval; and] department;
             1382          (b) submit the budget request to the governor and the Legislature[.]; and
             1383          (c) except for fiscal year 2007, before charging a fee for services provided by the
             1384      department's internal service fund to an executive branch agency, the executive director shall:
             1385          (i) submit the proposed rates, fees, and cost analysis to the Rate Committee established
             1386      under Subsection (3); and
             1387          (ii) obtain the approval of the Legislature as required under Section 63-38-3.5 .
             1388          (3) (a) There is created a Rate Committee which shall consist of:
             1389          (i) the director of the Governor's Office of Planning and Budget, or a designee;
             1390          (ii) the executive directors of three state agencies that use services and pay rates to one
             1391      of the department internal service funds, or their designee, appointed by the governor for a


             1392      two-year term;
             1393          (iii) the director of the Division of Finance, or a designee; and
             1394          (iv) the executive director of the Department of Human Resource Management, or a
             1395      designee.
             1396          (b) (i) The committee shall elect a chair from its members.
             1397          (ii) Members of the committee who are state government employees and who do not
             1398      receive salary, per diem, or expenses from their agency for their service on the committee shall
             1399      receive no compensation, benefits, per diem, or expenses for the members' service on the
             1400      committee.
             1401          (c) The Department of Human Resource Management shall provide staff services to the
             1402      committee.
             1403          (4) (a) The department shall submit to the committee a proposed rate and fee schedule
             1404      for services rendered.
             1405          (b) The committee shall:
             1406          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public
             1407      Meetings;
             1408          (ii) review the proposed rate and fee schedules and may approve, increase, or decrease
             1409      the rate and fee;
             1410          (iii) recommend a proposed rate and fee schedule for the internal service fund to:
             1411          (A) the Governor's Office of Planning and Budget; and
             1412          (B) the legislative appropriations subcommittees that, in accordance with Section
             1413      63-38-3.5 , approve the internal service fund rates, fees, and budget; and
             1414          (iv) review and approve, increase or decrease an interim rate, fee, or amount when the
             1415      department begins a new service or introduces a new product between annual general sessions
             1416      of the Legislature.
             1417          (c) The committee may in accordance with Subsection 63-38-3.5 (4) decrease a rate,
             1418      fee, or amount that has been approved by the Legislature.
             1419          Section 32. Section 67-19-12 (Effective 07/01/06) is amended to read:
             1420           67-19-12 (Effective 07/01/06). State pay plans -- Applicability of section --
             1421      Exemptions -- Duties of the executive director.
             1422          (1) (a) This section, and the rules adopted by the [division] department to implement


             1423      this section, apply to each career and noncareer employee not specifically exempted under
             1424      Subsection (2).
             1425          (b) If not exempted under Subsection (2), an employee is considered to be in classified
             1426      service.
             1427          (2) The following employees are exempt from this section:
             1428          (a) members of the Legislature and legislative employees;
             1429          (b) members of the judiciary and judicial employees;
             1430          (c) elected members of the executive branch and their direct staff who meet career
             1431      service exempt criteria as defined in Subsection 67-19-15 (1)(k);
             1432          (d) certificated employees of the State Board of Education;
             1433          (e) officers, faculty, and other employees of state institutions of higher education;
             1434          (f) employees in any position that is determined by statute to be exempt from this
             1435      Subsection (2);
             1436          (g) attorneys in the Office of the Attorney General;
             1437          (h) department heads and other persons appointed by the governor pursuant to statute;
             1438          (i) employees of the Department of Community and Culture whose positions are
             1439      designated as executive/professional positions by the executive director of the Department of
             1440      Community and Culture with the concurrence of the executive director;
             1441          (j) employees of the Governor's Office of Economic Development whose positions are
             1442      designated as executive/professional positions by the director of the office; and
             1443          (k) employees of the Medical Education Council.
             1444          (3) (a) The executive director shall prepare, maintain, and revise a position
             1445      classification plan for each employee position not exempted under Subsection (2) to provide
             1446      equal pay for equal work.
             1447          (b) Classification of positions shall be based upon similarity of duties performed and
             1448      responsibilities assumed, so that the same job requirements and the same salary range may be
             1449      applied equitably to each position in the same class.
             1450          (c) The executive director shall allocate or reallocate the position of each employee in
             1451      classified service to one of the classes in the classification plan.
             1452          (d) (i) The [division] department shall conduct periodic studies and desk audits to
             1453      provide that the classification plan remains reasonably current and reflects the duties and


             1454      responsibilities assigned to and performed by employees.
             1455          (ii) The executive director shall determine the schedule for studies and desk audits after
             1456      considering factors such as changes in duties and responsibilities of positions or agency
             1457      reorganizations.
             1458          (4) (a) With the approval of the governor, the executive director shall develop and
             1459      adopt pay plans for each position in classified service.
             1460          (b) The executive director shall design each pay plan to achieve, to the degree that
             1461      funds permit, comparability of state salary ranges to salary ranges used by private enterprise
             1462      and other public employment for similar work.
             1463          (c) The executive director shall adhere to the following in developing each pay plan:
             1464          (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
             1465      differential among the various classes of positions in the classification plan.
             1466          (ii) (A) The executive director shall assign each class of positions in the classification
             1467      plan to a salary range and shall set the width of the salary range to reflect the normal growth
             1468      and productivity potential of employees in that class.
             1469          (B) The width of the ranges need not be uniform for all classes of positions in the plan,
             1470      but each range shall contain merit steps in increments of 2.75% salary increases.
             1471          (iii) (A) The executive director shall issue rules for the administration of pay plans.
             1472          (B) The rules may provide for exceptional performance increases and for a program of
             1473      incentive awards for cost-saving suggestions and other commendable acts of employees.
             1474          (C) The executive director shall issue rules providing for salary adjustments.
             1475          (iv) Merit step increases shall be granted, if funds are available, to employees who
             1476      receive a rating of "successful" or higher in an annual evaluation of their productivity and
             1477      performance.
             1478          (v) By October 31 of each year, the executive director shall submit market
             1479      comparability adjustments to the director of the Governor's Office of Planning and Budget for
             1480      consideration to be included as part of the affected agency's base budgets.
             1481          (vi) By October 31 of each year, the executive director shall recommend a
             1482      compensation package to the governor.
             1483          (vii) (A) Adjustments shall incorporate the results of a total compensation market
             1484      survey of salary ranges and benefits of a reasonable cross section of comparable benchmark


             1485      positions in private and public employment in the state.
             1486          (B) The survey may also study comparable unusual positions requiring recruitment in
             1487      other states.
             1488          (C) The executive director may cooperate with other public and private employers in
             1489      conducting the survey.
             1490          (viii) (A) The executive director shall establish criteria to assure the adequacy and
             1491      accuracy of the survey and shall use methods and techniques similar to and consistent with
             1492      those used in private sector surveys.
             1493          (B) Except as provided under Section 67-19-12.3 , the survey shall include a reasonable
             1494      cross section of employers.
             1495          (C) The executive director may cooperate with or participate in any survey conducted
             1496      by other public and private employers.
             1497          (D) The executive director shall obtain information for the purpose of constructing the
             1498      survey from the Division of Workforce Information and Payment Services and shall include
             1499      employer name, number of persons employed by the employer, employer contact information
             1500      and job titles, county code, and salary if available.
             1501          (E) The department shall acquire and protect the needed records in compliance with the
             1502      provisions of Section 35A-4-312 .
             1503          (ix) The establishing of a salary range is a nondelegable activity and is not appealable
             1504      under the grievance procedures of Sections 67-19-30 through 67-19-32 , Title 67, Chapter 19a,
             1505      Grievance and Appeal Procedures, or otherwise.
             1506          (x) The governor shall:
             1507          (A) consider salary adjustments recommended under Subsection (4)(c)(vi) in preparing
             1508      the executive budget and shall recommend the method of distributing the adjustments;
             1509          (B) submit compensation recommendations to the Legislature; and
             1510          (C) support the recommendation with schedules indicating the cost to individual
             1511      departments and the source of funds.
             1512          (xi) If funding is approved by the Legislature in a general appropriations act, the
             1513      adjustments take effect on the July 1 following the enactment.
             1514          (5) (a) The executive director shall regularly evaluate the total compensation program
             1515      of state employees in the classified service.


             1516          (b) The [division] department shall determine if employee benefits are comparable to
             1517      those offered by other private and public employers using information from:
             1518          (i) the most recent edition of the Employee Benefits Survey Data conducted by the U.S.
             1519      Chamber of Commerce Research Center; or
             1520          (ii) the most recent edition of a nationally recognized benefits survey.
             1521          (6) (a) The executive director shall submit proposals for a state employee
             1522      compensation plan to the governor by October 31 of each year, setting forth findings and
             1523      recommendations affecting employee compensation.
             1524          (b) The governor shall consider the executive director's proposals in preparing budget
             1525      recommendations for the Legislature.
             1526          (c) The governor's budget proposals to the Legislature shall include a specific
             1527      recommendation on employee compensation.
             1528          Section 33. Section 67-19-12.2 (Effective 07/01/06) is amended to read:
             1529           67-19-12.2 (Effective 07/01/06). Education benefit plan for law enforcement and
             1530      correctional officers.
             1531          (1) As used in this section, "law enforcement officer" has the same meaning as in
             1532      Section 53-13-103 and "correctional officer" has the same meaning as in Section 53-13-104 .
             1533          (2) The executive director shall establish a plan authorizing any agency to implement
             1534      an educational compensation program for law enforcement officers and correctional officers
             1535      employed by that agency.
             1536          (3) The program shall provide that in order for a law enforcement officer or
             1537      correctional officer to qualify for education benefits for college or university education, the law
             1538      enforcement officer or correctional officer shall:
             1539          (a) provide a certified transcript of grades, demonstrating a grade point average of 3.0
             1540      or greater, from an accredited college or university; and
             1541          (b) have successfully completed the probationary employment period with the
             1542      employing agency.
             1543          (4) The program shall also provide that the agency may consider a law enforcement
             1544      officer or correctional officer to receive additional compensation as follows for higher
             1545      education degrees earned on or after April 30, 2001, in a subject area directly related to the law
             1546      enforcement officer's or correctional officer's employment with the agency:


             1547          (a) two steps for an associate's degree;
             1548          (b) two steps for a bachelor's degree; and
             1549          (c) two steps for a master's degree.
             1550          (5) Expenses incurred by an agency to provide additional compensation under this
             1551      section may be only from the agency's existing budget.
             1552          Section 34. Section 67-19-12.5 (Effective 07/01/06) is amended to read:
             1553           67-19-12.5 (Effective 07/01/06). Creation of Flexible Benefit Program --
             1554      Rulemaking power granted to establish program.
             1555          (1) The [division] department shall establish for calendar year 1990 and thereafter a
             1556      Flexible Benefit Program under Section 125 of the Internal Revenue Code of 1986.
             1557          (2) The [division] department shall establish accounts for all employees eligible for
             1558      benefits which meet the nondiscrimination requirements of the Internal Revenue Code of 1986.
             1559          (3) (a) Each account established under this section shall include employee paid
             1560      premiums for health and dental services.
             1561          (b) The account may also include, at the option of the employee, out-of-pocket
             1562      employee medical and dependent care expenses.
             1563          (c) Accounts may also include other expenses allowed under the Internal Revenue
             1564      Code of 1986.
             1565          (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1566      [division] department may make rules to implement the program established under this section.
             1567          Section 35. Section 67-19-12.7 (Effective 07/01/06) is amended to read:
             1568           67-19-12.7 (Effective 07/01/06). Accumulated annual leave -- Conversion to
             1569      deferred compensation plan.
             1570          (1) The [division] department shall implement a program whereby an employee may,
             1571      upon termination of employment or retirement, elect to convert any unused annual leave into
             1572      any of the employee's designated deferred compensation accounts that:
             1573          (a) are sponsored by the Utah State Retirement Board; and
             1574          (b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
             1575          (2) Any annual leave converted under Subsection (1) shall be converted into the
             1576      employee's deferred compensation account at the employee's pay rate at the time of termination
             1577      or retirement.


             1578          (3) No employee may convert hours of accrued annual leave to the extent that any
             1579      hours so converted would exceed the maximum amount authorized by the Internal Revenue
             1580      Code for each calendar year.
             1581          Section 36. Section 67-19-12.9 (Effective 07/01/06) is amended to read:
             1582           67-19-12.9 (Effective 07/01/06). Accumulated annual leave -- Annual conversion
             1583      to deferred compensation plan.
             1584          (1) If the Legislature in an annual appropriations act with accompanying intent
             1585      language specifically authorizes and fully funds the estimated costs of this use, the [division]
             1586      department shall implement a program that allows an employee, in the approved calendar year,
             1587      to elect to convert up to 20 hours of annual leave, in whole hour increments not to exceed $250
             1588      in value, into any of the employee's designated deferred compensation accounts that:
             1589          (a) are sponsored by the Utah State Retirement Board; and
             1590          (b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
             1591          (2) Any annual leave converted under Subsection (1) shall be:
             1592          (a) converted into the employee's deferred compensation account at the employee's pay
             1593      rate at the time of conversion; and
             1594          (b) calculated in the last pay period of the leave year as determined by the Division of
             1595      Finance.
             1596          (3) An employee may not convert hours of accrued annual leave to the extent that any
             1597      hours converted would:
             1598          (a) exceed the maximum amount authorized by the Internal Revenue Code for the
             1599      calendar year; or
             1600          (b) cause the employee's balance of accumulated annual leave to drop below the
             1601      maximum accrual limit provided by rule.
             1602          Section 37. Section 67-19-13 (Effective 07/01/06) is amended to read:
             1603           67-19-13 (Effective 07/01/06). Examination of payrolls and certification of
             1604      employee eligibility by the executive director.
             1605          (1) The executive director may examine payrolls at any time to determine conformity
             1606      with this chapter and the regulations.
             1607          (2) No new employee shall be hired in a position covered by this chapter, and no
             1608      employee shall be changed in pay, title or status, nor shall any employee be paid unless


             1609      certified by the executive director as eligible under the provisions of or regulations
             1610      promulgated pursuant to this chapter.
             1611          Section 38. Section 67-19-14 is amended to read:
             1612           67-19-14. Sick leave -- Definitions -- Unused sick days retirement programs --
             1613      Rulemaking.
             1614          (1) As used in Sections 67-19-14 through 67-19-14.4 :
             1615          (a) "Continuing medical and life insurance benefits" means the state provided policy of
             1616      medical insurance and the state provided portion of a policy of life insurance, each offered at
             1617      the same:
             1618          (i) benefit level and the same proportion of state/member participation in the total
             1619      premium costs as an active member as defined in Section 49-11-102 ; and
             1620          (ii) coverage level for a member, two person, or family policy as provided to the
             1621      member at the time of retirement.
             1622          (b) "Converted sick leave" means leave that has been converted from unused sick leave
             1623      in accordance with Section 67-19-14.1 which may be used by an employee in the same manner
             1624      as:
             1625          (i) annual leave;
             1626          (ii) sick leave; or
             1627          (iii) unused accumulated sick leave after the employee's retirement for the purchase of
             1628      continuing medical and life insurance benefits under Sections 67-19-14.2 , 67-19-14.3 , and
             1629      67-19-14.4 .
             1630          (2) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1631      executive director shall make rules for the procedures to implement the provisions of Sections
             1632      67-19-14 through 67-19-14.4 .
             1633          (3) For purposes of Sections 67-19-14 through 67-19-14.4 the most recently earned
             1634      converted sick leave or sick leave hours shall be used first when an employee uses converted
             1635      sick leave or sick leave hours.
             1636          (4) The Division of Finance shall develop and maintain a system of accounting for
             1637      employee sick leave and converted sick leave as necessary to implement the provisions of
             1638      Sections 67-19-14 through 67-19-14.4 .
             1639          Section 39. Section 67-19-15 (Effective 07/01/06) is amended to read:


             1640           67-19-15 (Effective 07/01/06). Career service -- Exempt positions -- Schedules for
             1641      civil service positions -- Coverage of career service provisions.
             1642          (1) Except as otherwise provided by law or by rules and regulations established for
             1643      federally aided programs, the following positions are exempt from the career service provisions
             1644      of this chapter:
             1645          (a) the governor, members of the Legislature, and all other elected state officers,
             1646      designated as Schedule AA;
             1647          (b) the agency heads enumerated in Section 67-22-2 , and commissioners designated as
             1648      Schedule AB;
             1649          (c) all employees and officers in the office and at the residence of the governor,
             1650      designated as Schedule AC;
             1651          (d) employees who are in a confidential relationship to an agency head or
             1652      commissioner and who report directly to, and are supervised by, a department head,
             1653      commissioner, or deputy director of an agency or its equivalent, designated as Schedule AD;
             1654          (e) unskilled employees in positions requiring little or no specialized skill or training,
             1655      designated as Schedule AE;
             1656          (f) part-time professional noncareer persons who are paid for any form of medical and
             1657      other professional service and who are not engaged in the performance of administrative duties,
             1658      designated as Schedule AF;
             1659          (g) attorneys in the attorney general's office who are under their own career service pay
             1660      plan, designated as Schedule AG;
             1661          (h) teaching staff of all state institutions and patients and inmates employed in state
             1662      institutions, designated as Schedule AH;
             1663          (i) persons appointed to a position vacated by an employee who has a right to return
             1664      under federal or state law or policy, designated as Schedule AI;
             1665          (j) noncareer employees compensated for their services on a seasonal or contractual
             1666      basis who are hired for limited periods of less than nine consecutive months or who are
             1667      employed on less than 1/2 time basis, designated as Schedule AJ;
             1668          (k) those employees in a personal and confidential relationship to elected officials,
             1669      designated as Schedule AK;
             1670          (l) employees appointed to perform work of a limited duration not exceeding two years


             1671      or to perform work with time-limited funding, designated as Schedule AL;
             1672          (m) employees of the Department of Community and Culture whose positions are
             1673      designated as executive/professional positions by the executive director of the Department of
             1674      Community and Culture with the concurrence of the executive director, and employees of the
             1675      Governor's Office of Economic Development whose positions are designated as
             1676      executive/professional positions by the director of the office, designated as Schedule AM;
             1677          (n) employees of the Legislature, designated as Schedule AN;
             1678          (o) employees of the judiciary, designated as Schedule AO;
             1679          (p) all judges in the judiciary, designated as Schedule AP;
             1680          (q) members of state and local boards and councils appointed by the governor and
             1681      governing bodies of agencies, other local officials serving in an ex officio capacity, officers,
             1682      faculty, and other employees of state universities and other state institutions of higher
             1683      education, designated as Schedule AQ;
             1684          (r) employees who make statewide policy, designated as Schedule AR;
             1685          (s) any other employee whose appointment is required by statute to be career service
             1686      exempt, designated as Schedule AS; and
             1687          (t) employees of the Department of Technology Services, designated as
             1688      executive/professional positions by the executive director of the Department of Technology
             1689      Services with the concurrence of the executive director, designated as Schedule AT.
             1690          (2) The civil service shall consist of two schedules as follows:
             1691          (a) (i) Schedule A is the schedule consisting of positions exempted by Subsection (1).
             1692          (ii) Removal from any appointive position under Schedule A, unless otherwise
             1693      regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
             1694          (b) Schedule B is the competitive career service schedule, consisting of all positions
             1695      filled through competitive selection procedures as defined by the executive director.
             1696          (3) (a) The executive director, after consultation with the heads of concerned executive
             1697      branch departments and agencies and with the approval of the governor, shall allocate positions
             1698      to the appropriate schedules under this section.
             1699          (b) Agency heads shall make requests and obtain approval from the executive director
             1700      before changing the schedule assignment and tenure rights of any position.
             1701          (c) Unless the executive director's decision is reversed by the governor, when the


             1702      executive director denies an agency's request, the executive director's decision is final.
             1703          (4) (a) Compensation for employees of the Legislature shall be established by the
             1704      directors of the legislative offices in accordance with Section 36-12-7 .
             1705          (b) Compensation for employees of the judiciary shall be established by the state court
             1706      administrator in accordance with Section 78-3-24 .
             1707          (c) Compensation for officers, faculty, and other employees of state universities and
             1708      institutions of higher education shall be established as provided in Title 53B, Chapters 1,
             1709      Governance, Powers, Rights, and Responsibilities, and 2, Institutions of Higher Education.
             1710          (d) Unless otherwise provided by law, compensation for all other Schedule A
             1711      employees shall be established by their appointing authorities, within ranges approved by, and
             1712      after consultation with the executive director of the [Division] Department of Human Resource
             1713      Management.
             1714          (5) All employees of the Office of State Auditor, the Office of State Treasurer, the
             1715      Office of the Attorney General, excluding attorneys who are under their own career service
             1716      system, and employees who are not exempt under this section are covered by the career service
             1717      provisions of this chapter.
             1718          Section 40. Section 67-19-15.1 (Effective 07/01/06) is amended to read:
             1719           67-19-15.1 (Effective 07/01/06). Implementation of exempt status for Schedule AD
             1720      and AR employees.
             1721          (1) As used in this section, "appointee" means:
             1722          (a) a deputy director;
             1723          (b) a division director;
             1724          (c) any assistant directors and administrative assistants who report directly to a
             1725      department head, deputy director, or their equivalent; and
             1726          (d) any other person whose appointment is required by law to be approved by the
             1727      governor.
             1728          (2) After the effective date of this chapter, any new appointee is a merit exempt
             1729      employee.
             1730          (3) Notwithstanding the requirements of this chapter, any appointee who is currently a
             1731      nonexempt employee does not lose that nonexempt status because of this chapter.
             1732          (4) The [Division] Department of Human Resource Management shall develop


             1733      financial and other incentives to encourage appointees who are nonexempt to voluntarily
             1734      convert to merit exempt status.
             1735          Section 41. Section 67-19-15.6 is amended to read:
             1736           67-19-15.6. Longevity salary increases.
             1737          (1) Except for those employees subject to the Executive and Judicial Compensation
             1738      Commission or Citizen's Salary Commission, any employee shall receive an increase in salary
             1739      of 2.75% if that employee:
             1740          (a) holds a position under Schedule A or B as defined in Section 67-19-15 ;
             1741          (b) has reached the final step in salary range in the position classification;
             1742          (c) has been employed with the state for eight years; and
             1743          (d) is rated eligible in job performance under guidelines established by the executive
             1744      director.
             1745          (2) Any employee who meets the criteria defined in Subsection (1) is entitled to the
             1746      same increase in salary for each additional three years of employment so long as the employee
             1747      maintains the eligibility standards established by the department.
             1748          Section 42. Section 67-19-16 is amended to read:
             1749           67-19-16. Appointments to Schedule B positions -- Examinations -- Hiring lists --
             1750      Probationary service -- Dismissal.
             1751          (1) Each appointment to a position under Schedule B shall be made from hiring lists of
             1752      applicants who have been selected by competitive procedures as defined by the executive
             1753      director.
             1754          (2) The executive director shall publicly announce information regarding career service
             1755      positions:
             1756          (a) for periods of time to be determined by the executive director; and
             1757          (b) in a manner designed to attract the highest number of qualified applicants.
             1758          (3) The executive director shall make rules establishing standards for the development,
             1759      approval, and implementation of examining instruments.
             1760          (4) Applicants for employment to Schedule B positions shall be eligible for
             1761      appointment based upon rules established by the executive director.
             1762          (5) (a) The agency head shall make appointments to fill vacancies from hiring lists for
             1763      probationary periods as defined by rule.


             1764          (b) The executive director shall make rules establishing probationary periods.
             1765          (6) A person serving a probationary period may not use the grievance procedures
             1766      provided in this chapter and in Title 67, Chapter 19a, Grievance and Appeal Procedures, and
             1767      may be dismissed at any time by the appointing officer without hearing or appeal.
             1768          (7) Career service status shall be granted upon the successful completion of the
             1769      probationary period.
             1770          Section 43. Section 67-19-17 is amended to read:
             1771           67-19-17. Reappointment of employees not retained in exempt position.
             1772          (1) Any career service employee accepting an appointment to an exempt position who
             1773      is not retained by the appointing officer, unless discharged for cause as provided by this [act]
             1774      chapter or by regulation, shall:
             1775          [(1)] (a) be appointed to any career service position for which the employee qualifies in
             1776      a pay grade comparable to the employee's last position in the career service provided an
             1777      opening exists; or
             1778          [(2)] (b) be appointed to any lesser career service position for which the employee
             1779      qualifies pending the opening of a position described in Subsection (1) [of this section].
             1780          (2) The executive director shall maintain a reappointment register for this purpose and
             1781      it shall have precedence over other registers.
             1782          Section 44. Section 67-19-18 is amended to read:
             1783           67-19-18. Dismissals and demotions -- Grounds -- Disciplinary action --
             1784      Procedure -- Reductions in force.
             1785          (1) Career service employees may be dismissed or demoted:
             1786          (a) to advance the good of the public service; or
             1787          (b) for just causes such as inefficiency, incompetency, failure to maintain skills or
             1788      adequate performance levels, insubordination, disloyalty to the orders of a superior,
             1789      misfeasance, malfeasance, or nonfeasance in office.
             1790          (2) Employees may not be dismissed because of race, sex, age, disability, national
             1791      origin, religion, political affiliation, or other nonmerit factor including the exercise of rights
             1792      under this chapter.
             1793          (3) The executive director shall establish rules governing the procedural and
             1794      documentary requirements of disciplinary dismissals and demotions.


             1795          (4) If an agency head finds that a career service employee is charged with aggravated
             1796      misconduct or that retention of a career service employee would endanger the peace and safety
             1797      of others or pose a grave threat to the public interest, the employee may be suspended pending
             1798      the administrative appeal to the department head as provided in Subsection (5).
             1799          (5) (a) A career service employee may not be demoted or dismissed unless the
             1800      department head or designated representative has complied with this subsection.
             1801          (b) The department head or designated representative notifies the employee in writing
             1802      of the reasons for the dismissal or demotion.
             1803          (c) The employee has no less than five working days to reply and have the reply
             1804      considered by the department head.
             1805          (d) The employee has an opportunity to be heard by the department head or designated
             1806      representative.
             1807          (e) Following the hearing, the employee may be dismissed or demoted if the
             1808      department head finds adequate cause or reason.
             1809          (6) (a) Reductions in force required by inadequate funds, change of workload, or lack
             1810      of work are governed by retention rosters established by the executive director.
             1811          (b) Under those circumstances:
             1812          (i) The agency head shall designate the category of work to be eliminated, subject to
             1813      review by the executive director.
             1814          (ii) Temporary and probationary employees shall be separated before any career service
             1815      employee.
             1816          (iii) (A) Career service employees shall be separated in the order of their retention
             1817      points, the employee with the lowest points to be discharged first.
             1818          (B) Retention points for each career service employee shall be computed according to
             1819      rules established by the executive director, allowing appropriate consideration for proficiency
             1820      and for seniority in state government, including any active duty military service fulfilled
             1821      subsequent to original state appointment.
             1822          (iv) A career service employee who is separated in a reduction in force shall be:
             1823          (A) placed on the reappointment roster provided for in Subsection 67-19-17 (2); and
             1824          (B) reappointed without examination to any vacancy for which the employee is
             1825      qualified which occurs within one year of the date of the separation.


             1826          (c) (i) An employee separated due to a reduction in force may appeal to the department
             1827      head for an administrative review.
             1828          (ii) The notice of appeal must be submitted within 20 working days after the
             1829      employee's receipt of written notification of separation.
             1830          (iii) The employee may appeal the decision of the department head according to the
             1831      grievance and appeals procedure of this act.
             1832          Section 45. Section 67-19-19 (Effective 07/01/06) is amended to read:
             1833           67-19-19 (Effective 07/01/06). Political activity of employees -- Rules and
             1834      regulations -- Highway patrol -- Hatch Act.
             1835          Except as otherwise provided by law or by rules promulgated under this section for
             1836      federally aided programs, the following provisions apply with regard to political activity of
             1837      career service employees in all grades and positions.
             1838          (1) Career service employees may voluntarily participate in political activity subject to
             1839      the following provisions:
             1840          (a) if any career service employee is elected to any partisan or full-time nonpartisan
             1841      political office, that employee shall be granted a leave of absence without pay for times when
             1842      monetary compensation is received for service in political office;
             1843          (b) no officer or employee in career service may engage in any political activity during
             1844      the hours of employment, nor may any person solicit political contributions from employees of
             1845      the executive branch during hours of employment for political purposes; and
             1846          (c) partisan political activity may not be a basis for employment, promotion, demotion,
             1847      or dismissal, except that the executive director shall adopt rules providing for the discipline or
             1848      punishment of a state officer or employee who violates any provision of this section.
             1849          (2) (a) Notwithstanding any other provision of this section, no member of the Utah
             1850      Highway Patrol may use his official authority or influence for the purpose of interfering with
             1851      an election or affecting the results of an election.
             1852          (b) No person may induce or attempt to induce any member of the Utah Highway
             1853      Patrol to participate in any activity prohibited by this Subsection (2).
             1854          (3) Nothing contained in this section may be construed to:
             1855          (a) preclude voluntary contributions by an employee to the party or candidate of the
             1856      officer's or employee's choice; or


             1857          (b) permit partisan political activity by any employee who is prevented or restricted
             1858      from engaging in the political activity by the provisions of the federal Hatch Act.
             1859          Section 46. Section 67-19-31 (Effective 07/01/06) is amended to read:
             1860           67-19-31 (Effective 07/01/06). Position classification grievances -- Scope --
             1861      Procedure.
             1862          (1) (a) For the purpose of position classification grievances, the process that culminates
             1863      in assigning a career service position to an appropriate class specification is a matter of position
             1864      classification and may be grieved.
             1865          (b) The process that culminates in assigning a salary range to the class specification is
             1866      not a position classification and may not be grieved as a classification grievance.
             1867          (2) (a) Upon receipt of a position classification grievance, the executive director shall
             1868      refer the grievance to a classification panel of three or more impartial persons trained in state
             1869      classification procedures.
             1870          (b) The classification panel shall determine whether or not the classification
             1871      assignment for career service positions was appropriate by applying the statutes, rules, and
             1872      procedures adopted by the department that were in effect at the time of the classification
             1873      change.
             1874          (c) The classification panel may:
             1875          (i) obtain access to previous audits, classification decisions, and reports;
             1876          (ii) request new or additional audits by human resource analysts; and
             1877          (iii) consider new or additional information.
             1878          (d) The classification panel may sustain or modify the original decision and, if
             1879      applicable, recommend a new classification.
             1880          (e) The classification panel shall report its recommendation to the executive director,
             1881      who shall make the classification decision and notify the grievant.
             1882          (3) (a) Either party may appeal the executive director's decision to an impartial hearing
             1883      officer trained in state classification procedures selected through a public bid process by a
             1884      panel consisting of the following members:
             1885          (i) the executive director of the [Division] Department of Human Resource
             1886      Management;
             1887          (ii) two department executive directors;


             1888          (iii) a private sector human resources executive appointed by the governor; and
             1889          (iv) a representative of the Utah Public Employees Association.
             1890          (b) The successful bid shall serve under contract for no more than three years. At the
             1891      end of that time, the [Division] Department of Human Resource Management shall reissue the
             1892      bid.
             1893          (c) The hearing officer shall review the classification and make the final decision. The
             1894      final decision is subject to judicial review pursuant to the provisions of Section 63-46b-15 .
             1895          Section 47. Section 67-19-33 (Effective 07/01/06) is amended to read:
             1896           67-19-33 (Effective 07/01/06). Controlled substances and alcohol use prohibited.
             1897          An employee may not:
             1898          (1) manufacture, dispense, possess, use, distribute, or be under the influence of a
             1899      controlled substance or alcohol during work hours or on state property except where legally
             1900      permissible;
             1901          (2) manufacture, dispense, possess, use, or distribute a controlled substance or alcohol
             1902      if the activity prevents:
             1903          (a) state agencies from receiving federal grants or performing under federal contracts of
             1904      $25,000 or more; or
             1905          (b) the employee to perform his services or work for state government effectively as
             1906      regulated by the rules of the executive director in accordance with Section 67-19-34 ; or
             1907          (3) refuse to submit to a drug or alcohol test under Section 67-19-36 .
             1908          Section 48. Section 67-19-34 (Effective 07/01/06) is amended to read:
             1909           67-19-34 (Effective 07/01/06). Rulemaking power to executive director.
             1910          In accordance with this chapter and Title 63, Chapter 46a, Utah Administrative
             1911      Rulemaking Act, the executive director shall make rules regulating:
             1912          (1) disciplinary actions for employees subject to discipline under Section 67-19-37 ;
             1913          (2) the testing of employees for the use of controlled substances or alcohol as provided
             1914      in Section 67-19-36 ;
             1915          (3) the confidentiality of drug testing and test results performed under Section
             1916      67-19-36 in accordance with Title 63, Chapter 2, Government Records Access and
             1917      Management Act; and
             1918          (4) minimum blood levels of alcohol or drug content for work effectiveness of an


             1919      employee.
             1920          Section 49. Section 67-19-36 (Effective 07/01/06) is amended to read:
             1921           67-19-36 (Effective 07/01/06). Drug testing of state employees.
             1922          (1) Except as provided in Subsection (2), when there is reasonable suspicion that an
             1923      employee is using a controlled substance or alcohol unlawfully during work hours, an
             1924      employee may be required to submit to medically accepted testing procedures for a
             1925      determination of whether the employee is using a controlled substance or alcohol in violation
             1926      of this part.
             1927          (2) In highly sensitive positions, as identified in [division] department class
             1928      specifications, random drug testing of employees may be conducted by an agency in
             1929      accordance with the rules of the executive director.
             1930          (3) All drug or alcohol testing shall be:
             1931          (a) conducted by a federally certified and licensed physician, a federally certified and
             1932      licensed medical clinic, or testing facility federally certified and licensed to conduct medically
             1933      accepted drug testing;
             1934          (b) conducted in accordance with the rules of the executive director made under
             1935      Section 67-19-34 ; and
             1936          (c) kept confidential in accordance with the rules of the executive director made in
             1937      accordance with Section 67-19-34 .
             1938          (4) A physician, medical clinic, or testing facility may not be held liable in any civil
             1939      action brought by a party for:
             1940          (a) performing or failing to perform a test under this section;
             1941          (b) issuing or failing to issue a test result under this section; or
             1942          (c) acting or omitting to act in any other way in good faith under this section.
             1943          Section 50. Section 67-19-37 (Effective 07/01/06) is amended to read:
             1944           67-19-37 (Effective 07/01/06). Discipline of employees.
             1945          An employee shall be subject to the rules of discipline of the executive director made in
             1946      accordance with Section 67-19-34 , if the employee:
             1947          (1) refuses to submit to testing procedures provided in Section 67-19-36 ;
             1948          (2) refuses to complete a drug rehabilitation program in accordance with Subsection
             1949      67-19-38 (3);


             1950          (3) is convicted under a federal or state criminal statute regulating the manufacture,
             1951      distribution, dispensation, possession, or use of a controlled substance; or
             1952          (4) manufactures, dispenses, possesses, uses, or distributes a controlled substance in
             1953      violation of state or federal law during work hours or on state property.
             1954          Section 51. Section 67-19-38 (Effective 07/01/06) is amended to read:
             1955           67-19-38 (Effective 07/01/06). Violations and penalties.
             1956          In addition to other criminal penalties provided by law, an employee who:
             1957          (1) fails to notify the employee's director under Section 67-19-35 is subject to
             1958      disciplinary proceedings as established by the executive director by rule in accordance with
             1959      Section 67-19-34 ;
             1960          (2) refuses to submit to testing procedures provided for in Section 67-19-36 , may be
             1961      suspended immediately without pay pending further disciplinary action as set forth in the rules
             1962      of the executive director in accordance with Section 67-19-34 ; or
             1963          (3) tests positive for the presence of unlawfully used controlled substances or alcohol
             1964      may be required, as part of the employee's disciplinary treatment, to complete a drug
             1965      rehabilitation program at the employee's expense within 60 days after receiving the positive test
             1966      results or be subject to further disciplinary procedures established by rule of the executive
             1967      director in accordance with Section 67-19-34 .
             1968          Section 52. Section 67-19a-303 (Effective 07/01/06) is amended to read:
             1969           67-19a-303 (Effective 07/01/06). Employees' rights in grievance and appeals
             1970      procedure.
             1971          (1) For the purpose of processing a grievance, a career service employee may:
             1972          (a) obtain assistance by a representative of the employee's choice to act as an advocate
             1973      at any level of the grievance procedure;
             1974          (b) request a reasonable amount of time during work hours to confer with the
             1975      representative and prepare the grievance; and
             1976          (c) call other employees as witnesses at a grievance hearing.
             1977          (2) The state shall allow employees to attend and testify at the grievance hearing as
             1978      witnesses if the employee has given reasonable advance notice to the employee's immediate
             1979      supervisor.
             1980          (3) No person may take any reprisals against any career service employee for use of


             1981      grievance procedures specified in this chapter.
             1982          (4) (a) The employing agency of an employee who files a grievance may not place
             1983      grievance forms, grievance materials, correspondence about the grievance, agency and
             1984      department replies to the grievance, or other documents relating to the grievance in the
             1985      employee's personnel file.
             1986          (b) The employing agency of an employee who files a grievance may place records of
             1987      disciplinary action in the employee's personnel file.
             1988          (c) If any disciplinary action against an employee is rescinded through the grievance
             1989      procedures established in this chapter, the agency and the [Division] Department of Human
             1990      Resource Management shall remove the record of the disciplinary action from the employee's
             1991      agency personnel file and central personnel file.
             1992          (d) An agency may maintain a separate grievance file relating to an employee's
             1993      grievance, but shall discard the file after three years.
             1994          Section 53. Section 67-19c-101 (Effective 07/01/06) is amended to read:
             1995           67-19c-101 (Effective 07/01/06). Department award program.
             1996          (1) As used in this section:
             1997          (a) "Department" means the Department of Administrative Services, the Department of
             1998      Agriculture and Food, the Department of Alcoholic Beverage Control, the Department of
             1999      Commerce, the Department of Community and Culture, the Department of Corrections, the
             2000      Department of Workforce Services, the Department of Environmental Quality, the Department
             2001      of Financial Institutions, the Department of Health, the Department of Human Resource
             2002      Management, the Department of Human Services, the Insurance Department, the National
             2003      Guard, the Department of Natural Resources, the Department of Public Safety, the Public
             2004      Service Commission, the Labor Commission, the State Board of Education, the State Board of
             2005      Regents, the State Tax Commission, and the Department of Transportation.
             2006          (b) "Department head" means the individual or body of individuals in whom the
             2007      ultimate legal authority of the department is vested by law.
             2008          (2) There is created a department awards program to award an outstanding employee in
             2009      each department of state government.
             2010          (3) (a) By April 1 of each year, each department head shall solicit nominations for
             2011      outstanding employee of the year for his department from the employees in his department.


             2012          (b) By July 1 of each year, the department head shall:
             2013          (i) select a person from the department to receive the outstanding employee of the year
             2014      award using the criteria established in Subsection (3)(c); and
             2015          (ii) announce the recipient of the award to his employees.
             2016          (c) Department heads shall make the award to a person who demonstrates:
             2017          (i) extraordinary competence in performing his function;
             2018          (ii) creativity in identifying problems and devising workable, cost-effective solutions to
             2019      them;
             2020          (iii) excellent relationships with the public and other employees;
             2021          (iv) a commitment to serving the public as the client; and
             2022          (v) a commitment to economy and efficiency in government.
             2023          (4) (a) The [Division] Department of Human Resource Management shall divide any
             2024      appropriation for outstanding department employee awards that it receives from the Legislature
             2025      equally among the departments.
             2026          (b) If the department receives monies from the [Division] Department of Human
             2027      Resource Management or if the department budget allows, the department head shall provide
             2028      the employee with a bonus, a plaque, or some other suitable acknowledgement of the award.
             2029          (5) (a) The department head may name the award after an exemplary present or former
             2030      employee of the department.
             2031          (b) A department head may not name the award for himself or for any relative as
             2032      defined in Section 52-3-1 .
             2033          (c) Any awards or award programs existing in any department as of May 3, 1993, shall
             2034      be modified to conform to the requirements of this section.
             2035          Section 54. Section 67-20-8 (Effective 07/01/06) is amended to read:
             2036           67-20-8 (Effective 07/01/06). Volunteer experience credit.
             2037          (1) State agencies shall designate positions for which approved volunteer experience
             2038      satisfies the job requirements for purposes of employment.
             2039          (2) When evaluating applicants for those designated positions, state agencies shall
             2040      consider documented approved volunteer experience in the same manner as similar paid
             2041      employment.
             2042          (3) The [Division] Department of Human Resource Management shall make statewide


             2043      rules governing the:
             2044          (a) designation of volunteer positions; and
             2045          (b) a uniform process to document the approval, use, and hours worked by volunteers.
             2046          Section 55. Section 67-22-2 (Effective 07/01/06) is amended to read:
             2047           67-22-2 (Effective 07/01/06). Compensation -- Other state officers.
             2048          (1) The governor shall establish salaries for the following state officers within the
             2049      following salary ranges fixed by the Legislature:
             2050              State Officer                 Salary Range
             2051          Commissioner of Agriculture and Food     $66,800 - $90,600
             2052          Commissioner of Insurance             $66,800 - $90,600
             2053          Commissioner of the Labor Commission     $66,800 - $90,600
             2054          Director, Alcoholic Beverage Control
             2055              Commission                 $66,800 - $90,600
             2056          Commissioner, Department of
             2057              Financial Institutions             $66,800 - $90,600
             2058          Members, Board of Pardons and Parole     $66,800 - $90,600
             2059          Executive Director, Department
             2060              of Commerce                 $66,800 - $90,600
             2061          Executive Director, Commission on
             2062              Criminal and Juvenile Justice     $66,800 - $90,600
             2063          Adjutant General                 $66,800 - $90,600
             2064          Chair, Tax Commission             $72,400 - $97,600
             2065          Commissioners, Tax Commission         $72,400 - $97,600
             2066          Executive Director, Department of
             2067              Community and Culture         $72,400 - $97,600
             2068          Executive Director, Tax Commission     $72,400 - $97,600
             2069          Chair, Public Service Commission         $72,400 - $97,600
             2070          Commissioners, Public Service
             2071              Commission                 $72,400 - $97,600
             2072          Executive Director, Department
             2073              of Corrections                 $78,700 - $106,200


             2074          Commissioner, Department of Public Safety     $78,700 - $106,200
             2075          Executive Director, Department of
             2076              Natural Resources             $78,700 - $106,200
             2077          Director, Governor's Office of Planning
             2078              and Budget                 $78,700 - $106,200
             2079          Executive Director, Department of
             2080              Administrative Services         $78,700 - $106,200
             2081          Executive Director, Department of
             2082              Human Resource Management    $78,000 - $106,200
             2083          Executive Director, Department of
             2084              Environmental Quality         $78,700 - $106,200
             2085          Director, Governor's Office
             2086              of Economic Development         $78,700 - $106,200
             2087          Executive Director, Department of
             2088              Workforce Services             $85,700 - $115,700
             2089          Executive Director, Department of
             2090              Health                     $85,700 - $115,700
             2091          Executive Director, Department
             2092              of Human Services             $85,700 - $115,700
             2093          Executive Director, Department
             2094              of Transportation             $85,700 - $115,700
             2095          Executive Director, Department
             2096              of Information Technology
             2097              Services                 $85,700 - $115,700
             2098          (2) (a) The Legislature fixes benefits for the state [offices] officers outlined in
             2099      Subsection (1) as follows:
             2100          (i) the option of participating in a state retirement system established by Title 49, Utah
             2101      State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered
             2102      by the State Retirement Office in accordance with the Internal Revenue Code and its
             2103      accompanying rules and regulations;
             2104          (ii) health insurance;


             2105          (iii) dental insurance;
             2106          (iv) basic life insurance;
             2107          (v) unemployment compensation;
             2108          (vi) workers' compensation;
             2109          (vii) required employer contribution to Social Security;
             2110          (viii) long-term disability income insurance;
             2111          (ix) the same additional state-paid life insurance available to other noncareer service
             2112      employees;
             2113          (x) the same severance pay available to other noncareer service employees;
             2114          (xi) the same leave, holidays, and allowances granted to Schedule B state employees as
             2115      follows:
             2116          (A) sick leave[,];
             2117          (B) converted sick leave[,] if accrued prior to January 1, 2014;
             2118          (C) educational allowances[, and];
             2119          (D) holidays [granted to Schedule B state employees, and the same]; and
             2120          (E) annual leave [granted to Schedule B state employees with more than ten years of
             2121      state service] except that annual leave shall be accrued at the maximum rate provided to
             2122      Schedule B state employees;
             2123          (xii) the option to convert accumulated sick leave to cash or insurance benefits as
             2124      provided by law or rule upon resignation or retirement according to the same criteria and
             2125      procedures applied to Schedule B state employees;
             2126          (xiii) the option to purchase additional life insurance at group insurance rates according
             2127      to the same criteria and procedures applied to Schedule B state employees; and
             2128          (xiv) professional memberships if being a member of the professional organization is a
             2129      requirement of the position.
             2130          (b) Each department shall pay the cost of additional state-paid life insurance for its
             2131      executive director from its existing budget.
             2132          (3) The Legislature fixes the following additional benefits:
             2133          (a) for the executive director of the State Tax Commission a vehicle for official and
             2134      personal use;
             2135          (b) for the executive director of the Department of Transportation a vehicle for official


             2136      and personal use;
             2137          (c) for the executive director of the Department of Natural Resources a vehicle for
             2138      commute and official use;
             2139          (d) for the Commissioner of Public Safety:
             2140          (i) an accidental death insurance policy if POST certified; and
             2141          (ii) a public safety vehicle for official and personal use;
             2142          (e) for the executive director of the Department of Corrections:
             2143          (i) an accidental death insurance policy if POST certified; and
             2144          (ii) a public safety vehicle for official and personal use;
             2145          (f) for the Adjutant General a vehicle for official and personal use; and
             2146          (g) for each member of the Board of Pardons and Parole a vehicle for commute and
             2147      official use.
             2148          (4) (a) The governor has the discretion to establish a specific salary for each office
             2149      listed in Subsection (1), and, within that discretion, may provide salary increases within the
             2150      range fixed by the Legislature.
             2151          (b) The governor shall apply the same overtime regulations applicable to other FLSA
             2152      exempt positions.
             2153          (c) The governor may develop standards and criteria for reviewing the performance of
             2154      the state officers listed in Subsection (1).
             2155          (5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which are
             2156      not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary
             2157      Act, shall be established as provided in Section 67-19-15 .
             2158          Section 56. Section 72-1-203 (Effective 07/01/06) is amended to read:
             2159           72-1-203 (Effective 07/01/06). Deputy director -- Appointment -- Qualifications --
             2160      Other assistants and advisers -- Salaries.
             2161          (1) The executive director shall appoint a deputy director, who shall be a registered
             2162      professional engineer in the state and shall serve at the discretion of the executive director.
             2163          (2) The deputy director is the chief engineer of the department. The deputy director
             2164      shall assist the executive director and is responsible for:
             2165          (a) program and project development; and
             2166          (b) operation and maintenance of the state transportation systems.


             2167          (3) The executive director may also appoint assistants to administer the divisions of the
             2168      department. These assistants shall serve at the discretion of the executive director.
             2169          (4) In addition, the executive director may employ other assistants and advisers as the
             2170      executive director finds necessary and fix salaries in accordance with the salary standards
             2171      adopted by the [Division] Department of Human Resource Management.
             2172          Section 57. Effective date.
             2173          This bill takes effect on July 1, 2006.




Legislative Review Note
    as of 1-10-06 1:46 PM


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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