H.B. 430

1

DEPARTMENT OF FINANCIAL
2 INSTITUTIONS PAY PLAN
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Jeff Alexander
6 Senate Sponsor: John W. Hickman
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions governing compensation for employees of the Department
11 of Financial Institutions.
12 Highlighted Provisions:
13 This bill:
14 . requires that a market comparability study for employees of the Department of
15 Financial Institutions be based on a survey of certain federal entities; and
16 . sets the salary for the commissioner of financial institutions as a percentage of the
17 highest paid employee of the department.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill provides an effective date.
22 Utah Code Sections Affected:
23 AMENDS:
24 67-22-2 (Superseded 07/01/06), as last amended by Chapter 8, Laws of Utah 2005,
25 First Special Session
26 67-22-2 (Effective 07/01/06), as last amended by Chapter 8, Laws of Utah 2005, First
27 Special Session

28 ENACTS:
29 67-19-12.1, Utah Code Annotated 1953
30
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 67-19-12.1 is enacted to read:
33 67-19-12.1. Department of Financial Institutions pay plans.
34 To allow the state to recruit and retain the highest qualified examiners and regulators to
35 oversee the financial services industry in this state and ensure parity with officials and
36 employees of federal regulatory agencies and entities performing substantially similar jobs, the
37 pay plans for all examiners and supervisors specified in Title 7, Chapter 1, Article 2,
38 Department of Financial Institutions, shall comply with Section 67-19-12 , except that the
39 market comparability study of state salary ranges for these positions shall be based on a survey
40 of salary ranges of federal regulatory agencies and organizations responsible for regulating
41 financial institutions chartered and regulated by the commissioner of financial institutions,
42 including the:
43 (1) Federal Deposit Insurance Corporation;
44 (2) Federal Reserve; and
45 (3) National Credit Union Administration.
46 Section 2. Section 67-22-2 (Superseded 07/01/06) is amended to read:
47 67-22-2 (Superseded 07/01/06). Compensation -- Other state officers.
48 (1) (a) The governor shall establish salaries for the following state officers within the
49 following salary ranges fixed by the Legislature:
50 State Officer Salary Range
51 Commissioner of Agriculture and Food $66,800 - $90,600
52 Commissioner of Insurance $66,800 - $90,600
53 Commissioner of the Labor Commission $66,800 - $90,600
54 Director, Alcoholic Beverage Control
55 Commission $66,800 - $90,600
56 [Commissioner, Department of]
57 [Financial Institutions] [$66,800 - $90,600]
58 Members, Board of Pardons and Parole $66,800 - $90,600

59 Executive Director, Department
60 of Commerce $66,800 - $90,600
61 Executive Director, Commission on
62 Criminal and Juvenile Justice $66,800 - $90,600
63 Adjutant General $66,800 - $90,600
64 Chair, Tax Commission $72,400 - $97,600
65 Commissioners, Tax Commission $72,400 - $97,600
66 Executive Director, Department of
67 Community and Culture $72,400 - $97,600
68 Executive Director, Tax Commission $72,400 - $97,600
69 Chair, Public Service Commission $72,400 - $97,600
70 Commissioners, Public Service
71 Commission $72,400 - $97,600
72 Executive Director, Department
73 of Corrections $78,700 - $106,200
74 Commissioner, Department of Public Safety $78,700 - $106,200
75 Executive Director, Department of
76 Natural Resources $78,700 - $106,200
77 Director, Governor's Office of Planning
78 and Budget $78,700 - $106,200
79 Executive Director, Department of
80 Administrative Services $78,700 - $106,200
81 Executive Director, Department of
82 Human Resource Management $78,700 - $106,200
83 Executive Director, Department of
84 Environmental Quality $78,700 - $106,200
85 Director, Governor's Office
86 of Economic Development $78,700 - $106,200
87 Executive Director, Department of
88 Workforce Services $85,700 - $115,700
89 Executive Director, Department of

90 Health $85,700 - $115,700
91 Executive Director, Department
92 of Human Services $85,700 - $115,700
93 Executive Director, Department
94 of Transportation $85,700 - $115,700
95 Executive Director, Department
96 of Information Technology
97 Services $85,700 - $115,700
98 (b) The governor shall establish the salary for the commissioner of the Department of
99 Financial Institutions to be no less than 110% and no more than 120% of the highest salary
100 paid to any other employee of the Department of Financial Institutions.
101 (2) (a) The Legislature fixes benefits for the state offices outlined in Subsection (1) as
102 follows:
103 (i) the option of participating in a state retirement system established by Title 49, Utah
104 State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered
105 by the State Retirement Office in accordance with the Internal Revenue Code and its
106 accompanying rules and regulations;
107 (ii) health insurance;
108 (iii) dental insurance;
109 (iv) basic life insurance;
110 (v) unemployment compensation;
111 (vi) workers' compensation;
112 (vii) required employer contribution to Social Security;
113 (viii) long-term disability income insurance;
114 (ix) the same additional state-paid life insurance available to other noncareer service
115 employees;
116 (x) the same severance pay available to other noncareer service employees;
117 (xi) the same sick leave, converted sick leave, educational allowances, and holidays
118 granted to Schedule B state employees, and the same annual leave granted to Schedule B state
119 employees with more than ten years of state service;
120 (xii) the option to convert accumulated sick leave to cash or insurance benefits as

121 provided by law or rule upon resignation or retirement according to the same criteria and
122 procedures applied to Schedule B state employees;
123 (xiii) the option to purchase additional life insurance at group insurance rates according
124 to the same criteria and procedures applied to Schedule B state employees; and
125 (xiv) professional memberships if being a member of the professional organization is a
126 requirement of the position.
127 (b) Each department shall pay the cost of additional state-paid life insurance for its
128 executive director from its existing budget.
129 (3) The Legislature fixes the following additional benefits:
130 (a) for the executive director of the State Tax Commission a vehicle for official and
131 personal use;
132 (b) for the executive director of the Department of Transportation a vehicle for official
133 and personal use;
134 (c) for the executive director of the Department of Natural Resources a vehicle for
135 commute and official use;
136 (d) for the Commissioner of Public Safety:
137 (i) an accidental death insurance policy if POST certified; and
138 (ii) a public safety vehicle for official and personal use;
139 (e) for the executive director of the Department of Corrections:
140 (i) an accidental death insurance policy if POST certified; and
141 (ii) a public safety vehicle for official and personal use;
142 (f) for the Adjutant General a vehicle for official and personal use; and
143 (g) for each member of the Board of Pardons and Parole a vehicle for commute and
144 official use.
145 (4) (a) The governor has the discretion to establish a specific salary for each office
146 listed in Subsection (1), and, within that discretion, may provide salary increases within the
147 range fixed by the Legislature.
148 (b) The governor shall apply the same overtime regulations applicable to other FLSA
149 exempt positions.
150 (c) The governor may develop standards and criteria for reviewing the performance of
151 the state officers listed in Subsection (1).

152 (5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which are
153 not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary
154 Act, shall be established as provided in Section 67-19-15 .
155 Section 3. Section 67-22-2 (Effective 07/01/06) is amended to read:
156 67-22-2 (Effective 07/01/06). Compensation -- Other state officers.
157 (1) (a) The governor shall establish salaries for the following state officers within the
158 following salary ranges fixed by the Legislature:
159 State Officer Salary Range
160 Commissioner of Agriculture and Food $66,800 - $90,600
161 Commissioner of Insurance $66,800 - $90,600
162 Commissioner of the Labor Commission $66,800 - $90,600
163 Director, Alcoholic Beverage Control
164 Commission $66,800 - $90,600
165 [Commissioner, Department of]
166 [Financial Institutions] [$66,800 - $90,600]
167 Members, Board of Pardons and Parole $66,800 - $90,600
168 Executive Director, Department
169 of Commerce $66,800 - $90,600
170 Executive Director, Commission on
171 Criminal and Juvenile Justice $66,800 - $90,600
172 Adjutant General $66,800 - $90,600
173 Chair, Tax Commission $72,400 - $97,600
174 Commissioners, Tax Commission $72,400 - $97,600
175 Executive Director, Department of
176 Community and Culture $72,400 - $97,600
177 Executive Director, Tax Commission $72,400 - $97,600
178 Chair, Public Service Commission $72,400 - $97,600
179 Commissioners, Public Service
180 Commission $72,400 - $97,600
181 Executive Director, Department
182 of Corrections $78,700 - $106,200

183 Commissioner, Department of Public Safety $78,700 - $106,200
184 Executive Director, Department of
185 Natural Resources $78,700 - $106,200
186 Director, Governor's Office of Planning
187 and Budget $78,700 - $106,200
188 Executive Director, Department of
189 Administrative Services $78,700 - $106,200
190 Executive Director, Department of
191 Environmental Quality $78,700 - $106,200
192 Director, Governor's Office
193 of Economic Development $78,700 - $106,200
194 Executive Director, Department of
195 Workforce Services $85,700 - $115,700
196 Executive Director, Department of
197 Health $85,700 - $115,700
198 Executive Director, Department
199 of Human Services $85,700 - $115,700
200 Executive Director, Department
201 of Transportation $85,700 - $115,700
202 Executive Director, Department
203 of Information Technology
204 Services $85,700 - $115,700
205 (b) The governor shall establish the salary for the commissioner of the Department of
206 Financial Institutions to be no less than 110% and no more than 120% of the highest salary
207 paid to any other employee of the Department of Financial Institutions.
208 (2) (a) The Legislature fixes benefits for the state offices outlined in Subsection (1) as
209 follows:
210 (i) the option of participating in a state retirement system established by Title 49, Utah
211 State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered
212 by the State Retirement Office in accordance with the Internal Revenue Code and its
213 accompanying rules and regulations;

214 (ii) health insurance;
215 (iii) dental insurance;
216 (iv) basic life insurance;
217 (v) unemployment compensation;
218 (vi) workers' compensation;
219 (vii) required employer contribution to Social Security;
220 (viii) long-term disability income insurance;
221 (ix) the same additional state-paid life insurance available to other noncareer service
222 employees;
223 (x) the same severance pay available to other noncareer service employees;
224 (xi) the same sick leave, converted sick leave, educational allowances, and holidays
225 granted to Schedule B state employees, and the same annual leave granted to Schedule B state
226 employees with more than ten years of state service;
227 (xii) the option to convert accumulated sick leave to cash or insurance benefits as
228 provided by law or rule upon resignation or retirement according to the same criteria and
229 procedures applied to Schedule B state employees;
230 (xiii) the option to purchase additional life insurance at group insurance rates according
231 to the same criteria and procedures applied to Schedule B state employees; and
232 (xiv) professional memberships if being a member of the professional organization is a
233 requirement of the position.
234 (b) Each department shall pay the cost of additional state-paid life insurance for its
235 executive director from its existing budget.
236 (3) The Legislature fixes the following additional benefits:
237 (a) for the executive director of the State Tax Commission a vehicle for official and
238 personal use;
239 (b) for the executive director of the Department of Transportation a vehicle for official
240 and personal use;
241 (c) for the executive director of the Department of Natural Resources a vehicle for
242 commute and official use;
243 (d) for the Commissioner of Public Safety:
244 (i) an accidental death insurance policy if POST certified; and

245 (ii) a public safety vehicle for official and personal use;
246 (e) for the executive director of the Department of Corrections:
247 (i) an accidental death insurance policy if POST certified; and
248 (ii) a public safety vehicle for official and personal use;
249 (f) for the Adjutant General a vehicle for official and personal use; and
250 (g) for each member of the Board of Pardons and Parole a vehicle for commute and
251 official use.
252 (4) (a) The governor has the discretion to establish a specific salary for each office
253 listed in Subsection (1), and, within that discretion, may provide salary increases within the
254 range fixed by the Legislature.
255 (b) The governor shall apply the same overtime regulations applicable to other FLSA
256 exempt positions.
257 (c) The governor may develop standards and criteria for reviewing the performance of
258 the state officers listed in Subsection (1).
259 (5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which are
260 not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary
261 Act, shall be established as provided in Section 67-19-15 .
262 Section 4. Effective date.
263 This bill takes effect on May 1, 2006, except that the amendments to Section 67-22-2
264 (Effective 07/01/06) take effect on July 1, 2006.




Legislative Review Note
as of 2-6-06 10:34 AM

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

Office of Legislative Research and General Counsel