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First Substitute S.B. 196

Senator Curtis S. Bramble proposes the following substitute bill:


             1     
EXECUTIVE COMPENSATION AMENDMENTS

             2     
2007 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: David Clark

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the process for setting salary ranges for department and other agency
             10      heads.
             11      Highlighted Provisions:
             12          This bill:
             13          .    creates a single salary range for all "appointed executives";
             14          .    bases that range on the salaries of the deputies to the appointed executives who are
             15      not medical doctors; and
             16          .    makes conforming and technical changes.
             17      Monies Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          This bill provides an immediate effective date.
             21          This bill coordinates with H.B. 2, Executive Compensation Revisions, by providing
             22      superseding amendments.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          67-8-1, as enacted by Chapter 267, Laws of Utah 1981


             26          67-8-4, as last amended by Chapter 220, Laws of Utah 2001
             27          67-8-5, as last amended by Chapter 139, Laws of Utah 2006
             28          67-19-15, as last amended by Chapter 139, Laws of Utah 2006
             29          67-22-2, as last amended by Chapters 123, 128, 139 and 338, Laws of Utah 2006
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 67-8-1 is amended to read:
             33           67-8-1. Short title.
             34          This act shall be known and may be cited as the "Utah [Executive] Elected Official and
             35      Judicial Salary Act."
             36          Section 2. Section 67-8-4 is amended to read:
             37           67-8-4. State Executive and Judicial Compensation Commission created --
             38      Composition -- Appointment -- Terms -- Organization -- Vacancies -- Quorum --
             39      Compensation -- Secretary.
             40          (1) There is created a state [Executive] Elected Official and Judicial Compensation
             41      Commission comprised of six members, not more than three of whom may be from the same
             42      political party, appointed as follows:
             43          (a) one member appointed by the governor;
             44          (b) one member appointed by the president of the Senate;
             45          (c) one member appointed by the speaker of the House of Representatives;
             46          (d) two members appointed by the other three appointed members; and
             47          (e) one member appointed by the State Bar Commission.
             48          (2) (a) Except as required by Subsection (2)(b), all persons appointed to the
             49      commission shall serve four-year terms or until their successors are duly appointed and
             50      qualified.
             51          (b) Notwithstanding the requirements of Subsection (2)(a), the appointing authority
             52      shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the
             53      terms of commission members are staggered so that approximately half of the commission is
             54      appointed every two years.
             55          (3) (a) The commission shall select a chair and a vice chair from opposite political
             56      parties at its first meeting.


             57          (b) Four members of the commission shall constitute a quorum.
             58          (c) The commission shall take no action nor make any determination without the
             59      concurrence of a majority of its members being present.
             60          (4) When a vacancy occurs in the membership for any reason, the replacement shall be
             61      appointed for the unexpired term.
             62          (5) No member or employee of the legislative, judicial, or executive branch of
             63      government is eligible for appointment to the commission. The legislative fiscal analyst shall
             64      serve as an ex officio, nonvoting secretary of the commission.
             65          (6) (a) Members shall receive no compensation or benefits for their services, but may
             66      receive per diem and expenses incurred in the performance of the member's official duties at
             67      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             68          (b) Legislators on the committee shall receive compensation and expenses as provided
             69      by law and legislative rule.
             70          Section 3. Section 67-8-5 is amended to read:
             71           67-8-5. Duties of commission -- Salary recommendations.
             72          (1) [(a)] The commission shall recommend to the Legislature salaries for:
             73          [(i)] (a) the governor, the lieutenant governor, the attorney general, the state auditor,
             74      and the state treasurer; and
             75          [(ii)] (b) justices of the Supreme Court and judges of the constitutional and statutory
             76      courts of record.
             77          [(b) The commission shall recommend to the Legislature salary ranges for the other
             78      state officers referred to in Article VII, Section 18, and enumerated in Title 67, Chapter 22,
             79      State Officer Compensation.]
             80          [(2) As used in this section and for the purposes of compensation in Title 67, Chapter
             81      22, State Officer Compensation, "state officer" means an individual at the executive level in
             82      state government. The term includes:]
             83          [(a) the governor, the lieutenant governor, the attorney general, the state auditor, and
             84      the state treasurer;]
             85          [(b) justices of the Supreme Court and judges of all constitutional and statutory courts
             86      of record; and]
             87          [(c) full-time commissioners and executive directors of executive branch departments


             88      appointed by the governor or with his approval, who report directly to the governor, and who
             89      are enumerated in Section 67-22-2 .]
             90          [(3)] (2) The commission shall:
             91          (a) make studies and formulate recommendations concerning the wage and salary
             92      classification plan based upon factors such as educational requirements, experience,
             93      responsibility, accountability for funds and staff, comparisons with wages paid in other
             94      comparable public and private employment within this state, and other states similarly situated,
             95      and any other factors generally used in similar comprehensive wage and salary classification
             96      plans so that the plan and its administration reflect current conditions at all times;
             97          (b) consult and advise with, and make recommendation to, the Department of Human
             98      Resource Management regarding the plan, its administration, and the position of any [officer]
             99      elected official and judge covered by the plan;
             100          (c) submit to the Executive Appropriations Committee not later than 60 days before
             101      commencement of each annual general session:
             102          (i) a report briefly summarizing its activities during the calendar year immediately
             103      preceding the session;
             104          (ii) recommendations concerning revisions, modifications, or changes, if any, which
             105      should be made in the plan, its administration, or in the classification of any officer under the
             106      plan; and
             107          (iii) specific recommendations regarding the office of governor, lieutenant governor,
             108      attorney general, state auditor, and state treasurer concerning adjustments, if any, that should be
             109      made in the salary or other emoluments of office so that all [executive] elected and judicial
             110      [officers, elected or appointed,] officials receive equitable and consistent treatment regardless
             111      of whether salaries are fixed by the Legislature or by the Department of Human Resource
             112      Management; and
             113          (d) conduct a comprehensive review of judicial salary levels and make
             114      recommendations for judicial salaries in a report to the president of the Senate, the speaker of
             115      the House of Representatives, and the governor by November 1, prior to the convening of the
             116      general session of the Legislature in each odd-numbered year.
             117          [(4)] (3) (a) The recommendation under Subsection [(3)] (2)(d) shall be based upon
             118      consultation with the Judicial Council and upon consideration for the career status of judges. It


             119      shall be based upon comparisons with salaries paid in other states and in comparable public
             120      and private employment within this state.
             121          (b) In even-numbered years, the commission shall update its prior report, based upon
             122      the Consumer Price Index and other relevant factors, and shall forward its updated
             123      recommendations as prescribed in this section.
             124          [(5)] (4) The Judicial Council shall cooperate with the commission in providing
             125      information on the judicial branch of government and on the individual levels of court as
             126      requested. The director of personnel from the Office of the Court Administrator shall provide
             127      the salary comparison data referred to in this section to the legislative fiscal analyst and shall
             128      provide other staff assistance and support as requested by the legislative fiscal analyst.
             129          Section 4. Section 67-19-15 is amended to read:
             130           67-19-15. Career service -- Exempt positions -- Schedules for civil service
             131      positions -- Coverage of career service provisions.
             132          (1) Except as otherwise provided by law or by rules and regulations established for
             133      federally aided programs, the following positions are exempt from the career service provisions
             134      of this chapter:
             135          (a) the governor, members of the Legislature, and all other elected state officers,
             136      designated as Schedule AA;
             137          (b) [the agency heads] appointed executives and board or commission executives
             138      enumerated in Section 67-22-2 , and commissioners designated as Schedule AB;
             139          (c) all employees and officers in the office and at the residence of the governor,
             140      designated as Schedule AC;
             141          (d) employees who are in a confidential relationship to an agency head or
             142      commissioner and who report directly to, and are supervised by, a department head,
             143      commissioner, or deputy director of an agency or its equivalent, designated as Schedule AD;
             144          (e) unskilled employees in positions requiring little or no specialized skill or training,
             145      designated as Schedule AE;
             146          (f) part-time professional noncareer persons who are paid for any form of medical and
             147      other professional service and who are not engaged in the performance of administrative duties,
             148      designated as Schedule AF;
             149          (g) attorneys in the attorney general's office who are under their own career service pay


             150      plan, designated as Schedule AG;
             151          (h) teaching staff of all state institutions and patients and inmates employed in state
             152      institutions, designated as Schedule AH;
             153          (i) persons appointed to a position vacated by an employee who has a right to return
             154      under federal or state law or policy, designated as Schedule AI;
             155          (j) noncareer employees compensated for their services on a seasonal or contractual
             156      basis who are hired for limited periods of less than nine consecutive months or who are
             157      employed on less than 1/2 time basis, designated as Schedule AJ;
             158          (k) those employees in a personal and confidential relationship to elected officials,
             159      designated as Schedule AK;
             160          (l) employees appointed to perform work of a limited duration not exceeding two years
             161      or to perform work with time-limited funding, designated as Schedule AL;
             162          (m) employees of the Department of Community and Culture whose positions are
             163      designated as executive/professional positions by the executive director of the Department of
             164      Community and Culture with the concurrence of the executive director, and employees of the
             165      Governor's Office of Economic Development whose positions are designated as
             166      executive/professional positions by the director of the office, designated as Schedule AM;
             167          (n) employees of the Legislature, designated as Schedule AN;
             168          (o) employees of the judiciary, designated as Schedule AO;
             169          (p) all judges in the judiciary, designated as Schedule AP;
             170          (q) members of state and local boards and councils appointed by the governor and
             171      governing bodies of agencies, other local officials serving in an ex officio capacity, officers,
             172      faculty, and other employees of state universities and other state institutions of higher
             173      education, designated as Schedule AQ;
             174          (r) employees who make statewide policy, designated as Schedule AR;
             175          (s) any other employee whose appointment is required by statute to be career service
             176      exempt, designated as Schedule AS; and
             177          (t) employees of the Department of Technology Services, designated as
             178      executive/professional positions by the executive director of the Department of Technology
             179      Services with the concurrence of the executive director, designated as Schedule AT.
             180          (2) The civil service shall consist of two schedules as follows:


             181          (a) (i) Schedule A is the schedule consisting of positions exempted by Subsection (1).
             182          (ii) Removal from any appointive position under Schedule A, unless otherwise
             183      regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
             184          (b) Schedule B is the competitive career service schedule, consisting of all positions
             185      filled through competitive selection procedures as defined by the executive director.
             186          (3) (a) The executive director, after consultation with the heads of concerned executive
             187      branch departments and agencies and with the approval of the governor, shall allocate positions
             188      to the appropriate schedules under this section.
             189          (b) Agency heads shall make requests and obtain approval from the executive director
             190      before changing the schedule assignment and tenure rights of any position.
             191          (c) Unless the executive director's decision is reversed by the governor, when the
             192      executive director denies an agency's request, the executive director's decision is final.
             193          (4) (a) Compensation for employees of the Legislature shall be established by the
             194      directors of the legislative offices in accordance with Section 36-12-7 .
             195          (b) Compensation for employees of the judiciary shall be established by the state court
             196      administrator in accordance with Section 78-3-24 .
             197          (c) Compensation for officers, faculty, and other employees of state universities and
             198      institutions of higher education shall be established as provided in Title 53B, Chapters 1,
             199      Governance, Powers, Rights, and Responsibilities, and 2, Institutions of Higher Education.
             200          (d) Unless otherwise provided by law, compensation for all other Schedule A
             201      employees shall be established by their appointing authorities, within ranges approved by, and
             202      after consultation with the executive director of the Department of Human Resource
             203      Management.
             204          (5) All employees of the Office of State Auditor, the Office of State Treasurer, the
             205      Office of the Attorney General, excluding attorneys who are under their own career service
             206      system, and employees who are not exempt under this section are covered by the career service
             207      provisions of this chapter.
             208          Section 5. Section 67-22-2 is amended to read:
             209           67-22-2. Compensation -- Other state officers.
             210          [(1) (a) The governor shall establish salaries for the following state officers within the
             211      following salary ranges fixed by the Legislature:]


             212          [        State Officer                 Salary Range]
             213          [Commissioner of Agriculture and Food     $66,800 - $90,600]
             214          [Commissioner of Insurance             $66,800 - $90,600]
             215          [Commissioner of the Labor Commission     $66,800 - $90,600]
             216          [Director, Alcoholic Beverage Control]
             217          [    Commission                 $66,800 - $90,600]
             218          [Members, Board of Pardons and Parole     $66,800 - $90,600]
             219          [Executive Director, Department]
             220          [    of Commerce                 $66,800 - $90,600]
             221          [Executive Director, Commission on]
             222          [    Criminal and Juvenile Justice     $66,800 - $90,600]
             223          [Adjutant General                 $66,800 - $90,600]
             224          [Chair, Tax Commission             $72,400 - $97,600]
             225          [Commissioners, Tax Commission         $72,400 - $97,600]
             226          [Executive Director, Department of]
             227          [    Community and Culture         $72,400 - $97,600]
             228          [Executive Director, Tax Commission     $72,400 - $97,600]
             229          [Chair, Public Service Commission         $72,400 - $97,600]
             230          [Commissioners, Public Service]
             231          [    Commission                 $72,400 - $97,600]
             232          [Executive Director, Department]
             233          [    of Corrections                 $78,700 - $106,200]
             234          [Commissioner, Department of Public Safety     $78,700 - $106,200]
             235          [Executive Director, Department of]
             236          [    Natural Resources             $78,700 - $106,200]
             237          [Director, Governor's Office of Planning]
             238          [    and Budget                 $78,700 - $106,200]
             239          [Executive Director, Department of]
             240          [    Administrative Services         $78,700 - $106,200]
             241          [Executive Director, Department of]
             242          [    Human Resource Management    $78,000 - $106,200]


             243          [Executive Director, Department of]
             244          [    Environmental Quality         $78,700 - $106,200]
             245          [Director, Governor's Office]
             246          [    of Economic Development         $78,700 - $106,200]
             247          [Executive Director, Utah Science]
             248          [    Technology and Research]
             249          [    Governing Authority             $78,700 - $106,200]
             250          [Executive Director, Department of]
             251          [    Workforce Services             $85,700 - $115,700]
             252          [Executive Director, Department of]
             253          [    Health, Nonphysician             $85,700 - $115,700]
             254          [Executive Director, Department]
             255          [    of Human Services             $85,700 - $115,700]
             256          [Executive Director, Department]
             257          [    of Transportation             $85,700 - $115,700]
             258          [Executive Director, Department]
             259          [    of Information Technology]
             260          [    Services                 $85,700 - $115,700]
             261          [(b) If the executive director of the Department of Health is a physician, the governor
             262      shall establish a salary within the highest physician salary range established by the Department
             263      of Human Resource Management.]
             264          [(c) The governor shall establish the salary for the commissioner of the Department of
             265      Financial Institutions to be no less than 110% and no more than 120% of the highest salary
             266      paid to any other employee of the Department of Financial Institutions.]
             267          (1) As used in this section:
             268          (a) "Appointed executive" means the:
             269          (i) Commissioner of the Department of Agriculture and Food;
             270          (ii) Commissioner of the Insurance Department;
             271          (iii) Commissioner of the Labor Commission;
             272          (iv) Director, Alcoholic Beverage Control Commission;
             273          (v) Commissioner of the Department of Financial Institutions;


             274          (vi) Executive Director, Department of Commerce;
             275          (vii) Executive Director, Commission on Criminal and Juvenile Justice;
             276          (viii) Adjutant General;
             277          (ix) Executive Director, Department of Community and Culture;
             278          (x) Executive Director, Department of Corrections;
             279          (xi) Commissioner, Department of Public Safety;
             280          (xii) Executive Director, Department of Natural Resources;
             281          (xiii) Director, Governor's Office of Planning and Budget;
             282          (xiv) Executive Director, Department of Administrative Services;
             283          (xv) Executive Director, Department of Human Resource Management;
             284          (xvi) Executive Director, Department of Environmental Quality;
             285          (xvii) Director, Governor's Office of Economic Development;
             286          (xviii) Executive Director, Utah Science Technology and Research Governing
             287      Authority;
             288          (xix) Executive Director, Department of Workforce Services;
             289          (xx) Executive Director, Department of Health, Nonphysician;
             290          (xxi) Executive Director, Department of Human Services;
             291          (xxii) Executive Director, Department of Transportation; and
             292          (xxiii) Executive Director, Department of Technology Services.
             293          (b) "Board or commission executive" means:
             294          (i) Members, Board of Pardons and Parole;
             295          (ii) Chair, State Tax Commission;
             296          (iii) Commissioners, State Tax Commission;
             297          (iv) Executive Director, State Tax Commission;
             298          (v) Chair, Public Service Commission; and
             299          (vi) Commissioners, Public Service Commission.
             300          (c) "Deputy" means the person who acts as the appointed executive's second in
             301      command as determined by the Department of Human Resource Management.
             302          (2) (a) The executive director of the Department of Human Resource Management
             303      shall:
             304          (i) before October 31 of each year, recommend to the governor a compensation plan for


             305      the appointed executives and the board or commission executives; and
             306          (ii) base those recommendations on market salary studies conducted by the Department
             307      of Human Resource Management.
             308          (b) (i) The Department of Human Resource Management shall determine the salary
             309      range for the appointed executives by:
             310          (A) identifying the salary range assigned to the appointed executive's deputy;
             311          (B) designating the lowest minimum salary from those deputies' salary ranges as the
             312      minimum salary for the appointed executives' salary range; and
             313          (C) designating 105% of the highest maximum salary range from those deputies' salary
             314      ranges as the maximum salary for the appointed executives' salary range.
             315          (ii) If the deputy is a medical doctor, the Department of Human Resource Management
             316      may not consider that deputy's salary range in designating the salary range for appointed
             317      executives.
             318          (c) In establishing the salary ranges for board or commission executives, the
             319      Department of Human Resource Management shall set the maximum salary in the salary range
             320      for each of those positions at 90 percent of the salary for district judges as established in the
             321      annual appropriation act under Section 67-8-2 .
             322          (3) (a) (i) Except as provided in Subsection (3)(a)(ii), the governor shall establish a
             323      specific salary for each appointed executive within the range established under Subsection
             324      (2)(b).
             325          (ii) If the executive director of the Department of Health is a physician, the governor
             326      shall establish a salary within the highest physician salary range established by the Department
             327      of Human Resource Management.
             328          (iii) The governor may provide salary increases for appointed executives within the
             329      range established by Subsection (2)(b) and identified in Subsection (3)(a)(ii).
             330          (b) The governor shall apply the same overtime regulations applicable to other FLSA
             331      exempt positions.
             332          (c) The governor may develop standards and criteria for reviewing the appointed
             333      executives.
             334          (4) Salaries for other Schedule A employees, as defined in Section 67-19-15 , that are
             335      not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary


             336      Act, shall be established as provided in Section 67-19-15 .
             337          [(2)] (5) (a) The Legislature fixes benefits for the [state officers outlined in Subsection
             338      (1)] appointed executives and the board or commission executives as follows:
             339          (i) the option of participating in a state retirement system established by Title 49, Utah
             340      State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered
             341      by the State Retirement Office in accordance with the Internal Revenue Code and its
             342      accompanying rules and regulations;
             343          (ii) health insurance;
             344          (iii) dental insurance;
             345          (iv) basic life insurance;
             346          (v) unemployment compensation;
             347          (vi) workers' compensation;
             348          (vii) required employer contribution to Social Security;
             349          (viii) long-term disability income insurance;
             350          (ix) the same additional state-paid life insurance available to other noncareer service
             351      employees;
             352          (x) the same severance pay available to other noncareer service employees;
             353          (xi) the same leave, holidays, and allowances granted to Schedule B state employees as
             354      follows:
             355          (A) sick leave;
             356          (B) converted sick leave if accrued prior to January 1, 2014;
             357          (C) educational allowances;
             358          (D) holidays; and
             359          (E) annual leave except that annual leave shall be accrued at the maximum rate
             360      provided to Schedule B state employees;
             361          (xii) the option to convert accumulated sick leave to cash or insurance benefits as
             362      provided by law or rule upon resignation or retirement according to the same criteria and
             363      procedures applied to Schedule B state employees;
             364          (xiii) the option to purchase additional life insurance at group insurance rates according
             365      to the same criteria and procedures applied to Schedule B state employees; and
             366          (xiv) professional memberships if being a member of the professional organization is a


             367      requirement of the position.
             368          (b) Each department shall pay the cost of additional state-paid life insurance for its
             369      executive director from its existing budget.
             370          [(3)] (6) The Legislature fixes the following additional benefits:
             371          (a) for the executive director of the State Tax Commission a vehicle for official and
             372      personal use;
             373          (b) for the executive director of the Department of Transportation a vehicle for official
             374      and personal use;
             375          (c) for the executive director of the Department of Natural Resources a vehicle for
             376      commute and official use;
             377          (d) for the Commissioner of Public Safety:
             378          (i) an accidental death insurance policy if POST certified; and
             379          (ii) a public safety vehicle for official and personal use;
             380          (e) for the executive director of the Department of Corrections:
             381          (i) an accidental death insurance policy if POST certified; and
             382          (ii) a public safety vehicle for official and personal use;
             383          (f) for the Adjutant General a vehicle for official and personal use; and
             384          (g) for each member of the Board of Pardons and Parole a vehicle for commute and
             385      official use.
             386          [(4) (a) The governor has the discretion to establish a specific salary for each office
             387      listed in Subsection (1), and, within that discretion, may provide salary increases within the
             388      range fixed by the Legislature.]
             389          [(b) The governor shall apply the same overtime regulations applicable to other FLSA
             390      exempt positions.]
             391          [(c) The governor may develop standards and criteria for reviewing the performance of
             392      the state officers listed in Subsection (1).]
             393          [(5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which
             394      are not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial
             395      Salary Act, shall be established as provided in Section 67-19-15 .]
             396          Section 6. Effective date.
             397          If approved by two-thirds of all the members elected to each house, this bill takes effect


             398      upon approval by the governor, or the day following the constitutional time limit of Utah
             399      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             400      the date of veto override.
             401          Section 7. Coordinating S.B. 196 with H.B. 2.
             402          If this S.B. 196 and H.B. 2, Executive Compensation Revisions, both pass, it is the
             403      intent of the Legislature that the amendments to Section 67-22-2 in this bill supersede the
             404      amendments to Section 67-22-2 in H.B. 2 when the Office of Legislative Research and General
             405      Counsel prepares the Utah Code database for publication.


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