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[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]

H.B. 140 Enrolled

             1     

HUMAN RESOURCE MANAGEMENT

             2     
AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Brad L. Dee

             6     
Senate Sponsor: Daniel R. Liljenquist

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah State Personnel Management Act by amending state
             11      employee compensation pay plan provisions and employee grievance procedures and
             12      by replacing the Career Service Review Board.
             13      Highlighted Provisions:
             14          This bill:
             15          .    amends certain definitions;
             16          .    amends vacant position report provisions for the Department of Human Resource
             17      Management's executive director;
             18          .    repeals a requirement that an agency obtain field office approval for appointments
             19      to vacant positions;
             20          .    adds the attorney general or designee to the human resource management rate
             21      committee;
             22          .    requires that costs incurred by the attorney general to defend state employee
             23      grievances be submitted to the rate committee in the proposed fee schedule;
             24          .    repeals steps within pay ranges for state career service employees in the state
             25      employee compensation plans;
             26          .    repeals provisions requiring the most recently earned sick leave to be used first;
             27          .    provides that continuing medical and life insurance benefits provided at the time of
             28      retirement:
             29              .    may not be suspended or deferred for future use; and


             30              .    continues in effect until exhausted;
             31          .    prohibits an employer participating in certain benefit programs from providing
             32      certain benefits to a person reemployed after retirement;
             33          .    amends and consolidates classification schedules for state employees;
             34          .    amends provisions for salary increases based on employee longevity and
             35      promotion;
             36          .    replaces the Career Service Review Board with the Career Service Review Office
             37      and provides that the office is the final administrative body to review certain
             38      employee grievances;
             39          .    provides for the appointment, qualifications, powers, and duties of the
             40      administrator of the office;
             41          .    provides that the administrator has rulemaking authority;
             42          .    amends employee grievance procedures;
             43          .    amends the burden of proof for certain grievances;
             44          .    prohibits an employee from making certain dispositive motions and certain motions
             45      for discovery in a formal adjudicative proceeding on a grievance; and
             46          .    makes technical changes.
             47      Monies Appropriated in this Bill:
             48          None
             49      Other Special Clauses:
             50          This bill takes effect on July 1, 2010.
             51          This bill provides revisor instructions.
             52          This bill coordinates with H.B. 27, Per Diem and Travel Expense Modifications, by
             53      providing superseding and substantive amendments.
             54      Utah Code Sections Affected:
             55      AMENDS:
             56          63I-2-267, as renumbered and amended by Laws of Utah 2008, Chapter 382
             57          67-19-3, as last amended by Laws of Utah 2006, Chapter 139


             58          67-19-3.1, as last amended by Laws of Utah 2006, Chapter 139
             59          67-19-6, as last amended by Laws of Utah 2008, Chapter 382
             60          67-19-6.1, as last amended by Laws of Utah 2006, Chapter 139
             61          67-19-6.7, as last amended by Laws of Utah 2008, Chapter 382
             62          67-19-11, as last amended by Laws of Utah 2009, Chapters 104 and 183
             63          67-19-12, as last amended by Laws of Utah 2009, Chapter 294
             64          67-19-12.2, as last amended by Laws of Utah 2006, Chapter 139
             65          67-19-14, as last amended by Laws of Utah 2008, Chapter 382
             66          67-19-14.2, as last amended by Laws of Utah 2007, Chapter 130
             67          67-19-15, as last amended by Laws of Utah 2009, Chapter 294
             68          67-19-15.6, as last amended by Laws of Utah 2006, Chapter 139
             69          67-19-15.7, as last amended by Laws of Utah 2000, Chapter 322
             70          67-19-16, as last amended by Laws of Utah 2006, Chapter 139
             71          67-19-18, as last amended by Laws of Utah 2009, Chapter 9
             72          67-19-30, as last amended by Laws of Utah 2008, Chapter 382
             73          67-19a-101, as last amended by Laws of Utah 1991, Chapters 101 and 204
             74          67-19a-201, as last amended by Laws of Utah 1996, Chapters 194 and 243
             75          67-19a-203, as last amended by Laws of Utah 2008, Chapter 382
             76          67-19a-204, as last amended by Laws of Utah 1995, Chapter 215
             77          67-19a-301, as last amended by Laws of Utah 1991, Chapter 101
             78          67-19a-302, as last amended by Laws of Utah 1991, Chapter 204
             79          67-19a-303, as last amended by Laws of Utah 2006, Chapter 139
             80          67-19a-401, as last amended by Laws of Utah 1999, Chapter 21
             81          67-19a-402, as last amended by Laws of Utah 1991, Chapter 204
             82          67-19a-403, as last amended by Laws of Utah 1991, Chapter 204
             83          67-19a-404, as enacted by Laws of Utah 1989, Chapter 191
             84          67-19a-406, as last amended by Laws of Utah 2006, Chapter 14
             85      ENACTS:


             86          67-19a-101.5, Utah Code Annotated 1953
             87      REPEALS AND REENACTS:
             88          67-19a-202, as last amended by Laws of Utah 2008, Chapter 382
             89      REPEALS:
             90          67-19a-407, as enacted by Laws of Utah 1989, Chapter 191
             91          67-19a-408, as last amended by Laws of Utah 2009, Chapter 9
             92      Utah Code Sections Affected by Coordination Clause:
             93          67-19a-201, as last amended by Laws of Utah 1996, Chapters 194 and 243
             94     
             95      Be it enacted by the Legislature of the state of Utah:
             96          Section 1. Section 63I-2-267 is amended to read:
             97           63I-2-267. Repeal dates -- Title 67.
             98          Section 67-19a-101.5 is repealed July 1, 2011.
             99          Section 2. Section 67-19-3 is amended to read:
             100           67-19-3. Definitions.
             101          As used in this chapter:
             102          (1) "Agency" means any department or unit of Utah state government with authority to
             103      employ personnel.
             104          (2) "Career service" means positions under schedule B as defined in Section 67-19-15 .
             105          (3) "Career service employee" means an employee who has successfully completed a
             106      probationary period of service in a position covered by the career service.
             107          (4) "Career service status" means status granted to employees who successfully
             108      complete probationary periods for competitive career service positions.
             109          (5) "Classified service" means those positions subject to the classification and
             110      compensation provisions of Section 67-19-12 .
             111          (6) "Controlled substance" means controlled substance as defined in Section 58-37-2 .
             112          (7) (a) "Demotion" means a disciplinary action resulting in a reduction of an
             113      employee's current actual wage.


             114          (b) "Demotion" does not mean:
             115          (i) a nondisciplinary movement of an employee to another position without a reduction
             116      in the current actual wage; or
             117          (ii) a reclassification of an employee's position under the provisions of Subsection
             118      67-19-12 (3) and rules made by the department.
             119          (8) "Department" means the Department of Human Resource Management.
             120          (9) "Disability" means a physical or mental disability as defined and protected under
             121      the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
             122          (10) "Employee" means any individual in a paid status covered by the career service or
             123      classified service provisions of this chapter.
             124          (11) "Examining instruments" means written or other types of proficiency tests.
             125          (12) "Executive director," except where otherwise specified, means the executive
             126      director of the Department of Human Resource Management.
             127          (13) "Human resource function" means those duties and responsibilities specified:
             128          (a) under Section 67-19-6 ;
             129          (b) under rules of the department; and
             130          (c) under other state or federal statute.
             131          (14) "Market comparability adjustment" means a salary range adjustment determined
             132      necessary through a market survey of salary ranges of a reasonable cross section of comparable
             133      benchmark positions in private and public employment.
             134          (15) "Probationary employee" means an employee serving a probationary period in a
             135      career service position but who does not have career service status.
             136          (16) "Probationary period" means that period of time determined by the department
             137      that an employee serves in a career service position as part of the hiring process before career
             138      service status is granted to the employee.
             139          (17) "Probationary status" means the status of an employee between the employee's
             140      hiring and the granting of career service status.
             141          (18) "Temporary employee" means career service exempt employees on schedule [AJ,


             142      AI, or AL] IN or TL under Section 67-19-15 .
             143          (19) "Total compensation" means salaries and wages, bonuses, paid leave, group
             144      insurance plans, retirement, and all other benefits offered to state employees as inducements to
             145      work for the state.
             146          Section 3. Section 67-19-3.1 is amended to read:
             147           67-19-3.1. Principles guiding interpretation of chapter and adoption of rules.
             148          (1) The department shall establish a career service system designed in a manner that
             149      will provide for the effective implementation of the following merit principles:
             150          (a) recruiting, selecting, and advancing employees on the basis of their relative ability,
             151      knowledge, and skills, including open consideration of qualified applicants for initial
             152      appointment;
             153          (b) providing for equitable and competitive compensation;
             154          (c) training employees as needed to assure high-quality performance;
             155          (d) retaining employees on the basis of the adequacy of their performance and
             156      separating employees whose inadequate performance cannot be corrected;
             157          (e) fair treatment of applicants and employees in all aspects of human resource
             158      administration without regard to race, color, religion, sex, national origin, political affiliation,
             159      age, or disability, and with proper regard for their privacy and constitutional rights as citizens;
             160          (f) providing information to employees regarding their political rights and the
             161      prohibited practices under the Hatch Act; and
             162          (g) providing a formal procedure for [processing the appeals and] advancing
             163      grievances of employees:
             164          (i) without discrimination, coercion, restraint, or reprisal; and
             165          (ii) in a manner that is fair, expeditious, and inexpensive for the employee and the
             166      agency.
             167          (2) The principles in Subsection (1) shall govern interpretation and implementation of
             168      this chapter.
             169          Section 4. Section 67-19-6 is amended to read:


             170           67-19-6. Responsibilities of the executive director.
             171          (1) The executive director shall:
             172          (a) develop, implement, and administer a statewide program of human resource
             173      management that will:
             174          (i) aid in the efficient execution of public policy;
             175          (ii) foster careers in public service for qualified employees; and
             176          (iii) render assistance to state agencies in performing their missions;
             177          (b) design and administer the state pay plan;
             178          (c) design and administer the state classification system and procedures for
             179      determining schedule assignments;
             180          (d) design and administer the state recruitment and selection system;
             181          (e) administer agency human resource practices and ensure compliance with federal
             182      law, state law, and state human resource rules, including equal employment opportunity;
             183          (f) consult with agencies on decisions concerning employee corrective action and
             184      discipline;
             185          (g) maintain central personnel records;
             186          (h) perform those functions necessary to implement this chapter unless otherwise
             187      assigned or prohibited;
             188          (i) perform duties assigned by the governor or statute;
             189          (j) adopt rules for human resource management according to the procedures of Title
             190      63G, Chapter 3, Utah Administrative Rulemaking Act;
             191          (k) establish and maintain a management information system that will furnish the
             192      governor, the Legislature, and agencies with current information on authorized positions,
             193      payroll, and related matters concerning state human resources;
             194          (l) conduct research and planning activities to:
             195          (i) determine and prepare for future state human resource needs;
             196          (ii) develop methods for improving public human resource management; and
             197          (iii) propose needed policy changes to the governor;


             198          (m) study the character, causes, and extent of discrimination in state employment and
             199      develop plans for its elimination through programs consistent with federal and state laws
             200      governing equal employment opportunity in employment;
             201          (n) when requested by counties, municipalities, and other political subdivisions of the
             202      state, provide technical service and advice on human resource management at a charge
             203      determined by the executive director;
             204          (o) establish compensation policies and procedures for early voluntary retirement;
             205          (p) confer with the heads of other agencies about human resource policies and
             206      procedures;
             207          (q) submit an annual report to the governor and the Legislature; and
             208          (r) [(i) develop a procedure by which each agency will:] assist with the development of
             209      a vacant position report required under Subsection 63J-1-201 (2)(b)(v).
             210          [(A) identify funded vacant positions; and]
             211          [(B) report those funded vacant positions to the department;]
             212          [(ii) identify all funded employee positions in each agency that have been vacant for
             213      more than 180 consecutive days during the 18-month period prior to July 1 of each year; and]
             214          [(iii) by no later than September 1 of each year, provide a report of all funded
             215      employee positions in each agency identified in Subsections (1)(r)(i) and (ii) to:]
             216          [(A) the Governor's Office of Planning and Budget; and]
             217          [(B) the Office of the Legislative Fiscal Analyst.]
             218          (2) (a) After consultation with the governor and the heads of other agencies, the
             219      executive director shall establish and coordinate statewide training programs.
             220          (b) The programs developed under this Subsection (2) shall have application to more
             221      than one agency.
             222          (c) The department may not establish training programs that train employees to
             223      perform highly specialized or technical jobs and tasks.
             224          (3) (a) (i) The department may collect fees for training as authorized by this
             225      Subsection (3).


             226          (ii) Training funded from General Fund appropriations shall be treated as a separate
             227      program within the department budget.
             228          (iii) All money received from fees under this section will be accounted for by the
             229      department as a separate user driven training program.
             230          (iv) The user training program includes the costs of developing, procuring, and
             231      presenting training and development programs, and other associated costs for these programs.
             232          (b) (i) Funds remaining at the end of the fiscal year in the user training program are
             233      nonlapsing.
             234          (ii) Each year, as part of the appropriations process, the Legislature shall review the
             235      amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
             236      the department to lapse a portion of the funds.
             237          Section 5. Section 67-19-6.1 is amended to read:
             238           67-19-6.1. Department field offices.
             239          (1) The executive director of the Department of Human Resource Management may
             240      establish a field office in an agency.
             241          (2) The executive director may assign an employee of the department to act as field
             242      office staff.
             243          (3) The executive director and agency head shall sign an agreement, to be reviewed
             244      annually, that specifies:
             245          (a) the services to be provided by the department;
             246          (b) the use of agency facilities and equipment by the field office;
             247          (c) protocols to resolve discrepancies between agency practice and Department of
             248      Human Resource Management policy; and
             249          (d) any other issue necessary for the proper functioning of the field office.
             250          (4) Unless otherwise provided for in the field office agreement, the agency shall:
             251          [(a) obtain field office approval for the final selection of qualified applicants for
             252      appointment and promotion to vacant positions;]
             253          [(b)] (a) assign responsibilities and duties to its employees;


             254          [(c)] (b) conduct performance appraisals;
             255          [(d)] (c) discipline its employees in consultation with the department; and
             256          [(e)] (d) maintain individual personnel records.
             257          Section 6. Section 67-19-6.7 is amended to read:
             258           67-19-6.7. Overtime policies for state employees.
             259          (1) As used in this section:
             260          (a) "Accrued overtime hours" means:
             261          (i) for nonexempt employees, overtime hours earned during a fiscal year that, at the
             262      end of the fiscal year, have not been paid and have not been taken as time off by the
             263      nonexempt state employee who accrued them; and
             264          (ii) for exempt employees, overtime hours earned during an overtime year.
             265          (b) "Appointed official" means:
             266          (i) each department executive director and deputy director, each division director, and
             267      each member of a board or commission; and
             268          (ii) any other person employed by a department who is appointed by, or whose
             269      appointment is required by law to be approved by, the governor and who:
             270          (A) is paid a salary by the state; and
             271          (B) who exercises managerial, policy-making, or advisory responsibility.
             272          (c) "Department" means the Department of Administrative Services, the Department
             273      of Corrections, the Department of Financial Institutions, the Department of Alcoholic
             274      Beverage Control, the Insurance Department, the Public Service Commission, the Labor
             275      Commission, the Department of Agriculture and Food, the Department of Human Services, the
             276      State Board of Education, the Department of Natural Resources, the Department of
             277      Technology Services, the Department of Transportation, the Department of Commerce, the
             278      Department of Workforce Services, the State Tax Commission, the Department of Community
             279      and Culture, the Department of Health, the National Guard, the Department of Environmental
             280      Quality, the Department of Public Safety, the Department of Human Resource Management,
             281      the Commission on Criminal and Juvenile Justice, all merit employees except attorneys in the


             282      Office of the Attorney General, merit employees in the Office of the State Treasurer, [and]
             283      merit employees in the Office of the State Auditor, Department of Veterans' Affairs, and the
             284      Board of Pardons and Parole.
             285          (d) "Elected official" means any person who is an employee of the state because the
             286      person was elected by the registered voters of Utah to a position in state government.
             287          (e) "Exempt employee" means a state employee who is exempt as defined by the Fair
             288      Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             289          (f) "FLSA" means the Fair Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             290          (g) "FLSA agreement" means the agreement authorized by the Fair Labor Standards
             291      Act of 1978, 29 U.S.C. Section 201 et seq., by which a nonexempt employee elects the form of
             292      compensation the nonexempt employee will receive for overtime.
             293          (h) "Nonexempt employee" means a state employee who is nonexempt as defined by
             294      the Department of Human Resource Management applying FLSA requirements.
             295          (i) "Overtime" means actual time worked in excess of the employee's defined work
             296      period.
             297          (j) "Overtime year" means the year determined by a department under Subsection
             298      (4)(b) at the end of which an exempt employee's accrued overtime lapses.
             299          (k) [(i)] "State employee" means every person employed by a department who is not:
             300          (i) an appointed official [or];
             301          (ii) an elected official[.];
             302          (iii) a member of a board or commission who is paid only on a per diem or travel
             303      expenses basis; or
             304          (iv) employed on a contractual basis at the State Office of Education.
             305          [(ii) "State employee" does not mean:]
             306          [(A) certificated employees of the State Board of Education; and]
             307          [(B) employees of the Department of Community and Culture or the Governor's Office
             308      of Economic Development, whose positions are designated as schedule AM exempt employees
             309      under Section 67-19-15 .]


             310          (l) "Uniform annual date" means the date when an exempt employee's accrued
             311      overtime lapses.
             312          (m) "Work period" means:
             313          (i) for all nonexempt employees, except law enforcement and hospital employees, a
             314      consecutive seven day 24 hour work period of 40 hours;
             315          (ii) for all exempt employees, a 14 day, 80 hour payroll cycle; and
             316          (iii) for nonexempt law enforcement and hospital employees, the period established by
             317      each department by rule for those employees according to the requirements of the Fair Labor
             318      Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             319          (2) Each department shall compensate each state employee who works overtime by
             320      complying with the requirements of this section.
             321          (3) (a) Each department shall negotiate and obtain a signed FLSA agreement from
             322      each nonexempt employee.
             323          (b) In the FLSA agreement, the nonexempt employee shall elect either to be
             324      compensated for overtime by:
             325          (i) taking time off work at the rate of one and one-half hour off for each overtime hour
             326      worked; or
             327          (ii) being paid for the overtime worked at the rate of one and one-half times the rate
             328      per hour that the state employee receives for nonovertime work.
             329          (c) Any nonexempt employee who elects to take time off under this Subsection (3)
             330      shall be paid for any overtime worked in excess of the cap established by the Department of
             331      Human Resource Management.
             332          (d) Before working any overtime, each nonexempt employee shall obtain authorization
             333      to work overtime from the employee's immediate supervisor.
             334          (e) Each department shall:
             335          (i) for employees who elect to be compensated with time off for overtime, allow
             336      overtime earned during a fiscal year to be accumulated; and
             337          (ii) for employees who elect to be paid for overtime worked, pay them for overtime


             338      worked in the paycheck for the pay period in which the employee worked the overtime.
             339          (f) If the department pays a nonexempt employee for overtime, the department shall
             340      charge that payment to the department's budget.
             341          (g) At the end of each fiscal year, the Division of Finance shall total all the accrued
             342      overtime hours for nonexempt employees and charge that total against the appropriate fund or
             343      subfund.
             344          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), each department shall
             345      compensate exempt employees who work overtime by granting them time off at the rate of one
             346      hour off for each hour of overtime worked.
             347          (ii) The executive director of the Department of Human Resource Management may
             348      grant limited exceptions to this requirement, where work circumstances dictate, by authorizing
             349      a department to pay employees for overtime worked at the rate per hour that the employee
             350      receives for nonovertime work, if the department has funds available.
             351          (b) (i) Each department shall:
             352          (A) establish in its written human resource policies a uniform annual date for each
             353      division that is at the end of any pay period; and
             354          (B) communicate the uniform annual date to its employees.
             355          (ii) If any department fails to establish a uniform annual date as required by this
             356      Subsection (4), the executive director of the Department of Human Resource Management, in
             357      conjunction with the director of the Division of Finance, shall establish the date for that
             358      department.
             359          (c) (i) Any overtime earned under this Subsection (4) is not an entitlement, is not a
             360      benefit, and is not a vested right.
             361          (ii) A court may not construe the overtime for exempt employees authorized by this
             362      Subsection (4) as an entitlement, a benefit, or as a vested right.
             363          (d) At the end of the overtime year, upon transfer to another department at any time,
             364      and upon termination, retirement, or other situations where the employee will not return to
             365      work before the end of the overtime year:


             366          (i) any of an exempt employee's overtime that is more than the maximum established
             367      by the Department of Human Resource Management rule lapses; and
             368          (ii) unless authorized by the executive director of the Department of Human Resource
             369      Management under Subsection (4)(a)(ii), a department may not compensate the exempt
             370      employee for that lapsed overtime by paying the employee for the overtime or by granting the
             371      employee time off for the lapsed overtime.
             372          (e) Before working any overtime, each exempt employee shall obtain authorization to
             373      work overtime from the exempt employee's immediate supervisor.
             374          (f) If the department pays an exempt employee for overtime under authorization from
             375      the executive director of the Department of Human Resource Management, the department
             376      shall charge that payment to the department's budget in the pay period earned.
             377          (5) The Department of Human Resource Management shall:
             378          (a) ensure that the provisions of the FLSA and this section are implemented
             379      throughout state government;
             380          (b) determine, for each state employee, whether that employee is exempt, nonexempt,
             381      law enforcement, or has some other status under the FLSA;
             382          (c) in coordination with modifications to the systems operated by the Division of
             383      Finance, make rules:
             384          (i) establishing procedures for recording overtime worked that comply with FLSA
             385      requirements;
             386          (ii) establishing requirements governing overtime worked while traveling and
             387      procedures for recording that overtime that comply with FLSA requirements;
             388          (iii) establishing requirements governing overtime worked if the employee is "on call"
             389      and procedures for recording that overtime that comply with FLSA requirements;
             390          (iv) establishing requirements governing overtime worked while an employee is being
             391      trained and procedures for recording that overtime that comply with FLSA requirements;
             392          (v) subject to the FLSA, establishing the maximum number of hours that a nonexempt
             393      employee may accrue before a department is required to pay the employee for the overtime


             394      worked;
             395          (vi) subject to the FLSA, establishing the maximum number of overtime hours for an
             396      exempt employee that do not lapse; and
             397          (vii) establishing procedures for adjudicating appeals of any FLSA determinations
             398      made by the Department of Human Resource Management as required by this section;
             399          (d) monitor departments for compliance with the FLSA; and
             400          (e) recommend to the Legislature and the governor any statutory changes necessary
             401      because of federal government action.
             402          (6) In coordination with the procedures for recording overtime worked established in
             403      rule by the Department of Human Resource Management, the Division of Finance shall
             404      modify its payroll and human resource systems to accommodate those procedures.
             405          (a) Notwithstanding the procedures and requirements of Title 63G, Chapter 4,
             406      Administrative Procedures Act, Section 67-19-31 , and Section 67-19a-301 , any employee who
             407      is aggrieved by the FLSA designation made by the Department of Human Resource
             408      Management as required by this section may appeal that determination to the executive
             409      director of the Department of Human Resource Management by following the procedures and
             410      requirements established in Department of Human Resource Management rule.
             411          (b) Upon receipt of an appeal under this section, the executive director shall notify the
             412      executive director of the employee's department that the appeal has been filed.
             413          (c) If the employee is aggrieved by the decision of the executive director of the
             414      Department of Human Resource Management, the employee shall appeal that determination to
             415      the Department of Labor, Wage and Hour Division, according to the procedures and
             416      requirements of federal law.
             417          Section 7. Section 67-19-11 is amended to read:
             418           67-19-11. Use of department facilities -- Field office facilities cost allocation --
             419      Funding for department.
             420          (1) (a) All officers and employees of the state and its political subdivisions shall allow
             421      the department to use public buildings under their control, and furnish heat, light, and


             422      furniture, for any examination, training, hearing, or investigation authorized by this chapter.
             423          (b) The cost of the department's use of facilities shall be paid by the agency housing a
             424      field office staff.
             425          (2) The executive director shall:
             426          (a) prepare an annual budget request for the department;
             427          (b) submit the budget request to the governor and the Legislature; and
             428          (c) [except for fiscal year 2007,] before charging a fee for services provided by the
             429      department's internal service fund to an executive branch agency, the executive director shall:
             430          (i) submit the proposed rates, fees, and cost analysis to the Rate Committee
             431      established under Subsection (3); and
             432          (ii) obtain the approval of the Legislature as required under Section 63J-1-410 .
             433          (3) (a) There is created a Rate Committee which shall consist of:
             434          (i) the director of the Governor's Office of Planning and Budget, or a designee;
             435          (ii) the executive directors of three state agencies that use services and pay rates to one
             436      of the department internal service funds, or their designee, appointed by the governor for a
             437      two-year term;
             438          (iii) the director of the Division of Finance, or a designee; [and]
             439          (iv) the executive director of the Department of Human Resource Management, or a
             440      designee[.]; and
             441          (v) the attorney general or designee.
             442          (b) (i) The committee shall elect a chair from its members, except that the chair may
             443      not be from an agency that receives payment of a rate set by the committee.
             444          (ii) Members of the committee who are state government employees and who do not
             445      receive salary, per diem, or expenses from their agency for their service on the committee shall
             446      receive no compensation, benefits, per diem, or expenses for the members' service on the
             447      committee.
             448          (c) The Department of Human Resource Management shall provide staff services to
             449      the committee.


             450          (4) (a) The department shall submit to the committee a proposed rate and fee schedule
             451      for:
             452          (i) human resource management services rendered[.]; and
             453          (ii) costs incurred by the Office of the Attorney General in defending the state in a
             454      grievance under review by the Career Service Review Office.
             455          (b) The committee shall:
             456          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public
             457      Meetings Act;
             458          (ii) review the proposed rate and fee schedules and may approve, increase, or decrease
             459      the rate and fee;
             460          (iii) recommend a proposed rate and fee schedule for the internal service fund to:
             461          (A) the Governor's Office of Planning and Budget; and
             462          (B) the legislative appropriations subcommittees that, in accordance with Section
             463      63J-1-410 , approve the internal service fund rates, fees, and budget; and
             464          (iv) review and approve, increase or decrease an interim rate, fee, or amount when the
             465      department begins a new service or introduces a new product between annual general sessions
             466      of the Legislature.
             467          (c) The committee may in accordance with Subsection 63J-1-410 (4) decrease a rate,
             468      fee, or amount that has been approved by the Legislature.
             469          Section 8. Section 67-19-12 is amended to read:
             470           67-19-12. State pay plans -- Applicability of section -- Exemptions -- Duties of
             471      the executive director.
             472          (1) (a) This section, and the rules adopted by the department to implement this section,
             473      apply to each career and noncareer employee not specifically exempted under Subsection (2).
             474          (b) If not exempted under Subsection (2), an employee is considered to be in classified
             475      service.
             476          (2) The following employees are exempt from this section:
             477          (a) members of the Legislature and legislative employees;


             478          (b) members of the judiciary and judicial employees;
             479          (c) elected members of the executive branch and [their direct staff who meet career
             480      service exempt criteria as defined in] employees under schedule AC as provided under
             481      Subsection 67-19-15 (1)[(k)](c);
             482          (d) employees of the State Board of Education who are licensed by the State Board of
             483      Education;
             484          (e) officers, faculty, and other employees of state institutions of higher education;
             485          (f) employees in [any] a position that is [determined] specified by statute to be exempt
             486      from this Subsection (2);
             487          (g) employees in the Office of the Attorney General;
             488          (h) department heads and other persons appointed by the governor [pursuant to] under
             489      statute;
             490          [(i) employees of the Department of Community and Culture whose positions are
             491      designated as executive/professional positions by the executive director of the Department of
             492      Community and Culture with the concurrence of the executive director;]
             493          [(j) employees of the Governor's Office of Economic Development whose positions are
             494      designated as executive/professional positions by the director of the office;]
             495          [(k)] (i) exempt employees [of the Medical Education Council] as provided under
             496      Subsection 67-19-15 (1)(l); [and]
             497          [(l)] (j) employees of the Utah Schools for the Deaf and the Blind who are:
             498          (i) educators as defined by Section 53A-25b-102 [who are employed by the Utah
             499      Schools for the Deaf and the Blind.]; or
             500          (ii) educational interpreters as classified by the department; and
             501          (k) temporary employees under schedule IN or TL as provided under Subsections
             502      67-19-15 (1)(o) and (p).
             503          (3) (a) The executive director shall prepare, maintain, and revise a position
             504      classification plan for each employee position not exempted under Subsection (2) to provide
             505      equal pay for equal work.


             506          (b) Classification of positions shall be based upon similarity of duties performed and
             507      responsibilities assumed, so that the same job requirements and the same salary range may be
             508      applied equitably to each position in the same class.
             509          (c) The executive director shall allocate or reallocate the position of each employee in
             510      classified service to one of the classes in the classification plan.
             511          (d) (i) The department shall conduct periodic studies and desk audits to provide that
             512      the classification plan remains reasonably current and reflects the duties and responsibilities
             513      assigned to and performed by employees.
             514          (ii) The executive director shall determine the schedule for studies and desk audits
             515      after considering factors such as changes in duties and responsibilities of positions or agency
             516      reorganizations.
             517          (4) (a) With the approval of the governor, the executive director shall develop and
             518      adopt pay plans for each position in classified service.
             519          (b) The executive director shall design each pay plan to achieve, to the degree that
             520      funds permit, comparability of state salary ranges to salary ranges used by private enterprise
             521      and other public employment for similar work.
             522          (c) The executive director shall adhere to the following in developing each pay plan:
             523          (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
             524      differential among the various classes of positions in the classification plan.
             525          (ii) (A) The executive director shall assign each class of positions in the classification
             526      plan to a salary range and shall set the width of the salary range to reflect the normal growth
             527      and productivity potential of employees in that class.
             528          (B) The width of the ranges need not be uniform for all classes of positions in the
             529      plan[, but each range shall contain merit steps in increments of 2.75% salary increases].
             530          (iii) (A) The executive director shall issue rules for the administration of pay plans.
             531          (B) The rules may provide for exceptional performance increases and for a program of
             532      incentive awards for cost-saving suggestions and other commendable acts of employees.
             533          (C) The executive director shall issue rules providing for salary adjustments.


             534          (iv) Merit [step] increases shall be granted, [if funds are available,] on a uniform and
             535      consistent basis in accordance with appropriations made by the Legislature, to employees who
             536      receive a rating of "successful" or higher in an annual evaluation of their productivity and
             537      performance.
             538          (v) By October 31 of each year, the executive director shall submit market
             539      comparability adjustments to the director of the Governor's Office of Planning and Budget for
             540      consideration to be included as part of the affected agency's base budgets.
             541          (vi) By October 31 of each year, the executive director shall recommend a
             542      compensation package to the governor.
             543          (vii) (A) Adjustments shall incorporate the results of a total compensation market
             544      survey of salary ranges and benefits of a reasonable cross section of comparable benchmark
             545      positions in private and public employment in the state.
             546          (B) The survey may also study comparable unusual positions requiring recruitment in
             547      other states.
             548          (C) The executive director may cooperate with other public and private employers in
             549      conducting the survey.
             550          (viii) (A) The executive director shall establish criteria to assure the adequacy and
             551      accuracy of the survey and shall use methods and techniques similar to and consistent with
             552      those used in private sector surveys.
             553          (B) Except as provided under [Section] Sections 67-19-12.1 and 67-19-12.3 , the
             554      survey shall include a reasonable cross section of employers.
             555          (C) The executive director may cooperate with or participate in any survey conducted
             556      by other public and private employers.
             557          (D) The executive director shall obtain information for the purpose of constructing the
             558      survey from the Division of Workforce Information and Payment Services and shall include
             559      employer name, number of persons employed by the employer, employer contact information
             560      and job titles, county code, and salary if available.
             561          (E) The department shall acquire and protect the needed records in compliance with


             562      the provisions of Section 35A-4-312 .
             563          (ix) The establishing of a salary range is a nondelegable activity and is not appealable
             564      under the grievance procedures of Sections 67-19-30 through 67-19-32 , [Title 67,] Chapter
             565      19a, Grievance [and Appeal] Procedures, or otherwise.
             566          (x) The governor shall:
             567          (A) consider salary adjustments recommended under Subsection (4)(c)(vi) in
             568      preparing the executive budget and shall recommend the method of distributing the
             569      adjustments;
             570          (B) submit compensation recommendations to the Legislature; and
             571          (C) support the recommendation with schedules indicating the cost to individual
             572      departments and the source of funds.
             573          (xi) If funding is approved by the Legislature in a general appropriations act, the
             574      adjustments take effect on the July 1 following the enactment.
             575          (5) (a) The executive director shall regularly evaluate the total compensation program
             576      of state employees in the classified service.
             577          (b) The department shall determine if employee benefits are comparable to those
             578      offered by other private and public employers using information from:
             579          (i) the most recent edition of the Employee Benefits Survey Data conducted by the
             580      U.S. Chamber of Commerce Research Center; or
             581          (ii) the most recent edition of a nationally recognized benefits survey.
             582          (6) (a) The executive director shall submit proposals for a state employee
             583      compensation plan to the governor by October 31 of each year, setting forth findings and
             584      recommendations affecting employee compensation.
             585          (b) The governor shall consider the executive director's proposals in preparing budget
             586      recommendations for the Legislature.
             587          (c) The governor's budget proposals to the Legislature shall include a specific
             588      recommendation on employee compensation.
             589          Section 9. Section 67-19-12.2 is amended to read:


             590           67-19-12.2. Education benefit plan for law enforcement and correctional
             591      officers.
             592          (1) As used in this section, "law enforcement officer" has the same meaning as in
             593      Section 53-13-103 and "correctional officer" has the same meaning as in Section 53-13-104 .
             594          (2) The executive director shall establish a plan authorizing any agency to implement
             595      an educational compensation program for law enforcement officers and correctional officers
             596      employed by that agency.
             597          (3) The program shall provide that in order for a law enforcement officer or
             598      correctional officer to qualify for education benefits for college or university education, the
             599      law enforcement officer or correctional officer shall:
             600          (a) provide a certified transcript of grades, demonstrating a grade point average of 3.0
             601      or greater, from an accredited college or university; and
             602          (b) have successfully completed the probationary employment period with the
             603      employing agency.
             604          (4) The program shall also provide that the agency may consider a law enforcement
             605      officer or correctional officer to receive additional compensation as follows for higher
             606      education degrees earned on or after April 30, 2001, in a subject area directly related to the
             607      law enforcement officer's or correctional officer's employment with the agency:
             608          (a) [two steps] 5.5% for an associate's degree;
             609          (b) [two steps] 5.5% for a bachelor's degree; and
             610          (c) [two steps] 5.5% for a master's degree.
             611          (5) Expenses incurred by an agency to provide additional compensation under this
             612      section may be only from the agency's existing budget.
             613          Section 10. Section 67-19-14 is amended to read:
             614           67-19-14. Sick leave -- Definitions -- Unused sick days retirement programs --
             615      Rulemaking.
             616          (1) As used in [Sections 67-19-14 ] this section through Section 67-19-14.4 :
             617          (a) "Continuing medical and life insurance benefits" means the state provided policy


             618      of medical insurance and the state provided portion of a policy of life insurance, each offered
             619      at the same:
             620          (i) benefit level and the same proportion of state/member participation in the total
             621      premium costs as an active member as defined in Section 49-11-102 ; and
             622          (ii) coverage level for a member, two person, or family policy as provided to the
             623      member at the time of retirement.
             624          (b) "Converted sick leave" means leave that has been converted from unused sick
             625      leave in accordance with Section 67-19-14.1 which may be used by an employee in the same
             626      manner as:
             627          (i) annual leave;
             628          (ii) sick leave; or
             629          (iii) unused accumulated sick leave after the employee's retirement for the purchase of
             630      continuing medical and life insurance benefits under Sections 67-19-14.2 , 67-19-14.3 , and
             631      67-19-14.4 .
             632          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             633      the executive director shall make rules for the procedures to implement the provisions of
             634      [Sections 67-19-14 ] this section through Section 67-19-14.4 .
             635          [(3) For purposes of Sections 67-19-14 through 67-19-14.4 the most recently earned
             636      converted sick leave or sick leave hours shall be used first when an employee uses converted
             637      sick leave or sick leave hours.]
             638          [(4)] (3) The Division of Finance shall develop and maintain a system of accounting
             639      for employee sick leave and converted sick leave as necessary to implement the provisions of
             640      [Sections 67-19-14 ] this section through Section 67-19-14.4 .
             641          Section 11. Section 67-19-14.2 is amended to read:
             642           67-19-14.2. Unused Sick Leave Retirement Option Program -- Creation --
             643      Payout upon eligibility for allowance -- Continuing medical and life insurance benefits
             644      after retirement.
             645          (1) (a) There is created the "Unused Sick Leave Retirement Option Program I."


             646          (b) An agency may offer the Unused Sick Leave Retirement Option Program I to an
             647      employee who is eligible to receive a retirement allowance in accordance with Title 49, Utah
             648      State Retirement and Insurance Benefit Act.
             649          (2) The Unused Sick Leave Retirement Option Program I provides that upon
             650      becoming eligible to receive a retirement allowance an employee who was employed by the
             651      state prior to January 1, 2006:
             652          (a) receives a contribution under Subsection (3) for 25% of the employee's unused
             653      accumulated sick leave accrued prior to January 1, 2006, at the employee's rate of pay at the
             654      time of retirement;
             655          (b) receives continuing medical and life insurance benefits until the earlier of:
             656          (i) the date the employee reaches the age eligible for Medicare; or
             657          (ii) up to the following number of years:
             658          (A) five years if the employee retires during calendar year 2006;
             659          (B) four years if the employee retires during calendar year 2007;
             660          (C) three years if the employee retires during calendar year 2008;
             661          (D) two years if the employee retires during calendar year 2009;
             662          (E) one year if the employee retires during calendar year 2010; or
             663          (F) zero years if the employee retires after calendar year 2010; and
             664          (c) may purchase additional continuing medical and life insurance benefits in
             665      accordance with Subsection (4).
             666          (3) (a) Subject to federal requirements and limitations, the contribution under
             667      Subsection (2)(a) shall be transferred directly to the employee's defined contribution plan
             668      qualified under Section 401(k) of the Internal Revenue Code which is sponsored by the Utah
             669      State Retirement Board.
             670          (b) If the amount calculated under Subsection (2)(a) exceeds the federal contribution
             671      limitations, the employee's unused accumulated sick leave hours representing the excess shall
             672      be used for the purchase of continuing medical and life insurance benefits under Subsection
             673      (4).


             674          (4) (a) An employee may purchase continuing medical and life insurance benefits, at
             675      the rate of one month's coverage per policy for eight hours of unused sick leave remaining
             676      after:
             677          (i) the contribution of unused sick leave under Subsection (2)(a); and
             678          (ii) an additional reduction, at the time of retirement, of unused sick leave hours as
             679      follows:
             680          (A) 480 hours if the employee retires during calendar year 2006;
             681          (B) 384 hours if the employee retires during calendar year 2007;
             682          (C) 288 hours if the employee retires during calendar year 2008;
             683          (D) 192 hours if the employee retires during calendar year 2009;
             684          (E) 96 hours if the employee retires during calendar year 2010; or
             685          (F) 0 hours if the employee retires after calendar year 2010.
             686          (b) The medical coverage level for member, two person, or family coverage that is
             687      provided to the member at the time of retirement is the maximum coverage level available to
             688      the member under this program.
             689          (c) The purchase of continuing medical and life insurance benefits at the rate provided
             690      under Subsection (4)(a) may be used by the employee to extend coverage:
             691          (i) beyond the number of years provided under Subsection (2) until the employee
             692      reaches the age of eligibility for Medicare; or
             693          (ii) if the employee has reached the age of eligibility for Medicare, continuing medical
             694      benefits for the employee's spouse may be purchased until the employee's spouse reaches the
             695      age of eligibility for Medicare.
             696          (d) An employee and the employee's spouse who are or who later become eligible for
             697      Medicare may purchase Medicare supplemental insurance at the rate of one month's coverage
             698      for eight hours of the employee's unused sick leave per person.
             699          (5) (a) The continuing medical and life insurance benefits received under Subsection
             700      (2)(b) or purchased by an employee under Subsection (4):
             701          (i) may not be suspended or deferred for future use; and


             702          (ii) continues in effect until exhausted.
             703          (b) An employer participating in the Program I benefits under this section may not
             704      provide medical or life insurance benefits to a person who is:
             705          (i) reemployeed after retirement; and
             706          (ii) receiving benefits under this section.
             707          Section 12. Section 67-19-15 is amended to read:
             708           67-19-15. Career service -- Exempt positions -- Schedules for civil service
             709      positions -- Coverage of career service provisions.
             710          (1) Except as otherwise provided by law or by rules and regulations established for
             711      federally aided programs, the following positions are exempt from the career service
             712      provisions of this chapter and are designated under the following schedules:
             713          (a) schedule AA includes the governor, members of the Legislature, and all other
             714      elected state officers[, designated as Schedule AA];
             715          (b) schedule AB includes appointed executives and board or commission executives
             716      enumerated in Section 67-22-2 [, and commissioners designated as Schedule AB];
             717          (c) schedule AC includes all employees and officers in:
             718          (i) the office and at the residence of the governor[, designated as Schedule AC];
             719          (ii) the Utah Science Technology and Research Initiative (USTAR);
             720          (iii) the Public Lands Policy Coordinating Council;
             721          (iv) the Office of the State Auditor; and
             722          (v) the Office of the State Treasurer;
             723          (d) schedule AD includes employees who:
             724          (i) are in a confidential relationship to an agency head or commissioner; and [who]
             725          (ii) report directly to, and are supervised by, a department head, commissioner, or
             726      deputy director of an agency or its equivalent[, designated as Schedule AD];
             727          [(e) unskilled employees in positions requiring little or no specialized skill or training,
             728      designated as Schedule AE;]
             729          [(f) part-time professional noncareer persons who are paid for any form of medical and


             730      other professional service and who are not engaged in the performance of administrative
             731      duties, designated as Schedule AF;]
             732          [(g)] (e) schedule AG includes employees in the Office of the Attorney General who
             733      are under their own career service pay plan under Sections 67-5-7 through 67-5-13 [,
             734      designated as Schedule AG];
             735          [(h)] (f) schedule AH includes:
             736          (i) teaching staff of all state institutions[, including]; and
             737          (ii) employees of the Utah Schools for the Deaf and the Blind who are:
             738          (A) educational interpreters as classified by the department; or
             739          (B) educators as defined by Section 53A-25b-102 [who are employed by the Utah
             740      Schools for the Deaf and the Blind, designated as Schedule AH];
             741          [(i) persons appointed to a position vacated by an employee who has a right to return
             742      under federal or state law or policy, designated as Schedule AI;]
             743          [(j) noncareer employees compensated for their services on a seasonal or contractual
             744      basis who are hired for limited periods of less than nine consecutive months or who are
             745      employed on less than 1/2 time basis, designated as Schedule AJ;]
             746          [(k) those employees in a personal and confidential relationship to elected officials,
             747      designated as Schedule AK;]
             748          [(l) employees appointed to perform work of a limited duration not exceeding two
             749      years or to perform work with time-limited funding, designated as Schedule AL;]
             750          [(m) employees of the Department of Community and Culture whose positions are
             751      designated as executive/professional positions by the executive director of the Department of
             752      Community and Culture with the concurrence of the executive director, and employees of the
             753      Governor's Office of Economic Development whose positions are designated as
             754      executive/professional positions by the director of the office, designated as Schedule AM;]
             755          [(n)] (g) schedule AN includes employees of the Legislature[, designated as Schedule
             756      AN];
             757          [(o)] (h) schedule AO includes employees of the judiciary[, designated as Schedule


             758      AO];
             759          [(p)] (i) schedule AP includes all judges in the judiciary[, designated as Schedule AP];
             760          [(q)] (j) schedule AQ includes:
             761          (i) members of state and local boards and councils appointed by the governor and
             762      governing bodies of agencies[,];
             763          (ii) other local officials serving in an ex officio capacity[,]; and
             764          (iii) officers, faculty, and other employees of state universities and other state
             765      institutions of higher education[, designated as Schedule AQ];
             766          [(r)] (k) schedule AR includes employees [who make statewide policy, designated as
             767      Schedule AR;] in positions which involve responsibility:
             768          (i) for determining policy;
             769          (ii) for determining the way in which a policy is carried out; or
             770          (iii) of a type not appropriate for career service, as determined by the agency head with
             771      the concurrence of the executive director;
             772          [(s)] (l) schedule AS includes any other employee:
             773          (i) whose appointment is required by statute to be career service exempt[, designated
             774      as Schedule AS];
             775          (ii) whose agency is not subject to this chapter; or
             776          (iii) whose agency has authority to make rules regarding the performance,
             777      compensation, and bonuses for its employees;
             778          [(t)] (m) schedule AT includes employees of the Department of Technology Services,
             779      designated as executive/professional positions by the executive director of the Department of
             780      Technology Services with the concurrence of the executive director[, designated as Schedule
             781      AT]; [and]
             782          [(u)] (n) schedule AU includes patients and inmates employed in state institutions[,
             783      designated as Schedule AU.];
             784          (o) schedule IN includes employees who are:
             785          (i) hired to work part time on an indefinite basis; and


             786          (ii) considered to be temporary noncareer employees; and
             787          (p) schedule TL includes employees who are:
             788          (i) hired to work on a time-limited basis; and
             789          (ii) considered to be temporary noncareer employees.
             790          (2) The civil service shall consist of two schedules as follows:
             791          (a) (i) Schedule A is the schedule consisting of positions [exempted by] under
             792      Subsection (1).
             793          (ii) Removal from any appointive position under schedule A, unless otherwise
             794      regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
             795          (b) Schedule B is the competitive career service schedule, consisting of all positions
             796      filled through competitive selection procedures as defined by the executive director.
             797          (3) (a) The executive director, after consultation with the heads of concerned executive
             798      branch departments and agencies and with the approval of the governor, shall allocate
             799      positions to the appropriate schedules under this section.
             800          (b) Agency heads shall make requests and obtain approval from the executive director
             801      before changing the schedule assignment and tenure rights of any position.
             802          (c) Unless the executive director's decision is reversed by the governor, when the
             803      executive director denies an agency's request, the executive director's decision is final.
             804          (4) (a) Compensation for employees of the Legislature shall be established by the
             805      directors of the legislative offices in accordance with Section 36-12-7 .
             806          (b) Compensation for employees of the judiciary shall be established by the state court
             807      administrator in accordance with Section 78A-2-107 .
             808          (c) Compensation for officers, faculty, and other employees of state universities and
             809      institutions of higher education shall be established as provided in Title 53B, Chapters 1,
             810      Governance, Powers, Rights, and Responsibilities, and 2, Institutions of Higher Education.
             811          (d) Unless otherwise provided by law, compensation for all other schedule A
             812      employees shall be established by their appointing authorities, within ranges approved by, and
             813      after consultation with the executive director of the Department of Human Resource


             814      Management.
             815          [(5) All employees of the Office of State Auditor, the Office of State Treasurer, and
             816      employees who are not exempt under this section are covered by the career service provisions
             817      of this chapter.]
             818          (5) An employee who is in a position designated schedule AC and who holds career
             819      service status on June 30, 2010, shall retain the career service status if the employee:
             820          (a) remains in the position that the employee is in on June 30, 2010; and
             821          (b) does not elect to convert to career service exempt status in accordance with a rule
             822      made by the department.
             823          Section 13. Section 67-19-15.6 is amended to read:
             824           67-19-15.6. Longevity salary increases.
             825          (1) Except for those employees [subject to the Executive and Judicial Compensation
             826      Commission or Citizen's Salary Commission, any] in schedule AB, IN, or TL as provided
             827      under Section 67-19-15, an employee shall receive an increase in salary of 2.75% if that
             828      employee:
             829          (a) holds a position under schedule A or B as [defined in] provided under Section
             830      67-19-15 ;
             831          (b) has reached the [final step in] maximum of the salary range in the position
             832      classification;
             833          (c) has been employed with the state for eight years; and
             834          (d) is rated eligible in job performance under guidelines established by the executive
             835      director.
             836          (2) Any employee who meets the criteria [defined in] under Subsection (1) is entitled
             837      to the same increase in salary for each additional three years of employment [so long as] if the
             838      employee maintains the eligibility standards established by the department.
             839          Section 14. Section 67-19-15.7 is amended to read:
             840           67-19-15.7. Promotion -- Reclassification -- Market adjustment.
             841          (1) (a) [Each employee who] If an employee is promoted or [whose] the employee's


             842      position is reclassified to [the next higher salary range shall be placed at the merit step within
             843      the new range corresponding to a salary increase of between 2.75% and 11%] a higher salary
             844      range maximum, the agency shall place the employee within the new range of the position.
             845          (b) [The employee] An agency may not [be placed] set an employee's salary:
             846          (i) higher than the [highest merit step] maximum in the new salary range; and
             847          (ii) lower than the minimum in the new salary range of the position.
             848          (c) Except for an employee under schedule IN or TL under Section 67-19-15 , the
             849      agency shall grant a salary increase of at least 5% to an employee who is promoted.
             850          [(2) (a) Each employee who is promoted or whose position is reclassified to a salary
             851      range higher than the next higher range shall be placed at the merit step within the new range
             852      corresponding to a salary increase of between 5.5% and 11%.]
             853          [(b) The employee may not be placed lower than the lowest merit step in the new
             854      salary range.]
             855          [(3) (a) Each] (2) An agency shall adjust the salary range for an employee whose
             856      salary range is approved by the Legislature for a [selective salary] market comparability
             857      adjustment consistent with Subsection 67-19-12 (4)(c)[(viii)](v) [shall be adjusted to the new
             858      range]:
             859          (a) at the beginning of the next fiscal year[.]; and
             860          (b) [Employees shall be placed at the step value on the new range] consistent with [the
             861      appropriation authorized] appropriations made by the Legislature.
             862          [(4) (a)] (3) Department-initiated revisions in the state classification system that result
             863      in consolidation or reduction of class titles or broadening of pay ranges:
             864          (a) may not be regarded as a reclassification of the position or promotion of the
             865      employee[.]; and
             866          (b) are exempt from the provisions of Subsection (1).
             867          [(b) These revisions are exempt from the provisions of Subsections (1) and (2).]
             868          Section 15. Section 67-19-16 is amended to read:
             869           67-19-16. Appointments to schedule B positions -- Examinations -- Hiring lists --


             870      Probationary service -- Dismissal.
             871          (1) Each appointment to a position under schedule B shall be made from hiring lists of
             872      applicants who have been selected by competitive procedures as defined by the executive
             873      director.
             874          (2) The executive director shall publicly announce information regarding career
             875      service positions:
             876          (a) for periods of time to be determined by the executive director; and
             877          (b) in a manner designed to attract the highest number of qualified applicants.
             878          (3) The executive director shall make rules establishing standards for the development,
             879      approval, and implementation of examining instruments.
             880          (4) Applicants for employment to schedule B positions shall be eligible for
             881      appointment based upon rules established by the executive director.
             882          (5) (a) The agency head shall make appointments to fill vacancies from hiring lists for
             883      probationary periods as defined by rule.
             884          (b) The executive director shall make rules establishing probationary periods.
             885          (6) A person serving a probationary period may not use the grievance procedures
             886      provided in this chapter and in [Title 67,] Chapter 19a, Grievance [and Appeal] Procedures,
             887      and may be dismissed at any time by the appointing officer without hearing or appeal.
             888          (7) Career service status shall be granted upon the successful completion of the
             889      probationary period.
             890          Section 16. Section 67-19-18 is amended to read:
             891           67-19-18. Dismissals and demotions -- Grounds -- Disciplinary action --
             892      Procedure -- Reductions in force.
             893          (1) A career service employee may be dismissed or demoted:
             894          (a) to advance the good of the public service; or
             895          (b) for just causes, including inefficiency, incompetency, failure to maintain skills or
             896      adequate performance levels, insubordination, disloyalty to the orders of a superior,
             897      misfeasance, malfeasance, or nonfeasance in office.


             898          (2) An employee may not be dismissed because of race, sex, age, disability, national
             899      origin, religion, political affiliation, or other nonmerit factor including the exercise of rights
             900      under this chapter.
             901          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             902      the executive director shall establish rules governing the procedural and documentary
             903      requirements of disciplinary dismissals and demotions.
             904          (4) If an agency head finds that a career service employee is charged with aggravated
             905      misconduct or that retention of a career service employee would endanger the peace and safety
             906      of others or pose a grave threat to the public interest, the employee may be suspended pending
             907      the administrative appeal to the department head as provided in Subsection (5).
             908          (5) (a) A career service employee may not be demoted or dismissed unless the
             909      department head or designated representative has complied with this subsection.
             910          (b) The department head or designated representative notifies the employee in writing
             911      of the reasons for the dismissal or demotion.
             912          (c) The employee has no less than five working days to reply and have the reply
             913      considered by the department head.
             914          (d) The employee has an opportunity to be heard by the department head or designated
             915      representative.
             916          (e) Following the hearing, the employee may be dismissed or demoted if the
             917      department head finds adequate cause or reason.
             918          (6) (a) Reductions in force required by inadequate funds, change of workload, or lack
             919      of work are governed by retention points established by the executive director.
             920          (b) Under those circumstances:
             921          (i) The agency head shall designate the category of work to be eliminated, subject to
             922      review by the executive director.
             923          (ii) Temporary and probationary employees shall be separated before any career
             924      service employee.
             925          (iii) (A) [Career service] When more than one career service employee is affected, the


             926      employees shall be separated in the order of their retention points, the employee with the
             927      lowest points to be discharged first.
             928          (B) Retention points for each career service employee shall be computed according to
             929      rules established by the executive director, allowing appropriate consideration for proficiency
             930      and seniority in state government, including any active duty military service fulfilled
             931      subsequent to original state appointment.
             932          (c) (i) A career service employee who is separated in a reduction in force under this
             933      section shall be given preferential consideration when applying for a career service position.
             934          (ii) Preferential consideration under Subsection (6)(c)(i) applies only until the former
             935      career service employee accepts a career service position.
             936          (iii) The executive director shall make rules in accordance with Title 63G, Chapter 3,
             937      Utah Administrative Rulemaking Act, concerning the manner of granting preferential
             938      consideration under Subsection (6)(c)(i).
             939          (d) (i) An employee separated due to a reduction in force may appeal to the
             940      department head for an administrative review.
             941          (ii) The notice of appeal must be submitted within 20 working days after the
             942      employee's receipt of written notification of separation.
             943          (iii) The employee may appeal the decision of the department head according to the
             944      grievance and appeals procedure of this [act] chapter and Chapter 19a, Grievance Procedures.
             945          Section 17. Section 67-19-30 is amended to read:
             946           67-19-30. Grievance resolution -- Jurisdiction.
             947          (1) Employees shall comply with the procedural and jurisdictional requirements of this
             948      section, Title 63G, Chapter 4, Administrative Procedures Act, and [Title 67,] Chapter 19a,
             949      Grievance [and Appeal] Procedures, in seeking resolution of grievances.
             950          (2) All grievances based upon a claim or charge of injustice or oppression, including
             951      dismissal from employment, resulting from an act, occurrence, commission, or condition shall
             952      be governed by [Title 67,] Chapter 19a, Grievance [and Appeal] Procedures, and Title 63G,
             953      Chapter 4, Administrative Procedures Act.


             954          (3) All grievances involving classification shall be governed by Section 67-19-31 and
             955      are designated as informal adjudicative proceedings as defined by Title 63G, Chapter 4,
             956      Administrative Procedures Act.
             957          (4) All grievances by applicants for positions in state government involving an alleged
             958      discriminatory or prohibited employment practice shall be governed by Section 67-19-32 and
             959      Title 63G, Chapter 4, Administrative Procedures Act.
             960          (5) A "grievance" under this chapter is a request for agency action for purposes of
             961      Title 63G, Chapter 4, Administrative Procedures Act.
             962          Section 18. Section 67-19a-101 is amended to read:
             963     
CHAPTER 19a. GRIEVANCE PROCEDURES

             964           67-19a-101. Definitions.
             965          As used in this chapter:
             966          (1) "Administrator" means the person [employed by the board to assist in
             967      administering personnel policies] appointed under Section 67-19a-201 to head the Career
             968      Service Review Office.
             969          [(2) "Board" means the Career Service Review Board created by this chapter.]
             970          [(3)] (2) "Career service employee" means a person employed in career service as
             971      defined in Section 67-19-3 .
             972          [(4)] (3) "Employer" means the state of Utah and all supervisory personnel vested with
             973      the authority to implement and administer the policies of [the department] an agency.
             974          [(5)] (4) "Grievance" means:
             975          (a) a complaint by a career service employee concerning any matter touching upon the
             976      relationship between the employee and [his] the employer; and
             977          (b) any dispute between a career service employee and [his] the employer.
             978          (5) "Office" means the Career Service Review Office created under Section
             979      67-19a-201 .
             980          (6) "Supervisor" means the person:
             981          (a) to whom an employee reports [and]; or


             982          (b) who assigns and oversees [the] an employee's work.
             983          Section 19. Section 67-19a-101.5 is enacted to read:
             984          67-19a-101.5. Transition.
             985          (1) The board that is repealed by this bill on July 1, 2010, shall:
             986          (a) continue to exist until June 30, 2011, with the same membership, duties, and
             987      procedures only for the purpose of addressing a grievance submitted to the employee's
             988      supervisor on or before June 30, 2010; and
             989          (b) apply the law in effect on June 30, 2010 to a grievance described in Subsection
             990      (1)(a).
             991          (2) The amendments to this chapter made by this bill apply only to a grievance
             992      submitted to the employee's supervisor on or after July 1, 2010.
             993          Section 20. Section 67-19a-201 is amended to read:
             994     
Part 2. Career Service Review Office

             995           67-19a-201. Career Service Review Office created -- Appointment of an
             996      administrator -- Reporting -- Qualifications.
             997          (1) There is created a Career Service Review [Board] Office.
             998          (2) (a) The governor shall appoint [five members to the board no more than three of
             999      which are members of the same political party], with the consent of the Senate, an
             1000      administrator of the office.
             1001          [(b) The governor shall appoint members whose gender and ethnicity represent the
             1002      career service work force.]
             1003          (b) The administrator shall have demonstrated an ability to administer personnel
             1004      policies in performing the duties specified in this chapter.
             1005          [(3) (a) The governor may remove any board member for cause.]
             1006          [(b) When a vacancy occurs in the membership for any reason, the replacement shall
             1007      be appointed for the unexpired term.]
             1008          [(4) The governor shall ensure that appointees to the board:]
             1009          [(a) are qualified by knowledge of employee relations and merit system principles in


             1010      public employment; and]
             1011          [(b) are not:]
             1012          [(i) members of any local, state, or national committee of a political party;]
             1013          [(ii) officers or members of a committee in any partisan political club; and]
             1014          [(iii) holding or a candidate for a paid public office.]
             1015          [(5) (a) Except as required by Subsection (b), the governor shall appoint board
             1016      members to serve four-year terms beginning January 1.]
             1017          [(b) Notwithstanding the requirements of Subsection (a), the governor shall, at the
             1018      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1019      board members are staggered so that approximately half of the board is appointed every two
             1020      years.]
             1021          [(c) The members of the board shall serve until their successors are appointed and
             1022      qualified.]
             1023          [(6) Each year, the board shall choose a chair and vice chair from its own members.]
             1024          [(7) (a) Three members of the board are a quorum for the transaction of business.]
             1025          [(b) Action by a majority of members when a quorum is present is action of the
             1026      board.]
             1027          [(8) (a) Members shall receive no compensation or benefits for their services, but may
             1028      receive per diem and expenses incurred in the performance of the member's official duties at
             1029      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .]
             1030          [(b) Members may decline to receive per diem and expenses for their service.]
             1031          Section 21. Section 67-19a-202 is repealed and reenacted to read:
             1032          67-19a-202. Powers -- Scope of Authority.
             1033          (1) (a) The office shall serve as the final administrative body to review a grievance
             1034      from a career service employee and agency of decision regarding:
             1035          (i) a dismissal;
             1036          (ii) a demotion;
             1037          (iii) a suspension;


             1038          (iv) a reduction in force;
             1039          (v) a dispute concerning abandonment of position;
             1040          (vi) a wage grievance if an employee is not placed within the salary range of the
             1041      employee's current position;
             1042          (vii) a violation of a rule adopted under Chapter 19, Utah State Personnel
             1043      Management Act; or
             1044          (viii) except as provided by Subsection (1)(b)(iii), equitable administration of the
             1045      following benefits:
             1046          (A) long-term disability insurance;
             1047          (B) medical insurance;
             1048          (C) dental insurance;
             1049          (D) post-retirement health insurance;
             1050          (E) post-retirement life insurance;
             1051          (F) life insurance;
             1052          (G) defined contribution retirement;
             1053          (H) defined benefit retirement; and
             1054          (I) a leave benefit.
             1055          (b) The office may not review or take action on:
             1056          (i) a personnel matter not listed in Subsection (1)(a);
             1057          (ii) a grievance listed in Subsection (1)(a) that alleges discrimination or retaliation
             1058      related to a claim of discrimination that is a violation of a state or federal law for which review
             1059      and action by the office is preempted by state or federal law; or
             1060          (iii) a grievance related to a claim for which an administrative review process is
             1061      provided by statute and administered by:
             1062          (A) the Utah State Retirement Systems under Title 49, Utah State Retirement and
             1063      Insurance Benefit Act;
             1064          (B) the Public Employees' Benefit and Insurance Program under Title 49, Chapter 20,
             1065      Public Employees' Benefit and Insurance Program Act; or


             1066          (C) the Public Employees' Long-Term Disability Program under Title 49, Chapter 21,
             1067      Public Employees' Long-Term Disability Act.
             1068          (2) The time limits established in this chapter supersede the procedural time limits
             1069      established in Title 63G, Chapter 4, Administrative Procedures Act.
             1070          Section 22. Section 67-19a-203 is amended to read:
             1071           67-19a-203. Rulemaking authority.
             1072          [The board] (1) In accordance with Title 63G, Chapter 3, Utah Administrative
             1073      Rulemaking Act, the administrator may make rules governing:
             1074          [(1)] (a) definitions of terms, phrases, and words used in the grievance process
             1075      established by this chapter;
             1076          [(2)] (b) what matters constitute excusable neglect for purposes of the waiver of time
             1077      limits established by this chapter;
             1078          [(3)] (c) the application for and service of subpoenas, the service and filing of
             1079      pleadings, and the issuance of rulings, orders, determinations, summary judgments,
             1080      transcripts, and other legal documents necessary in grievance proceedings;
             1081          [(4)] (d) the use, calling, attendance, participation, and fees of witnesses in grievance
             1082      proceedings;
             1083          [(5)] (e) continuances of grievance proceedings;
             1084          [(6)] (f) procedures in [jurisdictional and evidentiary] hearings, unless governed by
             1085      Title 63G, Chapter 4, Administrative Procedures Act;
             1086          [(7)] (g) the presence of media representatives at grievance proceedings; [and]
             1087          [(8)] (h) procedures for sealing files or making data pertaining to a grievance
             1088      unavailable to the public[.]; and
             1089          (i) motions that will assist the parties in meeting the 150-day time limit.
             1090          (2) The rule made under Subsection (1)(i) shall:
             1091          (a) prohibit a party from filing a dispositive motion under Utah Rules of Civil
             1092      Procedure, Rule 12(b)(6) or Rule 56 before an evidentiary hearing; and
             1093          (b) authorize a party to file a motion before an evidentiary hearing to:


             1094          (i) dismiss for lack of authority to review the grievance under Utah Rules of Civil
             1095      Procedure, Rule 12(b)(1) or Rule 12(b)(2); or
             1096          (ii) limit the introduction of evidence.
             1097          Section 23. Section 67-19a-204 is amended to read:
             1098           67-19a-204. Administrator -- Powers.
             1099          [(1) The governor shall appoint a person with demonstrated ability to administer
             1100      personnel policies to assist the board in performing the functions specified in this chapter.]
             1101          (1) In conjunction with any inquiry, investigation, hearing, or other proceeding, the
             1102      administrator may:
             1103          (a) administer an oath;
             1104          (b) certify an official act;
             1105          (c) subpoena a witness, document, and other evidence; and
             1106          (d) grant a continuance as provided by rule.
             1107          (2) (a) The administrator may:
             1108          (i) assign qualified, impartial hearing officers on a per case basis to adjudicate matters
             1109      under the [jurisdiction] authority of the [board] office;
             1110          (ii) subpoena witnesses, documents, and other evidence in conjunction with any
             1111      inquiry, investigation, hearing, or other proceeding; and
             1112          (iii) upon motion made by a party or person to whom the subpoena is directed and
             1113      upon notice to the party who issued the subpoena, quash or modify the subpoena if it is
             1114      unreasonable, requires an excessive number of witnesses, or requests evidence not relevant to
             1115      any matter in issue.
             1116          (b) In selecting and assigning hearing officers under authority of this section, the
             1117      administrator shall appoint hearing officers that have demonstrated by education, training, and
             1118      experience the ability to adjudicate and resolve personnel administration disputes by applying
             1119      employee relations principles within a large, public work force.
             1120          Section 24. Section 67-19a-301 is amended to read:
             1121     
Part 3. Grievance Procedures


             1122           67-19a-301. Charges submissible under grievance procedure.
             1123          (1) This grievance procedure may only be used by career service employees who are
             1124      not:
             1125          (a) public applicants for a position with the state's work force;
             1126          (b) public employees of the state's political subdivisions;
             1127          (c) public employees covered by other grievance procedures; or
             1128          (d) employees of state institutions of higher education.
             1129          (2) (a) Whenever a question or dispute exists as to whether an employee is qualified to
             1130      use this grievance procedure, the administrator shall resolve the question or dispute.
             1131          (b) The administrator's decision under Subsection (2)(a) is reviewable only by the
             1132      Court of Appeals.
             1133          (3) Any career service employee may submit a grievance based upon a claim or charge
             1134      of injustice or oppression, including dismissal from employment, resulting from an act,
             1135      occurrence, omission, or condition for solution through the grievance procedures set forth in
             1136      this chapter.
             1137          Section 25. Section 67-19a-302 is amended to read:
             1138           67-19a-302. Levels of procedure.
             1139          (1) A career service employee may grieve [promotions, dismissals, demotions,
             1140      suspensions, written reprimands, wages, salary, violations of personnel rules, issues
             1141      concerning the equitable administration of benefits, reductions in force, and disputes
             1142      concerning abandonment of position to all levels of grievance procedure] the issues specified
             1143      under Subsection 67-19a-202 (1)(a) to all levels of the grievance procedure described in
             1144      Section 67-19a-402 .
             1145          (2) (a) A career service employee may grieve all other matters only to the level of [his]
             1146      the department head.
             1147          (b) The decision of the department head on a matter under Subsection (2)(a) is final
             1148      and [unappealable to the board] may not be advanced to the office.
             1149          Section 26. Section 67-19a-303 is amended to read:


             1150           67-19a-303. Employees' rights in grievance procedure.
             1151          (1) For the purpose of [processing] submitting and advancing a grievance, a career
             1152      service employee may:
             1153          (a) obtain assistance by a representative of the employee's choice to act as an advocate
             1154      at any level of the grievance procedure;
             1155          (b) request a reasonable amount of time during work hours to confer with the
             1156      representative and prepare the grievance; and
             1157          (c) call other employees as witnesses at a grievance hearing.
             1158          (2) The state shall allow employees to attend and testify at the grievance hearing as
             1159      witnesses if the employee has given reasonable advance notice to the employee's immediate
             1160      supervisor.
             1161          (3) No person may take any reprisals against any career service employee for use of
             1162      grievance procedures specified in this chapter.
             1163          (4) (a) The employing agency of an employee who files a grievance may not place
             1164      grievance forms, grievance materials, correspondence about the grievance, agency and
             1165      department replies to the grievance, or other documents relating to the grievance in the
             1166      employee's personnel file.
             1167          (b) The employing agency of an employee who files a grievance may place records of
             1168      disciplinary action in the employee's personnel file.
             1169          (c) If any disciplinary action against an employee is rescinded through the grievance
             1170      procedures established in this chapter, the agency and the Department of Human Resource
             1171      Management shall remove the record of the disciplinary action from the employee's agency
             1172      personnel file and central personnel file.
             1173          (d) An agency may maintain a separate grievance file relating to an employee's
             1174      grievance, but shall discard the file after three years.
             1175          Section 27. Section 67-19a-401 is amended to read:
             1176           67-19a-401. Time limits for submission and advancement of grievance by
             1177      aggrieved employee -- Voluntary termination of employment -- Group grievances.


             1178          (1) Subject to the [standing requirements contained in] provisions of Part 3, Grievance
             1179      Procedures, and the restrictions contained in this part, a career service employee may have a
             1180      grievance addressed by following the procedures specified in this part.
             1181          (2) The employee and the person to whom the grievance is directed may agree in
             1182      writing to waive or extend grievance steps [2, 3, or 4] specified under Subsection
             1183      67-19a-402 (1), (2), or (3) or the time limits specified for those grievance steps, as outlined in
             1184      Section 67-19a-402 .
             1185          (3) Any writing made [pursuant to] under Subsection (2) [must] shall be submitted to
             1186      the administrator.
             1187          (4) [(a) Unless the employee meets the requirements for excusable neglect established
             1188      by rule, if] Except as provided under Subsection (6), if the employee fails to [process]
             1189      advance the grievance to the next procedural step within the time limits established in this
             1190      part[, he has waived his]:
             1191          (a) the employee waives the right to [process] advance the grievance or to obtain
             1192      judicial review of the grievance[.]; and
             1193          [(b) Unless the employee meets the requirements for excusable neglect established by
             1194      rule, if the employee fails to process the grievance to the next step within the time limits
             1195      established in this part,]
             1196          (b) the grievance is considered to be settled based on the decision made at the last
             1197      procedural step.
             1198          (5) (a) [Unless the employee meets the requirements for excusable neglect established
             1199      by rule, an] An employee may submit a grievance for review under this chapter only if the
             1200      employee submits the grievance:
             1201          (i) within 20 working days after the event giving rise to the grievance; or
             1202          (ii) within 20 working days after the employee has knowledge of the event giving rise
             1203      to the grievance.
             1204          (b) Notwithstanding Subsection (5)(a), an employee may not submit a grievance more
             1205      than one year after the event giving rise to the grievance.


             1206          (6) The provisions of Subsections (4) and (5)(a) do not apply if the employee meets
             1207      the requirements for excusable neglect established by rule.
             1208          [(6)] (7) A person who has voluntarily terminated [his] the person's employment with
             1209      the state may not submit a grievance after [he] the person has terminated [his] the
             1210      employment.
             1211          [(7)] (8) (a) [When] If several employees allege the same grievance, [they] the
             1212      employees may submit a group grievance by following the procedures and requirements of this
             1213      chapter.
             1214          (b) In submitting a group grievance, each aggrieved employee shall sign the
             1215      [complaint] grievance.
             1216          (c) The administrator [and board] may not treat a group grievance as a class action,
             1217      but may select one aggrieved employee's grievance and address that grievance as a test case.
             1218          Section 28. Section 67-19a-402 is amended to read:
             1219           67-19a-402. Procedural steps to be followed by aggrieved employee.
             1220          (1) (a) A career service employee who [believes he has a grievance shall attempt to
             1221      resolve the grievance through discussion with his] has a grievance shall submit the grievance
             1222      in writing to:
             1223          (i) the employee's supervisor; and
             1224          (ii) the administrator.
             1225          (b) Within five working days after [the employee discusses the grievance with him]
             1226      receiving a written grievance, the employee's supervisor may issue a [verbal] written decision
             1227      on the grievance.
             1228          (2) (a) If [the grievance remains unanswered for five working days after its
             1229      submission,] the employee's supervisor fails to respond to the grievance within five working
             1230      days or if the aggrieved employee is dissatisfied with the supervisor's [verbal] written decision,
             1231      the employee may [resubmit] advance the written grievance [in writing] to [his immediate
             1232      supervisor within five] the employee's agency or division director within 10 working days after
             1233      the expiration of the period for response or receipt of the written decision, whichever is first.


             1234          (b) Within five working days after receiving the written grievance, the employee's
             1235      [written grievance is submitted, the employee's supervisor shall] agency or division director
             1236      may issue a written response to the grievance stating [his] the decision and the reasons for the
             1237      decision.
             1238          [(c) Immediately after submitting the written grievance to his supervisor, the employee
             1239      shall notify the administrator of the board that he has submitted the written grievance.]
             1240          [(3) (a) If the written grievance submitted to the employee's supervisor remains
             1241      unanswered for five working days after its submission, or if the aggrieved employee is
             1242      dissatisfied with the decision issued, the employee may submit the grievance in writing to his
             1243      agency or division director within 10 working days after the expiration of the period for
             1244      decision or receipt of the decision, whichever is first.]
             1245          [(b) Within five working days after the employee's written grievance is submitted, the
             1246      employee's agency or division director shall issue a written response to the grievance stating
             1247      his decision and the reasons for the decision.]
             1248          [(4)] (3) (a) If [the written grievance submitted to] the employee's agency or division
             1249      director [remains unanswered for] fails to respond to the grievance within five working days
             1250      after its submission, or if the aggrieved employee is dissatisfied with the agency or division
             1251      director's written decision [issued], the employee may [submit] advance the written grievance
             1252      [in writing to his] to the employee's department head within 10 working days after the
             1253      expiration of the period for decision or receipt of the written decision, whichever is first.
             1254          (b) Within 10 working days after the employee's written grievance is submitted, the
             1255      department head [shall] may issue a written response to the grievance stating [his] the decision
             1256      and the reasons for the decision.
             1257          (c) The decision of the department head is final in all matters except those matters that
             1258      the [board] office may review under the authority of Part 3, Grievance Procedures.
             1259          [(5)] (4) If the written grievance submitted to the employee's department head meets
             1260      the subject matter requirements of Section [ 67-19a-302 ] 67-19a-202 and if the [grievance
             1261      remains unanswered for] the employee's department head fails to respond to the grievance


             1262      within 10 working days after [its] submission, or if the aggrieved employee is dissatisfied with
             1263      the department head's written decision [issued], the employee may [submit] advance the
             1264      written grievance [in writing] to the administrator within 10 working days after the expiration
             1265      of the period for decision or receipt of the written decision, whichever is first.
             1266          Section 29. Section 67-19a-403 is amended to read:
             1267           67-19a-403. Advancement of grievance to administrator -- Initial hearing.
             1268          (1) At any time after a career service employee submits a written grievance to the
             1269      administrator under [the authority of Section 67-19a-402 ] Subsection 67-19a-402 (4), the
             1270      administrator may attempt to settle the grievance informally by conference, conciliation, and
             1271      persuasion with the employee and the agency.
             1272          (2) (a) When an employee [submits] advances a grievance to the administrator under
             1273      [the authority of Section 67-19a-402 ] Subsection 67-19a-402 (4), the administrator shall
             1274      initially determine:
             1275          (i) whether [or not] the employee is a career service employee and is entitled to use the
             1276      grievance system;
             1277          (ii) whether [or not the board] the office has [jurisdiction over] authority to review the
             1278      grievance; and
             1279          (iii) whether [or not] the employee has been directly harmed[; and].
             1280          [(iv) the issues to be heard.]
             1281          (b) In order to make the determinations required by Subsection (2)(a), the
             1282      administrator may:
             1283          (i) hold [a jurisdictional] an initial hearing, where the parties may present oral
             1284      arguments, written arguments, or both; or
             1285          (ii) conduct an administrative review of the file.
             1286          (3) (a) If the administrator holds [a jurisdictional] an initial hearing, [he] the
             1287      administrator shall issue [his] a written decision within 15 days after the hearing is adjourned.
             1288          (b) If the administrator chooses to conduct an administrative review of the file, [he]
             1289      the administrator shall issue [his] the written decision within 15 days after [he] the


             1290      administrator receives the grievance.
             1291          Section 30. Section 67-19a-404 is amended to read:
             1292           67-19a-404. Evidentiary hearing.
             1293          (1) If the administrator determines that the [grievance meets the jurisdictional
             1294      requirements of Part 3, he] office has authority to review the grievance, the administrator shall:
             1295          [(1)] (a) appoint a hearing officer to adjudicate the [complaint] grievance; and
             1296          [(2)] (b) set a date for the evidentiary hearing that is either:
             1297          [(a)] (i) not later than 30 days after the date the administrator [issues his decision that
             1298      the board] determines that the office has [jurisdiction over] authority to review the grievance;
             1299      or
             1300          [(b)] (ii) at a date:
             1301          (A) agreed upon by the parties and the administrator; and
             1302          (B) not greater than 150 days after the date the administrator determines that the office
             1303      has authority to review the grievance.
             1304          (2) After the date for the evidentiary hearing has been set, the administrator or
             1305      assigned hearing officer may grant each party one extension of reasonable length for
             1306      extraordinary circumstances as determined by the administrator or assigned hearing officer.
             1307          (3) Notwithstanding Section 63G-4-205 , and in order to accommodate the 150-day
             1308      time limit, the administrator may only allow a motion for discovery for production of
             1309      documents, records, and evidence under Utah Rules of Civil Procedure, Rule 34.
             1310          Section 31. Section 67-19a-406 is amended to read:
             1311           67-19a-406. Procedural steps to be followed by aggrieved employee -- Hearing
             1312      before hearing officer -- Evidentiary and procedural rules.
             1313          (1) (a) The administrator shall employ a certified court reporter to record the hearing
             1314      and prepare an official transcript of the hearing.
             1315          (b) The official transcript of the proceedings and all exhibits, briefs, motions, and
             1316      pleadings received by the hearing officer are the official record of the proceeding.
             1317          (2) (a) The agency has the burden of proof in all grievances [resulting from dismissals,


             1318      demotions, suspensions, written reprimands, reductions in force, and disputes concerning
             1319      abandonment of position].
             1320          [(b) The employee has the burden of proof in all other grievances.]
             1321          [(c)] (b) The [party with the burden of proof] agency must prove [their] the agency's
             1322      case by substantial evidence.
             1323          (3) (a) The hearing officer shall issue a written decision within 20 working days after
             1324      the hearing is adjourned.
             1325          (b) If the hearing officer does not issue a decision within 20 working days, the agency
             1326      that is a party to the grievance is not liable for any claimed back wages or benefits after the
             1327      date the decision is due.
             1328          (4) The hearing officer may:
             1329          (a) not award [attorneys'] attorney fees or costs to either party;
             1330          (b) close a hearing by complying with the procedures and requirements of Title 52,
             1331      Chapter 4, Open and Public Meetings Act;
             1332          (c) seal the file and the evidence produced at the hearing if the evidence raises
             1333      questions about an employee's character, professional competence, or physical or mental
             1334      health;
             1335          (d) grant continuances according to [board] rule; and
             1336          [(e) decide questions or disputes concerning standing in accordance with Section
             1337      67-19a-301 .]
             1338          (e) decide a motion, an issue regarding discovery, or another issue in accordance with
             1339      this chapter.
             1340          Section 32. Repealer.
             1341          This bill repeals:
             1342          Section 67-19a-407, Appeal to Career Service Review Board.
             1343          Section 67-19a-408, Career Service Review Board hearing -- Evidentiary and
             1344      procedural rules.
             1345          Section 33. Effective date.


             1346          This bill takes effect on July 1, 2010.
             1347          Section 34. Revisor instructions.
             1348          It is the intent of the Legislature that, in preparing the Utah Code database for
             1349      publication, the Office of Legislative Research and General Counsel shall replace the reference
             1350      in Section 67-19a-101.5 from "this bill" to the bill's designated chapter number in the Laws of
             1351      Utah.
             1352          Section 35. Coordinating H.B. 140 with H.B. 27 -- Superseding and substantive
             1353      amendments.
             1354          If this H.B. 140 and H.B. 27, Per Diem and Travel Expense Modifications, both pass,
             1355      it is the intent of the Legislature that the amendments to Section 67-19a-201 in this H.B. 140
             1356      supersede the amendments to Section 67-19a-201 in H.B. 27, when the Office of Legislative
             1357      Research and General Counsel prepares the Utah Code database for publication.


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