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Second Substitute H.B. 140

Senator Daniel R. Liljenquist proposes the following substitute bill:


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


             57          67-19-3.1, as last amended by Laws of Utah 2006, Chapter 139
             58          67-19-6, as last amended by Laws of Utah 2008, Chapter 382
             59          67-19-6.1, as last amended by Laws of Utah 2006, Chapter 139
             60          67-19-6.7, as last amended by Laws of Utah 2008, Chapter 382
             61          67-19-11, as last amended by Laws of Utah 2009, Chapters 104 and 183
             62          67-19-12, as last amended by Laws of Utah 2009, Chapter 294
             63          67-19-12.2, as last amended by Laws of Utah 2006, Chapter 139
             64          67-19-14, as last amended by Laws of Utah 2008, Chapter 382
             65          67-19-14.2, as last amended by Laws of Utah 2007, Chapter 130
             66          67-19-15, as last amended by Laws of Utah 2009, Chapter 294
             67          67-19-15.6, as last amended by Laws of Utah 2006, Chapter 139
             68          67-19-15.7, as last amended by Laws of Utah 2000, Chapter 322
             69          67-19-16, as last amended by Laws of Utah 2006, Chapter 139
             70          67-19-18, as last amended by Laws of Utah 2009, Chapter 9
             71          67-19-30, as last amended by Laws of Utah 2008, Chapter 382
             72          67-19a-101, as last amended by Laws of Utah 1991, Chapters 101 and 204
             73          67-19a-201, as last amended by Laws of Utah 1996, Chapters 194 and 243
             74          67-19a-203, as last amended by Laws of Utah 2008, Chapter 382
             75          67-19a-204, as last amended by Laws of Utah 1995, Chapter 215
             76          67-19a-301, as last amended by Laws of Utah 1991, Chapter 101
             77          67-19a-302, as last amended by Laws of Utah 1991, Chapter 204
             78          67-19a-303, as last amended by Laws of Utah 2006, Chapter 139
             79          67-19a-401, as last amended by Laws of Utah 1999, Chapter 21
             80          67-19a-402, as last amended by Laws of Utah 1991, Chapter 204
             81          67-19a-403, as last amended by Laws of Utah 1991, Chapter 204
             82          67-19a-404, as enacted by Laws of Utah 1989, Chapter 191
             83          67-19a-406, as last amended by Laws of Utah 2006, Chapter 14
             84      ENACTS:
             85          67-19a-101.5, Utah Code Annotated 1953
             86      REPEALS AND REENACTS:
             87          67-19a-202, as last amended by Laws of Utah 2008, Chapter 382


             88      REPEALS:
             89          67-19a-407, as enacted by Laws of Utah 1989, Chapter 191
             90          67-19a-408, as last amended by Laws of Utah 2009, Chapter 9
             91      Utah Code Sections Affected by Coordination Clause:
             92          67-19a-201, as last amended by Laws of Utah 1996, Chapters 194 and 243
             93     
             94      Be it enacted by the Legislature of the state of Utah:
             95          Section 1. Section 63I-2-267 is amended to read:
             96           63I-2-267. Repeal dates -- Title 67.
             97          Section 67-19a-101.5 is repealed July 1, 2011.
             98          Section 2. Section 67-19-3 is amended to read:
             99           67-19-3. Definitions.
             100          As used in this chapter:
             101          (1) "Agency" means any department or unit of Utah state government with authority to
             102      employ personnel.
             103          (2) "Career service" means positions under Schedule B as defined in Section 67-19-15 .
             104          (3) "Career service employee" means an employee who has successfully completed a
             105      probationary period of service in a position covered by the career service.
             106          (4) "Career service status" means status granted to employees who successfully
             107      complete probationary periods for competitive career service positions.
             108          (5) "Classified service" means those positions subject to the classification and
             109      compensation provisions of Section 67-19-12 .
             110          (6) "Controlled substance" means controlled substance as defined in Section 58-37-2 .
             111          (7) (a) "Demotion" means a disciplinary action resulting in a reduction of an
             112      employee's current actual wage.
             113          (b) "Demotion" does not mean:
             114          (i) a nondisciplinary movement of an employee to another position without a reduction
             115      in the current actual wage; or
             116          (ii) a reclassification of an employee's position under the provisions of Subsection
             117      67-19-12 (3) and rules made by the department.
             118          (8) "Department" means the Department of Human Resource Management.


             119          (9) "Disability" means a physical or mental disability as defined and protected under
             120      the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
             121          (10) "Employee" means any individual in a paid status covered by the career service or
             122      classified service provisions of this chapter.
             123          (11) "Examining instruments" means written or other types of proficiency tests.
             124          (12) "Executive director," except where otherwise specified, means the executive
             125      director of the Department of Human Resource Management.
             126          (13) "Human resource function" means those duties and responsibilities specified:
             127          (a) under Section 67-19-6 ;
             128          (b) under rules of the department; and
             129          (c) under other state or federal statute.
             130          (14) "Market comparability adjustment" means a salary range adjustment determined
             131      necessary through a market survey of salary ranges of a reasonable cross section of comparable
             132      benchmark positions in private and public employment.
             133          (15) "Probationary employee" means an employee serving a probationary period in a
             134      career service position but who does not have career service status.
             135          (16) "Probationary period" means that period of time determined by the department
             136      that an employee serves in a career service position as part of the hiring process before career
             137      service status is granted to the employee.
             138          (17) "Probationary status" means the status of an employee between the employee's
             139      hiring and the granting of career service status.
             140          (18) "Temporary employee" means career service exempt employees on schedule [AJ,
             141      AI, or AL] IN or TL under Section 67-19-15 .
             142          (19) "Total compensation" means salaries and wages, bonuses, paid leave, group
             143      insurance plans, retirement, and all other benefits offered to state employees as inducements to
             144      work for the state.
             145          Section 3. Section 67-19-3.1 is amended to read:
             146           67-19-3.1. Principles guiding interpretation of chapter and adoption of rules.
             147          (1) The department shall establish a career service system designed in a manner that
             148      will provide for the effective implementation of the following merit principles:
             149          (a) recruiting, selecting, and advancing employees on the basis of their relative ability,


             150      knowledge, and skills, including open consideration of qualified applicants for initial
             151      appointment;
             152          (b) providing for equitable and competitive compensation;
             153          (c) training employees as needed to assure high-quality performance;
             154          (d) retaining employees on the basis of the adequacy of their performance and
             155      separating employees whose inadequate performance cannot be corrected;
             156          (e) fair treatment of applicants and employees in all aspects of human resource
             157      administration without regard to race, color, religion, sex, national origin, political affiliation,
             158      age, or disability, and with proper regard for their privacy and constitutional rights as citizens;
             159          (f) providing information to employees regarding their political rights and the
             160      prohibited practices under the Hatch Act; and
             161          (g) providing a formal procedure for [processing the appeals and] advancing grievances
             162      of employees:
             163          (i) without discrimination, coercion, restraint, or reprisal; and
             164          (ii) in a manner that is fair, expeditious, and inexpensive for the employee and the
             165      agency.
             166          (2) The principles in Subsection (1) shall govern interpretation and implementation of
             167      this chapter.
             168          Section 4. Section 67-19-6 is amended to read:
             169           67-19-6. Responsibilities of the executive director.
             170          (1) The executive director shall:
             171          (a) develop, implement, and administer a statewide program of human resource
             172      management that will:
             173          (i) aid in the efficient execution of public policy;
             174          (ii) foster careers in public service for qualified employees; and
             175          (iii) render assistance to state agencies in performing their missions;
             176          (b) design and administer the state pay plan;
             177          (c) design and administer the state classification system and procedures for determining
             178      schedule assignments;
             179          (d) design and administer the state recruitment and selection system;
             180          (e) administer agency human resource practices and ensure compliance with federal


             181      law, state law, and state human resource rules, including equal employment opportunity;
             182          (f) consult with agencies on decisions concerning employee corrective action and
             183      discipline;
             184          (g) maintain central personnel records;
             185          (h) perform those functions necessary to implement this chapter unless otherwise
             186      assigned or prohibited;
             187          (i) perform duties assigned by the governor or statute;
             188          (j) adopt rules for human resource management according to the procedures of Title
             189      63G, Chapter 3, Utah Administrative Rulemaking Act;
             190          (k) establish and maintain a management information system that will furnish the
             191      governor, the Legislature, and agencies with current information on authorized positions,
             192      payroll, and related matters concerning state human resources;
             193          (l) conduct research and planning activities to:
             194          (i) determine and prepare for future state human resource needs;
             195          (ii) develop methods for improving public human resource management; and
             196          (iii) propose needed policy changes to the governor;
             197          (m) study the character, causes, and extent of discrimination in state employment and
             198      develop plans for its elimination through programs consistent with federal and state laws
             199      governing equal employment opportunity in employment;
             200          (n) when requested by counties, municipalities, and other political subdivisions of the
             201      state, provide technical service and advice on human resource management at a charge
             202      determined by the executive director;
             203          (o) establish compensation policies and procedures for early voluntary retirement;
             204          (p) confer with the heads of other agencies about human resource policies and
             205      procedures;
             206          (q) submit an annual report to the governor and the Legislature; and
             207          (r) [(i) develop a procedure by which each agency will:] assist with the development of
             208      a vacant position report required under Subsection 63J-1-201 (2)(b)(v).
             209          [(A) identify funded vacant positions; and]
             210          [(B) report those funded vacant positions to the department;]
             211          [(ii) identify all funded employee positions in each agency that have been vacant for


             212      more than 180 consecutive days during the 18-month period prior to July 1 of each year; and]
             213          [(iii) by no later than September 1 of each year, provide a report of all funded employee
             214      positions in each agency identified in Subsections (1)(r)(i) and (ii) to:]
             215          [(A) the Governor's Office of Planning and Budget; and]
             216          [(B) the Office of the Legislative Fiscal Analyst.]
             217          (2) (a) After consultation with the governor and the heads of other agencies, the
             218      executive director shall establish and coordinate statewide training programs.
             219          (b) The programs developed under this Subsection (2) shall have application to more
             220      than one agency.
             221          (c) The department may not establish training programs that train employees to
             222      perform highly specialized or technical jobs and tasks.
             223          (3) (a) (i) The department may collect fees for training as authorized by this Subsection
             224      (3).
             225          (ii) Training funded from General Fund appropriations shall be treated as a separate
             226      program within the department budget.
             227          (iii) All money received from fees under this section will be accounted for by the
             228      department as a separate user driven training program.
             229          (iv) The user training program includes the costs of developing, procuring, and
             230      presenting training and development programs, and other associated costs for these programs.
             231          (b) (i) Funds remaining at the end of the fiscal year in the user training program are
             232      nonlapsing.
             233          (ii) Each year, as part of the appropriations process, the Legislature shall review the
             234      amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
             235      the department to lapse a portion of the funds.
             236          Section 5. Section 67-19-6.1 is amended to read:
             237           67-19-6.1. Department field offices.
             238          (1) The executive director of the Department of Human Resource Management may
             239      establish a field office in an agency.
             240          (2) The executive director may assign an employee of the department to act as field
             241      office staff.
             242          (3) The executive director and agency head shall sign an agreement, to be reviewed


             243      annually, that specifies:
             244          (a) the services to be provided by the department;
             245          (b) the use of agency facilities and equipment by the field office;
             246          (c) protocols to resolve discrepancies between agency practice and Department of
             247      Human Resource Management policy; and
             248          (d) any other issue necessary for the proper functioning of the field office.
             249          (4) Unless otherwise provided for in the field office agreement, the agency shall:
             250          [(a) obtain field office approval for the final selection of qualified applicants for
             251      appointment and promotion to vacant positions;]
             252          [(b)] (a) assign responsibilities and duties to its employees;
             253          [(c)] (b) conduct performance appraisals;
             254          [(d)] (c) discipline its employees in consultation with the department; and
             255          [(e)] (d) maintain individual personnel records.
             256          Section 6. Section 67-19-6.7 is amended to read:
             257           67-19-6.7. Overtime policies for state employees.
             258          (1) As used in this section:
             259          (a) "Accrued overtime hours" means:
             260          (i) for nonexempt employees, overtime hours earned during a fiscal year that, at the end
             261      of the fiscal year, have not been paid and have not been taken as time off by the nonexempt
             262      state employee who accrued them; and
             263          (ii) for exempt employees, overtime hours earned during an overtime year.
             264          (b) "Appointed official" means:
             265          (i) each department executive director and deputy director, each division director, and
             266      each member of a board or commission; and
             267          (ii) any other person employed by a department who is appointed by, or whose
             268      appointment is required by law to be approved by, the governor and who:
             269          (A) is paid a salary by the state; and
             270          (B) who exercises managerial, policy-making, or advisory responsibility.
             271          (c) "Department" means the Department of Administrative Services, the Department of
             272      Corrections, the Department of Financial Institutions, the Department of Alcoholic Beverage
             273      Control, the Insurance Department, the Public Service Commission, the Labor Commission,


             274      the Department of Agriculture and Food, the Department of Human Services, the State Board
             275      of Education, the Department of Natural Resources, the Department of Technology Services,
             276      the Department of Transportation, the Department of Commerce, the Department of Workforce
             277      Services, the State Tax Commission, the Department of Community and Culture, the
             278      Department of Health, the National Guard, the Department of Environmental Quality, the
             279      Department of Public Safety, the Department of Human Resource Management, the
             280      Commission on Criminal and Juvenile Justice, all merit employees except attorneys in the
             281      Office of the Attorney General, merit employees in the Office of the State Treasurer, [and]
             282      merit employees in the Office of the State Auditor, Department of Veterans' Affairs, and the
             283      Board of Pardons and Parole.
             284          (d) "Elected official" means any person who is an employee of the state because the
             285      person was elected by the registered voters of Utah to a position in state government.
             286          (e) "Exempt employee" means a state employee who is exempt as defined by the Fair
             287      Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             288          (f) "FLSA" means the Fair Labor Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             289          (g) "FLSA agreement" means the agreement authorized by the Fair Labor Standards
             290      Act of 1978, 29 U.S.C. Section 201 et seq., by which a nonexempt employee elects the form of
             291      compensation the nonexempt employee will receive for overtime.
             292          (h) "Nonexempt employee" means a state employee who is nonexempt as defined by
             293      the Department of Human Resource Management applying FLSA requirements.
             294          (i) "Overtime" means actual time worked in excess of the employee's defined work
             295      period.
             296          (j) "Overtime year" means the year determined by a department under Subsection
             297      (4)(b) at the end of which an exempt employee's accrued overtime lapses.
             298          (k) [(i)] "State employee" means every person employed by a department who is not:
             299          (i) an appointed official [or];
             300          (ii) an elected official[.];
             301          (iii) a member of a board or commission who is paid only on a per diem or travel
             302      expenses basis; or
             303          (iv) employed on a contractual basis at the State Office of Education.
             304          [(ii) "State employee" does not mean:]


             305          [(A) certificated employees of the State Board of Education; and]
             306          [(B) employees of the Department of Community and Culture or the Governor's Office
             307      of Economic Development, whose positions are designated as schedule AM exempt employees
             308      under Section 67-19-15 .]
             309          (l) "Uniform annual date" means the date when an exempt employee's accrued
             310      overtime lapses.
             311          (m) "Work period" means:
             312          (i) for all nonexempt employees, except law enforcement and hospital employees, a
             313      consecutive seven day 24 hour work period of 40 hours;
             314          (ii) for all exempt employees, a 14 day, 80 hour payroll cycle; and
             315          (iii) for nonexempt law enforcement and hospital employees, the period established by
             316      each department by rule for those employees according to the requirements of the Fair Labor
             317      Standards Act of 1978, 29 U.S.C. Section 201 et seq.
             318          (2) Each department shall compensate each state employee who works overtime by
             319      complying with the requirements of this section.
             320          (3) (a) Each department shall negotiate and obtain a signed FLSA agreement from each
             321      nonexempt employee.
             322          (b) In the FLSA agreement, the nonexempt employee shall elect either to be
             323      compensated for overtime by:
             324          (i) taking time off work at the rate of one and one-half hour off for each overtime hour
             325      worked; or
             326          (ii) being paid for the overtime worked at the rate of one and one-half times the rate per
             327      hour that the state employee receives for nonovertime work.
             328          (c) Any nonexempt employee who elects to take time off under this Subsection (3)
             329      shall be paid for any overtime worked in excess of the cap established by the Department of
             330      Human Resource Management.
             331          (d) Before working any overtime, each nonexempt employee shall obtain authorization
             332      to work overtime from the employee's immediate supervisor.
             333          (e) Each department shall:
             334          (i) for employees who elect to be compensated with time off for overtime, allow
             335      overtime earned during a fiscal year to be accumulated; and


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


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


             398          (d) monitor departments for compliance with the FLSA; and
             399          (e) recommend to the Legislature and the governor any statutory changes necessary
             400      because of federal government action.
             401          (6) In coordination with the procedures for recording overtime worked established in
             402      rule by the Department of Human Resource Management, the Division of Finance shall modify
             403      its payroll and human resource systems to accommodate those procedures.
             404          (a) Notwithstanding the procedures and requirements of Title 63G, Chapter 4,
             405      Administrative Procedures Act, Section 67-19-31 , and Section 67-19a-301 , any employee who
             406      is aggrieved by the FLSA designation made by the Department of Human Resource
             407      Management as required by this section may appeal that determination to the executive director
             408      of the Department of Human Resource Management by following the procedures and
             409      requirements established in Department of Human Resource Management rule.
             410          (b) Upon receipt of an appeal under this section, the executive director shall notify the
             411      executive director of the employee's department that the appeal has been filed.
             412          (c) If the employee is aggrieved by the decision of the executive director of the
             413      Department of Human Resource Management, the employee shall appeal that determination to
             414      the Department of Labor, Wage and Hour Division, according to the procedures and
             415      requirements of federal law.
             416          Section 7. Section 67-19-11 is amended to read:
             417           67-19-11. Use of department facilities -- Field office facilities cost allocation --
             418      Funding for department.
             419          (1) (a) All officers and employees of the state and its political subdivisions shall allow
             420      the department to use public buildings under their control, and furnish heat, light, and furniture,
             421      for any examination, training, hearing, or investigation authorized by this chapter.
             422          (b) The cost of the department's use of facilities shall be paid by the agency housing a
             423      field office staff.
             424          (2) The executive director shall:
             425          (a) prepare an annual budget request for the department;
             426          (b) submit the budget request to the governor and the Legislature; and
             427          (c) [except for fiscal year 2007,] before charging a fee for services provided by the
             428      department's internal service fund to an executive branch agency, the executive director shall:


             429          (i) submit the proposed rates, fees, and cost analysis to the Rate Committee established
             430      under Subsection (3); and
             431          (ii) obtain the approval of the Legislature as required under Section 63J-1-410 .
             432          (3) (a) There is created a Rate Committee which shall consist of:
             433          (i) the director of the Governor's Office of Planning and Budget, or a designee;
             434          (ii) the executive directors of three state agencies that use services and pay rates to one
             435      of the department internal service funds, or their designee, appointed by the governor for a
             436      two-year term;
             437          (iii) the director of the Division of Finance, or a designee; [and]
             438          (iv) the executive director of the Department of Human Resource Management, or a
             439      designee[.]; and
             440          (v) the attorney general or designee.
             441          (b) (i) The committee shall elect a chair from its members, except that the chair may
             442      not be from an agency that receives payment of a rate set by the committee.
             443          (ii) Members of the committee who are state government employees and who do not
             444      receive salary, per diem, or expenses from their agency for their service on the committee shall
             445      receive no compensation, benefits, per diem, or expenses for the members' service on the
             446      committee.
             447          (c) The Department of Human Resource Management shall provide staff services to the
             448      committee.
             449          (4) (a) The department shall submit to the committee a proposed rate and fee schedule
             450      for:
             451          (i) human resource management services rendered[.]; and
             452          (ii) costs incurred by the Office of the Attorney General in defending the state in a
             453      grievance under review by the Career Service Review Office.
             454          (b) The committee shall:
             455          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
             456      Act;
             457          (ii) review the proposed rate and fee schedules and may approve, increase, or decrease
             458      the rate and fee;
             459          (iii) recommend a proposed rate and fee schedule for the internal service fund to:


             460          (A) the Governor's Office of Planning and Budget; and
             461          (B) the legislative appropriations subcommittees that, in accordance with Section
             462      63J-1-410 , approve the internal service fund rates, fees, and budget; and
             463          (iv) review and approve, increase or decrease an interim rate, fee, or amount when the
             464      department begins a new service or introduces a new product between annual general sessions
             465      of the Legislature.
             466          (c) The committee may in accordance with Subsection 63J-1-410 (4) decrease a rate,
             467      fee, or amount that has been approved by the Legislature.
             468          Section 8. Section 67-19-12 is amended to read:
             469           67-19-12. State pay plans -- Applicability of section -- Exemptions -- Duties of the
             470      executive director.
             471          (1) (a) This section, and the rules adopted by the department to implement this section,
             472      apply to each career and noncareer employee not specifically exempted under Subsection (2).
             473          (b) If not exempted under Subsection (2), an employee is considered to be in classified
             474      service.
             475          (2) The following employees are exempt from this section:
             476          (a) members of the Legislature and legislative employees;
             477          (b) members of the judiciary and judicial employees;
             478          (c) elected members of the executive branch and [their direct staff who meet career
             479      service exempt criteria as defined in] employees under schedule AC as provided under
             480      Subsection 67-19-15 (1)[(k)](c);
             481          (d) employees of the State Board of Education who are licensed by the State Board of
             482      Education;
             483          (e) officers, faculty, and other employees of state institutions of higher education;
             484          (f) employees in [any] a position that is [determined] specified by statute to be exempt
             485      from this Subsection (2);
             486          (g) employees in the Office of the Attorney General;
             487          (h) department heads and other persons appointed by the governor [pursuant to] under
             488      statute;
             489          [(i) employees of the Department of Community and Culture whose positions are
             490      designated as executive/professional positions by the executive director of the Department of


             491      Community and Culture with the concurrence of the executive director;]
             492          [(j) employees of the Governor's Office of Economic Development whose positions are
             493      designated as executive/professional positions by the director of the office;]
             494          [(k)] (i) exempt employees [of the Medical Education Council] as provided under
             495      Subsection 67-19-15 (1)(l); [and]
             496          [(l)] (j) employees of the Utah Schools for the Deaf and the Blind who are:
             497          (i) educators as defined by Section 53A-25b-102 [who are employed by the Utah
             498      Schools for the Deaf and the Blind.]; or
             499          (ii) educational interpreters as classified by the department; and
             500          (k) temporary employees under schedule TL or IN as provided under Subsections
             501      67-19-15 (1)(o) and (p).
             502          (3) (a) The executive director shall prepare, maintain, and revise a position
             503      classification plan for each employee position not exempted under Subsection (2) to provide
             504      equal pay for equal work.
             505          (b) Classification of positions shall be based upon similarity of duties performed and
             506      responsibilities assumed, so that the same job requirements and the same salary range may be
             507      applied equitably to each position in the same class.
             508          (c) The executive director shall allocate or reallocate the position of each employee in
             509      classified service to one of the classes in the classification plan.
             510          (d) (i) The department shall conduct periodic studies and desk audits to provide that the
             511      classification plan remains reasonably current and reflects the duties and responsibilities
             512      assigned to and performed by employees.
             513          (ii) The executive director shall determine the schedule for studies and desk audits after
             514      considering factors such as changes in duties and responsibilities of positions or agency
             515      reorganizations.
             516          (4) (a) With the approval of the governor, the executive director shall develop and
             517      adopt pay plans for each position in classified service.
             518          (b) The executive director shall design each pay plan to achieve, to the degree that
             519      funds permit, comparability of state salary ranges to salary ranges used by private enterprise
             520      and other public employment for similar work.
             521          (c) The executive director shall adhere to the following in developing each pay plan:


             522          (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
             523      differential among the various classes of positions in the classification plan.
             524          (ii) (A) The executive director shall assign each class of positions in the classification
             525      plan to a salary range and shall set the width of the salary range to reflect the normal growth
             526      and productivity potential of employees in that class.
             527          (B) The width of the ranges need not be uniform for all classes of positions in the
             528      plan[, but each range shall contain merit steps in increments of 2.75% salary increases].
             529          (iii) (A) The executive director shall issue rules for the administration of pay plans.
             530          (B) The rules may provide for exceptional performance increases and for a program of
             531      incentive awards for cost-saving suggestions and other commendable acts of employees.
             532          (C) The executive director shall issue rules providing for salary adjustments.
             533          (iv) Merit [step] increases shall be granted, [if funds are available,] on a uniform and
             534      consistent basis in accordance with appropriations made by the Legislature, to employees who
             535      receive a rating of "successful" or higher in an annual evaluation of their productivity and
             536      performance.
             537          (v) By October 31 of each year, the executive director shall submit market
             538      comparability adjustments to the director of the Governor's Office of Planning and Budget for
             539      consideration to be included as part of the affected agency's base budgets.
             540          (vi) By October 31 of each year, the executive director shall recommend a
             541      compensation package to the governor.
             542          (vii) (A) Adjustments shall incorporate the results of a total compensation market
             543      survey of salary ranges and benefits of a reasonable cross section of comparable benchmark
             544      positions in private and public employment in the state.
             545          (B) The survey may also study comparable unusual positions requiring recruitment in
             546      other states.
             547          (C) The executive director may cooperate with other public and private employers in
             548      conducting the survey.
             549          (viii) (A) The executive director shall establish criteria to assure the adequacy and
             550      accuracy of the survey and shall use methods and techniques similar to and consistent with
             551      those used in private sector surveys.
             552          (B) Except as provided under [Section] Sections 67-19-12.1 and 67-19-12.3 , the survey


             553      shall include a reasonable cross section of employers.
             554          (C) The executive director may cooperate with or participate in any survey conducted
             555      by other public and private employers.
             556          (D) The executive director shall obtain information for the purpose of constructing the
             557      survey from the Division of Workforce Information and Payment Services and shall include
             558      employer name, number of persons employed by the employer, employer contact information
             559      and job titles, county code, and salary if available.
             560          (E) The department shall acquire and protect the needed records in compliance with the
             561      provisions of Section 35A-4-312 .
             562          (ix) The establishing of a salary range is a nondelegable activity and is not appealable
             563      under the grievance procedures of Sections 67-19-30 through 67-19-32 , [Title 67,] Chapter
             564      19a, Grievance [and Appeal] Procedures, or otherwise.
             565          (x) The governor shall:
             566          (A) consider salary adjustments recommended under Subsection (4)(c)(vi) in preparing
             567      the executive budget and shall recommend the method of distributing the adjustments;
             568          (B) submit compensation recommendations to the Legislature; and
             569          (C) support the recommendation with schedules indicating the cost to individual
             570      departments and the source of funds.
             571          (xi) If funding is approved by the Legislature in a general appropriations act, the
             572      adjustments take effect on the July 1 following the enactment.
             573          (5) (a) The executive director shall regularly evaluate the total compensation program
             574      of state employees in the classified service.
             575          (b) The department shall determine if employee benefits are comparable to those
             576      offered by other private and public employers using information from:
             577          (i) the most recent edition of the Employee Benefits Survey Data conducted by the U.S.
             578      Chamber of Commerce Research Center; or
             579          (ii) the most recent edition of a nationally recognized benefits survey.
             580          (6) (a) The executive director shall submit proposals for a state employee
             581      compensation plan to the governor by October 31 of each year, setting forth findings and
             582      recommendations affecting employee compensation.
             583          (b) The governor shall consider the executive director's proposals in preparing budget


             584      recommendations for the Legislature.
             585          (c) The governor's budget proposals to the Legislature shall include a specific
             586      recommendation on employee compensation.
             587          Section 9. Section 67-19-12.2 is amended to read:
             588           67-19-12.2. Education benefit plan for law enforcement and correctional officers.
             589          (1) As used in this section, "law enforcement officer" has the same meaning as in
             590      Section 53-13-103 and "correctional officer" has the same meaning as in Section 53-13-104 .
             591          (2) The executive director shall establish a plan authorizing any agency to implement
             592      an educational compensation program for law enforcement officers and correctional officers
             593      employed by that agency.
             594          (3) The program shall provide that in order for a law enforcement officer or
             595      correctional officer to qualify for education benefits for college or university education, the law
             596      enforcement officer or correctional officer shall:
             597          (a) provide a certified transcript of grades, demonstrating a grade point average of 3.0
             598      or greater, from an accredited college or university; and
             599          (b) have successfully completed the probationary employment period with the
             600      employing agency.
             601          (4) The program shall also provide that the agency may consider a law enforcement
             602      officer or correctional officer to receive additional compensation as follows for higher
             603      education degrees earned on or after April 30, 2001, in a subject area directly related to the law
             604      enforcement officer's or correctional officer's employment with the agency:
             605          (a) [two steps] 5.5% for an associate's degree;
             606          (b) [two steps] 5.5% for a bachelor's degree; and
             607          (c) [two steps] 5.5% for a master's degree.
             608          (5) Expenses incurred by an agency to provide additional compensation under this
             609      section may be only from the agency's existing budget.
             610          Section 10. Section 67-19-14 is amended to read:
             611           67-19-14. Sick leave -- Definitions -- Unused sick days retirement programs --
             612      Rulemaking.
             613          (1) As used in [Sections 67-19-14 ] this section through Section 67-19-14.4 :
             614          (a) "Continuing medical and life insurance benefits" means the state provided policy of


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


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


             677          (A) 480 hours if the employee retires during calendar year 2006;
             678          (B) 384 hours if the employee retires during calendar year 2007;
             679          (C) 288 hours if the employee retires during calendar year 2008;
             680          (D) 192 hours if the employee retires during calendar year 2009;
             681          (E) 96 hours if the employee retires during calendar year 2010; or
             682          (F) 0 hours if the employee retires after calendar year 2010.
             683          (b) The medical coverage level for member, two person, or family coverage that is
             684      provided to the member at the time of retirement is the maximum coverage level available to
             685      the member under this program.
             686          (c) The purchase of continuing medical and life insurance benefits at the rate provided
             687      under Subsection (4)(a) may be used by the employee to extend coverage:
             688          (i) beyond the number of years provided under Subsection (2) until the employee
             689      reaches the age of eligibility for Medicare; or
             690          (ii) if the employee has reached the age of eligibility for Medicare, continuing medical
             691      benefits for the employee's spouse may be purchased until the employee's spouse reaches the
             692      age of eligibility for Medicare.
             693          (d) An employee and the employee's spouse who are or who later become eligible for
             694      Medicare may purchase Medicare supplemental insurance at the rate of one month's coverage
             695      for eight hours of the employee's unused sick leave per person.
             696          (5) (a) The continuing medical and life insurance benefits received under Subsection
             697      (2)(b) or purchased by an employee under Subsection (4):
             698          (i) may not be suspended or deferred for future use; and
             699          (ii) continues in effect until exhausted.
             700          (b) An employer participating in the Program I benefits under this section may not
             701      provide medical or life insurance benefits to a person who is:
             702          (i) reemployeed after retirement; and
             703          (ii) receiving benefits under this section.
             704          Section 12. Section 67-19-15 is amended to read:
             705           67-19-15. Career service -- Exempt positions -- Schedules for civil service
             706      positions -- Coverage of career service provisions.
             707          (1) Except as otherwise provided by law or by rules and regulations established for


             708      federally aided programs, the following positions are exempt from the career service provisions
             709      of this chapter and are designated under the following schedules:
             710          (a) Schedule AA includes the governor, members of the Legislature, and all other
             711      elected state officers[, designated as Schedule AA];
             712          (b) Schedule AB includes appointed executives and board or commission executives
             713      enumerated in Section 67-22-2 [, and commissioners designated as Schedule AB];
             714          (c) Schedule AC includes all employees and officers in:
             715          (i) the office and at the residence of the governor[, designated as Schedule AC];
             716          (ii) the Utah Science Technology and Research Initiative (USTAR);
             717          (iii) the Public Lands Policy Coordinating Council;
             718          (iv) the Office of the State Auditor; and
             719          (v) the Office of the State Treasurer;
             720          (d) Schedule AD includes employees who:
             721          (i) are in a confidential relationship to an agency head or commissioner; and [who]
             722          (ii) report directly to, and are supervised by, a department head, commissioner, or
             723      deputy director of an agency or its equivalent[, designated as Schedule AD];
             724          [(e) unskilled employees in positions requiring little or no specialized skill or training,
             725      designated as Schedule AE;]
             726          [(f) part-time professional noncareer persons who are paid for any form of medical and
             727      other professional service and who are not engaged in the performance of administrative duties,
             728      designated as Schedule AF;]
             729          [(g)] (e) Schedule AG includes employees in the Office of the Attorney General who
             730      are under their own career service pay plan under Sections 67-5-7 through 67-5-13 [, designated
             731      as Schedule AG];
             732          [(h)] (f) Schedule AH includes:
             733          (i) teaching staff of all state institutions[, including]; and
             734          (ii) employees of the Utah Schools for the Deaf and the Blind who are:
             735          (A) educational interpreters as classified by the department; or
             736          (B) educators as defined by Section 53A-25b-102 [who are employed by the Utah
             737      Schools for the Deaf and the Blind, designated as Schedule AH];
             738          [(i) persons appointed to a position vacated by an employee who has a right to return


             739      under federal or state law or policy, designated as Schedule AI;]
             740          [(j) noncareer employees compensated for their services on a seasonal or contractual
             741      basis who are hired for limited periods of less than nine consecutive months or who are
             742      employed on less than 1/2 time basis, designated as Schedule AJ;]
             743          [(k) those employees in a personal and confidential relationship to elected officials,
             744      designated as Schedule AK;]
             745          [(l) employees appointed to perform work of a limited duration not exceeding two
             746      years or to perform work with time-limited funding, designated as Schedule AL;]
             747          [(m) employees of the Department of Community and Culture whose positions are
             748      designated as executive/professional positions by the executive director of the Department of
             749      Community and Culture with the concurrence of the executive director, and employees of the
             750      Governor's Office of Economic Development whose positions are designated as
             751      executive/professional positions by the director of the office, designated as Schedule AM;]
             752          [(n)] (g) Schedule AN includes employees of the Legislature[, designated as Schedule
             753      AN];
             754          [(o)] (h) Schedule AO includes employees of the judiciary[, designated as Schedule
             755      AO];
             756          [(p)] (i) Schedule AP includes all judges in the judiciary[, designated as Schedule AP];
             757          [(q)] (j) Schedule AQ includes:
             758          (i) members of state and local boards and councils appointed by the governor and
             759      governing bodies of agencies[,];
             760          (ii) other local officials serving in an ex officio capacity[,]; and
             761          (iii) officers, faculty, and other employees of state universities and other state
             762      institutions of higher education[, designated as Schedule AQ];
             763          [(r)] (k) Schedule AR includes employees [who make statewide policy, designated as
             764      Schedule AR;] in positions which involve responsibility:
             765          (i) for determining policy;
             766          (ii) for determining the way in which a policy is carried out; or
             767          (iii) of a type not appropriate for career service, as determined by the agency head with
             768      the concurrence of the executive director;
             769          [(s)] (l) Schedule AS includes any other employee:


             770          (i) whose appointment is required by statute to be career service exempt[, designated as
             771      Schedule AS];
             772          (ii) whose agency is not subject to this chapter; or
             773          (iii) whose agency has authority to make rules regarding the performance,
             774      compensation, and bonuses for its employees;
             775          [(t)] (m) Schedule AT includes employees of the Department of Technology Services,
             776      designated as executive/professional positions by the executive director of the Department of
             777      Technology Services with the concurrence of the executive director[, designated as Schedule
             778      AT]; [and]
             779          [(u)] (n) Schedule AU includes patients and inmates employed in state institutions[,
             780      designated as Schedule AU.];
             781          (o) Schedule IN includes employees who are:
             782          (i) hired to work part time on an indefinite basis; and
             783          (ii) considered to be temporary noncareer employees; and
             784          (p) Schedule TL includes employees who are:
             785          (i) hired to work on a time-limited basis; and
             786          (ii) considered to be temporary noncareer employees.
             787          (2) The civil service shall consist of two schedules as follows:
             788          (a) (i) Schedule A is the schedule consisting of positions [exempted by] under
             789      Subsection (1).
             790          (ii) Removal from any appointive position under Schedule A, unless otherwise
             791      regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
             792          (b) Schedule B is the competitive career service schedule, consisting of all positions
             793      filled through competitive selection procedures as defined by the executive director.
             794          (3) (a) The executive director, after consultation with the heads of concerned executive
             795      branch departments and agencies and with the approval of the governor, shall allocate positions
             796      to the appropriate schedules under this section.
             797          (b) Agency heads shall make requests and obtain approval from the executive director
             798      before changing the schedule assignment and tenure rights of any position.
             799          (c) Unless the executive director's decision is reversed by the governor, when the
             800      executive director denies an agency's request, the executive director's decision is final.


             801          (4) (a) Compensation for employees of the Legislature shall be established by the
             802      directors of the legislative offices in accordance with Section 36-12-7 .
             803          (b) Compensation for employees of the judiciary shall be established by the state court
             804      administrator in accordance with Section 78A-2-107 .
             805          (c) Compensation for officers, faculty, and other employees of state universities and
             806      institutions of higher education shall be established as provided in Title 53B, Chapters 1,
             807      Governance, Powers, Rights, and Responsibilities, and 2, Institutions of Higher Education.
             808          (d) Unless otherwise provided by law, compensation for all other Schedule A
             809      employees shall be established by their appointing authorities, within ranges approved by, and
             810      after consultation with the executive director of the Department of Human Resource
             811      Management.
             812          [(5) All employees of the Office of State Auditor, the Office of State Treasurer, and
             813      employees who are not exempt under this section are covered by the career service provisions
             814      of this chapter.]
             815          (5) An employee who is in a position designated schedule AC and who holds career
             816      service status on June 30, 2010, shall retain the career service status if the employee:
             817          (a) remains in the position that the employee is in on June 30, 2010; and
             818          (b) does not elect to convert to career service exempt status in accordance with a rule
             819      made by the department.
             820          Section 13. Section 67-19-15.6 is amended to read:
             821           67-19-15.6. Longevity salary increases.
             822          (1) Except for those employees [subject to the Executive and Judicial Compensation
             823      Commission or Citizen's Salary Commission, any] in schedule AB, IN, or TL as provided
             824      under Section 67-19-15, an employee shall receive an increase in salary of 2.75% if that
             825      employee:
             826          (a) holds a position under Schedule A or B as [defined in] provided under Section
             827      67-19-15 ;
             828          (b) has reached the [final step in] maximum of the salary range in the position
             829      classification;
             830          (c) has been employed with the state for eight years; and
             831          (d) is rated eligible in job performance under guidelines established by the executive


             832      director.
             833          (2) Any employee who meets the criteria [defined in] under Subsection (1) is entitled
             834      to the same increase in salary for each additional three years of employment [so long as] if the
             835      employee maintains the eligibility standards established by the department.
             836          Section 14. Section 67-19-15.7 is amended to read:
             837           67-19-15.7. Promotion -- Reclassification -- Market adjustment.
             838          (1) (a) [Each employee who] If an employee is promoted or [whose] the employee's
             839      position is reclassified to [the next higher salary range shall be placed at the merit step within
             840      the new range corresponding to a salary increase of between 2.75% and 11%] a higher salary
             841      range maximum, the agency shall place the employee within the new range of the position.
             842          (b) [The employee] An agency may not [be placed] set an employee's salary:
             843          (i) higher than the [highest merit step] maximum in the new salary range; and
             844          (ii) lower than the minimum in the new salary range of the position.
             845          (c) Except for an employee under Schedule IN or TL under Section 67-19-15 , the
             846      agency shall grant a salary increase of at least 5% to an employee who is promoted.
             847          [(2) (a) Each employee who is promoted or whose position is reclassified to a salary
             848      range higher than the next higher range shall be placed at the merit step within the new range
             849      corresponding to a salary increase of between 5.5% and 11%.]
             850          [(b) The employee may not be placed lower than the lowest merit step in the new salary
             851      range.]
             852          [(3) (a) Each] (2) An agency shall adjust the salary range for an employee whose
             853      salary range is approved by the Legislature for a [selective salary] market comparability
             854      adjustment consistent with Subsection 67-19-12 (4)(c)[(viii)](v) [shall be adjusted to the new
             855      range]:
             856          (a) at the beginning of the next fiscal year[.]; and
             857          (b) [Employees shall be placed at the step value on the new range] consistent with [the
             858      appropriation authorized] appropriations made by the Legislature.
             859          [(4) (a)] (3) Department-initiated revisions in the state classification system that result
             860      in consolidation or reduction of class titles or broadening of pay ranges:
             861          (a) may not be regarded as a reclassification of the position or promotion of the
             862      employee[.]; and


             863          (b) are exempt from the provisions of Subsection (1).
             864          [(b) These revisions are exempt from the provisions of Subsections (1) and (2).]
             865          Section 15. Section 67-19-16 is amended to read:
             866           67-19-16. Appointments to Schedule B positions -- Examinations -- Hiring lists --
             867      Probationary service -- Dismissal.
             868          (1) Each appointment to a position under Schedule B shall be made from hiring lists of
             869      applicants who have been selected by competitive procedures as defined by the executive
             870      director.
             871          (2) The executive director shall publicly announce information regarding career service
             872      positions:
             873          (a) for periods of time to be determined by the executive director; and
             874          (b) in a manner designed to attract the highest number of qualified applicants.
             875          (3) The executive director shall make rules establishing standards for the development,
             876      approval, and implementation of examining instruments.
             877          (4) Applicants for employment to Schedule B positions shall be eligible for
             878      appointment based upon rules established by the executive director.
             879          (5) (a) The agency head shall make appointments to fill vacancies from hiring lists for
             880      probationary periods as defined by rule.
             881          (b) The executive director shall make rules establishing probationary periods.
             882          (6) A person serving a probationary period may not use the grievance procedures
             883      provided in this chapter and in [Title 67,] Chapter 19a, Grievance [and Appeal] Procedures,
             884      and may be dismissed at any time by the appointing officer without hearing or appeal.
             885          (7) Career service status shall be granted upon the successful completion of the
             886      probationary period.
             887          Section 16. Section 67-19-18 is amended to read:
             888           67-19-18. Dismissals and demotions -- Grounds -- Disciplinary action --
             889      Procedure -- Reductions in force.
             890          (1) A career service employee may be dismissed or demoted:
             891          (a) to advance the good of the public service; or
             892          (b) for just causes, including inefficiency, incompetency, failure to maintain skills or
             893      adequate performance levels, insubordination, disloyalty to the orders of a superior,


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


             925          (B) Retention points for each career service employee shall be computed according to
             926      rules established by the executive director, allowing appropriate consideration for proficiency
             927      and seniority in state government, including any active duty military service fulfilled
             928      subsequent to original state appointment.
             929          (c) (i) A career service employee who is separated in a reduction in force under this
             930      section shall be given preferential consideration when applying for a career service position.
             931          (ii) Preferential consideration under Subsection (6)(c)(i) applies only until the former
             932      career service employee accepts a career service position.
             933          (iii) The executive director shall make rules in accordance with Title 63G, Chapter 3,
             934      Utah Administrative Rulemaking Act, concerning the manner of granting preferential
             935      consideration under Subsection (6)(c)(i).
             936          (d) (i) An employee separated due to a reduction in force may appeal to the department
             937      head for an administrative review.
             938          (ii) The notice of appeal must be submitted within 20 working days after the
             939      employee's receipt of written notification of separation.
             940          (iii) The employee may appeal the decision of the department head according to the
             941      grievance and appeals procedure of this [act] chapter and Chapter 19a, Grievance Procedures.
             942          Section 17. Section 67-19-30 is amended to read:
             943           67-19-30. Grievance resolution -- Jurisdiction.
             944          (1) Employees shall comply with the procedural and jurisdictional requirements of this
             945      section, Title 63G, Chapter 4, Administrative Procedures Act, and [Title 67,] Chapter 19a,
             946      Grievance [and Appeal] Procedures, in seeking resolution of grievances.
             947          (2) All grievances based upon a claim or charge of injustice or oppression, including
             948      dismissal from employment, resulting from an act, occurrence, commission, or condition shall
             949      be governed by [Title 67,] Chapter 19a, Grievance [and Appeal] Procedures, and Title 63G,
             950      Chapter 4, Administrative Procedures Act.
             951          (3) All grievances involving classification shall be governed by Section 67-19-31 and
             952      are designated as informal adjudicative proceedings as defined by Title 63G, Chapter 4,
             953      Administrative Procedures Act.
             954          (4) All grievances by applicants for positions in state government involving an alleged
             955      discriminatory or prohibited employment practice shall be governed by Section 67-19-32 and


             956      Title 63G, Chapter 4, Administrative Procedures Act.
             957          (5) A "grievance" under this chapter is a request for agency action for purposes of Title
             958      63G, Chapter 4, Administrative Procedures Act.
             959          Section 18. Section 67-19a-101 is amended to read:
             960     
CHAPTER 19a. GRIEVANCE PROCEDURES

             961           67-19a-101. Definitions.
             962          As used in this chapter:
             963          (1) "Administrator" means the person [employed by the board to assist in administering
             964      personnel policies] appointed under Section 67-19a-201 to head the Career Service Review
             965      Office.
             966          [(2) "Board" means the Career Service Review Board created by this chapter.]
             967          [(3)] (2) "Career service employee" means a person employed in career service as
             968      defined in Section 67-19-3 .
             969          [(4)] (3) "Employer" means the state of Utah and all supervisory personnel vested with
             970      the authority to implement and administer the policies of [the department] an agency.
             971          [(5)] (4) "Grievance" means:
             972          (a) a complaint by a career service employee concerning any matter touching upon the
             973      relationship between the employee and [his] the employer; and
             974          (b) any dispute between a career service employee and [his] the employer.
             975          (5) "Office" means the Career Service Review Office created under Section
             976      67-19a-201 .
             977          (6) "Supervisor" means the person:
             978          (a) to whom an employee reports [and]; or
             979          (b) who assigns and oversees [the] an employee's work.
             980          Section 19. Section 67-19a-101.5 is enacted to read:
             981          67-19a-101.5. Transition.
             982          (1) The board that is repealed by this bill on July 1, 2010, shall:
             983          (a) continue to exist until June 30, 2011, with the same membership, duties, and
             984      procedures only for the purpose of addressing a grievance submitted to the employee's
             985      supervisor on or before June 30, 2010; and
             986          (b) apply the law in effect on June 30, 2010 to a grievance described in Subsection


             987      (1)(a).
             988          (2) The amendments to this chapter made by this bill apply only to a grievance
             989      submitted to the employee's supervisor on or after July 1, 2010.
             990          Section 20. Section 67-19a-201 is amended to read:
             991     
Part 2. Career Service Review Office

             992           67-19a-201. Career Service Review Office created -- Appointment of an
             993      administrator -- Reporting -- Qualifications.
             994          (1) There is created a Career Service Review [Board] Office.
             995          (2) (a) The governor shall appoint [five members to the board no more than three of
             996      which are members of the same political party], with the consent of the Senate, an
             997      administrator of the office.
             998          [(b) The governor shall appoint members whose gender and ethnicity represent the
             999      career service work force.]
             1000          (b) The administrator shall have demonstrated an ability to administer personnel
             1001      policies in performing the duties specified in this chapter.
             1002          [(3) (a) The governor may remove any board member for cause.]
             1003          [(b) When a vacancy occurs in the membership for any reason, the replacement shall be
             1004      appointed for the unexpired term.]
             1005          [(4) The governor shall ensure that appointees to the board:]
             1006          [(a) are qualified by knowledge of employee relations and merit system principles in
             1007      public employment; and]
             1008          [(b) are not:]
             1009          [(i) members of any local, state, or national committee of a political party;]
             1010          [(ii) officers or members of a committee in any partisan political club; and]
             1011          [(iii) holding or a candidate for a paid public office.]
             1012          [(5) (a) Except as required by Subsection (b), the governor shall appoint board
             1013      members to serve four-year terms beginning January 1.]
             1014          [(b) Notwithstanding the requirements of Subsection (a), the governor shall, at the time
             1015      of appointment or reappointment, adjust the length of terms to ensure that the terms of board
             1016      members are staggered so that approximately half of the board is appointed every two years.]
             1017          [(c) The members of the board shall serve until their successors are appointed and


             1018      qualified.]
             1019          [(6) Each year, the board shall choose a chair and vice chair from its own members.]
             1020          [(7) (a) Three members of the board are a quorum for the transaction of business.]
             1021          [(b) Action by a majority of members when a quorum is present is action of the board.]
             1022          [(8) (a) Members shall receive no compensation or benefits for their services, but may
             1023      receive per diem and expenses incurred in the performance of the member's official duties at
             1024      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .]
             1025          [(b) Members may decline to receive per diem and expenses for their service.]
             1026          Section 21. Section 67-19a-202 is repealed and reenacted to read:
             1027          67-19a-202. Powers -- Scope of Authority.
             1028          (1) (a) The office shall serve as the final administrative body to review a grievance
             1029      from a career service employee and agency of decision regarding:
             1030          (i) a dismissal;
             1031          (ii) a demotion;
             1032          (iii) a suspension;
             1033          (iv) a reduction in force;
             1034          (v) a dispute concerning abandonment of position;
             1035          (vi) a wage grievance if an employee is not placed within the salary range of the
             1036      employee's current position;
             1037          (vii) a violation of a rule adopted under Chapter 19, Utah State Personnel Management
             1038      Act; or
             1039          (viii) except as provided by Subsection (1)(b)(iii), equitable administration of the
             1040      following benefits:
             1041          (A) long-term disability insurance;
             1042          (B) medical insurance;
             1043          (C) dental insurance;
             1044          (D) post-retirement health insurance;
             1045          (E) post-retirement life insurance;
             1046          (F) life insurance;
             1047          (G) defined contribution retirement;
             1048          (H) defined benefit retirement; and


             1049          (I) a leave benefit.
             1050          (b) The office may not review or take action on:
             1051          (i) a personnel matter not listed in Subsection (1)(a);
             1052          (ii) a grievance listed in Subsection (1)(a) that alleges discrimination or retaliation
             1053      related to a claim of discrimination that is a violation of a state or federal law for which review
             1054      and action by the office is preempted by state or federal law; or
             1055          (iii) a grievance related to a claim for which an administrative review process is
             1056      provided by statute and administered by:
             1057          (A) the Utah State Retirement Systems under Title 49, Utah State Retirement and
             1058      Insurance Benefit Act;
             1059          (B) the Public Employees' Benefit and Insurance Program under Title 49, Chapter 20,
             1060      Public Employees' Benefit and Insurance Program Act; or
             1061          (C) the Public Employees' Long-Term Disability Program under Title 49, Chapter 21,
             1062      Public Employees' Long-Term Disability Act.
             1063          (2) The time limits established in this chapter supersede the procedural time limits
             1064      established in Title 63G, Chapter 4, Administrative Procedures Act.
             1065          Section 22. Section 67-19a-203 is amended to read:
             1066           67-19a-203. Rulemaking authority.
             1067          [The board] (1) In accordance with Title 63G, Chapter 3, Utah Administrative
             1068      Rulemaking Act, the administrator may make rules governing:
             1069          [(1)] (a) definitions of terms, phrases, and words used in the grievance process
             1070      established by this chapter;
             1071          [(2)] (b) what matters constitute excusable neglect for purposes of the waiver of time
             1072      limits established by this chapter;
             1073          [(3)] (c) the application for and service of subpoenas, the service and filing of
             1074      pleadings, and the issuance of rulings, orders, determinations, summary judgments, transcripts,
             1075      and other legal documents necessary in grievance proceedings;
             1076          [(4)] (d) the use, calling, attendance, participation, and fees of witnesses in grievance
             1077      proceedings;
             1078          [(5)] (e) continuances of grievance proceedings;
             1079          [(6)] (f) procedures in [jurisdictional and evidentiary] hearings, unless governed by


             1080      Title 63G, Chapter 4, Administrative Procedures Act;
             1081          [(7)] (g) the presence of media representatives at grievance proceedings; [and]
             1082          [(8)] (h) procedures for sealing files or making data pertaining to a grievance
             1083      unavailable to the public[.]; and
             1084          (i) motions that will assist the parties in meeting the 150-day time limit.
             1085          (2) The rule made under Subsection (1)(i) shall:
             1086          (a) prohibit a party from filing a dispositive motion under Utah Rules of Civil
             1087      Procedure, Rule 12(b)(6) or Rule 56 before an evidentiary hearing; and
             1088          (b) authorize a party to file a motion before an evidentiary hearing to:
             1089          (i) dismiss for lack of authority to review the grievance under Utah Rules of Civil
             1090      Procedure, Rule 12(b)(1) or Rule 12(b)(2); or
             1091          (ii) limit the introduction of evidence.
             1092          Section 23. Section 67-19a-204 is amended to read:
             1093           67-19a-204. Administrator -- Powers.
             1094          [(1) The governor shall appoint a person with demonstrated ability to administer
             1095      personnel policies to assist the board in performing the functions specified in this chapter.]
             1096          (1) In conjunction with any inquiry, investigation, hearing, or other proceeding, the
             1097      administrator may:
             1098          (a) administer an oath;
             1099          (b) certify an official act;
             1100          (c) subpoena a witness, document, and other evidence; and
             1101          (d) grant a continuance as provided by rule.
             1102          (2) (a) The administrator may:
             1103          (i) assign qualified, impartial hearing officers on a per case basis to adjudicate matters
             1104      under the [jurisdiction] authority of the [board] office;
             1105          (ii) subpoena witnesses, documents, and other evidence in conjunction with any
             1106      inquiry, investigation, hearing, or other proceeding; and
             1107          (iii) upon motion made by a party or person to whom the subpoena is directed and
             1108      upon notice to the party who issued the subpoena, quash or modify the subpoena if it is
             1109      unreasonable, requires an excessive number of witnesses, or requests evidence not relevant to
             1110      any matter in issue.


             1111          (b) In selecting and assigning hearing officers under authority of this section, the
             1112      administrator shall appoint hearing officers that have demonstrated by education, training, and
             1113      experience the ability to adjudicate and resolve personnel administration disputes by applying
             1114      employee relations principles within a large, public work force.
             1115          Section 24. Section 67-19a-301 is amended to read:
             1116     
Part 3. Grievance Procedures

             1117           67-19a-301. Charges submissible under grievance procedure.
             1118          (1) This grievance procedure may only be used by career service employees who are
             1119      not:
             1120          (a) public applicants for a position with the state's work force;
             1121          (b) public employees of the state's political subdivisions;
             1122          (c) public employees covered by other grievance procedures; or
             1123          (d) employees of state institutions of higher education.
             1124          (2) (a) Whenever a question or dispute exists as to whether an employee is qualified to
             1125      use this grievance procedure, the administrator shall resolve the question or dispute.
             1126          (b) The administrator's decision under Subsection (2)(a) is reviewable only by the
             1127      Court of Appeals.
             1128          (3) Any career service employee may submit a grievance based upon a claim or charge
             1129      of injustice or oppression, including dismissal from employment, resulting from an act,
             1130      occurrence, omission, or condition for solution through the grievance procedures set forth in
             1131      this chapter.
             1132          Section 25. Section 67-19a-302 is amended to read:
             1133           67-19a-302. Levels of procedure.
             1134          (1) A career service employee may grieve [promotions, dismissals, demotions,
             1135      suspensions, written reprimands, wages, salary, violations of personnel rules, issues concerning
             1136      the equitable administration of benefits, reductions in force, and disputes concerning
             1137      abandonment of position to all levels of grievance procedure] the issues specified under
             1138      Subsection 67-19a-202 (1)(a) to all levels of the grievance procedure described in Section
             1139      67-19a-402 .
             1140          (2) (a) A career service employee may grieve all other matters only to the level of [his]
             1141      the department head.


             1142          (b) The decision of the department head on a matter under Subsection (2)(a) is final
             1143      and [unappealable to the board] may not be advanced to the office.
             1144          Section 26. Section 67-19a-303 is amended to read:
             1145           67-19a-303. Employees' rights in grievance procedure.
             1146          (1) For the purpose of [processing] submitting and advancing a grievance, a career
             1147      service employee may:
             1148          (a) obtain assistance by a representative of the employee's choice to act as an advocate
             1149      at any level of the grievance procedure;
             1150          (b) request a reasonable amount of time during work hours to confer with the
             1151      representative and prepare the grievance; and
             1152          (c) call other employees as witnesses at a grievance hearing.
             1153          (2) The state shall allow employees to attend and testify at the grievance hearing as
             1154      witnesses if the employee has given reasonable advance notice to the employee's immediate
             1155      supervisor.
             1156          (3) No person may take any reprisals against any career service employee for use of
             1157      grievance procedures specified in this chapter.
             1158          (4) (a) The employing agency of an employee who files a grievance may not place
             1159      grievance forms, grievance materials, correspondence about the grievance, agency and
             1160      department replies to the grievance, or other documents relating to the grievance in the
             1161      employee's personnel file.
             1162          (b) The employing agency of an employee who files a grievance may place records of
             1163      disciplinary action in the employee's personnel file.
             1164          (c) If any disciplinary action against an employee is rescinded through the grievance
             1165      procedures established in this chapter, the agency and the Department of Human Resource
             1166      Management shall remove the record of the disciplinary action from the employee's agency
             1167      personnel file and central personnel file.
             1168          (d) An agency may maintain a separate grievance file relating to an employee's
             1169      grievance, but shall discard the file after three years.
             1170          Section 27. Section 67-19a-401 is amended to read:
             1171           67-19a-401. Time limits for submission and advancement of grievance by
             1172      aggrieved employee -- Voluntary termination of employment -- Group grievances.


             1173          (1) Subject to the [standing requirements contained in] provisions of Part 3, Grievance
             1174      Procedures, and the restrictions contained in this part, a career service employee may have a
             1175      grievance addressed by following the procedures specified in this part.
             1176          (2) The employee and the person to whom the grievance is directed may agree in
             1177      writing to waive or extend grievance steps [2, 3, or 4] specified under Subsection
             1178      67-19a-402 (1), (2), or (3) or the time limits specified for those grievance steps, as outlined in
             1179      Section 67-19a-402 .
             1180          (3) Any writing made [pursuant to] under Subsection (2) [must] shall be submitted to
             1181      the administrator.
             1182          (4) [(a) Unless the employee meets the requirements for excusable neglect established
             1183      by rule, if] Except as provided under Subsection (6), if the employee fails to [process] advance
             1184      the grievance to the next procedural step within the time limits established in this part[, he has
             1185      waived his]:
             1186          (a) the employee waives the right to [process] advance the grievance or to obtain
             1187      judicial review of the grievance[.]; and
             1188          [(b) Unless the employee meets the requirements for excusable neglect established by
             1189      rule, if the employee fails to process the grievance to the next step within the time limits
             1190      established in this part,]
             1191          (b) the grievance is considered to be settled based on the decision made at the last
             1192      procedural step.
             1193          (5) (a) [Unless the employee meets the requirements for excusable neglect established
             1194      by rule, an] An employee may submit a grievance for review under this chapter only if the
             1195      employee submits the grievance:
             1196          (i) within 20 working days after the event giving rise to the grievance; or
             1197          (ii) within 20 working days after the employee has knowledge of the event giving rise
             1198      to the grievance.
             1199          (b) Notwithstanding Subsection (5)(a), an employee may not submit a grievance more
             1200      than one year after the event giving rise to the grievance.
             1201          (6) The provisions of Subsections (4) and (5)(a) do not apply if the employee meets the
             1202      requirements for excusable neglect established by rule.
             1203          [(6)] (7) A person who has voluntarily terminated [his] the person's employment with


             1204      the state may not submit a grievance after [he] the person has terminated [his] the employment.
             1205          [(7)] (8) (a) [When] If several employees allege the same grievance, [they] the
             1206      employees may submit a group grievance by following the procedures and requirements of this
             1207      chapter.
             1208          (b) In submitting a group grievance, each aggrieved employee shall sign the
             1209      [complaint] grievance.
             1210          (c) The administrator [and board] may not treat a group grievance as a class action, but
             1211      may select one aggrieved employee's grievance and address that grievance as a test case.
             1212          Section 28. Section 67-19a-402 is amended to read:
             1213           67-19a-402. Procedural steps to be followed by aggrieved employee.
             1214          (1) (a) A career service employee who [believes he has a grievance shall attempt to
             1215      resolve the grievance through discussion with his] has a grievance shall submit the grievance in
             1216      writing to:
             1217          (i) the employee's supervisor; and
             1218          (ii) the administrator.
             1219          (b) Within five working days after [the employee discusses the grievance with him]
             1220      receiving a written grievance, the employee's supervisor may issue a [verbal] written decision
             1221      on the grievance.
             1222          (2) (a) If [the grievance remains unanswered for five working days after its
             1223      submission,] the employee's supervisor fails to respond to the grievance within five working
             1224      days or if the aggrieved employee is dissatisfied with the supervisor's [verbal] written decision,
             1225      the employee may [resubmit] advance the written grievance [in writing] to [his immediate
             1226      supervisor within five] the employee's agency or division director within 10 working days after
             1227      the expiration of the period for response or receipt of the written decision, whichever is first.
             1228          (b) Within five working days after receiving the written grievance, the employee's
             1229      [written grievance is submitted, the employee's supervisor shall] agency or division director
             1230      may issue a written response to the grievance stating [his] the decision and the reasons for the
             1231      decision.
             1232          [(c) Immediately after submitting the written grievance to his supervisor, the employee
             1233      shall notify the administrator of the board that he has submitted the written grievance.]
             1234          [(3) (a) If the written grievance submitted to the employee's supervisor remains


             1235      unanswered for five working days after its submission, or if the aggrieved employee is
             1236      dissatisfied with the decision issued, the employee may submit the grievance in writing to his
             1237      agency or division director within 10 working days after the expiration of the period for
             1238      decision or receipt of the decision, whichever is first.]
             1239          [(b) Within five working days after the employee's written grievance is submitted, the
             1240      employee's agency or division director shall issue a written response to the grievance stating his
             1241      decision and the reasons for the decision.]
             1242          [(4)] (3) (a) If [the written grievance submitted to] the employee's agency or division
             1243      director [remains unanswered for] fails to respond to the grievance within five working days
             1244      after its submission, or if the aggrieved employee is dissatisfied with the agency or division
             1245      director's written decision [issued], the employee may [submit] advance the written grievance
             1246      [in writing to his] to the employee's department head within 10 working days after the
             1247      expiration of the period for decision or receipt of the written decision, whichever is first.
             1248          (b) Within 10 working days after the employee's written grievance is submitted, the
             1249      department head [shall] may issue a written response to the grievance stating [his] the decision
             1250      and the reasons for the decision.
             1251          (c) The decision of the department head is final in all matters except those matters that
             1252      the [board] office may review under the authority of Part 3, Grievance Procedures.
             1253          [(5)] (4) If the written grievance submitted to the employee's department head meets
             1254      the subject matter requirements of Section [ 67-19a-302 ] 67-19a-202 and if the [grievance
             1255      remains unanswered for] the employee's department head fails to respond to the grievance
             1256      within 10 working days after [its] submission, or if the aggrieved employee is dissatisfied with
             1257      the department head's written decision [issued], the employee may [submit] advance the written
             1258      grievance [in writing] to the administrator within 10 working days after the expiration of the
             1259      period for decision or receipt of the written decision, whichever is first.
             1260          Section 29. Section 67-19a-403 is amended to read:
             1261           67-19a-403. Advancement of grievance to administrator -- Initial hearing.
             1262          (1) At any time after a career service employee submits a written grievance to the
             1263      administrator under [the authority of Section 67-19a-402 ] Subsection 67-19a-402 (4), the
             1264      administrator may attempt to settle the grievance informally by conference, conciliation, and
             1265      persuasion with the employee and the agency.


             1266          (2) (a) When an employee [submits] advances a grievance to the administrator under
             1267      [the authority of Section 67-19a-402 ] Subsection 67-19a-402 (4), the administrator shall
             1268      initially determine:
             1269          (i) whether [or not] the employee is a career service employee and is entitled to use the
             1270      grievance system;
             1271          (ii) whether [or not the board] the office has [jurisdiction over] authority to review the
             1272      grievance; and
             1273          (iii) whether [or not] the employee has been directly harmed[; and].
             1274          [(iv) the issues to be heard.]
             1275          (b) In order to make the determinations required by Subsection (2)(a), the administrator
             1276      may:
             1277          (i) hold [a jurisdictional] an initial hearing, where the parties may present oral
             1278      arguments, written arguments, or both; or
             1279          (ii) conduct an administrative review of the file.
             1280          (3) (a) If the administrator holds [a jurisdictional] an initial hearing, [he] the
             1281      administrator shall issue [his] a written decision within 15 days after the hearing is adjourned.
             1282          (b) If the administrator chooses to conduct an administrative review of the file, [he] the
             1283      administrator shall issue [his] the written decision within 15 days after [he] the administrator
             1284      receives the grievance.
             1285          Section 30. Section 67-19a-404 is amended to read:
             1286           67-19a-404. Evidentiary hearing.
             1287          (1) If the administrator determines that the [grievance meets the jurisdictional
             1288      requirements of Part 3, he] office has authority to review the grievance, the administrator shall:
             1289          [(1)] (a) appoint a hearing officer to adjudicate the [complaint] grievance; and
             1290          [(2)] (b) set a date for the evidentiary hearing that is either:
             1291          [(a)] (i) not later than 30 days after the date the administrator [issues his decision that
             1292      the board] determines that the office has [jurisdiction over] authority to review the grievance;
             1293      or
             1294          [(b)] (ii) at a date:
             1295          (A) agreed upon by the parties and the administrator; and
             1296          (B) not greater than 150 days after the date the administrator determines that the office


             1297      has authority to review the grievance.
             1298          (2) After the date for the evidentiary hearing has been set, the administrator or assigned
             1299      hearing officer may grant each party one extension of reasonable length for extraordinary
             1300      circumstances as determined by the administrator or assigned hearing officer.
             1301          (3) Notwithstanding Section 63G-4-205 , and in order to accommodate the 150-day
             1302      time limit, the administrator may only allow a motion for discovery for production of
             1303      documents, records, and evidence under Utah Rules of Civil Procedure, Rule 34.
             1304          Section 31. Section 67-19a-406 is amended to read:
             1305           67-19a-406. Procedural steps to be followed by aggrieved employee -- Hearing
             1306      before hearing officer -- Evidentiary and procedural rules.
             1307          (1) (a) The administrator shall employ a certified court reporter to record the hearing
             1308      and prepare an official transcript of the hearing.
             1309          (b) The official transcript of the proceedings and all exhibits, briefs, motions, and
             1310      pleadings received by the hearing officer are the official record of the proceeding.
             1311          (2) (a) The agency has the burden of proof in all grievances [resulting from dismissals,
             1312      demotions, suspensions, written reprimands, reductions in force, and disputes concerning
             1313      abandonment of position].
             1314          [(b) The employee has the burden of proof in all other grievances.]
             1315          [(c)] (b) The [party with the burden of proof] agency must prove [their] the agency's
             1316      case by substantial evidence.
             1317          (3) (a) The hearing officer shall issue a written decision within 20 working days after
             1318      the hearing is adjourned.
             1319          (b) If the hearing officer does not issue a decision within 20 working days, the agency
             1320      that is a party to the grievance is not liable for any claimed back wages or benefits after the date
             1321      the decision is due.
             1322          (4) The hearing officer may:
             1323          (a) not award [attorneys'] attorney fees or costs to either party;
             1324          (b) close a hearing by complying with the procedures and requirements of Title 52,
             1325      Chapter 4, Open and Public Meetings Act;
             1326          (c) seal the file and the evidence produced at the hearing if the evidence raises
             1327      questions about an employee's character, professional competence, or physical or mental


             1328      health;
             1329          (d) grant continuances according to [board] rule; and
             1330          [(e) decide questions or disputes concerning standing in accordance with Section
             1331      67-19a-301 .]
             1332          (e) decide a motion, an issue regarding discovery, or another issue in accordance with
             1333      this chapter.
             1334          Section 32. Repealer.
             1335          This bill repeals:
             1336          Section 67-19a-407, Appeal to Career Service Review Board.
             1337          Section 67-19a-408, Career Service Review Board hearing -- Evidentiary and
             1338      procedural rules.
             1339          Section 33. Effective date.
             1340          This bill takes effect on July 1, 2010.
             1341          Section 34. Revisor instructions.
             1342          It is the intent of the Legislature that, in preparing the Utah Code database for
             1343      publication, the Office of Legislative Research and General Counsel shall replace the reference
             1344      in Section 67-19a-101.5 from "this bill" to the bill's designated chapter number in the Laws of
             1345      Utah.
             1346          Section 35. Coordinating H.B. 140 with H.B. 27 -- Superseding and substantive
             1347      amendments.
             1348          If this H.B. 140 and H.B. 27, Per Diem and Travel Expense Modifications, both pass, it
             1349      is the intent of the Legislature that the amendments to Section 67-19a-201 in this H.B. 140
             1350      supersede the amendments to Section 67-19a-201 in H.B. 27, when the Office of Legislative
             1351      Research and General Counsel prepares the Utah Code database for publication.


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