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

H.B. 193 Enrolled

             1     

UTAH STATE EMPLOYMENT AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brad L. Dee

             5     
Senate Sponsor: Jerry W. Stevenson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to state employment.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires participating employers to maintain records indicating whether an
             13      employee is receiving certain benefits;
             14          .    modifies a provision relating to a requirement that an employer provide benefit
             15      information to specified employees;
             16          .    enacts a definition of "benefits normally provided" for purposes of the Public
             17      Employees' Contributory Retirement Act, the Public Employees' Noncontributory
             18      Retirement Act, and the New Public Employees' Tier II Contributory Retirement
             19      Act;
             20          .    modifies a provision relating to the designation of positions that are exempt from
             21      career service provisions under the Utah State Personnel Management Act;
             22          .    enacts language relating to a hearing officer's decision relating to agency action in
             23      the context of a state employee grievance process, including requirements for the
             24      hearing officer's order;
             25          .    authorizes the executive director to adopt rules to establish the maximum number of
             26      hours of converted sick leave an employee may accrue; and
             27          .    makes technical changes.
             28      Money Appropriated in this Bill:
             29          None


             30      Other Special Clauses:
             31          This bill coordinates with H.B. 24, Utah Retirement System Amendments, by providing
             32      substantive and superseding amendments.
             33      Utah Code Sections Affected:
             34      AMENDS:
             35          49-11-602, as last amended by Laws of Utah 2011, Chapter 439
             36          49-11-616, as last amended by Laws of Utah 2012, Chapter 298
             37          49-12-102, as last amended by Laws of Utah 2012, Chapter 298
             38          49-13-102, as last amended by Laws of Utah 2012, Chapter 298
             39          49-22-102, as last amended by Laws of Utah 2011, Chapter 439
             40          67-19-3, as last amended by Laws of Utah 2010, Chapter 249
             41          67-19-12, as last amended by Laws of Utah 2012, Chapter 173
             42          67-19-14, as last amended by Laws of Utah 2010, Chapter 249
             43          67-19-15, as last amended by Laws of Utah 2011, Chapters 340 and 427
             44          67-19-15.6, as last amended by Laws of Utah 2010, Chapter 249
             45          67-19-15.7, as last amended by Laws of Utah 2010, Chapter 249
             46          67-19a-406, as last amended by Laws of Utah 2010, Chapter 249
             47      Utah Code Sections Affected by Coordination Clause:
             48          49-11-616, as last amended by Laws of Utah 2012, Chapter 298
             49     
             50      Be it enacted by the Legislature of the state of Utah:
             51          Section 1. Section 49-11-602 is amended to read:
             52           49-11-602. Participating employer to maintain records -- Time limit -- Penalties
             53      for failure to comply.
             54          (1) A participating employer shall:
             55          (a) maintain records necessary to calculate benefits under this title and other records
             56      necessary for proper administration of this title as required by the office[.]; and
             57          (b) maintain records that indicate whether an employee is receiving:


             58          (i) a benefit under state or federal law that, under Subsection 49-12-102 (1)(b)(vi) or
             59      (vii), is excluded from the definition of benefits normally provided for purposes of Chapter 12,
             60      Public Employees' Contributory Retirement Act, Chapter 13, Public Employees'
             61      Noncontributory Retirement Act, or Chapter 22, New Public Employees' Tier II Contributory
             62      Retirement Act; or
             63          (ii) a benefit under a benefit package generally offered to similarly situated employees.
             64          (2) A participating employer shall maintain the records required under Subsection (1)
             65      until the earliest of:
             66          (a) three years after the date of retirement of the employee from a system or plan;
             67          (b) three years after the date of death of the employee; or
             68          (c) 65 years from the date of employment with the participating employer.
             69          (3) A participating employer shall be liable to the office for:
             70          (a) any liabilities and expenses, including administrative expenses and the cost of
             71      increased benefits to members, resulting from the participating employer's failure to maintain
             72      records under this section; and
             73          (b) a penalty equal to 1% of the participating employer's last month's contributions.
             74          (4) The executive director may waive all or any part of the interest, penalties, expenses,
             75      and fees if the executive director finds there were extenuating circumstances surrounding the
             76      participating employer's failure to comply with this section.
             77          (5) The executive director may estimate the length of service, compensation, or age of
             78      any member, if that information is not contained in the records.
             79          (6) (a) A participating employer shall enroll an employee, make reports, submit
             80      contributions, and provide other requested information electronically in a manner approved by
             81      the office.
             82          (b) A participating employer shall treat any information provided electronically or
             83      otherwise by the office as subject to the confidentiality provisions of this title.
             84          Section 2. Section 49-11-616 is amended to read:
             85           49-11-616. Benefits information.


             86          (1) The office shall provide written general information to each participating employer
             87      concerning benefits available under this title.
             88          (2) (a) A participating employer shall provide the information under Subsection (1) to
             89      each eligible employee:
             90          (i) immediately upon[: (i)] termination of service[; (ii)], leave of absence[; (iii)],
             91      commencement of long-term disability benefits[; or (iv)], or retirement[.]; and
             92          (ii) in person or, if the employee is unavailable to receive the information in person, by
             93      mailing the information to the employee's last known address.
             94          (b) (i) Each participating employer shall maintain the records necessary to demonstrate
             95      that [each employee has received] the employer has provided the information outlined in
             96      Subsection (1) as required in Subsection (2)(a).
             97          (ii) The records shall be made available to the office upon request.
             98          (3) (a) The office shall provide each participating employer with a form to be signed by
             99      each employee [which verifies] to verify that the employee has been given in person the
             100      information required by this section.
             101          (b) A copy of the signed form shall be immediately forwarded to the office by the
             102      participating employer or the employee.
             103          (c) If an employer provides information under Subsection (1) by mail as provided in
             104      Subsection (2)(a)(ii), the employer shall:
             105          (i) indicate on the form that the information was mailed to the employee and the
             106      address to which the information was mailed; and
             107          (ii) immediately forward the form to the office.
             108          Section 3. Section 49-12-102 is amended to read:
             109           49-12-102. Definitions.
             110          As used in this chapter:
             111          (1) "Benefits normally provided":
             112          (a) means a benefit offered by an employer, including:
             113          (i) a leave benefit of any kind;


             114          (ii) insurance coverage of any kind if the employer pays some or all of the premium for
             115      the coverage; and
             116          (iii) a retirement benefit of any kind if the employer pays some or all of the cost of the
             117      benefit; and
             118          (b) does not include:
             119          (i) a payment for Social Security;
             120          (ii) workers' compensation insurance;
             121          (iii) unemployment insurance;
             122          (iv) a payment for Medicare;
             123          (v) a payment or insurance required by federal or state law that is similar to a payment
             124      or insurance listed in Subsection (1)(b)(i), (ii), (iii), or (iv);
             125          (vi) any other benefit that state or federal law requires an employer to provide an
             126      employee who would not otherwise be eligible to receive the benefit; or
             127          (vii) any benefit that an employer provides an employee in order to avoid a penalty or
             128      tax under the Patient Protection and Affordable Care Act, Pub. L. No. 111-148 and the Health
             129      Care Education Reconciliation Act of 2010, Pub. L. No. 111-152, and related federal
             130      regulations, including a penalty imposed by Internal Revenue Code, Section 4980H.
             131          [(1) (a) Except as provided in Subsection (1)(c), "compensation"]
             132          (2) (a) "Compensation" means, except as provided in Subsection (2)(c), the total
             133      amount of payments made by a participating employer to a member of this system for services
             134      rendered to the participating employer, including:
             135          (i) bonuses;
             136          (ii) cost-of-living adjustments;
             137          (iii) other payments currently includable in gross income and that are subject to Social
             138      Security deductions, including any payments in excess of the maximum amount subject to
             139      deduction under Social Security law;
             140          (iv) amounts that the member authorizes to be deducted or reduced for salary deferral
             141      or other benefits authorized by federal law; and


             142          (v) member contributions.
             143          (b) "Compensation" for purposes of this chapter may not exceed the amount allowed
             144      under Internal Revenue Code, Section 401(a)(17).
             145          (c) "Compensation" does not include:
             146          (i) the monetary value of remuneration paid in kind, including a residence or use of
             147      equipment;
             148          (ii) the cost of any employment benefits paid for by the participating employer;
             149          (iii) compensation paid to a temporary employee, an exempt employee, or an employee
             150      otherwise ineligible for service credit;
             151          (iv) any payments upon termination, including accumulated vacation, sick leave
             152      payments, severance payments, compensatory time payments, or any other special payments; or
             153          (v) any allowances or payments to a member for costs or expenses paid by the
             154      participating employer, including automobile costs, uniform costs, travel costs, tuition costs,
             155      housing costs, insurance costs, equipment costs, and dependent care costs.
             156          (d) The executive director may determine if a payment not listed under this Subsection
             157      [(1)] (2) falls within the definition of compensation.
             158          [(2)] (3) "Final average salary" means the amount computed by averaging the highest
             159      five years of annual compensation preceding retirement subject to Subsections [(2)] (3)(a), (b),
             160      (c), and (d).
             161          (a) Except as provided in Subsection [(2)] (3)(b), the percentage increase in annual
             162      compensation in any one of the years used may not exceed the previous year's compensation by
             163      more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
             164      of the dollar during the previous year, as measured by a United States Bureau of Labor
             165      Statistics Consumer Price Index average as determined by the board.
             166          (b) In cases where the participating employer provides acceptable documentation to the
             167      office, the limitation in Subsection [(2)] (3)(a) may be exceeded if:
             168          (i) the member has transferred from another agency; or
             169          (ii) the member has been promoted to a new position.


             170          (c) If the member retires more than six months from the date of termination of
             171      employment, the member is considered to have been in service at the member's last rate of pay
             172      from the date of the termination of employment to the effective date of retirement for purposes
             173      of computing the member's final average salary only.
             174          (d) If the member has less than five years of service credit in this system, final average
             175      salary means the average annual compensation paid to the member during the full period of
             176      service credit.
             177          [(3)] (4) "Participating employer" means an employer which meets the participation
             178      requirements of Sections 49-12-201 and 49-12-202 .
             179          [(4)] (5) (a) "Regular full-time employee" means an employee whose term of
             180      employment for a participating employer contemplates continued employment during a fiscal
             181      or calendar year and whose employment normally requires an average of 20 hours or more per
             182      week, except as modified by the board, and who receives benefits normally provided by the
             183      participating employer.
             184          (b) "Regular full-time employee" includes:
             185          (i) a teacher whose term of employment for a participating employer contemplates
             186      continued employment during a school year and who teaches half-time or more;
             187          (ii) a classified school employee whose employment normally requires an average of
             188      20 hours per week or more for a participating employer, regardless of benefits provided;
             189          (iii) an officer, elective or appointive, who earns $500 or more per month, indexed as
             190      of January 1, 1990, as provided in Section 49-12-407 ;
             191          (iv) a faculty member or employee of an institution of higher education who is
             192      considered full-time by that institution of higher education; and
             193          (v) an individual who otherwise meets the definition of this Subsection [(4)] (5) who
             194      performs services for a participating employer through a professional employer organization or
             195      similar arrangement.
             196          [(5)] (6) "System" means the Public Employees' Contributory Retirement System
             197      created under this chapter.


             198          [(6)] (7) "Years of service credit" means:
             199          (a) a period, consisting of 12 full months as determined by the board;
             200          (b) a period determined by the board, whether consecutive or not, during which a
             201      regular full-time employee performed services for a participating employer, including any time
             202      the regular full-time employee was absent on a paid leave of absence granted by a participating
             203      employer or was absent in the service of the United States government on military duty as
             204      provided by this chapter; or
             205          (c) the regular school year consisting of not less than eight months of full-time service
             206      for a regular full-time employee of an educational institution.
             207          Section 4. Section 49-13-102 is amended to read:
             208           49-13-102. Definitions.
             209          As used in this chapter:
             210          (1) "Benefits normally provided" has the same meaning as defined in Section
             211      49-12-102 .
             212          [(1)] (2) (a) Except as provided in Subsection [(1)] (2)(c), "compensation" means the
             213      total amount of payments made by a participating employer to a member of this system for
             214      services rendered to the participating employer, including:
             215          (i) bonuses;
             216          (ii) cost-of-living adjustments;
             217          (iii) other payments currently includable in gross income and that are subject to Social
             218      Security deductions, including any payments in excess of the maximum amount subject to
             219      deduction under Social Security law; and
             220          (iv) amounts that the member authorizes to be deducted or reduced for salary deferral
             221      or other benefits authorized by federal law.
             222          (b) "Compensation" for purposes of this chapter may not exceed the amount allowed
             223      under Internal Revenue Code, Section 401(a)(17).
             224          (c) "Compensation" does not include:
             225          (i) the monetary value of remuneration paid in kind, including a residence or use of


             226      equipment;
             227          (ii) the cost of any employment benefits paid for by the participating employer;
             228          (iii) compensation paid to a temporary employee, an exempt employee, or an employee
             229      otherwise ineligible for service credit;
             230          (iv) any payments upon termination, including accumulated vacation, sick leave
             231      payments, severance payments, compensatory time payments, or any other special payments; or
             232          (v) any allowances or payments to a member for costs or expenses paid by the
             233      participating employer, including automobile costs, uniform costs, travel costs, tuition costs,
             234      housing costs, insurance costs, equipment costs, and dependent care costs.
             235          (d) The executive director may determine if a payment not listed under this Subsection
             236      [(1)] (2) falls within the definition of compensation.
             237          [(2)] (3) "Final average salary" means the amount computed by averaging the highest
             238      three years of annual compensation preceding retirement subject to the following:
             239          (a) Except as provided in Subsection [(2)] (3)(b), the percentage increase in annual
             240      compensation in any one of the years used may not exceed the previous year's compensation by
             241      more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
             242      of the dollar during the previous year, as measured by a United States Bureau of Labor
             243      Statistics Consumer Price Index average as determined by the board.
             244          (b) In cases where the participating employer provides acceptable documentation to the
             245      office, the limitation in Subsection [(2)] (3)(a) may be exceeded if:
             246          (i) the member has transferred from another agency; or
             247          (ii) the member has been promoted to a new position.
             248          (c) If the member retires more than six months from the date of termination of
             249      employment and for purposes of computing the member's final average salary only, the
             250      member is considered to have been in service at his last rate of pay from the date of the
             251      termination of employment to the effective date of retirement.
             252          [(3)] (4) "Participating employer" means an employer which meets the participation
             253      requirements of Sections 49-13-201 and 49-13-202 .


             254          [(4)] (5) (a) "Regular full-time employee" means an employee whose term of
             255      employment for a participating employer contemplates continued employment during a fiscal
             256      or calendar year and whose employment normally requires an average of 20 hours or more per
             257      week, except as modified by the board, and who receives benefits normally provided by the
             258      participating employer.
             259          (b) "Regular full-time employee" includes:
             260          (i) a teacher whose term of employment for a participating employer contemplates
             261      continued employment during a school year and who teaches half-time or more;
             262          (ii) a classified school employee whose employment normally requires an average of
             263      20 hours per week or more for a participating employer, regardless of benefits provided;
             264          (iii) an officer, elective or appointive, who earns $500 or more per month, indexed as
             265      of January 1, 1990, as provided in Section 49-13-407 ;
             266          (iv) a faculty member or employee of an institution of higher education who is
             267      considered full-time by that institution of higher education; and
             268          (v) an individual who otherwise meets the definition of this Subsection (4) who
             269      performs services for a participating employer through a professional employer organization or
             270      similar arrangement.
             271          [(5)] (6) "System" means the Public Employees' Noncontributory Retirement System.
             272          [(6)] (7) "Years of service credit" means:
             273          (a) a period, consisting of 12 full months as determined by the board;
             274          (b) a period determined by the board, whether consecutive or not, during which a
             275      regular full-time employee performed services for a participating employer, including any time
             276      the regular full-time employee was absent on a paid leave of absence granted by a participating
             277      employer or was absent in the service of the United States government on military duty as
             278      provided by this chapter; or
             279          (c) the regular school year consisting of not less than eight months of full-time service
             280      for a regular full-time employee of an educational institution.
             281          Section 5. Section 49-22-102 is amended to read:


             282           49-22-102. Definitions.
             283          As used in this chapter:
             284          (1) "Benefits normally provided" has the same meaning as defined in Section
             285      49-12-102 .
             286          [(1) (a) Except as provided in Subsection (1)(c), "compensation"]
             287          (2) (a) "Compensation" means, except as provided in Subsection (2)(c), the total
             288      amount of payments made by a participating employer to a member of this system for services
             289      rendered to the participating employer, including:
             290          (i) bonuses;
             291          (ii) cost-of-living adjustments;
             292          (iii) other payments currently includable in gross income and that are subject to Social
             293      Security deductions, including any payments in excess of the maximum amount subject to
             294      deduction under Social Security law;
             295          (iv) amounts that the member authorizes to be deducted or reduced for salary deferral
             296      or other benefits authorized by federal law; and
             297          (v) member contributions.
             298          (b) "Compensation" for purposes of this chapter may not exceed the amount allowed
             299      under Internal Revenue Code, Section 401(a)(17).
             300          (c) "Compensation" does not include:
             301          (i) the monetary value of remuneration paid in kind, including a residence or use of
             302      equipment;
             303          (ii) the cost of any employment benefits paid for by the participating employer;
             304          (iii) compensation paid to a temporary employee or an employee otherwise ineligible
             305      for service credit;
             306          (iv) any payments upon termination, including accumulated vacation, sick leave
             307      payments, severance payments, compensatory time payments, or any other special payments; or
             308          (v) any allowances or payments to a member for costs or expenses paid by the
             309      participating employer, including automobile costs, uniform costs, travel costs, tuition costs,


             310      housing costs, insurance costs, equipment costs, and dependent care costs.
             311          (d) The executive director may determine if a payment not listed under this Subsection
             312      [(1)] (2) falls within the definition of compensation.
             313          [(2)] (3) "Corresponding Tier I system" means the system or plan that would have
             314      covered the member if the member had initially entered employment before July 1, 2011.
             315          [(3)] (4) "Final average salary" means the amount computed by averaging the highest
             316      five years of annual compensation preceding retirement subject to Subsections [(3)] (4)(a), (b),
             317      (c), and (d).
             318          (a) Except as provided in Subsection [(3)] (4)(b), the percentage increase in annual
             319      compensation in any one of the years used may not exceed the previous year's compensation by
             320      more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
             321      of the dollar during the previous year, as measured by a United States Bureau of Labor
             322      Statistics Consumer Price Index average as determined by the board.
             323          (b) In cases where the participating employer provides acceptable documentation to the
             324      office, the limitation in Subsection [(3)] (4)(a) may be exceeded if:
             325          (i) the member has transferred from another agency; or
             326          (ii) the member has been promoted to a new position.
             327          (c) If the member retires more than six months from the date of termination of
             328      employment, the member is considered to have been in service at the member's last rate of pay
             329      from the date of the termination of employment to the effective date of retirement for purposes
             330      of computing the member's final average salary only.
             331          (d) If the member has less than five years of service credit in this system, final average
             332      salary means the average annual compensation paid to the member during the full period of
             333      service credit.
             334          [(4)] (5) "Participating employer" means an employer which meets the participation
             335      requirements of:
             336          (a) Sections 49-12-201 and 49-12-202 ;
             337          (b) Sections 49-13-201 and 49-13-202 ;


             338          (c) Section 49-19-201 ; or
             339          (d) Section 49-22-201 or 49-22-202 .
             340          [(5)] (6) (a) "Regular full-time employee" means an employee whose term of
             341      employment for a participating employer contemplates continued employment during a fiscal
             342      or calendar year and whose employment normally requires an average of 20 hours or more per
             343      week, except as modified by the board, and who receives benefits normally provided by the
             344      participating employer.
             345          (b) "Regular full-time employee" includes:
             346          (i) a teacher whose term of employment for a participating employer contemplates
             347      continued employment during a school year and who teaches half-time or more;
             348          (ii) a classified school employee whose employment normally requires an average of
             349      20 hours per week or more for a participating employer, regardless of benefits provided;
             350          (iii) an appointive officer whose appointed position is full-time as certified by the
             351      participating employer;
             352          (iv) the governor, the lieutenant governor, the state auditor, the state treasurer, the
             353      attorney general, and a state legislator;
             354          (v) an elected official not included under Subsection [(5)] (6)(b)(iv) whose elected
             355      position is full-time as certified by the participating employer;
             356          (vi) a faculty member or employee of an institution of higher education who is
             357      considered full-time by that institution of higher education; and
             358          (vii) an individual who otherwise meets the definition of this Subsection [(5)] (6) who
             359      performs services for a participating employer through a professional employer organization or
             360      similar arrangement.
             361          (c) "Regular full-time employee" does not include:
             362          (i) a firefighter service employee as defined in Section 49-23-102 ; or
             363          (ii) a public safety service employee as defined in Section 49-23-102 .
             364          [(6)] (7) "System" means the New Public Employees' Tier II Contributory Retirement
             365      System created under this chapter.


             366          [(7)] (8) "Years of service credit" means:
             367          (a) a period, consisting of 12 full months as determined by the board;
             368          (b) a period determined by the board, whether consecutive or not, during which a
             369      regular full-time employee performed services for a participating employer, including any time
             370      the regular full-time employee was absent on a paid leave of absence granted by a participating
             371      employer or was absent in the service of the United States government on military duty as
             372      provided by this chapter; or
             373          (c) the regular school year consisting of not less than eight months of full-time service
             374      for a regular full-time employee of an educational institution.
             375          Section 6. Section 67-19-3 is amended to read:
             376           67-19-3. Definitions.
             377          As used in this chapter:
             378          (1) "Agency" means any department or unit of Utah state government with authority to
             379      employ personnel.
             380          (2) "Career service" means positions under schedule B as defined in Section 67-19-15 .
             381          (3) "Career service employee" means an employee who has successfully completed a
             382      probationary period of service in a position covered by the career service.
             383          (4) "Career service status" means status granted to employees who successfully
             384      complete probationary periods for competitive career service positions.
             385          (5) "Classified service" means those positions subject to the classification and
             386      compensation provisions of Section 67-19-12 .
             387          (6) "Controlled substance" means controlled substance as defined in Section 58-37-2 .
             388          (7) (a) "Demotion" means a disciplinary action resulting in a reduction of an
             389      employee's current actual wage.
             390          (b) "Demotion" does not mean:
             391          (i) a nondisciplinary movement of an employee to another position without a reduction
             392      in the current actual wage; or
             393          (ii) a reclassification of an employee's position under the provisions of Subsection


             394      67-19-12 (3) and rules made by the department.
             395          (8) "Department" means the Department of Human Resource Management.
             396          (9) "Disability" means a physical or mental disability as defined and protected under
             397      the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
             398          (10) "Employee" means any individual in a paid status covered by the career service or
             399      classified service provisions of this chapter.
             400          (11) "Examining instruments" means written or other types of proficiency tests.
             401          (12) "Executive director," except where otherwise specified, means the executive
             402      director of the Department of Human Resource Management.
             403          (13) "Human resource function" means those duties and responsibilities specified:
             404          (a) under Section 67-19-6 ;
             405          (b) under rules of the department; and
             406          (c) under other state or federal statute.
             407          (14) "Market comparability adjustment" means a salary range adjustment determined
             408      necessary through a market survey of salary ranges of a reasonable cross section of comparable
             409      benchmark positions in private and public employment.
             410          (15) "Probationary employee" means an employee serving a probationary period in a
             411      career service position but who does not have career service status.
             412          (16) "Probationary period" means that period of time determined by the department
             413      that an employee serves in a career service position as part of the hiring process before career
             414      service status is granted to the employee.
             415          (17) "Probationary status" means the status of an employee between the employee's
             416      hiring and the granting of career service status.
             417          (18) "Temporary employee" means career service exempt employees [on schedule IN
             418      or TL under Section 67-19-15 ] described in Subsection 67-19-15 (1)(p).
             419          (19) "Total compensation" means salaries and wages, bonuses, paid leave, group
             420      insurance plans, retirement, and all other benefits offered to state employees as inducements to
             421      work for the state.


             422          Section 7. Section 67-19-12 is amended to read:
             423           67-19-12. State pay plans -- Applicability of section -- Exemptions -- Duties of the
             424      executive director.
             425          (1) (a) This section, and the rules adopted by the department to implement this section,
             426      apply to each career and noncareer employee not specifically exempted under Subsection (2).
             427          (b) If not exempted under Subsection (2), an employee is considered to be in classified
             428      service.
             429          (2) The following employees are exempt from this section:
             430          (a) members of the Legislature and legislative employees;
             431          (b) members of the judiciary and judicial employees;
             432          (c) elected members of the executive branch and employees under schedule AC as
             433      provided under Subsection 67-19-15 (1)(c);
             434          (d) employees of the State Board of Education who are licensed by the State Board of
             435      Education;
             436          (e) officers, faculty, and other employees of state institutions of higher education;
             437          (f) employees in a position that is specified by statute to be exempt from this
             438      Subsection (2);
             439          (g) employees in the Office of the Attorney General;
             440          (h) department heads and other persons appointed by the governor under statute;
             441          (i) exempt employees as provided under Subsection 67-19-15 (1)(l);
             442          (j) employees of the Utah Schools for the Deaf and the Blind who are:
             443          (i) educators as defined by Section 53A-25b-102 ; or
             444          (ii) educational interpreters as classified by the department; and
             445          (k) temporary employees [under schedule IN or TL as provided under Subsections ]
             446      described in Subsection 67-19-15 (1)[(o) and ](p).
             447          (3) (a) The executive director shall prepare, maintain, and revise a position
             448      classification plan for each employee position not exempted under Subsection (2) to provide
             449      equal pay for equal work.


             450          (b) Classification of positions shall be based upon similarity of duties performed and
             451      responsibilities assumed, so that the same job requirements and the same salary range may be
             452      applied equitably to each position in the same class.
             453          (c) The executive director shall allocate or reallocate the position of each employee in
             454      classified service to one of the classes in the classification plan.
             455          (d) (i) The department shall conduct periodic studies and desk audits to provide that the
             456      classification plan remains reasonably current and reflects the duties and responsibilities
             457      assigned to and performed by employees.
             458          (ii) The executive director shall determine the schedule for studies and desk audits after
             459      considering factors such as changes in duties and responsibilities of positions or agency
             460      reorganizations.
             461          (4) (a) With the approval of the governor, the executive director shall develop and
             462      adopt pay plans for each position in classified service.
             463          (b) The executive director shall design each pay plan to achieve, to the degree that
             464      funds permit, comparability of state salary ranges to salary ranges used by private enterprise
             465      and other public employment for similar work.
             466          (c) The executive director shall adhere to the following in developing each pay plan:
             467          (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
             468      differential among the various classes of positions in the classification plan.
             469          (ii) (A) The executive director shall assign each class of positions in the classification
             470      plan to a salary range and shall set the width of the salary range to reflect the normal growth
             471      and productivity potential of employees in that class.
             472          (B) The width of the ranges need not be uniform for all classes of positions in the plan.
             473          (iii) (A) The executive director shall issue rules for the administration of pay plans.
             474          (B) The executive director shall issue rules providing for salary adjustments.
             475          (iv) Merit increases shall be granted, on a uniform and consistent basis in accordance
             476      with appropriations made by the Legislature, to employees who receive a rating of "successful"
             477      or higher in an annual evaluation of their productivity and performance.


             478          (v) By October 31 of each year, the executive director shall submit market
             479      comparability adjustments to the director of the Governor's Office of Planning and Budget for
             480      consideration to be included as part of the affected agency's base budgets.
             481          (vi) By October 31 of each year, the executive director shall recommend a
             482      compensation package to the governor.
             483          (vii) (A) Adjustments shall incorporate the results of a total compensation market
             484      survey of salary ranges and benefits of a reasonable cross section of comparable benchmark
             485      positions in private and public employment in the state.
             486          (B) The survey may also study comparable unusual positions requiring recruitment in
             487      other states.
             488          (C) The executive director may cooperate with other public and private employers in
             489      conducting the survey.
             490          (viii) (A) The executive director shall establish criteria to assure the adequacy and
             491      accuracy of the survey and shall use methods and techniques similar to and consistent with
             492      those used in private sector surveys.
             493          (B) Except as provided under Sections 67-19-12.1 and 67-19-12.3 , the survey shall
             494      include a reasonable cross section of employers.
             495          (C) The executive director may cooperate with or participate in any survey conducted
             496      by other public and private employers.
             497          (D) The executive director shall obtain information for the purpose of constructing the
             498      survey from the Division of Workforce Information and Payment Services and shall include
             499      employer name, number of persons employed by the employer, employer contact information
             500      and job titles, county code, and salary if available.
             501          (E) The department shall acquire and protect the needed records in compliance with the
             502      provisions of Section 35A-4-312 .
             503          (ix) The establishing of a salary range is a nondelegable activity and is not appealable
             504      under the grievance procedures of Sections 67-19-30 through 67-19-32 , Chapter 19a,
             505      Grievance Procedures, or otherwise.


             506          (x) The governor shall:
             507          (A) consider salary adjustments recommended under Subsection (4)(c)(vi) in preparing
             508      the executive budget and shall recommend the method of distributing the adjustments;
             509          (B) submit compensation recommendations to the Legislature; and
             510          (C) support the recommendation with schedules indicating the cost to individual
             511      departments and the source of funds.
             512          (xi) If funding is approved by the Legislature in a general appropriations act, the
             513      adjustments take effect on the July 1 following the enactment.
             514          (5) (a) The executive director shall issue rules for the granting of incentive awards,
             515      including awards for cost saving actions, awards for commendable actions by an employee, or
             516      a market-based award to attract or retain employees.
             517          (b) An agency may not grant a market-based award unless the award is previously
             518      approved by the department.
             519          (c) In accordance with Subsection (5)(b), an agency requesting the department's
             520      approval of a market-based award shall submit a request and documentation, subject to
             521      Subsection (5)(d), to the department.
             522          (d) In the documentation required in Subsection (5)(c), the requesting agency shall
             523      identify for the department:
             524          (i) any benefit the market-based award would provide for the agency, including:
             525          (A) budgetary advantages; or
             526          (B) recruitment advantages;
             527          (ii) a mission critical need to attract or retain unique or hard to find skills in the market;
             528      or
             529          (iii) any other advantage the agency would gain through the utilization of a
             530      market-based award.
             531          (6) (a) The executive director shall regularly evaluate the total compensation program
             532      of state employees in the classified service.
             533          (b) The department shall determine if employee benefits are comparable to those


             534      offered by other private and public employers using information from:
             535          (i) the most recent edition of the Employee Benefits Survey Data conducted by the U.S.
             536      Chamber of Commerce Research Center; or
             537          (ii) the most recent edition of a nationally recognized benefits survey.
             538          (7) (a) The executive director shall submit proposals for a state employee
             539      compensation plan to the governor by October 31 of each year, setting forth findings and
             540      recommendations affecting employee compensation.
             541          (b) The governor shall consider the executive director's proposals in preparing budget
             542      recommendations for the Legislature.
             543          (c) The governor's budget proposals to the Legislature shall include a specific
             544      recommendation on employee compensation.
             545          Section 8. Section 67-19-14 is amended to read:
             546           67-19-14. Sick leave -- Definitions -- Unused sick days retirement programs --
             547      Rulemaking.
             548          (1) As used in this section through Section 67-19-14.4 :
             549          (a) "Continuing medical and life insurance benefits" means the state provided policy of
             550      medical insurance and the state provided portion of a policy of life insurance, each offered at
             551      the same:
             552          (i) benefit level and the same proportion of state/member participation in the total
             553      premium costs as an active member as defined in Section 49-11-102 ; and
             554          (ii) coverage level for a member, two person, or family policy as provided to the
             555      member at the time of retirement.
             556          (b) "Converted sick leave" means leave that has been converted from unused sick leave
             557      in accordance with Section 67-19-14.1 which may be used by an employee in the same manner
             558      as:
             559          (i) annual leave;
             560          (ii) sick leave; or
             561          (iii) unused accumulated sick leave after the employee's retirement for the purchase of


             562      continuing medical and life insurance benefits under Sections 67-19-14.2 , 67-19-14.3 , and
             563      67-19-14.4 .
             564          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             565      executive director shall make rules:
             566          (a) for the procedures to implement the provisions of this section through Section
             567      67-19-14.4 [.]; and
             568          (b) to establish the maximum number of hours of converted sick leave an employee
             569      may accrue.
             570          (3) The Division of Finance shall develop and maintain a system of accounting for
             571      employee sick leave and converted sick leave as necessary to implement the provisions of this
             572      section through Section 67-19-14.4 .
             573          Section 9. Section 67-19-15 is amended to read:
             574           67-19-15. Career service -- Exempt positions -- Schedules for civil service
             575      positions -- Coverage of career service provisions.
             576          (1) Except as otherwise provided by law or by rules and regulations established for
             577      federally aided programs, the following positions are exempt from the career service provisions
             578      of this chapter and are designated under the following schedules:
             579          (a) schedule AA includes the governor, members of the Legislature, and all other
             580      elected state officers;
             581          (b) schedule AB includes appointed executives and board or commission executives
             582      enumerated in Section 67-22-2 ;
             583          (c) schedule AC includes all employees and officers in:
             584          (i) the office and at the residence of the governor;
             585          (ii) the Utah Science Technology and Research Initiative (USTAR);
             586          (iii) the Public Lands Policy Coordinating Council;
             587          (iv) the Office of the State Auditor; and
             588          (v) the Office of the State Treasurer;
             589          (d) schedule AD includes employees who:


             590          (i) are in a confidential relationship to an agency head or commissioner; and
             591          (ii) report directly to, and are supervised by, a department head, commissioner, or
             592      deputy director of an agency or its equivalent;
             593          (e) schedule AG includes employees in the Office of the Attorney General who are
             594      under their own career service pay plan under Sections 67-5-7 through 67-5-13 ;
             595          (f) schedule AH includes:
             596          (i) teaching staff of all state institutions; and
             597          (ii) employees of the Utah Schools for the Deaf and the Blind who are:
             598          (A) educational interpreters as classified by the department; or
             599          (B) educators as defined by Section 53A-25b-102 ;
             600          (g) schedule AN includes employees of the Legislature;
             601          (h) schedule AO includes employees of the judiciary;
             602          (i) schedule AP includes all judges in the judiciary;
             603          (j) schedule AQ includes:
             604          (i) members of state and local boards and councils appointed by the governor and
             605      governing bodies of agencies;
             606          (ii) other local officials serving in an ex officio capacity; and
             607          (iii) officers, faculty, and other employees of state universities and other state
             608      institutions of higher education;
             609          (k) schedule AR includes employees in positions that involve responsibility:
             610          (i) for determining policy;
             611          (ii) for determining the way in which a policy is carried out; or
             612          (iii) of a type not appropriate for career service, as determined by the agency head with
             613      the concurrence of the executive director;
             614          (l) schedule AS includes any other employee:
             615          (i) whose appointment is required by statute to be career service exempt;
             616          (ii) whose agency is not subject to this chapter; or
             617          (iii) whose agency has authority to make rules regarding the performance,


             618      compensation, and bonuses for its employees;
             619          (m) schedule AT includes employees of the Department of Technology Services,
             620      designated as executive/professional positions by the executive director of the Department of
             621      Technology Services with the concurrence of the executive director;
             622          (n) schedule AU includes patients and inmates employed in state institutions;
             623          [(o) schedule IN includes employees who are:]
             624          [(i) hired to work part time on an indefinite basis; and]
             625          [(ii) considered to be temporary noncareer employees;]
             626          [(p) schedule TL includes employees who are:]
             627          [(i) hired to work on a time-limited basis; and]
             628          [(ii) considered to be temporary noncareer employees; and]
             629          [(q)] (o) employees of the Department of Workforce Services, designated as schedule
             630      AW:
             631          (i) who are temporary employees that are federally funded and are required to work
             632      under federally qualified merit principles as certified by the director; or
             633          (ii) for whom substantially all of their work is repetitive, measurable, or transaction
             634      based, and who voluntarily apply for and are accepted by the Department of Workforce
             635      Services to work in a pay for performance program designed by the Department of Workforce
             636      Services with the concurrence of the executive director[.]; and
             637          (p) for employees in positions that are temporary, seasonal, time limited, funding
             638      limited, or variable hour in nature, under schedule codes and parameters established by the
             639      department by administrative rule.
             640          (2) The civil service shall consist of two schedules as follows:
             641          (a) (i) Schedule A is the schedule consisting of positions under Subsection (1).
             642          (ii) Removal from any appointive position under schedule A, unless otherwise
             643      regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
             644          (b) Schedule B is the competitive career service schedule, consisting of:
             645          (i) all positions filled through competitive selection procedures as defined by the


             646      executive director; or
             647          (ii) positions filled through a department approved on the job examination intended to
             648      appoint a qualified person with a disability.
             649          (3) (a) The executive director, after consultation with the heads of concerned executive
             650      branch departments and agencies and with the approval of the governor, shall allocate positions
             651      to the appropriate schedules under this section.
             652          (b) Agency heads shall make requests and obtain approval from the executive director
             653      before changing the schedule assignment and tenure rights of any position.
             654          (c) Unless the executive director's decision is reversed by the governor, when the
             655      executive director denies an agency's request, the executive director's decision is final.
             656          (4) (a) Compensation for employees of the Legislature shall be established by the
             657      directors of the legislative offices in accordance with Section 36-12-7 .
             658          (b) Compensation for employees of the judiciary shall be established by the state court
             659      administrator in accordance with Section 78A-2-107 .
             660          (c) Compensation for officers, faculty, and other employees of state universities and
             661      institutions of higher education shall be established as provided in Title 53B, Chapters 1,
             662      Governance, Powers, Rights, and Responsibilities, and 2, Institutions of Higher Education.
             663          (d) Unless otherwise provided by law, compensation for all other schedule A
             664      employees shall be established by their appointing authorities, within ranges approved by, and
             665      after consultation with the executive director of the Department of Human Resource
             666      Management.
             667          (5) An employee who is in a position designated schedule AC and who holds career
             668      service status on June 30, 2010, shall retain the career service status if the employee:
             669          (a) remains in the position that the employee is in on June 30, 2010; and
             670          (b) does not elect to convert to career service exempt status in accordance with a rule
             671      made by the department.
             672          Section 10. Section 67-19-15.6 is amended to read:
             673           67-19-15.6. Longevity salary increases.


             674          (1) Except for those employees in schedule AB, [IN, or TL] as provided under Section
             675      67-19-15, and employees described in Subsection 67-19-15 (1)(p), an employee shall receive an
             676      increase in salary of 2.75% if that employee:
             677          (a) holds a position under schedule A or B as provided under Section 67-19-15 ;
             678          (b) has reached the maximum of the salary range in the position classification;
             679          (c) has been employed with the state for eight years; and
             680          (d) is rated eligible in job performance under guidelines established by the executive
             681      director.
             682          (2) Any employee who meets the criteria under Subsection (1) is entitled to the same
             683      increase in salary for each additional three years of employment if the employee maintains the
             684      eligibility standards established by the department.
             685          Section 11. Section 67-19-15.7 is amended to read:
             686           67-19-15.7. Promotion -- Reclassification -- Market adjustment.
             687          (1) (a) If an employee is promoted or the employee's position is reclassified to a higher
             688      salary range maximum, the agency shall place the employee within the new range of the
             689      position.
             690          (b) An agency may not set an employee's salary:
             691          (i) higher than the maximum in the new salary range; and
             692          (ii) lower than the minimum in the new salary range of the position.
             693          (c) Except for an employee [under schedule IN or TL under Section] described in
             694      Subsection 67-19-15 (1)(p), the agency shall grant a salary increase of at least 5% to an
             695      employee who is promoted.
             696          (2) An agency shall adjust the salary range for an employee whose salary range is
             697      approved by the Legislature for a market comparability adjustment consistent with Subsection
             698      67-19-12 (4)(c)(v):
             699          (a) at the beginning of the next fiscal year; and
             700          (b) consistent with appropriations made by the Legislature.
             701          (3) Department-initiated revisions in the state classification system that result in


             702      consolidation or reduction of class titles or broadening of pay ranges:
             703          (a) may not be regarded as a reclassification of the position or promotion of the
             704      employee; and
             705          (b) are exempt from the provisions of Subsection (1).
             706          Section 12. Section 67-19a-406 is amended to read:
             707           67-19a-406. Procedural steps to be followed by aggrieved employee -- Hearing
             708      before hearing officer -- Evidentiary and procedural rules.
             709          (1) (a) The administrator shall employ a certified court reporter to record the hearing
             710      and prepare an official transcript of the hearing.
             711          (b) The official transcript of the proceedings and all exhibits, briefs, motions, and
             712      pleadings received by the hearing officer are the official record of the proceeding.
             713          (2) (a) The agency has the burden of proof in all grievances.
             714          (b) The agency must prove the agency's case by substantial evidence.
             715          (3) (a) The hearing officer shall issue a written decision within 20 working days after
             716      the hearing is adjourned.
             717          (b) If the hearing officer does not issue a decision within 20 working days, the agency
             718      that is a party to the grievance is not liable for any claimed back wages or benefits after the date
             719      the decision is due.
             720          (4) The hearing officer may:
             721          (a) not award attorney fees or costs to either party;
             722          (b) close a hearing by complying with the procedures and requirements of Title 52,
             723      Chapter 4, Open and Public Meetings Act;
             724          (c) seal the file and the evidence produced at the hearing if the evidence raises
             725      questions about an employee's character, professional competence, or physical or mental
             726      health;
             727          (d) grant continuances according to rule; and
             728          (e) decide a motion, an issue regarding discovery, or another issue in accordance with
             729      this chapter.


             730          (5) (a) A hearing officer shall affirm, rescind, or modify agency action.
             731          (b) (i) If a hearing officer does not affirm agency action, the hearing officer shall order
             732      back pay and back benefits that the grievant would have received without the agency action.
             733          (ii) An order under Subsection (5)(b)(i) shall include:
             734          (A) reimbursement to the grievant for premiums that the grievant paid for benefits
             735      allowed under the Consolidated Omnibus Reconciliation Act of 1985; and
             736          (B) an offset for any state paid benefits the grievant receives because of the agency
             737      action, including unemployment compensation benefits.
             738          (c) In an order under Subsection (5)(b)(i), a hearing officer may not reduce the amount
             739      of back pay and benefits awarded a grievant because of income that the grievant earns during
             740      the grievance process.
             741          Section 13. Coordinating H.B. 193 with H.B. 24 -- Substantive and superseding
             742      amendments.
             743          If this H.B. 193 and H.B. 24, Utah Retirement System Amendments, both pass and
             744      become law, it is the intent of the Legislature that the amendments to Section 49-11-616 in this
             745      H.B. 193 supersede the amendments to Section 49-11-616 in H.B. 24, when the Office of
             746      Legislative Research and General Counsel prepares the Utah Code database for publication.


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