1     
STATE EMPLOYEE BENEFITS AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lincoln Fillmore

5     
House Sponsor: Brady Brammer

6     

7     LONG TITLE
8     General Description:
9          This bill creates the State Employee Benefits Advisory Commission.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     creates the State Employee Benefits Advisory Commission;
14          ▸     describes the commission's membership, quorum requirements, duties, and other
15     requirements;
16          ▸     establishes reporting requirements for the commission;
17          ▸     provides a sunset date for the commission; and
18          ▸     makes technical and conforming changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          This bill provides a special effective date.
23     Utah Code Sections Affected:
24     AMENDS:
25          63A-17-307, as last amended by Laws of Utah 2022, Chapters 169, 209
26          63I-1-263, as last amended by Laws of Utah 2022, Chapters 23, 34, 68, 153, 218, 236,
27     249, 274, 296, 313, 361, 362, 417, 419, and 472
28     ENACTS:

29          63C-29-101, Utah Code Annotated 1953
30          63C-29-102, Utah Code Annotated 1953
31          63C-29-103, Utah Code Annotated 1953
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 63A-17-307 is amended to read:
35          63A-17-307. State pay plans -- Applicability of section -- Exemptions -- Duties of
36     director.
37          (1) (a) This section, and the rules made by the division under this section, apply to each
38     career and noncareer employee not specifically exempted under Subsection (2).
39          (b) If not exempted under Subsection (2), an employee is considered to be in classified
40     service.
41          (2) The following employees are exempt from this section:
42          (a) members of the Legislature and legislative employees;
43          (b) members of the judiciary and judicial employees;
44          (c) elected members of the executive branch and employees designated as schedule AC
45     as provided under Subsection 63A-17-301(1)(c);
46          (d) employees of the State Board of Education;
47          (e) officers, faculty, and other employees of state institutions of higher education;
48          (f) employees in a position that is specified by statute to be exempt from this
49     Subsection (2);
50          (g) employees in the Office of the Attorney General;
51          (h) department heads and other persons appointed by the governor under statute;
52          (i) schedule AS employees as provided under Subsection 63A-17-301(1)(m);
53          (j) department deputy directors, division directors, and other employees designated as
54     schedule AD as provided under Subsection 63A-17-301(1)(d);
55          (k) employees that determine and execute policy designated as schedule AR as

56     provided under Subsection 63A-17-301(1)(l);
57          (l) teaching staff, educational interpreters, and educators designated as schedule AH as
58     provided under Subsection 63A-17-301(1)(g);
59          (m) temporary employees described in Subsection 63A-17-301(1)(r);
60          (n) patients and inmates designated as schedule AU as provided under Subsection
61     63A-17-301(1)(o) who are employed by state institutions; and
62          (o) members of state and local boards and councils and other employees designated as
63     schedule AQ as provided under Subsection 63A-17-301(1)(k).
64          (3) (a) The director shall prepare, maintain, and revise a position classification plan for
65     each employee position not exempted under Subsection (2) to provide equal pay for equal
66     work.
67          (b) Classification of positions shall be based upon similarity of duties performed and
68     responsibilities assumed, so that the same job requirements and the same salary range, subject
69     to Section 63A-17-112, may be applied equitably to each position in the same class.
70          (c) The director shall allocate or reallocate the position of each employee in classified
71     service to one of the classes in the classification plan.
72          (d) (i) The division shall conduct periodic studies and interviews to provide that the
73     classification plan remains reasonably current and reflects the duties and responsibilities
74     assigned to and performed by employees.
75          (ii) The director shall determine the need for studies and interviews after considering
76     factors such as changes in duties and responsibilities of positions or agency reorganizations.
77          (4) (a) With the approval of the executive director and the governor, the director shall
78     develop and adopt pay plans for each position in classified service.
79          (b) The director shall design each pay plan to achieve, to the degree that funds permit,
80     comparability of state salary ranges to the market using data obtained from private enterprise
81     and other public employment for similar work.
82          (c) The director shall adhere to the following in developing each pay plan:

83          (i) each pay plan shall consist of sufficient salary ranges to:
84          (A) permit adequate salary differential among the various classes of positions in the
85     classification plan; and
86          (B) reflect the normal growth and productivity potential of employees in that class.
87          (ii) The director shall issue rules for the administration of pay plans.
88          (d) The establishing of a salary range is a nondelegable activity and is not appealable
89     under the grievance procedures of Part 6, Grievance Provisions, Title 67, Chapter 19a,
90     Grievance Procedures, or otherwise.
91          (e) The director shall make rules, accordance with Title 63G, Chapter 3, Utah
92     Administrative Rulemaking Act, providing for:
93          (i) agency approved salary adjustments within approved salary ranges, including an
94     administrative salary adjustment; and
95          (ii) structure adjustments that modify salary ranges, including a cost of living
96     adjustment or market comparability adjustment.
97          (5) (a) On or before October 31 of each year, the director shall submit an annual
98     compensation plan to the executive director and the governor for consideration in the executive
99     budget[.] and to the State Employee Benefits Advisory Commission created in Section
100     63C-29-102.
101          (b) The plan described in Subsection (5)(a) may include recommendations, including:
102          (i) salary increases that generally affect employees, including a general increase or
103     merit increase;
104          (ii) salary increases that address compensation issues unique to an agency or
105     occupation;
106          (iii) structure adjustments, including a cost of living adjustment or market
107     comparability adjustment; or
108          (iv) changes to employee benefits.
109          (c) (i) (A) Subject to Subsection (5)(c)(i)(B) or (C), the director shall incorporate the

110     results of a salary survey of a reasonable cross section of comparable positions in private and
111     public employment in the state into the annual compensation plan.
112          (B) The salary survey for a law enforcement officer, as defined in Section 53-13-103, a
113     correctional officer, as defined in Section 53-13-104, or a dispatcher, as defined in Section
114     53-6-102, shall at minimum include the three largest political subdivisions in the state that
115     employ, respectively, comparable positions.
116          (C) The salary survey for an examiner or supervisor described in Title 7, Chapter 1,
117     Part 2, Department of Financial Institutions, shall at minimum include the Federal Deposit
118     Insurance Corporation, Federal Reserve, and National Credit Union Administration.
119          (ii) The director may cooperate with or participate in any survey conducted by other
120     public and private employers.
121          (iii) The director shall obtain information for the purpose of constructing the survey
122     from the Division of Workforce Information and Payment Services and shall include employer
123     name, number of persons employed by the employer, employer contact information and job
124     titles, county code, and salary if available.
125          (iv) The division shall acquire and protect the needed records in compliance with the
126     provisions of Section 35A-4-312.
127          (d) The director may incorporate any other relevant information in the plan described
128     in Subsection (5)(a), including information on staff turnover, recruitment data, or external
129     market trends.
130          (e) The director shall:
131          (i) establish criteria to assure the adequacy and accuracy of data used to make
132     recommendations described in this Subsection (5); and
133          (ii) when preparing recommendations use accepted methodologies and techniques
134     similar to and consistent with those used in the private sector.
135          (f) (i) Upon request and subject to Subsection (5)(f)(ii), the division shall make
136     available foundational information used by the division or director in the drafting of a plan

137     described in Subsection (5)(a), including:
138          (A) demographic and labor market information;
139          (B) information on employee turnover;
140          (C) salary information;
141          (D) information on recruitment; and
142          (E) geographic data.
143          (ii) The division may not provide under Subsection (5)(f)(i) information or other data
144     that is proprietary or otherwise protected under the terms of a contract or by law.
145          (g) The governor shall:
146          (i) consider salary and structure adjustments recommended under Subsection (5)(b) in
147     preparing the executive budget and shall recommend the method of distributing the
148     adjustments;
149          (ii) submit compensation recommendations to the Legislature; and
150          (iii) support the recommendation with schedules indicating the cost to individual
151     departments and the source of funds.
152          (h) If funding is approved by the Legislature in a general appropriations act, the
153     adjustments take effect on the July 1 following the enactment unless otherwise indicated.
154          (6) (a) The director shall make rules, in accordance with Title 63G, Chapter 3, Utah
155     Administrative Rulemaking Act, for the granting of incentive awards, including awards for cost
156     saving actions, awards for commendable actions by an employee, or a market-based award to
157     attract or retain employees.
158          (b) An agency may not grant a market-based award unless the award is previously
159     approved by the division.
160          (c) In accordance with Subsection (6)(b), an agency requesting the division's approval
161     of a market-based award shall submit a request and documentation, subject to Subsection
162     (6)(d), to the division.
163          (d) In the documentation required in Subsection (6)(c), the requesting agency shall

164     identify for the division:
165          (i) any benefit the market-based award would provide for the agency, including:
166          (A) budgetary advantages; or
167          (B) recruitment advantages;
168          (ii) a mission critical need to attract or retain unique or hard to find skills in the market;
169     or
170          (iii) any other advantage the agency would gain through the utilization of a
171     market-based award.
172          (7) (a) The director shall regularly evaluate the total compensation program of state
173     employees in the classified service.
174          (b) The division shall determine if employee benefits are comparable to those offered
175     by other private and public employers using information from:
176          (i) a study conducted by a third-party consultant; or
177          (ii) the most recent edition of a nationally recognized benefits survey.
178          Section 2. Section 63C-29-101 is enacted to read:
179     
CHAPTER 29. STATE EMPLOYEE BENEFITS ADVISORY COMMISSION

180          63C-29-101. Definitions.
181          As used in this chapter:
182          (1) "Annual compensation plan" means the annual compensation plan described in
183     Section 63A-17-307.
184          (2) "Benefits advisory commission" means the State Employee Benefit Advisory
185     Commission created in Section 63C-29-102.
186          (3) "Total compensation" means the same as that term is defined in Section
187     63A-17-102.
188          Section 3. Section 63C-29-102 is enacted to read:
189          63C-29-102. Creation of State Employee Benefits Advisory Commission --
190     Membership.

191          (1) There is created the State Employee Benefits Advisory Commission consisting of
192     the following members:
193          (a) one member of the Senate, appointed by the president of the Senate;
194          (b) one member of the House of Representatives, appointed by the speaker of the
195     House of Representatives;
196          (c) the director of the Division of Human Resource Management, created in Section
197     63A-17-105, or the director's designee;
198          (d) the executive director of the Governor's Office of Planning and Budget, created in
199     Section 63J-4-201, or the executive director's designee;
200          (e) the following four individuals who are not employed by the state or another public
201     entity and are appointed jointly by the president of the Senate and speaker of the House of
202     Representatives:
203          (i) an individual who has experience in health insurance benefits in the private sector;
204          (ii) an individual who has experience in business and employee benefits in the private
205     sector; and
206          (iii) a representative of an organization that represents the interests of state employees;
207     and
208          (f) a representative of the Public Employees' Benefit and Insurance Program, created in
209     Section 49-20-103, appointed by the executive director of the Utah State Retirement Office.
210          (2) (a) The member of the Senate appointed under Subsection (1)(a) is a cochair of the
211     benefits advisory commission.
212          (b) The member of the House of Representatives appointed under Subsection (1)(b) is
213     a cochair of the benefits advisory commission.
214          (3) (a) Each position described in Subsection (1)(e) is for a term of four years.
215          (b) A vacancy in a position appointed under Subsection (1)(a), (b), (e), or (f) shall be
216     filled by appointing a replacement member in the same manner as the member creating the
217     vacancy was appointed under Subsection (1)(a), (b), (e), or (f), respectively.

218          (c) If a position described in Subsection (1)(e) is vacant, the president of the Senate and
219     speaker of the House of Representatives shall jointly appoint the replacement member for the
220     remainder of the unexpired term.
221          (4) (a) A majority of members constitute a quorum.
222          (b) The action of a majority of a quorum constitutes the action of the benefits advisory
223     commission.
224          (5) The benefits advisory commission shall meet as necessary to effectively conduct
225     the commission's business and duties as prescribed by statute, but not less than twice a year.
226          (6) The Division of Human Resource Management shall provide staff support to
227     facilitate the function of the benefits advisory commission and record the benefits advisory
228     commission's action and recommendations.
229          (7) (a) The salary and expenses of a benefits advisory commission member who is a
230     legislator shall be paid in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5,
231     Legislative Compensation and Expenses.
232          (b) A benefits advisory commission member who is not a legislator may not receive
233     compensation or benefits for the member's service on the benefits advisory commission, but
234     may receive per diem and reimbursement for travel expenses incurred as a benefits advisory
235     commission member at the rates established by the Division of Finance under:
236          (i) Sections 63A-3-106 and 63A-3-107; and
237          (ii) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
238          (8) The benefits advisory commission shall comply with the provisions of Title 52,
239     Chapter 4, Open and Public Meetings Act.
240          Section 4. Section 63C-29-103 is enacted to read:
241          63C-29-103. Duties of benefits advisory commission.
242          (1) The benefits advisory commission shall:
243          (a) review the annual compensation plan;
244          (b) review proposed legislation submitted to the benefits advisory commission that

245     amends the health care, leave, or salary benefits for state employees while considering total
246     compensation; and
247          (c) provide recommendations, if any, for the annual compensation plan or legislation
248     described in Subsection (1)(b) that would make total compensation competitive with private
249     sector employees.
250          (2) (a) No later than November 1 of each year, the benefits advisory commission shall
251     submit a written report on the benefits advisory commission's activities and recommendations,
252     if any, for the annual compensation plan and legislation described in Subsection (1)(b) to the
253     Executive Appropriations Committee and the Retirement and Independent Entities Interim
254     Committee.
255          (b) The report submitted under Subsection (2)(a) shall comply with Section 68-3-14.
256          Section 5. Section 63I-1-263 is amended to read:
257          63I-1-263. Repeal dates: Titles 63A to 63N.
258          (1) Subsection 63A-5b-405(5), relating to prioritizing and allocating capital
259     improvement funding, is repealed July 1, 2024.
260          (2) Section 63A-5b-1003, State Facility Energy Efficiency Fund, is repealed July 1,
261     2023.
262          (3) Sections 63A-9-301 and 63A-9-302, related to the Motor Vehicle Review
263     Committee, are repealed July 1, 2023.
264          (4) In relation to the Utah Transparency Advisory Board, on January 1, 2025:
265          (a) Section 63A-18-102 is repealed;
266          (b) Section 63A-18-201 is repealed; and
267          (c) Section 63A-18-202 is repealed.
268          (5) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
269     1, 2028.
270          (6) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
271     2025.

272          (7) Title 63C, Chapter 12, Snake Valley Aquifer Advisory Council, is repealed July 1,
273     2024.
274          (8) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
275     repealed July 1, 2023.
276          (9) Title 63C, Chapter 18, Behavioral Health Crisis Response Commission, is repealed
277     July 1, 2023.
278          (10) Title 63C, Chapter 23, Education and Mental Health Coordinating Council, is
279     repealed July 1, 2026.
280          (11) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
281          (12) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
282          (13) Title 63C, Chapter 29, State Employee Benefits Advisory Commission, is
283     repealed on July 1, 2028.
284          [(13)] (14) Section 63G-6a-805, which creates the Purchasing from Persons with
285     Disabilities Advisory Board, is repealed July 1, 2026.
286          [(14)] (15) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed
287     July 1, 2028.
288          [(15)] (16) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed
289     July 1, 2024.
290          [(16)] (17) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1,
291     2026.
292          [(17)] (18) Subsection 63J-1-602.1(17), relating to the Nurse Home Visiting Restricted
293     Account, is repealed July 1, 2026.
294          [(18)] (19) Subsection 63J-1-602.2(6), referring to dedicated credits to the Utah
295     Marriage Commission, is repealed July 1, 2023.
296          [(19) Subsection 63J-1-602.2(7), referring to the Trip Reduction Program, is repealed
297     July 1, 2022.]
298          (20) Subsection 63J-1-602.2(26), related to the Utah Seismic Safety Commission, is

299     repealed January 1, 2025.
300          (21) Title 63L, Chapter 11, Part 4, Resource Development Coordinating Committee, is
301     repealed July 1, 2027.
302          (22) In relation to the Utah Substance Use and Mental Health Advisory Council, on
303     January 1, 2033:
304          (a) Sections 63M-7-301, 63M-7-302, 63M-7-303, 63M-7-304, and 63M-7-306 are
305     repealed;
306          (b) Section 63M-7-305, the language that states "council" is replaced with
307     "commission";
308          (c) Subsection 63M-7-305(1)(a) is repealed and replaced with:
309          "(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
310          (d) Subsection 63M-7-305(2) is repealed and replaced with:
311          "(2) The commission shall:
312          (a) provide ongoing oversight of the implementation, functions, and evaluation of the
313     Drug-Related Offenses Reform Act; and
314          (b) coordinate the implementation of Section 77-18-104 and related provisions in
315     Subsections 77-18-103(2)(c) and (d).".
316          (23) The Crime Victim Reparations and Assistance Board, created in Section
317     63M-7-504, is repealed July 1, 2027.
318          (24) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
319          (25) Title 63N, Chapter 1b, Part 4, Women in the Economy Subcommittee, is repealed
320     January 1, 2025.
321          (26) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
322          (27) Section 63N-2-512, related to the Hotel Impact Mitigation Fund, is repealed July
323     1, 2028.
324          (28) Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is repealed
325     July 1, 2027.

326          (29) Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant Program, is
327     repealed July 1, 2025.
328          (30) In relation to the Rural Employment Expansion Program, on July 1, 2023:
329          (a) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed;
330     and
331          (b) Subsection 63N-4-805(5)(b), referring to the Rural Employment Expansion
332     Program, is repealed.
333          (31) In relation to the Board of Tourism Development, on July 1, 2025:
334          (a) Subsection 63N-2-511(1)(b), which defines "tourism board," is repealed;
335          (b) Subsections 63N-2-511(3)(a) and (5), the language that states "tourism board" is
336     repealed and replaced with "Utah Office of Tourism";
337          (c) Subsection 63N-7-101(1), which defines "board," is repealed;
338          (d) Subsection 63N-7-102(3)(c), which requires the Utah Office of Tourism to receive
339     approval from the Board of Tourism Development, is repealed; and
340          (e) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed.
341          (32) Subsection 63N-8-103(3)(c), which allows the Governor's Office of Economic
342     Opportunity to issue an amount of tax credit certificates only for rural productions, is repealed
343     on July 1, 2024.
344          Section 6. Effective date.
345          This bill takes effect on July 1, 2023.