Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 239 (2015GS)

Sponsor

Rep. Hutchings, E.

Final action

Governor Signed 3/25/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• exempts certain employees from and amends provisions related to a position classification plan;
• requires the executive director to submit an annual compensation plan to the governor;
• repeals outdated language; and
• makes technical and conforming amendments.

Every vote on this bill

Bill text

HUMAN RESOURCE MANAGEMENT MARKET RESEARCH
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Eric K. Hutchings
Senate Sponsor: 
Todd Weiler
LONG TITLE
General Description:
This bill amends provisions related to human resource management.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ exempts certain employees from and amends provisions related to a position
classification plan;
▸ requires the executive director to submit an annual compensation plan to the
governor;
▸ repeals outdated language; and
▸ makes technical and conforming amendments.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
49-20-401
, as last amended by Laws of Utah 2012, Chapters 28 and 173
67-19-3
, as last amended by Laws of Utah 2013, Chapter 109
67-19-12
, as last amended by Laws of Utah 2013, Chapters 109 and 310
67-19-14.1
, as last amended by Laws of Utah 2013, Chapter 277
67-19-15.7
, as last amended by Laws of Utah 2013, Chapter 109
REPEALS:
67-19-12.1
, as enacted by Laws of Utah 2006, Chapter 338
67-19-12.3
, as last amended by Laws of Utah 2007, Chapter 140
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
49-20-401
 is amended to read:
49-20-401.
Program -- Powers and duties.
(1) The program shall:
(a) act as a self-insurer of employee benefit plans and administer those plans;
(b) enter into contracts with private insurers or carriers to underwrite employee benefit
plans as considered appropriate by the program;
(c) indemnify employee benefit plans or purchase commercial reinsurance as
considered appropriate by the program;
(d) provide descriptions of all employee benefit plans under this chapter in cooperation
with covered employers;
(e) process claims for all employee benefit plans under this chapter or enter into
contracts, after competitive bids are taken, with other benefit administrators to provide for the
administration of the claims process;
(f) obtain an annual actuarial review of all health and dental benefit plans and a
periodic review of all other employee benefit plans;
(g) consult with the covered employers to evaluate employee benefit plans and develop
recommendations for benefit changes;
(h) annually submit a budget and audited financial statements to the governor and
Legislature which includes total projected benefit costs and administrative costs;
(i) maintain reserves sufficient to liquidate the unrevealed claims liability and other
liabilities of the employee benefit plans as certified by the program's consulting actuary;
(j) submit, in advance, its recommended benefit adjustments for state employees to:
(i) the Legislature; and
(ii) the executive director of the state Department of Human Resource Management;
(k) determine benefits and rates, upon approval of the board, for multiemployer risk
pools, retiree coverage, and conversion coverage;
(l) determine benefits and rates based on the total estimated costs and the employee
premium share established by the Legislature, upon approval of the board, for state employees;
(m) administer benefits and rates, upon ratification of the board, for single employer
risk pools;
(n) request proposals for provider networks or health and dental benefit plans
administered by third party carriers at least once every three years for the purposes of:
(i) stimulating competition for the benefit of covered individuals;
(ii) establishing better geographical distribution of medical care services; and
(iii) providing coverage for both active and retired covered individuals;
(o) offer proposals which meet the criteria specified in a request for proposals and
accepted by the program to active and retired state covered individuals and which may be
offered to active and retired covered individuals of other covered employers at the option of the
covered employer;
(p) perform the same functions established in Subsections (1)(a), (b), (e), and (h) for
the Department of Health if the program provides program benefits to children enrolled in the
Utah Children's Health Insurance Program created in Title 26, Chapter 40, Utah Children's
Health Insurance Act;
(q) establish rules and procedures governing the admission of political subdivisions or
educational institutions and their employees to the program;
(r) contract directly with medical providers to provide services for covered individuals;
(s) take additional actions necessary or appropriate to carry out the purposes of this
chapter; and
(t) (i) require state employees and their dependents to participate in the electronic
exchange of clinical health records in accordance with Section 
26-1-37
 unless the enrollee opts
out of participation; and
(ii) prior to enrolling the state employee, each time the state employee logs onto the
program's website, and each time the enrollee receives written enrollment information from the
program, provide notice to the enrollee of the enrollee's participation in the electronic exchange
of clinical health records and the option to opt out of participation at any time.
(2) (a) Funds budgeted and expended shall accrue from rates paid by the covered
employers and covered individuals.
(b) Administrative costs shall be approved by the board and reported to the governor
and the Legislature.
(3) The Department of Human Resource Management shall include the benefit
adjustments described in Subsection (1)(j) in the total compensation plan recommended to the
governor required under Subsection 
67-19-12
[
(7)
]
(5)
(a).
Section 2. Section 
67-19-3
 is amended to read:
67-19-3.
Definitions.
As used in this chapter:
(1) "Agency" means any department or unit of Utah state government with authority to
employ personnel.
(2) "Career service" means positions under schedule B as defined in Section 
67-19-15
.
(3) "Career service employee" means an employee who has successfully completed a
probationary period of service in a position covered by the career service.
(4) "Career service status" means status granted to employees who successfully
complete probationary periods for competitive career service positions.
(5) "Classified service" means those positions subject to the classification and
compensation provisions of Section 
67-19-12
.
(6) "Controlled substance" means controlled substance as defined in Section 
58-37-2
.
(7) (a) "Demotion" means a disciplinary action resulting in a reduction of an
employee's current actual wage.
(b) "Demotion" does not mean:
(i) a nondisciplinary movement of an employee to another position without a reduction
in the current actual wage; or
(ii) a reclassification of an employee's position under the provisions of Subsection
67-19-12
(3) and rules made by the department.
(8) "Department" means the Department of Human Resource Management.
(9) "Disability" means a physical or mental disability as defined and protected under
the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
(10) "Employee" means any individual in a paid status covered by the career service or
classified service provisions of this chapter.
(11) "Examining instruments" means written or other types of proficiency tests.
(12) "Executive director," except where otherwise specified, means the executive
director of the Department of Human Resource Management.
(13) "Human resource function" means those duties and responsibilities specified:
(a) under Section 
67-19-6
;
(b) under rules of the department; and
(c) under other state or federal statute.
(14) "Market comparability adjustment" means a salary range adjustment determined
necessary through a market survey of salary [
ranges of a reasonable cross section of
comparable benchmark positions in private and public employment
] 
data and other relevant
information
.
(15) "Probationary employee" means an employee serving a probationary period in a
career service position but who does not have career service status.
(16) "Probationary period" means that period of time determined by the department
that an employee serves in a career service position as part of the hiring process before career
service status is granted to the employee.
(17) "Probationary status" means the status of an employee between the employee's
hiring and the granting of career service status.
(18) "Structure adjustment" means a department modification of salary ranges.
[
(18)
] 
(19)
 "Temporary employee" means career service exempt employees described
in Subsection 
67-19-15
(1)(p).
[
(19)
] 
(20)
 "Total compensation" means salaries and wages, bonuses, paid leave, group
insurance plans, retirement, and all other benefits offered to state employees as inducements to
work for the state.
Section 3. Section 
67-19-12
 is amended to read:
67-19-12.
State pay plans -- Applicability of section -- Exemptions -- Duties of the
executive director.
(1) (a) This section, and the rules adopted by the department to implement this section,
apply to each career and noncareer employee not specifically exempted under Subsection (2).
(b) If not exempted under Subsection (2), an employee is considered to be in classified
service.
(2) The following employees are exempt from this section:
(a) members of the Legislature and legislative employees;
(b) members of the judiciary and judicial employees;
(c) elected members of the executive branch and employees [
under
] 
designated as
schedule AC as provided under Subsection 
67-19-15
(1)(c);
(d) employees of the State Board of Education who are licensed by the State Board of
Education;
(e) officers, faculty, and other employees of state institutions of higher education;
(f) employees in a position that is specified by statute to be exempt from this
Subsection (2);
(g) employees in the Office of the Attorney General;
(h) department heads and other persons appointed by the governor under statute;
(i) [
exempt
] 
schedule AS
 employees as provided under Subsection 
67-19-15
(1)(l);
[
(j) employees of the Utah Schools for the Deaf and the Blind who are:
]
[
(i) educators as defined by Section 
53A-25b-102
; or
]
[
(ii) educational interpreters as classified by the department; and
]
(j) department deputy directors, division directors, and other employees designated as
schedule AD as provided under Subsection 
67-19-15
(1)(d);
(k) employees that determine and execute policy designated as schedule AR as
provided under Subsection 
67-19-15
(1)(k);
(l) teaching staff, educational interpreters, and educators designated as schedule AH as
provided under Subsection 
67-19-15
(1)(f);
[
(k)
] 
(m)
 temporary employees described in Subsection 
67-19-15
(1)(p)[
.
]
;
(n) patients and inmates designated as schedule AU as provided under Subsection
67-19-15
(1)(n) who are employed by state institutions; and
(o) members of state and local boards and councils and other employees designated as
schedule AQ as provided under Subsection 
67-19-15
(1)(j).
(3) (a) The executive director shall prepare, maintain, and revise a position
classification plan for each employee position not exempted under Subsection (2) to provide
equal pay for equal work.
(b) Classification of positions shall be based upon similarity of duties performed and
responsibilities assumed, so that the same job requirements and the same salary range may be
applied equitably to each position in the same class.
(c) The executive director shall allocate or reallocate the position of each employee in
classified service to one of the classes in the classification plan.
(d) (i) The department shall conduct periodic studies and [
desk audits
] 
interviews
 to
provide that the classification plan remains reasonably current and reflects the duties and
responsibilities assigned to and performed by employees.
(ii) The executive director shall determine the [
schedule
] 
need
 for studies and [
desk
audits
] 
interviews
 after considering factors such as changes in duties and responsibilities of
positions or agency reorganizations.
(4) (a) With the approval of the governor, the executive director shall develop and
adopt pay plans for each position in classified service.
(b) The executive director shall design each pay plan to achieve, to the degree that
funds permit, comparability of state salary ranges to [
salary ranges used by
] 
the market using
data obtained from
 private enterprise and other public employment for similar work.
(c) The executive director shall adhere to the following in developing each pay plan:
(i) Each pay plan shall consist of sufficient salary ranges to
:
(A)
 permit adequate salary differential among the various classes of positions in the
classification plan[
.
]
; and
(B) reflect the normal growth and productivity potential of employees in that class.
[
(ii) (A) The executive director shall assign each class of positions in the classification
plan to a salary range and shall set the width of the salary range to reflect the normal growth
and productivity potential of employees in that class.
]
[
(B) The width of the ranges need not be uniform for all classes of positions in the
plan.
]
[
(iii) (A)
] 
(ii)
 The executive director shall issue rules for the administration of pay
plans.
(d) The establishing of a salary range is a nondelegable activity and is not appealable
under the grievance procedures of Sections 
67-19-30
 through 
67-19-32
, Chapter 19a,
Grievance Procedures, or otherwise.
[
(B)
] 
(e)
 The executive director shall issue rules providing for [
salary adjustments.
]
:
[
(iv) Merit increases shall be granted, on a uniform and consistent basis in accordance
with appropriations made by the Legislature, to employees who receive a rating of "successful"
or higher in an annual evaluation of their productivity and performance.
]
[
(v) By October 31 of each year, the executive director shall submit market
comparability adjustments to the executive director of the Governor's Office of Management
and Budget for consideration to be included as part of the affected agency's base budgets.
]
[
(vi) By October 31 of each year, the executive director shall recommend a
compensation package to the governor.
]
[
(vii) (A) Adjustments shall incorporate the results of a total compensation market
survey of salary ranges and benefits of a reasonable cross section of comparable benchmark
positions in private and public employment in the state.
]
[
(B) The survey may also study comparable unusual positions requiring recruitment in
other states.
]
[
(C) The executive director may cooperate with other public and private employers in
conducting the survey.
]
(i) agency approved salary adjustments within approved salary ranges, including an
administrative salary adjustment;
(ii) legislatively approved salary adjustments within approved salary ranges, including
a merit increase, subject to Subsection (4)(f), or general increase; and
(iii) structure adjustments that modify salary ranges, including a cost of living
adjustment or market comparability adjustment.
(f) A merit increase shall be granted on a uniform and consistent basis to each
employee who receives a rating of "successful" or higher in an annual evaluation of the
employee's productivity and performance.
(5) (a) By October 31 of each year, the executive director shall submit an annual
compensation plan to the governor for consideration in the executive budget.
(b) The plan described in Subsection (5)(a) may include recommendations, including:
(i) salary increases that generally affect employees, including a general increase or
merit increase;
(ii) salary increases that address compensation issues unique to an agency or
occupation;
(iii) structure adjustments, including a cost of living adjustment or market
comparability adjustment; or
(iv) changes to employee benefits.
(c) (i) (A) Subject to Subsection (5)(c)(i)(B) or (C), the executive director shall
incorporate the results of a salary survey of a reasonable cross section of comparable positions
in private and public employment in the state into the annual compensation plan.
(B) The salary survey for a law enforcement officer, as defined in Section 
53-13-103
, a
correctional officer, as defined in Section 
53-13-104
, or a dispatcher, as defined in Section
53-6-102, shall at minimum include the three largest political subdivisions in the state that
employ, respectively, comparable positions.
(C) The salary survey for an examiner or supervisor described in Title 7, Chapter 1,
Part 2, Department of Financial Institutions, shall at minimum include the Federal Deposit
Insurance Corporation, Federal Reserve, and National Credit Union Administration.
[
(viii) (A) The executive director shall establish criteria to assure the adequacy and
accuracy of the survey and shall use methods and techniques similar to and consistent with
those used in private sector surveys.
]
[
(B) Except as provided under Sections 
67-19-12.1
 and 
67-19-12.3
, the survey shall
include a reasonable cross section of employers.
]
[
(C)
] 
(ii)
 The executive director may cooperate with or participate in any survey
conducted by other public and private employers.
[
(D)
] 
(iii)
 The executive director shall obtain information for the purpose of
constructing the survey from the Division of Workforce Information and Payment Services and
shall include employer name, number of persons employed by the employer, employer contact
information and job titles, county code, and salary if available.
[
(E)
] 
(iv)
 The department shall acquire and protect the needed records in compliance
with the provisions of Section 
35A-4-312
.
[
(ix) The establishing of a salary range is a nondelegable activity and is not appealable
under the grievance procedures of Sections 
67-19-30
 through 
67-19-32
, Chapter 19a,
Grievance Procedures, or otherwise.
]
(d) The executive director may incorporate any other relevant information in the plan
described in Subsection (5)(a), including information on staff turnover, recruitment data, or
external market trends.
(e) The executive director shall:
(i) establish criteria to assure the adequacy and accuracy of data used to make
recommendations described in this Subsection (5); and
(ii) when preparing recommendations use accepted methodologies and techniques
similar to and consistent with those used in the private sector.
(f) (i) Upon request and subject to Subsection (5)(f)(ii), the department shall make
available foundational information used by the department or director in the drafting of a plan
described in Subsection (5)(a), including:
(A) demographic and labor market information;
(B) information on employee turnover;
(C) salary information;
(D) information on recruitment; and
(E) geographic data.
(ii) The department may not provide under Subsection (5)(f)(i) information or other
data that is proprietary or otherwise protected under the terms of a contract or by law.
[
(x)
] 
(g)
 The governor shall:
[
(A)
] 
(i)
 consider salary 
and structure
 adjustments recommended under Subsection
[
(4)(c)(vi)
] 
(5)(b)
 in preparing the executive budget and shall recommend the method of
distributing the adjustments;
[
(B)
] 
(ii)
 submit compensation recommendations to the Legislature; and
[
(C)
] 
(iii)
 support the recommendation with schedules indicating the cost to individual
departments and the source of funds.
[
(xi)
] 
(h)
 If funding is approved by the Legislature in a general appropriations act, the
adjustments take effect on the July 1 following the enactment 
unless otherwise indicated
.
[
(5)
] 
(6)
 (a) The executive director shall issue rules for the granting of incentive
awards, including awards for cost saving actions, awards for commendable actions by an
employee, or a market-based award to attract or retain employees.
(b) An agency may not grant a market-based award unless the award is previously
approved by the department.
(c) In accordance with Subsection [
(5)
] 
(6)
(b), an agency requesting the department's
approval of a market-based award shall submit a request and documentation, subject to
Subsection [
(5)
] 
(6)
(d), to the department.
(d) In the documentation required in Subsection [
(5)
] 
(6)
(c), the requesting agency
shall identify for the department:
(i) any benefit the market-based award would provide for the agency, including:
(A) budgetary advantages; or
(B) recruitment advantages;
(ii) a mission critical need to attract or retain unique or hard to find skills in the market;
or
(iii) any other advantage the agency would gain through the utilization of a
market-based award.
[
(6)
] 
(7)
 (a) The executive director shall regularly evaluate the total compensation
program of state employees in the classified service.
(b) The department shall determine if employee benefits are comparable to those
offered by other private and public employers using information from:
[
(i) the most recent edition of the Employee Benefits Survey Data conducted by the
U.S. Chamber of Commerce Research Center; or
]
(i) a study conducted by a third-party consultant; or
(ii) the most recent edition of a nationally recognized benefits survey.
[
(7) (a) The executive director shall submit proposals for a state employee
compensation plan to the governor by October 31 of each year, setting forth findings and
recommendations affecting employee compensation.
]
[
(b) The governor shall consider the executive director's proposals in preparing budget
recommendations for the Legislature.
]
[
(c) The governor's budget proposals to the Legislature shall include a specific
recommendation on employee compensation.
]
Section 4. Section 
67-19-14.1
 is amended to read:
67-19-14.1.
Converted sick leave.
[
(1) Until January 1, 2014, an employee who has 144 hours of accumulated unused
sick leave immediately prior to the beginning of a calendar year, may elect to convert any
unused sick leave hours accumulated during that calendar year, in excess of 64 hours, to
converted sick leave.
]
[
(2) The conversion is made at the beginning of the next calendar year for unused sick
leave hours earned during a calendar year under Subsection (1).
]
[
(3)
] Converted sick leave hours that are not used prior to an employee's retirement
date shall be used under the:
[
(a)
] 
(1)
 Unused Sick Leave Retirement Option Program I under Section 
67-19-14.2
 if
earned prior to January 1, 2006, unless the transfer is made under Subsection 
67-19-14.4
(1)(c);
or
[
(b)
] 
(2)
 Unused Sick Leave Retirement Option Program II under Section 
67-19-14.4
 if
earned on or after January 1, 2006.
Section 5. Section 
67-19-15.7
 is amended to read:
67-19-15.7.
Promotion -- Reclassification -- Market adjustment.
(1) (a) If an employee is promoted or the employee's position is reclassified to a higher
salary range maximum, the agency shall place the employee within the new range of the
position.
(b) An agency may not set an employee's salary:
(i) higher than the maximum in the new salary range; and
(ii) lower than the minimum in the new salary range of the position.
(c) Except for an employee described in Subsection 
67-19-15
(1)(p), the agency shall
grant a salary increase of at least 5% to an employee who is promoted.
(2) An agency shall adjust the salary range for an employee whose salary range is
approved by the Legislature for a market comparability adjustment consistent with Subsection
67-19-12
[
(4)(c)(v)
]
(5)(b)(i)
:
(a) at the beginning of the next fiscal year; and
(b) consistent with appropriations made by the Legislature.
(3) Department-initiated revisions in the state classification system that result in
consolidation or reduction of class titles or broadening of pay ranges:
(a) may not be regarded as a reclassification of the position or promotion of the
employee; and
(b) are exempt from the provisions of Subsection (1).
Section 6. 
Repealer.
This bill repeals:
Section 
67-19-12.1
,
Department of Financial Institutions pay plans.
Section 
67-19-12.3
,
Peace officer, correctional officer, and public safety dispatch
personnel pay plans.
Section 7. 
Effective date.
This bill takes effect on July 1, 2015.