Second Regular Session Seventy-third General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO. 22-0844.01 Nicole Myers x4326 HOUSE BILL 22-1266 House Committees Senate Committees State, Civic, Military, & Veterans Affairs State, Veterans, & Military Affairs A BILL FOR AN ACT C ONCERNING MODIFICATIONS TO THE STATE EMPLOYEE TOTAL101 COMPENSATION PHILOSOPHY TO PROVIDE FLEXIBILITY IN STATE102 EMPLOYEE TOTAL COMPENSATION PRACTICES .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Current law specifies that it is the policy of the state to provide prevailing total compensation to officers and employees in the state personnel system to ensure the recruitment, motivation, and retention of a qualified and competent workforce. Current law also directs the state personnel director to prescribe procedures for leave benefits that are SENATE 3rd Reading Unamended March 21, 2022 SENATE Amended 2nd Reading March 18, 2022 HOUSE 3rd Reading Unamended March 7, 2022 HOUSE 2nd Reading Unamended March 4, 2022 HOUSE SPONSORSHIP Tipper and Gray, Amabile, Bacon, Bernett, Bird, Boesenecker, Duran, Esgar, Garnett, Gonzales-Gutierrez, Herod, Hooton, Jodeh, Kennedy, Kipp, Lindsay, Lontine, McCluskie, McCormick, Mullica, Ricks, Sirota, Titone, Valdez A., Valdez D., Weissman, Woodrow SENATE SPONSORSHIP Winter, Buckner, Donovan, Fenberg, Fields, Ginal, Gonzales, Hansen, Hinrichsen, Jaquez Lewis, Kolker, Lee, Moreno, Pettersen, Story Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. typically consistent with prevailing practices. Current law has prevented the state personnel director from providing certain benefits to state employees that are not typically consistent with prevailing practices. The bill eliminates references to "prevailing" total compensation and "prevailing practices" in connection with state employee benefits. The bill also modifies the total compensation philosophy to specify that it is the policy of the state to provide innovative total compensation that meets or exceeds total compensation provided by public or private sector employers to officers and employees in the state personnel system to ensure the recruitment, motivation, and retention of a qualified and competent workforce. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 24-50-104, amend2 (1)(a)(I), (1)(a)(II), (1)(a)(III)(A), (1)(g), (4)(c), and (5)(a) as follows:3 24-50-104. Job evaluation and compensation - state employee4 reserve fund - created - definitions - repeal. (1) Total compensation5 philosophy. (a) (I) It is the policy of the state to provide prevailing 6 INNOVATIVE total compensation THAT MEETS OR EXCEEDS TOTAL7 COMPENSATION PROVIDED BY PUBLIC OR PRIVATE SECTOR EMPLOYERS OR8 A COMBINATION OF BOTH, to officers and employees in the state personnel9 system to ensure the recruitment, motivation, and retention of a qualified10 and competent work force WORKFORCE. For purposes of this section,11 "total compensation" includes, but is not limited to, salary, group benefit12 plans, retirement benefits, merit pay, incentives, premium pay practices,13 and leave AS SPECIFIED IN STATUTE OR IN POLICIES OF THE STATE14 PERSONNEL DIRECTOR. For purposes of this section, "group benefit plans"15 means group benefit coverages as described in section 24-50-603 (9).16 A NY MONETARY COMPONENTS OF TOTAL COMPENSATION ARE SUBJECT TO 17 AVAILABLE APPROPRIATIONS BY THE GENERAL ASSEMBLY .18 (II) The state personnel director shall establish technically and19 1266-2- professionally sound survey methodologies to assess prevailing total1 compensation practices, levels, and costs. Except as provided in2 subparagraph (III) of this paragraph (a) SUBSECTION (1)(a)(III) OF THIS3 SECTION, for purposes of this paragraph (a) SUBSECTION (1)(a), to4 determine and maintain salaries, state contributions for group benefit5 plans, and merit pay that are comparable to MEET OR EXCEED TOTAL6 COMPENSATION PROVIDED BY public and OR private employment SECTOR7 EMPLOYMENT OR A COMBINATION OF BOTH , the state personnel director8 shall annually review the results of appropriate surveys by public or9 private organizations, including surveys by the state personnel director.10 Any surveys provided on a confidential basis shall not be revealed except11 to the state auditor's office and the private firm conducting the audit12 required in paragraph (b) of subsection (4) SUBSECTION (4)(b) of this13 section. The state personnel director shall adopt appropriate procedures14 to determine and maintain other elements of total compensation,15 including the payment of incentive awards to employees in the state16 personnel system. The state personnel director's review and determination17 of total compensation practices shall not be subject to appeal except as18 otherwise authorized by law or state personnel director procedures.19 (III) (A) The methodologies used for purposes of determining and20 maintaining prevailing compensation for state law enforcement officers21 employed by the Colorado state patrol shall be the same as the22 methodologies established pursuant to subparagraph (II) of this paragraph23 (a) SUBSECTION (1)(a)(II) OF THIS SECTION; except that the amount of24 salary shall be at least ninety-nine percent of the actual average salary25 provided to the top three law enforcement agencies within the state that26 have both more than one hundred commissioned officers and the highest27 1266 -3- actual average salary.1 (g) Benefits shall include insurance, retirement, and leaves of2 absence with or without pay and may include jury duty, military duty, or3 educational leaves. The state personnel director shall prescribe procedures4 for the types, amounts, and conditions for all leave benefits, that are5 typically consistent with prevailing practices, subject to the provisions6 governing the benefits provided in subsection (7) of this section. The7 general assembly shall approve any changes to leave benefits granted by8 statute before such changes are implemented. The state personnel director9 shall prescribe by procedure any nonstatutory benefits.10 (4) Annual compensation process. (c) By September 15, 2017,11 and by September 15 of each year thereafter, the state personnel director12 shall submit the annual compensation report and recommendations and13 estimated costs for state employee compensation for the next fiscal year,14 covering salaries, state contributions for group benefit plans, and merit15 pay, to the governor and the joint budget committee of the general16 assembly. The recommendations shall reflect a consideration of the17 results of the annual compensation survey, fiscal constraints, the ability18 to recruit and retain state employees, appropriate adjustments with respect19 to state employee compensation, and those costs resulting from20 implementation of section 24-50-110 (1)(a). The recommendations for21 state contributions for group benefit plans shall specify the annual group22 benefit plan year established pursuant to section 24-50-604 (1)(m). The23 annual compensation report shall include the results of the surveys of24 public or private employers and jobs for prevailing total compensation25 and the reasons for any deviation from prevailing total compensation in26 the recommendations submitted to the governor and the joint budget27 1266 -4- committee. The state personnel director shall also publish such report.1 This subsection (4)(c) is exempt from the provisions of section 24-1-1362 (11), and the periodic reporting requirements of this section are effective3 until changed by the general assembly acting by bill.4 (5) Pay plans. (a) The state personnel director shall establish pay5 plans as technically and professionally necessary and shall establish any6 procedures and directives required to implement the state's prevailing7 INNOVATIVE total compensation philosophy as defined in subsection (1)8 of this section.9 SECTION 2. Safety clause. The general assembly hereby finds,10 determines, and declares that this act is necessary for the immediate11 preservation of the public peace, health, or safety.12 1266 -5-