Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0864.01 Megan McCall x4215
HOUSE BILL 22-1337
House Committees Senate Committees
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING A REQUIREMENT THAT THE STATE PERSONNEL DIRECTOR101
QUADRENNIALLY PRODUCE A REPORT ON COMPENSATION , AND,102
IN CONNECTION THEREWITH , MODIFYING REQUIREMENTS FOR103
THE COMPENSATION REPORT , INCLUDING REPORTING104
DEADLINES, AND MAKING AN APPROPRIATION .105
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/
.)
Joint Budget Committee. Under current law, the state personnel
director (director) of the department of personnel (department) is required
SENATE
2nd Reading Unamended
April 13, 2022
HOUSE
3rd Reading Unamended
March 31, 2022
HOUSE
2nd Reading Unamended
March 30, 2022
HOUSE SPONSORSHIP
Herod and Ransom, McCluskie, Esgar, Exum, Garnett, Ricks, Snyder
SENATE SPONSORSHIP
Hansen and Rankin, Zenzinger
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. to annually conduct surveys and produce a report concerning
compensation to determine any necessary adjustments to state employee
salaries, state contributions for group benefit plans, and merit pay. The
bill requires the director to conduct surveys and produce the report every
4 years. The bill also changes certain reporting deadlines of the director
relating to the compensation report and removes certain substantive
components of the report.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-9-102, amend2
(1)(d) as follows:3
24-9-102. Salaries of appointed state officials. (1) The4
following state officials shall receive annual salaries and allowances,5
payable monthly, as follows:6
(d) Effective July 1, 2005, public utilities commission, each7
commissioner, an amount as set by the executive director of the8
department of regulatory agencies based on the most recent available9
figures contained in the annual
QUADRENNIAL total compensation survey10
conducted by the state personnel director pursuant to section 24-50-10411
(4)(a) and subject to review by the state auditor and the general assembly12
pursuant to section 24-50-104 (4)(b) and (4)(c). The commissioners'13
salaries shall be set within the range identified in the survey for the14
category of senior executive service and shall be uniform; except that the15
chairman may receive a salary that is up to ten percent higher than those16
of the other two commissioners.17
SECTION 2. In Colorado Revised Statutes, 24-50-104, amend18
(1)(a)(II), (1)(e), (4)(a), (4)(b)(I), (4)(c), (5)(b), (10)(a), and (10)(c); and19
repeal (4)(b)(II) as follows:20
24-50-104. Job evaluation and compensation - state employee21
reserve fund - created - definitions - repeal. (1) Total compensation22
1337-2- philosophy. (a) (II) The state personnel director shall establish1
technically and professionally sound survey methodologies to assess2
prevailing total compensation practices, levels, and costs. Except as3
provided in subparagraph (III) of this paragraph (a) SUBSECTION4
(1)(a)(III)
OF THIS SECTION, for purposes of this paragraph (a)
5
SUBSECTION (1)(a), to determine and maintain salaries, state contributions6
for group benefit plans, and merit pay that are comparable to public and7
private employment, the state personnel director shall annually8
QUADRENNIALLY review the results of appropriate surveys by public or9
private organizations, including surveys by the state personnel director10
SET FORTH IN SUBSECTION (4)(b)(I) OF THIS SECTION. Any surveys11
provided on a confidential basis shall not be revealed except to the state12
auditor's office and the private firm conducting the audit required in13
paragraph (b) of subsection (4)
SUBSECTION (4)(b) of this section. The14
state personnel director shall adopt appropriate procedures to determine15
and maintain other elements of total compensation, including the payment16
of incentive awards to employees in the state personnel system. The state17
personnel director's review and determination of total compensation18
practices shall not be subject to appeal except as otherwise authorized by19
law or state personnel director procedures.20
(e) The state personnel director shall sustain an employee's base21
salary in the event such employee's position is placed in a lower pay range22
due to an allocation of such employee's position, a system maintenance23
study of all positions in a class, a general job evaluation study of the state24
personnel system, or the annual QUADRENNIAL compensation survey for25
a period not to exceed three years from the effective date of such26
placement.27
1337
-3- (4) Quadrennial compensation process. (a) The purpose of the1
annual QUADRENNIAL compensation process is to determine any necessary2
adjustments to state employee salaries, state contributions for group3
benefit plans, and merit pay. The annual QUADRENNIAL compensation4
survey, based on an analysis of surveys by public or private organizations,5
including surveys by the state personnel director, shall include a fair6
sample of public and private sector employers and jobs, including areas7
outside the Denver metropolitan area. In order to establish confidence in8
the selection of surveys, the state personnel director shall meet and confer9
in good faith with management and state employee representatives.10
(b) (I) The ON OCTOBER 1, 2025, AND ON OCTOBER 1 OF EACH11
FOURTH YEAR THEREAFTER, THE state personnel director shall prepare an12
annual A QUADRENNIAL compensation report based on the analysis of13
surveys conducted pursuant to paragraph (a) of this subsection (4)14
SUBSECTION (4)(a) OF THIS SECTION. The purpose of the annual15
QUADRENNIAL compensation report shall be to reflect all adjustments16
necessary to maintain the salary structure, state contributions for group17
benefit plans, and merit pay. for the upcoming fiscal year. For the merit18
pay component, the state personnel director shall include a description of19
the amount necessary for merit pay for all eligible state employees, as20
well as the amount necessary for each priority group of state employees.21
The state personnel director shall also include a detailed analysis of salary22
ranges for all employees in the state personnel system and how23
employees' salaries are distributed within these ranges. Each department24
may provide the state personnel director with a recommendation25
regarding the amount of moneys that should be appropriated to the26
department for merit pay for the upcoming fiscal year. The state personnel27
1337
-4- director shall establish deadlines for the recommendations and shall1
include a summary of all the recommendations he or she receives in the2
annual compensation report. THE STATE PERSONNEL DIRECTOR SHALL3
ALSO PUBLISH THE REPORT. NOTWITHSTANDING THE REQUIREMENT IN4
SECTION 24-1-136 (11)(a)(I), THE REQUIREMENT TO SUBMIT THE REPORT5
REQUIRED IN THIS SUBSECTION (4)(b)(I) CONTINUES INDEFINITELY. The6
state auditor is responsible for contracting with a private firm to conduct7
a performance audit of the procedures and application of data, including8
any survey conducted by the state personnel director. Beginning January9
1, 2005,
THROUGH JANUARY 1, 2021, AND BEGINNING ON JANUARY 1,10
2026, the audits shall be conducted every four years. A report shall be11
submitted to the governor and the general assembly by the June 30
12
D
ECEMBER 30 immediately following the completion of the audit.13
(II) The general assembly reviewed the reporting requirements to
14
the general assembly in subparagraph (I) of this paragraph (b) during the15
2008 regular session and continued the requirements.16
(c) By September 15, 2017, and by September 15 of each year17
thereafter through S
EPTEMBER 15, 2021, AND ON OR BEFORE OCTOBER 1,18
2022,
AND ON OR BEFORE OCTOBER 1 OF EACH YEAR THEREAFTER, the19
state personnel director shall submit the annual compensation report and
20
recommendations and estimated costs for state employee compensation21
for the next fiscal year, covering salaries, state contributions for group22
benefit plans, and merit pay, to the governor and the joint budget23
committee of the general assembly. The recommendations shall reflect a24
consideration of the results of the annual QUADRENNIAL compensation25
survey, fiscal constraints, the ability to recruit and retain state employees,26
appropriate adjustments with respect to state employee compensation, and27
1337
-5- those costs resulting from implementation of section 24-50-110 (1)(a).1
The recommendations for state contributions for group benefit plans shall2
specify the annual group benefit plan year established pursuant to section3
24-50-604 (1)(m). The annual compensation report RECOMMENDATIONS4
SUBMITTED TO THE DIRECTOR AND THE JOINT BUDGET COMMITTEE shall5
include the results of the surveys of public or private employers and jobs.6
for prevailing total compensation and the reasons for any deviation from7
prevailing total compensation in the recommendations submitted to the8
governor and the joint budget committee. The state personnel director9
shall also publish such report RECOMMENDATIONS . This subsection (4)(c)10
is exempt from the provisions of section 24-1-136 (11), and the periodic11
reporting requirements of this section are effective until changed by the12
general assembly acting by bill.13
(5) Pay plans. (b) No employee in any pay plan may exceed an14
established maximum salary amount for such plan, except as provided in15
paragraph (e) of subsection (1) SUBSECTION (1)(e) of this section. The16
maximum monthly salary for any employee whose position is assigned to17
a nonmedical pay plan in effect prior to July 1, 1991, shall be calculated18
based on the 1991 maximum of five thousand seven hundred ninety-four19
dollars, plus the subsequent adjustments made under this paragraph (b)20
SUBSECTION (5)(b) since July 1, 1991; except that classes in the medical21
pay plan requiring licensure as a physician or dentist shall be subject to22
a maximum monthly salary calculated on the basis of the 1991 maximum23
of seven thousand eight hundred twelve dollars, plus the subsequent24
adjustments made under this paragraph (b) SUBSECTION (5)(b) since July25
1, 1991. Effective July 1, 2010, the maximum monthly salary in the26
medical pay plan shall be seventeen thousand nine hundred twenty-seven27
1337
-6- dollars, plus any subsequent adjustments made under this paragraph (b)1
SUBSECTION (5)(b). Such amounts shall be adjusted by the state personnel2
director in accordance with the change in the employment cost index for3
the preceding calendar year or the percentage increase in state general4
fund appropriations in relation to such appropriations for the preceding5
fiscal year, whichever is greater. In no event shall such amounts exceed6
the maximum found in the market as determined by the annual7
compensation survey RECOMMENDATIONS SUBMITTED BY THE STATE8
PERSONNEL DIRECTOR. The maximum monthly salary for the senior9
executive service plan shall not exceed the maximum monthly salary of10
any nonmedical pay plan by more than twenty-five percent.11
(10) Total compensation study including retirement benefits.12
(a) By January 15, 2015, and by January 15 every eighth year thereafter13
O
CTOBER 1, 2025, AND BY OCTOBER 1 EVERY FOURTH YEAR THEREAFTER ,14
the state personnel director shall submit to the governor and the joint15
budget committee, along with the annual
QUADRENNIAL compensation16
report required pursuant to paragraph (b) of subsection (4) SUBSECTION17
(4)(b) of this section, an addendum with a total compensation study that18
includes retirement benefits. N
OTWITHSTANDING THE REQUIREMENT IN19
SECTION 24-1-136 (11)(a)(I), THE REQUIREMENT TO SUBMIT THE20
ADDENDUM REQUIRED IN THIS SUBSECTION (10) CONTINUES INDEFINITELY.21
(c) For purposes of the addendum to the annual
QUADRENNIAL22
compensation report required pursuant to this subsection (10), the public23
employees' retirement association created in article 51 of this title TITLE24
24 shall provide access to official association member information and25
data under a confidentiality agreement with the third-party compensation26
consulting firm.27
1337
-7- SECTION 3. In Colorado Revised Statutes, 24-50-604, amend1
(3) as follows:2
24-50-604. Powers and duties of the director. (3) The director3
shall have the authority to adopt procedures to determine benefit4
eligibility requirements and the percentage of the state contribution to5
health benefits for all employees, as defined in section 24-50-603 (7),6
who work less than full time, are governed by the rules established7
pursuant to subsection (2) of this section, and are hired on or after January8
1, 2005. The director shall include any proposed changes to the group9
benefits policy in the annual compensation report and recommendations10
submitted to the governor and the joint budget committee of the general11
assembly pursuant to section 24-50-104 (4)(c).12
SECTION 4. Appropriation - adjustments to 2022 long bill.13
(1) To implement this act, the general fund appropriation made in the14
annual general appropriation act for the 2022-23 state fiscal year to the15
department of personnel for use by the division of human resources for16
total compensation and employee engagement surveys related to state17
agency services is decreased by $300,000.18
(2) For the 2022-23 state fiscal year, $147,429 is appropriated to19
the department of personnel. This appropriation is from the general fund20
and is based on an assumption that the department will require an21
additional 1.0 FTE. To implement this act, the department may use this22
appropriation as follows:23
Executive director's office, department administration24
Health, life, and dental $10,00025
Short-term disability $12826
Division of human resources, human resource services, state27
1337
-8- agency services1
Personal services $129,751 (1.0 FTE)2
Operating Expenses $7,5503
SECTION 5. Safety clause. The general assembly hereby finds,4
determines, and declares that this act is necessary for the immediate5
preservation of the public peace, health, or safety.6
1337
-9-