HOUSE BILL 22-1337
BY REPRESENTATIVE(S) Herod and Ransom, McCluskie, Esgar, Exum,
Ricks, Snyder, Garnett;
also SENATOR(S) Hansen and Rankin, Zenzinger.
C
ONCERNING A REQUIREMENT THAT THE STATE PERSONNEL DIRECTOR
QUADRENNIALLY PRODUCE A REPORT ON COMPENSATION
, AND, IN
CONNECTION THEREWITH
, MODIFYING REQUIREMENTS FOR THE
COMPENSATION REPORT
, INCLUDING REPORTING DEADLINES , AND
MAKING AN APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-9-102, amend
(1)(d) as follows:
24-9-102. Salaries of appointed state officials. (1) The following
state officials shall receive annual salaries and allowances, payable monthly,
as follows:
(d) Effective July 1, 2005, public utilities commission, each
commissioner, an amount as set by the executive director of the department
of regulatory agencies based on the most recent available figures contained
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. in the annual QUADRENNIAL total compensation survey conducted by the
state personnel director pursuant to section 24-50-104 (4)(a) and subject to
review by the state auditor and the general assembly pursuant to section
24-50-104 (4)(b) and (4)(c). The commissioners' salaries shall be set within
the range identified in the survey for the category of senior executive
service and shall be uniform; except that the chairman may receive a salary
that is up to ten percent higher than those of the other two commissioners.
SECTION 2. In Colorado Revised Statutes, 24-50-104, amend
(1)(a)(II), (1)(e), (4)(a), (4)(b)(I), (4)(c), (5)(b), (10)(a), and (10)(c); and
repeal (4)(b)(II) as follows:
24-50-104. Job evaluation and compensation - state employee
reserve fund - created - definitions - repeal. (1) Total compensation
philosophy. (a) (II) The state personnel director shall establish technically
and professionally sound survey methodologies to assess prevailing total
compensation practices, levels, and costs. Except as provided in
subparagraph (III) of this paragraph (a)
SUBSECTION (1)(a)(III) OF THIS
SECTION
, for purposes of this paragraph (a)
SUBSECTION (1)(a), to determine
and maintain salaries, state contributions for group benefit plans, and merit
pay that are comparable to public and private employment, the state
personnel director shall annually
QUADRENNIALLY review the results of
appropriate surveys by public or private organizations, including surveys by
the state personnel director
SET FORTH IN SUBSECTION (4)(b)(I) OF THIS
SECTION
. Any surveys provided on a confidential basis shall not be revealed
except to the state auditor's office and the private firm conducting the audit
required in paragraph (b) of subsection (4)
SUBSECTION (4)(b) of this
section. The state personnel director shall adopt appropriate procedures to
determine and maintain other elements of total compensation, including the
payment of incentive awards to employees in the state personnel system.
The state personnel director's review and determination of total
compensation practices shall not be subject to appeal except as otherwise
authorized by law or state personnel director procedures.
(e) The state personnel director shall sustain an employee's base
salary in the event such employee's position is placed in a lower pay range
due to an allocation of such employee's position, a system maintenance
study of all positions in a class, a general job evaluation study of the state
personnel system, or the annual
QUADRENNIAL compensation survey for a
period not to exceed three years from the effective date of such placement.
PAGE 2-HOUSE BILL 22-1337 (4) Quadrennial compensation process. (a) The purpose of the
annual QUADRENNIAL compensation process is to determine any necessary
adjustments to state employee salaries, state contributions for group benefit
plans, and merit pay. The annual
QUADRENNIAL compensation survey, based
on an analysis of surveys by public or private organizations, including
surveys by the state personnel director, shall include a fair sample of public
and private sector employers and jobs, including areas outside the Denver
metropolitan area. In order to establish confidence in the selection of
surveys, the state personnel director shall meet and confer in good faith with
management and state employee representatives.
(b) (I) The
ON OCTOBER 1, 2025, AND ON OCTOBER 1 OF EACH
FOURTH YEAR THEREAFTER
, THE state personnel director shall prepare anannual A QUADRENNIAL compensation report based on the analysis of
surveys conducted pursuant to paragraph (a) of this subsection (4)
SUBSECTION (4)(a) OF THIS SECTION. The purpose of the annual
QUADRENNIAL compensation report shall be to reflect all adjustments
necessary to maintain the salary structure, state contributions for group
benefit plans, and merit pay. for the upcoming fiscal year. For the merit pay
component, the state personnel director shall include a description of the
amount necessary for merit pay for all eligible state employees, as well as
the amount necessary for each priority group of state employees. The state
personnel director shall also include a detailed analysis of salary ranges for
all employees in the state personnel system and how employees' salaries are
distributed within these ranges. Each department may provide the state
personnel director with a recommendation regarding the amount of moneys
that should be appropriated to the department for merit pay for the
upcoming fiscal year. The state personnel director shall establish deadlines
for the recommendations and shall include a summary of all the
recommendations he or she receives in the annual compensation report. THE
STATE PERSONNEL DIRECTOR SHALL ALSO PUBLISH THE REPORT
.
N
OTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), THE
REQUIREMENT TO SUBMIT THE REPORT REQUIRED IN THIS SUBSECTION
(4)(b)(I) CONTINUES INDEFINITELY. The state auditor is responsible for
contracting with a private firm to conduct a performance audit of the
procedures and application of data, including any survey conducted by the
state personnel director. Beginning January 1, 2005,
THROUGH JANUARY 1,
2021,
AND BEGINNING ON JANUARY 1, 2026, the audits shall be conducted
every four years. A report shall be submitted to the governor and the general
assembly by the June 30
DECEMBER 30 immediately following the
PAGE 3-HOUSE BILL 22-1337 completion of the audit.
(II) The general assembly reviewed the reporting requirements to the
general assembly in subparagraph (I) of this paragraph (b) during the 2008
regular session and continued the requirements.
(c) By September 15, 2017, and by September 15 of each year
thereafter
THROUGH SEPTEMBER 15, 2021, AND ON OR BEFORE OCTOBER 1,
2022,
AND ON OR BEFORE OCTOBER 1 OF EACH YEAR THEREAFTER, the state
personnel director shall submit the annual compensation report and
recommendations and estimated costs for state employee compensation for the next fiscal year, covering salaries, state contributions for group benefit plans, and merit pay, to the governor and the joint budget committee of the general assembly. The recommendations shall reflect a consideration of the results of the annual
QUADRENNIAL compensation survey, fiscal constraints,
the ability to recruit and retain state employees, appropriate adjustments
with respect to state employee compensation, and those costs resulting from
implementation of section 24-50-110 (1)(a). The recommendations for state
contributions for group benefit plans shall specify the annual group benefit
plan year established pursuant to section 24-50-604 (1)(m). The annual
compensation report RECOMMENDATIONS SUBMI TTED TO THE DIRECTOR AND
THE JOINT BUDGET COMMITTEE
shall include the results of the surveys of
public or private employers and jobs. for prevailing total compensation andthe reasons for any deviation from prevailing total compensation in the
recommendations submitted to the governor and the joint budget committee.
The state personnel director shall also publish such report
RECOMMENDATIONS . This subsection (4)(c) is exempt from the provisions
of section 24-1-136 (11), and the periodic reporting requirements of this
section are effective until changed by the general assembly acting by bill.
(5) Pay plans. (b) No employee in any pay plan may exceed an
established maximum salary amount for such plan, except as provided in
paragraph (e) of subsection (1)
SUBSECTION (1)(e) of this section. The
maximum monthly salary for any employee whose position is assigned to
a nonmedical pay plan in effect prior to July 1, 1991, shall be calculated
based on the 1991 maximum of five thousand seven hundred ninety-four
dollars, plus the subsequent adjustments made under this paragraph (b)
SUBSECTION (5)(b) since July 1, 1991; except that classes in the medical pay
plan requiring licensure as a physician or dentist shall be subject to a
maximum monthly salary calculated on the basis of the 1991 maximum of
PAGE 4-HOUSE BILL 22-1337 seven thousand eight hundred twelve dollars, plus the subsequent
adjustments made under this paragraph (b) SUBSECTION (5)(b) since July 1,
1991. Effective July 1, 2010, the maximum monthly salary in the medical
pay plan shall be seventeen thousand nine hundred twenty-seven dollars,
plus any subsequent adjustments made under this paragraph (b)
SUBSECTION
(5)(b). Such amounts shall be adjusted by the state personnel director in
accordance with the change in the employment cost index for the preceding
calendar year or the percentage increase in state general fund appropriations
in relation to such appropriations for the preceding fiscal year, whichever
is greater. In no event shall such amounts exceed the maximum found in the
market as determined by the annual compensation survey
RECOMMENDATIONS SUBMITTED BY THE STATE PERSONNEL DIRECTOR . The
maximum monthly salary for the senior executive service plan shall not
exceed the maximum monthly salary of any nonmedical pay plan by more
than twenty-five percent.
(10) Total compensation study including retirement benefits.
(a) By January 15, 2015, and
by January 15 every eighth year thereafter
OCTOBER 1, 2025, AND BY OCTOBER 1 EVERY FOURTH YEAR THEREAFTER ,
the state personnel director shall submit to the governor and the joint budget
committee, along with the annual
QUADRENNIAL compensation report
required pursuant to paragraph (b) of subsection (4) SUBSECTION (4)(b) of
this section, an addendum with a total compensation study that includes
retirement benefits. N
OTWITHSTANDING THE REQUIREMENT IN SECTION
24-1-136 (11)(a)(I), THE REQUIREMENT TO SUBMIT THE ADDENDUM
REQUIRED IN THIS SUBSECTION
(10) CONTINUES INDEFINITELY.
(c) For purposes of the addendum to the annual
QUADRENNIAL
compensation report required pursuant to this subsection (10), the public
employees' retirement association created in article 51 of this title TITLE 24
shall provide access to official association member information and data
under a confidentiality agreement with the third-party compensation
consulting firm.
SECTION 3. In Colorado Revised Statutes, 24-50-604, amend (3)
as follows:
24-50-604. Powers and duties of the director. (3) The director
shall have the authority to adopt procedures to determine benefit eligibility
requirements and the percentage of the state contribution to health benefits
PAGE 5-HOUSE BILL 22-1337 for all employees, as defined in section 24-50-603 (7), who work less than
full time, are governed by the rules established pursuant to subsection (2)
of this section, and are hired on or after January 1, 2005. The director shall
include any proposed changes to the group benefits policy in the annual
compensation report and recommendations submitted to the governor and
the joint budget committee of the general assembly pursuant to section
24-50-104 (4)(c).
SECTION 4. Appropriation - adjustments to 2022 long bill.
(1) To implement this act, the general fund appropriation made in the
annual general appropriation act for the 2022-23 state fiscal year to the
department of personnel for use by the division of human resources for total
compensation and employee engagement surveys related to state agency
services is decreased by $300,000.
(2) For the 2022-23 state fiscal year, $147,429 is appropriated to the
department of personnel. This appropriation is from the general fund and
is based on an assumption that the department will require an additional 1.0
FTE. To implement this act, the department may use this appropriation as
follows:
Executive director's office, department administration
Health, life, and dental $10,000
Short-term disability $128
Division of human resources, human resource services, state agency
services
Personal services $129,751 (1.0 FTE)
Operating Expenses $7,550
SECTION 5. Safety clause. The general assembly hereby finds,
PAGE 6-HOUSE BILL 22-1337 determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 7-HOUSE BILL 22-1337