Colorado 2024 Regular Session

Colorado House Bill HB1467 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 24-1184.01 Jessica Herrera x4218
1	8		HOUSE BILL 24-1467
2		-	BY REPRESENTATIVE(S) Bird and Sirota, Taggart, Amabile, Brown,
3		-	Daugherty, Epps, Mauro, Young, McCluskie;
4		-	also SENATOR(S) Zenzinger and Bridges, Kirkmeyer, Buckner, Exum,
5		-	Fields, Hinrichsen, Mullica, Priola, Roberts, Will.
	9	+	House Committees Senate Committees
	10	+	Appropriations Appropriations
	11	+	A BILL FOR AN ACT
6	12		C
7		-	ONCERNING MODIFICATIONS TO THE STATE EMPLOYEE TOTAL
8		-	COMPENSATION PHILOSOPHY
9		-	, AND, IN CONNECTION THEREWITH ,
10		-	REQUIRING THE DIRECTOR OF PERSONNEL TO ESTABLISH A STEP PAY
11		-	SYSTEM FOR STATE EMPLOYEES IN THE STATE PERSONNEL SYSTEM
12		-	.
13		-
14		-	Be it enacted by the General Assembly of the State of Colorado:
15		-	SECTION 1. Legislative declaration. (1) The general assembly
16		-	finds and declares that:
17		-	(a) State employees are valued partners in the work of the state;
18		-	(b) State employees should receive compensation based on a pay
19		-	system that provides predictable salary increases;
20		-	(c) Pay and pay schedules for classified employees should be
21		-	aligned with the state's total compensation philosophy and step pay per the
22		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
23		-	officers and the Governor. To determine whether the Governor has signed the bill
24		-	or taken other action on it, please consult the legislative status sheet, the legislative
25		-	history, or the Session Laws.
26		-	________
27		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
28		-	through words or numbers indicate deletions from existing law and such material is not part of
29		-	the act. partnership agreement with the certified employee organization pursuant to
30		-	section 24-50-1102.
31		-	SECTION 2. In Colorado Revised Statutes, 24-50-104, amend
32		-	(1)(a)(I), (1)(a)(II), (1)(c)(I), (1)(c)(II) introductory portion, (1)(c)(II)(C),
33		-	(1)(c)(IV), (1)(c.5)(I), (1)(j)(II)(A), (4)(a), (4)(b)(I), (4)(c), (5)(d), and
34		-	(5)(e); repeal (1)(c)(I.1), (1)(c)(I.2), (1)(c)(I.3), (1)(c)(I.5), (1)(c)(I.7),
35		-	(1)(c)(I.9), (1)(c)(II)(D), (1)(c)(II)(F), (1)(c.5)(II), and (1)(c.7); and add
36		-	(1)(a)(II.5) and (1)(c)(II)(H) as follows:
37		-	24-50-104. Job evaluation and compensation - state employee
38		-	reserve fund - created - study - report - definitions - repeal. (1) Total
39		-	compensation philosophy. (a) (I) It is the policy of the state to provide
40		-	innovative total compensation that meets or exceeds total compensation
41		-	provided by public or private sector employers or a combination of both, to
42		-	officers and employees in the state personnel system to ensure the
43		-	recruitment, motivation, and retention of a qualified and competent
44		-	workforce. For purposes of this section, "total compensation" includes, but
45		-	is not limited to, salary, group benefit plans, retirement benefits, merit
46		-	STEP
47		-	pay, incentives, premium pay practices, and leave as specified in statute or in policies of the state personnel director. For purposes of this section, "group benefit plans" means group benefit coverages as described in section 24-50-603 (9). Any monetary components of total compensation are subject to available appropriations by the general assembly.
48		-	(II) The state personnel director shall establish technically and
49		-	professionally sound survey methodologies to assess total compensation
50		-	practices, levels, and costs. Except as provided in subsection (1)(a)(III) of
51		-	this section, for purposes of this subsection (1)(a), to determine and
52		-	maintain salaries, state contributions for group benefit plans, and merit
53		-	STEP
54		-	pay that meet or exceed total compensation provided by public or private sector employment or a combination of both, the state personnel director shall 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 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.
55		-	PAGE 2-HOUSE BILL 24-1467 The state personnel director's review and determination of total
56		-	compensation practices shall not be subject to appeal except as otherwise
57		-	authorized by law or state personnel director procedures.
58		-	(II.5) W
59		-	HEN ESTABLISHING PAY PLANS IN ACCORDANCE WITH
60		-	SUBSECTION
61		-	(5) OF THIS SECTION AND RECOMMENDING COMPENSATION FOR
62		-	STATE EMPLOYEES IN ACCORDANCE WITH SUBSECTION
63		-	(4) OF THIS SECTION,
64		-	THE STATE PERSONNEL DIRECTOR SHALL DEVELOP , AFTER NEGOTIATIONS
65		-	WITH THE CERTIFIED EMPLOYEE ORGANIZATION PURSUANT TO SECTION
66		-	24-50-1112, AN EQUITABLE PAY STRUCTURE FOR EMPLOYEES IN THE STATE
67		-	PERSONNEL SYSTEM THAT PROVIDES CONSISTENT AND PREDICTABLE SALARY
68		-	INCREASES IN COMPLIANCE WITH ANY FEDERAL OR STATE LAWS AND KEEPS
69		-	THE STATE EMPLOYEE WORKFORCE COMPETITIVE WITH MARKET
70		-	COMPENSATION
71		-	. THE REQUIREMENTS OF THIS SUBSECTION (1)(a)(II.5) DO
72		-	NOT APPLY TO EMPLOYEES OF THE STATE AUDITOR
73		-	, IN ACCORDANCE WITH
74		-	SUBSECTION
75		-	(1)(h) OF THIS SECTION.
76		-	(c) (I) The state personnel director shall establish a merit
77		-	STEP pay
78		-	system in order to provide periodic salary increases for employees in the
79		-	state personnel system;
80		-	EXCEPT THAT THE STEP PAY SYSTEM DOES NOT
81		-	APPLY TO EMPLOYEES OF THE STATE AUDITOR
82		-	, IN ACCORDANCE WITH
83		-	SUBSECTION
84		-	(1)(h) OF THIS SECTION. The purpose of the merit
85		-	STEP pay
86		-	system is to provide salary increases for employees based on performance
87		-	evaluations and salary placement within the appropriate salary range. The
88		-	state personnel director shall develop the merit pay system so that a merit
89		-	pay increase is based on the relationship of performance rating distribution
90		-	and salary range distribution. The merit pay system must include the
91		-	following characteristics:
92		-	(A) Salary range is divided into quartiles, except as set forth in
93		-	subparagraph (I.1) of this paragraph (c);
94		-	(B) The lowest quartile or distribution zone in relation to the
95		-	midpoint has the highest rate of merit pay, and the rate for each successive
96		-	quartile or distribution zone is less than the preceding quartile or
97		-	distribution zone, except as provided in sub-subparagraph (E) of this
98		-	subparagraph (I);
99		-	(C) Performance evaluations are divided into three performance
100		-	categories, except as set forth in subparagraph (I.1) of this paragraph (c);
101		-	PAGE 3-HOUSE BILL 24-1467 (D) The highest performance category has the highest rate of merit
102		-	pay, and the rate for each lower performance category is less than the
103		-	preceding category, except as provided in sub-subparagraph (E) of this
104		-	subparagraph (I); and
105		-	(E) Employees who receive an unsatisfactory performance
106		-	evaluation are not eligible for merit pay.
107		-	(I.1) On or after September 1, 2015, the state personnel director
108		-	shall review the effectiveness of the use of quartiles for salary range and
109		-	three performance categories in the merit pay system. Based on the review,
110		-	the state personnel director may adjust the number of distribution zones or
111		-	performance categories to be used in the system. Thereafter, the state
112		-	personnel director shall conduct a biennial review of the distribution zones
113		-	and performance categories and may adjust the number of distribution zones
114		-	or performance categories based on the review. The minimum number of
115		-	distribution zones the state personnel director may establish is three, and the
116		-	maximum number is six.
117		-	(I.2) If a state department or institution of higher education has a
118		-	performance review system that has a different number of performance
119		-	categories than the number used by the state personnel director in the merit
120		-	pay system, the state personnel director shall establish a method for
121		-	converting the departmental or institutional categories into the categories
122		-	used in the merit pay system.
123		-	(I.3) Based on professionally sound survey methodologies, the state
124		-	personnel director shall establish annually one or more priority groups of
125		-	employees that have priority to receive merit pay based on available
126		-	moneys. The priority groups must be based on length of service, relation to
127		-	the salary range midpoint, performance, recruitment, retention needs, and
128		-	other factors established by the director. The amount of merit pay that an
129		-	employee in the state personnel system may receive depends first on the
130		-	employee's priority group and then on the amount of merit pay, if any,
131		-	associated with the employee's performance category and salary range.
132		-	(I.5) (A) Except as set forth in sub-subparagraph (B) of this
133		-	subparagraph (I.5), the merit pay system applies uniformly across state
134		-	departments and institutions of higher education subject to the provisions
135		-	of subparagraph (I.9) of this paragraph (c). For each state fiscal year the
136		-	PAGE 4-HOUSE BILL 24-1467 state personnel director shall determine the appropriate merit pay rates that
137		-	apply to all state departments and institutions and the priority group or
138		-	groups that receive merit pay.
139		-	(B) Notwithstanding any provision of this section to the contrary, an
140		-	institution of higher education may enact its own merit pay system, so long
141		-	as the system is consistent with the provisions of this subsection (1).
142		-	(I.7) An employee who is at or above the maximum amount for his
143		-	or her salary range is not eligible for a merit pay salary increase, but is
144		-	eligible for a merit pay payment that is nonbase building.
145		-	(I.9) Merit pay is subject to available appropriations. Except as set
146		-	forth in subparagraph (II) of paragraph (j) of this subsection (1), the general
147		-	assembly shall appropriate any moneys for merit pay in the annual general
148		-	appropriation act in suitable personal services line items or other line items
149		-	that include salary appropriations.
150		-	(II) In addition to any other requirements set forth in this paragraph
151		-	(c), SUBSECTION (1)(c)(II), the department of personnel shall develop the
152		-	merit STEP pay system so that it:
153		-	(C) Is developed with input from employees in the state personnel
	13	+	ONCERNING MODIFICATIONS TO THE STATE EMPLOYEE TOTAL101
	14	+	COMPENSATION PHILOSOPHY , AND, IN CONNECTION THEREWITH,102
	15	+	REQUIRING THE DIRECTOR OF PERSONNEL TO ESTABLISH A STEP103
	16	+	PAY SYSTEM FOR STATE EMPLOYEES IN THE STATE PERSONNEL104
	17	+	SYSTEM.105
	18	+	Bill Summary
	19	+	(Note: This summary applies to this bill as introduced and does
	20	+	not reflect any amendments that may be subsequently adopted. If this bill
	21	+	passes third reading in the house of introduction, a bill summary that
	22	+	applies to the reengrossed version of this bill will be available at
	23	+	http://leg.colorado.gov/
	24	+	.)
	25	+	Joint Budget Committee. Currently, the state personnel director
	26	+	(director) is required to establish survey methodologies to assess total
	27	+	SENATE
	28	+	3rd Reading Unamended
	29	+	May 7, 2024
	30	+	SENATE
	31	+	2nd Reading Unamended
	32	+	May 5, 2024
	33	+	HOUSE
	34	+	3rd Reading Unamended
	35	+	May 3, 2024
	36	+	HOUSE
	37	+	Amended 2nd Reading
	38	+	May 2, 2024
	39	+	HOUSE SPONSORSHIP
	40	+	Bird and Sirota, Taggart, Amabile, Brown, Daugherty, Epps, Mauro, McCluskie, Young
	41	+	SENATE SPONSORSHIP
	42	+	Zenzinger and Bridges, Kirkmeyer, Buckner, Exum, Fields, Hinrichsen, Mullica, Priola,
	43	+	Roberts, Will
	44	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	45	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	46	+	Dashes through the words or numbers indicate deletions from existing law. compensation practices. Under these compensation practices, a state
	47	+	employee in the state personnel system (employee) may receive merit pay
	48	+	as part of their total compensation. The bill requires the director to
	49	+	establish a "step pay" structure that provides consistent salary increases
	50	+	for employees instead of permitting merit pay.
	51	+	The bill also repeals the requirement that employees of the division
	52	+	of worker's compensation and the division of labor standards and
	53	+	statistics in the department of labor and employment be paid on a monthly
	54	+	basis.
	55	+	Be it enacted by the General Assembly of the State of Colorado:1
	56	+	SECTION 1. Legislative declaration. (1) The general assembly2
	57	+	finds and declares that:3
	58	+	(a) State employees are valued partners in the work of the state;4
	59	+	(b) State employees should receive compensation based on a pay5
	60	+	system that provides predictable salary increases;6
	61	+	(c) Pay and pay schedules for classified employees should be7
	62	+	aligned with the state's total compensation philosophy and step pay per8
	63	+	the partnership agreement with the certified employee organization9
	64	+	pursuant to section 24-50-1102.10
	65	+	SECTION 2. In Colorado Revised Statutes, 24-50-104, amend11
	66	+	(1)(a)(I), (1)(a)(II), (1)(c)(I), (1)(c)(II) introductory portion, (1)(c)(II)(C),12
	67	+	(1)(c)(IV), (1)(c.5)(I), (1)(j)(II)(A), (4)(a), (4)(b)(I), (4)(c), (5)(d), and13
	68	+	(5)(e); repeal (1)(c)(I.1), (1)(c)(I.2), (1)(c)(I.3), (1)(c)(I.5), (1)(c)(I.7),14
	69	+	(1)(c)(I.9), (1)(c)(II)(D), (1)(c)(II)(F), (1)(c.5)(II), and (1)(c.7); and add15
	70	+	(1)(a)(II.5) and (1)(c)(II)(H) as follows:16
	71	+	24-50-104. Job evaluation and compensation - state employee17
	72	+	reserve fund - created - study - report - definitions - repeal. (1) Total18
	73	+	compensation philosophy. (a) (I) It is the policy of the state to provide19
	74	+	innovative total compensation that meets or exceeds total compensation20
	75	+	1467-2- provided by public or private sector employers or a combination of both,1
	76	+	to officers and employees in the state personnel system to ensure the2
	77	+	recruitment, motivation, and retention of a qualified and competent3
	78	+	workforce. For purposes of this section, "total compensation" includes,4
	79	+	but is not limited to, salary, group benefit plans, retirement benefits, merit5
	80	+	STEP pay, incentives, premium pay practices, and leave as specified in6
	81	+	statute or in policies of the state personnel director. For purposes of this7
	82	+	section, "group benefit plans" means group benefit coverages as described8
	83	+	in section 24-50-603 (9). Any monetary components of total9
	84	+	compensation are subject to available appropriations by the general10
	85	+	assembly.11
	86	+	(II) The state personnel director shall establish technically and12
	87	+	professionally sound survey methodologies to assess total compensation13
	88	+	practices, levels, and costs. Except as provided in subsection (1)(a)(III)14
	89	+	of this section, for purposes of this subsection (1)(a), to determine and15
	90	+	maintain salaries, state contributions for group benefit plans, and merit16
	91	+	STEP pay that meet or exceed total compensation provided by public or17
	92	+	private sector employment or a combination of both, the state personnel18
	93	+	director shall quadrennially review the results of appropriate surveys by19
	94	+	public or private organizations, including surveys by the state personnel20
	95	+	director set forth in subsection (4)(b)(I) of this section. Any surveys21
	96	+	provided on a confidential basis shall not be revealed except to the state22
	97	+	auditor's office and the private firm conducting the audit required in23
	98	+	subsection (4)(b) of this section. The state personnel director shall adopt24
	99	+	appropriate procedures to determine and maintain other elements of total25
	100	+	compensation, including the payment of incentive awards to employees26
	101	+	in the state personnel system. The state personnel director's review and27
	102	+	1467
	103	+	-3- determination of total compensation practices shall not be subject to1
	104	+	appeal except as otherwise authorized by law or state personnel director2
	105	+	procedures.3
	106	+	(II.5) WHEN ESTABLISHING PAY PLANS IN ACCORDANCE WITH4
	107	+	SUBSECTION (5) OF THIS SECTION AND RECOMMENDING COMPENSATION5
	108	+	FOR STATE EMPLOYEES IN ACCORDANCE WITH SUBSECTION (4) OF THIS6
	109	+	SECTION, THE STATE PERSONNEL DIRECTOR SHALL DEVELOP , AFTER7
	110	+	NEGOTIATIONS WITH THE CERTIFIED EMPLOYEE ORGANIZATION PURSUANT8
	111	+	TO SECTION 24-50-1112, AN EQUITABLE PAY STRUCTURE FOR EMPLOYEES9
	112	+	IN THE STATE PERSONNEL SYSTEM THAT PROVIDES CONSISTENT AND10
	113	+	PREDICTABLE SALARY INCREASES IN COMPLIANCE WITH ANY FEDERAL OR11
	114	+	STATE LAWS AND KEEPS THE STATE EMPLOYEE WORKFORCE COMPETITIVE12
	115	+	WITH MARKET COMPENSATION. THE REQUIREMENTS OF THIS SUBSECTION13
	116	+	(1)(a)(II.5) DO NOT APPLY TO EMPLOYEES OF THE STATE AUDITOR, IN14
	117	+	ACCORDANCE WITH SUBSECTION (1)(h) OF THIS SECTION.15
	118	+	(c) (I) The state personnel director shall establish a merit STEP pay16
	119	+	system in order to provide periodic salary increases for employees in the17
	120	+	state personnel system; EXCEPT THAT THE STEP PAY SYSTEM DOES NOT18
	121	+	APPLY TO EMPLOYEES OF THE STATE AUDITOR, IN ACCORDANCE WITH19
	122	+	SUBSECTION (1)(h) OF THIS SECTION. The purpose of the merit STEP pay20
	123	+	system is to provide salary increases for employees based on performance21
	124	+	evaluations and salary placement within the appropriate salary range. The22
	125	+	state personnel director shall develop the merit pay system so that a merit23
	126	+	pay increase is based on the relationship of performance rating24
	127	+	distribution and salary range distribution. The merit pay system must25
	128	+	include the following characteristics:26
	129	+	(A) Salary range is divided into quartiles, except as set forth in27
	130	+	1467
	131	+	-4- subparagraph (I.1) of this paragraph (c);1
	132	+	(B) The lowest quartile or distribution zone in relation to the2
	133	+	midpoint has the highest rate of merit pay, and the rate for each3
	134	+	successive quartile or distribution zone is less than the preceding quartile4
	135	+	or distribution zone, except as provided in sub-subparagraph (E) of this5
	136	+	subparagraph (I);6
	137	+	(C) Performance evaluations are divided into three performance7
	138	+	categories, except as set forth in subparagraph (I.1) of this paragraph (c);8
	139	+	(D) The highest performance category has the highest rate of merit9
	140	+	pay, and the rate for each lower performance category is less than the10
	141	+	preceding category, except as provided in sub-subparagraph (E) of this11
	142	+	subparagraph (I); and12
	143	+	(E) Employees who receive an unsatisfactory performance13
	144	+	evaluation are not eligible for merit pay.14
	145	+	(I.1) On or after September 1, 2015, the state personnel director15
	146	+	shall review the effectiveness of the use of quartiles for salary range and16
	147	+	three performance categories in the merit pay system. Based on the17
	148	+	review, the state personnel director may adjust the number of distribution18
	149	+	zones or performance categories to be used in the system. Thereafter, the19
	150	+	state personnel director shall conduct a biennial review of the distribution20
	151	+	zones and performance categories and may adjust the number of21
	152	+	distribution zones or performance categories based on the review. The22
	153	+	minimum number of distribution zones the state personnel director may23
	154	+	establish is three, and the maximum number is six.24
	155	+	(I.2) If a state department or institution of higher education has a25
	156	+	performance review system that has a different number of performance26
	157	+	categories than the number used by the state personnel director in the27
	158	+	1467
	159	+	-5- merit pay system, the state personnel director shall establish a method for1
	160	+	converting the departmental or institutional categories into the categories2
	161	+	used in the merit pay system.3
	162	+	(I.3) Based on professionally sound survey methodologies, the4
	163	+	state personnel director shall establish annually one or more priority5
	164	+	groups of employees that have priority to receive merit pay based on6
	165	+	available moneys. The priority groups must be based on length of service,7
	166	+	relation to the salary range midpoint, performance, recruitment, retention8
	167	+	needs, and other factors established by the director. The amount of merit9
	168	+	pay that an employee in the state personnel system may receive depends10
	169	+	first on the employee's priority group and then on the amount of merit11
	170	+	pay, if any, associated with the employee's performance category and12
	171	+	salary range.13
	172	+	(I.5) (A) Except as set forth in sub-subparagraph (B) of this14
	173	+	subparagraph (I.5), the merit pay system applies uniformly across state15
	174	+	departments and institutions of higher education subject to the provisions16
	175	+	of subparagraph (I.9) of this paragraph (c). For each state fiscal year the17
	176	+	state personnel director shall determine the appropriate merit pay rates18
	177	+	that apply to all state departments and institutions and the priority group19
	178	+	or groups that receive merit pay.20
	179	+	(B) Notwithstanding any provision of this section to the contrary,21
	180	+	an institution of higher education may enact its own merit pay system, so22
	181	+	long as the system is consistent with the provisions of this subsection (1).23
	182	+	(I.7) An employee who is at or above the maximum amount for24
	183	+	his or her salary range is not eligible for a merit pay salary increase, but25
	184	+	is eligible for a merit pay payment that is nonbase building.26
	185	+	(I.9) Merit pay is subject to available appropriations. Except as set27
	186	+	1467
	187	+	-6- forth in subparagraph (II) of paragraph (j) of this subsection (1), the1
	188	+	general assembly shall appropriate any moneys for merit pay in the annual2
	189	+	general appropriation act in suitable personal services line items or other3
	190	+	line items that include salary appropriations.4
	191	+	(II) In addition to any other requirements set forth in this5
	192	+	paragraph (c), SUBSECTION (1)(c)(II), the department of personnel shall6
	193	+	develop the merit STEP pay system so that it:7
	194	+	(C) Is developed with input from employees in the state personnel8
154	195		system, managers, and other affected parties;
155		-	AND
156		-	(D) Emphasizes planning, management, and evaluation of employee
157		-	performance; and
158		-	(F) Prohibits a forced distribution of performance ratings.
159		-	(H) MINIMIZES EMPLOYEE PAY DISRUPTIONS RESULTING FROM
160		-	IMPLEMENTATION OR MODIFICATION OF STEP PAY
161		-	.
162		-	(IV) Each state department and institution of higher education shallensure that it has a performance review system that can be used to
163		-	implement a merit pay system. The state personnel director shall encourage
164		-	state departments and institutions of higher education to implement
165		-	performance evaluations of employees that are as objective as possible and
166		-	that, as soon as possible and wherever feasible, include an assessment from
167		-	multiple sources of each employee's performance. Such sources shall
168		-	PAGE 5-HOUSE BILL 24-1467 include, where applicable, the employee's self-assessment; the employee's
169		-	superiors, subordinates, and peers; and any other applicable sources of an
170		-	employee's performance. The state personnel director shall adopt
171		-	procedures to establish a process to resolve employee disputes related to
172		-	performance evaluations that do not result in corrective or disciplinary
173		-	action against the employee. Each program established by a state
174		-	department or institution of higher education pursuant to this subparagraph
175		-	(IV) shall be SUBSECTION (1)(c)(IV) IS subject to the director's approval.
176		-	(c.5) (I) The state personnel director shall provide for the evaluation
177		-	of employee performance. Each employee shall be evaluated at least once
178		-	a year. The evaluation of performance shall be used as a factor in
179		-	compensation, promotions, demotions, removals, reduction of force, and all
180		-	other transactions as determined by the state personnel director in which
181		-	considerations of quality of service are properly a factor.
182		-	(II) A supervisor, including a supervisory state employee not within
183		-	the state personnel system, who does not evaluate subordinate employees
184		-	in the state personnel system as required by this paragraph (c.5) on at least
185		-	an annual basis shall be suspended from work without pay for a period of
186		-	not less than one workday. The provisions of this subparagraph (II) shall
187		-	only apply to supervisors who are state employees.
188		-	(c.7) In addition to the periodic salary increases authorized by
189		-	paragraph (c) of this subsection (1), the performance review component of
190		-	the merit pay system established pursuant to subparagraph (IV) of
191		-	paragraph (c) of this subsection (1) shall be used for the purpose of
192		-	determining eligibility for a performance-based award permitted pursuant
193		-	to section 24-38-103 (1.5). The award shall be in addition to any other
194		-	compensation authorized by law, and it shall not affect the compensation
195		-	that the employee is entitled to receive in subsequent years.
196		-	(j) (II) (A) The state employee reserve fund is hereby created in the
197		-	state treasury, which consists of money transferred pursuant to subsection
198		-	(1)(j)(IV) of this section. Money in the fund is continuously appropriated
199		-	for the purpose of providing merit pay to employees as
200		-	provided in this
201		-	subsection (1). No money from the fund shall be expended without the
202		-	approval of the director of the office of state planning and budgeting.
203		-	(4) Quadrennial compensation process. (a) The purpose of the
204		-	PAGE 6-HOUSE BILL 24-1467 quadrennial compensation process is to determine any necessary
205		-	adjustments to state employee salaries, state contributions for group benefit
206		-	plans, and merit
207		-	STEP pay. The quadrennial compensation survey, based on
208		-	an analysis of surveys by public or private organizations, including surveys
209		-	by the state personnel director, shall include a fair sample of public and
210		-	private sector employers and jobs, including areas outside the Denver
211		-	metropolitan area. In order to establish confidence in the selection of
212		-	surveys, the state personnel director shall meet and confer in good faith with
213		-	management and state employee representatives.
214		-	(b) (I) On October 1, 2025, and on October 1 of each fourth year
215		-	thereafter, the state personnel director shall prepare a quadrennial
216		-	compensation report based on the analysis of surveys conducted pursuant
217		-	to subsection (4)(a) of this section. The purpose of the quadrennial
218		-	compensation report shall be to reflect all adjustments necessary to maintain
219		-	the salary structure, state contributions for group benefit plans, and merit
220		-	STEP pay FOR THE UPCOMING FISCAL YEAR. The state personnel director shall
221		-	also include a detailed analysis of salary ranges for all employees in the
222		-	state personnel system and how employees' salaries are distributed within
223		-	these ranges. The state personnel director shall also publish the report.
224		-	Notwithstanding the requirement in section 24-1-136 (11)(a)(I), the
225		-	requirement to submit the report required in this subsection (4)(b)(I)
226		-	continues indefinitely. The state auditor is responsible for contracting with
227		-	a private firm to conduct a performance audit of the procedures and
228		-	application of data, including any survey conducted by the state personnel
229		-	director. Beginning January 1, 2005, through January 1, 2021, and
230		-	beginning on January 1, 2026, the audits shall be conducted every four
231		-	years. A report shall be submitted to the governor and the general assembly
232		-	by the December 30 immediately following the completion of the audit.
233		-	(c) By September 15, 2017, and by September 15 of each year
234		-	thereafter through September 15, 2021, and on or before October 1, 2022,
235		-	and on or before October 1 of each year thereafter, the state personnel
236		-	director shall submit recommendations and estimated costs for state
237		-	employee compensation for the next fiscal year, covering salaries, state
238		-	contributions for group benefit plans, and merit
239		-	STEP pay, to the governor
240		-	and the joint budget committee of the general assembly. The
241		-	recommendations shall reflect a consideration of the results of the
242		-	quadrennial compensation survey, fiscal constraints, the ability to recruit
243		-	and retain state employees, appropriate adjustments with respect to state
244		-	PAGE 7-HOUSE BILL 24-1467 employee compensation, and those costs resulting from implementation of
245		-	section 24-50-110 (1)(a). The recommendations for state contributions for
246		-	group benefit plans shall specify the annual group benefit plan year
247		-	established pursuant to section 24-50-604 (1)(m). The recommendations
248		-	submitted to the governor and the joint budget committee COMPENSATION
249		-	REPORT
250		-	shall include the results of the surveys of public or private
251		-	employers and jobs. The state personnel director shall also publish such
252		-	recommendations
253		-	REPORT. This subsection (4)(c) is exempt from the
254		-	provisions of section 24-1-136 (11), and the periodic reporting requirements
255		-	of this section are effective until changed by the general assembly acting by
256		-	bill.
257		-	(5) Pay plans. (d) In the medical pay plans, there are no
258		-	anniversary-based merit
259		-	STEP increases. The salaries in such pay plans are
260		-	based on the negotiation of an annual contract between the employee and
261		-	the department head or the state auditor, when appropriate, and the amount
262		-	of such salaries may increase, decrease, or remain unchanged from year to
263		-	year. Any employee dismissed for failure to perform under such contract
264		-	may only appeal directly to the state personnel board.
265		-	(e) In the pay plans for the senior executive service and those
266		-	positions specified in section 13 (2)(a)(XI) of article XII of the state
267		-	constitution, there are no anniversary-based merit
268		-	STEP increases. The
269		-	salaries in such pay plans are based on policies set forth by the state
270		-	personnel director. The amount of such salaries may increase, decrease, or
271		-	remain unchanged from year to year.
272		-	SECTION 3. In Colorado Revised Statutes, amend 8-47-205 as
273		-	follows:
274		-	8-47-205. Salaries of employees of division. All deputies,
275		-	statisticians, accountants, clerks, experts, and other employees of the
276		-	division shall receive such compensation as may be fixed by law. The
277		-	salaries so fixed shall be paid monthly
278		-	from the fund appropriated for the
279		-	use of the division after approval by the director.
280		-	SECTION 4. In Colorado Revised Statutes, 8-1-103, amend (2) as
281		-	follows:
282		-	8-1-103. Division of labor standards and statistics - director -
283		-	PAGE 8-HOUSE BILL 24-1467 employees - qualifications - compensation - expenses. (2) All employees,
284		-	except experts, shall have been for one year prior to such employment or
285		-	appointment bona fide residents of this state and, while in the employ of the
286		-	division, shall receive such compensation as is fixed by the state personnel
287		-	system laws of this state, such compensation to be paid monthly
288		-	from funds
289		-	appropriated for the use of the division. All expenses incurred by the
290		-	division and its employees pursuant to the provisions of law shall be paid
291		-	from funds appropriated for its use upon the approval of the director. The
292		-	traveling expenses of the director or of any employee of the division
293		-	incurred while on business of the division outside this state shall be paid in
294		-	the manner prescribed in this subsection (2), but only when such expenses
295		-	are authorized in advance.
296		-	SECTION 5. In Colorado Revised Statutes, 24-38-103, repeal (1.5)
297		-	as follows:
298		-	24-38-103. Agency authority and incentives for budget savings.
299		-	(1.5) Beginning with the 2004-05 fiscal year, an agency that achieves cost
300		-	savings, as an alternative to the transfer authorized pursuant to subsection
301		-	(1) of this section, may transfer fifty percent of the amount of the cost
302		-	savings from one item of appropriation made to the agency in the general
303		-	appropriation act or any supplemental appropriation act to the item for
304		-	personal services in the appropriation made to the same agency for the
305		-	purpose of paying performance-based awards to employees of the agency.
306		-	The award shall be awarded in the fiscal year in which the cost savings are
307		-	achieved. and shall be made consistent with the performance review done
308		-	in accordance with the merit pay system identified in section 24-50-104
309		-	(1)(c.7). Prior to the end of the state fiscal year in which a transfer is made
310		-	pursuant to this subsection (1.5), an agency shall submit written notice to
311		-	the joint budget committee, the office of state planning and budgeting, and
312		-	the state controller of the amount of the cost savings achieved by the agency
313		-	during the state fiscal year.
314		-	SECTION 6. In Colorado Revised Statutes, 24-50-109.5, amend
315		-	(2) as follows:
316		-	24-50-109.5. Fiscal emergencies - emergency orders. (2) With the
317		-	advice and assistance of the state personnel director, the governor shall take
318		-	such actions as necessary to be utilized by each principal department and
319		-	each institution of higher education, including the Auraria higher education
320		-	PAGE 9-HOUSE BILL 24-1467 center established in article 70 of title 23, C.R.S., to reduce state personnel
321		-	expenditures in the event of a fiscal emergency. Such actions shall include,
322		-	but need not be limited to, separations, voluntary furloughs, mandatory
323		-	furloughs, suspension of increases in salary and state contributions for
324		-	group benefit plans, suspension of merit
325		-	STEP pay, job-sharing, hiring
326		-	freezes, forced reallocation of vacant positions, or a combination thereof.
327		-	Any suspension of salary increases or increases in state contributions for
328		-	group benefit plans shall apply statewide to all employees in the state
329		-	personnel system. If mandatory furloughs are utilized in any principal
330		-	department or institution of higher education, including the Auraria higher
331		-	education center established in article 70 of title 23, C.R.S.,
332		-	such furloughs
333		-	shall be implemented by each appointing authority so that all employees
334		-	under such authority, regardless of status, position, or level of employment,
335		-	are furloughed for the same length of time, consistent with section 24-2-103
336		-	(2). Employees of the following agencies and employees with duties as
337		-	described shall not be subject to mandatory furlough: The Colorado state
338		-	patrol, correctional officers, police officers, employees of the department
339		-	of human services providing hands-on care, and employees providing
340		-	hands-on nursing care.
341		-	SECTION 7. In Colorado Revised Statutes, 24-50-110, amend (1)
342		-	introductory portion and (1)(b) as follows:
343		-	24-50-110. Budget control - personal services. (1) In order to
344		-	provide controls and proper identification of personal services costs
345		-	necessary to carry out the policy of the state regarding compensation of state
346		-	employees, the following administrative and fiscal procedures shall
347		-	apply:
348		-	(b) In their annual budget requests, the heads of all principal
349		-	departments of state government shall set forth separately the projected
350		-	costs of personal services arising from anticipated classification reviews,
351		-	promotions, and other increases in compensation or bonuses for employees
352		-	in their departments. The costs of personal services shall include any merit
353		-	STEP pay.
354		-	SECTION 8. In Colorado Revised Statutes, 24-75-112, amend (1)
355		-	introductory portion and (1)(b) as follows:
356		-	24-75-112. Annual general appropriation act - headnote
357		-	definitions - general provisions - footnotes. (1) As used in the annual
358		-	PAGE 10-HOUSE BILL 24-1467 general appropriation act, the following definitions and general provisions
359		-	shall apply for the headnote terms preceding and specifying the purpose of
360		-	certain line items of appropriation:
361		-	(b) "Centralized appropriation" means the appropriation of funds to
362		-	an executive director of a department or a central administrative program
363		-	intended for subsequent allocation and expenditure at and among a
364		-	department's divisions, programs, agencies, or long bill groups in order to
365		-	reflect the amount of such resources actually used in each program or
366		-	division. Such centralized appropriations may include salary survey, merit
367		-	STEP pay or anniversary increases, senior executive service, shift
368		-	differential, group health and life insurance, capital outlay, ADP capital
369		-	outlay, information technology asset maintenance, legal services, purchase
370		-	of services from computer center, multiuse network payments, vehicle lease
371		-	payments, leased space, financed purchase of an asset, certificate of
372		-	participation, payment to risk management and property funds, short-term
373		-	disability insurance, utilities, communications services payments,
374		-	amortization equalization disbursements, supplemental amortization
375		-	equalization disbursements, administrative law judge services, and
376		-	centralized ADP. As provided in subsection (1)(l) of this section, capital
377		-	outlay is included within the appropriation for "operating expenses".
378		-	SECTION 9. Safety clause. The general assembly finds,
379		-	determines, and declares that this act is necessary for the immediate
380		-	PAGE 11-HOUSE BILL 24-1467 preservation of the public peace, health, or safety or for appropriations for
381		-	the support and maintenance of the departments of the state and state
382		-	institutions.
383		-	____________________________ ____________________________
384		-	Julie McCluskie Steve Fenberg
385		-	SPEAKER OF THE HOUSE PRESIDENT OF
386		-	OF REPRESENTATIVES THE SENATE
387		-	____________________________ ____________________________
388		-	Robin Jones Cindi L. Markwell
389		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
390		-	OF REPRESENTATIVES THE SENATE
391		-	APPROVED________________________________________
392		-	(Date and Time)
393		-	_________________________________________
394		-	Jared S. Polis
395		-	GOVERNOR OF THE STATE OF COLORADO
396		-	PAGE 12-HOUSE BILL 24-1467
	196	+	AND9
	197	+	(D) Emphasizes planning, management, and evaluation of
	198	+	10
	199	+	employee performance; and11
	200	+	(F) Prohibits a forced distribution of performance ratings.12
	201	+	(H) M
	202	+	INIMIZES EMPLOYEE PAY DISRUPTIONS RESULTING FROM13
	203	+	IMPLEMENTATION OR MODIFICATION OF STEP PAY .14
	204	+	(IV) Each state department and institution of higher education
	205	+	15
	206	+	shall ensure that it has a performance review system that can be used to16
	207	+	implement a merit pay system. The state personnel director shall17
	208	+	encourage state departments and institutions of higher education to18
	209	+	implement performance evaluations of employees that are as objective as19
	210	+	possible and that, as soon as possible and wherever feasible, include an20
	211	+	assessment from multiple sources of each employee's performance. Such21
	212	+	sources shall include, where applicable, the employee's self-assessment;22
	213	+	the employee's superiors, subordinates, and peers; and any other23
	214	+	applicable sources of an employee's performance. The state personnel24
	215	+	director shall adopt procedures to establish a process to resolve employee25
	216	+	disputes related to performance evaluations that do not result in corrective26
	217	+	or disciplinary action against the employee. Each program established by27
	218	+	1467
	219	+	-7- a state department or institution of higher education pursuant to this1
	220	+	subparagraph (IV) shall be SUBSECTION (1)(c)(IV) IS subject to the2
	221	+	director's approval.3
	222	+	(c.5) (I) The state personnel director shall provide for the4
	223	+	evaluation of employee performance. Each employee shall be evaluated5
	224	+	at least once a year. The evaluation of performance shall be used as a6
	225	+	factor in compensation, promotions, demotions, removals, reduction of7
	226	+	force, and all other transactions as determined by the state personnel8
	227	+	director in which considerations of quality of service are properly a9
	228	+	factor.10
	229	+	(II) A supervisor, including a supervisory state employee not11
	230	+	within the state personnel system, who does not evaluate subordinate12
	231	+	employees in the state personnel system as required by this paragraph13
	232	+	(c.5) on at least an annual basis shall be suspended from work without14
	233	+	pay for a period of not less than one workday. The provisions of this15
	234	+	subparagraph (II) shall only apply to supervisors who are state employees.16
	235	+	(c.7) In addition to the periodic salary increases authorized by17
	236	+	paragraph (c) of this subsection (1), the performance review component18
	237	+	of the merit pay system established pursuant to subparagraph (IV) of19
	238	+	paragraph (c) of this subsection (1) shall be used for the purpose of20
	239	+	determining eligibility for a performance-based award permitted pursuant21
	240	+	to section 24-38-103 (1.5). The award shall be in addition to any other22
	241	+	compensation authorized by law, and it shall not affect the compensation23
	242	+	that the employee is entitled to receive in subsequent years.24
	243	+	(j) (II) (A) The state employee reserve fund is hereby created in25
	244	+	the state treasury, which consists of money transferred pursuant to26
	245	+	subsection (1)(j)(IV) of this section. Money in the fund is continuously27
	246	+	1467
	247	+	-8- appropriated for the purpose of providing merit pay to employees as1
	248	+	provided in this subsection (1). No money from the fund shall be2
	249	+	expended without the approval of the director of the office of state3
	250	+	planning and budgeting.4
	251	+	(4) Quadrennial compensation process. (a) The purpose of the5
	252	+	quadrennial compensation process is to determine any necessary6
	253	+	adjustments to state employee salaries, state contributions for group7
	254	+	benefit plans, and merit STEP pay. The quadrennial compensation survey,8
	255	+	based on an analysis of surveys by public or private organizations,9
	256	+	including surveys by the state personnel director, shall include a fair10
	257	+	sample of public and private sector employers and jobs, including areas11
	258	+	outside the Denver metropolitan area. In order to establish confidence in12
	259	+	the selection of surveys, the state personnel director shall meet and confer13
	260	+	in good faith with management and state employee representatives.14
	261	+	(b) (I) On October 1, 2025, and on October 1 of each fourth year15
	262	+	thereafter, the state personnel director shall prepare a quadrennial16
	263	+	compensation report based on the analysis of surveys conducted pursuant17
	264	+	to subsection (4)(a) of this section. The purpose of the quadrennial18
	265	+	compensation report shall be to reflect all adjustments necessary to19
	266	+	maintain the salary structure, state contributions for group benefit plans,20
	267	+	and merit STEP pay FOR THE UPCOMING FISCAL YEAR. The state personnel21
	268	+	director shall also include a detailed analysis of salary ranges for all22
	269	+	employees in the state personnel system and how employees' salaries are23
	270	+	distributed within these ranges. The state personnel director shall also24
	271	+	publish the report. Notwithstanding the requirement in section 24-1-13625
	272	+	(11)(a)(I), the requirement to submit the report required in this subsection26
	273	+	(4)(b)(I) continues indefinitely. The state auditor is responsible for27
	274	+	1467
	275	+	-9- contracting with a private firm to conduct a performance audit of the1
	276	+	procedures and application of data, including any survey conducted by the2
	277	+	state personnel director. Beginning January 1, 2005, through January 1,3
	278	+	2021, and beginning on January 1, 2026, the audits shall be conducted4
	279	+	every four years. A report shall be submitted to the governor and the5
	280	+	general assembly by the December 30 immediately following the6
	281	+	completion of the audit.7
	282	+	(c) By September 15, 2017, and by September 15 of each year8
	283	+	thereafter through September 15, 2021, and on or before October 1, 2022,9
	284	+	and on or before October 1 of each year thereafter, the state personnel10
	285	+	director shall submit recommendations and estimated costs for state11
	286	+	employee compensation for the next fiscal year, covering salaries, state12
	287	+	contributions for group benefit plans, and merit STEP pay, to the governor13
	288	+	and the joint budget committee of the general assembly. The14
	289	+	recommendations shall reflect a consideration of the results of the15
	290	+	quadrennial compensation survey, fiscal constraints, the ability to recruit16
	291	+	and retain state employees, appropriate adjustments with respect to state17
	292	+	employee compensation, and those costs resulting from implementation18
	293	+	of section 24-50-110 (1)(a). The recommendations for state contributions19
	294	+	for group benefit plans shall specify the annual group benefit plan year20
	295	+	established pursuant to section 24-50-604 (1)(m). The recommendations21
	296	+	submitted to the governor and the joint budget committee COMPENSATION22
	297	+	REPORT shall include the results of the surveys of public or private23
	298	+	employers and jobs. The state personnel director shall also publish such24
	299	+	recommendations REPORT. This subsection (4)(c) is exempt from the25
	300	+	provisions of section 24-1-136 (11), and the periodic reporting26
	301	+	requirements of this section are effective until changed by the general27
	302	+	1467
	303	+	-10- assembly acting by bill.1
	304	+	(5) Pay plans. (d) In the medical pay plans, there are no2
	305	+	anniversary-based merit STEP increases. The salaries in such pay plans are3
	306	+	based on the negotiation of an annual contract between the employee and4
	307	+	the department head or the state auditor, when appropriate, and the5
	308	+	amount of such salaries may increase, decrease, or remain unchanged6
	309	+	from year to year. Any employee dismissed for failure to perform under7
	310	+	such contract may only appeal directly to the state personnel board. 8
	311	+	(e) In the pay plans for the senior executive service and those9
	312	+	positions specified in section 13 (2)(a)(XI) of article XII of the state10
	313	+	constitution, there are no anniversary-based merit STEP increases. The11
	314	+	salaries in such pay plans are based on policies set forth by the state12
	315	+	personnel director. The amount of such salaries may increase, decrease,13
	316	+	or remain unchanged from year to year.14
	317	+	SECTION 3. In Colorado Revised Statutes, amend 8-47-205 as15
	318	+	follows:16
	319	+	8-47-205. Salaries of employees of division. All deputies,17
	320	+	statisticians, accountants, clerks, experts, and other employees of the18
	321	+	division shall receive such compensation as may be fixed by law. The19
	322	+	salaries so fixed shall be paid monthly from the fund appropriated for the20
	323	+	use of the division after approval by the director.21
	324	+	SECTION 4. In Colorado Revised Statutes, 8-1-103, amend (2)22
	325	+	as follows:23
	326	+	8-1-103. Division of labor standards and statistics - director -24
	327	+	employees - qualifications - compensation - expenses. (2) All25
	328	+	employees, except experts, shall have been for one year prior to such26
	329	+	employment or appointment bona fide residents of this state and, while27
	330	+	1467
	331	+	-11- in the employ of the division, shall receive such compensation as is fixed1
	332	+	by the state personnel system laws of this state, such compensation to be2
	333	+	paid monthly from funds appropriated for the use of the division. All3
	334	+	expenses incurred by the division and its employees pursuant to the4
	335	+	provisions of law shall be paid from funds appropriated for its use upon5
	336	+	the approval of the director. The traveling expenses of the director or of6
	337	+	any employee of the division incurred while on business of the division7
	338	+	outside this state shall be paid in the manner prescribed in this subsection8
	339	+	(2), but only when such expenses are authorized in advance.9
	340	+	SECTION 5. In Colorado Revised Statutes, 24-38-103, repeal10
	341	+	(1.5) as follows:11
	342	+	24-38-103. Agency authority and incentives for budget12
	343	+	savings. (1.5) Beginning with the 2004-05 fiscal year, an agency that13
	344	+	achieves cost savings, as an alternative to the transfer authorized pursuant14
	345	+	to subsection (1) of this section, may transfer fifty percent of the amount15
	346	+	of the cost savings from one item of appropriation made to the agency in16
	347	+	the general appropriation act or any supplemental appropriation act to the17
	348	+	item for personal services in the appropriation made to the same agency18
	349	+	for the purpose of paying performance-based awards to employees of the19
	350	+	agency. The award shall be awarded in the fiscal year in which the cost20
	351	+	savings are achieved. and shall be made consistent with the performance21
	352	+	review done in accordance with the merit pay system identified in section22
	353	+	24-50-104 (1)(c.7). Prior to the end of the state fiscal year in which a23
	354	+	transfer is made pursuant to this subsection (1.5), an agency shall submit24
	355	+	written notice to the joint budget committee, the office of state planning25
	356	+	and budgeting, and the state controller of the amount of the cost savings26
	357	+	achieved by the agency during the state fiscal year.27
	358	+	1467
	359	+	-12- SECTION 6. In Colorado Revised Statutes, 24-50-109.5, amend1
	360	+	(2) as follows:2
	361	+	24-50-109.5. Fiscal emergencies - emergency orders. (2) With3
	362	+	the advice and assistance of the state personnel director, the governor4
	363	+	shall take such actions as necessary to be utilized by each principal5
	364	+	department and each institution of higher education, including the Auraria6
	365	+	higher education center established in article 70 of title 23, C.R.S., to7
	366	+	reduce state personnel expenditures in the event of a fiscal emergency.8
	367	+	Such actions shall include, but need not be limited to, separations,9
	368	+	voluntary furloughs, mandatory furloughs, suspension of increases in10
	369	+	salary and state contributions for group benefit plans, suspension of merit11
	370	+	STEP pay, job-sharing, hiring freezes, forced reallocation of vacant12
	371	+	positions, or a combination thereof. Any suspension of salary increases13
	372	+	or increases in state contributions for group benefit plans shall apply14
	373	+	statewide to all employees in the state personnel system. If mandatory15
	374	+	furloughs are utilized in any principal department or institution of higher16
	375	+	education, including the Auraria higher education center established in17
	376	+	article 70 of title 23, C.R.S., such furloughs shall be implemented by each18
	377	+	appointing authority so that all employees under such authority,19
	378	+	regardless of status, position, or level of employment, are furloughed for20
	379	+	the same length of time, consistent with section 24-2-103 (2). Employees21
	380	+	of the following agencies and employees with duties as described shall22
	381	+	not be subject to mandatory furlough: The Colorado state patrol,23
	382	+	correctional officers, police officers, employees of the department of24
	383	+	human services providing hands-on care, and employees providing25
	384	+	hands-on nursing care.26
	385	+	SECTION 7. In Colorado Revised Statutes, 24-50-110, amend27
	386	+	1467
	387	+	-13- (1) introductory portion and (1)(b) as follows:1
	388	+	24-50-110. Budget control - personal services. (1) In order to2
	389	+	provide controls and proper identification of personal services costs3
	390	+	necessary to carry out the policy of the state regarding compensation of4
	391	+	state employees, the following administrative and fiscal procedures shall5
	392	+	apply:6
	393	+	(b) In their annual budget requests, the heads of all principal7
	394	+	departments of state government shall set forth separately the projected8
	395	+	costs of personal services arising from anticipated classification reviews,9
	396	+	promotions, and other increases in compensation or bonuses for10
	397	+	employees in their departments. The costs of personal services shall11
	398	+	include any merit STEP pay.12
	399	+	SECTION 8. In Colorado Revised Statutes, 24-75-112, amend13
	400	+	(1) introductory portion and (1)(b) as follows:14
	401	+	24-75-112. Annual general appropriation act - headnote15
	402	+	definitions - general provisions - footnotes. (1) As used in the annual16
	403	+	general appropriation act, the following definitions and general provisions17
	404	+	shall apply for the headnote terms preceding and specifying the purpose18
	405	+	of certain line items of appropriation:19
	406	+	(b) "Centralized appropriation" means the appropriation of funds20
	407	+	to an executive director of a department or a central administrative21
	408	+	program intended for subsequent allocation and expenditure at and among22
	409	+	a department's divisions, programs, agencies, or long bill groups in order23
	410	+	to reflect the amount of such resources actually used in each program or24
	411	+	division. Such centralized appropriations may include salary survey, merit25
	412	+	STEP pay or anniversary increases, senior executive service, shift26
	413	+	differential, group health and life insurance, capital outlay, ADP capital27
	414	+	1467
	415	+	-14- outlay, information technology asset maintenance, legal services,1
	416	+	purchase of services from computer center, multiuse network payments,2
	417	+	vehicle lease payments, leased space, financed purchase of an asset,3
	418	+	certificate of participation, payment to risk management and property4
	419	+	funds, short-term disability insurance, utilities, communications services5
	420	+	payments, amortization equalization disbursements, supplemental6
	421	+	amortization equalization disbursements, administrative law judge7
	422	+	services, and centralized ADP. As provided in subsection (1)(l) of this8
	423	+	section, capital outlay is included within the appropriation for "operating9
	424	+	expenses".10
	425	+	SECTION 9. Safety clause. The general assembly finds,11
	426	+	determines, and declares that this act is necessary for the immediate12
	427	+	preservation of the public peace, health, or safety or for appropriations for13
	428	+	the support and maintenance of the departments of the state and state14
	429	+	institutions. 15
	430	+	1467
	431	+	-15-