H.B. 412
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: R.H. Rees 6
6 02-07-23 12:41 PM 6
H.B. 412
1 STATE EMPLOYMENT REVI SIONS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Kay J. Christofferson
5 Senate Sponsor: ____________
6
7LONG TITLE
8General Description:
9 This bill modifies provisions relating to state employment.
10Highlighted Provisions:
11 This bill:
12 <provides for certain career service employees to make a voluntary election to
13convert to career service exempt status;
14 <modifies a provision relating to the responsibilities of the director of the Division of
15Human Resource Management;
16 <modifies definitions applicable to a pay-for-performance management system;
17 <establishes a schedule AY position as a career service exempt position;
18 <provides for employees in a schedule B career service status position who have not
19completed probation to become career service exempt employees if the position is
20changed to a schedule AY position; and
21 <modifies provisions related to employee salary ranges.
22Money Appropriated in this Bill:
23 None
24Other Special Clauses:
25 This bill provides a special effective date.
26Utah Code Sections Affected:
27AMENDS:
*HB0412* H.B. 412 02-07-23 12:41 PM
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28 63A-17-102, as last amended by Laws of Utah 2022, Chapter 209
29 63A-17-106 (Effective 07/01/23), as last amended by Laws of Utah 2022, Chapters
30166, 169, 177, and 209
31 63A-17-112 (Effective 07/01/23), as enacted by Laws of Utah 2022, Chapter 209
32 63A-17-301, as last amended by Laws of Utah 2022, Chapter 209
33 63A-17-304, as last amended by Laws of Utah 2022, Chapter 169
34 63A-17-307, as last amended by Laws of Utah 2022, Chapters 169 and 209
35
36Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 63A-17-102 is amended to read:
38 63A-17-102. Definitions.
39 As used in this chapter:
40 (1) "Agency" means any department or unit of Utah state government with authority to
41employ personnel.
42 (2) "Career service" means positions under schedule B as defined in Section
4363A-17-301.
44 (3) "Career service employee" means an employee who [has successfully completed]:
45 (a) was hired before July 1, 2023;
46 (b) before July 1, 2023, successfully completes a probationary period of service in a
47position covered by the career service[.]; and
48 (c) has not voluntarily elected to convert to career service exempt status under
49Subsection 63A-17-301(7).
50 (4) "Career service exempt status" means the status of an employee who is exempt
51from the career service provisions of this chapter.
52 [(4)] (5) "Career service status" means status granted to [employees] an employee who:
53 (a) was hired before July 1, 2023;
54 (b) before July 1, 2023, successfully [complete] completes the applicable probationary
55[periods] period for a competitive career service [positions.] position; and
56 (c) has not voluntarily elected to convert to career service exempt status under
57Subsection 63A-17-301(7).
58 [(5)] (6) "Classified service" means those positions subject to the classification and 02-07-23 12:41 PM H.B. 412
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59compensation provisions of Section 63A-17-307.
60 [(6)] (7) "Controlled substance" means controlled substance as defined in Section
6158-37-2.
62 [(7)] (8) (a) "Demotion" means a disciplinary action resulting in a reduction of an
63employee's current actual wage.
64 (b) "Demotion" does not mean:
65 (i) a nondisciplinary movement of an employee to another position without a reduction
66in the current actual wage; or
67 (ii) a reclassification of an employee's position under the provisions of Subsection
6863A-17-307(3) and rules made by the department.
69 [(8)] (9) "Director" means the director of the division.
70 [(9)] (10) "Disability" means a physical or mental disability as defined and protected
71under the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
72 [(10)] (11) "Division" means the Division of Human Resource Management, created in
73Section 63A-17-105.
74 [(11)] (12) "Employee" means any individual in a paid status covered by the career
75service or classified service provisions of this chapter.
76 [(12)] (13) "Examining instruments" means written or other types of proficiency tests.
77 [(13)] (14) "Human resource function" means those duties and responsibilities
78specified:
79 (a) under Section 63A-17-106;
80 (b) under rules of the division; and
81 (c) under other state or federal statute.
82 [(14)] (15) "Market comparability adjustment" means a salary range adjustment
83determined necessary through a market survey of salary data and other relevant information.
84 (16) "POST-certified employee" means an employee who:
85 (a) is employed in a position that requires the employee to have received the training
86certification under Title 53, Chapter 6, Part 2, Peace Officer Training and Certification Act;
87 (b) received the training certification described in Subsection (16)(a); and
88 (c) maintains the training certification described in Subsection (16)(a) throughout the
89time of the employee's employment in a position that requires the employee to have received H.B. 412 02-07-23 12:41 PM
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90the training certification described in Subsection (16)(a).
91 [(15)] (17) "Probationary employee" means an employee serving a probationary period
92in a career service position but who does not have career service status.
93 [(16)] (18) "Probationary period" means that period of time determined by the division
94that an employee serves in a career service position as part of the hiring process before career
95service status is granted to the employee.
96 [(17)] (19) "Probationary status" means the status of an employee between the
97employee's hiring and the granting of career service status.
98 [(18)] (20) "Structure adjustment" means a division modification of salary ranges.
99 [(19)] (21) "Temporary employee" means [career service exempt employees] an
100employee described in Subsection 63A-17-301(1)(r), with career service exempt status.
101 [(20)] (22) "Total compensation" means salaries and wages, bonuses, paid leave, group
102insurance plans, retirement, and all other benefits offered to state employees as inducements to
103work for the state.
104 Section 2. Section 63A-17-106 (Effective 07/01/23) is amended to read:
105 63A-17-106 (Effective 07/01/23). Responsibilities of the director.
106 (1) As used in this section, "miscarriage" means the spontaneous or accidental loss of a
107fetus, regardless of gestational age or the duration of the pregnancy.
108 (2) The director shall have full responsibility and accountability for the administration
109of the statewide human resource management system.
110 (3) Except as provided in Section 63A-17-201, an agency may not perform human
111resource functions without the consent of the director.
112 (4) Statewide human resource management rules made by the division in accordance
113with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall take precedence if there
114is a conflict with agency rules, policies, or practices.
115 (5) The division may operate as an internal service fund agency in accordance with
116Section 63J-1-410 for the human resource functions the division provides.
117 (6) The director shall:
118 (a) develop, implement, and administer a statewide program of human resource
119management that will:
120 (i) aid in the efficient execution of public policy; 02-07-23 12:41 PM H.B. 412
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121 (ii) foster careers in public service for qualified employees; and
122 (iii) render assistance to state agencies in performing their missions;
123 (b) design and administer the state pay plan;
124 (c) design and administer the state classification system and procedures for determining
125schedule assignments;
126 (d) design and administer the state recruitment and selection system;
127 (e) administer agency human resource practices and ensure compliance with federal
128law, state law, and state human resource rules, including equal employment opportunity;
129 (f) consult with agencies on decisions concerning employee corrective action and
130discipline;
131 (g) maintain central personnel records;
132 (h) perform those functions necessary to implement this chapter unless otherwise
133assigned or prohibited;
134 (i) perform duties assigned by the governor, executive director, or statute;
135 (j) make rules for human resource management, in accordance with Title 63G, Chapter
1363, Utah Administrative Rulemaking Act;
137 (k) establish and maintain a management information system that will furnish the
138governor, the Legislature, and agencies with current information on authorized positions,
139payroll, and related matters concerning state human resources;
140 (l) conduct research and planning activities to:
141 (i) determine and prepare for future state human resource needs;
142 (ii) develop methods for improving public human resource management; and
143 (iii) propose needed policy changes to the governor;
144 (m) study the character, causes, and extent of discrimination in state employment and
145develop plans for its elimination through programs consistent with federal and state laws
146governing equal employment opportunity in employment;
147 (n) when requested by charter schools or counties, municipalities, and other political
148subdivisions of the state, provide technical service, training recommendations, or advice on
149human resource management at a charge determined by the director;
150 (o) establish compensation policies and procedures for early voluntary retirement;
151 (p) confer with the heads of other agencies about human resource policies and H.B. 412 02-07-23 12:41 PM
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152procedures;
153 (q) submit an annual report to the executive director, the governor, and the Legislature;
154and
155 (r) assist with the development of a vacant position report required under Subsection
15663J-1-201(2)(b)(vi).
157 (7) (a) After consultation with the executive director, the governor, and the heads of
158other agencies, the director shall establish and coordinate statewide training programs,
159including training described in Subsection (7)(e).
160 (b) The programs developed under this Subsection (7) shall have application to more
161than one agency.
162 (c) The division may not establish training programs that train employees to perform
163highly specialized or technical jobs and tasks.
164 (d) The division shall ensure that any training program described in this Subsection (7)
165complies with Title 63G, Chapter 22, State Training and Certification Requirements.
166 (e) (i) As used in this Subsection (7)(e):
167 (A) "Employee" means the same as that term is defined in Section 63A-17-112.
168 (B) "Supervisor" means an individual in a position at an agency, as defined in Section
16963A-17-112, that requires the regular supervision and performance evaluation of an employee.
170 (ii) A supervisor shall attend the training:
171 (A) within six months of being promoted or hired to the position of supervisor; and
172 (B) at least annually.
173 (iii) [Training attendance] Completion of the training and the effective use of training
174information and principles shall be considered in an evaluation of a supervisor's job
175performance.
176 (iv) The training shall include:
177 (A) effective employee management and evaluation methods based on the pay for
178performance management system described in Section 63A-17-112;
179 (B) instruction to improve supervisor and employee communications;
180 (C) best practices for recognizing and retaining high-performing employees;
181 (D) best practices for addressing poor-performing employees; and
182 (E) any other information and principles identified by the division to improve 02-07-23 12:41 PM H.B. 412
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183management or organizational effectiveness.
184 (8) (a) (i) The division may collect fees for training as authorized by this Subsection
185(8).
186 (ii) Training funded from General Fund appropriations shall be treated as a separate
187program within the department budget.
188 (iii) All money received from fees under this section will be accounted for by the
189department as a separate user driven training program.
190 (iv) The user training program includes the costs of developing, procuring, and
191presenting training and development programs, and other associated costs for these programs.
192 (b) (i) Funds remaining at the end of the fiscal year in the user training program are
193nonlapsing.
194 (ii) Each year, as part of the appropriations process, the Legislature shall review the
195amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
196the department to lapse a portion of the funds.
197 (9) Rules described in Subsection (6)(j) shall provide for at least three work days of
198paid bereavement leave for an employee:
199 (a) following the end of the employee's pregnancy by way of miscarriage or stillbirth;
200or
201 (b) following the end of another individual's pregnancy by way of a miscarriage or
202stillbirth, if:
203 (i) the employee is the individual's spouse or partner;
204 (ii) (A) the employee is the individual's former spouse or partner; and
205 (B) the employee would have been a biological parent of a child born as a result of the
206pregnancy;
207 (iii) the employee provides documentation to show that the individual intended for the
208employee to be an adoptive parent, as that term is defined in Section 78B-6-103, of a child born
209as a result of the pregnancy; or
210 (iv) under a valid gestational agreement in accordance with Title 78B, Chapter 15, Part
2118, Gestational Agreement, the employee would have been a parent of a child born as a result of
212the pregnancy.
213 Section 3. Section 63A-17-112 (Effective 07/01/23) is amended to read: H.B. 412 02-07-23 12:41 PM
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214 63A-17-112 (Effective 07/01/23). Pay for performance management system --
215Employees paid for performance.
216 (1) As used in this section:
217 (a) (i) "Agency" means, except as provided in Subsection (1)(a)(ii), the same as that
218term is defined in Section 63A-17-102.
219 (ii) "Agency" does not include the State Board of Education, the Office of the State
220Treasurer, Office of the State Auditor, Office of the State Attorney General, Utah System of
221Higher Education, the Legislature, the judiciary, or, as defined in Section 63E-1-102, an
222independent entity.
223 (b) (i) "Employee" means an employee of an agency.
224 (ii) "Employee" does not include:
225 (A) an individual in a schedule AB position, as described in Section 63A-17-301[,
226position.];
227 (B) an individual in a position that does not receive retirement benefits under Title 49,
228Utah State Retirement and Insurance Benefit Act; or
229 (C) an individual hired for a position that has a duration of less than 12 consecutive
230months.
231 (c) "Pay for performance" means a plan:
232 (i) for incentivizing an employee [for meeting or exceeding] to meet or exceed
233production or performance goals[, in which the plan];
234 (ii) that is well-defined before work begins[, eligible work groups are defined,]; and
235 (iii) under which specific goals and targets for the employee are determined[,] and
236measurement procedures are in place[, and specific incentives are provided when goals and
237targets are met].
238 (d) "Pay for performance management system" means the system described in
239Subsection [(2)] (3).
240 (2) The division shall establish and, in accordance with Title 63G, Chapter 3, Utah
241Administrative Rulemaking Act, make rules for the administration of a pay for performance
242management system.
243 (3) The pay for performance management system shall include:
244 (a) guidelines and criteria for an agency to adopt pay for performance policies and 02-07-23 12:41 PM H.B. 412
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245administer pay based on an employee's performance in furtherance of the agency's mission;
246 (b) employee performance ratings;
247 (c) requirements for written employee performance standards and expectations;
248 (d) supervisor verbal and written feedback based on the standards of performance and
249behavior outlined in an employee's performance plan; and
250 (e) quarterly written evaluation of an employee's performance.
251 (4) In consultation with the division, no later than July 1, 2023, each agency shall:
252 (a) adopt pay for performance policies based on the performance management system;
253and
254 (b) subject to available funds and as necessary, adjust an employee's wage to reflect:
255 (i) subject to Subsection (5), for a classified service employee, the salary range of the
256position classified plan for the employee's position; and
257 (ii) an increase, decrease, or no change in the employee's wage:
258 (A) commensurate to an employee's performance as reflected by the employee's
259evaluation conducted in accordance with the pay for performance management system; and
260 (B) in an amount that is in accordance with the guidelines and criteria established for a
261wage change in the pay for performance management system.
262 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
263division shall make rules authorizing a classified service employee to receive a wage that
264exceeds the salary range of the classified service employee's position classified plan if
265warranted based on the classified employee's performance rating.
266 Section 4. Section 63A-17-301 is amended to read:
267 63A-17-301. Career service -- Exempt positions -- Schedules for civil service
268positions -- Coverage of career service provisions.
269 (1) Except as provided in Subsection (3)(d), the following positions are exempt from
270the career service provisions of this chapter and are designated under the following schedules:
271 (a) schedule AA includes the governor, members of the Legislature, and all other
272elected state officers;
273 (b) schedule AB includes appointed executives and board or commission executives
274enumerated in Section 67-22-2;
275 (c) schedule AC includes all employees and officers in: H.B. 412 02-07-23 12:41 PM
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276 (i) the office and at the residence of the governor;
277 (ii) the Public Lands Policy Coordinating Office;
278 (iii) the Office of the State Auditor; and
279 (iv) the Office of the State Treasurer;
280 (d) schedule AD includes employees who:
281 (i) are in a confidential relationship to an agency head or commissioner; and
282 (ii) report directly to, and are supervised by, a department head, commissioner, or
283deputy director of an agency or its equivalent;
284 (e) schedule AE includes each employee of the State Board of Education that the State
285Board of Education designates as exempt from the career service provisions of this chapter;
286 (f) schedule AG includes employees in the Office of the Attorney General who are
287under their own career service pay plan under Sections 67-5-7 through 67-5-13;
288 (g) schedule AH includes:
289 (i) teaching staff of all state institutions; and
290 (ii) employees of the Utah Schools for the Deaf and the Blind who are:
291 (A) educational interpreters as classified by the division; or
292 (B) educators as defined by Section 53E-8-102;
293 (h) schedule AN includes employees of the Legislature;
294 (i) schedule AO includes employees of the judiciary;
295 (j) schedule AP includes all judges in the judiciary;
296 (k) schedule AQ includes:
297 (i) members of state and local boards and councils appointed by the governor and
298governing bodies of agencies;
299 (ii) a water commissioner appointed under Section 73-5-1;
300 (iii) other local officials serving in an ex officio capacity; and
301 (iv) officers, faculty, and other employees of state universities and other state
302institutions of higher education;
303 (l) schedule AR includes employees in positions that involve responsibility:
304 (i) for determining policy;
305 (ii) for determining the way in which a policy is carried out; or
306 (iii) of a type not appropriate for career service, as determined by the agency head with 02-07-23 12:41 PM H.B. 412
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307the concurrence of the director;
308 (m) schedule AS includes any other employee:
309 (i) whose appointment is required by statute to be career service exempt;
310 (ii) whose agency is not subject to this chapter; or
311 (iii) whose agency has authority to make rules regarding the performance,
312compensation, and bonuses for its employees;
313 (n) schedule AT includes employees of the Division of Technology Services,
314designated as executive/professional positions by the director of the Division of Technology
315Services with the concurrence of the director of the division;
316 (o) schedule AU includes patients and inmates employed in state institutions;
317 (p) employees of the Department of Workforce Services, designated as schedule AW:
318 (i) who are temporary employees that are federally funded and are required to work
319under federally qualified merit principles as certified by the director; or
320 (ii) for whom substantially all of their work is repetitive, measurable, or transaction
321based, and who voluntarily apply for and are accepted by the Department of Workforce
322Services to work in a pay for performance program designed by the Department of Workforce
323Services with the concurrence of the director of the division;
324 (q) subject to Subsection (6), schedule AX includes employees in positions that:
325 (i) require the regular supervision and performance evaluation of one or more other
326employees; and
327 (ii) are not designated exempt from career service under any other schedule described
328in this Subsection (1); [and]
329 (r) for employees in positions that are temporary, seasonal, time limited, funding
330limited, or variable hour in nature, under schedule codes and parameters established by the
331division by administrative rule[.]; and
332 (s) schedule AY includes an employee, except a POST-certified employee, of an
333agency, as defined in Section 63A-17-112:
334 (i) (A) who, before July 1, 2023, was a probationary employee in a schedule B position
335and has not, by July 1, 2023, successfully completed the probationary period; and
336 (B) whose schedule B position is rescheduled on July 1, 2023 to a schedule AY
337position; H.B. 412 02-07-23 12:41 PM
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338 (ii) who is hired for a schedule AY position on or after July 1, 2023; or
339 (iii) who is a career service employee who voluntarily elects to convert to career
340service exempt status under Subsection (7).
341 (2) The civil service shall consist of two schedules as follows:
342 (a) (i) Schedule A is the schedule consisting of positions under Subsection (1).
343 (ii) Removal from any appointive position under schedule A, unless otherwise
344regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
345 (b) Schedule B is the competitive career service schedule, consisting of:
346 (i) all positions filled through competitive selection procedures as defined by the
347director; or
348 (ii) positions filled through a division approved on-the-job examination intended to
349appoint a qualified person with a disability, or a veteran in accordance with Title 71, Chapter
35010, Veterans Preference.
351 (3) (a) The director, after consultation with the heads of concerned executive branch
352departments and agencies and with the approval of the governor, shall allocate positions to the
353appropriate schedules under this section.
354 (b) Agency heads shall make requests and obtain approval from the director before
355changing the schedule assignment and tenure rights of any position.
356 (c) Unless the director's decision is reversed by the governor, when the director denies
357an agency's request, the director's decision is final.
358 (d) (i) An agency may file with the division a request to reschedule a position that
359would otherwise be scheduled as a schedule A position.
360 (ii) The division shall review a request filed under Subsection (3)(d)(i) and approve the
361request only if the exception is necessary to conform to a requirement imposed as a condition
362precedent to receipt of federal funds or grant of a tax benefit under federal law.
363 (4) (a) Compensation for employees of the Legislature shall be established by the
364directors of the legislative offices in accordance with Section 36-12-7.
365 (b) Compensation for employees of the judiciary shall be established by the state court
366administrator in accordance with Section 78A-2-107.
367 (c) Compensation for officers, faculty, and other employees of state universities and
368institutions of higher education shall be established as provided in Title 53B, Chapter 1, 02-07-23 12:41 PM H.B. 412
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369Governance, Powers, Rights, and Responsibilities, and Title 53B, Chapter 2, Institutions of
370Higher Education.
371 (d) Unless otherwise provided by law, compensation for all other schedule A
372employees shall be established by their appointing authorities[, within ranges approved by,
373and]:
374 (i) after consultation with the director[.];
375 (ii) using ranges approved by the director; and
376 (iii) at or above the minimum salary of the salary range for the employee's position.
377 (5) An employee who is in a position designated schedule AC and who holds career
378service status on June 30, 2010, shall retain the career service status if the employee:
379 (a) remains in the position that the employee is in on June 30, 2010; and
380 (b) does not elect to convert to career service exempt status in accordance with a rule
381made by the division.
382 (6) (a) An employee who is hired for a schedule AX position on or after July 1, 2022,
383is exempt from career service status.
384 (b) An employee who before July 1, 2022, is a career service employee employed in a
385schedule B position that is rescheduled to a schedule AX position on July 1, 2022, shall
386maintain the employee's career service status for the duration of the employee's employment in
387the same position unless the employee voluntarily converts to career service exempt status
388before July 1, 2023.
389 (c) (i) Subject to Subsection (6)(c)(ii), an employee is exempt from career service
390status if:
391 (A) before July 1, 2022, the employee was a probationary employee in a schedule B
392position and had not completed the probationary period; and
393 (B) on July 1, 2022, the schedule B position in which the probationary employee is
394employed is rescheduled as a scheduled AX position.
395 (ii) An employee described in Subsection (6)(c)(i):
396 (A) is not a probationary employee on or after July 1, 2022; and
397 (B) is exempt from career service status on and after July 1, 2022, unless the employee
398changes employment to a schedule B position.
399 (d) The division shall disseminate to each employee described in Subsection (6)(b) H.B. 412 02-07-23 12:41 PM
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400information on financial and other incentives for voluntary conversion to career-service exempt
401status.
402 (e) An agency, as defined in Section 63A-17-112, may adopt a policy, created in
403consultation with the division, for agency review of recommendations that schedule AX
404employees be suspended, demoted, or dismissed from employment.
405 (7) (a) As used in this Subsection (7):
406 (i) "Agency" means the same as that term is defined in Section 63A-17-112.
407 (ii) "Employee" means an individual, except a POST-certified employee, who is
408employed by an agency.
409 (b) An employee hired for a schedule AY position on or after July 1, 2023 has career
410service exempt status.
411 (c) An employee who, before July 1, 2023, is a career service employee in a schedule B
412position that, on July 1, 2023, is rescheduled to a schedule AY position, maintains the
413employee's career service status unless the employee voluntarily elects to convert to career
414service exempt status before March 30, 2024.
415 (d) Subject to Subsection (7)(e), an employee has career service exempt status if the
416employee:
417 (i) (A) before July 1, 2023, was a probationary employee in a schedule B position; and
418 (B) by July 1, 2023, had not completed the probationary period; and
419 (ii) on July 1, 2023, the schedule B position in which the employee is employed is
420rescheduled as a schedule AY position.
421 (e) An employee described in Subsection (7)(d)(i):
422 (i) is not a probationary employee on and after July 1, 2023; and
423 (ii) has career service exempt status on and after July 1, 2023, unless the employee
424changes employment to a schedule B position.
425 (f) The division shall disseminate to each employee described in Subsection (7)(c)
426information on financial and other incentives for the employee's voluntary election to convert
427to career service exempt status.
428 Section 5. Section 63A-17-304 is amended to read:
429 63A-17-304. Promotion -- Reclassification -- Market adjustment.
430 (1) [(a)] If an employee is promoted or the employee's position is reclassified to a 02-07-23 12:41 PM H.B. 412
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431higher salary range maximum, the agency shall place the employee [within] at or above the
432minimum salary of the new salary range [of] for the position.
433 [(b) An agency may not set an employee's salary:]
434 [(i) higher than the maximum in the new salary range; or]
435 [(ii) lower than the minimum in the new salary range of the position.]
436 (2) An agency shall adjust the salary range for an employee whose salary range is
437approved by the Legislature for a market comparability adjustment consistent with Subsection
43863A-17-307(5)(b)(i):
439 (a) at the beginning of the next fiscal year; and
440 (b) consistent with appropriations made by the Legislature.
441 (3) Division-initiated revisions in the state classification system that result in
442consolidation or reduction of class titles or broadening of pay ranges:
443 (a) may not be regarded as a reclassification of the position or promotion of the
444employee; and
445 (b) are exempt from the provisions of Subsection (1).
446 Section 6. Section 63A-17-307 is amended to read:
447 63A-17-307. State pay plans -- Applicability of section -- Exemptions -- Duties of
448director.
449 (1) (a) This section, and the rules made by the division under this section, apply to each
450career and noncareer employee not specifically exempted under Subsection (2).
451 (b) If not exempted under Subsection (2), an employee is considered to be in classified
452service.
453 (2) The following employees are exempt from this section:
454 (a) members of the Legislature and legislative employees;
455 (b) members of the judiciary and judicial employees;
456 (c) elected members of the executive branch and employees designated as schedule AC
457as provided under Subsection 63A-17-301(1)(c);
458 (d) employees of the State Board of Education;
459 (e) officers, faculty, and other employees of state institutions of higher education;
460 (f) employees in a position that is specified by statute to be exempt from this
461Subsection (2); H.B. 412 02-07-23 12:41 PM
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462 (g) employees in the Office of the Attorney General;
463 (h) department heads and other persons appointed by the governor under statute;
464 (i) schedule AS employees as provided under Subsection 63A-17-301(1)(m);
465 (j) department deputy directors, division directors, and other employees designated as
466schedule AD as provided under Subsection 63A-17-301(1)(d);
467 (k) employees that determine and execute policy designated as schedule AR as
468provided under Subsection 63A-17-301(1)(l);
469 (l) teaching staff, educational interpreters, and educators designated as schedule AH as
470provided under Subsection 63A-17-301(1)(g);
471 (m) temporary employees described in Subsection 63A-17-301(1)(r);
472 (n) patients and inmates designated as schedule AU as provided under Subsection
47363A-17-301(1)(o) who are employed by state institutions; and
474 (o) members of state and local boards and councils and other employees designated as
475schedule AQ as provided under Subsection 63A-17-301(1)(k).
476 (3) (a) The director shall prepare, maintain, and revise a position classification plan for
477each employee position not exempted under Subsection (2) to provide equal pay for equal
478work.
479 (b) Classification of positions shall be based upon similarity of duties performed and
480responsibilities assumed, so that the same job requirements and the same salary range, subject
481to Section 63A-17-112, may be applied equitably to each position in the same class.
482 (c) The director shall allocate or reallocate the position of each employee in classified
483service to one of the classes in the classification plan.
484 (d) (i) The division shall conduct periodic studies and interviews to provide that the
485classification plan remains reasonably current and reflects the duties and responsibilities
486assigned to and performed by employees.
487 (ii) The director shall determine the need for studies and interviews after considering
488factors such as changes in duties and responsibilities of positions or agency reorganizations.
489 (4) (a) With the approval of the executive director and the governor, the director shall
490develop and adopt pay plans for each position in classified service.
491 (b) The director shall design each pay plan to achieve, to the degree that funds permit,
492comparability of state salary ranges to the market using data obtained from private enterprise 02-07-23 12:41 PM H.B. 412
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493and other public employment for similar work.
494 (c) The director shall adhere to the following in developing each pay plan:
495 (i) each pay plan shall consist of sufficient salary ranges to:
496 (A) permit adequate salary differential among the various classes of positions in the
497classification plan; and
498 (B) reflect the normal growth and productivity potential of employees in that class.
499 (ii) The director shall issue rules for the administration of pay plans.
500 (d) The establishing of a salary range is a nondelegable activity and is not appealable
501under the grievance procedures of Part 6, Grievance Provisions, Title 67, Chapter 19a,
502Grievance Procedures, or otherwise.
503 (e) The director shall make rules, accordance with Title 63G, Chapter 3, Utah
504Administrative Rulemaking Act, providing for:
505 (i) agency approved salary adjustments [within approved salary ranges], including an
506administrative salary adjustment; and
507 (ii) structure adjustments that modify salary ranges, including a cost of living
508adjustment or market comparability adjustment.
509 (5) (a) On or before October 31 of each year, the director shall submit an annual
510compensation plan to the executive director and the governor for consideration in the executive
511budget.
512 (b) The plan described in Subsection (5)(a) may include recommendations, including:
513 (i) salary increases that generally affect employees, including a general increase or
514merit increase;
515 (ii) salary increases that address compensation issues unique to an agency or
516occupation;
517 (iii) structure adjustments, including a cost of living adjustment or market
518comparability adjustment; or
519 (iv) changes to employee benefits.
520 (c) (i) (A) Subject to Subsection (5)(c)(i)(B) or (C), the director shall incorporate the
521results of a salary survey of a reasonable cross section of comparable positions in private and
522public employment in the state into the annual compensation plan.
523 (B) The salary survey for a law enforcement officer, as defined in Section 53-13-103, a H.B. 412 02-07-23 12:41 PM
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524correctional officer, as defined in Section 53-13-104, or a dispatcher, as defined in Section
52553-6-102, shall at minimum include the three largest political subdivisions in the state that
526employ, respectively, comparable positions.
527 (C) The salary survey for an examiner or supervisor described in Title 7, Chapter 1,
528Part 2, Department of Financial Institutions, shall at minimum include the Federal Deposit
529Insurance Corporation, Federal Reserve, and National Credit Union Administration.
530 (ii) The director may cooperate with or participate in any survey conducted by other
531public and private employers.
532 (iii) The director shall obtain information for the purpose of constructing the survey
533from the Division of Workforce Information and Payment Services and shall include employer
534name, number of persons employed by the employer, employer contact information and job
535titles, county code, and salary if available.
536 (iv) The division shall acquire and protect the needed records in compliance with the
537provisions of Section 35A-4-312.
538 (d) The director may incorporate any other relevant information in the plan described
539in Subsection (5)(a), including information on staff turnover, recruitment data, or external
540market trends.
541 (e) The director shall:
542 (i) establish criteria to assure the adequacy and accuracy of data used to make
543recommendations described in this Subsection (5); and
544 (ii) when preparing recommendations use accepted methodologies and techniques
545similar to and consistent with those used in the private sector.
546 (f) (i) Upon request and subject to Subsection (5)(f)(ii), the division shall make
547available foundational information used by the division or director in the drafting of a plan
548described in Subsection (5)(a), including:
549 (A) demographic and labor market information;
550 (B) information on employee turnover;
551 (C) salary information;
552 (D) information on recruitment; and
553 (E) geographic data.
554 (ii) The division may not provide under Subsection (5)(f)(i) information or other data 02-07-23 12:41 PM H.B. 412
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555that is proprietary or otherwise protected under the terms of a contract or by law.
556 (g) The governor shall:
557 (i) consider salary and structure adjustments recommended under Subsection (5)(b) in
558preparing the executive budget and shall recommend the method of distributing the
559adjustments;
560 (ii) submit compensation recommendations to the Legislature; and
561 (iii) support the recommendation with schedules indicating the cost to individual
562departments and the source of funds.
563 (h) If funding is approved by the Legislature in a general appropriations act, the
564adjustments take effect on the July 1 following the enactment unless otherwise indicated.
565 (6) (a) The director shall make rules, in accordance with Title 63G, Chapter 3, Utah
566Administrative Rulemaking Act, for the granting of incentive awards, including awards for cost
567saving actions, awards for commendable actions by an employee, or a market-based award to
568attract or retain employees.
569 (b) An agency may not grant a market-based award unless the award is previously
570approved by the division.
571 (c) In accordance with Subsection (6)(b), an agency requesting the division's approval
572of a market-based award shall submit a request and documentation, subject to Subsection
573(6)(d), to the division.
574 (d) In the documentation required in Subsection (6)(c), the requesting agency shall
575identify for the division:
576 (i) any benefit the market-based award would provide for the agency, including:
577 (A) budgetary advantages; or
578 (B) recruitment advantages;
579 (ii) a mission critical need to attract or retain unique or hard to find skills in the market;
580or
581 (iii) any other advantage the agency would gain through the utilization of a
582market-based award.
583 (7) (a) The director shall regularly evaluate the total compensation program of state
584employees in the classified service.
585 (b) The division shall determine if employee benefits are comparable to those offered H.B. 412 02-07-23 12:41 PM
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586by other private and public employers using information from:
587 (i) a study conducted by a third-party consultant; or
588 (ii) the most recent edition of a nationally recognized benefits survey.
589 Section 7. Effective date.
590 (1) Except as provided in Subsection (2), this bill takes effect May 3, 2023.
591 (2) The amendments to Sections 63A-17-106 and 63A-17-112 take effect July 1, 2023.