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Utah House Bill HB0412

Utah 2023 Regular Session

Utah House Bill HB0412 Compare Versions

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1-2nd Sub. H.B. 412
1+H.B. 412
22 LEGISLATIVE GENERAL COUNSEL
33 6 Approved for Filing: R.H. Rees 6
4-6 02-20-23 3:35 PM 6
4+6 02-07-23 12:41 PM 6
55 H.B. 412
6-2nd Sub. (Gray)
7-Representative Kay J. Christofferson proposes the following substitute bill:
86 1 STATE EMPLOYMENT REVI SIONS
97 2 2023 GENERAL SESSION
108 3 STATE OF UTAH
119 4 Chief Sponsor: Kay J. Christofferson
12-5 Senate Sponsor: Evan J. Vickers
10+5 Senate Sponsor: ____________
1311 6
1412 7LONG TITLE
1513 8General Description:
1614 9 This bill modifies provisions relating to state employment.
1715 10Highlighted Provisions:
1816 11 This bill:
1917 12 <provides for certain career service employees to make a voluntary election to
2018 13convert to career service exempt status;
2119 14 <modifies a provision relating to the responsibilities of the director of the Division of
2220 15Human Resource Management;
2321 16 <modifies definitions applicable to a pay-for-performance management system;
24-17 <allows a state independent entity to choose to participate in a pay-for-performance
25-18plan under a pay-for-performance management system;
26-19 <establishes a schedule AY position as a career service exempt position;
27-20 <provides for employees in a schedule B career service status position who have not
28-21completed probation to become career service exempt employees if the position is
29-22changed to a schedule AY position; and
30-23 <modifies provisions related to employee salary ranges.
31-24Money Appropriated in this Bill:
32-25 None
33-*HB0412S02* 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
22+17 <establishes a schedule AY position as a career service exempt position;
23+18 <provides for employees in a schedule B career service status position who have not
24+19completed probation to become career service exempt employees if the position is
25+20changed to a schedule AY position; and
26+21 <modifies provisions related to employee salary ranges.
27+22Money Appropriated in this Bill:
28+23 None
29+24Other Special Clauses:
30+25 This bill provides a special effective date.
31+26Utah Code Sections Affected:
32+27AMENDS:
33+*HB0412* H.B. 412 02-07-23 12:41 PM
3434 - 2 -
35-26Other Special Clauses:
36-27 This bill provides a special effective date.
37-28Utah Code Sections Affected:
38-29AMENDS:
39-30 63A-17-102, as last amended by Laws of Utah 2022, Chapter 209
40-31 63A-17-106 (Effective 07/01/23), as last amended by Laws of Utah 2022, Chapters
41-32166, 169, 177, and 209
42-33 63A-17-112 (Effective 07/01/23), as enacted by Laws of Utah 2022, Chapter 209
43-34 63A-17-301, as last amended by Laws of Utah 2022, Chapter 209
44-35 63A-17-304, as last amended by Laws of Utah 2022, Chapter 169
45-36 63A-17-307, as last amended by Laws of Utah 2022, Chapters 169 and 209
46-37
47-38Be it enacted by the Legislature of the state of Utah:
48-39 Section 1. Section 63A-17-102 is amended to read:
49-40 63A-17-102. Definitions.
50-41 As used in this chapter:
51-42 (1) "Agency" means any department or unit of Utah state government with authority to
52-43employ personnel.
53-44 (2) "Career service" means positions under schedule B as defined in Section
54-4563A-17-301.
55-46 (3) "Career service employee" means an employee who [has successfully completed]:
56-47 (a) before July 1, 2023, successfully completes a probationary period of service in a
57-48position covered by the career service[.]; and
58-49 [(4) "Career service status" means status granted to employees who successfully
59-50complete probationary periods for competitive career service positions.]
60-51 (b) on or after July 1, 2023, does not voluntarily:
61-52 (i) accept appointment to a position or status exempt from career service; or
62-53 (ii) elect to convert to a status exempt from career service.
63-54 (4) "Career service status" means status granted to an employee who, before July 1,
64-552023, successfully completes the applicable probationary period for a competitive career
65-56service position. 02-20-23 3:35 PM 2nd Sub. (Gray) H.B. 412
35+28 63A-17-102, as last amended by Laws of Utah 2022, Chapter 209
36+29 63A-17-106 (Effective 07/01/23), as last amended by Laws of Utah 2022, Chapters
37+30166, 169, 177, and 209
38+31 63A-17-112 (Effective 07/01/23), as enacted by Laws of Utah 2022, Chapter 209
39+32 63A-17-301, as last amended by Laws of Utah 2022, Chapter 209
40+33 63A-17-304, as last amended by Laws of Utah 2022, Chapter 169
41+34 63A-17-307, as last amended by Laws of Utah 2022, Chapters 169 and 209
42+35
43+36Be it enacted by the Legislature of the state of Utah:
44+37 Section 1. Section 63A-17-102 is amended to read:
45+38 63A-17-102. Definitions.
46+39 As used in this chapter:
47+40 (1) "Agency" means any department or unit of Utah state government with authority to
48+41employ personnel.
49+42 (2) "Career service" means positions under schedule B as defined in Section
50+4363A-17-301.
51+44 (3) "Career service employee" means an employee who [has successfully completed]:
52+45 (a) was hired before July 1, 2023;
53+46 (b) before July 1, 2023, successfully completes a probationary period of service in a
54+47position covered by the career service[.]; and
55+48 (c) has not voluntarily elected to convert to career service exempt status under
56+49Subsection 63A-17-301(7).
57+50 (4) "Career service exempt status" means the status of an employee who is exempt
58+51from the career service provisions of this chapter.
59+52 [(4)] (5) "Career service status" means status granted to [employees] an employee who:
60+53 (a) was hired before July 1, 2023;
61+54 (b) before July 1, 2023, successfully [complete] completes the applicable probationary
62+55[periods] period for a competitive career service [positions.] position; and
63+56 (c) has not voluntarily elected to convert to career service exempt status under
64+57Subsection 63A-17-301(7).
65+58 [(5)] (6) "Classified service" means those positions subject to the classification and 02-07-23 12:41 PM H.B. 412
6666 - 3 -
67-57 (5) "Classified service" means those positions subject to the classification and
68-58compensation provisions of Section 63A-17-307.
69-59 (6) "Controlled substance" means controlled substance as defined in Section 58-37-2.
70-60 (7) (a) "Demotion" means a disciplinary action resulting in a reduction of an
71-61employee's current actual wage.
72-62 (b) "Demotion" does not mean:
73-63 (i) a nondisciplinary movement of an employee to another position without a reduction
74-64in the current actual wage; or
75-65 (ii) a reclassification of an employee's position under the provisions of Subsection
76-6663A-17-307(3) and rules made by the department.
77-67 (8) "Director" means the director of the division.
78-68 (9) "Disability" means a physical or mental disability as defined and protected under
79-69the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
80-70 (10) "Division" means the Division of Human Resource Management, created in
81-71Section 63A-17-105.
82-72 (11) "Employee" means any individual in a paid status covered by the career service or
83-73classified service provisions of this chapter.
84-74 (12) "Examining instruments" means written or other types of proficiency tests.
85-75 (13) "Human resource function" means those duties and responsibilities specified:
86-76 (a) under Section 63A-17-106;
87-77 (b) under rules of the division; and
88-78 (c) under other state or federal statute.
89-79 (14) "Market comparability adjustment" means a salary range adjustment determined
90-80necessary through a market survey of salary data and other relevant information.
91-81 (15) "Probationary employee" means an employee serving a probationary period in a
92-82career service position but who does not have career service status.
93-83 (16) "Probationary period" means that period of time determined by the division that an
94-84employee serves in a career service position as part of the hiring process before career service
95-85status is granted to the employee.
96-86 (17) "Probationary status" means the status of an employee between the employee's
97-87hiring and the granting of career service status. 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
67+59compensation provisions of Section 63A-17-307.
68+60 [(6)] (7) "Controlled substance" means controlled substance as defined in Section
69+6158-37-2.
70+62 [(7)] (8) (a) "Demotion" means a disciplinary action resulting in a reduction of an
71+63employee's current actual wage.
72+64 (b) "Demotion" does not mean:
73+65 (i) a nondisciplinary movement of an employee to another position without a reduction
74+66in the current actual wage; or
75+67 (ii) a reclassification of an employee's position under the provisions of Subsection
76+6863A-17-307(3) and rules made by the department.
77+69 [(8)] (9) "Director" means the director of the division.
78+70 [(9)] (10) "Disability" means a physical or mental disability as defined and protected
79+71under the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
80+72 [(10)] (11) "Division" means the Division of Human Resource Management, created in
81+73Section 63A-17-105.
82+74 [(11)] (12) "Employee" means any individual in a paid status covered by the career
83+75service or classified service provisions of this chapter.
84+76 [(12)] (13) "Examining instruments" means written or other types of proficiency tests.
85+77 [(13)] (14) "Human resource function" means those duties and responsibilities
86+78specified:
87+79 (a) under Section 63A-17-106;
88+80 (b) under rules of the division; and
89+81 (c) under other state or federal statute.
90+82 [(14)] (15) "Market comparability adjustment" means a salary range adjustment
91+83determined necessary through a market survey of salary data and other relevant information.
92+84 (16) "POST-certified employee" means an employee who:
93+85 (a) is employed in a position that requires the employee to have received the training
94+86certification under Title 53, Chapter 6, Part 2, Peace Officer Training and Certification Act;
95+87 (b) received the training certification described in Subsection (16)(a); and
96+88 (c) maintains the training certification described in Subsection (16)(a) throughout the
97+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
9898 - 4 -
99-88 (18) "Structure adjustment" means a division modification of salary ranges.
100-89 (19) "Temporary employee" means [career service exempt employees] an employee
101-90described in Subsection 63A-17-301(1)[(r)](s), with career service exempt status.
102-91 (20) "Total compensation" means salaries and wages, bonuses, paid leave, group
103-92insurance plans, retirement, and all other benefits offered to state employees as inducements to
104-93work for the state.
105-94 Section 2. Section 63A-17-106 (Effective 07/01/23) is amended to read:
106-95 63A-17-106 (Effective 07/01/23). Responsibilities of the director.
107-96 (1) As used in this section, "miscarriage" means the spontaneous or accidental loss of a
108-97fetus, regardless of gestational age or the duration of the pregnancy.
109-98 (2) The director shall have full responsibility and accountability for the administration
110-99of the statewide human resource management system.
111-100 (3) Except as provided in Section 63A-17-201, an agency may not perform human
112-101resource functions without the consent of the director.
113-102 (4) Statewide human resource management rules made by the division in accordance
114-103with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall take precedence if there
115-104is a conflict with agency rules, policies, or practices.
116-105 (5) The division may operate as an internal service fund agency in accordance with
117-106Section 63J-1-410 for the human resource functions the division provides.
118-107 (6) The director shall:
119-108 (a) develop, implement, and administer a statewide program of human resource
120-109management that will:
121-110 (i) aid in the efficient execution of public policy;
122-111 (ii) foster careers in public service for qualified employees; and
123-112 (iii) render assistance to state agencies in performing their missions;
124-113 (b) design and administer the state pay plan;
125-114 (c) design and administer the state classification system and procedures for determining
126-115schedule assignments;
127-116 (d) design and administer the state recruitment and selection system;
128-117 (e) administer agency human resource practices and ensure compliance with federal
129-118law, state law, and state human resource rules, including equal employment opportunity; 02-20-23 3:35 PM 2nd Sub. (Gray) H.B. 412
99+90the training certification described in Subsection (16)(a).
100+91 [(15)] (17) "Probationary employee" means an employee serving a probationary period
101+92in a career service position but who does not have career service status.
102+93 [(16)] (18) "Probationary period" means that period of time determined by the division
103+94that an employee serves in a career service position as part of the hiring process before career
104+95service status is granted to the employee.
105+96 [(17)] (19) "Probationary status" means the status of an employee between the
106+97employee's hiring and the granting of career service status.
107+98 [(18)] (20) "Structure adjustment" means a division modification of salary ranges.
108+99 [(19)] (21) "Temporary employee" means [career service exempt employees] an
109+100employee described in Subsection 63A-17-301(1)(r), with career service exempt status.
110+101 [(20)] (22) "Total compensation" means salaries and wages, bonuses, paid leave, group
111+102insurance plans, retirement, and all other benefits offered to state employees as inducements to
112+103work for the state.
113+104 Section 2. Section 63A-17-106 (Effective 07/01/23) is amended to read:
114+105 63A-17-106 (Effective 07/01/23). Responsibilities of the director.
115+106 (1) As used in this section, "miscarriage" means the spontaneous or accidental loss of a
116+107fetus, regardless of gestational age or the duration of the pregnancy.
117+108 (2) The director shall have full responsibility and accountability for the administration
118+109of the statewide human resource management system.
119+110 (3) Except as provided in Section 63A-17-201, an agency may not perform human
120+111resource functions without the consent of the director.
121+112 (4) Statewide human resource management rules made by the division in accordance
122+113with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall take precedence if there
123+114is a conflict with agency rules, policies, or practices.
124+115 (5) The division may operate as an internal service fund agency in accordance with
125+116Section 63J-1-410 for the human resource functions the division provides.
126+117 (6) The director shall:
127+118 (a) develop, implement, and administer a statewide program of human resource
128+119management that will:
129+120 (i) aid in the efficient execution of public policy; 02-07-23 12:41 PM H.B. 412
130130 - 5 -
131-119 (f) consult with agencies on decisions concerning employee corrective action and
132-120discipline;
133-121 (g) maintain central personnel records;
134-122 (h) perform those functions necessary to implement this chapter unless otherwise
135-123assigned or prohibited;
136-124 (i) perform duties assigned by the governor, executive director, or statute;
137-125 (j) make rules for human resource management, in accordance with Title 63G, Chapter
138-1263, Utah Administrative Rulemaking Act;
139-127 (k) establish and maintain a management information system that will furnish the
140-128governor, the Legislature, and agencies with current information on authorized positions,
141-129payroll, and related matters concerning state human resources;
142-130 (l) conduct research and planning activities to:
143-131 (i) determine and prepare for future state human resource needs;
144-132 (ii) develop methods for improving public human resource management; and
145-133 (iii) propose needed policy changes to the governor;
146-134 (m) study the character, causes, and extent of discrimination in state employment and
147-135develop plans for its elimination through programs consistent with federal and state laws
148-136governing equal employment opportunity in employment;
149-137 (n) when requested by charter schools or counties, municipalities, and other political
150-138subdivisions of the state, provide technical service, training recommendations, or advice on
151-139human resource management at a charge determined by the director;
152-140 (o) establish compensation policies and procedures for early voluntary retirement;
153-141 (p) confer with the heads of other agencies about human resource policies and
154-142procedures;
155-143 (q) submit an annual report to the executive director, the governor, and the Legislature;
156-144and
157-145 (r) assist with the development of a vacant position report required under Subsection
158-14663J-1-201(2)(b)(vi).
159-147 (7) (a) After consultation with the executive director, the governor, and the heads of
160-148other agencies, the director shall establish and coordinate statewide training programs,
161-149including training described in Subsection (7)(e). 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
131+121 (ii) foster careers in public service for qualified employees; and
132+122 (iii) render assistance to state agencies in performing their missions;
133+123 (b) design and administer the state pay plan;
134+124 (c) design and administer the state classification system and procedures for determining
135+125schedule assignments;
136+126 (d) design and administer the state recruitment and selection system;
137+127 (e) administer agency human resource practices and ensure compliance with federal
138+128law, state law, and state human resource rules, including equal employment opportunity;
139+129 (f) consult with agencies on decisions concerning employee corrective action and
140+130discipline;
141+131 (g) maintain central personnel records;
142+132 (h) perform those functions necessary to implement this chapter unless otherwise
143+133assigned or prohibited;
144+134 (i) perform duties assigned by the governor, executive director, or statute;
145+135 (j) make rules for human resource management, in accordance with Title 63G, Chapter
146+1363, Utah Administrative Rulemaking Act;
147+137 (k) establish and maintain a management information system that will furnish the
148+138governor, the Legislature, and agencies with current information on authorized positions,
149+139payroll, and related matters concerning state human resources;
150+140 (l) conduct research and planning activities to:
151+141 (i) determine and prepare for future state human resource needs;
152+142 (ii) develop methods for improving public human resource management; and
153+143 (iii) propose needed policy changes to the governor;
154+144 (m) study the character, causes, and extent of discrimination in state employment and
155+145develop plans for its elimination through programs consistent with federal and state laws
156+146governing equal employment opportunity in employment;
157+147 (n) when requested by charter schools or counties, municipalities, and other political
158+148subdivisions of the state, provide technical service, training recommendations, or advice on
159+149human resource management at a charge determined by the director;
160+150 (o) establish compensation policies and procedures for early voluntary retirement;
161+151 (p) confer with the heads of other agencies about human resource policies and H.B. 412 02-07-23 12:41 PM
162162 - 6 -
163-150 (b) The programs developed under this Subsection (7) shall have application to more
164-151than one agency.
165-152 (c) The division may not establish training programs that train employees to perform
166-153highly specialized or technical jobs and tasks.
167-154 (d) The division shall ensure that any training program described in this Subsection (7)
168-155complies with Title 63G, Chapter 22, State Training and Certification Requirements.
169-156 (e) (i) As used in this Subsection (7)(e):
170-157 (A) "Employee" means the same as that term is defined in Section 63A-17-112.
171-158 (B) "Supervisor" means an individual in a position at an agency, as defined in Section
172-15963A-17-112, that requires the regular supervision and performance evaluation of an employee.
173-160 (ii) A supervisor shall attend the training:
174-161 (A) within six months of being promoted or hired to the position of supervisor; and
175-162 (B) at least annually.
176-163 (iii) [Training attendance] Completion of the training and the effective use of training
177-164information and principles shall be considered in an evaluation of a supervisor's job
178-165performance.
179-166 (iv) The training shall include:
180-167 (A) effective employee management and evaluation methods based on the pay for
181-168performance management system described in Section 63A-17-112;
182-169 (B) instruction to improve supervisor and employee communications;
183-170 (C) best practices for recognizing and retaining high-performing employees;
184-171 (D) best practices for addressing poor-performing employees; and
185-172 (E) any other information and principles identified by the division to improve
186-173management or organizational effectiveness.
187-174 (8) (a) (i) The division may collect fees for training as authorized by this Subsection
188-175(8).
189-176 (ii) Training funded from General Fund appropriations shall be treated as a separate
190-177program within the department budget.
191-178 (iii) All money received from fees under this section will be accounted for by the
192-179department as a separate user driven training program.
193-180 (iv) The user training program includes the costs of developing, procuring, and 02-20-23 3:35 PM 2nd Sub. (Gray) H.B. 412
163+152procedures;
164+153 (q) submit an annual report to the executive director, the governor, and the Legislature;
165+154and
166+155 (r) assist with the development of a vacant position report required under Subsection
167+15663J-1-201(2)(b)(vi).
168+157 (7) (a) After consultation with the executive director, the governor, and the heads of
169+158other agencies, the director shall establish and coordinate statewide training programs,
170+159including training described in Subsection (7)(e).
171+160 (b) The programs developed under this Subsection (7) shall have application to more
172+161than one agency.
173+162 (c) The division may not establish training programs that train employees to perform
174+163highly specialized or technical jobs and tasks.
175+164 (d) The division shall ensure that any training program described in this Subsection (7)
176+165complies with Title 63G, Chapter 22, State Training and Certification Requirements.
177+166 (e) (i) As used in this Subsection (7)(e):
178+167 (A) "Employee" means the same as that term is defined in Section 63A-17-112.
179+168 (B) "Supervisor" means an individual in a position at an agency, as defined in Section
180+16963A-17-112, that requires the regular supervision and performance evaluation of an employee.
181+170 (ii) A supervisor shall attend the training:
182+171 (A) within six months of being promoted or hired to the position of supervisor; and
183+172 (B) at least annually.
184+173 (iii) [Training attendance] Completion of the training and the effective use of training
185+174information and principles shall be considered in an evaluation of a supervisor's job
186+175performance.
187+176 (iv) The training shall include:
188+177 (A) effective employee management and evaluation methods based on the pay for
189+178performance management system described in Section 63A-17-112;
190+179 (B) instruction to improve supervisor and employee communications;
191+180 (C) best practices for recognizing and retaining high-performing employees;
192+181 (D) best practices for addressing poor-performing employees; and
193+182 (E) any other information and principles identified by the division to improve 02-07-23 12:41 PM H.B. 412
194194 - 7 -
195-181presenting training and development programs, and other associated costs for these programs.
196-182 (b) (i) Funds remaining at the end of the fiscal year in the user training program are
197-183nonlapsing.
198-184 (ii) Each year, as part of the appropriations process, the Legislature shall review the
199-185amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
200-186the department to lapse a portion of the funds.
201-187 (9) Rules described in Subsection (6)(j) shall provide for at least three work days of
202-188paid bereavement leave for an employee:
203-189 (a) following the end of the employee's pregnancy by way of miscarriage or stillbirth;
204-190or
205-191 (b) following the end of another individual's pregnancy by way of a miscarriage or
206-192stillbirth, if:
207-193 (i) the employee is the individual's spouse or partner;
208-194 (ii) (A) the employee is the individual's former spouse or partner; and
209-195 (B) the employee would have been a biological parent of a child born as a result of the
210-196pregnancy;
211-197 (iii) the employee provides documentation to show that the individual intended for the
212-198employee to be an adoptive parent, as that term is defined in Section 78B-6-103, of a child born
213-199as a result of the pregnancy; or
214-200 (iv) under a valid gestational agreement in accordance with Title 78B, Chapter 15, Part
215-2018, Gestational Agreement, the employee would have been a parent of a child born as a result of
216-202the pregnancy.
217-203 Section 3. Section 63A-17-112 (Effective 07/01/23) is amended to read:
218-204 63A-17-112 (Effective 07/01/23). Pay for performance management system --
219-205Employees paid for performance.
220-206 (1) As used in this section:
221-207 (a) (i) "Agency" means, except as provided in Subsection (1)(a)(ii), the same as that
222-208term is defined in Section 63A-17-102.
223-209 (ii) "Agency" does not include the State Board of Education, the Office of the State
224-210Treasurer, Office of the State Auditor, Office of the State Attorney General, Utah System of
225-211Higher Education, the Legislature, the judiciary, or[, as defined in Section 63E-1-102,] an 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
195+183management or organizational effectiveness.
196+184 (8) (a) (i) The division may collect fees for training as authorized by this Subsection
197+185(8).
198+186 (ii) Training funded from General Fund appropriations shall be treated as a separate
199+187program within the department budget.
200+188 (iii) All money received from fees under this section will be accounted for by the
201+189department as a separate user driven training program.
202+190 (iv) The user training program includes the costs of developing, procuring, and
203+191presenting training and development programs, and other associated costs for these programs.
204+192 (b) (i) Funds remaining at the end of the fiscal year in the user training program are
205+193nonlapsing.
206+194 (ii) Each year, as part of the appropriations process, the Legislature shall review the
207+195amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
208+196the department to lapse a portion of the funds.
209+197 (9) Rules described in Subsection (6)(j) shall provide for at least three work days of
210+198paid bereavement leave for an employee:
211+199 (a) following the end of the employee's pregnancy by way of miscarriage or stillbirth;
212+200or
213+201 (b) following the end of another individual's pregnancy by way of a miscarriage or
214+202stillbirth, if:
215+203 (i) the employee is the individual's spouse or partner;
216+204 (ii) (A) the employee is the individual's former spouse or partner; and
217+205 (B) the employee would have been a biological parent of a child born as a result of the
218+206pregnancy;
219+207 (iii) the employee provides documentation to show that the individual intended for the
220+208employee to be an adoptive parent, as that term is defined in Section 78B-6-103, of a child born
221+209as a result of the pregnancy; or
222+210 (iv) under a valid gestational agreement in accordance with Title 78B, Chapter 15, Part
223+2118, Gestational Agreement, the employee would have been a parent of a child born as a result of
224+212the pregnancy.
225+213 Section 3. Section 63A-17-112 (Effective 07/01/23) is amended to read: H.B. 412 02-07-23 12:41 PM
226226 - 8 -
227-212independent entity.
228-213 (b) (i) "Employee" means an employee of an agency.
229-214 (ii) "Employee" does not include:
230-215 (A) an individual in a schedule AB position, as described in Section 63A-17-301[,
231-216position.];
232-217 (B) an individual in a position that does not receive retirement benefits under Title 49,
233-218Utah State Retirement and Insurance Benefit Act; or
234-219 (C) an individual hired for a position that has a duration of less than 12 consecutive
235-220months.
236-221 (c) "Independent entity" means the same as that term is defined in Section 63E-1-102.
237-222 [(c)] (d) "Pay for performance" means a plan:
238-223 (i) for incentivizing an employee [for meeting or exceeding] to meet or exceed
239-224production or performance goals[, in which the plan];
240-225 (ii) that is well-defined before work begins[, eligible work groups are defined,]; and
241-226 (iii) under which specific goals and targets for the employee are determined[,] and
242-227measurement procedures are in place[, and specific incentives are provided when goals and
243-228targets are met].
244-229 [(d)] (e) "Pay for performance management system" means the system described in
245-230Subsection [(2)] (3).
246-231 (2) The division shall establish and, in accordance with Title 63G, Chapter 3, Utah
247-232Administrative Rulemaking Act, make rules for the administration of a pay for performance
248-233management system.
249-234 (3) The pay for performance management system shall include:
250-235 (a) guidelines and criteria for an agency to adopt pay for performance policies and
251-236administer pay based on an employee's performance in furtherance of the agency's mission;
252-237 (b) employee performance ratings;
253-238 (c) requirements for written employee performance standards and expectations;
254-239 (d) supervisor verbal and written feedback based on the standards of performance and
255-240behavior outlined in an employee's performance plan; and
256-241 (e) quarterly written evaluation of an employee's performance.
257-242 (4) In consultation with the division, no later than July 1, 2023, each agency shall: 02-20-23 3:35 PM 2nd Sub. (Gray) H.B. 412
227+214 63A-17-112 (Effective 07/01/23). Pay for performance management system --
228+215Employees paid for performance.
229+216 (1) As used in this section:
230+217 (a) (i) "Agency" means, except as provided in Subsection (1)(a)(ii), the same as that
231+218term is defined in Section 63A-17-102.
232+219 (ii) "Agency" does not include the State Board of Education, the Office of the State
233+220Treasurer, Office of the State Auditor, Office of the State Attorney General, Utah System of
234+221Higher Education, the Legislature, the judiciary, or, as defined in Section 63E-1-102, an
235+222independent entity.
236+223 (b) (i) "Employee" means an employee of an agency.
237+224 (ii) "Employee" does not include:
238+225 (A) an individual in a schedule AB position, as described in Section 63A-17-301[,
239+226position.];
240+227 (B) an individual in a position that does not receive retirement benefits under Title 49,
241+228Utah State Retirement and Insurance Benefit Act; or
242+229 (C) an individual hired for a position that has a duration of less than 12 consecutive
243+230months.
244+231 (c) "Pay for performance" means a plan:
245+232 (i) for incentivizing an employee [for meeting or exceeding] to meet or exceed
246+233production or performance goals[, in which the plan];
247+234 (ii) that is well-defined before work begins[, eligible work groups are defined,]; and
248+235 (iii) under which specific goals and targets for the employee are determined[,] and
249+236measurement procedures are in place[, and specific incentives are provided when goals and
250+237targets are met].
251+238 (d) "Pay for performance management system" means the system described in
252+239Subsection [(2)] (3).
253+240 (2) The division shall establish and, in accordance with Title 63G, Chapter 3, Utah
254+241Administrative Rulemaking Act, make rules for the administration of a pay for performance
255+242management system.
256+243 (3) The pay for performance management system shall include:
257+244 (a) guidelines and criteria for an agency to adopt pay for performance policies and 02-07-23 12:41 PM H.B. 412
258258 - 9 -
259-243 (a) adopt pay for performance policies based on the performance management system;
260-244and
261-245 (b) subject to available funds and as necessary, adjust an employee's wage to reflect:
262-246 (i) subject to Subsection (5), for a classified service employee, the salary range of the
263-247position classified plan for the employee's position; and
264-248 (ii) an increase, decrease, or no change in the employee's wage:
265-249 (A) commensurate to an employee's performance as reflected by the employee's
266-250evaluation conducted in accordance with the pay for performance management system; and
267-251 (B) in an amount that is in accordance with the guidelines and criteria established for a
268-252wage change in the pay for performance management system.
269-253 (5) (a) Notwithstanding Subsection (1)(a)(ii), an independent entity may choose to
270-254adopt pay for performance policies in accordance with the performance management system
271-255established by the division under this section.
272-256 (b) An independent entity that chooses to adopt pay for performance policies:
273-257 (i) shall provide written notification to the division of the independent entity's choice;
274-258and
275-259 (ii) is subject to this section and division rules made under this section to the same
276-260extent as an agency described in Subsection (1)(a)(i).
277-261 [(5)] (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
278-262Act, the division shall make rules authorizing a classified service employee to receive a wage
279-263that exceeds the salary range of the classified service employee's position classified plan if
280-264warranted based on the classified employee's performance rating.
281-265 Section 4. Section 63A-17-301 is amended to read:
282-266 63A-17-301. Career service -- Exempt positions -- Schedules for civil service
283-267positions -- Coverage of career service provisions.
284-268 (1) Except as provided in Subsection (3)(d), the following positions are exempt from
285-269the career service provisions of this chapter and are designated under the following schedules:
286-270 (a) schedule AA includes the governor, members of the Legislature, and all other
287-271elected state officers;
288-272 (b) schedule AB includes appointed executives and board or commission executives
289-273enumerated in Section 67-22-2; 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
259+245administer pay based on an employee's performance in furtherance of the agency's mission;
260+246 (b) employee performance ratings;
261+247 (c) requirements for written employee performance standards and expectations;
262+248 (d) supervisor verbal and written feedback based on the standards of performance and
263+249behavior outlined in an employee's performance plan; and
264+250 (e) quarterly written evaluation of an employee's performance.
265+251 (4) In consultation with the division, no later than July 1, 2023, each agency shall:
266+252 (a) adopt pay for performance policies based on the performance management system;
267+253and
268+254 (b) subject to available funds and as necessary, adjust an employee's wage to reflect:
269+255 (i) subject to Subsection (5), for a classified service employee, the salary range of the
270+256position classified plan for the employee's position; and
271+257 (ii) an increase, decrease, or no change in the employee's wage:
272+258 (A) commensurate to an employee's performance as reflected by the employee's
273+259evaluation conducted in accordance with the pay for performance management system; and
274+260 (B) in an amount that is in accordance with the guidelines and criteria established for a
275+261wage change in the pay for performance management system.
276+262 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
277+263division shall make rules authorizing a classified service employee to receive a wage that
278+264exceeds the salary range of the classified service employee's position classified plan if
279+265warranted based on the classified employee's performance rating.
280+266 Section 4. Section 63A-17-301 is amended to read:
281+267 63A-17-301. Career service -- Exempt positions -- Schedules for civil service
282+268positions -- Coverage of career service provisions.
283+269 (1) Except as provided in Subsection (3)(d), the following positions are exempt from
284+270the career service provisions of this chapter and are designated under the following schedules:
285+271 (a) schedule AA includes the governor, members of the Legislature, and all other
286+272elected state officers;
287+273 (b) schedule AB includes appointed executives and board or commission executives
288+274enumerated in Section 67-22-2;
289+275 (c) schedule AC includes all employees and officers in: H.B. 412 02-07-23 12:41 PM
290290 - 10 -
291-274 (c) schedule AC includes all employees and officers in:
292-275 (i) the office and at the residence of the governor;
293-276 (ii) the Public Lands Policy Coordinating Office;
294-277 (iii) the Office of the State Auditor; and
295-278 (iv) the Office of the State Treasurer;
296-279 (d) schedule AD includes employees who:
297-280 (i) are in a confidential relationship to an agency head or commissioner; and
298-281 (ii) report directly to, and are supervised by, a department head, commissioner, or
299-282deputy director of an agency or its equivalent;
300-283 (e) schedule AE includes each employee of the State Board of Education that the State
301-284Board of Education designates as exempt from the career service provisions of this chapter;
302-285 (f) schedule AG includes employees in the Office of the Attorney General who are
303-286under their own career service pay plan under Sections 67-5-7 through 67-5-13;
304-287 (g) schedule AH includes:
305-288 (i) teaching staff of all state institutions; and
306-289 (ii) employees of the Utah Schools for the Deaf and the Blind who are:
307-290 (A) educational interpreters as classified by the division; or
308-291 (B) educators as defined by Section 53E-8-102;
309-292 (h) schedule AN includes employees of the Legislature;
310-293 (i) schedule AO includes employees of the judiciary;
311-294 (j) schedule AP includes all judges in the judiciary;
312-295 (k) schedule AQ includes:
313-296 (i) members of state and local boards and councils appointed by the governor and
314-297governing bodies of agencies;
315-298 (ii) a water commissioner appointed under Section 73-5-1;
316-299 (iii) other local officials serving in an ex officio capacity; and
317-300 (iv) officers, faculty, and other employees of state universities and other state
318-301institutions of higher education;
319-302 (l) schedule AR includes employees in positions that involve responsibility:
320-303 (i) for determining policy;
321-304 (ii) for determining the way in which a policy is carried out; or 02-20-23 3:35 PM 2nd Sub. (Gray) H.B. 412
291+276 (i) the office and at the residence of the governor;
292+277 (ii) the Public Lands Policy Coordinating Office;
293+278 (iii) the Office of the State Auditor; and
294+279 (iv) the Office of the State Treasurer;
295+280 (d) schedule AD includes employees who:
296+281 (i) are in a confidential relationship to an agency head or commissioner; and
297+282 (ii) report directly to, and are supervised by, a department head, commissioner, or
298+283deputy director of an agency or its equivalent;
299+284 (e) schedule AE includes each employee of the State Board of Education that the State
300+285Board of Education designates as exempt from the career service provisions of this chapter;
301+286 (f) schedule AG includes employees in the Office of the Attorney General who are
302+287under their own career service pay plan under Sections 67-5-7 through 67-5-13;
303+288 (g) schedule AH includes:
304+289 (i) teaching staff of all state institutions; and
305+290 (ii) employees of the Utah Schools for the Deaf and the Blind who are:
306+291 (A) educational interpreters as classified by the division; or
307+292 (B) educators as defined by Section 53E-8-102;
308+293 (h) schedule AN includes employees of the Legislature;
309+294 (i) schedule AO includes employees of the judiciary;
310+295 (j) schedule AP includes all judges in the judiciary;
311+296 (k) schedule AQ includes:
312+297 (i) members of state and local boards and councils appointed by the governor and
313+298governing bodies of agencies;
314+299 (ii) a water commissioner appointed under Section 73-5-1;
315+300 (iii) other local officials serving in an ex officio capacity; and
316+301 (iv) officers, faculty, and other employees of state universities and other state
317+302institutions of higher education;
318+303 (l) schedule AR includes employees in positions that involve responsibility:
319+304 (i) for determining policy;
320+305 (ii) for determining the way in which a policy is carried out; or
321+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
322322 - 11 -
323-305 (iii) of a type not appropriate for career service, as determined by the agency head with
324-306the concurrence of the director;
325-307 (m) schedule AS includes any other employee:
326-308 (i) whose appointment is required by statute to be career service exempt;
327-309 (ii) whose agency is not subject to this chapter; or
328-310 (iii) whose agency has authority to make rules regarding the performance,
329-311compensation, and bonuses for its employees;
330-312 (n) schedule AT includes employees of the Division of Technology Services,
331-313designated as executive/professional positions by the director of the Division of Technology
332-314Services with the concurrence of the director of the division;
333-315 (o) schedule AU includes patients and inmates employed in state institutions;
334-316 (p) employees of the Department of Workforce Services, designated as schedule AW:
335-317 (i) who are temporary employees that are federally funded and are required to work
336-318under federally qualified merit principles as certified by the director; or
337-319 (ii) for whom substantially all of their work is repetitive, measurable, or transaction
338-320based, and who voluntarily apply for and are accepted by the Department of Workforce
339-321Services to work in a pay for performance program designed by the Department of Workforce
340-322Services with the concurrence of the director of the division;
341-323 (q) subject to Subsection (6), schedule AX includes employees in positions that:
342-324 (i) require the regular supervision and performance evaluation of one or more other
343-325employees; and
344-326 (ii) are not designated exempt from career service under any other schedule described
345-327in this Subsection (1); [and]
346-328 [(r) for employees in positions that are temporary, seasonal, time limited, funding
347-329limited, or variable hour in nature, under schedule codes and parameters established by the
348-330division by administrative rule.]
349-331 (r) subject to Subsection (7), schedule AY includes an employee, except an employee
350-332in a position subject to Subsection (3)(d), who is in a position that is not designated under any
351-333other schedule described in this Subsection (1) as exempt from career service; and
352-334 (s) an employee in a position that is temporary, seasonal, time-limited, funding-limited,
353-335or with variable hours, under schedule codes and parameters established by the division by 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
323+307the concurrence of the director;
324+308 (m) schedule AS includes any other employee:
325+309 (i) whose appointment is required by statute to be career service exempt;
326+310 (ii) whose agency is not subject to this chapter; or
327+311 (iii) whose agency has authority to make rules regarding the performance,
328+312compensation, and bonuses for its employees;
329+313 (n) schedule AT includes employees of the Division of Technology Services,
330+314designated as executive/professional positions by the director of the Division of Technology
331+315Services with the concurrence of the director of the division;
332+316 (o) schedule AU includes patients and inmates employed in state institutions;
333+317 (p) employees of the Department of Workforce Services, designated as schedule AW:
334+318 (i) who are temporary employees that are federally funded and are required to work
335+319under federally qualified merit principles as certified by the director; or
336+320 (ii) for whom substantially all of their work is repetitive, measurable, or transaction
337+321based, and who voluntarily apply for and are accepted by the Department of Workforce
338+322Services to work in a pay for performance program designed by the Department of Workforce
339+323Services with the concurrence of the director of the division;
340+324 (q) subject to Subsection (6), schedule AX includes employees in positions that:
341+325 (i) require the regular supervision and performance evaluation of one or more other
342+326employees; and
343+327 (ii) are not designated exempt from career service under any other schedule described
344+328in this Subsection (1); [and]
345+329 (r) for employees in positions that are temporary, seasonal, time limited, funding
346+330limited, or variable hour in nature, under schedule codes and parameters established by the
347+331division by administrative rule[.]; and
348+332 (s) schedule AY includes an employee, except a POST-certified employee, of an
349+333agency, as defined in Section 63A-17-112:
350+334 (i) (A) who, before July 1, 2023, was a probationary employee in a schedule B position
351+335and has not, by July 1, 2023, successfully completed the probationary period; and
352+336 (B) whose schedule B position is rescheduled on July 1, 2023 to a schedule AY
353+337position; H.B. 412 02-07-23 12:41 PM
354354 - 12 -
355-336rule.
356-337 (2) The civil service shall consist of two schedules as follows:
357-338 (a) (i) Schedule A is the schedule consisting of positions under Subsection (1).
358-339 (ii) Removal from any appointive position under schedule A, unless otherwise
359-340regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
360-341 (b) Schedule B is the competitive career service schedule, consisting of:
361-342 (i) all positions filled through competitive selection procedures as defined by the
362-343director; or
363-344 (ii) positions filled through a division approved on-the-job examination intended to
364-345appoint a qualified person with a disability, or a veteran in accordance with Title 71, Chapter
365-34610, Veterans Preference.
366-347 (3) (a) The director, after consultation with the heads of concerned executive branch
367-348departments and agencies and with the approval of the governor, shall allocate positions to the
368-349appropriate schedules under this section.
369-350 (b) Agency heads shall make requests and obtain approval from the director before
370-351changing the schedule assignment and tenure rights of any position.
371-352 (c) Unless the director's decision is reversed by the governor, when the director denies
372-353an agency's request, the director's decision is final.
373-354 (d) (i) An agency may file with the division a request to reschedule a position that
374-355would otherwise be scheduled as a schedule A position.
375-356 (ii) The division shall review a request filed under Subsection (3)(d)(i) and approve the
376-357request only if the exception is necessary to conform to a requirement imposed as a condition
377-358precedent to receipt of federal funds or grant of a tax benefit under federal law.
378-359 (4) (a) Compensation for employees of the Legislature shall be established by the
379-360directors of the legislative offices in accordance with Section 36-12-7.
380-361 (b) Compensation for employees of the judiciary shall be established by the state court
381-362administrator in accordance with Section 78A-2-107.
382-363 (c) Compensation for officers, faculty, and other employees of state universities and
383-364institutions of higher education shall be established as provided in Title 53B, Chapter 1,
384-365Governance, Powers, Rights, and Responsibilities, and Title 53B, Chapter 2, Institutions of
385-366Higher Education. 02-20-23 3:35 PM 2nd Sub. (Gray) H.B. 412
355+338 (ii) who is hired for a schedule AY position on or after July 1, 2023; or
356+339 (iii) who is a career service employee who voluntarily elects to convert to career
357+340service exempt status under Subsection (7).
358+341 (2) The civil service shall consist of two schedules as follows:
359+342 (a) (i) Schedule A is the schedule consisting of positions under Subsection (1).
360+343 (ii) Removal from any appointive position under schedule A, unless otherwise
361+344regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
362+345 (b) Schedule B is the competitive career service schedule, consisting of:
363+346 (i) all positions filled through competitive selection procedures as defined by the
364+347director; or
365+348 (ii) positions filled through a division approved on-the-job examination intended to
366+349appoint a qualified person with a disability, or a veteran in accordance with Title 71, Chapter
367+35010, Veterans Preference.
368+351 (3) (a) The director, after consultation with the heads of concerned executive branch
369+352departments and agencies and with the approval of the governor, shall allocate positions to the
370+353appropriate schedules under this section.
371+354 (b) Agency heads shall make requests and obtain approval from the director before
372+355changing the schedule assignment and tenure rights of any position.
373+356 (c) Unless the director's decision is reversed by the governor, when the director denies
374+357an agency's request, the director's decision is final.
375+358 (d) (i) An agency may file with the division a request to reschedule a position that
376+359would otherwise be scheduled as a schedule A position.
377+360 (ii) The division shall review a request filed under Subsection (3)(d)(i) and approve the
378+361request only if the exception is necessary to conform to a requirement imposed as a condition
379+362precedent to receipt of federal funds or grant of a tax benefit under federal law.
380+363 (4) (a) Compensation for employees of the Legislature shall be established by the
381+364directors of the legislative offices in accordance with Section 36-12-7.
382+365 (b) Compensation for employees of the judiciary shall be established by the state court
383+366administrator in accordance with Section 78A-2-107.
384+367 (c) Compensation for officers, faculty, and other employees of state universities and
385+368institutions of higher education shall be established as provided in Title 53B, Chapter 1, 02-07-23 12:41 PM H.B. 412
386386 - 13 -
387-367 (d) Unless otherwise provided by law, compensation for all other schedule A
388-368employees shall be established by their appointing authorities[, within ranges approved by,
389-369and]:
390-370 (i) after consultation with the director[.];
391-371 (ii) using ranges approved by the director; and
392-372 (iii) at or above the minimum salary of the salary range for the employee's position.
393-373 (5) An employee who is in a position designated schedule AC and who holds career
394-374service status on June 30, 2010, shall retain the career service status if the employee:
395-375 (a) remains in the position that the employee is in on June 30, 2010; and
396-376 (b) does not elect to convert to career service exempt status in accordance with a rule
397-377made by the division.
398-378 (6) (a) An employee who is hired for a schedule AX position on or after July 1, 2022,
399-379is exempt from career service status.
400-380 (b) An employee who before July 1, 2022, is a career service employee employed in a
401-381schedule B position that is rescheduled to a schedule AX position on July 1, 2022, [shall
402-382maintain] maintains the employee's career service status for the duration of the employee's
403-383employment in the same position unless the employee voluntarily converts to career service
404-384exempt status before July 1, 2023.
405-385 (c) (i) Subject to Subsection (6)(c)(ii), an employee is exempt from career service
406-386status if:
407-387 (A) before July 1, 2022, the employee was a probationary employee in a schedule B
408-388position and had not completed the probationary period; and
409-389 (B) on July 1, 2022, the schedule B position in which the probationary employee is
410-390employed is rescheduled as a [scheduled] schedule AX position.
411-391 (ii) An employee described in Subsection (6)(c)(i):
412-392 (A) is not a probationary employee on or after July 1, 2022; and
413-393 (B) is exempt from career service status on and after July 1, 2022, unless the employee
414-394changes employment to a schedule B position.
415-395 (d) The division shall disseminate to each employee described in Subsection (6)(b)
416-396information on financial and other incentives for voluntary conversion to career-service exempt
417-397status. 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
387+369Governance, Powers, Rights, and Responsibilities, and Title 53B, Chapter 2, Institutions of
388+370Higher Education.
389+371 (d) Unless otherwise provided by law, compensation for all other schedule A
390+372employees shall be established by their appointing authorities[, within ranges approved by,
391+373and]:
392+374 (i) after consultation with the director[.];
393+375 (ii) using ranges approved by the director; and
394+376 (iii) at or above the minimum salary of the salary range for the employee's position.
395+377 (5) An employee who is in a position designated schedule AC and who holds career
396+378service status on June 30, 2010, shall retain the career service status if the employee:
397+379 (a) remains in the position that the employee is in on June 30, 2010; and
398+380 (b) does not elect to convert to career service exempt status in accordance with a rule
399+381made by the division.
400+382 (6) (a) An employee who is hired for a schedule AX position on or after July 1, 2022,
401+383is exempt from career service status.
402+384 (b) An employee who before July 1, 2022, is a career service employee employed in a
403+385schedule B position that is rescheduled to a schedule AX position on July 1, 2022, shall
404+386maintain the employee's career service status for the duration of the employee's employment in
405+387the same position unless the employee voluntarily converts to career service exempt status
406+388before July 1, 2023.
407+389 (c) (i) Subject to Subsection (6)(c)(ii), an employee is exempt from career service
408+390status if:
409+391 (A) before July 1, 2022, the employee was a probationary employee in a schedule B
410+392position and had not completed the probationary period; and
411+393 (B) on July 1, 2022, the schedule B position in which the probationary employee is
412+394employed is rescheduled as a scheduled AX position.
413+395 (ii) An employee described in Subsection (6)(c)(i):
414+396 (A) is not a probationary employee on or after July 1, 2022; and
415+397 (B) is exempt from career service status on and after July 1, 2022, unless the employee
416+398changes employment to a schedule B position.
417+399 (d) The division shall disseminate to each employee described in Subsection (6)(b) H.B. 412 02-07-23 12:41 PM
418418 - 14 -
419-398 (e) An agency, as defined in Section 63A-17-112, may adopt a policy, created in
420-399consultation with the division, for agency review of recommendations that schedule AX
421-400employees be suspended, demoted, or dismissed from employment.
422-401 (7) (a) An employee hired for a schedule AY position on or after July 1, 2023 is
423-402exempt from career service.
424-403 (b) An employee who, before July 1, 2023, is a career service employee in a schedule B
425-404position that, on July 1, 2023, is rescheduled to a schedule AY position, maintains the
426-405employee's career service status for the duration of the employee's employment in the same
427-406position unless the employee voluntarily elects, before March 30, 2024, to convert to a status
428-407that is exempt from career service .
429-408 (c) Subject to Subsection (7) (d), an employee is exempt from career service if the
430-409employee:
431-410 (i) (A) before July 1, 2023, was a probationary employee in a schedule B position; and
432-411 (B) by July 1, 2023, had not completed the probationary period; and
433-412 (ii) on July 1, 2023, the schedule B position in which the employee is employed is
434-413rescheduled as a schedule AY position.
435-414 (d) An employee described in Subsection (7)(c)(i):
436-415 (i) is not a probationary employee on and after July 1, 2023; and
437-416 (ii) is exempt from career service on and after July 1, 2023, unless the employee
438-417changes employment to a schedule B position.
439-418 (e) The division shall disseminate to each employee described in Subsection (7)(b)
440-419information on financial and other incentives for the employee to voluntarily convert to a status
441-420that is exempt from career service.
442-421 Section 5. Section 63A-17-304 is amended to read:
443-422 63A-17-304. Promotion -- Reclassification -- Market adjustment.
444-423 (1) [(a)] If an employee is promoted or the employee's position is reclassified to a
445-424higher salary range maximum, the agency shall place the employee [within] at or above the
446-425minimum salary of the new salary range [of] for the position.
447-426 [(b) An agency may not set an employee's salary:]
448-427 [(i) higher than the maximum in the new salary range; or]
449-428 [(ii) lower than the minimum in the new salary range of the position.] 02-20-23 3:35 PM 2nd Sub. (Gray) H.B. 412
419+400information on financial and other incentives for voluntary conversion to career-service exempt
420+401status.
421+402 (e) An agency, as defined in Section 63A-17-112, may adopt a policy, created in
422+403consultation with the division, for agency review of recommendations that schedule AX
423+404employees be suspended, demoted, or dismissed from employment.
424+405 (7) (a) As used in this Subsection (7):
425+406 (i) "Agency" means the same as that term is defined in Section 63A-17-112.
426+407 (ii) "Employee" means an individual, except a POST-certified employee, who is
427+408employed by an agency.
428+409 (b) An employee hired for a schedule AY position on or after July 1, 2023 has career
429+410service exempt status.
430+411 (c) An employee who, before July 1, 2023, is a career service employee in a schedule B
431+412position that, on July 1, 2023, is rescheduled to a schedule AY position, maintains the
432+413employee's career service status unless the employee voluntarily elects to convert to career
433+414service exempt status before March 30, 2024.
434+415 (d) Subject to Subsection (7)(e), an employee has career service exempt status if the
435+416employee:
436+417 (i) (A) before July 1, 2023, was a probationary employee in a schedule B position; and
437+418 (B) by July 1, 2023, had not completed the probationary period; and
438+419 (ii) on July 1, 2023, the schedule B position in which the employee is employed is
439+420rescheduled as a schedule AY position.
440+421 (e) An employee described in Subsection (7)(d)(i):
441+422 (i) is not a probationary employee on and after July 1, 2023; and
442+423 (ii) has career service exempt status on and after July 1, 2023, unless the employee
443+424changes employment to a schedule B position.
444+425 (f) The division shall disseminate to each employee described in Subsection (7)(c)
445+426information on financial and other incentives for the employee's voluntary election to convert
446+427to career service exempt status.
447+428 Section 5. Section 63A-17-304 is amended to read:
448+429 63A-17-304. Promotion -- Reclassification -- Market adjustment.
449+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
450450 - 15 -
451-429 (2) An agency shall adjust the salary range for an employee whose salary range is
452-430approved by the Legislature for a market comparability adjustment consistent with Subsection
453-43163A-17-307(5)(b)(i):
454-432 (a) at the beginning of the next fiscal year; and
455-433 (b) consistent with appropriations made by the Legislature.
456-434 (3) Division-initiated revisions in the state classification system that result in
457-435consolidation or reduction of class titles or broadening of pay ranges:
458-436 (a) may not be regarded as a reclassification of the position or promotion of the
459-437employee; and
460-438 (b) are exempt from the provisions of Subsection (1).
461-439 Section 6. Section 63A-17-307 is amended to read:
462-440 63A-17-307. State pay plans -- Applicability of section -- Exemptions -- Duties of
463-441director.
464-442 (1) (a) This section, and the rules made by the division under this section, apply to each
465-443career and noncareer employee not specifically exempted under Subsection (2).
466-444 (b) If not exempted under Subsection (2), an employee is considered to be in classified
467-445service.
468-446 (2) The following employees are exempt from this section:
469-447 (a) members of the Legislature and legislative employees;
470-448 (b) members of the judiciary and judicial employees;
471-449 (c) elected members of the executive branch and employees designated as schedule AC
472-450as provided under Subsection 63A-17-301(1)(c);
473-451 (d) employees of the State Board of Education;
474-452 (e) officers, faculty, and other employees of state institutions of higher education;
475-453 (f) employees in a position that is specified by statute to be exempt from this
476-454Subsection (2);
477-455 (g) employees in the Office of the Attorney General;
478-456 (h) department heads and other persons appointed by the governor under statute;
479-457 (i) schedule AS employees as provided under Subsection 63A-17-301(1)(m);
480-458 (j) department deputy directors, division directors, and other employees designated as
481-459schedule AD as provided under Subsection 63A-17-301(1)(d); 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
451+431higher salary range maximum, the agency shall place the employee [within] at or above the
452+432minimum salary of the new salary range [of] for the position.
453+433 [(b) An agency may not set an employee's salary:]
454+434 [(i) higher than the maximum in the new salary range; or]
455+435 [(ii) lower than the minimum in the new salary range of the position.]
456+436 (2) An agency shall adjust the salary range for an employee whose salary range is
457+437approved by the Legislature for a market comparability adjustment consistent with Subsection
458+43863A-17-307(5)(b)(i):
459+439 (a) at the beginning of the next fiscal year; and
460+440 (b) consistent with appropriations made by the Legislature.
461+441 (3) Division-initiated revisions in the state classification system that result in
462+442consolidation or reduction of class titles or broadening of pay ranges:
463+443 (a) may not be regarded as a reclassification of the position or promotion of the
464+444employee; and
465+445 (b) are exempt from the provisions of Subsection (1).
466+446 Section 6. Section 63A-17-307 is amended to read:
467+447 63A-17-307. State pay plans -- Applicability of section -- Exemptions -- Duties of
468+448director.
469+449 (1) (a) This section, and the rules made by the division under this section, apply to each
470+450career and noncareer employee not specifically exempted under Subsection (2).
471+451 (b) If not exempted under Subsection (2), an employee is considered to be in classified
472+452service.
473+453 (2) The following employees are exempt from this section:
474+454 (a) members of the Legislature and legislative employees;
475+455 (b) members of the judiciary and judicial employees;
476+456 (c) elected members of the executive branch and employees designated as schedule AC
477+457as provided under Subsection 63A-17-301(1)(c);
478+458 (d) employees of the State Board of Education;
479+459 (e) officers, faculty, and other employees of state institutions of higher education;
480+460 (f) employees in a position that is specified by statute to be exempt from this
481+461Subsection (2); H.B. 412 02-07-23 12:41 PM
482482 - 16 -
483-460 (k) employees that determine and execute policy designated as schedule AR as
484-461provided under Subsection 63A-17-301(1)(l);
485-462 (l) teaching staff, educational interpreters, and educators designated as schedule AH as
486-463provided under Subsection 63A-17-301(1)(g);
487-464 (m) temporary employees described in Subsection 63A-17-301(1)(r);
488-465 (n) patients and inmates designated as schedule AU as provided under Subsection
489-46663A-17-301(1)(o) who are employed by state institutions; and
490-467 (o) members of state and local boards and councils and other employees designated as
491-468schedule AQ as provided under Subsection 63A-17-301(1)(k).
492-469 (3) (a) The director shall prepare, maintain, and revise a position classification plan for
493-470each employee position not exempted under Subsection (2) to provide equal pay for equal
494-471work.
495-472 (b) Classification of positions shall be based upon similarity of duties performed and
496-473responsibilities assumed, so that the same job requirements and the same salary range, subject
497-474to Section 63A-17-112, may be applied equitably to each position in the same class.
498-475 (c) The director shall allocate or reallocate the position of each employee in classified
499-476service to one of the classes in the classification plan.
500-477 (d) (i) The division shall conduct periodic studies and interviews to provide that the
501-478classification plan remains reasonably current and reflects the duties and responsibilities
502-479assigned to and performed by employees.
503-480 (ii) The director shall determine the need for studies and interviews after considering
504-481factors such as changes in duties and responsibilities of positions or agency reorganizations.
505-482 (4) (a) With the approval of the executive director and the governor, the director shall
506-483develop and adopt pay plans for each position in classified service.
507-484 (b) The director shall design each pay plan to achieve, to the degree that funds permit,
508-485comparability of state salary ranges to the market using data obtained from private enterprise
509-486and other public employment for similar work.
510-487 (c) The director shall adhere to the following in developing each pay plan:
511-488 (i) each pay plan shall consist of sufficient salary ranges to:
512-489 (A) permit adequate salary differential among the various classes of positions in the
513-490classification plan; and 02-20-23 3:35 PM 2nd Sub. (Gray) H.B. 412
483+462 (g) employees in the Office of the Attorney General;
484+463 (h) department heads and other persons appointed by the governor under statute;
485+464 (i) schedule AS employees as provided under Subsection 63A-17-301(1)(m);
486+465 (j) department deputy directors, division directors, and other employees designated as
487+466schedule AD as provided under Subsection 63A-17-301(1)(d);
488+467 (k) employees that determine and execute policy designated as schedule AR as
489+468provided under Subsection 63A-17-301(1)(l);
490+469 (l) teaching staff, educational interpreters, and educators designated as schedule AH as
491+470provided under Subsection 63A-17-301(1)(g);
492+471 (m) temporary employees described in Subsection 63A-17-301(1)(r);
493+472 (n) patients and inmates designated as schedule AU as provided under Subsection
494+47363A-17-301(1)(o) who are employed by state institutions; and
495+474 (o) members of state and local boards and councils and other employees designated as
496+475schedule AQ as provided under Subsection 63A-17-301(1)(k).
497+476 (3) (a) The director shall prepare, maintain, and revise a position classification plan for
498+477each employee position not exempted under Subsection (2) to provide equal pay for equal
499+478work.
500+479 (b) Classification of positions shall be based upon similarity of duties performed and
501+480responsibilities assumed, so that the same job requirements and the same salary range, subject
502+481to Section 63A-17-112, may be applied equitably to each position in the same class.
503+482 (c) The director shall allocate or reallocate the position of each employee in classified
504+483service to one of the classes in the classification plan.
505+484 (d) (i) The division shall conduct periodic studies and interviews to provide that the
506+485classification plan remains reasonably current and reflects the duties and responsibilities
507+486assigned to and performed by employees.
508+487 (ii) The director shall determine the need for studies and interviews after considering
509+488factors such as changes in duties and responsibilities of positions or agency reorganizations.
510+489 (4) (a) With the approval of the executive director and the governor, the director shall
511+490develop and adopt pay plans for each position in classified service.
512+491 (b) The director shall design each pay plan to achieve, to the degree that funds permit,
513+492comparability of state salary ranges to the market using data obtained from private enterprise 02-07-23 12:41 PM H.B. 412
514514 - 17 -
515-491 (B) reflect the normal growth and productivity potential of employees in that class.
516-492 (ii) The director shall issue rules for the administration of pay plans.
517-493 (d) The establishing of a salary range is a nondelegable activity and is not appealable
518-494under the grievance procedures of Part 6, Grievance Provisions, Title 67, Chapter 19a,
519-495Grievance Procedures, or otherwise.
520-496 (e) The director shall make rules, accordance with Title 63G, Chapter 3, Utah
521-497Administrative Rulemaking Act, providing for:
522-498 (i) agency approved salary adjustments [within approved salary ranges], including an
523-499administrative salary adjustment; and
524-500 (ii) structure adjustments that modify salary ranges, including a cost of living
525-501adjustment or market comparability adjustment.
526-502 (5) (a) On or before October 31 of each year, the director shall submit an annual
527-503compensation plan to the executive director and the governor for consideration in the executive
528-504budget.
529-505 (b) The plan described in Subsection (5)(a) may include recommendations, including:
530-506 (i) salary increases that generally affect employees, including a general increase or
531-507merit increase;
532-508 (ii) salary increases that address compensation issues unique to an agency or
533-509occupation;
534-510 (iii) structure adjustments, including a cost of living adjustment or market
535-511comparability adjustment; or
536-512 (iv) changes to employee benefits.
537-513 (c) (i) (A) Subject to Subsection (5)(c)(i)(B) or (C), the director shall incorporate the
538-514results of a salary survey of a reasonable cross section of comparable positions in private and
539-515public employment in the state into the annual compensation plan.
540-516 (B) The salary survey for a law enforcement officer, as defined in Section 53-13-103, a
541-517correctional officer, as defined in Section 53-13-104, or a dispatcher, as defined in Section
542-51853-6-102, shall at minimum include the three largest political subdivisions in the state that
543-519employ, respectively, comparable positions.
544-520 (C) The salary survey for an examiner or supervisor described in Title 7, Chapter 1,
545-521Part 2, Department of Financial Institutions, shall at minimum include the Federal Deposit 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
515+493and other public employment for similar work.
516+494 (c) The director shall adhere to the following in developing each pay plan:
517+495 (i) each pay plan shall consist of sufficient salary ranges to:
518+496 (A) permit adequate salary differential among the various classes of positions in the
519+497classification plan; and
520+498 (B) reflect the normal growth and productivity potential of employees in that class.
521+499 (ii) The director shall issue rules for the administration of pay plans.
522+500 (d) The establishing of a salary range is a nondelegable activity and is not appealable
523+501under the grievance procedures of Part 6, Grievance Provisions, Title 67, Chapter 19a,
524+502Grievance Procedures, or otherwise.
525+503 (e) The director shall make rules, accordance with Title 63G, Chapter 3, Utah
526+504Administrative Rulemaking Act, providing for:
527+505 (i) agency approved salary adjustments [within approved salary ranges], including an
528+506administrative salary adjustment; and
529+507 (ii) structure adjustments that modify salary ranges, including a cost of living
530+508adjustment or market comparability adjustment.
531+509 (5) (a) On or before October 31 of each year, the director shall submit an annual
532+510compensation plan to the executive director and the governor for consideration in the executive
533+511budget.
534+512 (b) The plan described in Subsection (5)(a) may include recommendations, including:
535+513 (i) salary increases that generally affect employees, including a general increase or
536+514merit increase;
537+515 (ii) salary increases that address compensation issues unique to an agency or
538+516occupation;
539+517 (iii) structure adjustments, including a cost of living adjustment or market
540+518comparability adjustment; or
541+519 (iv) changes to employee benefits.
542+520 (c) (i) (A) Subject to Subsection (5)(c)(i)(B) or (C), the director shall incorporate the
543+521results of a salary survey of a reasonable cross section of comparable positions in private and
544+522public employment in the state into the annual compensation plan.
545+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
546546 - 18 -
547-522Insurance Corporation, Federal Reserve, and National Credit Union Administration.
548-523 (ii) The director may cooperate with or participate in any survey conducted by other
549-524public and private employers.
550-525 (iii) The director shall obtain information for the purpose of constructing the survey
551-526from the Division of Workforce Information and Payment Services and shall include employer
552-527name, number of persons employed by the employer, employer contact information and job
553-528titles, county code, and salary if available.
554-529 (iv) The division shall acquire and protect the needed records in compliance with the
555-530provisions of Section 35A-4-312.
556-531 (d) The director may incorporate any other relevant information in the plan described
557-532in Subsection (5)(a), including information on staff turnover, recruitment data, or external
558-533market trends.
559-534 (e) The director shall:
560-535 (i) establish criteria to assure the adequacy and accuracy of data used to make
561-536recommendations described in this Subsection (5); and
562-537 (ii) when preparing recommendations use accepted methodologies and techniques
563-538similar to and consistent with those used in the private sector.
564-539 (f) (i) Upon request and subject to Subsection (5)(f)(ii), the division shall make
565-540available foundational information used by the division or director in the drafting of a plan
566-541described in Subsection (5)(a), including:
567-542 (A) demographic and labor market information;
568-543 (B) information on employee turnover;
569-544 (C) salary information;
570-545 (D) information on recruitment; and
571-546 (E) geographic data.
572-547 (ii) The division may not provide under Subsection (5)(f)(i) information or other data
573-548that is proprietary or otherwise protected under the terms of a contract or by law.
574-549 (g) The governor shall:
575-550 (i) consider salary and structure adjustments recommended under Subsection (5)(b) in
576-551preparing the executive budget and shall recommend the method of distributing the
577-552adjustments; 02-20-23 3:35 PM 2nd Sub. (Gray) H.B. 412
547+524correctional officer, as defined in Section 53-13-104, or a dispatcher, as defined in Section
548+52553-6-102, shall at minimum include the three largest political subdivisions in the state that
549+526employ, respectively, comparable positions.
550+527 (C) The salary survey for an examiner or supervisor described in Title 7, Chapter 1,
551+528Part 2, Department of Financial Institutions, shall at minimum include the Federal Deposit
552+529Insurance Corporation, Federal Reserve, and National Credit Union Administration.
553+530 (ii) The director may cooperate with or participate in any survey conducted by other
554+531public and private employers.
555+532 (iii) The director shall obtain information for the purpose of constructing the survey
556+533from the Division of Workforce Information and Payment Services and shall include employer
557+534name, number of persons employed by the employer, employer contact information and job
558+535titles, county code, and salary if available.
559+536 (iv) The division shall acquire and protect the needed records in compliance with the
560+537provisions of Section 35A-4-312.
561+538 (d) The director may incorporate any other relevant information in the plan described
562+539in Subsection (5)(a), including information on staff turnover, recruitment data, or external
563+540market trends.
564+541 (e) The director shall:
565+542 (i) establish criteria to assure the adequacy and accuracy of data used to make
566+543recommendations described in this Subsection (5); and
567+544 (ii) when preparing recommendations use accepted methodologies and techniques
568+545similar to and consistent with those used in the private sector.
569+546 (f) (i) Upon request and subject to Subsection (5)(f)(ii), the division shall make
570+547available foundational information used by the division or director in the drafting of a plan
571+548described in Subsection (5)(a), including:
572+549 (A) demographic and labor market information;
573+550 (B) information on employee turnover;
574+551 (C) salary information;
575+552 (D) information on recruitment; and
576+553 (E) geographic data.
577+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
578578 - 19 -
579-553 (ii) submit compensation recommendations to the Legislature; and
580-554 (iii) support the recommendation with schedules indicating the cost to individual
581-555departments and the source of funds.
582-556 (h) If funding is approved by the Legislature in a general appropriations act, the
583-557adjustments take effect on the July 1 following the enactment unless otherwise indicated.
584-558 (6) (a) The director shall make rules, in accordance with Title 63G, Chapter 3, Utah
585-559Administrative Rulemaking Act, for the granting of incentive awards, including awards for cost
586-560saving actions, awards for commendable actions by an employee, or a market-based award to
587-561attract or retain employees.
588-562 (b) An agency may not grant a market-based award unless the award is previously
589-563approved by the division.
590-564 (c) In accordance with Subsection (6)(b), an agency requesting the division's approval
591-565of a market-based award shall submit a request and documentation, subject to Subsection
592-566(6)(d), to the division.
593-567 (d) In the documentation required in Subsection (6)(c), the requesting agency shall
594-568identify for the division:
595-569 (i) any benefit the market-based award would provide for the agency, including:
596-570 (A) budgetary advantages; or
597-571 (B) recruitment advantages;
598-572 (ii) a mission critical need to attract or retain unique or hard to find skills in the market;
599-573or
600-574 (iii) any other advantage the agency would gain through the utilization of a
601-575market-based award.
602-576 (7) (a) The director shall regularly evaluate the total compensation program of state
603-577employees in the classified service.
604-578 (b) The division shall determine if employee benefits are comparable to those offered
605-579by other private and public employers using information from:
606-580 (i) a study conducted by a third-party consultant; or
607-581 (ii) the most recent edition of a nationally recognized benefits survey.
608-582 Section 7. Effective date.
609-583 (1) Except as provided in Subsection (2), this bill takes effect May 3, 2023. 2nd Sub. (Gray) H.B. 412 02-20-23 3:35 PM
579+555that is proprietary or otherwise protected under the terms of a contract or by law.
580+556 (g) The governor shall:
581+557 (i) consider salary and structure adjustments recommended under Subsection (5)(b) in
582+558preparing the executive budget and shall recommend the method of distributing the
583+559adjustments;
584+560 (ii) submit compensation recommendations to the Legislature; and
585+561 (iii) support the recommendation with schedules indicating the cost to individual
586+562departments and the source of funds.
587+563 (h) If funding is approved by the Legislature in a general appropriations act, the
588+564adjustments take effect on the July 1 following the enactment unless otherwise indicated.
589+565 (6) (a) The director shall make rules, in accordance with Title 63G, Chapter 3, Utah
590+566Administrative Rulemaking Act, for the granting of incentive awards, including awards for cost
591+567saving actions, awards for commendable actions by an employee, or a market-based award to
592+568attract or retain employees.
593+569 (b) An agency may not grant a market-based award unless the award is previously
594+570approved by the division.
595+571 (c) In accordance with Subsection (6)(b), an agency requesting the division's approval
596+572of a market-based award shall submit a request and documentation, subject to Subsection
597+573(6)(d), to the division.
598+574 (d) In the documentation required in Subsection (6)(c), the requesting agency shall
599+575identify for the division:
600+576 (i) any benefit the market-based award would provide for the agency, including:
601+577 (A) budgetary advantages; or
602+578 (B) recruitment advantages;
603+579 (ii) a mission critical need to attract or retain unique or hard to find skills in the market;
604+580or
605+581 (iii) any other advantage the agency would gain through the utilization of a
606+582market-based award.
607+583 (7) (a) The director shall regularly evaluate the total compensation program of state
608+584employees in the classified service.
609+585 (b) The division shall determine if employee benefits are comparable to those offered H.B. 412 02-07-23 12:41 PM
610610 - 20 -
611-584 (2) The amendments to Sections 63A-17-106 and 63A-17-112 take effect July 1, 2023.
611+586by other private and public employers using information from:
612+587 (i) a study conducted by a third-party consultant; or
613+588 (ii) the most recent edition of a nationally recognized benefits survey.
614+589 Section 7. Effective date.
615+590 (1) Except as provided in Subsection (2), this bill takes effect May 3, 2023.
616+591 (2) The amendments to Sections 63A-17-106 and 63A-17-112 take effect July 1, 2023.