UT
Utah House Bill HB0404

Utah 2025 Regular Session

Utah House Bill HB0404 Compare Versions

OldNewDifferences
1-Enrolled Copy H.B. 404
1+02-18 11:41 1st Sub. (Buff) H.B. 404
2+Stephanie Gricius proposes the following substitute bill:
23 1
34 Government Employment Amendments
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Stephanie Gricius
7-Senate Sponsor: Ronald M. Winterton
8+Senate Sponsor:
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
1516 This bill amends provisions related to government employment.
1617 6
1718 Highlighted Provisions:
1819 7
1920 This bill:
2021 8
2122 ▸ allows an independent entity to opt into participating in the pay for performance
2223 9
2324 management system;
2425 10
2526 ▸ amends which employees of eligible agencies may participate in the pay for performance
2627 11
2728 management system;
2829 12
2930 ▸ repeals Section 63A-17-111; and
3031 13
3132 ▸ makes technical and conforming changes.
3233 14
3334 Money Appropriated in this Bill:
3435 15
3536 None
3637 16
3738 Other Special Clauses:
3839 17
3940 None
4041 18
4142 Utah Code Sections Affected:
4243 19
4344 AMENDS:
4445 20
4546 63A-17-106, as last amended by Laws of Utah 2024, Chapter 397
4647 21
4748 63A-17-112, as last amended by Laws of Utah 2024, Chapter 397
4849 22
4950 63A-17-301, as last amended by Laws of Utah 2024, Chapter 397
5051 23
5152 REPEALS:
5253 24
5354 63A-17-111, as enacted by Laws of Utah 2021, Chapter 192
5455 25
5556
5657 26
5758 Be it enacted by the Legislature of the state of Utah:
5859 27
59-Section 1. Section 63A-17-106 is amended to read: H.B. 404 Enrolled Copy
60+Section 1. Section 63A-17-106 is amended to read:
6061 28
6162 63A-17-106 . Responsibilities of the director.
63+1st Sub. H.B. 404 1st Sub. (Buff) H.B. 404 02-18 11:41
6264 29
6365 (1) As used in this section, "miscarriage" means the spontaneous or accidental loss of a
6466 30
6567 fetus, regardless of gestational age or the duration of the pregnancy.
6668 31
6769 (2) The director shall have full responsibility and accountability for the administration of
6870 32
6971 the statewide human resource management system.
7072 33
7173 (3) Except as provided in Section 63A-17-201, an agency may not perform human resource
7274 34
7375 functions without the consent of the director.
7476 35
7577 (4) Statewide human resource management rules made by the division in accordance with
7678 36
7779 Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall take precedence if
7880 37
7981 there is a conflict with agency rules, policies, or practices.
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8183 (5) The division may operate as an internal service fund agency in accordance with Section
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8385 63J-1-410 for the human resource functions the division provides.
8486 40
8587 (6) The director shall:
8688 41
8789 (a) develop, implement, and administer a statewide program of human resource
8890 42
8991 management that will:
9092 43
9193 (i) aid in the efficient execution of public policy;
9294 44
9395 (ii) foster careers in public service for qualified employees; and
9496 45
9597 (iii) render assistance to state agencies in performing their missions;
9698 46
9799 (b) design and administer the state pay plan;
98100 47
99101 (c) design and administer the state classification system and procedures for determining
100102 48
101103 schedule assignments;
102104 49
103105 (d) design and administer the state recruitment and selection system;
104106 50
105107 (e) administer agency human resource practices and ensure compliance with federal law,
106108 51
107109 state law, and state human resource rules, including equal employment opportunity;
108110 52
109111 (f) consult with agencies on decisions concerning employee corrective action and
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111113 discipline;
112114 54
113115 (g) maintain central personnel records;
114116 55
115117 (h) perform those functions necessary to implement this chapter unless otherwise
116118 56
117119 assigned or prohibited;
118120 57
119121 (i) perform duties assigned by the governor, executive director, or statute;
120122 58
121123 (j) make rules for human resource management, in accordance with Title 63G, Chapter
122124 59
123125 3, Utah Administrative Rulemaking Act;
124126 60
125127 (k) establish and maintain a management information system that will furnish the
126128 61
127129 governor, the Legislature, and agencies with current information on authorized
128-- 2 - Enrolled Copy H.B. 404
129130 62
130131 positions, payroll, and related matters concerning state human resources;
132+- 2 - 02-18 11:41 1st Sub. (Buff) H.B. 404
131133 63
132134 (l) conduct research and planning activities to:
133135 64
134136 (i) determine and prepare for future state human resource needs;
135137 65
136138 (ii) develop methods for improving public human resource management; and
137139 66
138140 (iii) propose needed policy changes to the governor;
139141 67
140142 (m) study the character, causes, and extent of discrimination in state employment and
141143 68
142144 develop plans for its elimination through programs consistent with federal and state
143145 69
144146 laws governing equal employment opportunity in employment;
145147 70
146148 (n) establish compensation policies and procedures for early voluntary retirement;
147149 71
148150 (o) confer with the heads of other agencies about human resource policies and
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150152 procedures;
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152154 (p) submit an annual report to the executive director, the governor, and the Legislature;
153155 74
154156 and
155157 75
156158 (q) assist with the development of a vacant position report required under Subsection
157159 76
158160 63J-1-201(2)(b)(vi).
159161 77
160162 (7)(a) After consultation with the executive director, the governor, and the heads of
161163 78
162164 other agencies, the director shall establish and coordinate statewide training
163165 79
164166 programs, including training described in Subsection (7)(e).
165167 80
166168 (b) The programs developed under this Subsection (7) shall have application to more
167169 81
168170 than one agency.
169171 82
170172 (c) The division may not establish training programs that train employees to perform
171173 83
172174 highly specialized or technical jobs and tasks.
173175 84
174176 (d) The division shall ensure that any training program described in this Subsection (7)
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176178 complies with Title 63G, Chapter 22, State Training and Certification Requirements.
177179 86
178180 (e)(i) As used in this Subsection (7)(e):
179181 87
180182 (A) "Employee" [ ]means [the same as that term is defined in Section 63A-17-112]
181183 88
182184 an employee included in an agency's pay for performance policy adopted in
183185 89
184186 accordance with Section 63A-17-112.
185187 90
186188 (B) "Supervisor" means an individual in a position at an agency, as defined in
187189 91
188190 Section 63A-17-112, that requires the regular supervision and performance
189191 92
190192 evaluation of an employee.
191193 93
192194 (ii) A supervisor shall attend the training:
193195 94
194196 (A) within six months of being promoted or hired to the position of supervisor; and
195197 95
196198 (B) at least annually.
197-- 3 - H.B. 404 Enrolled Copy
198199 96
199200 (iii) A supervisor's completion of training and effective use of training information
201+- 3 - 1st Sub. (Buff) H.B. 404 02-18 11:41
200202 97
201203 and principles shall be considered in an evaluation of the supervisor's job
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203205 performance.
204206 99
205207 (iv) The training shall include:
206208 100
207209 (A) effective employee management and evaluation methods based on the pay for
208210 101
209211 performance management system described in Section 63A-17-112;
210212 102
211213 (B) instruction to improve supervisor and employee communications;
212214 103
213215 (C) best practices for recognizing and retaining high-performing employees;
214216 104
215217 (D) best practices for addressing poor-performing employees; and
216218 105
217219 (E) any other information and principles identified by the division to improve
218220 106
219221 management or organizational effectiveness.
220222 107
221-(8)(a)(i) The division may collect fees for training as authorized by this Subsection (8).
223+(8)(a)(i) The division may collect fees for training as authorized by this Subsection
222224 108
225+(8).
226+109
223227 (ii) Training funded from General Fund appropriations shall be treated as a separate
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225229 program within the department budget.
226-110
230+111
227231 (iii) All money received from fees under this section will be accounted for by the
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229233 department as a separate user driven training program.
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234+113
231235 (iv) The user training program includes the costs of developing, procuring, and
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233237 presenting training and development programs, and other associated costs for
234-114
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235239 these programs.
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237241 (b)(i) Funds remaining at the end of the fiscal year in the user training program are
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239243 nonlapsing.
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241245 (ii) Each year, as part of the appropriations process, the Legislature shall review the
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243247 amount of nonlapsing funds remaining at the end of the fiscal year and may, by
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245249 statute, require the department to lapse a portion of the funds.
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247251 (9) Rules described in Subsection (6)(j) shall provide for at least three work days of paid
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249253 bereavement leave for an employee:
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254+123
251255 (a) following the end of the employee's pregnancy by way of miscarriage or stillbirth; or
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256+124
253257 (b) following the end of another individual's pregnancy by way of a miscarriage or
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255259 stillbirth, if:
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257261 (i) the employee is the individual's spouse or partner;
258-126
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259263 (ii)(A) the employee is the individual's former spouse or partner; and
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261265 (B) the employee would have been a biological parent of a child born as a result of
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263267 the pregnancy;
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265269 (iii) the employee provides documentation to show that the individual intended for
266-- 4 - Enrolled Copy H.B. 404
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270+- 4 - 02-18 11:41 1st Sub. (Buff) H.B. 404
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268272 the employee to be an adoptive parent, as that term is defined in Section
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270274 78B-6-103, of a child born as a result of the pregnancy; or
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272276 (iv) under a valid gestational agreement in accordance with Title 78B, Chapter 15,
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274278 Part 8, Gestational Agreement, the employee would have been a parent of a child
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276280 born as a result of the pregnancy.
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278282 Section 2. Section 63A-17-112 is amended to read:
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280284 63A-17-112 . Pay for performance management system -- Employees paid for
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282286 performance.
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284288 (1) As used in this section:
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286290 (a)(i) "Agency" means, except as provided in Subsection [(1)(a)(ii)] (1)(a)(iii), the
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288292 same as that term is defined in Section 63A-17-102.
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290294 (ii) "Agency" includes an independent entity that has decided to participate in the pay
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292296 for performance management system in accordance with Subsection (6)(a).
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294298 [(ii)] (iii) "Agency" does not include:
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296300 (A) [ ]the State Board of Education[,] ;
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298302 (B) [ ]the Office of the State Treasurer[,] ;
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300304 (C) [ ]Office of the State Auditor[,] ;
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302306 (D) [ ]Office of the State Attorney General[,] ;
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304308 (E) [ ]Utah System of Higher Education[,] ;
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306310 (F) [ ]the Legislature[, ] ;
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308312 (G) the judiciary[,] ; or[,]
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310314 (H) [ as defined in Section 63E-1-102, ]an independent entity that chooses not to
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312316 participate in the pay for performance management system under this section.
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314318 (b)(i) "Employee" means an employee of an agency.
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316320 (ii) "Employee" [does not include ] includes the following individuals only if the
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318322 agency employing the individuals determines that the individuals may participate
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320324 in the agency's pay for performance policy:
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322326 [(A) an individual in a schedule AB position, as described in Section 63A-17-301;]
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324328 [(B)] (A) an individual in a position that is not eligible to receive a retirement
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326330 benefit under Title 49, Utah State Retirement and Insurance Benefit Act; or
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328332 [(C)] (B) an individual that an agency hires for a time-limited position that will last
329-161
333+162
330334 fewer than 12 consecutive months.
331-162
335+163
332336 (c) "Independent entity" means the same as that term is defined in Section 63E-1-102.
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334338 [(c)] (d) "Pay for performance" means a plan for incentivizing an employee to meet or
335-- 5 - H.B. 404 Enrolled Copy
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339+- 5 - 1st Sub. (Buff) H.B. 404 02-18 11:41
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337341 exceed production or performance goals, in which the plan is well-defined before
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339343 work begins, specific goals and targets for the employee are determined, and
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341345 measurement procedures are in place.
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343347 [(d)] (e) "Pay for performance management system" means the system described in
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345349 Subsection (2).
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347351 (2) The division shall [establish and] make rules, in accordance with Title 63G, Chapter 3,
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349353 Utah Administrative Rulemaking Act, [make rules ]for the administration of a pay for
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351355 performance management system.
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353357 (3) The pay for performance management system shall include:
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355359 (a) guidelines and criteria for an agency to adopt pay for performance policies and
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357361 administer pay based on an employee's performance in furtherance of the agency's
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359363 mission;
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361365 (b) employee performance ratings;
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363367 (c) requirements for written employee performance standards and expectations;
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365369 (d) supervisor verbal and written feedback based on the standards of performance and
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367371 behavior outlined in an employee's performance plan; and
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369373 (e) quarterly written evaluation of an employee's performance.
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371375 (4) In consultation with the division, [no later than July 1, 2023, ]each agency shall:
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373377 (a) adopt and maintain pay for performance policies based on the performance
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375379 management system; and
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377381 (b) subject to available funds and as necessary, adjust an employee's wage to reflect:
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379383 (i) subject to Subsection (5), [for a classified service employee, ]the salary range [of
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381385 the position classified plan ]for the employee's position; and
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383387 (ii) an increase, decrease, or no change in the employee's wage:
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385389 (A) commensurate to an employee's performance as reflected by the employee's
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387391 evaluation conducted in accordance with the pay for performance management
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389393 system; and
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391395 (B) in an amount that is in accordance with the guidelines and criteria established
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393397 for a wage change in the pay for performance management system.
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395399 (5) [In] The division shall make rules in accordance with Title 63G, Chapter 3, Utah
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397401 Administrative Rulemaking Act, [the division shall make rules ]authorizing [a classified
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399403 service] an employee to receive a wage that exceeds the salary range of the [classified
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401405 service ]employee's position [classified plan ]if warranted based on the [classified ]
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403407 employee's performance rating.
404-- 6 - Enrolled Copy H.B. 404
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406410 (6)(a) An independent entity may participate in the pay for performance management
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408412 system by providing written notice to the division that:
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410414 (i) states the intent of the independent entity to participate in the system; and
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412416 (ii) indicates that the independent entity agrees to comply with Subsection (6)(b).
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414-(b) An independent entity participating in the pay for performance management system
415417 203
416-shall comply with:
418+(b) An independent participating in the pay for performance management system shall
417419 204
420+comply with:
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418422 (i) the provisions of this section; and
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420424 (ii) the rules and policies of the division relating to participation in the pay for
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422426 performance management system.
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424428 Section 3. Section 63A-17-301 is amended to read:
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426430 63A-17-301 . Career service -- Exempt positions -- Schedules for civil service
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428432 positions -- Coverage of career service provisions.
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430434 (1) Except as provided in Subsection (3)(d), the following positions are exempt from the
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432436 career service provisions of this chapter and are designated under the following
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434438 schedules:
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436440 (a) schedule AA includes the governor, members of the Legislature, and all other elected
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438442 state officers;
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440444 (b) schedule AB includes appointed executives and board or commission executives
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442446 enumerated in Section 67-22-2;
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444448 (c) schedule AC includes all employees and officers in:
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446450 (i) the office and at the residence of the governor;
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448452 (ii) the Public Lands Policy Coordinating Office;
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450454 (iii) the Office of the State Auditor; and
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452456 (iv) the Office of the State Treasurer;
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454458 (d) schedule AD includes employees who:
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456460 (i) are in a confidential relationship to an agency head or commissioner; and
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458462 (ii) report directly to, and are supervised by, a department head, commissioner, or
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460464 deputy director of an agency or its equivalent;
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462466 (e) schedule AE includes each employee of the State Board of Education that the State
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464468 Board of Education designates as exempt from the career service provisions of this
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466470 chapter;
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468472 (f) schedule AG includes employees in the Office of the Attorney General who are under
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470474 their own career service pay plan under Sections 67-5-7 through 67-5-13;
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472476 (g) schedule AH includes:
473-- 7 - H.B. 404 Enrolled Copy
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475479 (i) teaching staff of all state institutions; and
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477481 (ii) employees of the Utah Schools for the Deaf and the Blind who are:
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479483 (A) educational interpreters as classified by the division; or
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481485 (B) educators as defined by Section 53E-8-102;
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483487 (h) schedule AN includes employees of the Legislature;
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485489 (i) schedule AO includes employees of the judiciary;
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487491 (j) schedule AP includes all judges in the judiciary;
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489493 (k) schedule AQ includes:
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491495 (i) members of state and local boards and councils appointed by the governor and
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493497 governing bodies of agencies;
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495499 (ii) a water commissioner appointed under Section 73-5-1;
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497501 (iii) other local officials serving in an ex officio capacity; and
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499503 (iv) officers, faculty, and other employees of state universities and other state
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501505 institutions of higher education;
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503507 (l) schedule AR includes employees in positions that involve responsibility:
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505509 (i) for determining policy;
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507511 (ii) for determining the way in which a policy is carried out; or
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509513 (iii) of a type not appropriate for career service, as determined by the agency head
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511515 with the concurrence of the director;
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513517 (m) schedule AS includes any other employee:
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515519 (i) whose appointment is required by statute to be career service exempt;
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517521 (ii) whose agency is not subject to this chapter; or
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519523 (iii) whose agency has authority to make rules regarding the performance,
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521525 compensation, and bonuses for its employees;
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523527 (n) schedule AT includes employees of the Division of Technology Services, designated
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525529 as executive/professional positions by the director of the Division of Technology
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527531 Services with the concurrence of the director of the division;
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529533 (o) schedule AU includes patients and inmates employed in state institutions;
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531535 (p) employees of the Department of Workforce Services, designated as schedule AW:
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533537 (i) who are temporary employees that are federally funded and are required to work
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535539 under federally qualified merit principles as certified by the director; or
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537541 (ii) for whom substantially all of their work is repetitive, measurable, or transaction
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539543 based, and who voluntarily apply for and are accepted by the Department of
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541545 Workforce Services to work in a pay for performance program designed by the
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544548 Department of Workforce Services with the concurrence of the director of the
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546550 division;
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548552 (q) subject to Subsection (6), schedule AX includes employees in positions that:
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550554 (i) require the regular supervision and performance evaluation of one or more other
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552556 employees; and
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554558 (ii) are not designated exempt from career service under any other schedule described
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556560 in this Subsection (1); and
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558562 (r) for employees in positions that are temporary, seasonal, time limited, funding limited,
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560564 or variable hour in nature, under schedule codes and parameters established by the
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562566 division by administrative rule.
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564568 (2) The civil service shall consist of two schedules as follows:
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566570 (a)(i) Schedule A is the schedule consisting of positions under Subsection (1).
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568572 (ii) Removal from any appointive position under schedule A, unless otherwise
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570574 regulated by statute, is at the pleasure of the appointing officers without regard to
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572576 tenure.
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574578 (b) Schedule B is the competitive career service schedule, consisting of:
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576580 (i) all positions filled through competitive selection procedures as defined by the
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578582 director; or
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580584 (ii) positions filled through a division approved on-the-job examination intended to
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582586 appoint a qualified person with a disability, or a veteran in accordance with Title
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584588 71A, Chapter 2, Veterans Preference.
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586590 (3)(a) The director, after consultation with the heads of concerned executive branch
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588592 departments and agencies and with the approval of the governor, shall allocate
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590594 positions to the appropriate schedules under this section.
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592596 (b) Agency heads shall make requests and obtain approval from the director before
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594598 changing the schedule assignment and tenure rights of any position.
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596600 (c) Unless the director's decision is reversed by the governor, when the director denies
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598602 an agency's request, the director's decision is final.
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600604 (d)(i) An agency may file a request with the division[.] :
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602606 (A) to keep a position scheduled as a schedule B position as a schedule B position;
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604608 or
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606610 (B) to reschedule a position that is scheduled as a schedule A position as a
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608612 schedule B position.
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610614 (ii) The division shall review a request filed under Subsection (3)(d)(i) and approve
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613617 the request only if the exception is necessary to conform to a requirement imposed
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615619 as a condition precedent to receipt of federal funds or grant of a tax benefit under
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617621 federal law.
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619623 (4)(a) Compensation for employees of the Legislature shall be established by the
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621625 directors of the legislative offices in accordance with Section 36-12-7.
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623627 (b) Compensation for employees of the judiciary shall be established by the state court
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625629 administrator in accordance with Section 78A-2-107.
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627631 (c) Compensation for officers, faculty, and other employees of state universities and
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629633 institutions of higher education shall be established as provided in Title 53B, Chapter
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631635 1, Governance, Powers, Rights, and Responsibilities, and Title 53B, Chapter 2,
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633637 Institutions of Higher Education.
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635639 (d) Unless otherwise provided by law, compensation for all other schedule A employees
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637641 shall be established by their appointing authorities, within ranges approved by, and
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639643 after consultation with the director.
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641645 (5) An employee who is in a position designated schedule AC and who holds career service
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643647 status on June 30, 2010, shall retain the career service status if the employee:
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645649 (a) remains in the position that the employee is in on June 30, 2010; and
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647651 (b) does not elect to convert to career service exempt status in accordance with a rule
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649653 made by the division.
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651655 (6)(a) An employee who is hired for a schedule AX position on or after July 1, 2022, is
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653657 exempt from career service status.
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655659 (b) An employee who before July 1, 2022, is a career service employee employed in a
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657661 schedule B position that is rescheduled to a schedule AX position on July 1, 2022,
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659663 shall maintain the employee's career service status for the duration of the employee's
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661665 employment in the same position unless the employee voluntarily converts to career
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663667 service exempt status before July 1, 2023.
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665669 (c)(i) Subject to Subsection (6)(c)(ii), an employee is exempt from career service
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667671 status if:
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669673 (A) before July 1, 2022, the employee was a probationary employee in a schedule
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671675 B position and had not completed the probationary period; and
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673677 (B) on July 1, 2022, the schedule B position in which the probationary employee
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675679 is employed is rescheduled as a scheduled AX position.
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677681 (ii) An employee described in Subsection (6)(c)(i):
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679683 (A) is not a probationary employee on or after July 1, 2022; and
680-- 10 - Enrolled Copy H.B. 404
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684+- 10 - 02-18 11:41 1st Sub. (Buff) H.B. 404
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682686 (B) is exempt from career service status on and after July 1, 2022, unless the
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684688 employee changes employment to a schedule B position.
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686690 (d) The division shall disseminate to each employee described in Subsection (6)(b)
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688692 information on financial and other incentives for voluntary conversion to
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690694 career-service exempt status.
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692696 (e) An agency[, as defined in Section 63A-17-112,] may adopt a policy, created in
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694698 consultation with the division, for agency review of recommendations that schedule
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696700 AX employees be suspended, demoted, or dismissed from employment.
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698702 Section 4. Repealer.
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700704 This bill repeals:
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702706 Section 63A-17-111, Teleworking progress report.
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704708 Section 5. Effective Date.
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706710 This bill takes effect on May 7, 2025.
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