Bill Summary – FastDemocracy

Enrolled Copy                                                                        H.B. 104
                          STATE EMPLOYMENT AMENDMENTS
                                      2022 GENERAL SESSION
                                           STATE OF UTAH
                            Chief Sponsor: Kay J. Christofferson
                                 Senate Sponsor: Evan J. Vickers
 6
 LONG TITLE
 General Description:
        This bill enacts and amends provisions related to the employment and management of
 state personnel.
 Highlighted Provisions:
        This bill:
        < requires the Division of Human Resource Management (division) to provide
 training for supervisors of state agency employees;
        < requires a supervisor to attend the training;
        < requires the division to establish a pay for performance management system;
        < requires the division to make rules allowing an employee to receive a wage that
 exceeds the employee's salary range if necessary to recognize the employee's
 performance;
        < requires a state agency, no later than July 1, 2023, to evaluate and pay employees
 based on performance;
        < provides that a state employee hired in a supervisor position on or after July 1,
 2022, is exempt from the career service system;
        < allows a state employee in a supervisor position who holds career service status
 before July 1, 2022, to retain the employee's career service status or convert to
 career-service exempt status by July 1, 2023;
        < prohibits the Career Service Review Office from taking jurisdiction of a matter that
 an employer has not had an opportunity to address;
        < clarifies the process for filing a grievance;
       H.B. 104                                                                   Enrolled Copy
        < repeals longevity and promotion salary increases for certain state employees;
        < except in certain circumstances, requires an employee to submit a grievance within
 10 working days; and
        < makes conforming changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        This bill provides a special effective date.
 Utah Code Sections Affected:
 AMENDS:
        63A-17-102, as renumbered and amended by Laws of Utah 2021, Chapter 344
        63A-17-106, as renumbered and amended by Laws of Utah 2021, Chapter 344
        63A-17-301, as last amended by Laws of Utah 2021, Chapter 382 and renumbered and
 amended by Laws of Utah 2021, Chapter 344
        63A-17-307, as renumbered and amended by Laws of Utah 2021, Chapter 344
        63I-2-263, as last amended by Laws of Utah 2021, First Special Session, Chapter 4
        67-19a-202, as last amended by Laws of Utah 2021, Chapter 344
        67-19a-302, as repealed and reenacted by Laws of Utah 2018, Chapter 390
        67-19a-401, as last amended by Laws of Utah 2018, Chapter 390
 ENACTS:
        63A-17-112, Utah Code Annotated 1953
51
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 63A-17-102 is amended to read:
        63A-17-102. Definitions.
        As used in this chapter:
        (1) "Agency" means any department or unit of Utah state government with authority to
 employ personnel.
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       Enrolled Copy                                                                           H.B. 104
        (2) "Career service" means positions under schedule B as defined in Section
 63A-17-301.
        (3) "Career service employee" means an employee who has successfully completed a
 probationary period of service in a position covered by the career service.
        (4) "Career service status" means status granted to employees who successfully
 complete probationary periods for competitive career service positions.
        (5) "Classified service" means those positions subject to the classification and
 compensation provisions of Section 63A-17-307.
        (6) "Controlled substance" means controlled substance as defined in Section 58-37-2.
        (7) (a) "Demotion" means a disciplinary action resulting in a reduction of an
 employee's current actual wage.
        (b) "Demotion" does not mean:
        (i) a nondisciplinary movement of an employee to another position without a reduction
 in the current actual wage; or
        (ii) a reclassification of an employee's position under the provisions of Subsection
 63A-17-307(3) and rules made by the department.
        (8) "Director" means the director of the division.
        (9) "Disability" means a physical or mental disability as defined and protected under
 the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq.
        (10) "Division" means the Division of Human Resource Management, created in
 Section 63A-17-105.
        (11) "Employee" means any individual in a paid status covered by the career service or
 classified service provisions of this chapter.
        (12) "Examining instruments" means written or other types of proficiency tests.
        (13) "Human resource function" means those duties and responsibilities specified:
        (a) under Section 63A-17-106;
        (b) under rules of the division; and
        (c) under other state or federal statute.
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        H.B. 104                                                                       Enrolled Copy
         (14) "Market comparability adjustment" means a salary range adjustment determined
 necessary through a market survey of salary data and other relevant information.
         (15) "Probationary employee" means an employee serving a probationary period in a
 career service position but who does not have career service status.
         (16) "Probationary period" means that period of time determined by the division that an
 employee serves in a career service position as part of the hiring process before career service
 status is granted to the employee.
         (17) "Probationary status" means the status of an employee between the employee's
 hiring and the granting of career service status.
         (18) "Structure adjustment" means a division modification of salary ranges.
         (19) "Temporary employee" means career service exempt employees described in
 Subsection 63A-17-301(1)[(q)](r).
         (20) "Total compensation" means salaries and wages, bonuses, paid leave, group
 insurance plans, retirement, and all other benefits offered to state employees as inducements to
 work for the state.
         Section 2. Section 63A-17-106 is amended to read:
         63A-17-106. Responsibilities of the director.
         (1) The director shall have full responsibility and accountability for the administration
 of the statewide human resource management system.
         (2) Except as provided in Section 63A-17-201, an agency may not perform human
 resource functions without the consent of the director.
         (3) Statewide human resource management rules adopted by the division in accordance
 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall take precedence if there
 is a conflict with agency rules, policies, or practices.
         (4) The division may operate as an internal service fund agency in accordance with
 Section 63J-1-410 for the human resource functions the division provides.
         (5) The director shall:
         (a) develop, implement, and administer a statewide program of human resource
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        Enrolled Copy                                                                       H.B. 104
 management that will:
        (i) aid in the efficient execution of public policy;
        (ii) foster careers in public service for qualified employees; and
        (iii) render assistance to state agencies in performing their missions;
        (b) design and administer the state pay plan;
        (c) design and administer the state classification system and procedures for determining
 schedule assignments;
        (d) design and administer the state recruitment and selection system;
        (e) administer agency human resource practices and ensure compliance with federal
 law, state law, and state human resource rules, including equal employment opportunity;
        (f) consult with agencies on decisions concerning employee corrective action and
 discipline;
        (g) maintain central personnel records;
        (h) perform those functions necessary to implement this chapter unless otherwise
 assigned or prohibited;
        (i) perform duties assigned by the governor, executive director, or statute;
        (j) adopt rules for human resource management according to the procedures of Title
 63G, Chapter 3, Utah Administrative Rulemaking Act;
        (k) establish and maintain a management information system that will furnish the
 governor, the Legislature, and agencies with current information on authorized positions,
 payroll, and related matters concerning state human resources;
        (l) conduct research and planning activities to:
        (i) determine and prepare for future state human resource needs;
        (ii) develop methods for improving public human resource management; and
        (iii) propose needed policy changes to the governor;
        (m) study the character, causes, and extent of discrimination in state employment and
 develop plans for its elimination through programs consistent with federal and state laws
 governing equal employment opportunity in employment;
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        H.B. 104                                                                      Enrolled Copy
        (n) when requested by charter schools or counties, municipalities, and other political
 subdivisions of the state, provide technical service, training recommendations, or advice on
 human resource management at a charge determined by the director;
        (o) establish compensation policies and procedures for early voluntary retirement;
        (p) confer with the heads of other agencies about human resource policies and
 procedures;
        (q) submit an annual report to the executive director, the governor, and the Legislature;
 and
        (r) assist with the development of a vacant position report required under Subsection
 63J-1-201(2)(b)(vi).
        (6) (a) After consultation with the executive director, the governor, and the heads of
 other agencies, the director shall establish and coordinate statewide training programs,
 including [and subject to available funding, the development of manager and supervisor
 training] training described in Subsection (6)(e).
        (b) The programs developed under this Subsection (6) shall have application to more
 than one agency.
        (c) The division may not establish training programs that train employees to perform
 highly specialized or technical jobs and tasks.
        (d) The division shall ensure that any training program described in this Subsection (6)
 complies with Title 63G, Chapter 22, State Training and Certification Requirements.
        (e) (i) As used in this Subsection (6)(e):
        (A) "Employee" means the same as that term is defined in Section 63A-17-112.
        (B) "Supervisor" means an individual in a position at an agency, as defined in Section
 63A-17-112, that requires the regular supervision and performance evaluation of an employee.
        (ii) A supervisor shall attend the training:
        (A) within six months of being promoted or hired to the position of supervisor; and
        (B) at least annually.
        (iii) Training attendance and the effective use of training information and principles
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        Enrolled Copy                                                                         H.B. 104
 shall be considered in an evaluation of a supervisor's job performance.
        (iv) The training shall include:
        (A) effective employee management and evaluation methods based on the pay for
 performance management system described in Section 63A-17-112;
        (B) instruction to improve supervisor and employee communications;
        (C) best practices for recognizing and retaining high-performing employees;
        (D) best practices for addressing poor-performing employees; and
        (E) any other information and principles identified by the division to improve
 management or organizational effectiveness.
        (7) (a) (i) The division may collect fees for training as authorized by this Subsection
 (7).
        (ii) Training funded from General Fund appropriations shall be treated as a separate
 program within the department budget.
        (iii) All money received from fees under this section will be accounted for by the
 department as a separate user driven training program.
        (iv) The user training program includes the costs of developing, procuring, and
 presenting training and development programs, and other associated costs for these programs.
        (b) (i) Funds remaining at the end of the fiscal year in the user training program are
 nonlapsing.
        (ii) Each year, as part of the appropriations process, the Legislature shall review the
 amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
 the department to lapse a portion of the funds.
        Section 3. Section 63A-17-112 is enacted to read:
        63A-17-112. Pay for performance management system -- Employees paid for
 performance.
        (1) As used in this section:
        (a) (i) "Agency" means, except as provided in Subsection (1)(a)(ii), the same as that
 term is defined in Section 63A-17-102.
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       H.B. 104                                                                       Enrolled Copy
        (ii) "Agency" does not include the State Board of Education, the Office of the State
 Treasurer, Office of the State Auditor, Office of the State Attorney General, Utah System of
 Higher Education, the Legislature, the judiciary, or, as defined in Section 63E-1-102, an
 independent entity.
        (b) (i) "Employee" means an employee of an agency.
        (ii) "Employee" does not include an individual in a schedule AB, as described in
 Section 63A-17-301, position.
        (c) "Pay for performance" means a plan for incentivizing an employee for meeting or
 exceeding production or performance goals, in which the plan is well-defined before work
 begins, eligible work groups are defined, specific goals and targets for the employee are
 determined, measurement procedures are in place, and specific incentives are provided when
 goals and targets are met.
        (d) "Pay for performance management system" means the system described in
 Subsection (2).
        (2) The division shall establish and, in accordance with Title 63G, Chapter 3, Utah
 Administrative Rulemaking Act, make rules for the administration of a pay for performance
 management system.
        (3) The pay for performance management system shall include:
        (a) guidelines and criteria for an agency to adopt pay for performance policies and
 administer pay based on an employee's performance in furtherance of the agency's mission;
        (b) employee performance ratings;
        (c) requirements for written employee performance standards and expectations;
        (d) supervisor verbal and written feedback based on the standards of performance and
 behavior outlined in an employee's performance plan; and
        (e) quarterly written evaluation of an employee's performance.
        (4) In consultation with the division, no later than July 1, 2023, each agency shall:
        (a) adopt pay for performance policies based on the performance management system;
 and
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        Enrolled Copy                                                                             H.B. 104
         (b) subject to available funds and as necessary, adjust an employee's wage to reflect:
         (i) subject to Subsection (5), for a classified service employee, the salary range of the
 position classified plan for the employee's position; and
         (ii) an increase, decrease, or no change in the employee's wage:
         (A) commensurate to an employee's performance as reflected by the employee's
 evaluation conducted in accordance with the pay for performance management system; and
         (B) in an amount that is in accordance with the guidelines and criteria established for a
 wage change in the pay for performance management system.
         (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
 division shall make rules authorizing a classified service employee to receive a wage that
 exceeds the salary range of the classified service employee's position classified plan if
 warranted based on the classified employee's performance rating.
         Section 4. Section 63A-17-301 is amended to read:
         63A-17-301. Career service -- Exempt positions -- Schedules for civil service
 positions -- Coverage of career service provisions.
         (1) Except as [otherwise provided by law or by rules and