Enrolled Copy S.B. 22 1 STATE EMPLOYEE BENEFITS AMENDMENTS 2 2023 GENERAL SESSION 3 STATE OF UTAH 4 Chief Sponsor: Lincoln Fillmore 5 House Sponsor: Brady Brammer 6 7 LONG TITLE 8 General Description: 9 This bill creates the State Employee Benefits Advisory Commission. 10 Highlighted Provisions: 11 This bill: 12 < defines terms; 13 < creates the State Employee Benefits Advisory Commission; 14 < describes the commission's membership, quorum requirements, duties, and other 15 requirements; 16 < establishes reporting requirements for the commission; 17 < provides a sunset date for the commission; and 18 < makes technical and conforming changes. 19 Money Appropriated in this Bill: 20 None 21 Other Special Clauses: 22 This bill provides a special effective date. 23 Utah Code Sections Affected: 24 AMENDS: 25 63A-17-307, as last amended by Laws of Utah 2022, Chapters 169, 209 26 63I-1-263, as last amended by Laws of Utah 2022, Chapters 23, 34, 68, 153, 218, 236, 27 249, 274, 296, 313, 361, 362, 417, 419, and 472 28 ENACTS: S.B. 22 Enrolled Copy 29 63C-29-101, Utah Code Annotated 1953 30 63C-29-102, Utah Code Annotated 1953 31 63C-29-103, Utah Code Annotated 1953 32 33 Be it enacted by the Legislature of the state of Utah: 34 Section 1. Section 63A-17-307 is amended to read: 35 63A-17-307. State pay plans -- Applicability of section -- Exemptions -- Duties of 36 director. 37 (1) (a) This section, and the rules made by the division under this section, apply to each 38 career and noncareer employee not specifically exempted under Subsection (2). 39 (b) If not exempted under Subsection (2), an employee is considered to be in classified 40 service. 41 (2) The following employees are exempt from this section: 42 (a) members of the Legislature and legislative employees; 43 (b) members of the judiciary and judicial employees; 44 (c) elected members of the executive branch and employees designated as schedule AC 45 as provided under Subsection 63A-17-301(1)(c); 46 (d) employees of the State Board of Education; 47 (e) officers, faculty, and other employees of state institutions of higher education; 48 (f) employees in a position that is specified by statute to be exempt from this 49 Subsection (2); 50 (g) employees in the Office of the Attorney General; 51 (h) department heads and other persons appointed by the governor under statute; 52 (i) schedule AS employees as provided under Subsection 63A-17-301(1)(m); 53 (j) department deputy directors, division directors, and other employees designated as 54 schedule AD as provided under Subsection 63A-17-301(1)(d); 55 (k) employees that determine and execute policy designated as schedule AR as -2- Enrolled Copy S.B. 22 56 provided under Subsection 63A-17-301(1)(l); 57 (l) teaching staff, educational interpreters, and educators designated as schedule AH as 58 provided under Subsection 63A-17-301(1)(g); 59 (m) temporary employees described in Subsection 63A-17-301(1)(r); 60 (n) patients and inmates designated as schedule AU as provided under Subsection 61 63A-17-301(1)(o) who are employed by state institutions; and 62 (o) members of state and local boards and councils and other employees designated as 63 schedule AQ as provided under Subsection 63A-17-301(1)(k). 64 (3) (a) The director shall prepare, maintain, and revise a position classification plan for 65 each employee position not exempted under Subsection (2) to provide equal pay for equal 66 work. 67 (b) Classification of positions shall be based upon similarity of duties performed and 68 responsibilities assumed, so that the same job requirements and the same salary range, subject 69 to Section 63A-17-112, may be applied equitably to each position in the same class. 70 (c) The director shall allocate or reallocate the position of each employee in classified 71 service to one of the classes in the classification plan. 72 (d) (i) The division shall conduct periodic studies and interviews to provide that the 73 classification plan remains reasonably current and reflects the duties and responsibilities 74 assigned to and performed by employees. 75 (ii) The director shall determine the need for studies and interviews after considering 76 factors such as changes in duties and responsibilities of positions or agency reorganizations. 77 (4) (a) With the approval of the executive director and the governor, the director shall 78 develop and adopt pay plans for each position in classified service. 79 (b) The director shall design each pay plan to achieve, to the degree that funds permit, 80 comparability of state salary ranges to the market using data obtained from private enterprise 81 and other public employment for similar work. 82 (c) The director shall adhere to the following in developing each pay plan: -3- S.B. 22 Enrolled Copy 83 (i) each pay plan shall consist of sufficient salary ranges to: 84 (A) permit adequate salary differential among the various classes of positions in the 85 classification plan; and 86 (B) reflect the normal growth and productivity potential of employees in that class. 87 (ii) The director shall issue rules for the administration of pay plans. 88 (d) The establishing of a salary range is a nondelegable activity and is not appealable 89 under the grievance procedures of Part 6, Grievance Provisions, Title 67, Chapter 19a, 90 Grievance Procedures, or otherwise. 91 (e) The director shall make rules, accordance with Title 63G, Chapter 3, Utah 92 Administrative Rulemaking Act, providing for: 93 (i) agency approved salary adjustments within approved salary ranges, including an 94 administrative salary adjustment; and 95 (ii) structure adjustments that modify salary ranges, including a cost of living 96 adjustment or market comparability adjustment. 97 (5) (a) On or before October 31 of each year, the director shall submit an annual 98 compensation plan to the executive director and the governor for consideration in the executive 99 budget[.] and to the State Employee Benefits Advisory Commission created in Section 100 63C-29-102. 101 (b) The plan described in Subsection (5)(a) may include recommendations, including: 102 (i) salary increases that generally affect employees, including a general increase or 103 merit increase; 104 (ii) salary increases that address compensation issues unique to an agency or 105 occupation; 106 (iii) structure adjustments, including a cost of living adjustment or market 107 comparability adjustment; or 108 (iv) changes to employee benefits. 109 (c) (i) (A) Subject to Subsection (5)(c)(i)(B) or (C), the director shall incorporate the -4- Enrolled Copy S.B. 22 110 results of a salary survey of a reasonable cross section of comparable positions in private and 111 public employment in the state into the annual compensation plan. 112 (B) The salary survey for a law enforcement officer, as defined in Section 53-13-103, a 113 correctional officer, as defined in Section 53-13-104, or a dispatcher, as defined in Section 114 53-6-102, shall at minimum include the three largest political subdivisions in the state that 115 employ, respectively, comparable positions. 116 (C) The salary survey for an examiner or supervisor described in Title 7, Chapter 1, 117 Part 2, Department of Financial Institutions, shall at minimum include the Federal Deposit 118 Insurance Corporation, Federal Reserve, and National Credit Union Administration. 119 (ii) The director may cooperate with or participate in any survey conducted by other 120 public and private employers. 121 (iii) The director shall obtain information for the purpose of constructing the survey 122 from the Division of Workforce Information and Payment Services and shall include employer 123 name, number of persons employed by the employer, employer contact information and job 124 titles, county code, and salary if available. 125 (iv) The division shall acquire and protect the needed records in compliance with the 126 provisions of Section 35A-4-312. 127 (d) The director may incorporate any other relevant information in the plan described 128 in Subsection (5)(a), including information on staff turnover, recruitment data, or external 129 market trends. 130 (e) The director shall: 131 (i) establish criteria to assure the adequacy and accuracy of data used to make 132 recommendations described in this Subsection (5); and 133 (ii) when preparing recommendations use accepted methodologies and techniques 134 similar to and consistent with those used in the private sector. 135 (f) (i) Upon request and subject to Subsection (5)(f)(ii), the division shall make 136 available foundational information used by the division or director in the drafting of a plan -5- S.B. 22 Enrolled Copy 137 described in Subsection (5)(a), including: 138 (A) demographic and labor market information; 139 (B) information on employee turnover; 140 (C) salary information; 141 (D) information on recruitment; and 142 (E) geographic data. 143 (ii) The division may not provide under Subsection (5)(f)(i) information or other data 144 that is proprietary or otherwise protected under the terms of a contract or by law. 145 (g) The governor shall: 146 (i) consider salary and structure adjustments recommended under Subsection (5)(b) in 147 preparing the executive budget and shall recommend the method of distributing the 148 adjustments; 149 (ii) submit compensation recommendations to the Legislature; and 150 (iii) support the recommendation with schedules indicating the cost to individual 151 departments and the source of funds. 152 (h) If funding is approved by the Legislature in a general appropriations act, the 153 adjustments take effect on the July 1 following the enactment unless otherwise indicated. 154 (6) (a) The director shall make rules, in accordance with Title 63G, Chapter 3, Utah 155 Administrative Rulemaking Act, for the granting of incentive awards, including awards for cost 156 saving actions, awards for commendable actions by an employee, or a market-based award to 157 attract or retain employees. 158 (b) An agency may not grant a market-based award unless the award is previously 159 approved by the division. 160 (c) In accordance with Subsection (6)(b), an agency requesting the division's approval 161 of a market-based award shall submit a request and documentation, subject to Subsection 162 (6)(d), to the division. 163 (d) In the documentation required in Subsection (6)(c), the requesting agency shall -6- Enrolled Copy S.B. 22 164 identify for the division: 165 (i) any benefit the market-based award would provide for the agency, including: 166 (A) budgetary advantages; or 167 (B) recruitment advantages; 168 (ii) a mission critical need to attract or retain unique or hard to find skills in the market; 169 or 170 (iii) any other advantage the agency would gain through the utilization of a 171 market-based award. 172 (7) (a) The director shall regularly evaluate the total compensation program of state 173 employees in the classified service. 174 (b) The division shall determine if employee benefits are comparable to those offered 175 by other private and public employers using information from: 176 (i) a study conducted by a third-party consultant; or 177 (ii) the most recent edition of a nationally recognized benefits survey. 178 Section 2. Section 63C-29-101 is enacted to read: 179 CHAPTER 29. STATE EMPLOYEE BENEFITS ADVISORY COMMISSION 180 63C-29-101. Definitions. 181 As used in this chapter: 182 (1) "Annual compensation plan" means the annual compensation plan described in 183 Section 63A-17-307. 184 (2) "Benefits advisory commission" means the State Employee Benefit Advisory 185 Commission created in Section 63C-29-102. 186 (3) "Total compensation" means the same as that term is defined in Section 187 63A-17-102. 188 Section 3. Section 63C-29-102 is enacted to read: 189 63C-29-102. Creation of State Employee Benefits Advisory Commission -- 190 Membership. -7- S.B. 22 Enrolled Copy 191 (1) There is created the State Employee Benefits Advisory Commission consisting of 192 the following members: 193 (a) one member of the Senate, appointed by the president of the Senate; 194 (b) one member of the House of Representatives, appointed by the speaker of the 195 House of Representatives; 196 (c) the director of the Division of Human Resource Management, created in Section 197 63A-17-105, or the director's designee; 198 (d) the executive director of the Governor's Office of Planning and Budget, created in 199 Section 63J-4-201, or the executive director's designee; 200 (e) the following four individuals who are not employed by the state or another public 201 entity and are appointed jointly by the president of the Senate and speaker of the House of 202 Representatives: 203 (i) an individual who has experience in health insurance benefits in the private sector; 204 (ii) an individual who has experience in business and employee benefits in the private 205 sector; and 206 (iii) a representative of an organization that represents the interests of state employees; 207 and 208 (f) a representative of the Public Employees' Benefit and Insurance Program, created in 209 Section 49-20-103, appointed by the executive director of the Utah State Retirement Office. 210 (2) (a) The member of the Senate appointed under Subsection (1)(a) is a cochair of the 211 benefits advisory commission. 212 (b) The member of the House of Representatives appointed under Subsection (1)(b) is 213 a cochair of the benefits advisory commission. 214 (3) (a) Each position described in Subsection (1)(e) is for a term of four years. 215 (b) A vacancy in a position appointed under Subsection (1)(a), (b), (e), or (f) shall be 216 filled by appointing a replacement member in the same manner as the member creating the 217 vacancy was appointed under Subsection (1)(a), (b), (e), or (f), respectively. -8- Enrolled Copy S.B. 22 218 (c) If a position described in Subsection (1)(e) is vacant, the president of the Senate and 219 speaker of the House of Representatives shall jointly appoint the replacement member for the 220 remainder of the unexpired term. 221 (4) (a) A majority of members constitute a quorum. 222 (b) The action of a majority of a quorum constitutes the action of the benefits advisory 223 commission. 224 (5) The benefits advisory commission shall meet as necessary to effectively conduct 225 the commission's business and duties as prescribed by statute, but not less than twice a year. 226 (6) The Division of Human Resource Management shall provide staff support to 227 facilitate the function of the benefits advisory commission and record the benefits advisory 228 commission's action and recommendations. 229 (7) (a) The salary and expenses of a benefits advisory commission member who is a 230 legislator shall be paid in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, 231 Legislative Compensation and Expenses. 232 (b) A benefits advisory commission member who is not a legislator may not receive 233 compensation or benefits for the member's service on the benefits advisory commission, but 234 may receive per diem and reimbursement for travel expenses incurred as a benefits advisory 235 commission member at the rates established by the Division of Finance under: 236 (i) Sections 63A-3-106 and 63A-3-107; and 237 (ii) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107. 238 (8) The benefits advisory commission shall comply with the provisions of Title 52, 239 Chapter 4, Open and Public Meetings Act. 240 Section 4. Section 63C-29-103 is enacted to read: 241 63C-29-103. Duties of benefits advisory commission.