Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                             H.B. 429
Approved for Filing: T.R. Vaughn 6
          6 01-29-24 1:30 PM 6
                            STATE EMPLOYMENT REVISIONS
                                       2024 GENERAL SESSION
                                           STATE OF UTAH
                            Chief Sponsor: Kay J. Christofferson
                                Senate Sponsor: Evan J. Vickers
 6
 LONG TITLE
 General Description:
        This bill amends provisions of the Utah State Personnel Management Act.
 Highlighted Provisions:
        This bill:
        < defines terms;
        < beginning January 1, 2025, classifies a state employee as exempt from career
 service status unless the employee:
            C   is in a position that requires POST certification;
            C   must have career service status to maintain federal funding; or
            C   subject to certain exceptions, was a career service employee before the
 employee's position was reclassified;
        < permits an independent entity to voluntarily participate in the pay for performance
 management system;
        < grants rulemaking authority to the Division of Human Resource Management;
        < addresses the hiring preference for a veteran or a person with a disability; and
        < makes technical and conforming changes.
 Money Appropriated in this Bill:
        None
                                                                                                    H.B. 429
 Other Special Clauses:
        This bill provides a special effective date.
     *HB0429*
       H.B. 429                                                                      01-29-24 1:30 PM
 Utah Code Sections Affected:
 AMENDS:
        63A-17-102, as last amended by Laws of Utah 2022, Chapter 209
        63A-17-112, as enacted by Laws of Utah 2022, Chapter 209
        63A-17-301, as last amended by Laws of Utah 2022, Chapter 209
        63A-17-305, as renumbered and amended by Laws of Utah 2021, Chapter 344
 REPEALS:
        63A-17-101, as renumbered and amended by Laws of Utah 2021, Chapter 344
36
 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.
        (2) "Career service" means [positions under schedule B as defined in Section
 63A-17-301] the career service system described in Section 63A-17-103.
        (3) "Career service employee" means an employee who [has successfully completed a
 probationary period of service in a position covered by the career service.]:
        (a) on or after January 1, 2025, is employed in a position that is classified as a schedule
 B position, if the employee successfully completes the applicable probationary period of
 service for the position;
        (b) (i) before January 1, 2025, successfully completes the applicable probationary
 period of service in a position that, on December 31, 2024, was classified under schedule B;
 and
        (ii) on or after January 1, 2025, does not voluntarily:
        (A) accept a career service exempt position described in Subsections 63A-17-301(1)(a)
 through (r); or
        (B) elect to convert from career service status to career service exempt status; or
        (c) (i) holds a position classified as career service exempt under Subsections
 63A-17-301(1)(a) through (r); and
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       01-29-24 1:30 PM                                                                        H.B. 429
        (ii) notwithstanding that the employee holds a position described in Subsection
 (3)(c)(i), the employee has retained career service status because the employee:
        (A) obtained career service status for a position before the position was reclassified
 from a career service position to a career service exempt position; and
        (B) has not, after the reclassification described in Subsection (3)(c)(ii)(A), voluntarily:
        (I) accepted another position described in Subsections 63A-17-301(1)(a) through (r); or
        (II) elected to convert from career service status to career service exempt status.
        (4) "Career service status" means status granted to [employees who successfully
 complete probationary periods for competitive career service positions] an employee employed
 under the career service system described in Section 63A-17-103.
        (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
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        H.B. 429                                                                     01-29-24 1:30 PM
         (c) under other state or federal statute.
         (14) "Market comparability adjustment" means a salary range adjustment determined
 necessary through a market survey of salary data and other relevant information.
         (15) "POST-certified position" means a position where the employee who holds the
 position is required to:
         (a) have training certification under Title 53, Chapter 6, Part 2, Peace Officer Training
 and Certification Act; and
         (b) maintain the training certification described in Subsection (15)(a) while employed
 in the position.
         [(15)] (16) "Probationary employee" means an employee serving a probationary period
 in a career service position but who does not have career service status.
         [(16)] (17) "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)] (18) "Probationary status" means the status of an employee between the
 employee's hiring and the granting of career service status.
         [(18)] (19) "Structure adjustment" means a division modification of salary ranges.
         [(19)] (20) "Temporary employee" means career service exempt employees described
 in Subsection 63A-17-301(1)(r).
         [(20)] (21) "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-17-112 is amended 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)] (1)(a)(ii) or (iii),
 the same as that term is defined in Section 63A-17-102.
         (ii) "Agency" includes an independent entity that, in accordance with Subsection (6),
 chooses to participate in the pay for performance management system.
         [(ii)] (iii) "Agency" does not include:
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        01-29-24 1:30 PM                                                                       H.B. 429
         (A) 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, or the judiciary[, or, as defined in Section 63E-1-102, an independent entity.]; or
         (B) an independent entity, other than an independent entity described in Subsection
 (1)(a)(ii).
         (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) "Independent entity" means the same as that term is defined in Section 63E-1-102.
         [(c)] (d) "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)] (e) "Pay for performance management system" means the system described in
 Subsection (2).
         (2) The division shall [establish and] make rules, 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
         (b) subject to available funds and as necessary, adjust an employee's wage to reflect:
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         H.B. 429                                                                      01-29-24 1:30 PM
          (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] The division shall make rules, in accordance with Title 63G, Chapter 3, Utah
  Administrative Rulemaking Act, [the division shall make rules authorizing a classified service]
  authorizing an employee to receive a wage that exceeds the salary range of the [classified
  service] employee's position [classified plan] if warranted based on the      º [classified] »
162a employee's
  performance rating.
          (6) An independent entity may participate in the pay for performance management
  system by providing written notice to the division that:
          (a) states the intent of the independent entity to participate in the system; and
          (b) indicates that the independent entity agrees to comply with Subsection (7).
          (7) An independent entity described in Subsection (6) shall comply with:
          (a) this section; and
          (b) the rules and policies of the division that relate to participation in the pay for
  performance management system.
          Section 3. 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 -- Rulemaking authority.
          (1) Except as provided in Subsection (3)(d), the following positions are exempt from
  the career service provisions of this chapter and are designated under the following schedules:
          (a) schedule AA includes the governor, members of the Legislature, and all other
  elected state officers;
          (b) schedule AB includes appointed executives and board or commission executives
  enumerated in Section 67-22-2;
          (c) schedule AC includes all employees and officers in:
          (i) the office and at the residence of the governor;
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        01-29-24 1:30 PM                                                                         H.B. 429
        (ii) the Public Lands Policy Coordinating Office;
        (iii) the Office of the State Auditor; and
        (iv) the Office of the State Treasurer;
        (d) schedule AD includes employees who:
        (i) are in a confidential relationship to an agency head or commissioner; and
        (ii) report directly to, and are supervised by, a department head, commissioner, or
 deputy director of an agency or its equivalent;
        (e) schedule AE includes each employee of the State Board of Education that the State
 Board of Education designates as exempt from the career service provisions of this chapter;
        (f) schedule AG includes employees in the Office of the Attorney General who are
 under their own career service pay plan under Sections 67-5-7 through 67-5-13;
        (g) schedule AH includes:
        (i) teaching staff of all state institutions; and
        (ii) employees of the Utah Schools for the Deaf and the Blind who are:
        (A) educational interpreters as classified by the division; or
        (B) educators as defined by Section 53E-8-102;
        (h) schedule AN includes employees of the Legislature;
        (i) schedule AO includes employees of the judiciary;
        (j) schedule AP includes all judges in the judiciary;
        (k) schedule AQ includes:
        (i) members of state and local boards and councils appointed by the governor and
 governing bodies of agencies;
        (ii) a water commissioner appointed under Section 73-5-1;
        (iii) other local officials serving in an ex officio capacity; and
        (iv) officers, faculty, and other employees of state universities and other state
 institutions of higher education;
        (l) schedule AR includes employees in positions that involve responsibility:
        (i) for determining policy;
        (ii) for determining the way in which a policy is carried out; or
        (iii) of a type not appropriate for career service, as determined by the agency head with
 the concurrence of the director;
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        H.B. 429                                                                    01-29-24 1:30 PM
         (m) schedule AS includes any other employee:
         (i) whose appointment is required by statute to be career service exempt;
         (ii) whose agency is not subject to this chapter; or
         (iii) whose agency has authority to make rules regarding the performance,
 compensation, and bonuses for its employees;
         (n) schedule AT includes employees of the Division of Technology Services,
 designated as executive/professional positions by the director of the Division of Technology
 Services with the concurrence of the director of the division;
         (o) schedule AU includes patients and inmates employed in state institutions;
         (p) employees of the Department of Workforce Services, designated as schedule AW:
         (i) who are temporary employees that are federally funded and are required to work
 under federally qualified merit principles as certified by the director; or
         (ii) for whom substantially all of their work is repetitive, measurable, or transaction
 based, and who voluntarily apply for and are accepted by the Department of Workforce
 Services to work in a pay for performance program designed by the Department of Workforce
 Services with the concurrence of the director of the division;
         (q) subject to Subsection (6), schedule AX includes employees in positions that:
         (i) require the regular supervision and performance evaluation of one or more other
 employees; and
         (ii) are not designated exempt from career service under any other schedule described
 in this Subsection (1); [and]
         (r) for employees in positions that are temporary, seasonal, time limited, funding
 limited, or variable hour in nature, under schedule codes and parameter