Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO CORRECTED INTRODUCED LLS NO. 12-0728.01 Richard Sweetman x4333SENATE BILL 12-136 SENATE SPONSORSHIP Lambert, Renfroe, Cadman, Harvey, Scheffel, Lundberg, Neville HOUSE SPONSORSHIP Swalm, Holbert, Szabo, Kerr J., DelGrosso, Gerou, Looper Senate Committees House Committees Finance A BILL FOR AN ACT Concerning the compensation report of the state personnel system prepared by the state personnel director. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Current law requires the state personnel director to annually prepare a compensation report of the state personnel system. The bill changes this requirement to apply every even-numbered year. The state personnel director shall include in the biennial compensation report recommendations and estimated costs for state employee retirement benefits for the next fiscal year. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-50-104, amend (4) (a), (4) (b) (I), and (4) (c) as follows: 24-50-104. Job evaluation and compensation. (4) Annual compensation process. (a) The purpose of the annual compensation process is to determine any necessary adjustments to state employee salaries, state contributions for group benefit plans, retirement benefits, and performance awards. The annual compensation survey, based on an analysis of surveys by public or private organizations, including surveys by the state personnel director, shall include a fair sample of public and private sector employers and jobs, including areas outside the Denver metropolitan area. In order to establish confidence in the selection of surveys, the state personnel director shall meet and confer in good faith with management and state employee representatives. (b) (I) The state personnel director shall prepare an annual a compensation report each even-numbered year based on the analysis of surveys conducted pursuant to paragraph (a) of this subsection (4). The purpose of the annual biennial compensation report shall be to reflect all adjustments necessary to maintain the salary structure, state contributions for group benefit plans, retirement benefits, and performance awards for the upcoming fiscal year. The state auditor is responsible for contracting with a private firm to conduct a performance audit of the procedures and application of data, including any survey conducted by the state personnel director. Beginning January 1, 2003, such audits shall be conducted every two years, and beginning January 1, 2005, the audits shall be conducted every four years. A report shall be submitted to the governor and the general assembly by the June 30 immediately following the completion of the audit. (c) By August 1, 2003, and by On or before August 1 of each even-numbered year thereafter, the state personnel director shall submit the annual biennial compensation report and recommendations and estimated costs for state employee compensation for the next fiscal year, covering salaries, state contributions for group benefit plans, retirement benefits, and performance awards, to the governor and the joint budget committee of the general assembly. The recommendations shall reflect a consideration of the results of the annual compensation survey, fiscal constraints, the ability to recruit and retain state employees, appropriate adjustments with respect to state employee compensation, and those costs resulting from implementation of section 24-50-110 (1) (a). The recommendations for state contributions for group benefit plans shall specify the annual group benefit plan year established pursuant to section 24-50-604 (1) (m). The annual biennial compensation report shall include the results of the surveys of public or private employers and jobs for prevailing total compensation and the reasons for any deviation from prevailing total compensation in the recommendations submitted to the governor and the joint budget committee. The state personnel director shall also publish such report. SECTION 2. In Colorado Revised Statutes, 24-50-604, amend (3) as follows: 24-50-604. Powers and duties of the director. (3) The director shall have the authority to adopt procedures to determine benefit eligibility requirements and the percentage of the state contribution to health benefits for all employees, as defined in section 24-50-603 (7), who work less than full time, are governed by the rules established pursuant to subsection (2) of this section, and are hired on or after January 1, 2005. The director shall include any proposed changes to the group benefits policy in the annual biennial compensation report and recommendations submitted to the governor and the joint budget committee of the general assembly pursuant to section 24-50-104 (4) (c). SECTION 3. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 8, 2012, if adjournment sine die is on May 9, 2012); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.