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First Regular Session

Sixty-first General Assembly

LLS NO. 97­0208.01 JY HOUSE BILL 97­1163

STATE OF COLORADO

BY REPRESENTATIVE Pfiffner;

also SENATOR Blickensderfer.

ENGROSSED

STATE, VETERANS &

MILITARY AFFAIRS

A BILL FOR AN ACT

CONCERNING THE STATE EMPLOYEE COMPENSATION LAW, AND, IN CONNECTION THEREWITH, RESTRUCTURING THE PROVISIONS CONCERNING STATE EMPLOYEE JOB EVALUATION AND COMPENSATION.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Restructures the statutory provisions on state employee job evaluation and compensation. Relocates, with amendments, provisions governing the state personnel system, including the following:

Makes substantive changes to the state employee compensation law, including the following:

Conforms state law to federal law as follows:

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  24­50­104, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is REPEALED AND REENACTED, WITH AMENDMENTS, to read:

24­50­104.  Job evaluation and compensation. (1)  Total compensation philosophy. (a) (I)  IT IS THE POLICY OF THE STATE, IN RECRUITING AND RETAINING A QUALIFIED AND COMPETENT WORK FORCE, TO PROVIDE PREVAILING TOTAL COMPENSATION TO OFFICERS AND EMPLOYEES IN THE STATE PERSONNEL SYSTEM.

(II)  FOR PURPOSES OF THIS PARAGRAPH (a), "PREVAILING TOTAL COMPENSATION" MEANS THE SALARY, BENEFITS, INCLUDING RETIREMENT BENEFITS, AND PREMIUM PAY PRACTICES COMPARABLE TO THOSE FOUND BY THE STATE PERSONNEL DIRECTOR IN SIMILAR KINDS OF EMPLOYMENT IN APPROPRIATE MARKETS OF PUBLIC AND PRIVATE EMPLOYMENT. TO DETERMINE COMPARABLE RATES FOR SALARIES, BENEFITS, INCLUDING RETIREMENT BENEFITS, AND PREMIUM PAY PRACTICES PREVAILING IN OTHER PLACES OF PUBLIC AND PRIVATE EMPLOYMENT, THE STATE PERSONNEL DIRECTOR SHALL ANNUALLY UTILIZE THE RESULTS OF APPROPRIATE SALARY AND BENEFITS SURVEYS CONDUCTED BY PUBLIC OR PRIVATE ORGANIZATIONS AND OTHER SUPPLEMENTAL SALARY OR BENEFIT SURVEYS AS DEEMED NECESSARY BY THE DIRECTOR TO DETERMINE AND MAINTAIN COMPARABLE TOTAL COMPENSATION FOR THE WORK FORCE.

(b)  THE STATE PERSONNEL DIRECTOR SHALL USE A SYSTEMATIC APPROACH TO DETERMINE OBJECTIVELY CLASSES OF POSITIONS AND THE UNIFORM ALIGNMENT OF CLASSES AND OCCUPATIONAL GROUPS FOR ALL JOBS IN THE STATE PERSONNEL SYSTEM. THE STATE PERSONNEL DIRECTOR SHALL CONDUCT TIMELY, ONGOING, AND TECHNICALLY SOUND EVALUATION AND ANALYSES OF JOBS IN ORDER TO GROUP SIMILAR DUTIES AND RESPONSIBILITIES INTO CLEARLY DISTINGUISHED CLASSES AND OCCUPATIONAL GROUPS THAT RELATE TO THE COMPENSATION STRUCTURE THROUGH THE ASSIGNMENT OF APPROPRIATE PAY GRADES.

(c)   THE STATE PERSONNEL DIRECTOR SHALL DEVELOP A PERFORMANCE MANAGEMENT, EVALUATION, AND REWARD SYSTEM THAT PERMITS PERIODIC SALARY INCREASES BASED ON DEMONSTRATED PERFORMANCE, WITHHOLDING OF SUCH INCREASES FOR LESS THAN SATISFACTORY PERFORMANCE, AND THE ESTABLISHMENT OF A JOB RATE FOR ALL CLASSES IN EACH OCCUPATIONAL GROUP. MOVEMENT WITHIN A PAY GRADE SHALL BE BASED ON SATISFACTORY OR BETTER PERFORMANCE. ONCE AN EMPLOYEE REACHES THE JOB RATE, WHICH SHALL BE AN AMOUNT ESTABLISHED BY THE ANNUAL TOTAL COMPENSATION SURVEY, THE EMPLOYEE SHALL BE ELIGIBLE ONLY FOR NON­BASE BUILDING PERFORMANCE AWARDS RATHER THAN BASE SALARY ADJUSTMENTS. SALARIES MAY BE INCREASED OR LEFT UNCHANGED SUBJECT TO AVAILABLE APPROPRIATION FOR THE TOTAL COMPENSATION PROGRAM; EXCEPT THAT NO ANNUAL INCREASE SHALL BE GUARANTEED. ANY PERFORMANCE AWARDS SHALL BE EFFECTIVE ON JULY 1 OF EACH YEAR.

(d)  THE STATE PERSONNEL DIRECTOR SHALL IMPLEMENT A PERFORMANCE­BASED PAY PLAN OVER A PERIOD OF THREE YEARS IN THREE SEPARATE PHASES BEGINNING JULY 1, 1998, AND ALL EMPLOYEES IN THE STATE PERSONNEL SYSTEM SHALL BE COVERED UNDER SUCH PLAN AS OF JULY 1, 2000. UNTIL AN EMPLOYEE BECOMES COVERED BY THE PERFORMANCE­BASED PAY PLAN, ANNIVERSARY­BASED MERIT INCREASES SHALL CONTINUE TO APPLY. FOLLOWING CONSULTATION WITH THE JOINT BUDGET COMMITTEE, THE PERFORMANCE­BASED PAY PLAN SHALL BE IMPLEMENTED AND COORDINATED BY THE DEPARTMENT OF PERSONNEL PURSUANT TO GUIDELINES DEVELOPED BY THE DEPARTMENT AND SUBJECT TO AVAILABLE APPROPRIATIONS.

(e)  THE COMPENSATION RATE OF AN EMPLOYEE MAY BE SUSTAINED BY THE STATE PERSONNEL DIRECTOR IN THE EVENT OF SUCH EMPLOYEE'S POSITION BEING PLACED IN A LOWER PAY RANGE DUE TO AN ALLOCATION OF SUCH EMPLOYEE'S POSITION, A SYSTEM MAINTENANCE STUDY OF ALL POSITIONS IN A CLASS, A GENERAL JOB EVALUATION STUDY OF THE STATE PERSONNEL SYSTEM, OR THE ANNUAL TOTAL COMPENSATION SURVEY, FOR A PERIOD NOT TO EXCEED THREE YEARS FROM THE EFFECTIVE DATE OF SUCH PLACEMENT.

(f)  INITIAL HIRING SHALL TYPICALLY BE AT THE MINIMUM RATE IN THE PAY GRADE; EXCEPT THAT, ON A SHOWING OF RECRUITING DIFFICULTY OR OTHER UNUSUAL CONDITIONS BY THE HEAD OF THE PRINCIPAL DEPARTMENT, THE GOVERNOR OR THE GOVERNOR'S DESIGNEE, MAY AUTHORIZE THE APPOINTMENT OF A PERSON AT A HIGHER RATE WITHIN THE PAY GRADE NOT TO EXCEED THE JOB RATE FOR THE CLASS.

(g)  BENEFITS SHALL INCLUDE INSURANCE, RETIREMENT, AND LEAVES OF ABSENCE, WITH OR WITHOUT PAY. THE STATE PERSONNEL DIRECTOR SHALL PRESCRIBE PROCEDURES FOR THE TYPES, AMOUNTS, AND CONDITIONS FOR ALL LEAVE BENEFITS, WHICH ARE TYPICALLY CONSISTENT WITH PREVAILING PRACTICES, SUBJECT TO THE PROVISIONS GOVERNING THE BENEFITS PROVIDED IN SUBSECTION (7) OF THIS SECTION. THE GENERAL ASSEMBLY SHALL APPROVE ANY CHANGES TO LEAVE BENEFITS GRANTED BY STATUTE BEFORE SUCH CHANGES ARE IMPLEMENTED. THE STATE PERSONNEL DIRECTOR SHALL PRESCRIBE BY PROCEDURE ANY NONSTATUTORY BENEFITS.

(h)  THE STATE PERSONNEL DIRECTOR MAY, FOLLOWING CONSULTATION WITH THE STATE AUDITOR AND CONSISTENT WITH ARTICLE III AND SECTIONS 13, 14, AND 15 OF ARTICLE XII OF THE STATE CONSTITUTION, ESTABLISH SPECIAL PROCEDURES FOR THE CLASSIFICATION OF EMPLOYEES OF THE STATE AUDITOR'S OFFICE WHO ARE WITHIN THE STATE PERSONNEL SYSTEM IN ORDER TO TAKE INTO CONSIDERATION THE SPECIAL SITUATIONS, CIRCUMSTANCES, AND DUTIES UNIQUE TO SUCH EMPLOYEES. SUCH SPECIAL PROCEDURES SHALL INCORPORATE THE DIRECTIVES, REQUIREMENTS, AND ELEMENTS OF SECTIONS 13, 14, AND 15 OF ARTICLE XII OF THE STATE CONSTITUTION, INCLUDING, BUT NOT LIMITED TO, THE GRADING AND COMPENSATION OF PERSONS IN THE PERSONNEL SYSTEM ACCORDING TO STANDARDS OF EFFICIENT SERVICE THAT ARE THE SAME FOR ALL PERSONS HAVING LIKE DUTIES.

(2)  Records. TO FACILITATE THE REPORTING OF ESTIMATED COSTS REQUIRED OF THE STATE PERSONNEL DIRECTOR PURSUANT TO PARAGRAPH (c) OF SUBSECTION (4) OF THIS SECTION, THE RECORDS OF ALL CLASSIFIED POSITIONS IN THE STATE PERSONNEL SYSTEM SHALL BE CURRENT AND INCLUDED IN THE STATE PERSONNEL DATA SYSTEM BY JANUARY 1 OF EACH YEAR.

(3)  Total compensation advisory council. (a)  A TOTAL COMPENSATION ADVISORY COUNCIL IS HEREBY ESTABLISHED TO ADVISE THE STATE PERSONNEL DIRECTOR ON POLICY MATTERS RELATED TO THE TOTAL COMPENSATION PROGRAM, INCLUDING THE UTILIZATION AND SELECTION OF THE TOTAL COMPENSATION SURVEY AND APPROVING THE CONDUCT OF SUPPLEMENTAL SALARY OR BENEFITS SURVEYS, DEEMED NECESSARY BY THE DIRECTOR UNDER SUBPARAGRAPH (II) OF PARAGRAPH (a) OF SUBSECTION (1) OF THIS SECTION. THE TOTAL COMPENSATION ADVISORY COUNCIL SHALL CONSIST OF ELEVEN MEMBERS, WHO SHALL SERVE WITHOUT COMPENSATION, AS FOLLOWS:

(I)  THE STATE CONTROLLER OR HIS OR HER DESIGNEE;

(II)  THE ATTORNEY GENERAL OR HIS OR HER DESIGNEE;

(III)  THE INSURANCE COMMISSIONER OR HIS OR HER DESIGNEE; (IV)  A PRIVATE SECTOR TOTAL COMPENSATION SPECIALIST APPOINTED BY THE STATE PERSONNEL DIRECTOR;

(V)  A MEMBER OF THE SENATE APPOINTED BY THE PRESIDENT OF THE SENATE;

(VI)  A MEMBER OF THE HOUSE OF REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES; AND

(VII)  FIVE MEMBERS ELECTED BY EMPLOYEES IN THE STATE PERSONNEL SYSTEM FOR THREE­YEAR TERMS.

(b)  THE STATE PERSONNEL DIRECTOR SHALL ESTABLISH ELECTION PROCEDURES FOR THE TOTAL COMPENSATION ADVISORY COUNCIL. NO MORE THAN TWO EMPLOYEES SHALL BE ELECTED FROM ONE DEPARTMENT OR INSTITUTION OF HIGHER EDUCATION. NO EMPLOYEE, AS DEFINED IN SECTION 24­50­603 (7), SHALL BE DENIED THE RIGHT TO SEEK ELECTION TO AND SERVE ON THE TOTAL COMPENSATION ADVISORY COUNCIL.

(c)  NOTHING IN THIS SUBSECTION (3) SHALL AFFECT THE TOTAL COMPENSATION ADVISORY COUNCIL EXISTING AS OF THE EFFECTIVE DATE OF THIS SUBSECTION (3) OR THE TERMS OF THE MEMBERS SERVING ON THE COUNCIL AS OF THE EFFECTIVE DATE OF THIS SUBSECTION (3).

(4)  Annual total compensation survey. (a)  THE STATE PERSONNEL DIRECTOR SHALL ESTABLISH TECHNICALLY AND PROFESSIONALLY SOUND SURVEY METHODOLOGIES TO DETERMINE PREVAILING TOTAL COMPENSATION PRACTICES, LEVELS, AND COSTS. THE ANNUAL TOTAL COMPENSATION SURVEY, BASED ON AN ANALYSIS OF SURVEYS CONDUCTED BY PUBLIC OR PRIVATE ORGANIZATIONS, SHALL INCLUDE A FAIR SAMPLE OF PUBLIC AND PRIVATE SECTOR EMPLOYERS AND JOBS, INCLUDING AREAS OUTSIDE THE DENVER METROPOLITAN AREA. ANY SURVEYS PROVIDED ON A CONFIDENTIAL BASIS SHALL NOT BE REVEALED EXCEPT TO THE STATE AUDITOR'S OFFICE AND THE PRIVATE FIRM CONDUCTING THE AUDIT REQUIRED IN PARAGRAPH (b) OF THIS SUBSECTION (4).

(b)  THE PURPOSE OF THE ANNUAL TOTAL COMPENSATION REPORT SHALL BE TO REFLECT ALL ADJUSTMENTS NECESSARY TO MAINTAIN THE TOTAL COMPENSATION STRUCTURE FOR THE UPCOMING FISCAL YEAR. THE TOTAL COMPENSATION SURVEY, INCLUDING ANY SUPPLEMENTAL SALARY OR BENEFITS SURVEY, SHALL NOT BE APPEALABLE. THE STATE AUDITOR IS RESPONSIBLE FOR CONTRACTING WITH A PRIVATE FIRM TO CONDUCT A PERFORMANCE AUDIT OF THE PROCEDURES AND APPLICATION OF DATA, INCLUDING ADJUSTMENTS TO JOB RATES. SUCH AUDITS SHALL BE CONDUCTED EVERY TWO YEARS, BEGINNING JANUARY 1, 1999, AND A REPORT SHALL BE SUBMITTED TO THE GOVERNOR AND GENERAL ASSEMBLY BY JUNE 30, 1999, AND EVERY OTHER YEAR THEREAFTER.

(c)  THE STATE PERSONNEL DIRECTOR SHALL SUBMIT THE FINAL TOTAL COMPENSATION RECOMMENDATIONS AND ESTIMATED COSTS TO THE GOVERNOR AND THE JOINT BUDGET COMMITTEE OF THE GENERAL ASSEMBLY BY DECEMBER 1 OF EACH YEAR AND SHALL PUBLISH SUCH REPORT. THE RECOMMENDED CHANGES TO SALARIES SHALL BE EFFECTIVE ON JULY 1 OF THE ENSUING FISCAL YEAR UNLESS OTHERWISE ORDERED BY THE GOVERNOR ACTING PURSUANT TO SECTION 24­50­109.5. SUBJECT TO THE PROVISIONS OF SECTION 24­50­609, THE GENERAL ASSEMBLY SHALL APPROVE ANY RECOMMENDED CHANGES TO STATUTORY BENEFITS.

(5)  Pay plans. (a)  THE STATE PERSONNEL DIRECTOR SHALL ESTABLISH PAY PLANS AS TECHNICALLY AND PROFESSIONALLY NECESSARY AND ANY PROCEDURES AND DIRECTIVES REQUIRED TO IMPLEMENT THE STATE'S PREVAILING TOTAL COMPENSATION PHILOSOPHY AS DEFINED IN SUBSECTION (1) OF THIS SECTION.

(b)  NO EMPLOYEE IN ANY PAY PLAN MAY EXCEED AN ESTABLISHED MAXIMUM SALARY AMOUNT FOR SUCH PLAN. THE MAXIMUM MONTHLY SALARY FOR ANY EMPLOYEE WHOSE POSITION IS ASSIGNED TO A PAY PLAN IN EFFECT PRIOR TO JULY 1, 1991, SHALL BE FIVE THOUSAND SEVEN HUNDRED NINETY­FOUR DOLLARS; EXCEPT THAT CLASSES IN THE MEDICAL PAY PLAN REQUIRING LICENSURE AS A PHYSICIAN OR DENTIST SHALL BE SUBJECT TO A MAXIMUM MONTHLY SALARY OF SEVEN THOUSAND EIGHT HUNDRED TWELVE DOLLARS. BEGINNING MAY 1, 1994, AND FOR EACH FISCAL YEAR THEREAFTER, SUCH AMOUNTS SHALL BE ADJUSTED BY THE STATE PERSONNEL DIRECTOR IN ACCORDANCE WITH THE CHANGE IN THE CONSUMER PRICE INDEX FOR THE DENVER­BOULDER METROPOLITAN STATISTICAL AREA FOR THE PRECEDING CALENDAR YEAR OR THE PERCENTAGE INCREASE IN STATE GENERAL FUND APPROPRIATIONS IN RELATION TO SUCH APPROPRIATIONS FOR THE PRECEDING FISCAL YEAR, WHICHEVER IS LESS.

(c)  THE SENIOR EXECUTIVE SERVICE SHALL BE LIMITED TO ONE HUNDRED TWENTY­FIVE POSITIONS. THE STATE PERSONNEL DIRECTOR SHALL ESTABLISH CRITERIA FOR INCLUSION IN THE SENIOR EXECUTIVE SERVICE AND SHALL REVIEW EACH NOMINATED POSITION BEFORE IT IS PLACED IN THE PAY PLAN FOR THE SENIOR EXECUTIVE SERVICE. THE HEAD OF THE DEPARTMENT OR AGENCY OR STATE AUDITOR FOR EMPLOYEES OF THE STATE AUDITOR'S OFFICE, SHALL MAKE APPOINTMENTS TO THE SENIOR EXECUTIVE SERVICE BASED ON COMPETITIVE SELECTION AND IS RESPONSIBLE FOR THE MANAGEMENT OF THE EMPLOYEES IN SUCH PLAN. IF A STATE PERSONNEL SYSTEM EMPLOYEE COMPETES FOR AND IS APPOINTED TO A POSITION IN THE SENIOR EXECUTIVE SERVICE, THE EMPLOYEE SHALL FORFEIT THE RIGHT TO RETURN TO A POSITION OUTSIDE THE SENIOR EXECUTIVE SERVICE WITHOUT COMPETING FOR AN OPEN POSITION. ANY PERSON APPOINTED DIRECTLY TO THE SENIOR EXECUTIVE SERVICE SHALL HAVE NO RIGHT TO A POSITION OUTSIDE THE SENIOR EXECUTIVE SERVICE EXCEPT THROUGH COMPETITION FOR AN OPEN POSITION.

(d)  IN THE PAY PLANS FOR MEDICAL AND THE SENIOR EXECUTIVE SERVICE, THERE SHALL BE NO STEPS IN THE PAY RANGE OR ANNIVERSARY­BASED MERIT INCREASES. THE MAXIMUM MONTHLY SALARY FOR THE SENIOR EXECUTIVE SERVICE PLAN SHALL NOT EXCEED THE MAXIMUM MONTHLY SALARY IN THE TRADITIONAL CLASSIFIED SERVICE BY MORE THAN TWENTY­FIVE PERCENT. THE SALARIES IN SUCH PAY PLANS SHALL BE BASED ON THE NEGOTIATION OF AN ANNUAL CONTRACT BETWEEN THE EMPLOYEE AND THE DEPARTMENT HEAD OR STATE AUDITOR, WHEN APPROPRIATE, AND THE AMOUNT OF SUCH SALARIES MAY INCREASE, DECREASE, OR REMAIN UNCHANGED FROM YEAR TO YEAR. ANY EMPLOYEE DISMISSED FOR FAILURE TO PERFORM UNDER SUCH CONTRACT MAY ONLY APPEAL DIRECTLY TO THE STATE PERSONNEL BOARD.

(6)  Job evaluation. (a)  SYSTEM MAINTENANCE STUDIES INVOLVING THE ASSIGNMENT OF CLASSES TO DIFFERENT PAY GRADES SHALL BE INCORPORATED INTO THE ANNUAL TOTAL COMPENSATION REQUEST REPORTED TO THE GENERAL ASSEMBLY AND SHALL BE EFFECTIVE ON JULY 1 OF EACH YEAR UNLESS OTHERWISE ORDERED BY THE GOVERNOR ACTING PURSUANT TO SECTION 24­50­109.5.

(b) (I)  THE STATE PERSONNEL DIRECTOR SHALL ALLOCATE INDIVIDUAL POSITIONS TO THE PROPER CLASSES BASED ON AN OBJECTIVE EVALUATION OF THE JOB ASSIGNMENT.

(II)  ANY EMPLOYEE DIRECTLY AFFECTED BY THIS PARAGRAPH (b) MAY FILE A WRITTEN APPEAL WITH THE STATE PERSONNEL DIRECTOR WITHIN TEN DAYS OF RECEIPT OF THE NOTICE OF ALLOCATION OF POSITIONS. THE STATE PERSONNEL DIRECTOR, OR DESIGNEE, SHALL REVIEW THE APPEAL IN SUMMARY FASHION ON THE BASIS OF WRITTEN MATERIAL THAT MAY BE SUPPLEMENTED BY ORAL ARGUMENT AT THE SOLE DISCRETION OF THE DIRECTOR OR DESIGNEE. AT THE DIRECTOR'S DISCRETION, AN ADVISORY PANEL OF QUALIFIED JOB EVALUATORS MAY BE CONVENED TO ASSIST THE DIRECTOR IN MAKING A DECISION. THE DIRECTOR SHALL ISSUE A WRITTEN DECISION WITHIN NINETY CALENDAR DAYS AFTER THE RECEIPT OF A TIMELY APPEAL. IF THE DIRECTOR DOES NOT ISSUE A DECISION WITHIN NINETY CALENDAR DAYS AFTER RECEIPT OF A TIMELY APPEAL, THE ORIGINAL ALLOCATION DECISION SHALL BE FINAL. A DECISION MAY BE OVERTURNED ONLY IF THE DIRECTOR FINDS IT TO HAVE BEEN ARBITRARY, CAPRICIOUS, OR CONTRARY TO RULE OR LAW. THE STATE PERSONNEL DIRECTOR SHALL ESTABLISH A PROCESS FOR THE TIMELY RESOLUTION OF APPEALS WITHIN THE NINETY­DAY PERIOD AND THE CRITERIA FOR SELECTION OF AND METHOD OF SERVICE UPON AN ADVISORY PANEL. ANY DECISION SHALL BE SUBJECT TO JUDICIAL REVIEW PURSUANT TO SECTION 24-4-106.

(7)  Leaves. (a)  NO EMPLOYEE SHALL EARN MORE THAN TEN DAYS OF SICK LEAVE PER FISCAL YEAR. NO EMPLOYEE MAY RETAIN ACCUMULATED SICK LEAVE IN EXCESS OF FORTY­FIVE DAYS AT THE END OF ANY FISCAL YEAR; EXCEPT THAT ANY EMPLOYEE WHO HAD ACCUMULATED SICK LEAVE PRIOR TO JULY 1, 1988, SHALL RETAIN SUCH LEAVE AND MAY ACCUMULATE A MAXIMUM OF FORTY­FIVE ADDITIONAL DAYS. ANY EXCESS ACCUMULATION MAY BE CONVERTED TO ANNUAL LEAVE AT THE RATE OF FIVE DAYS OF SICK LEAVE TO ONE DAY OF ANNUAL LEAVE UP TO A TOTAL OF TWO DAYS PER FISCAL YEAR. A MEDICAL CERTIFICATE FORM FROM A HEALTH CARE PROVIDER SHALL BE REQUIRED FOR ABSENCES OF MORE THAN THREE FULL CONSECUTIVE WORKING DAYS OR THE USE OF SICK LEAVE SHALL BE DENIED.

(b)  THE PROCEDURES OF THE STATE PERSONNEL DIRECTOR SHALL PROVIDE THAT NO MORE THAN TWO DAYS PER FISCAL YEAR OF PAID LEAVE SHALL BE GRANTED FOR ORGAN, TISSUE, OR BONE MARROW DONATION FOR TRANSPLANTS. SUCH LEAVE MAY NOT BE ACCUMULATED.

(c)  THE STATE PERSONNEL DIRECTOR MAY ESTABLISH PROCEDURES TO ALLOW THE TRANSFER OF ANNUAL LEAVE BETWEEN EMPLOYEES WHEN ONE EMPLOYEE, OR AN IMMEDIATE FAMILY MEMBER OF SUCH EMPLOYEE, EXPERIENCES A CATASTROPHIC, LIFE THREATENING HEALTH CONDITION. THE RECIPIENT OF ANY ANNUAL LEAVE SHALL HAVE A MINIMUM OF ONE YEAR OF STATE SERVICE AND EXHAUSTED ALL ACCRUED ANNUAL AND SICK LEAVE.

(d)  AN EMPLOYEE CERTIFIED AS A DISASTER SERVICE VOLUNTEER OF THE AMERICAN RED CROSS MAY BE GRANTED PAID LEAVE FOR SPECIALIZED DISASTER RELIEF SERVICES. SUCH LEAVE SHALL NOT EXCEED FIVE DAYS FOR A LOCAL DISASTER OR FIFTEEN DAYS FOR A NATIONAL DISASTER IN A TWELVE­MONTH PERIOD. SUCH LEAVE MAY NOT BE ACCUMULATED. DURING THIS PERIOD OF LEAVE, AN EMPLOYEE SHALL NOT BE DEEMED TO BE AN EMPLOYEE FOR PURPOSES OF THE "WORKER'S COMPENSATION ACT OF COLORADO", AS PROVIDED IN ARTICLES 40 TO 47 OF TITLE 8, C.R.S.

(8)  Payroll. SALARIES FOR POSITIONS IN THE STATE PERSONNEL SYSTEM, EXCEPT FOR HOURLY, OVERTIME, AND SUPPLEMENTAL PURPOSES, SHALL BE PAID ON A MONTHLY BASIS AS OF THE LAST WORKING DAY OF THE MONTH; EXCEPT THAT, FOR STATE PERSONNEL EMPLOYEES IN THE DEPARTMENT OF TRANSPORTATION HIRED BEFORE THE EFFECTIVE DATE OF THIS SECTION, AS AMENDED, SALARIES FOR THE MONTH OF DECEMBER SHALL BE PAID ON OR AS OF THE FIRST WORKING DAY IN JANUARY, UNLESS ANY SUCH EMPLOYEE INFORMS THE CONTROLLER OF THE DEPARTMENT OF TRANSPORTATION OF THE EMPLOYEE'S DESIRE TO BE PAID IN THE SAME MANNER AS OTHER EMPLOYEES IN THE STATE PERSONNEL SYSTEM AS PROVIDED IN THIS SUBSECTION (8), IN WHICH CASE, THE EMPLOYEE SHALL BE PAID IN SUCH MANNER. MONTHLY SALARIES SHALL BE CONVERTED TO ANNUAL SALARY AS THE BASIS FOR CALCULATING AMOUNTS DUE FOR PERIODS OTHER THAN MONTHLY.

(9)  Liability. (a)  EXCEPT FOR GROSS NEGLIGENCE OR FRAUD, NO STATE EMPLOYEE RESPONSIBLE FOR CALCULATING PAY SHALL BE IN ANY MANNER LIABLE FOR OVERPAYMENT OR UNDERPAYMENT OF SALARIES. EMPLOYEES SHALL BE RESPONSIBLE FOR PROMPTLY REPORTING OVERPAYMENT OR UNDERPAYMENT OF THEIR SALARIES.

(b)  NO EMPLOYEE WHOSE SALARY MAY BE INCREASED BY AN ALLOCATION OF THE EMPLOYEE'S POSITION TO A CLASS IN A HIGHER PAY GRADE SHALL HAVE ANY CLAIM AGAINST THE STATE UNLESS THE FINAL ALLOCATION DECISION IS MADE EFFECTIVE MORE THAN ONE YEAR FROM THE TIME THE ALLOCATION REQUEST IS INITIATED BY THE EMPLOYEE OR DEPARTMENT. IN SUCH CASE, THE EMPLOYEE IS ENTITLED TO THE DIFFERENCE BETWEEN THE SALARY OF THE OLD GRADE AND THE NEW SALARY FOR SUCH PERIOD OVER TWELVE MONTHS.

SECTION 2.  Part 1 of article 50 of title 24, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION to read:

24­50­104.5.  Compliance with federal laws. (1)  THE STATE PERSONNEL DIRECTOR SHALL ESTABLISH THE STANDARDS AND PROCESSES NECESSARY FOR THE STATE PERSONNEL SYSTEM TO FULLY COMPLY WITH ALL APPLICABLE FEDERAL EMPLOYMENT LAWS.

(2)  THE STATE PERSONNEL DIRECTOR MAY ESTABLISH AN INTERNAL REVIEW PROCESS OF ALLEGED VIOLATIONS OF SUCH FEDERAL LAWS. SUCH A REVIEW SHALL BE CONDUCTED IN SUMMARY FASHION ON THE BASIS OF WRITTEN MATERIAL. THE STATE PERSONNEL DIRECTOR SHALL ISSUE A WRITTEN DECISION WITHIN NINETY DAYS AFTER RECEIPT OF THE WRITTEN COMPLAINT. ANY AGGRIEVED PARTY MAY ALSO SEEK JUDICIAL REVIEW AS SPECIFIED BY THE APPLICABLE LAW.

SECTION 3.  12­34­101.5, Colorado Revised Statutes, 1991 Repl. Vol., is amended to read:

12­34­101.5.  Legislative declaration. The general assembly hereby finds and declares that the use of anatomical gifts, including the donation of organs or tissue, for the purpose of transplantation is of great interest to the well­being of the citizens of this state and may save or prolong the life or improve the health of extremely ill and dying persons. The general assembly therefore finds that it is in the best interests of the state to encourage such donations for transplants and to encourage the use of the authorization for anatomical gifts required to be printed on the back of drivers' licenses and identification cards indicating that the signer has consented to the donation of organs or tissue and indicating, if known, the results of HLA typing for the purpose of matching such anatomical gifts for transplants. The general assembly further finds that it is beneficial to the state for employers to encourage such donations by allowing employees time off for the purpose of making such donations and, to that end, that it is necessary to direct that the state personnel board DIRECTOR, consistent with section 24­50­104 (9) (c) (7) (b), C.R.S., adopt a rule PROCEDURE that provides for two days per year of paid leave for employees in the state personnel system for the purpose of donating organs, tissue, or bone marrow for a transplant.

SECTION 4.  24­50­603 (4), Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended to read:

24­50­603.  Definitions. As used in this part 6, unless the context otherwise requires:

(4)  "Council" means the total compensation advisory council established pursuant to section 24­50­104 (2) (c) (II) (3).

SECTION 5.  Repeal.  24­50­106, 24­50­107, 24­50­108, 24­50­119, and 24­50­120.5, Colorado Revised Statutes, 1988 Repl. Vol., as amended, are repealed.

SECTION 6. No appropriation. The general assembly has determined that this act can be implemented within existing appropriations, and therefore no separate appropriation of state moneys is necessary to carry out the purposes of this act.

SECTION 7.   Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.