Layne Palmer had managed NAPA Auto Parts in Tremonton before he was hired to head the state's international trade and diplomacy department. Palmer, whose position paid nearly $60,000 a year, is the father of Jami Palmer, the governor's executive assistant.

Under Huntsman's new nepotism policy, immediate family members of nine senior staff employees cannot be hired for any executive branch position that is a political appointment. The nine employees are: Jason Chaffetz, chief of staff; Chris Roybal, senior economic adviser; spokeswoman Tammy Kikuchi; Neil Ashdown, deputy chief of staff; Legislative Affairs Director Mike Mower; General Counsel Mike Lee; Governor's Office of Planning and Budget Director Richard Ellis; Michele Christiansen, director of the Commission on Criminal and Juvenile Justice; and Jami Palmer.

The Palmers were not in violation of Utah's nepotism policy, which prohibits state employees from directly supervising family members. But the hiring of someone with questionable credentials for such a highly paid job fueled public debate.

Hundreds of such positions - many of which are higher-paying supervisory jobs - exist throughout state government. Layne Palmer's position was one of them.

"Layne entered the system honorably and has performed well in his role," Huntsman said. "In spite of that, we have asked for his resignation to be in compliance with the new policy."

Huntsman said from now on his senior staff must tell him about any immediate family members who apply for any state job - however inconsequential.

"I hold my staff to a higher standard than what is required by law for state employees," Huntsman said in a statement announcing the changes. "This policy will help us avoid any future perception of favoritism."

Tim Chambless, an adjunct assistant professor in the department of political science at the University of Utah, said the appointment of Palmer "stepped over that line of good, ethical judgement."

Huntsman "has done the right thing - he has stepped back and erred on the side of good judgment," Chambless said.

By removing Palmer and changing the state's nepotism policy, he said the governor can put an end to the public debate about Palmer and move on.

Kikuchi said other than Layne Palmer, the governor knows of no others who are in violation of his new nepotism policy.

Palmer, who was the 28th highest-paid worker among 264 people who staffed what used to be the Utah Department of Community and Economic Development, was listed on the state's Web page earlier this year as director of international trade and diplomacy.

After inquiries about Palmer's qualifications, the state changed the Web site to name Palmer as international hosting and diplomacy associate. Chris Roybal, Huntsman's senior economic adviser, said the job involved driving international groups around the city and sending out questionnaires to Utah's 11 foreign trade representatives.

Palmer could not be reached for comment Friday. But Huntsman's spokeswoman said he now works for the Utah Policy Partnership, a private nonprofit partnership that advises Huntsman.

Greg Hopkins of the Utah Policy Partnership said a member of the governor's staff called and asked if the organization, funded by Utah businesses, would hire Palmer. Palmer's duties and salary have not yet been fully determined, he said.

"We're excited to have him here," Hopkins said.

In January, the governor fired nearly three dozen employees of what once was the Utah Department of Community and Economic Development, including five employees of Utah's foreign trade office.

Kikuchi said Friday that the state hopes to hire two foreign trade specialists, one of which will serve as director.

It's official

Utah Gov. Jon Huntsman Jr.'s new nepotism policy for his senior staff:

* The governor prohibits the hiring of any politically appointed executive branch employee with immediate family relationship with a member of his senior staff. Immediate family members are spouses, siblings, stepsiblings, siblings-in-law, parents, stepparents, parents-in-law, children, stepchildren and children-in-law.

* Members of the governor's senior staff are required to inform him when an immediate family member is being considered for an executive branch position that is a political appointment, or for any other position over which the governor could wield substantial influence.