First Substitute H.B. 68

Representative James R. Gowans proposes to substitute the following bill:

1 ANNUAL LEAVE CONVERSION FOR STATE EMPLOYEES
2 2001 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: James R. Gowans
5 This act enacts code provisions relating to state officer and employee benefits. This act
6 enacts certain provisions regulating conversion of annual leave to a deferred compensation
7 plan.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 ENACTS:
10 67-19-12.9, Utah Code Annotated 1953
11 Be it enacted by the Legislature of the state of Utah:
12 67-19-12.9. Accumulated annual leave -- Annual conversion to deferred
13 compensation plan.
14 (1) The department shall implement a program that allows an employee, in each calendar
15 year, to elect to convert up to 20 hours of annual leave, in whole hour increments not to exceed
16 $250 in value, into any of the employee's designated deferred compensation accounts that:
17 (a) are sponsored by the Utah State Retirement Board; and
18 (b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
19 (2) Any annual leave converted under Subsection (1) shall be:
20 (a) converted into the employee's deferred compensation account at the employee's pay rate
21 at the time of conversion; and
22 (b) calculated in the last pay period of the leave year as determined by the Division of
23 Finance.
24 (3) An employee may not convert hours of accrued annual leave to the extent that any
25 hours converted would:

26 (a) exceed the maximum amount authorized by the Internal Revenue Code for each
27 calendar year; or
28 (b) cause the employee's balance of accumulated annual leave to drop below the maximum
29 accrual limit provided by rule.