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MINUTES OF THE

HOUSE RETIREMENT AND INDEPENDENT ENTITIES STANDING COMMITTEE

Room C450, State Capitol

February 13, 2008


Members Present:    Rep. John Dougall, Chair    
            Rep. Aaron Tilton, Vice Chair
            Rep. Wayne A. Harper
            Rep. Karen W. Morgan
            Rep. Merlynn T. Newbold
            Rep. LaWanna Shurtliff

Members Absent:    Rep. David Clark        
            Rep. Neil A. Hansen
            Rep. Bradley G. Last

Staff Present:    Mr. Benjamin N. Christensen, Policy Analyst
            Mr. Eric Weeks, Associate General Counsel            
            Ms. Barbara Bryner, Committee Secretary
    

Note: A list of visitors and a copy of handouts are filed with the committee minutes.

Mr. John Dougall called the meeting to order at 4:20 p.m.

MOTION:    Rep. Tilton moved to approve the minutes of the February 7, 2008 meeting. The motion passed unanimously with Rep. Harper absent for the vote.

H.B. 280    School Finance Amendments (Rep. Julie Fisher)

Rep. Fisher introduced the bill to the committee.

MOTION:    Rep. Tilton moved to amend the bill as follows:        

1.    Page 8, Line 222 :    

             222      retirement to] provide its own compensation, benefit, and retirement programs.
 

    (5) In setting the value of the weighted pupil unit, the Legislature shall consider a change in the retirement contribution rate.  

        
        The motion passed with Rep. Harper absent for the vote.

Todd Hauber, Associate Superintendent Business Services, State Office of Education, spoke for the bill.


MOTION:    Rep. Newbold moved to pass the bill out favorably as amended. The motion passed with Rep. Shurtliff and Rep. Morgan voting in opposition of the motion and Rep. Harper absent for the vote.

1st Sub. H.B. 94    Public Employees' Retirement - Spousal Election (Rep. L. Shurtliff)

Rep. Shurtliff explained the bill to the committee with the assistance of Ms. Lorraine Brown, Attorney, Gladwell & Associates. Rep. Shurtliff distributed a handout.

MOTION:    Rep. Morgan moved to pass the bill out favorably. The motion passed unanimously with Rep. Harper absent for the vote.

MOTION:    Rep. Morgan moved to have 1st Sub. H.B. 94 placed on the consent calendar. The motion passed unanimously with Rep. Harper absent for the vote.

Rep. Dougall relinquished the Chair to Rep. Tilton.

H.B. 202    Employee Benefit Amendments (Rep. J. Dougall)

Rep. Dougall explained the bill to the committee with the assistance of John Nixon, Director of the Governor's Office of Planning and Budget and Commissioner Steve White, Utah County.

MOTION:    Rep. Tilton moved to amend the bill as follows:


1.    Page 1, Line 25 through Page 2, Line 28 :    

             25          .    
{   allows   }        provides that participating employers may allow       new public safety service employees who are eligible for the Public Safety

             26      Noncontributory Retirement System to elect instead to become a member of the
             27      Public Employees' Noncontributory Retirement System and receive the difference in
             28      cost in their salary; and

2.    Page 15, Lines 431 through 442 :    

             431          (3) (a)
  A participating employer of a public safety service employee may allow the employee to make the election under Subsection (3)(b) if the participating employer:

        (i)    provides notice to the office on forms provided by the office; and
        (ii)    provides the option in a nondiscriminatory manner to each eligible public safety service employee.

    (b)  
     {   A   }        If allowed by the participating employer under Subsection (3)(a), a       public safety service employee who initially enters employment beginning

             432      July 1, 2008 with a participating employer may elect to become a member of:
             433          (i) this system; or
             434          (ii) the Public Employees' Noncontributory Retirement System under Chapter 13,
             435      Public Employees' Noncontributory Retirement Act.
             436          
{   (b)   }        (c)       For a public safety service employee who elects to participate in the Public

             437      Employees' Noncontributory Retirement System, the participating employer shall, in addition
             438      to any other compensation, pay as part of the employee's compensation an amount equal to the
             439      difference in the cost of the two retirement systems, to be calculated as follows:
             440          (i) the amount that the participating employer would be required to pay for the
             441      employee's retirement benefit if the employee was a member of
{   that system   }        the Public Safety Noncontributory Retirement System       based on the

             442      retirement contribution rate under the Public Safety Noncontributory Retirement System;

The motion passed unanimously with Rep. Harper absent for the vote.
The following people spoke for the bill:

    Sheriff Jim Tracy, Utah County Sheriff
    Mr. Scott Duncan, Department of Public Safety
    Mr. Geoffrey Leonard, Utah School Employees Association
    
The following people spoke in opposition the bill:

    Kelly Atkinson, Fraternal Order of Police
    Courtney White, Utah Education Association
    Todd Sutton, Utah Public Employees Association
    Jan Johnson, Utah Alliance of Government Employees

Mr. Dan Andersen, Utah Retirement Systems, spoke to the bill.

MOTION:    Rep. Newbold moved to pass the bill out favorably as amended.

SUBSTITUTE
MOTION:    Rep. Morgan moved to refer the bill to interim study. The motion failed with Rep. Morgan and Rep. Shurtliff voting for the motion.

        The motion to pass the bill out favorably as amended passed with Rep. Morgan and Rep. Shurtliff voting in opposition of the motion.

Rep. Tilton relinquished the Chair back to Rep. Dougall.

MOTION:    Rep. Harper moved to adjourn. The motion passed unanimously and the Chair adjourned the meeting at 5:25 p.m.







                ______________________________________________
                    Rep. John Dougall, Chair