Section 1. Section 63G-34-101 is enacted to read:34. Limitations on Government1. General Provisions 63G-34-101. Definitions.Reserved

Section 2. Section 63G-34-201 is enacted to read:2. Limitations on Health Insurance Coverage63G-34-201. Definitions.As used in this part:(1)"Covered individual" means:(a)an employee covered by public insurance; or(b)an individual covered by public insurance as a dependent of an employee.(2)"Employee" means an individual employed by a public employer.(3)"Hormonal transgender treatment" means the same as that term is defined in Section 58-1-603.(4)"Public employee insurance" means group health insurance coverage offered by a public employer to an eligible employee or a dependent of an eligible employee.(5)"Public employer" means an employer that is:(a)state government or a branch of state government;(b)a political subdivision of the state;(c)a subunit of an entity described in Subsection (5)(a) or (b); or(d)a state institution of higher education.

Section 3. Section 63G-34-202 is enacted to read:63G-34-202. Payment for transgender treatment or procedure using public employee insurance prohibited -- Exception -- Coverage for detransitioning.(1)Public employee insurance may not, either directly or indirectly, offer coverage, or be used to pay or otherwise reimburse, for the performance of:(a)except as provided in Subsection (2), hormonal transgender treatment;(b)a primary sex characteristic surgical procedure as defined in Section 58-67-102; or(c)a secondary sex change characteristic surgical procedure as defined in Section 58-67-102.(2)If, on May 5, 2026, a covered individual was undergoing hormonal transgender treatment that was, as of that date, payable or reimbursable under public employee insurance, the covered individual may complete that course of treatment on the same terms of payment or reimbursement that were available for that course of treatment on May 5, 2026, until that course of treatment ends, if the physician overseeing that course of treatment determines that it is medically necessary to continue the course of treatment.(3)If, before May 6, 2026, public employee insurance paid or otherwise reimbursed a person, either directly or indirectly, for the treatment or a surgical procedure described in Subsection (1) that was performed before May 6, 2026, to transition a covered individual from the individual's biological sex, public employee insurance shall offer the same type and amount of coverage for treatment or a surgical procedure to restore that covered individual, to the extent possible, to that covered individual's biological sex.

Section 4. Section 63G-34-203 is enacted to read:63G-34-203. Indemnification.The state shall defend, indemnify, and hold harmless a person acting under color of state law to enforce this part for any claims or damages, including court costs and attorney fees, that:(1)are brought or incurred as a result of this part; and(2)are not covered by the person's insurance policies or by a coverage agreement issued by the State Risk Management Fund.

Section 5. Effective Date.This bill takes effect on May 6, 2026.