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H.B. 315

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STATE AND LOCAL GOVERNMENT

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SEVERANCE PACKAGE AUTHORITY

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1998 GENERAL SESSION

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STATE OF UTAH

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Sponsor: Gary F. Cox

6    AN ACT RELATING TO PUBLIC OFFICERS; PROVIDING RESTRICTIONS ON
7    SEVERANCE PAY TO OFFICERS AND EMPLOYEES OF GOVERNMENTAL ENTITIES.
8    This act affects sections of Utah Code Annotated 1953 as follows:
9    ENACTS:
10         52-5-101, Utah Code Annotated 1953
11         52-5-102, Utah Code Annotated 1953
12    Be it enacted by the Legislature of the state of Utah:
13        Section 1. Section 52-5-101 is enacted to read:
14    
CHAPTER 5. COMPENSATION

15         52-5-101. Definitions.
16        As used in this chapter:
17        (1) "Employee" includes a governmental entity's officers and employees.
18        (2) "Governmental entity" means:
19        (a) the entities included in the definition of "governmental entity" under Subsection
20    36-21-1(1); and
21        (b) the Legislature.
22        (3) (a) "Severance pay" means money or other form of remuneration paid or given to an
23    employee at the time of termination of employment with a governmental entity.
24        (b) "Severance pay" does not include h :
24a         (i) h accrued:
25         h [ (i) ] (A) h vacation pay;
lilac-February 27, 1998


26         h [ (ii) ] (B) h compensatory h LEAVE h pay; or
27         h [ (iii) ] (C) h sick pay h ;
27a          (ii) FUNDS IN A RETIREMENT OR PENSION PLAN THAT HAVE ACCUMULATED OVER THE
27b     COURSE OF THE EMPLOYEE'S EMPLOYMENT; OR
27c         (iii) REMUNERATION PAID TO AN EMPLOYEE IN SETTLEMENT OF A LIABILITY CLAIM OR
27d     LAWSUIT THAT DOES NOT INVOLVE THE ISSUE OF WHETHER THE EMPLOYEE IS ENTITLED TO
27e     SEVERANCE PAY h .























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lilac-February 27, 1998


1        Section 2. Section 52-5-102 is enacted to read:
2         52-5-102. Limitation on severance pay.
3        A governmental entity may not grant severance pay to an employee that exceeds the
4    amount of the regular salary or wage received by the employee during the employee's last six
5    months of employment.




Legislative Review Note
    as of 1-20-98 3:46 PM


A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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