H.B. 315

1

STATE AND LOCAL GOVERNMENT
2 SEVERANCE PACKAGE AUTHORITY
3 1998 GENERAL SESSION
4 STATE OF UTAH
5 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 accrued:
25 (i) vacation pay;
26 (ii) compensatory pay; or
27 (iii) sick pay.

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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