H.B. 350

1

CLASSIFICATION OF STATE EMPLOYEES
2 FOR INSURANCE PURPOSES
3 2001 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Jack A. Seitz
6 This act modifies the Utah State Retirement Act by expanding eligibility for participation
7 in the group insurance program. This act modifies the group insurance program's risk
8 pools. This act takes effect on July 1, 2001.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 49-8-203, as last amended by Chapter 360, Laws of Utah 1998
12 49-8-204, as last amended by Chapter 360, Laws of Utah 1998
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 49-8-203 is amended to read:
15 49-8-203. Eligibility for participation in program -- Optional for certain groups.
16 (1) As used in this section, "political subdivision" includes an entity that:
17 (a) receives at least 70% of its budgetary funds from appropriations of the Legislature;
18 (b) requires approval of the Legislature for its employees' cost-of-living adjustments; and
19 (c) if governed by a board, has its board members appointed by an elected state or county
20 official.
21 [(1)] (2) All employers of the state, its educational institutions, and political subdivisions
22 are eligible to participate in this program, but this section does not require political subdivisions,
23 school districts, or institutions of higher education, including technical colleges, to participate in
24 the program.
25 [(2)] (3) The Department of Health may participate in this program for the purpose of
26 providing program benefits to children enrolled in the Utah Children's Health Insurance Program
27 created in Title 26, Chapter 40, if the provisions in Subsection 26-40-110 (4) occur. If the

28 Department of Health participates in the program under the provisions of this Subsection [(2)] (3),
29 all insurance risk associated with the Children's Health Insurance Program shall be the
30 responsibility of the Department of Health and not the group insurance division or the retirement
31 office.
32 Section 2. Section 49-8-204 is amended to read:
33 49-8-204. Group insurance division -- Establishment of separate risk pools - Rules
34 governing admission to program.
35 The group insurance division shall establish:
36 (1) for purposes of providing the benefits permitted by this chapter, separate risk pools for:
37 (a) state employees[,] and political subdivisions described in Subsection 49-8-203 (1);
38 (b) political subdivisions, except those described in Subsection 49-8-203 (1); and[,]
39 (c) if applicable, children enrolled in the Utah Children's Health Insurance Program,
40 created in Title 26, Chapter 40[, for purposes of providing the benefits permitted by this chapter];
41 and
42 (2) rules and procedures governing the admission of political subdivisions to the program.
43 Section 3. Effective date.
44 This act takes effect on July 1, 2001.




Legislative Review Note
as of 1-31-01 3:01 PM

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

Office of Legislative Research and General Counsel