S.B. 5004 Enrolled

ANNUAL LEAVE CONVERSION
2002 FIFTH SPECIAL SESSION
STATE OF UTAH
Sponsor: Beverly Ann Evans
This act modifies code provisions relating to state officer and employee benefits. This act
conditions the conversion of annual leave to a deferred compensation plan upon specific
funding from the Legislature. This act has an immediate effective date.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
67-19-12.9, as enacted by Chapter 339, Laws of Utah 2001
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 67-19-12.9 is amended to read:
67-19-12.9. Accumulated annual leave -- Annual conversion to deferred
compensation plan.
(1) [The] If the Legislature in an annual appropriations act with accompanying intent
language specifically authorizes and fully funds the estimated costs of this use, the department
shall implement a program that allows an employee, in [each] the approved calendar year, to elect
to convert up to 20 hours of annual leave, in whole hour increments not to exceed $250 in value,
into any of the employee's designated deferred compensation accounts that:
(a) are sponsored by the Utah State Retirement Board; and
(b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
(2) Any annual leave converted under Subsection (1) shall be:
(a) converted into the employee's deferred compensation account at the employee's pay rate
at the time of conversion; and
(b) calculated in the last pay period of the leave year as determined by the Division of
Finance.
(3) An employee may not convert hours of accrued annual leave to the extent that any
hours converted would:
(a) exceed the maximum amount authorized by the Internal Revenue Code for [each] the

calendar year; or
(b) cause the employee's balance of accumulated annual leave to drop below the maximum
accrual limit provided by rule.
Section 2. Effective date.
If approved by two-thirds of all the members elected to each house, this act takes effect upon
approval by the governor, or the day following the constitutional time limit of Utah Constitution
Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto
override.

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