First Substitute S.B. 5004

Representative Eric K. Hutchings proposes the following substitute bill:

1 ANNUAL LEAVE CONVERSION
2 2002 FIFTH SPECIAL SESSION
3 STATE OF UTAH
4 Sponsor: Beverly Ann Evans
5 This act modifies code provisions relating to state officer and employee benefits. This act
6 conditions the conversion of annual leave to a deferred compensation plan upon specific
7 funding from the Legislature. This act has an immediate effective date.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 67-19-12.9, as enacted by Chapter 339, Laws of Utah 2001
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 67-19-12.9 is amended to read:
13 67-19-12.9. Accumulated annual leave -- Annual conversion to deferred
14 compensation plan.
15 (1) [The] If the Legislature in an annual appropriations act with accompanying intent
16 language specifically authorizes this use, the department shall implement a program that allows
17 an employee, in [each] the approved calendar year, to elect to convert up to 20 hours of annual
18 leave, in whole hour increments not to exceed $250 in value, into any of the employee's designated
19 deferred compensation accounts that:
20 (a) are sponsored by the Utah State Retirement Board; and
21 (b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
22 (2) Any annual leave converted under Subsection (1) shall be:
23 (a) converted into the employee's deferred compensation account at the employee's pay rate
24 at the time of conversion; and
25 (b) calculated in the last pay period of the leave year as determined by the Division of

26 Finance.
27 (3) An employee may not convert hours of accrued annual leave to the extent that any
28 hours converted would:
29 (a) exceed the maximum amount authorized by the Internal Revenue Code for [each] the
30 calendar year; or
31 (b) cause the employee's balance of accumulated annual leave to drop below the maximum
32 accrual limit provided by rule.
33 Section 2. Effective date.
34 If approved by two-thirds of all the members elected to each house, this act takes effect
35 upon approval by the governor, or the day following the constitutional time limit of Utah
36 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
37 date of veto override.