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H.B. 346

This document includes House Committee Amendments incorporated into the bill on Thu, Feb 2, 2006 at 1:04 PM by ddonat. -->              1     

STATE EMPLOYEE RETIREMENT BENEFITS

             2     
AMENDMENTS

             3     
2006 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: John Dougall

             6     
Senate Sponsor: Sheldon L. Killpack

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah State Retirement and Insurance Benefit Act adding certain
             11      positions that may be excluded from membership in the Public Employees'
             12      Contributory Retirement System and the Public Employees' Noncontributory
             13      Retirement System.
             14      Highlighted Provisions:
             15          This bill:
             16          .    allows the following at-will employees to be excluded, upon written request, from
             17      coverage under the Public Employees' Contributory Retirement System and the
             18      Public Employees' Noncontributory Retirement System:
             19              .    a person appointed by the speaker of the House of Representatives, the House of
             20      Representatives minority leader, the president of the Senate, or the Senate
             21      minority leader; or
             22              .    an employee of the Governor's Office of Economic Development who has been
             23      hired directly from a position not covered by a system; and
             24          .    makes technical changes.
             25      Monies Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28           H. [ None ] This bill provides an immediate effective date. .H
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          49-12-203, as last amended by Chapter 116, Laws of Utah 2005
             32          49-13-203, as last amended by Chapter 116, Laws of Utah 2005
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 49-12-203 is amended to read:
             36           49-12-203. Exclusions from membership in system.
             37          (1) The following employees are not eligible for service credit in this system:
             38          (a) An employee whose employment status is temporary in nature due to the nature or
             39      the type of work to be performed, provided that:
             40          (i) if the term of employment exceeds six months and the employee otherwise qualifies
             41      for service credit in this system, the participating employer shall report and certify to the office
             42      that the employee is a regular full-time employee effective the beginning of the seventh month
             43      of employment; or
             44          (ii) if an employee, previously terminated prior to being eligible for service credit in
             45      this system is reemployed within three months of termination by the same participating
             46      employer, the participating employer shall report and certify that the member is a regular
             47      full-time employee when the total of the periods of employment equals six months and the
             48      employee otherwise qualifies for service credit in this system.
             49          (b) (i) A current or future employee of a two-year or four-year college or university
             50      who holds, or is entitled to hold, under Section 49-12-204 , a retirement annuity contract with
             51      the Teachers' Insurance and Annuity Association of America or with any other public or private
             52      system, organization, or company during any period in which required contributions based on
             53      compensation have been paid on behalf of the employee by the employer.
             54          (ii) The employee, upon cessation of the participating employer contributions, shall
             55      immediately become eligible for service credit in this system.
             56          (c) An employee serving as an exchange employee from outside the state.
             57          (d) An executive department head of the state, a member of the State Tax Commission,
             58      the Public Service Commission, and a member of a full-time or part-time board or commission


             59      who files a formal request for exemption.
             60          (e) An employee of the Department of Workforce Services who is covered under
             61      another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
             62          (2) Upon filing a written request for exemption with the office, the following
             63      employees shall be exempt from coverage under this system:
             64          (a) a full-time student or the spouse of a full-time student and individuals employed in
             65      a trainee relationship;
             66          (b) an elected official;
             67          (c) an executive department head of the state or a legislative director, senior executive
             68      employed by the governor's office, a member of the State Tax Commission, a member of the
             69      Public Service Commission, and a member of a full-time or part-time board or commission;
             70      [and]
             71          (d) an at-will employee who:
             72          (i) is a person appointed by the speaker of the House of Representatives, the House of
             73      Representatives minority leader, the president of the Senate, or the Senate minority leader; or
             74          (ii) is an employee of the Governor's Office of Economic Development who has been
             75      hired directly from a position not covered by a system; and
             76          [(d)] (e) a person appointed as a city manager or chief city administrator or another
             77      person employed by a municipality, county, or other political subdivision, who is not entitled to
             78      merit or civil service protection.
             79          (3) (a) Each participating employer shall prepare a list designating those positions
             80      eligible for exemption under Subsection (2).
             81          (b) An employee may not be exempted unless they are employed in a position
             82      designated by the participating employer.
             83          (4) (a) In accordance with this section, a municipality, county, or political subdivision
             84      may not exempt more than 50 positions or a number equal to 10% of the employees of the
             85      municipality, county, or political subdivision whichever is lesser.
             86          (b) A municipality, county, or political subdivision may exempt at least one regular
             87      full-time employee.
             88          (5) Each participating employer shall:
             89          (a) file employee exemptions annually with the office; and


             90          (b) update the employee exemptions in the event of any change.
             91          (6) The office may make rules to implement this section.
             92          Section 2. Section 49-13-203 is amended to read:
             93           49-13-203. Exclusions from membership in system.
             94          (1) The following employees are not eligible for service credit in this system:
             95          (a) An employee whose employment status is temporary in nature due to the nature or
             96      the type of work to be performed, provided that:
             97          (i) if the term of employment exceeds six months and the employee otherwise qualifies
             98      for service credit in this system, the participating employer shall report and certify to the office
             99      that the employee is a regular full-time employee effective the beginning of the seventh month
             100      of employment; and
             101          (ii) if an employee, previously terminated prior to becoming eligible for service credit
             102      in this system, is reemployed within three months of termination by the same participating
             103      employer, the participating employer shall report and certify to the office that the member is a
             104      regular full-time employee when the total of the periods of employment equals six months and
             105      the employee otherwise qualifies for service credit in this system.
             106          (b) (i) A current or future employee of a two-year or four-year college or university
             107      who holds, or is entitled to hold, under Section 49-13-204 , a retirement annuity contract with
             108      the Teachers' Insurance and Annuity Association of America or with any other public or private
             109      system, organization, or company during any period in which required contributions based on
             110      compensation have been paid on behalf of the employee by the employer.
             111          (ii) The employee, upon cessation of the participating employer contributions, shall
             112      immediately become eligible for service credit in this system.
             113          (c) An employee serving as an exchange employee from outside the state.
             114          (d) An executive department head of the state or a legislative director, senior executive
             115      employed by the governor's office, a member of the State Tax Commission, a member of the
             116      Public Service Commission, and a member of a full-time or part-time board or commission
             117      who files a formal request for exemption.
             118          (e) An employee of the Department of Workforce Services who is covered under
             119      another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
             120          (2) Upon filing a written request for exemption with the office, the following


             121      employees shall be exempt from coverage under this system:
             122          (a) a full-time student or the spouse of a full-time student and individuals employed in
             123      a trainee relationship;
             124          (b) an elected official;
             125          (c) an executive department head of the state or a legislative director, senior executive
             126      employed by the governor's office, a member of the State Tax Commission, a member of the
             127      Public Service Commission, and a member of a full-time or part-time board or commission;
             128      [and]
             129          (d) an at-will employee who:
             130          (i) is a person appointed by the speaker of the House of Representatives, the House of
             131      Representatives minority leader, the president of the Senate, or the Senate minority leader; or
             132          (ii) is an employee of the Governor's Office of Economic Development who has been
             133      hired directly from a position not covered by a system; and
             134          [(d)] (e) a person appointed as a city manager or chief city administrator or another
             135      person employed by a municipality, county, or other political subdivision, who is not entitled to
             136      merit or civil service protection.
             137          (3) (a) Each participating employer shall prepare a list designating those positions
             138      eligible for exemption under Subsection (2).
             139          (b) An employee may not be exempted unless they are employed in a position
             140      designated by the participating employer.
             141          (4) (a) In accordance with this section, a municipality, county, or political subdivision
             142      may not exempt more than 50 positions or a number equal to 10% of the employees of the
             143      municipality, county, or political subdivision, whichever is lesser.
             144          (b) A municipality, county, or political subdivision may exempt at least one regular
             145      full-time employee.
             146          (5) Each participating employer shall:
             147          (a) file employee exemptions annually with the office; and
             148          (b) update the employee exemptions in the event of any change.
             149          (6) The office may make rules to implement this section.
             149a           H. Section 3. Effective date.
             149b          If approved by two-thirds of all the members elected to each house, this bill takes effect
             149c      upon approval by the governor, or the day following the constitutional time limit of Utah
             149d      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             149e      the date of veto override. .H





Legislative Review Note
    as of 1-26-06 6:10 PM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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