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H.B. 327

             1     

PUBLIC EMPLOYER BENEFIT PLANS

             2     
2006 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: LaVar Christensen

             5     
Senate Sponsor: David L. Thomas

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill regulates the benefit plans that may be offered by a public employer.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides definitions;
             13          .    allows a public employer to offer employee benefit plans that cover its employees,
             14      eligible retirees, and their dependents;
             15          .    allows a public employer to offer optional supplemental benefit plans to cover
             16      additional persons if the supplemental benefit:
             17              .    is specifically approved by the public employer's legislative body or governing
             18      board;
             19              .    has its costs entirely paid by employee or eligible retiree contributions;
             20              .    does not have any of its costs paid by public employer contributions; and
             21              .    does not receive funding from a public fund of the state or its political
             22      subdivisions; and
             23          .    supplemental benefit plans may not be established or offered through an order or
             24      action of a public employer's chief executive officer.
             25      Monies Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          None
             29      Utah Code Sections Affected:
             30      ENACTS:
             31          11-42-101, Utah Code Annotated 1953
             32          11-42-102, Utah Code Annotated 1953
             33          11-42-103, Utah Code Annotated 1953
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 11-42-101 is enacted to read:
             37     
CHAPTER 42. PUBLIC EMPLOYER BENEFIT PLANS ACT

             38          11-42-101. Title.
             39          This chapter is known as the "Public Employer Benefit Plans Act."
             40          Section 2. Section 11-42-102 is enacted to read:
             41          11-42-102. Definitions.
             42          As used in this chapter:
             43          (1) "Dependents" means an employee's or eligible retiree's:
             44          (a) current spouse; and
             45          (b) children, including stepchildren and legally adopted children.
             46          (2) "Employee benefit plans" means any group health, dental, medical, disability, life
             47      insurance, Medicare supplement, conversion coverage, cafeteria, flex plans, or other benefit
             48      programs offered by a public employer.
             49          (3) "Public employer" means the state and its political subdivisions, including counties,
             50      municipalities, institutions of higher education, school districts and charter schools, special
             51      districts, and public corporations.
             52          Section 3. Section 11-42-103 is enacted to read:
             53          11-42-103. Benefit plans -- Eligibility -- Supplemental benefits.
             54          (1) A public employer may offer employee benefit plans to its employees and eligible
             55      retirees that cover its:
             56          (a) employees;
             57          (b) eligible retirees; and
             58          (c) the dependents of employees and eligible retirees.


             59          (2) A public employer may also offer optional supplemental benefit plans that cover a
             60      person not described under Subsection (1) if the benefit:
             61          (a) is specifically approved by:
             62          (i) a statute enacted by the Legislature;
             63          (ii) an ordinance enacted by the legislative body of a county or municipality; or
             64          (iii) a resolution approved by the governing board of an institution of higher education,
             65      school district, charter school, special district, or other political subdivision of the state;
             66          (b) has its costs entirely paid by employee or eligible retiree contributions;
             67          (c) does not have any of its costs paid by public employer contributions; and
             68          (d) does not receive funding from tax revenues or other public funds of the state or its
             69      political subdivisions.
             70          (3) Supplemental benefit plans that cover a person not described under Subsection (1)
             71      may not be established or offered through an order or action of a public employer's chief
             72      executive officer.




Legislative Review Note
    as of 1-25-06 8:04 AM


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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