Second Substitute H.B. 377

This document includes House Floor Amendments incorporated into the bill on Mon, Feb 26, 2007 at 9:31 AM by jeyring. -->

Representative John Dougall proposes the following substitute bill:

1 RETIREMENT BENEFIT AMENDMENTS
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John Dougall
5 Senate Sponsor: Curtis S. Bramble
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Utah State Retirement and Insurance Benefit Act by adding
10 certain positions that may be excluded from membership in the Public Employees'
11 Noncontributory Retirement System.
12 Highlighted Provisions:
13 This bill:
14 . allows a person who begins employment on or after July 1, 2007, with the
15 Department of Technology Services to be excluded, upon written request, from
16 coverage under the Public Employees' Noncontributory Retirement System; H. and
17 [ . allows a person who begins employment on or after July 1, 2007, with the
18 Department of Transportation to be excluded, upon written request, from coverage
19 under the Public Employees' Noncontributory Retirement System; and ] .H
20 . makes technical changes.
21 Monies Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 This bill takes effect on July 1, 2007.
25 Utah Code Sections Affected:

26 AMENDS:
27 49-13-203, as last amended by Chapter 143, Laws of Utah 2006
28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 49-13-203 is amended to read:
31 49-13-203. Exclusions from membership in system.
32 (1) The following employees are not eligible for service credit in this system:
33 (a) An employee whose employment status is temporary in nature due to the nature or
34 the type of work to be performed, provided that:
35 (i) if the term of employment exceeds six months and the employee otherwise qualifies
36 for service credit in this system, the participating employer shall report and certify to the office
37 that the employee is a regular full-time employee effective the beginning of the seventh month
38 of employment; and
39 (ii) if an employee, previously terminated prior to becoming eligible for service credit
40 in this system, is reemployed within three months of termination by the same participating
41 employer, the participating employer shall report and certify to the office that the member is a
42 regular full-time employee when the total of the periods of employment equals six months and
43 the employee otherwise qualifies for service credit in this system.
44 (b) (i) A current or future employee of a two-year or four-year college or university
45 who holds, or is entitled to hold, under Section 49-13-204 , a retirement annuity contract with
46 the Teachers' Insurance and Annuity Association of America or with any other public or private
47 system, organization, or company during any period in which required contributions based on
48 compensation have been paid on behalf of the employee by the employer.
49 (ii) The employee, upon cessation of the participating employer contributions, shall
50 immediately become eligible for service credit in this system.
51 (c) An employee serving as an exchange employee from outside the state.
52 (d) An executive department head of the state or a legislative director, senior executive
53 employed by the governor's office, a member of the State Tax Commission, a member of the
54 Public Service Commission, and a member of a full-time or part-time board or commission
55 who files a formal request for exemption.
56 (e) An employee of the Department of Workforce Services who is covered under

57 another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
58 (2) Upon filing a written request for exemption with the office, the following
59 employees shall be exempt from coverage under this system:
60 (a) a full-time student or the spouse of a full-time student and individuals employed in
61 a trainee relationship;
62 (b) an elected official;
63 (c) an executive department head of the state or a legislative director, senior executive
64 employed by the governor's office, a member of the State Tax Commission, a member of the
65 Public Service Commission, and a member of a full-time or part-time board or commission;
66 (d) an at-will employee who:
67 (i) is a person appointed by the speaker of the House of Representatives, the House of
68 Representatives minority leader, the president of the Senate, or the Senate minority leader; or
69 (ii) is an employee of the Governor's Office of Economic Development who has been
70 hired directly from a position not covered by a system; [and]
71 (e) a person appointed as a city manager or chief city administrator or another person
72 employed by a municipality, county, or other political subdivision, who is not entitled to merit
73 or civil service protection; H. and .H
74 (f) a person who begins employment on or after July 1, 2007, with the Department of
75 Technology Services created under Section 63F-1-103 H. [ ; and ] .
76 [ (g) a person who begins employment on or after July 1, 2007, with the Department of
77 Transportation created under Section 72-1-201 . ] .H
78 (3) (a) Each participating employer shall prepare a list designating those positions
79 eligible for exemption under Subsection (2).
80 (b) An employee may not be exempted unless they are employed in a position
81 designated by the participating employer.
82 (4) (a) In accordance with this section, a municipality, county, or political subdivision
83 may not exempt more than 50 positions or a number equal to 10% of the employees of the
84 municipality, county, or political subdivision, whichever is lesser.
85 (b) A municipality, county, or political subdivision may exempt at least one regular
86 full-time employee.
87 (5) Each participating employer shall:

88 (a) file employee exemptions annually with the office; and
89 (b) update the employee exemptions in the event of any change.
90 (6) The office may make rules to implement this section.
91 Section 2. Effective date.
92 This bill takes effect on July 1, 2007.