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H.B. 167 Enrolled

             1     

COUNTY HOSPITAL RETIREMENT

             2     
PROVISIONS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Michael E. Noel

             6     
Senate Sponsor: Curtis S. Bramble

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah State Retirement and Insurance Benefit Act to allow certain
             11      employers and employees to be excluded from participation in the Public Employees'
             12      Contributory Retirement System and the Public Employees' Noncontributory
             13      Retirement System.
             14      Highlighted Provisions:
             15          This bill:
             16          .    allows an employer that is a hospital created as a special service district to elect to
             17      be excluded from participation in the Public Employees' Contributory Retirement
             18      System and the Public Employees' Noncontributory Retirement System under
             19      certain circumstances;
             20          .    provides procedures for the exclusion;
             21          .    excludes new and existing employees of a special service district hospital from
             22      participation in the Public Employees' Contributory Retirement System and the
             23      Public Employees' Noncontributory Retirement System under certain
             24      circumstances; and
             25          .    makes technical changes.
             26      Monies Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None


             30      Utah Code Sections Affected:
             31      AMENDS:
             32          49-12-202, as last amended by Laws of Utah 2005, Chapter 71
             33          49-12-203, as last amended by Laws of Utah 2008, Chapter 335
             34          49-13-202, as last amended by Laws of Utah 2005, Chapter 71
             35          49-13-203, as last amended by Laws of Utah 2008, Chapter 335
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 49-12-202 is amended to read:
             39           49-12-202. Participation of employers -- Limitations -- Exclusions -- Admission
             40      requirements -- Exceptions -- Nondiscrimination requirements.
             41          (1) (a) Unless excluded under Subsection (2) [or (3)], an employer is a participating
             42      employer and may not withdraw from participation in this system.
             43          (b) In addition to their participation in this system, participating employers may
             44      provide or participate in public or private retirement, supplemental or defined contribution
             45      plan, either directly or indirectly, for their employees.
             46          (2) The following employers may be excluded from participation in this system:
             47          [(2)] (a) [An] an employer not initially admitted or included as a participating
             48      employer in this system prior to January 1, 1982[, may be excluded from participation in this
             49      system] if:
             50          [(a)] (i) the employer elects not to provide or participate in any type of private or
             51      public retirement, supplemental or defined contribution plan, either directly or indirectly, for
             52      its employees, except for Social Security; or
             53          [(b)] (ii) the employer offers another collectively bargained retirement benefit and has
             54      continued to do so on an uninterrupted basis since that date[.];
             55          [(3)] (b) [An] an employer that is a charter school sponsored by the State Board of
             56      Education or a school district that makes an election of nonparticipation in accordance with
             57      Section 53A-1a-512 [may be excluded as a participating employer.]; or


             58          (c) an employer that is a hospital created as a special service district under Title 17D,
             59      Chapter 1, Special Service District Act, that makes an election of nonparticipation in
             60      accordance with Subsection (4).
             61          [(4)] (3) An employer who did not become a participating employer in this system
             62      prior to July 1, 1986, may not participate in this system.
             63          (4) (a) Until June 30, 2009, a employer that is a hospital created as a special service
             64      district under Title 17D, Chapter 1, Special Service District Act, may make an election of
             65      nonparticipation as an employer for retirement programs under this chapter.
             66          (b) An election provided under Subsection (4)(a):
             67          (i) is a one-time election made no later than the time specified under Subsection
             68      (4)(a);
             69          (ii) shall be documented by a resolution adopted by the governing body of the special
             70      service district;
             71          (iii) is irrevocable; and
             72          (iv) applies to the special service district as the employer and to all employees of the
             73      special service district.
             74          (c) The governing body of the special service district may offer employee benefit plans
             75      for its employees:
             76          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
             77      or
             78          (ii) under any other program.
             79          (5) If a participating employer purchases service credit on behalf of regular full-time
             80      employees for service rendered prior to the participating employer's admission to this system,
             81      the service credit shall be purchased in a nondiscriminatory manner on behalf of all current
             82      and former regular full-time employees who were eligible for service credit at the time service
             83      was rendered.
             84          Section 2. Section 49-12-203 is amended to read:
             85           49-12-203. Exclusions from membership in system.


             86          (1) The following employees are not eligible for service credit in this system:
             87          (a) An employee whose employment status is temporary in nature due to the nature or
             88      the type of work to be performed, provided that:
             89          (i) if the term of employment exceeds six months and the employee otherwise qualifies
             90      for service credit in this system, the participating employer shall report and certify to the office
             91      that the employee is a regular full-time employee effective the beginning of the seventh month
             92      of employment; or
             93          (ii) if an employee, previously terminated prior to being eligible for service credit in
             94      this system is reemployed within three months of termination by the same participating
             95      employer, the participating employer shall report and certify that the member is a regular
             96      full-time employee when the total of the periods of employment equals six months and the
             97      employee otherwise qualifies for service credit in this system.
             98          (b) (i) A current or future employee of a two-year or four-year college or university
             99      who holds, or is entitled to hold, under Section 49-12-204 , a retirement annuity contract with
             100      the Teachers' Insurance and Annuity Association of America or with any other public or
             101      private system, organization, or company during any period in which required contributions
             102      based on compensation have been paid on behalf of the employee by the employer.
             103          (ii) The employee, upon cessation of the participating employer contributions, shall
             104      immediately become eligible for service credit in this system.
             105          (c) An employee serving as an exchange employee from outside the state.
             106          (d) An executive department head of the state, a member of the State Tax
             107      Commission, the Public Service Commission, and a member of a full-time or part-time board
             108      or commission who files a formal request for exemption.
             109          (e) An employee of the Department of Workforce Services who is covered under
             110      another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
             111          (f) (i) An employee who is employed on or after July 1, 2009 with an employer that
             112      has elected, prior to July 1, 2009, to be excluded from participation in this system under
             113      Subsection 49-12-202 (2)(c).


             114          (ii) Notwithstanding the provisions of this Subsection (1)(f), any eligibility for service
             115      credit earned by an employee under this chapter before July 1, 2009 is not affected under this
             116      Subsection (1)(f).
             117          (2) Upon filing a written request for exemption with the office, the following
             118      employees shall be exempt from coverage under this system:
             119          (a) a full-time student or the spouse of a full-time student and individuals employed in
             120      a trainee relationship;
             121          (b) an elected official;
             122          (c) an executive department head of the state, a member of the State Tax Commission,
             123      a member of the Public Service Commission, and a member of a full-time or part-time board
             124      or commission;
             125          (d) an employee of the Governor's Office of Planning and Budget;
             126          (e) an employee of the Governor's Office of Economic Development;
             127          (f) an employee of the Commission on Criminal and Juvenile Justice;
             128          (g) an employee of the Governor's Office;
             129          (h) an employee of the State Auditor's Office;
             130          (i) an employee of the State Treasurer's Office;
             131          (j) any other member who is permitted to make an election under Section 49-11-406 ;
             132          (k) a person appointed as a city manager or chief city administrator or another person
             133      employed by a municipality, county, or other political subdivision, who is an at-will employee;
             134      and
             135          (l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13,
             136      Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided
             137      through membership in a labor organization that provides retirement benefits to its members.
             138          (3) (a) Each participating employer shall prepare a list designating those positions
             139      eligible for exemption under Subsection (2).
             140          (b) An employee may not be exempted unless the employee is employed in a position
             141      designated by the participating employer.


             142          (4) (a) In accordance with this section, a municipality, county, or political subdivision
             143      may not exempt more than 50 positions or a number equal to 10% of the employees of the
             144      municipality, county, or political subdivision whichever is lesser.
             145          (b) A municipality, county, or political subdivision may exempt at least one regular
             146      full-time employee.
             147          (5) Each participating employer shall:
             148          (a) file employee exemptions annually with the office; and
             149          (b) update the employee exemptions in the event of any change.
             150          (6) The office may make rules to implement this section.
             151          Section 3. Section 49-13-202 is amended to read:
             152           49-13-202. Participation of employers -- Limitations -- Exclusions -- Admission
             153      requirements -- Nondiscrimination requirements -- Service credit purchases.
             154          (1) (a) Unless excluded under Subsection (2) [or (3)], an employer is a participating
             155      employer and may not withdraw from participation in this system.
             156          (b) In addition to their participation in this system, participating employers may
             157      provide or participate in any additional public or private retirement, supplemental or defined
             158      contribution plan, either directly or indirectly, for their employees.
             159          (2) The following employers may be excluded from participation in this system:
             160          [(2)] (a) [An] an employer not initially admitted or included as a participating
             161      employer in this system prior to January 1, 1982[, may be excluded from participation in this
             162      system] if:
             163          [(a)] (i) the employer elects not to provide or participate in any type of private or
             164      public retirement, supplemental or defined contribution plan, either directly or indirectly, for
             165      its employees, except for Social Security; or
             166          [(b)] (ii) the employer offers another collectively bargained retirement benefit and has
             167      continued to do so on an uninterrupted basis since that date[.];
             168          [(3)] (b) [An] an employer that is a charter school sponsored by the State Board of
             169      Education or a school district that makes an election of nonparticipation in accordance with


             170      Section 53A-1a-512 [shall be excluded as a participating employer.]; or
             171          (c) an employer that is a hospital created as a special service district under Title 17D,
             172      Chapter 1, Special Service District Act, that makes an election of nonparticipation in
             173      accordance with Subsection (5).
             174          [(4) If] (3) If an employer[, except an employer that maintains a collectively bargained
             175      plan under Subsection (2)(b),] that may be excluded under Subsection (2)(a)(i) elects at any
             176      time to provide or participate in any type of public or private retirement, supplemental or
             177      defined contribution plan, either directly or indirectly, except for Social Security, the employer
             178      shall be a participating employer in this system.
             179          [(5)] (4) (a) [Any] An employer may, by resolution of its governing body, apply for
             180      admission to this system.
             181          (b) Upon approval of the resolution by the board, the employer is a participating
             182      employer in this system and is subject to this title.
             183          (5) (a) Until June 30, 2009, a employer that is a hospital created as a special service
             184      district under Title 17D, Chapter 1, Special Service District Act, may make an election of
             185      nonparticipation as an employer for retirement programs under this chapter.
             186          (b) An election provided under Subsection (5)(a):
             187          (i) is a one-time election made no later than the time specified under Subsection
             188      (5)(a);
             189          (ii) shall be documented by a resolution adopted by the governing body of the special
             190      service district;
             191          (iii) is irrevocable; and
             192          (iv) applies to the special service district as the employer and to all employees of the
             193      special service district.
             194          (c) The governing body of the special service district may offer employee benefit plans
             195      for its employees:
             196          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
             197      or


             198          (ii) under any other program.
             199          (6) If a participating employer purchases service credit on behalf of regular full-time
             200      employees for service rendered prior to the participating employer's admission to this system,
             201      the service credit shall be purchased in a nondiscriminatory manner on behalf of all current
             202      and former regular full-time employees who were eligible for service credit at the time service
             203      was rendered.
             204          Section 4. Section 49-13-203 is amended to read:
             205           49-13-203. Exclusions from membership in system.
             206          (1) The following employees are not eligible for service credit in this system:
             207          (a) An employee whose employment status is temporary in nature due to the nature or
             208      the type of work to be performed, provided that:
             209          (i) if the term of employment exceeds six months and the employee otherwise qualifies
             210      for service credit in this system, the participating employer shall report and certify to the office
             211      that the employee is a regular full-time employee effective the beginning of the seventh month
             212      of employment; and
             213          (ii) if an employee, previously terminated prior to becoming eligible for service credit
             214      in this system, is reemployed within three months of termination by the same participating
             215      employer, the participating employer shall report and certify to the office that the member is a
             216      regular full-time employee when the total of the periods of employment equals six months and
             217      the employee otherwise qualifies for service credit in this system.
             218          (b) (i) A current or future employee of a two-year or four-year college or university
             219      who holds, or is entitled to hold, under Section 49-13-204 , a retirement annuity contract with
             220      the Teachers' Insurance and Annuity Association of America or with any other public or
             221      private system, organization, or company during any period in which required contributions
             222      based on compensation have been paid on behalf of the employee by the employer.
             223          (ii) The employee, upon cessation of the participating employer contributions, shall
             224      immediately become eligible for service credit in this system.
             225          (c) An employee serving as an exchange employee from outside the state.


             226          (d) An executive department head of the state or a legislative director, senior executive
             227      employed by the governor's office, a member of the State Tax Commission, a member of the
             228      Public Service Commission, and a member of a full-time or part-time board or commission
             229      who files a formal request for exemption.
             230          (e) An employee of the Department of Workforce Services who is covered under
             231      another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
             232          (f) (i) An employee who is employed on or after July 1, 2009 with an employer that
             233      has elected, prior to July 1, 2009, to be excluded from participation in this system under
             234      Subsection 49-13-202 (2)(c).
             235          (ii) Notwithstanding the provisions of this Subsection (1)(f), any eligibility for service
             236      credit earned by an employee under this chapter before July 1, 2009 is not affected under this
             237      Subsection (1)(f).
             238          (2) Upon filing a written request for exemption with the office, the following
             239      employees shall be exempt from coverage under this system:
             240          (a) a full-time student or the spouse of a full-time student and individuals employed in
             241      a trainee relationship;
             242          (b) an elected official;
             243          (c) an executive department head of the state, a member of the State Tax Commission,
             244      a member of the Public Service Commission, and a member of a full-time or part-time board
             245      or commission;
             246          (d) an employee of the Governor's Office of Planning and Budget;
             247          (e) an employee of the Governor's Office of Economic Development;
             248          (f) an employee of the Commission on Criminal and Juvenile Justice;
             249          (g) an employee of the Governor's Office;
             250          (h) an employee of the State Auditor's Office;
             251          (i) an employee of the State Treasurer's Office;
             252          (j) any other member who is permitted to make an election under Section 49-11-406 ;
             253          (k) a person appointed as a city manager or chief city administrator or another person


             254      employed by a municipality, county, or other political subdivision, who is an at-will employee;
             255      and
             256          (l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13,
             257      Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided
             258      through membership in a labor organization that provides retirement benefits to its members.
             259          (3) (a) Each participating employer shall prepare a list designating those positions
             260      eligible for exemption under Subsection (2).
             261          (b) An employee may not be exempted unless the employee is employed in a position
             262      designated by the participating employer.
             263          (4) (a) In accordance with this section, a municipality, county, or political subdivision
             264      may not exempt more than 50 positions or a number equal to 10% of the employees of the
             265      municipality, county, or political subdivision, whichever is lesser.
             266          (b) A municipality, county, or political subdivision may exempt at least one regular
             267      full-time employee.
             268          (5) Each participating employer shall:
             269          (a) file employee exemptions annually with the office; and
             270          (b) update the employee exemptions in the event of any change.
             271          (6) The office may make rules to implement this section.


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