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First Substitute S.B. 15

Senator Karen Mayne proposes the following substitute bill:


             1     
WORKERS' COMPENSATION PREMIUM

             2     
ASSESSMENT AND RELATED

             3     
FUNDING

             4     
2009 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Karen Mayne

             7     
House Sponsor: Michael T. Morley

             8     
             9      LONG TITLE
             10      General Description:
             11          This bill modifies provisions concerning funding related to workers' compensation and
             12      workplace safety programs through the workers' compensation premium assessments.
             13      Highlighted Provisions:
             14          This bill:
             15          .    requires a report of the Workers' Compensation Advisory Council and Labor
             16      Commission;
             17          .    creates the Industrial Accident Restricted Account;
             18          .    modifies the purposes for which monies may be appropriated from the Workplace
             19      Safety Account;
             20          .    names the Eddie P. Mayne Workplace Safety and Occupational Health Funding
             21      Program;
             22          .    caps the amount that may be appropriated under the Eddie P. Mayne Workplace
             23      Safety and Occupational Health Funding Program;
             24          .    requires reporting;
             25          .    addresses premium assessment allocations;


             26          .    provides for the repeal of the Industrial Accident Restricted Account; and
             27          .    makes technical and conforming changes.
             28      Monies Appropriated in this Bill:
             29          This bill appropriates, as an ongoing appropriation subject to future budget constraints,
             30      from the Workplace Safety Account for fiscal year 2009-10, $150,000 to the University
             31      of Utah to be used by the Rocky Mountain Center for Occupational and Environmental
             32      Health.
             33      Other Special Clauses:
             34          This bill provides an immediate effective date.
             35      Utah Code Sections Affected:
             36      AMENDS:
             37          34A-2-107, as last amended by Laws of Utah 2001, Chapter 114
             38          34A-2-202.5, as last amended by Laws of Utah 2007, Chapter 232
             39          34A-2-701, as last amended by Laws of Utah 2006, Chapter 259
             40          53B-17-804, as enacted by Laws of Utah 2007, Chapter 232
             41          59-9-101, as last amended by Laws of Utah 2006, Chapter 44
             42          59-9-102.5, as last amended by Laws of Utah 2007, Chapter 232
             43          63I-1-234, as renumbered and amended by Laws of Utah 2008, Chapter 382
             44      ENACTS:
             45          34A-2-705, Utah Code Annotated 1953
             46     
             47      Be it enacted by the Legislature of the state of Utah:
             48          Section 1. Section 34A-2-107 is amended to read:
             49           34A-2-107. Appointment of workers' compensation advisory council --
             50      Composition -- Terms of members -- Duties -- Compensation.
             51          (1) The commissioner shall appoint a workers' compensation advisory council
             52      composed of:
             53          (a) the following voting members:
             54          (i) five employer representatives; and
             55          (ii) five employee representatives; and
             56          (b) the following nonvoting members:


             57          (i) a representative of the Workers' Compensation Fund;
             58          (ii) a representative of a private insurance carrier;
             59          (iii) a representative of health care providers;
             60          (iv) the Utah insurance commissioner or the insurance commissioner's designee; and
             61          (v) the commissioner or the commissioner's designee.
             62          (2) Employers and employees shall consider nominating members of groups who
             63      historically may have been excluded from the council, such as women, minorities, and
             64      individuals with disabilities.
             65          (3) (a) Except as required by Subsection (3)(b), as terms of current council members
             66      expire, the commissioner shall appoint each new member or reappointed member to a two-year
             67      term beginning July 1 and ending June 30.
             68          (b) Notwithstanding the requirements of Subsection (3)(a), the commissioner shall, at
             69      the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             70      council members are staggered so that approximately half of the council is appointed every two
             71      years.
             72          (4) (a) When a vacancy occurs in the membership for any reason, the replacement shall
             73      be appointed for the unexpired term.
             74          (b) The commissioner shall terminate the term of [any] a council member who ceases
             75      to be representative as designated by the member's original appointment.
             76          (5) (a) The council shall confer at least quarterly for the purpose of advising the
             77      commission, the division, and the Legislature on:
             78          [(a)] (i) the Utah workers' compensation and occupational disease laws;
             79          [(b)] (ii) the administration of the laws described in Subsection (5)(a)(i); [and]
             80          [(c)] (iii) rules related to the laws described in Subsection (5)(a)[.](i); and
             81          (iv) advising the Legislature in accordance with Subsection (5)(b).
             82          (b) (i) The council and the commission shall jointly study during 2009 the premium
             83      assessment under Section 59-9-101 on an admitted insurer writing workers' compensation
             84      insurance in this state and on a self-insured employer under Section 34A-2-202 as to:
             85          (A) whether or not the premium assessment should be changed; or
             86          (B) whether or not changes should be made to how the premium assessment is used.
             87          (ii) The council and commission shall jointly report the results of the study described in


             88      this Subsection (5)(b) to the Business and Labor Interim Committee by no later than the 2009
             89      November interim meeting.
             90          (6) Regarding workers' compensation, rehabilitation, and reemployment of employees
             91      who are disabled because of an industrial injury or occupational disease the council shall:
             92          (a) offer advice on issues requested by:
             93          (i) the commission;
             94          (ii) the division; and
             95          (iii) the Legislature; and
             96          (b) make recommendations to:
             97          (i) the commission; and
             98          (ii) the division.
             99          (7) The commissioner or the commissioner's designee shall serve as the chair of the
             100      council and call the necessary meetings.
             101          (8) The commission shall provide staff support to the council.
             102          (9) (a) (i) [Members who are] A member who is not a government [employees]
             103      employee may not receive compensation or benefits for [their services] the member's service,
             104      but may receive per diem and expenses incurred in the performance of the member's official
             105      duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             106      63A-3-107 .
             107          (ii) [Members] A member may decline to receive per diem and expenses for [their] the
             108      member's service.
             109          (b) (i) [State] A state government officer [and] or employee [members] member who
             110      [do] does not receive salary, per diem, or expenses from [their] the member's agency for [their]
             111      the member's service may receive per diem and expenses incurred in the performance of [their]
             112      the member's official duties from the council at the rates established by the Division of Finance
             113      under Sections 63A-3-106 and 63A-3-107 .
             114          (ii) [State] A state government officer [and] or employee [members] member may
             115      decline to receive per diem and expenses for [their] the member's service.
             116          Section 2. Section 34A-2-202.5 is amended to read:
             117           34A-2-202.5. Offset for occupational health and safety related donations.
             118          (1) As used in this section:


             119          (a) "Occupational health and safety center" means the Rocky Mountain Center for
             120      Occupational and Environmental Health created in Title 53B, Chapter 17, Part 8, Rocky
             121      Mountain Center for Occupational and Environmental Health.
             122          (b) "Qualified donation" means a donation that is:
             123          (i) cash;
             124          (ii) given directly to an occupational health and safety center; and
             125          (iii) given exclusively for the purpose of:
             126          (A) supporting graduate level education and training in fields of:
             127          (I) safety and ergonomics;
             128          (II) industrial hygiene;
             129          (III) occupational health nursing; and
             130          (IV) occupational medicine;
             131          (B) providing continuing education programs for employers designed to promote
             132      workplace safety; and
             133          (C) paying reasonable administrative, personnel, equipment, and overhead costs of the
             134      occupational health and safety center.
             135          (c) "Self-insured employer" is a self-insured employer as defined in Section
             136      34A-2-201.5 that is required to pay the assessment imposed under Section 34A-2-202 .
             137          (2) (a) A self-insured employer may offset against the assessment imposed under
             138      Section 34A-2-202 an amount equal to the lesser of:
             139          (i) the total of qualified donations made by the self-insured employer in the calendar
             140      year for which the assessment is calculated; and
             141          (ii) .10% of the self-insured employer's total calculated premium calculated under
             142      Subsection 34A-2-202 (1)(d) for the calendar year for which the assessment is calculated.
             143          (b) The offset provided under this Subsection (2) shall be allocated [to the restricted
             144      account and funds described in Subsection 59-9-101 (2)(c)] in proportion to the [rates]
             145      percentages provided in Subsection 59-9-101 (2)(c).
             146          (3) An occupational health and safety center shall:
             147          (a) provide a self-insured employer a receipt for any qualified donation made by the
             148      self-insured employer to the occupational health and safety center;
             149          (b) expend monies received by a qualified donation:


             150          (i) for the purposes described in Subsection (1)(b)(iii); and
             151          (ii) in a manner that can be audited to ensure that the monies are expended for the
             152      purposes described in Subsection (1)(b)(iii); and
             153          (c) in conjunction with the report required by Section 59-9-102.5 , report to the
             154      Legislature through the Office of the Legislative Fiscal Analyst by no later than July 1 of each
             155      year:
             156          (i) the qualified donations received by the occupational health and safety center in the
             157      previous calendar year; and
             158          (ii) the expenditures during the previous calendar year of qualified donations received
             159      by the occupational health and safety center.
             160          Section 3. Section 34A-2-701 is amended to read:
             161           34A-2-701. Premium assessment restricted account for safety.
             162          (1) There is created in the General Fund a restricted account known as the "Workplace
             163      Safety Account."
             164          (2) (a) An amount equal to 0.25% of the premium income remitted to the state
             165      treasurer pursuant to Subsection 59-9-101 (2)(c)(ii) shall be deposited in the Workplace Safety
             166      Account in the General Fund for use [by the commission to promote Utah workplace safety] as
             167      provided in this section.
             168          (b) Beginning with fiscal year 2008-09, if the balance in the Workplace Safety Account
             169      exceeds $500,000 at the close of a fiscal year, the excess shall be transferred to the Employers'
             170      Reinsurance Fund, created under Subsection 34A-2-702 (1).
             171          (3) [Monies shall be appropriated by the] The Legislature shall appropriate from the
             172      restricted account monies to one or both of the following:
             173          (a) monies to the commission for use by the commission to:
             174          [(a)] (i) improve safety consultation services available to Utah employers; or
             175          [(b)] (ii) provide for electronic or print media advertising campaigns designed to
             176      promote workplace safety; [or] and
             177          [(c) contract for studies of workplace safety issues such as whether or not there is
             178      scientific support for a presumption that for certain occupations some occupational diseases are
             179      medically caused or aggravated by employment.]
             180          (b) subject to Subsection (7), monies known as the "Eddie P. Mayne Workplace Safety


             181      and Occupational Health Funding Program":
             182          (i) to an institution within the state system of higher education, as defined in Section
             183      53B-1-102 ; and
             184          (ii) to be expended by an education and research center that is:
             185          (A) affiliated with the institution described in Subsection (3)(b)(i); and
             186          (B) designated as an education and research center by the National Institute for
             187      Occupational Safety and Health.
             188          (4) From monies appropriated by the Legislature from the restricted account to the
             189      commission for use by the commission, the commission may fund other safety programs or
             190      initiatives recommended to it by its state workers' compensation advisory council created under
             191      Section 34A-2-107 .
             192          (5) (a) The commission shall annually report to the governor, the Legislature, and its
             193      state council regarding:
             194          [(a)] (i) the use of the monies appropriated to the commission under Subsection (3) or
             195      (4); and
             196          [(b)] (ii) the [use] impact of the use of the monies on the safety of Utah's workplaces.
             197          (b) By no later than August 15 following a fiscal year in which an education and
             198      research center receives monies from an appropriation under Subsection (3)(b), the education
             199      and research center shall report:
             200          (i) to:
             201          (A) the governor;
             202          (B) the Legislature;
             203          (C) the commission; and
             204          (D) the state workers' compensation advisory council created under Section
             205      34A-2-107 ; and
             206          (ii) regarding:
             207          (A) the use of the monies appropriated under Subsection (3)(b); and
             208          (B) the impact of the use of the monies on the safety of Utah's workplaces.
             209          (6) The monies deposited in the restricted account:
             210          (a) shall be:
             211          (i) used only for the activities described in Subsection (3) or (4); and


             212          (ii) expended according to processes that can be verified by audit; and
             213          (b) may not be used by the commission for:
             214          (i) administrative costs unrelated to the restricted account; or
             215          (ii) any activity of the commission other than the activities of the commission
             216      described in Subsection (3) or (4).
             217          (7) The total of appropriations under Subsection (3)(b) may not exceed for a fiscal year
             218      an amount equal to 20% of the premium income remitted to the state treasurer pursuant to
             219      Subsection 59-9-101 (2)(c) and deposited in the Workplace Safety Account during the previous
             220      fiscal year.
             221          Section 4. Section 34A-2-705 is enacted to read:
             222          34A-2-705. Industrial Accident Restricted Account.
             223          (1) As used in this section:
             224          (a) "Account" means the Industrial Accident Restricted Account created by this
             225      section.
             226          (b) "Advisory council" means the state workers' compensation advisory council created
             227      under Section 34A-2-107 .
             228          (2) There is created in the General Fund a restricted account known as the "Industrial
             229      Accident Restricted Account."
             230          (3) (a) The account is funded from .5% of the premium income remitted to the state
             231      treasurer and credited to the account pursuant to Subsection 59-9-101 (2)(c)(iv).
             232          (b) If the balance in the account exceeds $500,000 at the close of a fiscal year, the
             233      excess shall be transferred to the Uninsured Employers' Fund created under Section 34A-2-704 .
             234          (4) (a) From monies appropriated by the Legislature from the account to the
             235      commission and subject to the requirements of this section, the commission may fund:
             236          (i) the activities of the Division of Industrial Accidents described in Section
             237      34A-1-202 ; and
             238          (ii) the activities of the Division of Adjudication described in Section 34A-1-202 .
             239          (b) The monies deposited in the account may not used for a purpose other than a
             240      purpose described in this Subsection (4), including an administrative cost or another activity of
             241      the commission unrelated to the account.
             242          (5) (a) Each year before the public hearing required by Subsection 59-9-101 (2)(d)(i),


             243      the commission shall report to the advisory council regarding:
             244          (i) the commission's budget request to the governor for the next fiscal year related to:
             245          (A) the Division of Industrial Accidents; and
             246          (B) the Division of Adjudication;
             247          (ii) the expenditures of the commission for the fiscal year in which the commission is
             248      reporting related to:
             249          (A) the Division of Industrial Accidents; and
             250          (B) the Division of Adjudication; and
             251          (iii) revenues generated from the premium assessment under Section 59-9-101 on an
             252      admitted insurer writing workers' compensation insurance in this state and on a self-insured
             253      employer under Section 34a-2-202 .
             254          (b) The commission shall annually report to the governor and the Legislature
             255      regarding:
             256          (i) the use of the monies appropriated to the commission under this section; and
             257          (ii) revenues generated from the premium assessment under Section 59-9-101 on an
             258      admitted insurer writing workers' compensation insurance in this state and on a self-insured
             259      employer under Section 34a-2-202 .
             260          Section 5. Section 53B-17-804 is amended to read:
             261           53B-17-804. Reporting.
             262          (1) (a) The board, through the director and the board chair, shall provide by no later
             263      than July 1 of each year, a written report to:
             264          [(a)] (i) the president of the university; and
             265          [(b)] (ii) the Business and Labor Interim Committee.
             266          [(2)] (b) The report required by this [section] Subsection (1) shall:
             267          [(a)] (i) summarize the center's activities and accomplishments in the immediate
             268      proceeding calendar year; and
             269          [(b)] (ii) provide information and the board's advice and recommendations on how the
             270      state, university, and the center can:
             271          [(i)] (A) improve workplace health and safety; and
             272          [(ii)] (B) contribute to economic growth and development in Utah and the surrounding
             273      region.


             274          (2) (a) If the center receives in a fiscal year monies from the Eddie P. Mayne
             275      Workplace Safety and Occupational Health Funding Program provided for in Section
             276      34A-2-701 , the center shall provide a written report:
             277          (i) by no later than the August 15 following the fiscal year;
             278          (ii) to the Office of the Legislative Fiscal Analyst;
             279          (iii) for review by the one or more appropriations subcommittees designated by the
             280      Executive Appropriations Committee;
             281          (iv) that accounts for the expenditure of monies received in the fiscal year by the center
             282      from the Eddie P. Mayne Workplace Safety and Occupational Health Funding Program
             283      including impact on workplace safety in Utah; and
             284          (v) that includes a preliminary statement as to monies the center will request from the
             285      Eddie P. Mayne Workplace Safety and Occupational Health Funding Program for the fiscal
             286      year following the day on which the report is provided.
             287          (b) A report provided under this Subsection (2) meets the reporting requirements under
             288      Subsection 34A-2-701 (5)(b)(i)(B).
             289          Section 6. Section 59-9-101 is amended to read:
             290           59-9-101. Tax basis -- Rates -- Exemptions -- Rate reductions.
             291          (1) (a) Except as provided in Subsection (1)(b), (1)(d), or (5), [every] an admitted
             292      insurer shall pay to the commission on or before March 31 in each year, a tax of 2-1/4% of the
             293      total premiums received by it during the preceding calendar year from insurance covering
             294      property or risks located in this state.
             295          (b) This Subsection (1) does not apply to:
             296          (i) workers' compensation insurance, assessed under Subsection (2);
             297          (ii) title insurance premiums taxed under Subsection (3);
             298          (iii) annuity considerations;
             299          (iv) insurance premiums paid by an institution within the state system of higher
             300      education as specified in Section 53B-1-102 ; and
             301          (v) ocean marine insurance.
             302          (c) The taxable premium under this Subsection (1) shall be reduced by:
             303          (i) all premiums returned or credited to policyholders on direct business subject to tax
             304      in this state;


             305          (ii) all premiums received for reinsurance of property or risks located in this state; and
             306          (iii) the dividends, including premium reduction benefits maturing within the year:
             307          (A) paid or credited to policyholders in this state; or
             308          (B) applied in abatement or reduction of premiums due during the preceding calendar
             309      year.
             310          (d) (i) For purposes of this Subsection (1)(d):
             311          (A) "Utah variable life insurance premium" means an insurance premium paid:
             312          (I) by:
             313          (Aa) a corporation; or
             314          (Bb) a trust established or funded by a corporation; and
             315          (II) for variable life insurance covering risks located within the state.
             316          (B) "Variable life insurance" means an insurance policy that provides for life
             317      insurance, the amount or duration of which varies according to the investment experience of
             318      one or more separate accounts that are established and maintained by the insurer pursuant to
             319      Title 31A, Insurance Code.
             320          (ii) Notwithstanding Subsection (1)(a), beginning on January 1, 2006, the tax on that
             321      portion of the total premiums subject to a tax under Subsection (1)(a) that is a Utah variable
             322      life insurance premium shall be calculated as follows:
             323          (A) 2-1/4% of the first $100,000 of Utah variable life insurance premiums:
             324          (I) paid for each variable life insurance policy; and
             325          (II) received by the admitted insurer in the preceding calendar year; and
             326          (B) 0.08% of the Utah variable life insurance premiums that exceed $100,000:
             327          (I) paid for the policy described in Subsection (1)(d)(ii)(A); and
             328          (II) received by the admitted insurer in the preceding calendar year.
             329          (iii) (A) On or before October 1, 2009, and every three years after October 1, 2009, the
             330      Revenue and Taxation Interim Committee shall study the rate reduction contained in this
             331      Subsection (1)(d).
             332          (B) As part of the study required by Subsection (1)(d)(iii)(A) the Revenue and
             333      Taxation Interim Committee shall:
             334          (I) hear testimony from the commission and industry representatives;
             335          (II) make recommendations concerning whether the rate reduction should be continued,


             336      modified, or repealed; and
             337          (III) make findings regarding:
             338          (Aa) the cost of the rate reduction;
             339          (Bb) the purpose and effectiveness of the rate reduction; and
             340          (Cc) any benefits of the rate reduction to the state.
             341          (2) (a) [Every] An admitted insurer writing workers' compensation insurance in this
             342      state, including the Workers' Compensation Fund created under Title 31A, Chapter 33,
             343      Workers' Compensation Fund, shall pay to the tax commission, on or before March 31 in each
             344      year, a premium assessment [of between 1% and 8%] on the basis of the total workers'
             345      compensation premium income received by the insurer from workers' compensation insurance
             346      in this state during the preceding calendar year[.] as follows:
             347          (i) on or before December 31, 2010, an amount of equal to or greater than 1%, but
             348      equal to or less than 5.75% of the total workers' compensation premium income described in
             349      this Subsection (2)(a);
             350          (ii) on and after January 1, 2011, but on or before December 31, 2011, an amount of
             351      equal to or greater than 1%, but equal to or less than 4.25% of the total workers' compensation
             352      premium income described in this Subsection (2)(a);
             353          (iii) on and after January 1, 2012, but on or before December 31, 2012, an amount of
             354      equal to or greater than 1%, but equal to or less than 2.25% of the total workers' compensation
             355      premium income described in this Subsection (2)(a); and
             356          (iv) on and after January 1, 2013, an amount of equal to or greater than 1%, but equal
             357      to or less than 1.25% of the total workers' compensation premium income described in this
             358      Subsection (2)(a).
             359          (b) Total workers' compensation premium income means the net written premium as
             360      calculated before any premium reduction for any insured employer's deductible, retention, or
             361      reimbursement amounts and also those amounts equivalent to premiums as provided in Section
             362      34A-2-202 .
             363          (c) The percentage of premium assessment applicable for a calendar year shall be
             364      determined by the Labor Commission under Subsection (2)(d). The total premium income
             365      shall be reduced in the same manner as provided in Subsections (1)(c)(i) and (1)(c)(ii), but not
             366      as provided in Subsection (1)(c)(iii). The tax commission shall promptly remit from the


             367      premium assessment collected under this Subsection (2):
             368          (i) [an amount of up to 7.25% of the premium] income to the state treasurer for credit
             369      to the Employers' Reinsurance Fund created under Subsection 34A-2-702 (1)[;] as follows:
             370          (A) on or before December 31, 2009, an amount of up to 5% of the premium income;
             371          (B) on and after January 1, 2010, but on or before December 31, 2010, an amount of up
             372      to 4.5% of the premium income;
             373          (C) on and after January 1, 2011, but on or before December 31, 2011, an amount of up
             374      to 3% of the premium income;
             375          (D) on and after January 1, 2012, but on or before December 31, 2012, an amount of
             376      up to 1% of the premium income; and
             377          (E) on and after January 1, 2013, and a subsequent fiscal year, no portion of the
             378      premium income;
             379          (ii) an amount equal to 0.25% of the premium income to the state treasurer for credit to
             380      the [restricted account in the General Fund,] Workplace Safety Account created by Section
             381      34A-2-701 ; [and]
             382          (iii) an amount of up to [0.50%] 0.5% and any remaining assessed percentage of the
             383      premium income to the state treasurer for credit to the Uninsured Employers' Fund created
             384      under Section 34A-2-704 [.]; and
             385          (iv) beginning on January 1, 2010, 0.5% of the premium income to the state treasurer
             386      for credit to the Industrial Accident Restricted Account created in Section 34A-2-705 .
             387          (d) (i) The Labor Commission shall determine the amount of the premium assessment
             388      for each year on or before each October 15 of the preceding year. The Labor Commission shall
             389      make this determination following a public hearing. The determination shall be based upon the
             390      recommendations of a qualified actuary.
             391          (ii) The actuary shall recommend a premium assessment rate sufficient to provide
             392      payments of benefits and expenses from the Employers' Reinsurance Fund and to project a
             393      funded condition with assets greater than liabilities by no later than June 30, 2025.
             394          (iii) The actuary shall recommend a premium assessment rate sufficient to provide
             395      payments of benefits and expenses from the Uninsured Employers' Fund and to maintain it at a
             396      funded condition with assets equal to or greater than liabilities.
             397          (iv) At the end of each fiscal year the minimum approximate assets in the Employers'


             398      Reinsurance Fund shall be $5,000,000 which amount shall be adjusted each year beginning in
             399      1990 by multiplying by the ratio that the total workers' compensation premium income for the
             400      preceding calendar year bears to the total workers' compensation premium income for the
             401      calendar year 1988.
             402          (v) The requirements of Subsection (2)(d)(iv) cease when the future annual
             403      disbursements from the Employers' Reinsurance Fund are projected to be less than the
             404      calculations of the corresponding future minimum required assets. The Labor Commission
             405      shall, after a public hearing, determine if the future annual disbursements are less than the
             406      corresponding future minimum required assets from projections provided by the actuary.
             407          (vi) At the end of each fiscal year the minimum approximate assets in the Uninsured
             408      Employers' Fund shall be $2,000,000, which amount shall be adjusted each year beginning in
             409      1990 by multiplying by the ratio that the total workers' compensation premium income for the
             410      preceding calendar year bears to the total workers' compensation premium income for the
             411      calendar year 1988.
             412          (e) A premium assessment that is to be transferred into the General Fund may be
             413      collected on premiums received from Utah public agencies.
             414          (3) [Every] An admitted insurer writing title insurance in this state shall pay to the
             415      commission, on or before March 31 in each year, a tax of .45% of the total premium received
             416      by either the insurer or by its agents during the preceding calendar year from title insurance
             417      concerning property located in this state. In calculating this tax, "premium" includes the
             418      charges made to an insured under or to an applicant for a policy or contract of title insurance
             419      for:
             420          (a) the assumption by the title insurer of the risks assumed by the issuance of the policy
             421      or contract of title insurance; and
             422          (b) abstracting title, title searching, examining title, or determining the insurability of
             423      title, and every other activity, exclusive of escrow, settlement, or closing charges, whether
             424      denominated premium or otherwise, made by a title insurer, an agent of a title insurer, a title
             425      insurance producer, or any of them.
             426          (4) Beginning July 1, 1986, a former county [mutuals] mutual and a former mutual
             427      benefit [associations] association shall pay the premium tax or assessment due under this
             428      chapter. [All premiums] Premiums received after July 1, 1986, shall be considered in


             429      determining the tax or assessment.
             430          (5) The following insurers are not subject to the premium tax on health care insurance
             431      that would otherwise be applicable under Subsection (1):
             432          (a) [insurers] an insurer licensed under Title 31A, Chapter 5, Domestic Stock and
             433      Mutual Insurance Corporations;
             434          (b) [insurers] an insurer licensed under Title 31A, Chapter 7, Nonprofit Health Service
             435      Insurance Corporations;
             436          (c) [insurers] an insurer licensed under Title 31A, Chapter 8, Health Maintenance
             437      Organizations and Limited Health Plans;
             438          (d) [insurers] an insurer licensed under Title 31A, Chapter 9, Insurance Fraternals;
             439          (e) [insurers] an insurer licensed under Title 31A, Chapter 11, Motor Clubs;
             440          (f) [insurers] an insurer licensed under Title 31A, Chapter 13, Employee Welfare
             441      Funds and Plans; and
             442          (g) [insurers] an insurer licensed under Title 31A, Chapter 14, Foreign Insurers.
             443          (6) An insurer issuing multiple policies to an insured may not artificially allocate the
             444      premiums among the policies for purposes of reducing the aggregate premium tax or
             445      assessment applicable to the policies.
             446          (7) The retaliatory provisions of Title 31A, Chapter 3, Department Funding, Fees, and
             447      Taxes, apply to the tax or assessment imposed under this chapter.
             448          Section 7. Section 59-9-102.5 is amended to read:
             449           59-9-102.5. Offset for occupational health and safety related donations.
             450          (1) As used in this section:
             451          (a) "Occupational health and safety center" means the Rocky Mountain Center for
             452      Occupational and Environmental Health created in Title 53B, Chapter 17, Part 8, Rocky
             453      Mountain Center for Occupational and Environmental Health.
             454          (b) "Qualified donation" means a donation that is:
             455          (i) cash;
             456          (ii) given directly to an occupational health and safety center; and
             457          (iii) given exclusively for the purpose of:
             458          (A) supporting graduate level education and training in fields of:
             459          (I) safety and ergonomics;


             460          (II) industrial hygiene;
             461          (III) occupational health nursing; and
             462          (IV) occupational medicine;
             463          (B) providing continuing education programs for employers designed to promote
             464      workplace safety; and
             465          (C) paying reasonable administrative, personnel, equipment, and overhead costs of the
             466      occupational health and safety center.
             467          (c) "Workers' compensation insurer" means an admitted insurer writing workers'
             468      compensation insurance in this state that is required to pay the premium assessment imposed
             469      under Subsection 59-9-101 (2).
             470          (2) (a) A workers' compensation insurer may offset against the premium assessment
             471      imposed under Subsection 59-9-101 (2) an amount equal to the lesser of:
             472          (i) the total of qualified donations made by the workers' compensation insurer in the
             473      calendar year for which the premium assessment is calculated; and
             474          (ii) .10% of the workers' compensation insurer's total workers' compensation premium
             475      income as defined in Subsection 59-9-101 (2)(b) in the calendar year for which the premium
             476      assessment is calculated.
             477          (b) The offset provided under this Subsection (2) shall be allocated [to the restricted
             478      account and funds described in Subsection 59-9-101 (2)(c)] in proportion to the [rates]
             479      percentages provided in Subsection 59-9-101 (2)(c).
             480          (3) An occupational health and safety center shall:
             481          (a) provide a workers' compensation insurer a receipt for any qualified donation made
             482      by the workers' compensation insurer to the occupational health and safety center;
             483          (b) expend monies received by a qualified donation:
             484          (i) for the purposes described in Subsection (1)(b)(iii); and
             485          (ii) in a manner that can be audited to ensure that the monies are expended for the
             486      purposes described in Subsection (1)(b)(iii); and
             487          (c) in conjunction with the report required by Section 34A-2-202.5 , report to the
             488      Legislature through the Office of the Legislative Fiscal Analyst by no later than July 1 of each
             489      year:
             490          (i) the qualified donations received by the occupational health and safety center in the


             491      previous calendar year; and
             492          (ii) the expenditures during the previous calendar year of qualified donations received
             493      by the occupational health and safety center.
             494          Section 8. Section 63I-1-234 is amended to read:
             495           63I-1-234. Repeal dates, Title 34A.
             496          (1) Section 34A-2-202.5 is repealed December 31, 2010.
             497          (2) Section 34A-2-705 and Subsection 59-9-101 (2)(c)(iv) are repealed July 1, 2013.
             498          [(2)] (3) Title 34A, Chapter 8, Utah Injured Worker Reemployment Act, is repealed
             499      July 1, 2009.
             500          Section 9. Appropriation.
             501          As an ongoing appropriation subject to future budget constraints, there is appropriated
             502      from the Workplace Safety Account, in the General Fund, for fiscal year 2009-10, $150,000:
             503          (1) as part of the Eddie P. Mayne Workplace Safety and Occupational Health Funding
             504      Program provided for in Section 34A-2-701 ;
             505          (2) to the University of Utah; and
             506          (3) to be used by the Rocky Mountain Center for Occupational and Environmental
             507      Health, to fund activities provided for in Title 53B, Chapter 17, Part 8, Rocky Mountain Center
             508      for Occupational and Environmental Health.
             509          Section 10. Effective date.
             510          If approved by two-thirds of all the members elected to each house, this bill takes effect
             511      upon approval by the governor, or the day following the constitutional time limit of Utah
             512      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             513      the date of veto override.


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