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MINUTES OF THE

SENATE RETIREMENT AND INDEPENDENT ENTITIES STANDING COMMITTEE

MONDAY, FEBRUARY 14, 2011, 4:00 P.M.

ROOM 30, HOUSE BUILDING, UTAH STATE CAPITOL COMPLEX



Members Present:    Sen. Dan Liljenquist, Co-Chair
    Sen. Curtis Bramble     Sen. Stuart Reid     Sen. Daniel Thatcher
    Sen. Karen Mayne
    Sen. Luz Robles
    
Staff Present:    Benjamin N. Christensen, Policy Analyst
    Jolene Morgan, Committee Secretary

Public Speakers Present:    Greg Smith, Student
    Dan Andersen, Counsel, Utah Retirement Services
    Bill Becker, Citizen
    Travis Zirker, Student, Utah Valley University
    Taylor Fran, Citizen     Geoff Landward, General Counsel, Department of Workforce
     Services
    Todd Sutton, Representative, UPEA
    Norman Rentschler, Citizen

A list of visitors and a copy of handouts are filed with the committee minutes.

Committee Chair Liljenquist called the meeting to order at 4:08 p.m.

1. S.B. 112 - Retirement System Divestment

     MOTION: Sen. Bramble moved to adopt the following amendment:

1.    Page 1, Lines 13 through 20 :    

             13          This bill:
 

    . modifies the definition of direct holdings to exclude holdings that are part of a passive indexing investment strategy;  

             14          .    requires the Utah State Retirement Office to include data designed to explain the
             15      extent to which public fund investments in scrutinized companies are being
             16      prevented;


             17          .    requires the Utah State Retirement Office to prevent the
{   investment of public funds   }        acquisition of direct holdings      

             18      in a scrutinized company by adjusting future investment practices within the office
             19      and by stipulating in future investment management contracts that no new
             20     
{   investments may be made   }        direct holdings be acquired       in a scrutinized company; and


2.    Page 2, Lines 47 through 49 :    

             47          (d)
  (i)       "Direct holdings" means all publicly traded equity securities of a company that are

             48      held directly by the public fund or in an account or fund in which the public fund owns all
             49      shares or interests.
 

    (ii)    "Direct holdings" does not include publicly traded equity securities of a company held as part of a passive indexing investment strategy.  


3.    Page 3, Line 83 through Page 4, Line 91 :    

             83          (6) Beginning July 1, 2011, using the most current list assembled under Subsection (2),
             84      the office shall prevent the investment of public funds
  direct holdings       in a scrutinized company:

             85          (a) for public funds managed within the office, by not investing in
  direct holdings in       a scrutinized

             86      company; and
             87          (b) for public funds managed by contract by a professional investment manager:
             88          (i) for existing contracts, by requesting that no more
{   investments be made   }        direct holdings be acquired       in a

             89      scrutinized company; and
             90          (ii) for future contracts, by stipulating in the contract that no new
{   investments may be

             91      made  
}
  direct holdings be acquired       in a scrutinized company.


    The motion passed unanimously with Sens Mayne and Robles absent for the vote.

    Sen. Bramble introduced and explained the bill.


    Greg Smith, Dan Andersen, Bill Becker and Taylor Fran spoke in favor of the bill.

    Travis Zirker spoke to the bill.

     MOTION: Sen. Thatcher moved to pass S.B. 112 out of committee with a favorable recommendation.

    The motion passed unanimously.

Sen. Bramble assumed the Chair.

2. S.B. 90 - Board of Pardons Retirement Amendments

    Sen. Liljenquist introduced and explained the bill.

     MOTION: Sen. Liljenquist moved to pass S.B. 90 out of committee with a favorable recommendation.

    The motion passed unanimously.

     MOTION: Sen. Liljenquist moved to place S.B. 90 on the consent calendar.

    The motion passed unanimously.

3. S.B. 120 - Career Service Amendments

     MOTION: Sen. Liljenquist moved to substitute S.B. 120 bill with 1st Sub. S.B. 120.

    The motion passed unanimously.

     MOTION: Sen. Liljenquist moved to adopt the following amendment:

1.    Page 3, Line 84 through Page 4, Line 88 :    

             84          (ii) for whom substantially all of their work is repetitive, measurable or transaction
             85      based, and who voluntarily apply for and are accepted by the Department of Workforce
             86      Services to work in a pay for performance program designed by the Department of Workforce
             87      Services
  with the concurrence of the executive director       .

             88          (2) The civil service shall consist of two schedules as follows:
    
    The motion passed unanimously



    Sen. Liljenquist introduced and explained the bill.

    Geoff Lanward and Todd Sutton spoke in favor of the bill.

     MOTION: Sen. Liljenquist moved to pass S.B. 120 out of committee with a favorable recommendation.

    The motion passed unanimously.

4. S.B. 127 - Post Retirement Employment Amendments

     MOTION: Sen. Liljenquist moved to adopt the following amendment:

1.    Page 2, Lines 50 through 54 :    

             50          (ii) upon reemployment after the break in service under Subsection (3)(b)(i), the retiree
             51      does not receive any employer provided benefits, including:
             52          (A) medical benefits;
             53          (B) dental benefits;
             54          (C) other insurance benefits
{   of any kind   }        except for workers' compensation as provided under Title 34A, Chapter 2, Workers' Compensation Act and withholdings required by federal or state law for Social Security, Medicare, and unemployment insurance       ; or


2.    Page 3, Lines 61 through 64 :    

             61          (c) Beginning January 1, 2013, the board shall adjust the amount under Subsection
             62     
{   (3)(b)(ii)(A)   }        (3)(b)(iii)(A)       by the annual change in the Consumer Price Index during the previous calendar

             63      year as measured by a United States Bureau of Labor Statistics Consumer Price Index average
             64      as determined by the board.

    The motion passed unanimously.

    Norman Rentschler spoke to the bill.

    Dan Andersen spoke in favor of the bill.


     MOTION: Sen. Thatcher moved to pass S.B. 127 out of committee with a favorable recommendation.

    The motion passed unanimously.

5. S.B. 308 - Amendments to Public Employee's Benefit and Insurance Program

     MOTION: Sen. Liljenquist moved to adopt the following amendment:

1.    Page 1, Lines 25 through 27 :    

             25          .    provides that reemployment restrictions for a person who begins reemployment
             26      after July 1, 2010, do not apply to employment as an elected official
{   except an

             27      elected sheriff  
}
  if the elected position is not full-time       ;


2.    Page 22, Lines 666 through 668 :    

             666          (b) (i)
{   Except as provided in Subsection (1)(b)(ii), this   }        This       section does not apply to

             667      employment as an elected official
  if the elected official's position is not full-time as certified by the participating employer       .

             668          (ii) The provisions of this section apply to an elected
{   sheriff   }        official whose elected position is full-time as certified by the participating employer       .


3.    Page 23, Lines 687 through 691 :    

             687          (iii) of any election by the retiree under Subsection (4).
 

    (b)    A participating employer shall certify to the office whether the position of an elected official is full-time or is not full-time.  

             688          
{   (b)   }        (c)       A participating employer is liable to the office for a payment or failure to make a

             689      payment in violation of this section.
             690          
{   (c)   }        (d)       If a participating employer fails to notify the office in accordance with this section,

             691      the participating employer is immediately subject to a compliance audit by the office.

4.    Page 59, Line 1823 :    

             1823          (b) the date the eligible employee
{   is no longer disabled   }        no longer has a disability       ;



    The motion passed unanimously.

    Dan Anderson spoke for the bill.

     MOTION: Sen. Thatcher moved to pass S.B. 308 out of committee with a favorable recommendation.

     The motion passed unanimously.

     MOTION: Sen. Mayne moved to adjourn. The motion passed unanimously.

    Acting Chair Bramble adjourned the meeting at 5:19 p.m.

    Minutes reported by Jolene Morgan, Secretary.




Sen. Dan Liljenquist, Committee Chair