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First Substitute H.B. 64

Representative Brian Doughty proposes the following substitute bill:




Chief Sponsor: Brian Doughty

Senate Sponsor: ____________

             7      LONG TITLE
             8      General Description:
             9          This bill amends the Public Employees' Benefit and Insurance Program Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    creates a definition for a dependent eligible for coverage under the Public
             13      Employees' Benefit and Insurance Program Act; and
             14          .    defines "directly dependent upon" or "interdependent with" for purposes of an
             15      unmarried employee's adult designee.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          49-20-102, as renumbered and amended by Laws of Utah 2002, Chapter 250
             23      ENACTS:
             24          49-20-102.5, Utah Code Annotated 1953

             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 49-20-102 is amended to read:
             28           49-20-102. Definitions.
             29          As used in this chapter:
             30          (1) "Covered employer" means an employer that offers employee benefit plans under
             31      this chapter to its employees and their dependents.
             32          (2) "Covered individual" means an employee and the employee's dependents eligible
             33      for coverage under this chapter.
             34          (3) "Dependent" shall:
             35          (a) be defined by rule adopted by the board; and
             36          (b) an unmarried state employee may include one unmarried adult designee, who:
             37          (i) is at least 18 years of age;
             38          (ii) is directly dependent upon, or interdependent with the employee; and
             39          (iii) resided in the same domicile as the employee for at least the last 12 months and
             40      intends to continue to reside with the employee.
             41          (4) "Directly dependent upon" or "interdependent with" means an employee and one
             42      adult designee who share common financial obligations as documented through any three of
             43      the following four documents:
             44          (a) a joint loan obligation, mortgage, lease, or joint ownership of:
             45          (i) a vehicle;
             46          (ii) real estate; or
             47          (iii) a residence;
             48          (b) any of the following documents in which the adult designee is named a beneficiary,
             49      executor, or successor trustee:
             50          (i) a life insurance policy;
             51          (ii) a retirement benefit account;
             52          (iii) a will; or
             53          (iv) a trust;
             54          (c) a power of attorney for the purpose of healthcare decisions, or financial
             55      management:
             56          (i) granted mutually between the employee and the adult designee; or

             57          (ii) granted to the state employee by the adult designee; or
             58          (d) a joint bank account or credit account, which could include proof that the adult
             59      designee or the employee is authorized to sign for purposes of the other's bank or credit
             60      account.
             61          [(3)] (5) "Employee Benefit Plans" means any group health, dental, medical, disability,
             62      life insurance, medicare supplement, conversion coverage, cafeteria, flex plans, or other
             63      program for covered individuals administered by the Public Employees' Benefit and Insurance
             64      Program.
             65          [(4)] (6) "Employer" means the state, its political subdivisions, and educational
             66      institutions.
             67          [(5)] (7) "Program" means the Public Employees' Benefit and Insurance Program.
             68          Section 2. Section 49-20-102.5 is enacted to read:
             69          49-20-102.5. Political subdivisions and education -- Adult designee.
             70          (1) "State employee" in Subsection 49-20-102 (3)(b) does not require a public school
             71      district, charter school, or institution of higher education that participates in the state employee
             72      risk pool to offer adult designee benefits.
             73          (2) The provisions of Subsection 49-20-102 (3)(b) do not prohibit an entity described in
             74      Subsection 49-20-201 (1)(b) from offering benefits under this chapter to an adult designee.

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