This document includes House Committee Amendments incorporated into the bill on Fri, Mar 3, 2017 at 2:33 PM by ryoung.
Senator Todd Weiler proposes the following substitute bill:


1     
LOCAL PUBLIC SAFETY AND FIREFIGHTER SURVIVING

2     
SPOUSE TRUST FUND AMENDMENTS

3     
2017 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Todd Weiler

6     
House Sponsor: Timothy D. Hawkes

7     

8     LONG TITLE
9     General Description:
10          This bill modifies the Public Safety Code by amending provisions relating to
11     line-of-duty death benefits.
12     Highlighted Provisions:
13          This bill:
14          ▸     amends health coverage requirements for a surviving spouse and children of a
15     member whose death is classified as a line-of-duty death;
16          ▸     provides that a law enforcement agency or other state or local government agency
17     that employs one or more public safety service employees or firefighter service
18     employees who are eligible to earn service credit in a Utah Retirement System is
19     required to participate in the Local Public Safety and Firefighter Surviving Spouse
20     Trust Fund;
21          ▸     amends procedures for participating in the Local Public Safety and Firefighter
22     Surviving Spouse Trust Fund;
23          ▸     authorizes the Commissioner of the Department of Public Safety to enter into a
24     contract with a third party administrator to administer the Local Public Safety and
25     Firefighter Surviving Spouse Trust Fund; and

26          ▸     makes technical and conforming changes.
27     Money Appropriated in this Bill:
28          None
29     Other Special Clauses:
30          This bill provides a special effective date.
31     Utah Code Sections Affected:
32     AMENDS:
33          53-17-201, as last amended by Laws of Utah 2016, Chapter 261
34          53-17-301, as last amended by Laws of Utah 2016, Chapter 261
35          53-17-401, as enacted by Laws of Utah 2015, Chapter 166
36     

37     Be it enacted by the Legislature of the state of Utah:
38          Section 1. Section 53-17-201 is amended to read:
39          53-17-201. Surviving spouse and children health coverage for line-of-duty death.
40          (1) (a) Subject to Subsection (1)(b), and in accordance with this section, an employer
41     shall allow the surviving spouse and children of a member whose death is classified by the
42     Utah State Retirement Office as a line-of-duty death under the provisions of Title 49, Utah
43     State Retirement and Insurance Benefit Act, to remain eligible for health coverage under the
44     employer's group health plan as if the surviving spouse was an employee of the employer.
45          (b) Ĥ→ [
(i)] [[] The []] [Except as provided in Subsection (1)(b)(ii), the] ←Ĥ employer
45a     shall pay 100%
46     of the premium costs and, if the health coverage is a high-deductible plan, the employer share
47     of any contribution into a health savings account for the surviving spouse and dependent
48     children as described under Subsections (1)(a) and (2), and may not require payment from the
49     surviving spouse for premium costs or health savings account contributions as a condition of
50     qualifying to continue to receive the health coverage.
51          Ĥ→ [
(ii) If a surviving spouse and children are eligible to be covered under a group health
52     coverage plan through the employment of the surviving spouse or, if the surviving spouse
53     remarries, the employment of the spouse of the remarried surviving spouse, the employer:
54          (A) shall pay the employer share of the premium costs and, if the health coverage is a
55     high-deductible plan, the employer share of any contribution into a health savings account for
56     the surviving spouse and dependent children as described under Subsections (1)(a) and (2); and

57          (B) may collect from the surviving spouse and children the portion of the premium
58     costs that a current employee would pay for the same plan as a condition of qualifying to
59     continue to receive health coverage under this section.
60          (iii) Notwithstanding Subsection (1)(b)(ii), if the surviving spouse and children lose
61     their eligibility to be covered under a group health coverage plan through the employment of
62     the surviving spouse or, if the surviving spouse remarries, the employment of the spouse of the
63     remarried surviving spouse, the employer shall pay 100% of the premium costs and, if the
64     health coverage is a high-deductible plan, the employer share of any contribution into a health
65     savings account for the surviving spouse and dependent children as described under
66     Subsections (1)(a) and (2), and may not require payment from the surviving spouse for
67     premium costs or health savings account contributions as a condition of qualifying to continue
68     to receive the health coverage.
] ←Ĥ

69          [(ii)] (c) For the first [24] 12 months after the line-of-duty death, the employer shall
70     pay the amount specified under Subsection (1)(b)[(i)].
71          [(iii)] (d) Beginning [25] 13 months after the line-of-duty death, an employer may pay
72     the amount specified under Subsection (1)(b)[(i)] through a cost-sharing agreement under
73     Section 53-17-301 associated with the trust fund created under Section 53-17-401.
74          (2) An employer shall allow a surviving spouse and children to remain eligible to
75     receive health coverage from the employer under this section at the option of the surviving
76     spouse:
77          (a) for health coverage for the surviving spouse, until the surviving spouse becomes
78     eligible for Medicare; and
79          (b) for health coverage of a child, until the child reaches the age of 26.
80          (3) This section does not apply to a member who:
81          (a) does not qualify for a line-of-duty death benefit under Title 49, Utah State
82     Retirement and Insurance Benefit Act;
83          (b) at the time of death, did not receive or qualify to receive employer group health
84     coverage; or
85          (c) is covered under Section 49-20-406.
86          Section 2. Section 53-17-301 is amended to read:
87          53-17-301. Cost-sharing agreements -- Deadlines -- Terms -- Reports --

88     Rulemaking.
89          (1) An employer [may elect to] shall participate in the trust fund by:
90          (a) entering into a cost-sharing agreement with the commissioner under this section;
91     and
92          (b) paying the cost-sharing rate determined by the board.
93          (2) (a) [An employer that does not participate in the trust fund by entering into a
94     cost-sharing agreement in accordance with this section, shall pay the full amount required
95     under Subsection 53-17-201(1)(b)(i). (b)] Subject to the terms of the cost-sharing agreement,
96     an employer that [elects to participate] participates in accordance with this section, and stays
97     current with its payments, shall be considered to have paid the employer's full obligation under
98     Subsection 53-17-201(1)(b)[(i)].
99          [(c)] (b) An employer that [elects to participate] participates in accordance with this
100     section and that does not stay current with its payments may not be covered from the trust fund.
101          (3) An employer [that elects to participate in the trust fund before July 1, 2017,] shall
102     be covered from the trust fund for a line-of-duty death that occurs on or after July 1, [2015]
103     2005.
104          [(4) If an employer does not elect to participate in the trust fund before July 1, 2017:]
105          [(a) the employer may elect to participate during an annual open enrollment period as
106     established by the board; and]
107          [(b) the employer may not be covered from the trust fund for a line-of-duty death that
108     occurs during a period of time when the employer is not a participant in the trust fund.]
109          [(5)] (4) The commissioner shall:
110          (a) in consultation with the board, establish a form and language for a cost-sharing
111     agreement required to use trust funds in accordance with this section;
112          (b) as directed by the board, assess the annual fee amount established by the board;
113          (c) as directed by the board, establish procedures for an employer participating in the
114     trust fund to be reimbursed for the costs of providing the health coverage benefit under
115     Subsection 53-17-201(1)(b);
116          [(c)] (d) prepare and submit to the governor and the Legislature, by October 1 of each
117     year, an annual written report of the trust fund, including its balance, expenditures, and
118     revenues, and the operations and activities of the board under this chapter; and

119          [(d)] (e) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
120     Act, make rules to implement this chapter.
121          Section 3. Section 53-17-401 is amended to read:
122          53-17-401. Local Public Safety and Firefighter Surviving Spouse Trust Fund.
123          (1) There is created a private purpose trust fund entitled the "Local Public Safety and
124     Firefighter Surviving Spouse Trust Fund."
125          (2) The trust fund consists of:
126          (a) fees established in Subsection 53-17-402(2)(a);
127          (b) appropriations made to the fund by the Legislature, if any;
128          (c) private donations and grants; and
129          (d) other revenue received from other sources.
130          (3) The Department of Public Safety:
131          (a) shall account for the receipt and expenditures of trust fund money[.]; or
132          (b) may enter into contract with a third party administrator to administer the fund and
133     account for the receipt and expenditure of trust fund money.
134          (4) The trust fund shall earn interest.
135          (5) The revenue and interest in the account, less actual administrative costs to the
136     department, shall be used to lower fees paid by an employer under Section 53-17-201.
137          (6) The board of trustees created in Section 53-17-402 may expend money from the
138     trust fund:
139          (a) for health coverage for a surviving spouse and children under Subsection
140     53-17-201(1)[(b)(iii)](d) by paying:
141          [(a)] (i) premium costs; or
142          (ii) if the health coverage is a high-deductible plan, premium costs and the employer
143     contribution to a health savings account; and
144          (b) reasonable administrative costs that the department and the board of trustees incur
145     in performing their duties for administering the trust fund.
146          (7) Money deposited into the trust fund is irrevocable and is expended only for the
147     purposes described in this chapter.
148          (8) Assets of the trust fund are dedicated for the purposes established by statute and
149     administrative rule.

150          (9) Creditors of the board of trustees and of employers liable for the benefits paid
151     under this chapter may not seize, attach, or otherwise obtain assets of the trust fund.
152          Section 4. Effective date.
153          This bill takes effect on July 1, 2018.