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) [(i)] The employer shall pay 100% of the premium costs and, if the health coverage
46     is a high-deductible plan, the employer share of any contribution into a health savings account
47     for the surviving spouse and dependent children as described under Subsections (1)(a) and (2),
48     and may not require payment from the surviving spouse for premium costs or health savings
49     account contributions as a condition of qualifying to continue to receive the health coverage.
50          [(ii)] (c) For the first [24] 12 months after the line-of-duty death, the employer shall
51     pay the amount specified under Subsection (1)(b)[(i)].
52          [(iii)] (d) Beginning [25] 13 months after the line-of-duty death, an employer may pay
53     the amount specified under Subsection (1)(b)[(i)] through a cost-sharing agreement under
54     Section 53-17-301 associated with the trust fund created under Section 53-17-401.
55          (2) An employer shall allow a surviving spouse and children to remain eligible to
56     receive health coverage from the employer under this section at the option of the surviving
57     spouse:
58          (a) for health coverage for the surviving spouse, until the surviving spouse becomes
59     eligible for Medicare; and
60          (b) for health coverage of a child, until the child reaches the age of 26.
61          (3) This section does not apply to a member who:
62          (a) does not qualify for a line-of-duty death benefit under Title 49, Utah State
63     Retirement and Insurance Benefit Act;
64          (b) at the time of death, did not receive or qualify to receive employer group health
65     coverage; or
66          (c) is covered under Section 49-20-406.
67          Section 2. Section 53-17-301 is amended to read:
68          53-17-301. Cost-sharing agreements -- Deadlines -- Terms -- Reports --
69     Rulemaking.
70          (1) An employer [may elect to] shall participate in the trust fund by:
71          (a) entering into a cost-sharing agreement with the commissioner under this section;
72     and
73          (b) paying the cost-sharing rate determined by the board.
74          (2) (a) [An employer that does not participate in the trust fund by entering into a
75     cost-sharing agreement in accordance with this section, shall pay the full amount required
76     under Subsection 53-17-201(1)(b)(i). (b)] Subject to the terms of the cost-sharing agreement,
77     an employer that [elects to participate] participates in accordance with this section, and stays
78     current with its payments, shall be considered to have paid the employer's full obligation under
79     Subsection 53-17-201(1)(b)[(i)].
80          [(c)] (b) An employer that [elects to participate] participates in accordance with this
81     section and that does not stay current with its payments may not be covered from the trust fund.
82          (3) An employer [that elects to participate in the trust fund before July 1, 2017,] shall
83     be covered from the trust fund for a line-of-duty death that occurs on or after July 1, [2015]
84     2005.
85          [(4) If an employer does not elect to participate in the trust fund before July 1, 2017:]
86          [(a) the employer may elect to participate during an annual open enrollment period as
87     established by the board; and]
88          [(b) the employer may not be covered from the trust fund for a line-of-duty death that
89     occurs during a period of time when the employer is not a participant in the trust fund.]
90          [(5)] (4) The commissioner shall:
91          (a) in consultation with the board, establish a form and language for a cost-sharing
92     agreement required to use trust funds in accordance with this section;
93          (b) as directed by the board, assess the annual fee amount established by the board;
94          (c) as directed by the board, establish procedures for an employer participating in the
95     trust fund to be reimbursed for the costs of providing the health coverage benefit under
96     Subsection 53-17-201(1)(b);
97          [(c)] (d) prepare and submit to the governor and the Legislature, by October 1 of each
98     year, an annual written report of the trust fund, including its balance, expenditures, and
99     revenues, and the operations and activities of the board under this chapter; and
100          [(d)] (e) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
101     Act, make rules to implement this chapter.
102          Section 3. Section 53-17-401 is amended to read:
103          53-17-401. Local Public Safety and Firefighter Surviving Spouse Trust Fund.
104          (1) There is created a private purpose trust fund entitled the "Local Public Safety and
105     Firefighter Surviving Spouse Trust Fund."
106          (2) The trust fund consists of:
107          (a) fees established in Subsection 53-17-402(2)(a);
108          (b) appropriations made to the fund by the Legislature, if any;
109          (c) private donations and grants; and
110          (d) other revenue received from other sources.
111          (3) The Department of Public Safety:
112          (a) shall account for the receipt and expenditures of trust fund money[.]; or
113          (b) may enter into contract with a third-party administrator to administer the fund and
114     account for the receipt and expenditure of trust fund money.
115          (4) The trust fund shall earn interest.
116          (5) The revenue and interest in the account, less actual administrative costs to the
117     department, shall be used to lower fees paid by an employer under Section 53-17-201.
118          (6) The board of trustees created in Section 53-17-402 may expend money from the
119     trust fund:
120          (a) for health coverage for a surviving spouse and children under Subsection
121     53-17-201(1)[(b)(iii)](d) by paying:
122          [(a)] (i) premium costs; or
123          (ii) if the health coverage is a high-deductible plan, premium costs and the employer
124     contribution to a health savings account; and
125          (b) reasonable administrative costs that the department and the board of trustees incur
126     in performing their duties for administering the trust fund.
127          (7) Money deposited into the trust fund is irrevocable and is expended only for the
128     purposes described in this chapter.
129          (8) Assets of the trust fund are dedicated for the purposes established by statute and
130     administrative rule.
131          (9) Creditors of the board of trustees and of employers liable for the benefits paid
132     under this chapter may not seize, attach, or otherwise obtain assets of the trust fund.
133          Section 4. Effective date.
134          This bill takes effect on July 1, 2018.