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:
29 Other Special Clauses:
30 This bill provides a special effective date.
31 Utah Code Sections Affected:
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
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) [
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 (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.
70 pay the amount specified under Subsection (1)(b)[
72 the amount specified under Subsection (1)(b)[
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
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 --
89 (1) An employer [
90 (a) entering into a cost-sharing agreement with the commissioner under this section;
92 (b) paying the cost-sharing rate determined by the board.
93 (2) (a) [
96 an employer that [
97 current with its payments, shall be considered to have paid the employer's full obligation under
98 Subsection 53-17-201(1)(b)[
100 section and that does not stay current with its payments may not be covered from the trust fund.
101 (3) An employer [
102 be covered from the trust fund for a line-of-duty death that occurs on or after July 1, [
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);
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
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[
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
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.