Representative Craig Hall proposes the following substitute bill:





Chief Sponsor: Craig Hall

Senate Sponsor: Brian Zehnder


9     General Description:
10          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
11     provisions relating to the forfeiture of retirement benefits.
12     Highlighted Provisions:
13          This bill:
14          ▸     authorizes a district attorney, a county attorney, the attorney general's office, or the
15     state auditor to notify the Utah State Retirement Office and the employee's
16     participating employer if an employee is charged with an offense that is or may be
17     an employment related offense;
18          ▸     requires the participating employer who received the notification to make certain
19     reports to the entity that provided the notification; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          This bill provides a special effective date.
25     Utah Code Sections Affected:

26     AMENDS:
27          49-11-1401, as enacted by Laws of Utah 2016, Chapter 413

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 49-11-1401 is amended to read:
31          49-11-1401. Forfeiture of retirement benefits for employees for employment
32     related offense convictions -- Notifications -- Investigations -- Appeals.
33          (1) As used in this section:
34          (a) "Convicted" means a conviction by plea or by verdict, including a plea of guilty or a
35     plea of no contest that is held in abeyance under Title 77, Chapter 2a, Pleas in Abeyance,
36     regardless of whether the charge was, or is, subsequently reduced or dismissed in accordance
37     with the plea in abeyance agreement.
38          (b) "Employee" means a member of a system or plan administered by the board.
39          (c) "Employment related offense" means a felony committed during employment or the
40     term of an elected or appointed office with a participating employer that is:
41          (i) during the performance of the employee's duties;
42          (ii) within the scope of the employee's employment; or
43          (iii) under color of the employee's authority.
44          (2) (a) Notwithstanding any other provision of this title, an employee shall forfeit
45     accrual of service credit, employer retirement related contributions, including employer
46     contributions to the employer sponsored defined contribution plans, or other retirement related
47     benefits from a system or plan under this title in accordance with this section.
48          (b) The forfeiture of retirement related benefits under Subsection (2)(a) does not
49     include the employee's contribution to a defined contribution plan.
50          (3) An employee shall forfeit the benefits described under Subsection (2)(a):
51          (a) if the employee is convicted of an employment related offense;
52          (b) beginning on the day on which the employment related offense occurred; and
53          (c) until the employee is either:
54          (i) re-elected or reappointed to office; or
55          (ii) (A) terminated from the position for which the employee was found to have
56     committed an employment related offense; and

57          (B) rehired or hired as an employee who is eligible to be a member of a Utah state
58     retirement system or plan.
59          (4) The employee's participating employer shall:
60          (a) immediately notify the office:
61          (i) if an employee is charged with an offense that is or may be an employment related
62     offense under this section; and
63          (ii) if the employee described in Subsection (4)(a)(i) is acquitted of the offense that is
64     or may be an employment related offense under this section; and
65          (b) if the employee is convicted of an offense that may be an employment related
66     offense:
67          (i) conduct an investigation, which may rely on the conviction, to determine:
68          (A) whether the conviction is for an employment related offense; and
69          (B) the date on which the employment related offense was initially committed; and
70          (ii) after the period of time for an appeal by an employee under Subsection (5),
71     immediately notify the office of the employer's determination under this Subsection (4)(b).
72          (5) An employee may appeal the employee's participating employer's determination
73     under Subsection (4)(b) in accordance with Title 63G, Chapter 4, Administrative Procedures
74     Act.
75          (6) (a) Notwithstanding Subsection (4), a district attorney, a county attorney, the
76     attorney general's office, or the state auditor may notify the office and the employee's
77     participating employer if an employee is charged with an offense that is or may be an
78     employment related offense under this section.
79          (b) If the employee's participating employer receives a notification under Subsection
80     (6)(a), the participating employer shall immediately report to the entity that provided the
81     notification under Subsection (6)(a):
82          (i) if the employee is acquitted of the offense;
83          (ii) if the employee is convicted of an offense that may be an employment related
84     offense; and
85          (iii) when the participating employer has concluded its duties under this section if the
86     employee is convicted, including conducting an investigation, making a determination under
87     Subsection (4)(b) that the conviction was for an employment related offense, and notifying the

88     office under Subsection (7).
89          (c) The notifying entity under Subsection (6)(a) may assist the employee's participating
90     employer with the investigation and determination described under Subsection (4)(b).
91          [(6)] (7) Upon receiving a notification from a participating employer that the
92     participating employer has made a determination under Subsection (4)(b) that the conviction
93     was for an employment related offense, the office shall immediately forfeit any service credit,
94     employer retirement related contributions, including employer contributions to the employer
95     sponsored contribution plans, or other retirement related benefits accrued by or made for the
96     benefit of the employee, beginning on the date of the initial employment related offense
97     determined under Subsection (4)(b).
98          [(7)] (8) This section applies to an employee who is convicted on or after the effective
99     date of this act for an employment related offense.
100          [(8)] (9) The board may make rules to implement this section.
101          [(9)] (10) If any provision of this section, or the application of any provision to any
102     person or circumstance, is held invalid, the remainder of this section shall be given effect
103     without the invalid provision or application.
104          Section 2. Effective date.
105          This bill takes effect on July 1, 2018.