1
2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions related to the refund of excess reserves.
10 Highlighted Provisions:
11 This bill:
12 ▸ provides for the refund of excess risk pool reserves in response to an emergency.
13 Money Appropriated in this Bill:
14 None
15 Other Special Clauses:
16 This bill provides a special effective date.
17 Utah Code Sections Affected:
18 AMENDS:
19 49-20-402, as last amended by Laws of Utah 2007, Chapter 130
20
21 Be it enacted by the Legislature of the state of Utah:
22 Section 1. Section 49-20-402 is amended to read:
23 49-20-402. Reserves to be held -- Refunds.
24 (1) The reserves in a risk pool in a given fiscal year shall be maintained at the level
25 recommended by the program's consulting actuary and approved or ratified by the board. If the
26 reserves drop below that level, covered employers in the risk pool are required to cure any
27 deficiency in the reserve.
28 (2) If substantial excess reserves are accrued above those required by this chapter, and
29 the board determines that a refund is appropriate, a refund shall be made:
30 (a) to covered employers which shall then make a refund to covered individuals on the
31 basis of the contribution of each to the plan; or
32 (b) directly to covered individuals on the basis of the contribution of each to the plan.
33 (3) Notwithstanding Subsection (2), a refund of excess reserves made due to a declared
34 state of emergency:
35 (a) shall be made to covered employers;
36 (b) may not be made directly to covered individuals; and
37 (c) is not required to be made to covered individuals from covered employers.
38 Section 2. Effective date.
39 If approved by two-thirds of all the members elected to each house, this bill takes effect
40 upon approval by the governor, or the day following the constitutional time limit of Utah
41 Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
42 the date of veto override.