Text of UT HB 327 (2006)

LEGISLATIVE GENERAL COUNSEL 6 Approved for Filing: D.S Larsen 6 6 01-25-06 11:39 AM 6 H.B. 327 *HB0327* 1 PUBLIC EMPLOYER BENEFIT PLANS 2 2006 GENERAL SESSION 3 STATE OF UTAH 4 Chief Sponsor: LaVar Christensen 5 Senate Sponsor: David L. Thomas 6 7 LONG TITLE 8 General Description: 9 This bill regulates the benefit plans that may be offered by a public employer. 10 Highlighted Provisions: 11 This bill: 12 < provides definitions; 13 < allows a public employer to offer employee benefit plans that cover its employees, 14 eligible retirees, and their dependents; 15 < allows a public employer to offer optional supplemental benefit plans to cover 16 additional persons if the supplemental benefit: 17 C is specifically approved by the public employer's legislative body or governing 18 board; 19 C has its costs entirely paid by employee or eligible retiree contributions; 20 C does not have any of its costs paid by public employer contributions; and 21 C does not receive funding from a public fund of the state or its political 22 subdivisions; and 23 < supplemental benefit plans may not be established or offered through an order or 24 action of a public employer's chief executive officer. 25 Monies Appropriated in this Bill: 26 None 27 Other Special Clauses: H.B. 327 01-25-06 11:39 AM 28 None 29 Utah Code Sections Affected: 30 ENACTS: 31 11-42-101, Utah Code Annotated 1953 32 11-42-102, Utah Code Annotated 1953 33 11-42-103, Utah Code Annotated 1953 34 35 Be it enacted by the Legislature of the state of Utah: 36 Section 1. Section 11-42-101 is enacted to read: 37 CHAPTER 42. PUBLIC EMPLOYER BENEFIT PLANS ACT 38 11-42-101. Title. 39 This chapter is known as the "Public Employer Benefit Plans Act." 40 Section 2. Section 11-42-102 is enacted to read: 41 11-42-102. Definitions. 42 As used in this chapter: 43 (1) "Dependents" means an employee's or eligible retiree's: 44 (a) current spouse; and 45 (b) children, including stepchildren and legally adopted children. 46 (2) "Employee benefit plans" means any group health, dental, medical, disability, life 47 insurance, Medicare supplement, conversion coverage, cafeteria, flex plans, or other benefit 48 programs offered by a public employer. 49 (3) "Public employer" means the state and its political subdivisions, including counties, 50 municipalities, institutions of higher education, school districts and charter schools, special 51 districts, and public corporations. 52 Section 3. Section 11-42-103 is enacted to read: 53 11-42-103. Benefit plans -- Eligibility -- Supplemental benefits. 54 (1) A public employer may offer employee benefit plans to its employees and eligible 55 retirees that cover its: 56 (a) employees; 57 (b) eligible retirees; and 58 (c) the dependents of employees and eligible retirees. - 2 - 01-25-06 11:39 AM H.B. 327 59 (2) A public employer may also offer optional supplemental benefit plans that cover a 60 person not described under Subsection (1) if the benefit: 61 (a) is specifically approved by: 62 (i) a statute enacted by the Legislature; 63 (ii) an ordinance enacted by the legislative body of a county or municipality; or 64 (iii) a resolution approved by the governing board of an institution of higher education, 65 school district, charter school, special district, or other political subdivision of the state; 66 (b) has its costs entirely paid by employee or eligible retiree contributions; 67 (c) does not have any of its costs paid by public employer contributions; and 68 (d) does not receive funding from tax revenues or other public funds of the state or its 69 political subdivisions. 70 (3) Supplemental benefit plans that cover a person not described under Subsection (1) 71 may not be established or offered through an order or action of a public employer's chief 72 executive officer. Legislative Review Note as of 1-25-06 8:04 AM Based on a limited legal review, this legislation has not been determined to have a high probability of being held unconstitutional. Office of Legislative Research and General Counsel - 3 -