Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 247 (2015GS)

Sponsor

Sen. Henderson, D.

Final action

Governor Signed 3/30/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends the name of the "State Employees' Annual Leave Program II Trust Fund" to the "State Employees' Annual Leave Trust Fund";
• allows certain transfers to the State Employees' Annual Leave Trust Fund from the termination pool for annual leave liabilities and allows costs for both annual leave and annual leave II to be paid from the fund;
• prohibits a creditor from obtaining assets of the trust fund; and
• makes technical changes.

Every vote on this bill

Bill text

STATE EMPLOYEES' ANNUAL LEAVE TRUST FUND
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Deidre M. Henderson
House Sponsor: 
Steve Eliason
LONG TITLE
General Description:
This bill modifies the Utah State Personnel Management Act and the State Employees'
Annual Leave Program II Trust Fund Act by amending state employee leave provisions.
Highlighted Provisions:
This bill:
▸ amends the name of the "State Employees' Annual Leave Program II Trust Fund" to
the "State Employees' Annual Leave Trust Fund";
▸ allows certain transfers to the State Employees' Annual Leave Trust Fund from the
termination pool for annual leave liabilities and allows costs for both annual leave
and annual leave II to be paid from the fund;
▸ prohibits a creditor from obtaining assets of the trust fund; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
67-19-14.6
, as enacted by Laws of Utah 2014, Chapter 437
67-19f-101
, as enacted by Laws of Utah 2014, Chapter 437
67-19f-102
, as enacted by Laws of Utah 2014, Chapter 437
67-19f-201
, as enacted by Laws of Utah 2014, Chapter 437
67-19f-202
, as enacted by Laws of Utah 2014, Chapter 437
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
67-19-14.6
 is amended to read:
67-19-14.6.
Annual leave -- Definitions -- Previously accrued hours -- Recognition
of liability.
(1) As used in this section:
(a) (i) "Annual leave II" means leave hours an employing agency provides to an
employee, beginning on the change date established in Subsection (2), as time off from work
for personal use without affecting the employee's pay.
(ii) "Annual leave II" does not include:
(A) legal holidays under Section 
63G-1-301
;
(B) time off as compensation for actual time worked in excess of an employee's
defined work period;
(C) sick leave;
(D) paid or unpaid administrative leave; or
(E) other paid or unpaid leave from work provided by state statute, administrative rule,
or by federal law or regulation.
(b) "Change date" means the date established by the Division of Finance under
Subsection (2) when annual leave II begins for a state agency.
(2) In accordance with the Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the Division of Finance shall establish a date that is no later than January 2, 2016, when a state
agency shall offer annual leave II in lieu of annual leave to an employee who is eligible to
receive paid leave.
(3) An employing agency shall allow an employee who has an unused balance of
accrued annual leave before the change date, to use the annual leave under the same rules that
applied to the leave on the change date.
(4) (a) At the time of employee accrual of annual leave II, an employing agency shall
set aside the cost of each hour of annual leave II for each eligible employee in an amount
determined in accordance with rules made by the Division of Finance.
(b) The rules made under Subsection (4)(a) shall consider:
(i) the employee hourly rate of pay;
(ii) applicable employer paid taxes that would be required if the employee was paid for
the annual leave II instead of using it for time off;
(iii) other applicable employer paid benefits; and
(iv) adjustments due to employee hourly rate changes, including the effect on accrued
annual leave II balances.
(c) The Division of Finance shall provide that the amount of costs set aside under
Subsection (4)(a) and deposited into the fund increase by at least the projected increase in
annual leave liability for that year, until the year-end trust fund balances are reached as required
under Subsection 
67-19f-201
(3)(b).
(5) The cost set aside under Subsection (4) shall be deposited by the Division of
Finance into the State Employees' Annual Leave [
Program II
] Trust Fund created in Section
67-19f-201
.
(6) For annual leave hours accrued before the change date, an employing agency shall
continue to comply with the Division of Finance requirements for contributions to the
termination pool.
(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(a) the department shall make rules for the accrual and use of annual leave II provided
under this section; and
(b) the Division of Finance shall make rules for the set aside provisions under
Subsections (4) and (5).
Section 2. Section 
67-19f-101
 is amended to read:
CHAPTER 19f. STATE EMPLOYEES' ANNUAL LEAVE
TRUST FUND ACT
67-19f-101.
Title.
This chapter is known as the "State Employees' Annual Leave [
Program II
] Trust Fund
Act."
Section 3. Section 
67-19f-102
 is amended to read:
67-19f-102.
Definitions.
As used in this chapter:
(1) "Annual leave II" is as defined in Section 
67-19-14.6
.
(2) "Board of trustees" or "board" means the board of trustees created in Section
67-19f-202
.
(3) "Income" means the revenues received by the state treasurer from investments of
the trust fund principal.
(4) "Trust fund" means the State Employees' Annual Leave [
Program II
] Trust Fund
created in Section 
67-19f-201
.
Section 4. Section 
67-19f-201
 is amended to read:
67-19f-201.
Trust fund -- Creation -- Oversight -- Dissolution.
(1) There is created a trust fund entitled the "State Employees' Annual Leave [
Program
II
] Trust Fund."
(2) The trust fund consists of:
(a) ongoing revenue provided from a state agency set aside for accrued annual leave II
required under Section 
67-19-14.6
;
(b) appropriations made to the trust fund by the Legislature, if any;
(c) transfers from the termination pool described in Subsection 
67-19-14.6
(6) made by
the Division of Finance to the trust fund for annual leave liabilities accrued before the change
date established under Section 
67-19-14.6
;
[
(c)
] 
(d)
 income; and
[
(d)
] 
(e)
 revenue received from other sources.
(3) 
(a)
 The Division of Finance shall account for the receipt and expenditures of trust
fund money.
(b) The Division of Finance shall make the necessary adjustments to the amount of set
aside costs required under Subsection 
67-19-14.6
(4)(a) to provide that upon the trust fund's
accrual of funding equal to 10% of the annual leave liability, year-end trust fund balances
remain equal to at least 10% of the total state employee annual leave liability.
(4) (a) The state treasurer shall invest trust fund money by following the procedures
and requirements of Part 3, Investment of Trust Funds.
(b) (i) The trust fund shall earn interest.
(ii) The state treasurer shall deposit all interest or other income earned from investment
of the trust fund back into the trust fund.
(5) The board of trustees created in Section 
67-19f-202
 may expend money from the
trust fund for:
(a) reimbursement to the employer of the costs paid to the trust fund in accordance
with Section 
67-19-14.6
 as annual leave II is used by an employee; [
and
]
(b) payments based on accrued annual leave and on accrued annual leave II that are
made upon termination of an employee; and
[
(b)
] 
(c)
 reasonable administrative costs that the board of trustees incurs in performing
its duties as trustee of the trust fund.
(6) The board of trustees shall ensure that:
(a) money deposited into the trust fund is [
expended only for the costs of annual leave
II, including any allotted benefits under Subsection 
67-19-14.6
(4)
] 
irrevocable and is expended
only for the costs described in Subsection (5)
; and
(b) assets of the trust fund are dedicated to providing 
annual leave and
 annual leave II
established by statute and rule.
(7) A creditor of the board of trustees or a state agency liable for annual leave benefits
may not seize, attach, or otherwise obtain assets of the trust fund.
Section 5. Section 
67-19f-202
 is amended to read:
67-19f-202.
Board of trustees of the State Employees' Annual Leave Trust Fund.
(1) (a) There is created a board of trustees of the State Employees' Annual Leave
[
Program II
] Trust Fund composed of the following three members:
(i) the state treasurer or the state treasurer's designee;
(ii) the director of the Division of Finance or the director's designee; and
(iii) the executive director of the Governor's Office of Management and Budget or the
executive director's designee.
(b) The state treasurer is chair of the board.
(c) Three members of the board is a quorum.
(d) A member may not receive compensation or benefits for the member's service, but
may receive per diem and travel expenses as allowed in:
(i) Section 
63A-3-106
;
(ii) Section 
63A-3-107
; and
(iii) rules made by the Division of Finance according to Sections 
63A-3-106
 and
63A-3-107
.
(e) (i) Except as provided in Subsection (1)(e)(ii), the state treasurer shall staff the
board of trustees.
(ii) The Division of Finance shall provide accounting services for the trust fund.
(2) The board shall:
(a) on behalf of the state, act as trustee of the trust fund created under Section
67-19f-201
 and exercise the state's fiduciary responsibilities;
(b) meet at least twice per year;
(c) review and approve the policies, projections, rules, criteria, procedures, forms,
standards, performance goals, and actuarial reports for the trust fund;
(d) review and approve the budget for the trust fund;
(e) review financial records for the trust fund, including trust fund receipts,
expenditures, and investments; and
(f) do any other things necessary to perform the state's fiduciary obligations under the
trust fund.
(3) The board may:
(a) commission and obtain actuarial studies of the liabilities for the trust fund; and
(b) for purposes of the trust fund, establish labor additive rates to charge for the
administrative expenses of the trust fund.
(4) The attorney general shall:
(a) act as legal counsel and provide legal representation to the board of trustees; and
(b) attend, or direct an attorney from the Office of the Attorney General to attend, each
meeting of the board of trustees.