UT
Utah House Bill HB0267

Utah 2025 Regular Session

Utah House Bill HB0267 Compare Versions

OldNewDifferences
1-Enrolled Copy H.B. 267
1+02-04 20:23 4th Sub. (Green) H.B. 267
2+Kirk A. Cullimore proposes the following substitute bill:
23 1
34 Public Sector Labor Union Amendments
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Jordan D. Teuscher
78 Senate Sponsor: Kirk A. Cullimore
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
1516 This bill amends provisions governing public employee, public safety, and public fire labor
1617 6
1718 organizations.
1819 7
1920 Highlighted Provisions:
2021 8
2122 This bill:
2223 9
2324 ▸ defines terms;
2425 10
2526 ▸ requires a labor organization for which a public employer collects union dues to provide
2627 11
2728 an annual accounting to the labor organization members and to the Labor Commission;
2829 12
2930 ▸ prohibits a public employer from recognizing a labor organization as a bargaining agent
3031 13
3132 for public employees;
3233 14
3334 ▸ prohibits a public employer from entering into collective bargaining contracts;
3435 15
3536 ▸ prohibits using public money or public property to assist, promote, or deter union
3637 16
3738 organizing or administration;
3839 17
3940 ▸ excludes new labor organization employees from participating in Utah Retirement
4041 18
4142 Systems;
4243 19
4344 ▸ authorizes the state risk manager to acquire and administer professional liability insurance
4445 20
4546 for:
4647 21
47-● disputes between a K-12 personnel and a public employer; and
48+● K-12 personnel; and
4849 22
4950 ● other public employees if there is a sufficient demand; and
5051 23
5152 ▸ makes technical and conforming changes.
5253 24
5354 Money Appropriated in this Bill:
5455 25
5556 None
5657 26
5758 Other Special Clauses:
5859 27
59-This bill provides a special effective date. H.B. 267 Enrolled Copy
60+This bill provides a special effective date.
6061 28
6162 Utah Code Sections Affected:
63+4th Sub. H.B. 267 4th Sub. (Green) H.B. 267 02-04 20:23
6264 29
6365 AMENDS:
6466 30
6567 10-3-1109, as enacted by Laws of Utah 2003, Chapter 284
6668 31
6769 17-33-11.5, as enacted by Laws of Utah 2003, Chapter 284
6870 32
6971 17B-1-804, as last amended by Laws of Utah 2023, Chapter 15
7072 33
73+34-34-16, as enacted by Laws of Utah 1969, Chapter 85
74+34
7175 49-11-202, as last amended by Laws of Utah 2020, Chapter 352
72-34
76+35
7377 49-11-205, as last amended by Laws of Utah 2023, Chapter 16
74-35
78+36
7579 49-12-202, as last amended by Laws of Utah 2023, Chapter 328
76-36
80+37
7781 49-13-202, as last amended by Laws of Utah 2023, Chapter 328
78-37
82+38
7983 49-22-202, as last amended by Laws of Utah 2018, Chapter 415
80-38
84+39
8185 63A-4-101.5, as last amended by Laws of Utah 2022, Chapter 169
82-39
86+40
8387 ENACTS:
84-40
88+41
8589 34-32-202, Utah Code Annotated 1953
86-41
90+42
8791 49-11-627, Utah Code Annotated 1953
88-42
92+43
8993 RENUMBERS AND AMENDS:
90-43
94+44
9195 34-32-101, (Renumbered from 34-32-1, as last amended by Laws of Utah 2011, Chapter
92-44
96+45
9397 220)
94-45
98+46
9599 34-32-102, (Renumbered from 34-32-1.1, as last amended by Laws of Utah 2023,
96-46
100+47
97101 Chapter 16)
98-47
102+48
99103 34-32-201, (Renumbered from 34-32-2, as enacted by Laws of Utah 1969, Chapter 85)
100-48
104+49
101105 34-32-301, (Renumbered from 34-32-3, as last amended by Laws of Utah 2018, Chapter
102-49
106+50
103107 148)
104-50
108+51
105109 34-32-401, (Renumbered from 34-32-4, as last amended by Laws of Utah 2011, Chapter
106-51
110+52
107111 297)
108-52
112+53
109113 REPEALS:
110-53
114+54
111115 34-20a-1, as last amended by Laws of Utah 1995, Chapter 20
112-54
116+55
113117 34-20a-2, as last amended by Laws of Utah 1995, Chapter 20
114-55
118+56
115119 34-20a-3, as enacted by Laws of Utah 1975, Chapter 102
116-56
120+57
117121 34-20a-4, as enacted by Laws of Utah 1975, Chapter 102
118-57
122+58
119123 34-20a-5, as enacted by Laws of Utah 1975, Chapter 102
120-58
124+59
121125 34-20a-6, as last amended by Laws of Utah 1995, Chapter 20
122-59
126+60
123127 34-20a-7, as enacted by Laws of Utah 1975, Chapter 102
124-60
128+61
125129 34-20a-8, as enacted by Laws of Utah 1975, Chapter 102
126-61
130+62
127131 34-20a-9, as enacted by Laws of Utah 1975, Chapter 102
128-- 2 - Enrolled Copy H.B. 267
129-62
132+- 2 - 02-04 20:23 4th Sub. (Green) H.B. 267
133+63
130134
131-63
135+64
132136 Be it enacted by the Legislature of the state of Utah:
133-64
137+65
134138 Section 1. Section 10-3-1109 is amended to read:
135-65
139+66
136140 10-3-1109 . Compliance with Labor Code requirements.
137-66
141+67
138142 Each municipality shall comply with the requirements of Section [34-32-1.1] 34-32-102.
139-67
143+68
140144 Section 2. Section 17-33-11.5 is amended to read:
141-68
145+69
142146 17-33-11.5 . Compliance with Labor Code requirements.
143-69
147+70
144148 Each county shall comply with the requirements of Section [34-32-1.1] 34-32-102.
145-70
149+71
146150 Section 3. Section 17B-1-804 is amended to read:
147-71
151+72
148152 17B-1-804 . Compliance with Labor Code requirements.
149-72
153+73
150154 Each special district shall comply with the requirements of Section [34-32-1.1] 34-32-102.
151-73
155+74
152156 Section 4. Section 34-32-101, which is renumbered from Section 34-32-1 is renumbered
153-74
157+75
154158 and amended to read:
155-75
159+76
156160
157161 CHAPTER 32. PUBLIC SECTOR LABOR ORGANIZATIONS
158-76
162+77
159163
160164 Part 1. General Provisions
161-77
165+78
162166 [34-32-1] 34-32-101 . Definitions.
163-78
167+79
164168 [(1)] As used in this [section] chapter:
165-79
169+80
166170 [(a) "Employee" means a person employed by any person, partnership, public, private,
167-80
171+81
168172 or municipal corporation, school district, the state, or any political subdivision of the
169-81
173+82
170174 state.]
171-82
175+83
172176 [(b) "Employer" means the person or entity employing an employee.]
173-83
177+84
174178 [(c)(i) "Labor organization" means a lawful organization of any kind that is
175-84
179+85
176180 composed, in whole or in part, of employees, and that exists for the purpose, in
177-85
181+86
178182 whole or in part, of dealing with employers concerning grievances, labor disputes,
179-86
183+87
180184 wages, rates of pay, hours of employment, or other terms and conditions of
181-87
185+88
182186 employment.]
183-88
187+89
184188 [(ii) Except as provided in Subsection (1)(c)(iii), "labor organization" includes each
185-89
189+90
186190 employee association and union for employees of public and private sector
187-90
191+91
188192 employers.]
189-91
193+92
190194 [(iii) "Labor organization" does not include organizations governed by the National
191-92
195+93
192196 Labor Relations Act, 29 U.S.C. Sec. 151 et seq. or the Railroad Labor Act, 45
193-93
197+94
194198 U.S.C. Sec. 151 et seq.]
195-94
199+95
196200 [(d) "Union dues" means dues, fees, money, or other assessments required as a condition
197-- 3 - H.B. 267 Enrolled Copy
198-95
201+- 3 - 4th Sub. (Green) H.B. 267 02-04 20:23
202+96
199203 of membership or participation in a labor organization.]
200-96
204+97
201205 [(2) An employee may direct an employer, in writing, to deduct from the employee's wages
202-97
206+98
203207 a specified sum for union dues, not to exceed 3% per month, to be paid to a labor
204-98
208+99
205209 organization designated by the employee.]
206-99
210+100
207211 [(3) An employer shall promptly commence or cease making deductions for union dues
208-100
212+101
209213 from the wages of an employee for the benefit of a labor organization when the
210-101
214+102
211215 employer receives a written communication from the employee directing the employer
212-102
216+103
213217 to commence or cease making deductions.]
214-103
218+104
215219 [(4) An employee's request that an employer cease making deductions may not be
216-104
220+105
217221 conditioned upon a labor organization's:]
218-105
222+106
219223 [(a) receipt of advance notice of the request; or]
220-106
224+107
221225 [(b) prior consent to cessation of the deductions.]
222-107
226+108
223227 [(5) A labor organization is not liable for any claim, service, or benefit that is:]
224-108
228+109
225229 [(a) available only to a member of the labor organization; and]
226-109
230+110
227231 [(b) terminated as a result of an employee's request that the employer cease making
228-110
232+111
229233 deductions for union dues.]
230-111
234+112
231235 [(6) An employee may join a labor organization or terminate membership at any time. A
232-112
236+113
233237 person may not place a restriction on the time that an employee may join, or terminate
234-113
238+114
235239 membership with, a labor organization.]
236-114
240+115
237241 [(7) An employee may not waive a provision of this section.]
238-115
239-(1) "Employee" means an individual employed by a person, partnership, public, private, or
240242 116
241-municipal corporation, school district, the state, or a political subdivision of the state.
243+(1) "Class" means a group of public employees not represented by a labor organization for
242244 117
243-(2) "Employer" means the person employing an employee.
245+purposes of collective bargaining.
244246 118
245-(3)(a) "Labor organization" means a lawful organization of any kind that is composed, in
247+(2) "Collective bargaining unit" means a group of public employees:
246248 119
247-whole or in part, of employees, and that exists for the purpose, in whole or in part, of
249+(a) represented by a single labor organization for purposes of collective bargaining; and
248250 120
249-dealing with employers concerning grievances, labor disputes, wages, rates of pay,
251+(b) that consists of members and not members.
250252 121
251-hours of employment, or other terms and conditions of employment.
253+(3)(a) "Labor organization" means a formal organization of any kind that:
252254 122
253-(b) Except as provided in Subsection (3)(c), "labor organization" includes each
255+(i) is independent of the public employer; and
254256 123
255-employee association and union for employees of public and private sector
257+(ii) exists for the purpose, in whole or in part, of dealing with public employers
256258 124
257-employers.
259+concerning grievances, labor disputes, wages, rates of pay, hours of employment,
258260 125
259-(c) "Labor organization" does not include an organization that has entered into a labor
261+or other terms and conditions of employment.
260262 126
261-agreement or labor protective agreement under the Urban Mass Transportation Act,
263+(b) Except as provided in Subsection (4)(c), "labor organization" includes:
262264 127
263-49 U.S.C. Sec. 5333(b).
265+(i) a labor union, an employee council, or a worker committee; and
264266 128
265-(4) "Political purposes" means an act done with the intent or in a way to influence or tend to
266-- 4 - Enrolled Copy H.B. 267
267+(ii) an employee association or a union for employees of both public sector and
267268 129
269+private sector employers.
270+- 4 - 02-04 20:23 4th Sub. (Green) H.B. 267
271+130
272+(c) "Labor organization" does not include:
273+131
274+(i) an organization that has entered into a labor agreement or labor protective
275+132
276+agreement under the Urban Mass Transportation Act, 49 U.S.C. Sec. 5333(b); or
277+133
278+(ii) an organization that performs a public employer's internal functions, such as
279+134
280+human resources or legal services, whether performed directly by the public
281+135
282+employer or through a third-party contractor.
283+136
284+(4) "Member" means a public employee who is a member of a labor organization.
285+137
286+(5) "Political purposes" means an act done with the intent or in a way to influence or tend to
287+138
268288 influence, directly or indirectly, an individual to refrain from voting or to vote for or
269-130
289+139
270290 against any candidate for public office at any caucus, political convention, primary, or
271-131
291+140
272292 election.
273-132
274-(5) "Public employee" means an individual employed by a public employer.
275-133
276-(6) "Public employer" means an employer that is:
277-134
293+141
294+(6) "Public employee" means an individual employed by a public employer.
295+142
296+(7) "Public employer" means an employer that is:
297+143
278298 (a) the state of Utah or any administrative subunit of the state;
279-135
299+144
280300 (b) a state institution of higher education; or
281-136
282-(c) a municipal corporation, a county, a municipality, a school district, a special district,
283-137
284-a special service district, or any other political subdivision of the state.
285-138
286-(7) "Public money" means the same as that term is defined in Section 76-1-101.5.
287-139
288-(8)(a) "Public property" means real property, personal property, or intellectual property
289-140
301+145
302+(c) a county, a municipality, a school district, a charter school, a special district, a
303+146
304+special service district, or any other political subdivision of the state.
305+147
306+(8) "Public money" means the same as that term is defined in Section 76-1-101.5.
307+148
308+(9)(a) "Public property" means real property, personal property, or intellectual property
309+149
290310 that is owned, held, or managed by a public employer.
291-141
311+150
292312 (b) "Public property" includes a website, computer program, record, or data that is
293-142
313+151
294314 owned, held, or managed by a public employer.
295-143
296-(9) "Representative" means a labor organization representative.
297-144
298-(10)(a) "Union activity" means an activity that a labor organization, a member, or a
299-145
315+152
316+(10) "Representative" means a labor organization representative.
317+153
318+(11)(a) "Union activity" means an activity that a labor organization, a member, or a
319+154
300320 representative performs that relates to:
301-146
321+155
302322 (i) advocating the general interests of members in wages, benefits, or terms and
303-147
323+156
304324 conditions of employment;
305-148
325+157
306326 (ii) enforcing the labor organization's internal policies and procedures;
307-149
308-(iii) fulfilling the labor organization's obligations;
309-150
310-(iv) advancing the labor organization's external relations; or
311-151
312-(v) union organizing.
313-152
314-(b) "Union activity" does not include advocating for a public employee in a specific
315-153
316-employment dispute.
317-154
318-(11) "Union dues" means dues, fees, assessments, or other money required as a condition of
319-155
327+158
328+(iii) fulfilling the labor organization's obligations; or
329+159
330+(iv) advancing the labor organization's external relations.
331+160
332+(b) "Union activity" does not include:
333+161
334+(i) advocating for a public employee in a specific employment dispute; or
335+162
336+(ii) performing a public employer's internal functions, such as human resources or
337+163
338+legal services, whether performed directly by the public employer or through a
339+- 5 - 4th Sub. (Green) H.B. 267 02-04 20:23
340+164
341+third-party contractor.
342+165
343+(12) "Union dues" means dues, fees, assessments, or other money required as a condition of
344+166
320345 membership or participation in a labor organization.
321-156
322-(12) "Union organizing" means communicating with a public employee in an effort to
323-157
324-persuade the public employee to join or support a labor organization.
325-158
346+167
326347 Section 5. Section 34-32-102, which is renumbered from Section 34-32-1.1 is renumbered
327-159
348+168
328349 and amended to read:
329-160
330-[34-32-1.1] 34-32-102 . Prohibiting public employers from collective bargaining --
331-161
332-Prohibiting the use of public money or public property for union activity.
333-162
350+169
351+[34-32-1.1] 34-32-102 . Prohibiting public employers from making payroll
352+170
353+deductions for political purposes -- Prohibiting public employers from collective
354+171
355+bargaining -- Prohibiting the use of public money or public property for union activity.
356+172
334357 [(1) As used in this section:]
335-- 5 - H.B. 267 Enrolled Copy
336-163
358+173
337359 [(a)(i) "Labor organization" means a lawful organization of any kind that is
338-164
360+174
339361 composed, in whole or in part, of employees and that exists for the purpose, in
340-165
362+175
341363 whole or in part, of dealing with employers concerning grievances, labor disputes,
342-166
364+176
343365 wages, rates of pay, hours of employment, or other terms and conditions of
344-167
366+177
345367 employment.]
346-168
368+178
347369 [(ii) Except as provided in Subsection (1)(a)(iii), "labor organization" includes each
348-169
370+179
349371 employee association and union for public employees.]
350-170
372+180
351373 [(iii) "Labor organization" does not include organizations governed by the National
352-171
374+181
353375 Labor Relations Act, 29 U.S.C. Sec. 151 et seq. or the Railroad Labor Act, 45
354-172
376+182
355377 U.S.C. Sec. 151 et seq.]
356-173
378+183
357379 [(b) "Political purposes" means an act done with the intent or in a way to influence or
358-174
380+184
359381 tend to influence, directly or indirectly, any person to refrain from voting or to vote
360-175
382+185
361383 for or against any candidate for public office at any caucus, political convention,
362-176
384+186
363385 primary, or election.]
364-177
386+187
365387 [(c) "Public employee" means a person employed by:]
366-178
388+188
367389 [(i) the state of Utah or any administrative subunit of the state;]
368-179
390+189
369391 [(ii) a state institution of higher education; or]
370-180
392+190
371393 [(iii) a municipal corporation, a county, a municipality, a school district, a special
372-181
394+191
373395 district, a special service district, or any other political subdivision of the state.]
374-182
396+192
375397 [(d) "Public employer" means an employer that is:]
376-183
398+193
377399 [(i) the state of Utah or any administrative subunit of the state;]
378-184
400+194
379401 [(ii) a state institution of higher education; or]
380-185
402+195
381403 [(iii) a municipal corporation, a county, a municipality, a school district, a special
382-186
404+196
383405 district, a special service district, or any other political subdivision of the state.]
384-187
406+197
385407 [(e) "Union dues" means dues, fees, assessments, or other money required as a condition
386-188
408+- 6 - 02-04 20:23 4th Sub. (Green) H.B. 267
409+198
387410 of membership or participation in a labor organization.]
388-189
411+199
389412 [(2)] (1) A public employer may not deduct from the wages of [its] the public employer's
390-190
391-employees any amounts to be paid to:
392-191
413+200
414+public employees any amounts to be paid to:
415+201
393416 (a) a candidate as defined in Section 20A-11-101;
394-192
417+202
395418 (b) a personal campaign committee as defined in Section 20A-11-101;
396-193
419+203
397420 (c) a political action committee as defined in Section 20A-11-101;
398-194
421+204
399422 (d) a political issues committee as defined in Section 20A-11-101;
400-195
423+205
401424 (e) a registered political party as defined in Section 20A-11-101;
402-196
425+206
403426 (f) a political fund as defined in Section 20A-11-1402; or
404-- 6 - Enrolled Copy H.B. 267
405-197
427+207
406428 (g) any entity established by a labor organization to solicit, collect, or distribute money
407-198
429+208
408430 primarily for political purposes as defined in this chapter.
409-199
431+209
410432 (2)(a) Notwithstanding Section 34-19-1, a public employer may not recognize a labor
411-200
433+210
412434 organization as a bargaining agent of public employees or collectively bargain or
413-201
435+211
414436 enter into any collective bargaining contract with a labor organization or a
415-202
437+212
416438 representative.
417-203
418-(b)(i) For a public employer with a collective bargaining agreement in effect on May
419-204
420-7, 2025, Subsection (2)(a) applies on the day on which the collective bargaining
421-205
439+213
440+(b)(i) For a public employer with a collective bargaining agreement in effect on July
441+214
442+1, 2025, Subsection (2)(a) applies on the day on which the collective bargaining
443+215
422444 agreement expires.
423-206
445+216
424446 (ii) A public employer may not enter into a new collective bargaining agreement or
425-207
447+217
426448 renew, extend, or modify an existing collective bargaining agreement.
427-208
428-(3) A public employer may not use public money or public property to:
429-209
430-(a) assist or support union activity;
431-210
432-(b) compensate a public employee or a third party for union activity; or
433-211
434-(c) provide a public employee paid leave that is in addition to the public employee's
435-212
436-regularly accrued leave to allow the public employee to participate in union activity.
437-213
449+218
450+(3)(a) A public employer may not use public money or access public property to:
451+219
452+(i) assist or support union activity;
453+220
454+(ii) compensate a public employee or a third party for union activity; or
455+221
456+(iii) provide a public employee paid leave that is in addition to the public employee's
457+222
458+regularly accrued leave to allow the public employee to participate in union
459+223
460+activity.
461+224
462+(b)(i) A public employer may allow a labor organization access to the public property
463+225
464+that is real property in accordance with the public employer's policies for
465+226
466+third-party organizations.
467+227
468+(ii) A public employer shall maintain a written policy for access to public property
469+228
470+that is real property by a third-party organization.
471+229
438472 (4) A labor organization, member, or representative may not receive public money or use
439-214
473+230
440474 public property in a manner that violates Subsection (3).
441-215
475+231
442476 (5) Nothing in Subsection (3) or (4) prohibits:
443-216
477+- 7 - 4th Sub. (Green) H.B. 267 02-04 20:23
478+232
444479 (a) a public employer from:
445-217
480+233
446481 (i) spending public money or using public property for performing an activity
447-218
482+234
448483 required by federal law or state law; or
449-219
484+235
450485 (ii) compensating a public employee for annual leave, sick leave, or other leave that
451-220
486+236
452487 the public employee accrues as a benefit of the public employee's employment,
453-221
488+237
454489 provided the public employer gives the compensation on the same terms as any
455-222
490+238
456491 other public employee;
457-223
492+239
458493 (b) a labor organization or a representative from accessing public property that is real
459-224
494+240
460495 property:
461-225
496+241
462497 (i) in the same manner and to the same extent as the public employer allows access to
463-226
498+242
464499 any other external individual or entity; or
465-227
466-(ii) on a limited case-by-case basis, at the public employer's invitation, and if the
467-228
468-public employer determines that allowing the labor organization or representative
469-229
470-access to the public property is in the public employees' best interests; or
471-230
500+243
501+(ii) if the real property is not accessible to the public:
502+244
503+(A) at the public employer's discretion; and
504+245
505+(B) in accordance with the public employer's policy;
506+246
472507 (c) a public employee from engaging in discussion with other individuals in the
473-- 7 - H.B. 267 Enrolled Copy
474-231
508+247
475509 workplace during the public employee's break or when the public employee may
476-232
477-discuss non-work related matters.
478-233
510+248
511+discuss non-work related matters; or
512+249
513+(d) a public employer spending public money for a public employee to participate in
514+250
515+union activity if the labor organization fully compensates the public employer for the
516+251
517+public money spent.
518+252
479519 [(3) The attorney general may bring an action to require a public employer to comply with
480-234
520+253
481521 the requirements of this section.]
482-235
522+254
483523 Section 6. Section 34-32-201, which is renumbered from Section 34-32-2 is renumbered
484-236
524+255
485525 and amended to read:
486-237
526+256
487527
488528 Part 2. Assignments
489-238
529+257
490530 [34-32-2] 34-32-201 . Assignments to farm organizations -- Effect.
491-239
531+258
492532 Whenever any producer of farm products within the state executes and delivers to a
493-240
533+259
494534 dealer or processor of farm products, either as a clause in a sales agreement or other instrument
495-241
535+260
496536 in writing, whereby such processor or dealer is directed to deduct a sum or a rate not exceeding
497-242
537+261
498538 3% of the price to be paid for any such produce, such processor or dealer shall deduct from the
499-243
539+262
500540 price to be paid for any farm product being sold by any such producer to any such processor or
501-244
541+263
502542 dealer, the amount so authorized and the producer or dealer shall pay the same to a farm
503-245
543+264
504544 organization as assignee.
505-246
545+265
506546 Section 7. Section 34-32-202 is enacted to read:
507-247
547+- 8 - 02-04 20:23 4th Sub. (Green) H.B. 267
548+266
508549 34-32-202 . Assignments to labor organizations -- Effect -- Reporting
509-248
550+267
510551 requirement.
511-249
552+268
512553 (1)(a) A public employee may direct a public employer, in writing, to deduct from the
513-250
554+269
514555 public employee's wages a specified sum for union dues, not to exceed 3% per
515-251
556+270
516557 month, to be paid to a labor organization designated by the public employee.
517-252
558+271
518559 (b) A public employer shall verify the labor organization is accepting union dues from
519-253
560+272
520561 the public employee before deducting the specified sum for union dues.
521-254
562+273
522563 (2) A public employer shall promptly commence or stop making deductions for union dues
523-255
564+274
524565 from the wages of a public employee for the benefit of a labor organization when the
525-256
566+275
526567 public employer receives a written communication from the public employee directing
527-257
568+276
528569 the public employer to commence or stop making deductions.
529-258
570+277
530571 (3) A public employee's request that a public employer stop making deductions may not be
531-259
572+278
532573 conditioned upon a labor organization's:
533-260
574+279
534575 (a) receipt of advance notice of the request; or
535-261
576+280
536577 (b) consent to stop the deductions.
537-262
578+281
538579 (4) A labor organization is not liable for any claim, service, or benefit that is:
539-263
580+282
540581 (a) available only to a member of the labor organization; and
541-264
582+283
542583 (b) terminated as a result of a public employee's request that the public employer stop
543-- 8 - Enrolled Copy H.B. 267
544-265
584+284
545585 making deductions for union dues.
546-266
586+285
547587 (5)(a) A public employee may join a labor organization or terminate membership at any
548-267
588+286
549589 time.
550-268
590+287
551591 (b) A person may not place a restriction on the time that a public employee may join or
552-269
592+288
553593 terminate participation with a labor organization.
554-270
594+289
555595 (6) A public employee may not waive a provision of this section.
556-271
557-(7) On April 1 of each year, a labor organization that receives union dues using payroll
558-272
559-deduction shall report to the labor organization's members and to the Labor Commission
560-273
561-for the preceding calendar year:
562-274
563-(a) the amount the labor organization spent on:
564-275
565-(i) representing union members in disputes;
566-276
567-(ii) lobbying;
568-277
569-(iii) giving to political donations and other political activities; and
570-278
571-(iv) giving to affiliate or umbrella organizations; and
572-279
573-(b) the number of members in the labor organization.
574-280
596+290
597+(7) Beginning July 1, 2027, on July 1 of each year, a labor organization that receives union
598+291
599+dues from a public employee through payroll deduction shall report to the labor
600+292
601+organization's members and to the Labor Commission for the preceding calendar year,
602+293
603+the amount the labor organization spent on:
604+294
605+(a) representation of members in disputes;
606+295
607+(b) lobbying;
608+296
609+(c) political donations and other political activities; and
610+297
611+(d) payments, dues, and contributions to affiliate or umbrella organizations.
612+298
575613 (8) Nothing in this section provides public employees a right to collective bargaining.
576-281
614+299
577615 Section 8. Section 34-32-301, which is renumbered from Section 34-32-3 is renumbered
578-282
616+- 9 - 4th Sub. (Green) H.B. 267 02-04 20:23
617+300
579618 and amended to read:
580-283
619+301
581620
582621 Part 3. Enforcement
583-284
622+302
584623 [34-32-3] 34-32-301 . Failure to comply -- Penalty -- Attorney general to enforce.
585-285
624+303
586625 (1) Any employer, dealer, or processor who willfully fails to comply with the duties
587-286
626+304
588627 imposed by [this chapter] Section 34-32-102 is guilty of a class B misdemeanor.
589-287
628+305
590629 (2) The attorney general may bring a civil action to require compliance with a provision of
591-288
630+306
592631 this chapter.
593-289
632+307
594633 Section 9. Section 34-32-401, which is renumbered from Section 34-32-4 is renumbered
595-290
634+308
596635 and amended to read:
597-291
636+309
598637
599638 Part 4. Exceptions
600-292
639+310
601640 [34-32-4] 34-32-401 . Exceptions from chapter.
602-293
641+311
603642 (1) The provisions of this chapter do not apply to carriers as that term is defined in the
604-294
643+312
605644 Railway Labor Act passed by the Congress of the United States, June 21, 1934[.] , 48
606-295
645+313
607646 Stat. 1189, U.S. Code, Title 45, Section 151.
608-296
647+314
609648 (2) Nothing in this chapter is intended to, or may be construed to, preempt any requirement
610-297
649+315
611650 of federal law.
612-- 9 - H.B. 267 Enrolled Copy
613-298
614-Section 10. Section 49-11-202 is amended to read:
615-299
651+316
652+Section 10. Section 34-34-16 is amended to read:
653+317
654+34-34-16 . Right to bargain collectively not denied.
655+318
656+ Nothing in this chapter shall be construed to deny the right of private employees to
657+319
658+bargain collectively with their employer by and through labor unions, labor organizations or
659+320
660+any other type of associations.
661+321
662+Section 11. Section 49-11-202 is amended to read:
663+322
616664 49-11-202 . Establishment of Utah State Retirement Board -- Quorum -- Terms --
617-300
665+323
618666 Officers -- Expenses and per diem.
619-301
667+324
620668 (1) There is established the Utah State Retirement Board composed of seven board
621-302
669+325
622670 members determined as follows:
623-303
671+326
624672 (a) [Four] four board members, with experience in investments or banking, shall be
625-304
673+327
626674 appointed by the governor from the general public[.] ;
627-305
675+328
628676 (b) [One] one board member shall be a school employee appointed by the governor[ from
629-306
677+329
630678 at least three nominations submitted by the governing board of the school employees'
631-307
679+330
632680 association that is representative of a majority of the school employees who are
633-308
681+331
634682 members of a system administered by the board.] ;
635-309
683+332
636684 (c) [One] one board member shall be a public employee appointed by the governor[
637-310
685+- 10 - 02-04 20:23 4th Sub. (Green) H.B. 267
686+333
638687 from at least three nominations submitted by the governing board of the public
639-311
688+334
640689 employee association that is representative of a majority of the public employees who
641-312
690+335
642691 are members of a system administered by the board.] ; and
643-313
692+336
644693 (d) [One] one board member shall be the state treasurer.
645-314
694+337
646695 (2) Four board members constitute a quorum for the transaction of business.
647-315
696+338
648697 (3)(a) All appointments to the board shall be made on a nonpartisan basis, with the
649-316
698+339
650699 advice and consent of the Senate.
651-317
700+340
652701 (b) Board members shall serve until their successors are appointed and take the
653-318
702+341
654703 constitutional oath of office.
655-319
704+342
656705 (c) When a vacancy occurs on the board for any reason, the replacement shall be
657-320
706+343
658707 appointed for the unexpired term.
659-321
708+344
660709 (4)(a) Except as required by Subsection (4)(b), all appointed board members shall serve
661-322
710+345
662711 for four-year terms.
663-323
712+346
664713 (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
665-324
714+347
666715 time of appointment or reappointment, adjust the length of terms to ensure that the
667-325
716+348
668717 terms of board members are staggered so that:
669-326
718+349
670719 (i) approximately half of the board is appointed every two years; and
671-327
720+350
672721 (ii) no more than two of the board members appointed under Subsection (1)(a) are
673-328
722+351
674723 appointed every two years.
675-329
724+352
676725 (c) A board member who is appointed as a school employee or as a public employee
677-330
726+353
678727 who retires or who is no longer employed with a participating employer shall
679-331
728+354
680729 immediately resign from the board.
681-- 10 - Enrolled Copy H.B. 267
682-332
730+355
683731 (5)(a) Each year the board shall elect a president and vice president from its membership.
684-333
732+356
685733 (b) A board member may not receive compensation or benefits for the board member's
686-334
734+357
687735 service, but may receive per diem and travel expenses in accordance with:
688-335
736+358
689737 (i) Section 63A-3-106;
690-336
738+359
691739 (ii) Section 63A-3-107; and
692-337
740+360
693741 (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
694-338
742+361
695743 63A-3-107.
696-339
697-Section 11. Section 49-11-205 is amended to read:
698-340
744+362
745+Section 12. Section 49-11-205 is amended to read:
746+363
699747 49-11-205 . Membership Council established -- Members -- Chair -- Duties --
700-341
748+364
701749 Expenses and per diem.
702-342
750+365
703751 (1) There is established a Membership Council to perform the duties under Subsection (5).
704-343
752+366
705753 (2)(a) The Membership Council shall be composed of 15 council members[ selected as
706-344
754+- 11 - 4th Sub. (Green) H.B. 267 02-04 20:23
755+367
707756 follows:] .
708-345
757+368
709758 (b) The office shall select 11 council members for the Membership Council as follows:
710-346
759+369
711760 [(a)] (i) three council members shall be school employees [selected by the governing
712-347
713-board of an association ]representative of a majority of school employees who are
714-348
761+370
762+board of an association representative of a majority of school employees ]who are
763+371
715764 members of a system administered by the board;
716-349
765+372
717766 [(b)] (ii) one council member shall be a classified school employee [selected by the
718-350
719-governing board of the association ]representative of a majority of classified
720-351
721-school employees who are members of a system administered by the board;
722-352
767+373
768+governing board of the association representative of a majority of classified school
769+374
770+employees who are members] who is a member of a system administered by the
771+375
772+board;
773+376
723774 [(c)] (iii) two council members shall be public employees [selected by the governing
724-353
725-board of the association ]representative of a majority of the public employees who
726-354
775+377
776+board of the association representative of a majority of the public employees ]who
777+378
727778 are members of a system administered by the board;
728-355
779+379
729780 (iv) one council member shall be a representative of members of the Public Safety
730-356
781+380
731782 Retirement System;
732-357
783+381
733784 (v) one council member shall be a representative of paid professional firefighters who
734-358
785+382
735786 are members of the Firefighters' Retirement System;
736-359
787+383
737788 (vi) one council member shall be a retiree representing retirees, who are not public
738-360
789+384
739790 education retirees, from the Public Employees' Contributory Retirement System,
740-361
791+385
741792 Public Employees' Noncontributory Retirement System, and New Public
742-362
793+386
743794 Employees' Tier II Contributory Retirement System;
744-363
795+387
745796 (vii) one council member shall be a retiree representing the largest number of public
746-364
797+388
747798 education retirees; and
748-365
799+389
749800 (viii) one council member shall be a school business official representative of a
750-- 11 - H.B. 267 Enrolled Copy
751-366
801+390
752802 majority of the school business officials from public education employers who
753-367
803+391
754804 participate in a system administered by the board.
755-368
805+392
756806 [(g) one council member shall be a representative of members of the Public Safety
757-369
807+393
758808 Retirement Systems selected by the governing board of the association representative
759-370
809+394
760810 of the majority of peace officers who are members of the Public Safety Retirement
761-371
811+395
762812 Systems;]
763-372
813+396
764814 [(h) one council member shall be a representative of members of the Firefighters'
765-373
815+397
766816 Retirement System selected by the governing board of the association representative
767-374
817+398
768818 of the majority of paid professional firefighters who are members of the Firefighters'
769-375
819+399
770820 Retirement System;]
771-376
821+400
772822 [(i) one council member shall be a retiree selected by the governing board of the
773-377
823+- 12 - 02-04 20:23 4th Sub. (Green) H.B. 267
824+401
774825 association representing the largest number of retirees, who are not public education
775-378
826+402
776827 retirees, from the Public Employees' Contributory, Public Employees'
777-379
828+403
778829 Noncontributory, and New Public Employees' Tier II Contributory Retirement
779-380
830+404
780831 Systems;]
781-381
832+405
782833 [(j) one council member shall be a retiree selected by the governing board of the
783-382
834+406
784835 association representing the largest number of public education retirees;]
785-383
836+407
786837 [(k) one council member shall be a school business official selected by the governing
787-384
838+408
788839 board of the association representative of a majority of the school business officials
789-385
840+409
790841 from public education employers who participate in a system administered by the
791-386
842+410
792843 board; and]
793-387
844+411
794845 (c) Four members for the Membership Council are as follows:
795-388
846+412
796847 [(d)] (i) one council member shall be a municipal officer or employee selected by the
797-389
848+413
798849 governing board of the association representative of a majority of the
799-390
850+414
800851 municipalities who participate in a system administered by the board;
801-391
852+415
802853 [(e)] (ii) one council member shall be a county officer or employee selected by the
803-392
854+416
804855 governing board of the association representative of a majority of counties who
805-393
856+417
806857 participate in a system administered by the board;
807-394
858+418
808859 [(f)] (iii) one council member shall be a representative of members of the Judges'
809-395
860+419
810861 Noncontributory Retirement System selected by the Judicial Council; and
811-396
862+420
812863 [(l)] (iv) one council member shall be a special district officer or employee selected
813-397
864+421
814865 by the governing board of the association representing the largest number of
815-398
866+422
816867 special service districts and special districts who participate in a system
817-399
868+423
818869 administered by the board.
819-- 12 - Enrolled Copy H.B. 267
820-400
870+424
821871 (3)(a) Each entity granted authority to select council members under Subsection (2) may
822-401
872+425
823873 also revoke the selection at any time.
824-402
874+426
825875 (b) Each term on the council shall be for a period of four years, subject to Subsection
826-403
876+427
827877 (3)(a).
828-404
878+428
829879 (c) Each term begins on July 1 and expires on June 30.
830-405
880+429
831881 (d) When a vacancy occurs on the council for any reason, the replacement shall be
832-406
882+430
833883 selected for the remainder of the unexpired term.
834-407
884+431
835885 (4) The council shall annually designate one council member as chair.
836-408
886+432
837887 (5) The council shall:
838-409
888+433
839889 (a) recommend to the board and to the Legislature benefits and policies for members of
840-410
890+434
841891 any system or plan administered by the board;
842-411
892+- 13 - 4th Sub. (Green) H.B. 267 02-04 20:23
893+435
843894 (b) recommend procedures and practices to improve the administration of the systems
844-412
895+436
845896 and plans and the public employee relations responsibilities of the board and office;
846-413
897+437
847898 (c) examine the record of all decisions affecting retirement benefits made by a hearing
848-414
899+438
849900 officer under Section 49-11-613;
850-415
901+439
851902 (d) submit nominations to the board for the position of executive director if that position
852-416
903+440
853904 is vacant;
854-417
905+441
855906 (e) advise and counsel with the board and the director on policies affecting members of
856-418
907+442
857908 the various systems administered by the office; and
858-419
909+443
859910 (f) perform other duties assigned to it by the board.
860-420
911+444
861912 (6) A member of the council may not receive compensation or benefits for the member's
862-421
913+445
863914 service, but may receive per diem and travel expenses in accordance with:
864-422
915+446
865916 (a) Section 63A-3-106;
866-423
917+447
867918 (b) Section 63A-3-107; and
868-424
919+448
869920 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
870-425
921+449
871922 63A-3-107.
872-426
873-Section 12. Section 49-11-627 is enacted to read:
874-427
923+450
924+Section 13. Section 49-11-627 is enacted to read:
925+451
875926 49-11-627 . Withdrawing public employees' association -- Participation election
876-428
927+452
877928 date -- Withdrawal costs -- Rulemaking.
878-429
929+453
879930 (1) As used in this section, "withdrawing entity" means a public employees' association that
880-430
931+454
881932 participates in a system or plan under this title on January 1, 2025.
882-431
933+455
883934 (2) Notwithstanding any other provision of this title, a withdrawing entity shall provide for
884-432
935+456
885936 the participation of the withdrawing entity's employees with that system or plan as
886-433
937+457
887938 follows:
888-- 13 - H.B. 267 Enrolled Copy
889-434
939+458
890940 (a) the withdrawing entity shall determine a date that is before July 1, 2027, on which
891-435
941+459
892942 the withdrawing entity shall complete withdrawal under Subsection (3);
893-436
943+460
894944 (b) the withdrawing entity shall provide to the office notice of the withdrawing entity's
895-437
945+461
896946 intent to enter into an agreement described in Subsection (2)(c);
897-438
947+462
898948 (c) the withdrawing entity and the office shall enter into an intent to withdraw agreement
899-439
949+463
900950 to document a good faith arrangement to complete a withdrawal under this section;
901-440
951+464
902952 and
903-441
953+465
904954 (d) subject to Subsection (3), the withdrawing entity shall pay to the office any
905-442
955+466
906956 reasonable actuarial and administrative costs determined by the office, including an
907-443
957+467
908958 actuarially determined short-fall liability contribution and a contingency payment to
909-444
959+468
910960 provide financial protection to the remaining participating employers.
911-445
961+- 14 - 02-04 20:23 4th Sub. (Green) H.B. 267
962+469
912963 (3) The withdrawing entity shall:
913-446
964+470
914965 (a) continue the withdrawing entity's participation for all of the withdrawing entity's
915-447
966+471
916967 current employees who are covered by a system or plan on the date set under
917-448
968+472
918969 Subsection (2)(a); and
919-449
970+473
920971 (b) withdraw from participation in all systems and plans for employees initially entering
921-450
972+474
922973 employment with the withdrawing entity, beginning on the date set under Subsection
923-451
974+475
924975 (2)(a).
925-452
976+476
926977 (4) Before a withdrawing entity may withdraw under this section, the withdrawing entity
927-453
978+477
928979 and the office shall enter into an agreement on:
929-454
980+478
930981 (a) the costs described under Subsection (2)(d); and
931-455
982+479
932983 (b) arrangements for the payment of the costs described under Subsection (2)(d).
933-456
934-Section 13. Section 49-12-202 is amended to read:
935-457
984+480
985+Section 14. Section 49-12-202 is amended to read:
986+481
936987 49-12-202 . Participation of employers -- Limitations -- Exclusions -- Admission
937-458
988+482
938989 requirements -- Exceptions -- Nondiscrimination requirements.
939-459
990+483
940991 (1)(a) Unless excluded under Subsection (2), an employer is a participating employer
941-460
992+484
942993 and may not withdraw from participation in this system.
943-461
994+485
944995 (b) In addition to participation in this system, a participating employer may provide or
945-462
996+486
946997 participate in public or private retirement, supplemental or defined contribution plan,
947-463
998+487
948999 either directly or indirectly, for the participating employer's employees.
949-464
1000+488
9501001 (2) The following employers may be excluded from participation in this system:
951-465
1002+489
9521003 (a) an employer not initially admitted or included as a participating employer in this
953-466
1004+490
9541005 system prior to January 1, 1982, if:
955-467
1006+491
9561007 (i) the employer elects not to provide or participate in any type of private or public
957-- 14 - Enrolled Copy H.B. 267
958-468
1008+492
9591009 retirement, supplemental or defined contribution plan, either directly or indirectly,
960-469
1010+493
9611011 for the employer's employees, except for Social Security; or
962-470
1012+494
9631013 (ii) the employer offers another collectively bargained retirement benefit and has
964-471
1014+495
9651015 continued to do so on an uninterrupted basis since that date;
966-472
1016+496
9671017 (b) an employer that is a charter school authorized under Title 53G, Chapter 5, Part 3,
968-473
1018+497
9691019 Charter School Authorization, and does not elect to participate in accordance with
970-474
1020+498
9711021 Section 53G-5-407;
972-475
1022+499
9731023 (c) an employer that is a hospital created as a special service district under Title 17D,
974-476
1024+500
9751025 Chapter 1, Special Service District Act, that makes an election of nonparticipation in
976-477
1026+501
9771027 accordance with Subsection (4); or
978-478
1028+502
9791029 (d) an employer that is licensed as a nursing care facility under Title 26B, Chapter 2,
980-479
1030+- 15 - 4th Sub. (Green) H.B. 267 02-04 20:23
1031+503
9811032 Part 2, Health Care Facility Licensing and Inspection, and created as a special service
982-480
1033+504
9831034 district under Title 17D, Chapter 1, Special Service District Act, in a rural area of the
984-481
1035+505
9851036 state that makes an election of nonparticipation in accordance with Subsection (4).
986-482
1037+506
9871038 (3)(a) An employer who did not become a participating employer in this system prior to
988-483
1039+507
9891040 July 1, 1986, may not participate in this system.
990-484
1041+508
9911042 (b) A public employees' association may not become a participating employer after
992-485
1043+509
9931044 January 1, 2025.
994-486
1045+510
9951046 (4)(a)(i) Until June 30, 2009, a employer that is a hospital created as a special service
996-487
1047+511
9971048 district under Title 17D, Chapter 1, Special Service District Act, may make an
998-488
1049+512
9991050 election of nonparticipation as an employer for retirement programs under this
1000-489
1051+513
10011052 chapter.
1002-490
1053+514
10031054 (ii) Until June 30, 2014, an employer that is licensed as a nursing care facility under
1004-491
1055+515
10051056 Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection, and
1006-492
1057+516
10071058 created as a special service district under Title 17D, Chapter 1, Special Service
1008-493
1059+517
10091060 District Act, in a rural area of the state may make an election of nonparticipation
1010-494
1061+518
10111062 as an employer for retirement programs under this chapter.
1012-495
1063+519
10131064 (b) An election provided under Subsection (4)(a):
1014-496
1065+520
10151066 (i) is a one-time election made no later than the time specified under Subsection (4)(a);
1016-497
1067+521
10171068 (ii) shall be documented by a resolution adopted by the governing body of the special
1018-498
1069+522
10191070 service district;
1020-499
1071+523
10211072 (iii) is irrevocable; and
1022-500
1073+524
10231074 (iv) applies to the special service district as the employer and to all employees of the
1024-501
1075+525
10251076 special service district.
1026-- 15 - H.B. 267 Enrolled Copy
1027-502
1077+526
10281078 (c) The governing body of the special service district may offer employee benefit plans
1029-503
1079+527
10301080 for special service district's employees:
1031-504
1032-(i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
1033-505
1034-or
1035-506
1081+528
1082+(i) under [Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act]
1083+529
1084+Chapter 20, Public Employees' Benefit and Insurance Program Act; or
1085+530
10361086 (ii) under any other program.
1037-507
1087+531
10381088 (5)(a) If a participating employer purchases service credit on behalf of a regular full-time
1039-508
1089+532
10401090 employee for service rendered prior to the participating employer's admission to this
1041-509
1091+533
10421092 system, the participating employer shall:
1043-510
1093+534
10441094 (i) purchase service credit in a nondiscriminatory manner on behalf of all current and
1045-511
1095+535
10461096 former regular full-time employees who were eligible for service credit at the time
1047-512
1097+536
10481098 service was rendered; and
1049-513
1099+- 16 - 02-04 20:23 4th Sub. (Green) H.B. 267
1100+537
10501101 (ii) comply with the provisions of Section 49-11-403, except for the requirement
1051-514
1102+538
10521103 described in Subsection 49-11-403(2)(a).
1053-515
1104+539
10541105 (b) For a purchase made under this Subsection (5), an employee is not required to:
1055-516
1106+540
10561107 (i) have at least four years of service credit before the purchase can be made; or
1057-517
1108+541
10581109 (ii) forfeit service credit or any defined contribution balance based on the employer
1059-518
1110+542
10601111 contributions under any other retirement system or plan based on the period of
1061-519
1112+543
10621113 employment for which service credit is being purchased.
1063-520
1064-Section 14. Section 49-13-202 is amended to read:
1065-521
1114+544
1115+Section 15. Section 49-13-202 is amended to read:
1116+545
10661117 49-13-202 . Participation of employers -- Limitations -- Exclusions -- Admission
1067-522
1118+546
10681119 requirements -- Nondiscrimination requirements -- Service credit purchases.
1069-523
1120+547
10701121 (1)(a) Unless excluded under Subsection (2), an employer is a participating employer
1071-524
1122+548
10721123 and may not withdraw from participation in this system.
1073-525
1124+549
10741125 (b) In addition to participation in this system, a participating employer may provide or
1075-526
1126+550
10761127 participate in any additional public or private retirement, supplemental or defined
1077-527
1128+551
10781129 contribution plan, either directly or indirectly, for the participating employer's
1079-528
1130+552
10801131 employees.
1081-529
1132+553
10821133 (2) The following employers may be excluded from participation in this system:
1083-530
1134+554
10841135 (a) an employer not initially admitted or included as a participating employer in this
1085-531
1136+555
10861137 system before January 1, 1982, if:
1087-532
1138+556
10881139 (i) the employer elects not to provide or participate in any type of private or public
1089-533
1140+557
10901141 retirement, supplemental or defined contribution plan, either directly or indirectly,
1091-534
1142+558
10921143 for the employer's employees, except for Social Security; or
1093-535
1144+559
10941145 (ii) the employer offers another collectively bargained retirement benefit and has
1095-- 16 - Enrolled Copy H.B. 267
1096-536
1146+560
10971147 continued to do so on an uninterrupted basis since that date;
1098-537
1148+561
10991149 (b) an employer that is a charter school authorized under Title 53G, Chapter 5, Part 3,
1100-538
1150+562
11011151 Charter School Authorization, and does not elect to participate in accordance with
1102-539
1152+563
11031153 Section 53G-5-407;
1104-540
1154+564
11051155 (c) an employer that is a hospital created as a special service district under Title 17D,
1106-541
1156+565
11071157 Chapter 1, Special Service District Act, that makes an election of nonparticipation in
1108-542
1158+566
11091159 accordance with Subsection (5);
1110-543
1160+567
11111161 (d) an employer that is licensed as a nursing care facility under Title 26B, Chapter 2,
1112-544
1162+568
11131163 Part 2, Health Care Facility Licensing and Inspection, and created as a special service
1114-545
1164+569
11151165 district under Title 17D, Chapter 1, Special Service District Act, in a rural area of the
1116-546
1166+570
11171167 state that makes an election of nonparticipation in accordance with Subsection (5); or
1118-547
1168+- 17 - 4th Sub. (Green) H.B. 267 02-04 20:23
1169+571
11191170 (e) an employer that is a risk management association initially created by interlocal
1120-548
1171+572
11211172 agreement before 1986 for the purpose of implementing a self-insurance joint
1122-549
1173+573
11231174 protection program for the benefit of member municipalities of the association.
1124-550
1175+574
11251176 (3) If an employer that may be excluded under Subsection (2)(a)(i) elects at any time to
1126-551
1177+575
11271178 provide or participate in any type of public or private retirement, supplemental or
1128-552
1179+576
11291180 defined contribution plan, either directly or indirectly, except for Social Security, the
1130-553
1181+577
11311182 employer shall be a participating employer in this system regardless of whether the
1132-554
1183+578
11331184 employer has applied for admission under Subsection (4).
1134-555
1185+579
11351186 (4)(a) An employer may, by resolution of the employer's governing body, apply for
1136-556
1187+580
11371188 admission to this system.
1138-557
1189+581
11391190 (b) Upon approval of the resolution by the board, the employer is a participating
1140-558
1191+582
11411192 employer in this system and is subject to this title.
1142-559
1193+583
11431194 (5)(a)(i) Until June 30, 2009, a employer that is a hospital created as a special service
1144-560
1195+584
11451196 district under Title 17D, Chapter 1, Special Service District Act, may make an
1146-561
1197+585
11471198 election of nonparticipation as an employer for retirement programs under this
1148-562
1199+586
11491200 chapter.
1150-563
1201+587
11511202 (ii) Until June 30, 2014, an employer that is licensed as a nursing care facility under
1152-564
1203+588
11531204 Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection, and
1154-565
1205+589
11551206 created as a special service district under Title 17D, Chapter 1, Special Service
1156-566
1207+590
11571208 District Act, in a rural area of the state may make an election of nonparticipation
1158-567
1209+591
11591210 as an employer for retirement programs under this chapter.
1160-568
1211+592
11611212 (iii) On or before July 1, 2010, an employer described in Subsection (2)(e) may make
1162-569
1213+593
11631214 an election of nonparticipation as an employer for retirement programs under this
1164-- 17 - H.B. 267 Enrolled Copy
1165-570
1215+594
11661216 chapter.
1167-571
1217+595
11681218 (b) An election provided under Subsection (5)(a):
1169-572
1219+596
11701220 (i) is a one-time election made no later than the time specified under Subsection (5)(a);
1171-573
1221+597
11721222 (ii) shall be documented by a resolution adopted by the governing body of the
1173-574
1223+598
11741224 employer;
1175-575
1225+599
11761226 (iii) is irrevocable; and
1177-576
1227+600
11781228 (iv) applies to the employer as described in Subsection (5)(a)(i), (ii), or (iii) and to all
1179-577
1229+601
11801230 employees of that employer.
1181-578
1231+602
11821232 (c) The employer making an election under Subsection (5)(a) may offer employee
1183-579
1233+603
11841234 benefit plans for the employer's employees:
1185-580
1186-(i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
1187-581
1188-or
1189-582
1235+604
1236+(i) under [Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act]
1237+- 18 - 02-04 20:23 4th Sub. (Green) H.B. 267
1238+605
1239+Chapter 20, Public Employees' Benefit and Insurance Program Act; or
1240+606
11901241 (ii) under any other program.
1191-583
1242+607
11921243 (6)(a) If a participating employer purchases service credit on behalf of a regular full-time
1193-584
1244+608
11941245 employee for service rendered prior to the participating employer's admission to this
1195-585
1246+609
11961247 system, the participating employer shall:
1197-586
1248+610
11981249 (i) purchase service credit in a nondiscriminatory manner on behalf of all current and
1199-587
1250+611
12001251 former regular full-time employees who were eligible for service credit at the time
1201-588
1252+612
12021253 service was rendered; and
1203-589
1254+613
12041255 (ii) comply with the provisions of Section 49-11-403, except for the requirement
1205-590
1256+614
12061257 described in Subsection 49-11-403(2)(a).
1207-591
1258+615
12081259 (b) For a purchase made under this Subsection (6), an employee is not required to:
1209-592
1260+616
12101261 (i) have at least four years of service credit before the purchase can be made; or
1211-593
1262+617
12121263 (ii) forfeit service credit or any defined contribution balance based on the employer
1213-594
1264+618
12141265 contributions under any other retirement system or plan based on the period of
1215-595
1266+619
12161267 employment for which service credit is being purchased.
1217-596
1268+620
12181269 (7) A public employees' association may not become a participating employer after January
1219-597
1270+621
12201271 1, 2025.
1221-598
1222-Section 15. Section 49-22-202 is amended to read:
1223-599
1272+622
1273+Section 16. Section 49-22-202 is amended to read:
1274+623
12241275 49-22-202 . Participation of employers -- Limitations -- Exclusions -- Admission
1225-600
1276+624
12261277 requirements.
1227-601
1278+625
12281279 (1) Unless excluded under Subsection (2), an employer is a participating employer and may
1229-602
1280+626
12301281 not withdraw from participation in this system.
1231-603
1282+627
12321283 (2) The following employers may be excluded from participation in this system:
1233-- 18 - Enrolled Copy H.B. 267
1234-604
1284+628
12351285 (a) an employer not initially admitted or included as a participating employer in this
1236-605
1286+629
12371287 system before January 1, 1982, if:
1238-606
1288+630
12391289 (i) the employer elects not to provide or participate in any type of private or public
1240-607
1290+631
12411291 retirement, supplemental or defined contribution plan, either directly or indirectly,
1242-608
1292+632
12431293 for its employees, except for Social Security; or
1244-609
1294+633
12451295 (ii) the employer offers another collectively bargained retirement benefit and has
1246-610
1296+634
12471297 continued to do so on an uninterrupted basis since that date;
1248-611
1298+635
12491299 (b) an employer that is a charter school authorized under Title 53G, Chapter 5, Part 3,
1250-612
1300+636
12511301 Charter School Authorization, and does not elect to participate in accordance with
1252-613
1302+637
12531303 Section 53G-5-407; or
1254-614
1304+638
12551305 (c) an employer that is a risk management association initially created by interlocal
1256-615
1306+- 19 - 4th Sub. (Green) H.B. 267 02-04 20:23
1307+639
12571308 agreement before 1986 for the purpose of implementing a self-insurance joint
1258-616
1309+640
12591310 protection program for the benefit of member municipalities of the association.
1260-617
1311+641
12611312 (3) If an employer that may be excluded under Subsection (2)(a)(i) elects at any time to
1262-618
1313+642
12631314 provide or participate in any type of public or private retirement, supplemental or
1264-619
1315+643
12651316 defined contribution plan, either directly or indirectly, except for Social Security, the
1266-620
1317+644
12671318 employer shall be a participating employer in this system regardless of whether the
1268-621
1319+645
12691320 employer has applied for admission under Subsection (4).
1270-622
1321+646
12711322 (4)(a) An employer may, by resolution of its governing body, apply for admission to this
1272-623
1323+647
12731324 system.
1274-624
1325+648
12751326 (b) Upon approval of the resolution by the board, the employer is a participating
1276-625
1327+649
12771328 employer in this system and is subject to this title.
1278-626
1329+650
12791330 (5) If a participating employer purchases service credit on behalf of a regular full-time
1280-627
1331+651
12811332 employee for service rendered prior to the participating employer's admission to this
1282-628
1333+652
12831334 system, the participating employer:
1284-629
1335+653
12851336 (a) shall purchase credit in a nondiscriminatory manner on behalf of all current and
1286-630
1337+654
12871338 former regular full-time employees who were eligible for service credit at the time
1288-631
1339+655
12891340 service was rendered; and
1290-632
1341+656
12911342 (b) shall comply with the provisions of Section 49-11-403.
1292-633
1343+657
12931344 (6) A public employees' association may not become a participating employer after January
1294-634
1345+658
12951346 1, 2025.
1296-635
1297-Section 16. Section 63A-4-101.5 is amended to read:
1298-636
1347+659
1348+Section 17. Section 63A-4-101.5 is amended to read:
1349+660
12991350 63A-4-101.5 . Risk manager -- Appointment -- Duties.
1300-637
1351+661
13011352 (1)[(a)] As used in this section:
1302-- 19 - H.B. 267 Enrolled Copy
1303-638
1353+662
13041354 (a) "K-12 personnel" means a public employee of a local education agency.
1305-639
1355+663
13061356 (b) "Local education agency" means the same as that term is defined in Section
1307-640
1357+664
13081358 53E-1-102.
1309-641
1359+665
13101360 (2)(a) There is created within the department the Division of Risk Management.
1311-642
1361+666
13121362 (b) The executive director shall, with the approval of the governor, appoint a risk
1313-643
1363+667
13141364 manager as the division director, who shall be qualified by education and experience
1315-644
1365+668
13161366 in the management of general property and casualty insurance.
1317-645
1367+669
13181368 [(2)] (3) The risk manager shall:
1319-646
1369+670
13201370 (a) except as provided in Subsection [(4)] (5), acquire and administer the following
1321-647
1371+671
13221372 purchased by the state or any captive insurance company created by the risk manager:
1323-648
1373+672
13241374 (i) all property and casualty insurance;
1325-649
1375+- 20 - 02-04 20:23 4th Sub. (Green) H.B. 267
1376+673
13261377 (ii)(A) professional liability insurance for K-12 personnel; and
1327-650
1378+674
13281379 (B) other professional liability insurance for public employees not covered under
1329-651
1380+675
13301381 Subsection (3)(a)(ii)(A) if the risk manager determines there is sufficient
1331-652
1382+676
13321383 demand;
1333-653
1334-[(ii)] (iii) reinsurance of property[ and] , casualty insurance, and professional liability
1335-654
1384+677
1385+[(ii)] (iii) reinsurance of property and casualty insurance, professional liability
1386+678
13361387 insurance; and
1337-655
1388+679
13381389 [(iii)] (iv) subject to Section 34A-2-203, workers' compensation insurance;
1339-656
1340-[(b)]
1341-657
1390+680
13421391 (b) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
1343-658
1392+681
13441393 Rulemaking Act:
1345-659
1394+682
13461395 (i) prescribing reasonable and objective underwriting and risk control standards for:
1347-660
1396+683
13481397 (A) all covered entities of the Risk Management Fund;[ and]
1349-661
1398+684
13501399 (B) management of the professional liability insurance described in Subsection
1351-662
1400+685
13521401 (3)(a)(ii); and
1353-663
1402+686
13541403 [(B)] (C) any captive insurance company created by the risk manager;
1355-664
1404+687
13561405 (ii) prescribing the risks to be covered by the Risk Management Fund and the extent
1357-665
1406+688
13581407 to which these risks will be covered;
1359-666
1408+689
13601409 (iii) prescribing the properties, risks, deductibles, and amount limits eligible for
1361-667
1410+690
13621411 payment out of the Risk Management Fund;
1363-668
1412+691
13641413 (iv) prescribing procedures for making claims and proof of loss; and
1365-669
1414+692
13661415 (v) establishing procedures for the resolution of disputes relating to coverage or
1367-670
1416+693
13681417 claims, which may include binding arbitration;
1369-671
1418+694
13701419 (c) implement a risk management and loss prevention program for covered entities for
1371-- 20 - Enrolled Copy H.B. 267
1372-672
1420+695
13731421 the purpose of reducing risks, accidents, and losses to assist covered entities in
1374-673
1422+696
13751423 fulfilling their responsibilities for risk control and safety;
1376-674
1424+697
13771425 (d) coordinate and cooperate with any covered entity having responsibility to manage
1378-675
1426+698
13791427 and protect state properties, including:
1380-676
1428+699
13811429 (i) the state fire marshal;
1382-677
1430+700
13831431 (ii) the director of the Division of Facilities Construction and Management;
1384-678
1432+701
13851433 (iii) the Department of Public Safety;
1386-679
1434+702
13871435 (iv) institutions of higher education;
1388-680
1436+703
13891437 (v) school districts; and
1390-681
1438+704
13911439 (vi) charter schools;
1392-682
1440+705
13931441 (e) maintain records necessary to fulfill the requirements of this section;
1394-683
1442+706
13951443 (f) manage the Risk Management Fund and any captive insurance company created by
1396-684
1444+- 21 - 4th Sub. (Green) H.B. 267 02-04 20:23
1445+707
13971446 the risk manager in accordance with economically and actuarially sound principles to
1398-685
1447+708
13991448 produce adequate reserves for the payment of contingencies, including unpaid and
1400-686
1449+709
14011450 unreported claims, and may purchase any insurance or reinsurance considered
1402-687
1451+710
14031452 necessary to accomplish this objective; and
1404-688
1453+711
14051454 (g) inform the covered entity's governing body and the governor when any covered
1406-689
1455+712
14071456 entity fails or refuses to comply with reasonable risk control recommendations made
1408-690
1457+713
14091458 by the risk manager.
1410-691
1459+714
14111460 [(3)] (4) Before the effective date of any rule, the risk manager shall provide a copy of the
1412-692
1461+715
14131462 rule to each covered entity affected by it.
1414-693
1463+716
14151464 [(4)] (5) The risk manager may not use a captive insurance company created by the risk
1416-694
1465+717
14171466 manager to purchase:
1418-695
1467+718
14191468 (a) workers' compensation insurance;
1420-696
1469+719
14211470 (b) health insurance; or
1422-697
1471+720
14231472 (c) life insurance.
1424-698
1425-Section 17. Repealer.
1426-699
1473+721
1474+Section 18. Repealer.
1475+722
14271476 This bill repeals:
1428-700
1477+723
14291478 Section 34-20a-1, Title.
1430-701
1479+724
14311480 Section 34-20a-2, Definitions.
1432-702
1481+725
14331482 Section 34-20a-3, Fire fighters' right to bargain collectively.
1434-703
1483+726
14351484 Section 34-20a-4, Exclusive bargaining representative -- Selection -- Exclusions from
1436-704
1485+727
14371486 negotiating team.
1438-705
1487+728
14391488 Section 34-20a-5, Corporate authority duty -- Collective bargaining agreement --
1440-- 21 - H.B. 267 Enrolled Copy
1441-706
1489+729
14421490 No-strike clause.
1443-707
1491+730
14441492 Section 34-20a-6, Notice of request for collective bargaining -- Time.
1445-708
1493+731
14461494 Section 34-20a-7, Arbitration.
1447-709
1495+732
14481496 Section 34-20a-8, Procedure for arbitration.
1449-710
1497+733
14501498 Section 34-20a-9, Board of arbitration -- Determination -- Final and binding -- Exception
1451-711
1499+734
14521500 -- Expense.
1453-712
1454-Section 18. Effective Date.
1455-713
1501+735
1502+Section 19. Effective Date.
1503+736
14561504 This bill takes effect on July 1, 2025.
14571505 - 22 -