Enrolled Copy S.B. 50 1 Limited Purpose Local Government Entities Board of Trustees Compensation Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Calvin R. Musselman House Sponsor: Thomas W. Peterson 2 3 LONG TITLE 4 General Description: 5 This bill eliminates the compensation limit for a member of a board of trustees of a limited 6 purpose local government entity. 7 Highlighted Provisions: 8 This bill: 9 ▸ eliminates the compensation limit for a member of a board of trustees of a limited 10 purpose local government entity; 11 ▸ requires a board of trustees of a limited purpose local government entity to hold a public 12 hearing on a proposed compensation increase before implementing the compensation 13 increase; and 14 ▸ makes technical and conforming changes. 15 Money Appropriated in this Bill: 16 None 17 Other Special Clauses: 18 None 19 Utah Code Sections Affected: 20 AMENDS: 21 17B-1-307, as last amended by Laws of Utah 2023, Chapter 15 22 17D-1-305, as last amended by Laws of Utah 2023, Chapter 15 23 24 Be it enacted by the Legislature of the state of Utah: 25 Section 1. Section 17B-1-307 is amended to read: 26 17B-1-307 . Annual compensation -- Per diem compensation -- Participation in S.B. 50 Enrolled Copy 27 group insurance plan -- Reimbursement of expenses. 28 (1)(a) Except as provided in Subsection 17B-1-308(1)(e), a member of a board of 29 trustees may receive compensation for service on the board, as determined by the 30 board of trustees. 31 [(b) The amount of compensation under this Subsection (1) may not exceed $5,000 per 32 year.] 33 [(c)] (b)[(i)] As determined by the board of trustees, a member of the board of trustees 34 may participate in a group insurance plan provided to employees of the special 35 district on the same basis as employees of the special district. 36 [(ii) The amount that the special district pays to provide a member with coverage 37 under a group insurance plan shall be included as part of the member's 38 compensation for purposes of Subsection (1)(b).] 39 [(d)] (c) The amount that a special district pays employer-matching employment taxes, if 40 a member of the board of trustees is treated as an employee for federal tax purposes, 41 does not constitute compensation under this Subsection (1). 42 (2) Before a board of trustees may adopt a compensation increase for a member of the 43 board of trustees, the board of trustees shall: 44 (a) hold a public hearing on the compensation increase; and 45 (b) publish notice of the time, place, and purpose of the public hearing: 46 (i) for at least seven days before the date of the hearing; and 47 (ii) as class A notice under Section 63G-30-102. 48 (3) A public hearing described in Subsection (2)(a): 49 (a) shall be held separately from any other public hearing of the board of trustees; and 50 (b) may be held the same day as another public hearing of the board of trustees, 51 including immediately before or after the other public meeting of the board of 52 trustees. 53 (4) In addition to the compensation provided under Subsection (1), the board of trustees 54 may elect to allow a member to receive per diem and travel expenses for up to 12 55 meetings or activities per year in accordance with rules adopted by the board of trustees 56 or Section 11-55-103. 57 Section 2. Section 17D-1-305 is amended to read: 58 17D-1-305 . Compensation for administrative control board members. 59 An administrative control board member may receive compensation, per diem, and 60 reimbursement of travel expenses as provided in Section 17B-1-307 to the same extent as if - 2 - Enrolled Copy S.B. 50 61 the member were a member of a board of trustees of a special district. 62 Section 3. Effective date. 63 This bill takes effect on May 7, 2025. - 3 -