SB 229 — State Employee Benefits Amendments

and - 7 - SB0229 compared with SB0229S04 (D) whose employment hours are increased on or after July 1, 2013, to require an average of 20 hours per week or more for a participating employer;

or (c) the regular school year consisting of not less than eight months of full-time service for a regular full-full-time time employee of an educational institution.

Section- 3.7 - S.B.

229 Enrolled Copy Section 3.

63A-17-501.63A-17-501 .

or - 8 - SB0229 compared with SB0229S04 [(c)] (d) unused accumulated sick leave after the employee's retirement for the purchase of continuing medical and life insurance benefits under Sections 63A-17-507, 63A-17-508, and 63A-17-804.

(3) "Paid time off" means the same as that term is defined in Section 63A-17-510.1.63A-17-515.

63A-17-503.63A-17-503 .

Section- 5.8 - Enrolled Copy S.B.

229 Section 5.

63A-17-504.63A-17-504 .

- 9 - SB0229 compared with SB0229S04 (3) An employee may not convert hours of accrued annual leave or paid time off to the extent that any hours converted would:

63A-17-510.63A-17-510 .

(a)(a)(i) (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.

(D)- paid9 or- unpaidS.B. administrative leave;

229 Enrolled Copy (D) paid or unpaid administrative leave;

(4)(4)(a) - 10 - SB0229 compared with SB0229S04 (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.

(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)67-19f-201(3)(b). (b).

and (b)- the10 Division- ofEnrolled FinanceCopy shallS.B. make rules for the set aside provisions under Subsections (4) and (5).

229 (b) the Division of Finance shall make rules for the set aside provisions under Subsections (4) and (5).

Section 6.

Section 6 is enacted to read:

63A-17-510.1.

Paid time off.

(1) As used in this section:

(a) "Annual leave II" means the same as that term is defined in Section 63A-17-510.

(b) "Change date" means the date established by the Division of Finance under Subsection (2).

(c) (i) "Paid time off" means leave hours an agency provides to an employee beginning on the change date, as time off from work for personal use without affecting the employee's pay.

- 11 - SB0229 compared with SB0229S04 (ii) "Paid time off" 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.

(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the Division of Finance shall establish a date that is not later than July 1, 2027, beginning on which an agency shall offer paid time off in lieu of:

(a) annual leave II;

and (b) the sick leave offered to employees as of the change date.

(3) (a) Except as provided in Subsection (3)(b), the provisions of this section do not affect an employee's balance or use of leave hours accrued before the change date.

(b) On the change date, the Division of Finance shall convert each employee's accrued annual leave balance to paid time off at a one-to-one ratio.

(4) (a) At the time an employee accrues paid time off, the agency shall set aside the cost of each hour of paid time off for the employee in an amount determined in accordance with rules the Division of Finance makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(b) In making rules under Subsection (4)(a), the Division of Finance shall consider:

(i) the employee's hourly rate of pay;

(ii) applicable employer paid taxes that would be required if the employee were paid for the paid time off instead of the employee using it for leave;

(iii) other applicable employer paid benefits;

and (iv) adjustments due to employee hourly rate changes, including the effect on accrued paid time off balances.

(c) The Division of Finance shall deposit money set aside in accordance with Subsection (4) into the State Employees' Leave Trust Fund created in Section 67-19f-201.

- 12 - SB0229 compared with SB0229S04 (d) Subsection (4)(a) does not apply to paid time off hours that were converted from annual leave in accordance with Subsection (3), if:

(i) for converted hours that were not annual leave II hours, the agency continues to comply with the Division of Finance requirements for contributions to the termination pool;

or (ii) for converted hours that were annual leave II hours, the agency complied with the requirements of Subsection 63A-17-510(4) when the annual leave II hours were accrued.

(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division shall make rules governing the accrual and use of paid time off provided under this section.

{Section 7.

Section 63A-17-511 is amended to read:

} 63A-17-511.

Parental leave -- Postpartum recovery leave.

(1) As used in this section:

(a) "Child" means an individual who is younger than 18 years old.

(b) "Parental leave" means leave hours a state employer provides to a parental leave eligible employee to bond with a child or, in the case of a guardianship appointment, an incapacitated adult.

(c) "Parental leave eligible employee" means an employee who, on the date an event described in Subsections (2)(a)(i)(A) through (D) occurs:

(i) is an employee of a state employer;

(ii) is in a position that receives retirement benefits under Title 49, Utah State Retirement and Insurance Benefit Act;

(iii) accrues paid leave benefits that can be used in the current and future calendar years;

(iv) is not reemployed as defined in Section 49-11-1202;

(v) is assuming a parental role with respect to the child or the incapacitated adult for which parental leave is requested;

and (vi) (A) is the child's biological parent;

(B) is the spouse of the person who gave birth to the child;

(C) is the adoptive parent of the child, unless the employee is the spouse of the pre-existing parent;

(D) is the intended parent of the child and the child is born under a validated gestational agreement in accordance with [Title 78B, Chapter 15, Part 8, Gestational Agreement] Title 81, Chapter 5, Part 8, Gestational Agreement;

(E) is appointed the legal guardian of the child or the incapacitated adult;

or - 13 - SB0229 compared with SB0229S04 (F) is the foster parent of the child.

(d) "Postpartum recovery leave" means leave hours a state employer provides to a postpartum recovery leave eligible employee to recover from childbirth that occurs at 20 weeks or greater gestation.

(e) "Retaliatory action" means to do any of the following to an employee:

(i) dismiss the employee;

(ii) reduce the employee's compensation;

(iii) fail to increase the employee's compensation by an amount that the employee is otherwise entitled to or was promised;

(iv) fail to promote the employee if the employee would have otherwise been promoted;

or (v) threaten to take an action described in Subsections (1)(e)(i) through (iv).

(f) "Postpartum recovery leave eligible employee" means an employee who:

(i) is in a position that receives retirement benefits under Title 49, Utah State Retirement and Insurance Benefit Act;

(ii) accrues paid leave benefits that can be used in the current and future calendar years;

(iii) is not reemployed as defined in Section 49-11-1202;

and (iv) gives birth to a child.

(g) (i) "State employer" means:

(A) a state executive branch agency, including the State Tax Commission, the National Guard, and the Board of Pardons and Parole;

(B) the legislative branch of the state;[ or] (C) the judicial branch of the state[.] ;

or (D) the State Board of Education.

(ii) "State employer" does not include:

(A) an institute of higher education;

(B) the Utah Board of Higher Education;

(C) an independent entity as defined in Section 63E-1-102;

(D) the Attorney General's Office;

(E) the State Auditor's Office;

or (F) the State Treasurer's Office.

(h) "Qualified employee" means:

- 14 - SB0229 compared with SB0229S04 (i) a parental leave eligible employee;

or (ii) a postpartum leave eligible employee.

(2) (a) Except as provided in Subsections (4) and (5), a state employer shall:

(i) allow a parental leave eligible employee to use up to three work weeks of paid parental leave for:

(A) the birth of the parental leave eligible employee's child;

(B) the adoption of a child;

(C) the appointment of legal guardianship of a child or incapacitated adult;

or (D) the placement of a foster child in the parental leave eligible employee's care;

and (ii) allow a postpartum recovery leave eligible employee to use up to [three] nine work weeks of paid postpartum recovery leave for recovery from childbirth.

(b) A state employer shall allow a qualified employee who is part-time or who works in excess of a 40- hour work week or its equivalent to use the amount of parental leave or postpartum recovery leave available to the qualified employee under this section on a pro rata basis as adopted by rule by the division under Subsection (12).

(3) (a) Parental leave described in Subsection (2)(a)(i):

(i) may not be used before the day on which:

(A) the parental leave eligible employee's child is born;

(B) the parental leave eligible employee adopts a child;

(C) the parental leave eligible employee is appointed legal guardian of a child or incapacitated adult;

or (D) a foster child is placed in the parental leave eligible employee's care[.] ;

(ii) may not be used more than six months after the date described in Subsection (3)(a)(i);

(iii) may not be used intermittently, unless:

(A) by mutual written agreement between the state employer and the parental leave eligible employee;

or (B) a health care provider certifies that intermittent leave is medically necessary due to a serious health condition of the child;

(iv) runs concurrently with any leave authorized under the Family and Medical Leave Act of 1993, U.S.C.

Sec.

2601 et seq.;

and - 15 - SB0229 compared with SB0229S04 (v) runs consecutively to postpartum recovery leave.

(b) The amount of parental leave authorized under Subsection (2)(a)(i) does not increase if a parental leave eligible employee:

(i) has more than one child born from the same pregnancy;

(ii) adopts more than one child;

(iii) has more than one foster child placed in the parental leave eligible employee's care;

or (iv) is appointed legal guardian of more than one child or incapacitated adult.

(c) A parental leave eligible employee may not use more than three work weeks of paid parental leave within a single 12-month period, regardless of whether during that 12-month period the parental leave eligible employee:

(i) becomes the parent of more than one child;

(ii) adopts more than one child;

(iii) has more than one foster child placed in the parental leave eligible employee's care;

or (iv) is appointed legal guardian of more than one child or incapacitated adult.

(4) (a) Postpartum recovery leave described in Subsection (2)(a)(ii):

(i) shall be used starting on the day on which the postpartum recovery leave eligible employee gives birth, unless a health care provider certifies that an earlier start date is medically necessary;

(ii) shall be used in a single continuous period, unless otherwise authorized in writing by the director of the division;

(iii) runs concurrently with any leave authorized under the Family and Medical Leave Act of 1993, U.S.C.

Sec.

2601 et seq.;

and (iv) runs consecutively to parental leave.

(b) The amount of postpartum recovery leave authorized under Subsection (2)(a)(ii) does not increase if a postpartum recovery leave eligible employee has more than one child born from the same pregnancy.

(5) (a) Except as provided in Subsection (5)(b), a qualified employee shall give the state employer notice at least 30 days before the day on which the qualified employee plans to:

(i) begin using parental leave or postpartum recovery leave under this section;

and (ii) stop using postpartum recovery leave under this section.

- 16 - SB0229 compared with SB0229S04 (b) If circumstances beyond the qualified employee's control prevent the qualified employee from giving notice in accordance with Subsection (5)(a), the qualified employee shall give each notice described in Subsection (5)(a) as soon as reasonably practicable.

(6) Except as provided in Subsections (3)(a)(iv) and (4)(a)(iii), a state employer may not charge parental leave or postpartum recovery leave under this section against sick, annual, compensatory, excess, or other leave a qualified employee is entitled to.

(7) A state employer may not compensate a qualified employee for any unused parental leave or postpartum recovery leave upon termination of employment.

(8) (a) Following the expiration of a qualified employee's parental leave or postpartum recovery leave under this section, the state employer shall ensure that the qualified employee may return to:

(i) the position that the qualified employee held before using parental leave or postpartum recovery leave;

or (ii) a position within the state employer that is equivalent in seniority, status, benefits, and pay to the position that the qualified employee held before using parental leave or postpartum recovery leave.

(b) If during the time a qualified employee uses parental leave or postpartum recovery leave under this section the state employer experiences a reduction in force and, as part of the reduction in force, the qualified employee would have been separated had the qualified employee not been using the parental leave or postpartum recovery leave, the state employer may separate the qualified employee in accordance with any applicable process or procedure as if the qualified employee were not using the parental leave or postpartum recovery leave.

(9) During the time a qualified employee uses parental leave or postpartum recovery leave under this section, the qualified employee shall continue to receive all employment related benefits and payments at the same level that the qualified employee received immediately before beginning the parental leave or postpartum leave, provided that the qualified employee pays any required employee contributions.

(10) A state employer may not:

(a) interfere with or otherwise restrain a qualified employee from using parental leave or postpartum recovery leave in accordance with this section;

or - 17 - SB0229 compared with SB0229S04 (b) take retaliatory action against a qualified employee for using parental leave or postpartum recovery leave in accordance with this section.

(11) A state employer shall provide each employee written information regarding a qualified employee's right to use parental leave or postpartum recovery leave under this section.

(12) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division shall, on or before July 1, 2022, make rules for the use and administration of parental leave and postpartum recovery leave under this section, including a schedule that provides paid parental leave or postpartum recovery leave for a qualified employee who is part-time or who works in excess of a 40-hour work week on a pro rata basis.

Section 763A-17-514 is enacted to read:

63A-17-514.63A-17-514 .

and (ii)(ii)(A) (A) for a qualifying employee who is an active member in Tier I as defined in Section 49-11-102, being eligible for the employer matching retirement contribution available to a legacy qualifying employee under Section 63A-17-805;

- 18 - SB0229 compared with SB0229S04 (f) "Qualifying employee" means the same as that term is defined in Section 63A-17-805.

(2)(2)(a) (a) On or before the deadline established by the Division of Finance, each agency employee shall elect whether, on and after the change date, the employee will participate in the legacy program or the paid time off program.

(c) If an employee does not submit a timely election under Subsection (2)(a), the employee- shall11 participate- inS.B. the paid time off program.

229 Enrolled Copy employee shall participate in the paid time off program.

Section 863A-17-515 is enacted to read:

63A-17-515.63A-17-515 .

(c)(c)(i) (i) "Paid time off" means leave hours an agency provides to an employee beginning on the change date, as time off from work for personal use without affecting the employee's pay.

- 19 - SB0229 compared with SB0229S04 (i) in accordance with Section 63A-17-514, elects to participate in the paid time off program as defined in Section 63A-17-514;

and (b)- the12 sick- leaveEnrolled offeredCopy toS.B. employees as of the change date.

(3)229 (a)(b) Except as provided in Subsection (3)(b), the provisionssick ofleave thisoffered sectionto doemployees notas affect a PTO employee's balance or use of leave hours accrued before the change date.

(3)(a) Except as provided in Subsection (3)(b), the provisions of this section do not affect a PTO employee's balance or use of leave hours accrued before the change date.

(4)(4)(a) (a) At the time a PTO employee accrues paid time off, the agency shall set aside the cost of each hour of paid time off for the PTO employee in an amount determined in accordance with rules the Division of Finance makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

- 20 - SB0229 compared with SB0229S04 (i) for converted hours that were not annual leave II hours, the agency continues to comply with the Division of Finance requirements for contributions to the termination pool;

Section 963A-17-516 is enacted to read:

63A-17-516.63A-17-516 .

(2) Each agency shall ensure that the agency's leave bank program established in accordance- with13 this- section:S.B.

229 Enrolled Copy accordance with this section:

63A-17-805.63A-17-805 .

(b) "Change date" means the same as that term is defined in Section 63A-17-510.1.63A-17-515.

{[(a)](c) (c)} "Legacy employee" means an agency employee who, in accordance with Section 63A-17-514, elects to participate in the legacy program as defined in Section 63A-17-514.

- 21 - SB0229 compared with SB0229S04 (i) a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code, which is sponsored by the Utah State Retirement Board;

[(b)] (d){(f)}(f) "Qualifying employee" means an employee who is:

and (B)- accruing14 paid- leaveEnrolled benefitsCopy thatS.B. can be used in the current and future calendar years;

229 (B) accruing paid leave benefits that can be used in the current and future calendar years;

{(e)(g) {"Tier I qualifying employee" means a qualifying employee who is an active member in Tier I, as defined in Section 49-11-102.} } (f){(g)} "Tier II qualifying employee" means a qualifying employee whowho: {is an active member in Tier II, as defined in Section 49-11-102.} :

{(2)}(i) (a){(i)} is an active member in Tier II, as defined in Section 49-11-102;

(i){(a)}(a) before the change date, at a 100% match rate;

or (ii){(b)}(b) on or after the change date:

(A){(i)}(i) for a {Tier I } legacy qualifying employee, at a 100% match rate;

and (B){(ii)}(ii) {except as provided in Subsection (2)(a), } for a Tier II qualifying employee, at a 100% match rate for the first $26 the employee contributes and at a 50% match rateforrate for any amount the employee contributes above $26.

(3)(3)[(a) - 22 - SB0229 compared with SB0229S04 [(a) {(b)} {If a biweekly 50% match for a Tier II qualifying employee is an amount greater than $0 but less than $26, the Tier II qualifying employee's employer shall make that biweekly contribution in an amount equal to $26.} {[(a)} In accordance with the requirements of this Subsection (3), each qualifying employee shall be eligible to receive the same dollar amount for the contribution under Subsection (2).] [(b)] (a) A qualifying employee who is hired before July 1, 2023:

(i) shall receive the contribution amount determined under Subsection [(3)(f)] (3)(e) if the qualifying employee makes a voluntary personal contribution to one or more qualifying accounts in an amount equal to or greater than the employer's contribution amount determined under Subsection [(3)(f)] (3)(3)(e); (e);

[(c)] (b)(b)(i) (i) An employer shall automatically enroll a qualifying employee who is hired on- or15 after- JulyS.B. 1, 2023, to make a personal contribution to a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code, which is sponsored by the Utah State Retirement Board, in an amount equal to the lesser of:

(A)229 theEnrolled employer'sCopy on or after July 1, 2023, to make a personal contribution amountto determineda defined contribution plan qualified under SubsectionSection [(3)(f){]401(k) (3)(e)}.]of (3)(e);the Internal Revenue Code, which is sponsored by the Utah State Retirement Board, in an amount equal to the lesser of:

(A) the employer's contribution amount determined under Subsection [(3)(f).] (3)(e);

(ii) A qualifying employee who makes a personal contribution in accordance with Subsection [(3)(c)[(3)(c)(i)] (i)] (3)(b)(i) shall receive the lesser of:

(A) the contribution amount determined under Subsection [(3)(f){][(3)(f).] (3)(e)}.] (3)(e);

[(d)] (c)(c)(i) (i) A qualifying employee who is hired on or after July 1, 2023, may opt out of the automatic enrollment by choosing not to make any future personal contributions.

- 23 - SB0229 compared with SB0229S04 (ii) [A] Subject to Subsection (3)(d), a qualifying employee who opts out of automatic enrollment in accordance with this Subsection [(3)(d)] (3)(c) may not receive a contribution under Subsection (2).

[(e)] (d)(d)(i) (i) A qualifying employee who is hired on or after July 1, 2023, may modify the automatic enrollment by opting to make future personal contributions:

(A) in an amount other than the amount determined under Subsection [(3)(f)] {(3)(e)} (3)(b);

(ii) A qualifying employee who opts to make a personal contribution for less than the amount determined under Subsection [(3)(f)] {(3)(e)} (3)(b) shall receive a partial contribution that is equal to the qualifying employee's personal contribution amount.

[(f)] (e)(e)(i) (i) Subject to the maximum limit under Subsection [(3)(f)(iii)] (3)(e)(iii)or(3)(e)(iii) or (iv), the Legislature shall annually determine the contribution amount that an employer shall provide to each qualifying employee under Subsection (2).

(iii) [The] Before the change date, the biweekly matching contribution amount required- under16 Subsection- (2)Enrolled mayCopy notS.B. exceed $26 for each qualifying employee.

229 required under Subsection (2) may not exceed $26 for each qualifying employee.

(A) for a {Tier I } legacy qualifying employee, $26;

or (B) for a Tier II qualifying employee, the greater of 2% of the qualifying employee's biweekly salaryorsalary or $26.

- 24 - SB0229 compared with SB0229S04 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the director shall make rules establishing procedures to implement the provisions of this section.

67-19f-102.67-19f-102 .

(4) "Paid time off" means the same as that term is defined in Section 63A-17-510.1.63A-17-515.

67-19f-201.67-19f-201 .

(b) money set aside for accrued paid time off in accordance with Section 63A-17-510.1;63A-17-515;

[(c)]- (d)17 transfers- fromS.B. the termination pool described in Subsection 63A-17-510(6) made by the Division of Finance to the trust fund for annual leave liabilities accrued before the change date established under Section 63A-17-510;

229 Enrolled Copy [(c)] (d) transfers from the termination pool described in Subsection 63A-17-510(6) made by the Division of Finance to the trust fund for annual leave liabilities accrued before the change date established under Section 63A-17-510;

(3)(3)(a) (a) The Division of Finance shall account for the receipt and expenditures of trust fund money.

-(4)(a) 25 - SB0229 compared with SB0229S04 (4) (a) The state treasurer shall invest trust fund money by following the procedures and requirements of Part 3, Investment of Trust Funds.

(b)(b)(i) (i) The trust fund shall earn interest.

(a) reimbursement to the employer of the costs paid to the trust fund in accordance with Section 63A-17-510 or 63A-17-510.163A-17-515 as annual leave II or paid time off is used by an employee;

Section- 13.18 - Enrolled Copy S.B.

229 Section 13.

67-22-2.67-22-2 .

- 26 - SB0229 compared with SB0229S04 (vi) executive director, Department of Commerce;

and (vi)- commissioners,19 Public- ServiceS.B. Commission.

229 Enrolled Copy (vi) commissioners, Public Service Commission.

(2)(2)(a) (a) The director of the Division of Human Resource Management shall:

and - 27 - SB0229 compared with SB0229S04 (ii) base those recommendations on market salary studies conducted by the Division of Human Resource Management.

(b)(b)(i) (i) The Division of Human Resource Management shall determine the salary range for the appointed executives by:

(c)(c)(i) (i) Except as provided in Subsection (2)(c)(ii), in establishing the salary ranges for board or commission executives, the Division of Human Resource Management shall set the maximum salary in the salary range for each of those positions at 90% of the salary for district judges as established in the annual appropriation act under Section 67-8-2.

(3)(3)(a)(i) (a) (i) Except as provided in Subsection (3)(a)(ii) or Subsection (3)(d), the governor shall establish a specific salary for each appointed executive within the range established under Subsection (2)(2)(b). (b).

(iii)- The20 governor- mayEnrolled provideCopy salaryS.B. increases for appointed executives within the range established by Subsection (2)(b) and identified in Subsection (3)(a)(ii).

-229 28(iii) -The SB0229governor comparedmay withprovide SB0229S04salary (b)increases Thefor governorappointed shallexecutives applywithin the samerange overtimeestablished regulationsby applicableSubsection to(2)(b) otherand FLSAidentified exemptin positions.Subsection (3)(a)(ii).

(b) The governor shall apply the same overtime regulations applicable to other FLSA exempt positions.

(5)(5)(a) (a) The Legislature fixes benefits for the appointed executives and the board or commission executives as follows:

(D)- holidays;[21 and]- (E)S.B. annual leave except that annual leave shall be accrued at the maximum rate provided to Schedule B state employees;

and229 -Enrolled 29Copy -(D) SB0229holidays;[ comparedand] with(E) SB0229S04annual (F)leave paidexcept timethat off;annual leave shall be accrued at the maximum rate provided to Schedule B state employees;

and (F) paid time off;

Effective date.

3-5-26 9:17 AM - 3022 -