Vol. 2010, No. 11 (06/01/2010) PDF - Administrative Rules - Utah.gov
Vol. 2010, No. 11 (06/01/2010) PDF - Administrative Rules - Utah.gov
Vol. 2010, No. 11 (06/01/2010) PDF - Administrative Rules - Utah.gov
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DAR File <strong>No</strong>. 33634<br />
NOTICES OF PROPOSED RULES<br />
33634<br />
<strong>Administrative</strong> Services, Facilities<br />
Construction and Management<br />
R23-23<br />
Health Reform -- Health Insurance<br />
Coverage in State Contracts --<br />
Implementation<br />
NOTICE OF PROPOSED RULE<br />
(Amendment)<br />
DAR FILE NO.: 33634<br />
FILED: 05/<strong>11</strong>/<strong>2<strong>01</strong>0</strong><br />
RULE ANALYSIS<br />
PURPOSE OF THE RULE OR REASON FOR THE<br />
CHANGE: This rule is being amended to comply with H.B. 20<br />
of the <strong>2<strong>01</strong>0</strong> <strong>Utah</strong> Legislative Session which clarified and<br />
amended Section 63A-5-205. H.B. 20 amends provisions<br />
related to the requirement that contractors with certain state<br />
entities must provide qualified health insurance to their<br />
employees and the dependents of the employees who work<br />
or reside in the state. H.B. 20 clarified the waiting period;<br />
clarified that health insurance coverage must be offered to<br />
employees and dependents who work or reside in the state;<br />
clarified that the coverage that must be offered is a minimum<br />
standard and an employer may offer greater coverage;<br />
amended the definition of qualified health insurance coverage<br />
to clarify the standards; amended the enforcement provisions<br />
to provide protections for good faith compliance and clarified<br />
how an employer offering a defined contribution arrangement<br />
may comply with state contract requirements. Therefore, this<br />
rule change is being done to be consistent with state statute.<br />
(DAR NOTE: H.B. 20 (<strong>2<strong>01</strong>0</strong>) is found at Chapter 229, Laws<br />
of <strong>Utah</strong> <strong>2<strong>01</strong>0</strong>, and was effective 05/<strong>11</strong>/<strong>2<strong>01</strong>0</strong>.)<br />
SUMMARY OF THE RULE OR CHANGE: These rule<br />
changes implement the following changes to comply with<br />
H.B. 20 of the <strong>2<strong>01</strong>0</strong> <strong>Utah</strong> Legislative Session: clarify and<br />
amend provisions related to the requirement that contractors<br />
with certain state entities must provide qualified health<br />
insurance to their employees and the dependents of the<br />
employees who work or reside in the state. The changes also<br />
clarify the waiting period; clarify that health insurance<br />
coverage must be offered to employees and dependents who<br />
work or reside in the state; clarify that the coverage that must<br />
be offered is a minimum standard and an employer may offer<br />
greater coverage; amend the definition of qualified health<br />
insurance coverage to clarify the standards. The rule change<br />
also amends the enforcement provisions to provide<br />
protections for good faith compliance and clarifies how an<br />
employer offering a defined contribution arrangement may<br />
comply with state contract requirements. Therefore, this rule<br />
change is being done to be consistent with state statute.<br />
STATUTORY OR CONSTITUTIONAL AUTHORIZATION FOR<br />
THIS RULE: Section 63A-5-205<br />
ANTICIPATED COST OR SAVINGS TO:<br />
♦ THE STATE BUDGET: The statute itself created the fiscal<br />
impacts. This rule does not add additional burdens than<br />
already provided by the statute. The rule will not impact the<br />
costs.<br />
♦ LOCAL GOVERNMENTS: <strong>No</strong> costs or savings are<br />
anticipated for local <strong>gov</strong>ernments with this new rule. <strong>No</strong> new<br />
requirements were created with this new rule that impact local<br />
<strong>gov</strong>ernments.<br />
♦ SMALL BUSINESSES: <strong>No</strong> costs or savings are anticipated<br />
for small businesses with this new rule. <strong>No</strong> new requirements<br />
were created with this new rule that impact small businesses.<br />
♦ PERSONS OTHER THAN SMALL BUSINESSES,<br />
BUSINESSES, OR LOCAL GOVERNMENTAL ENTITIES:<br />
These changes may benefit individuals working for<br />
contractors that contract with the State as they and their<br />
dependents who live and/or work in the State of <strong>Utah</strong> will be<br />
offered health insurance coverage.<br />
COMPLIANCE COSTS FOR AFFECTED PERSONS: Any<br />
cost increases to contractors will likely be passed on as part<br />
of the costs of the contract that the State pays. The statute<br />
already provides the requirements that may cause cost<br />
increases. This rule itself merely complies with the statute.<br />
COMMENTS BY THE DEPARTMENT HEAD ON THE<br />
FISCAL IMPACT THE RULE MAY HAVE ON BUSINESSES:<br />
Any fiscal impacts on businesses would have been incurred<br />
when Section 63A-5-205 and Rule R23-23 were enacted in<br />
2009. This rule change is being done to be consistent with<br />
state statutes. This rule only amends provisions related to<br />
the requirement that contractors with certain state entities<br />
must provide qualified health insurance to their employees<br />
and the dependents of the employees who work or reside in<br />
the state. These amendments also clarify the waiting period;<br />
clarify that the coverage that must be offered is a minimum<br />
standard and an employer may offer greater coverage;<br />
amend the definition of qualified health insurance coverage to<br />
clarify the standards; amend the enforcement provisions to<br />
provide protections for good faith compliance and clarify how<br />
an employer offering a defined contribution arrangement may<br />
comply with state contract requirements.<br />
THE FULL TEXT OF THIS RULE MAY BE INSPECTED,<br />
DURING REGULAR BUSINESS HOURS, AT:<br />
ADMINISTRATIVE SERVICES<br />
FACILITIES CONSTRUCTION AND MANAGEMENT<br />
ROOM 4<strong>11</strong>0 STATE OFFICE BLDG<br />
450 N STATE ST<br />
SALT LAKE CITY, UT 84<strong>11</strong>4-12<strong>01</strong><br />
or at the Division of <strong>Administrative</strong> <strong>Rules</strong>.<br />
DIRECT QUESTIONS REGARDING THIS RULE TO:<br />
♦ Alan Bachman by phone at 8<strong>01</strong>-538-3105, by FAX at<br />
8<strong>01</strong>-538-3313, or by Internet E-mail at abachman@utah.<strong>gov</strong><br />
UTAH STATE BULLETIN, June <strong>01</strong>, <strong>2<strong>01</strong>0</strong>, <strong>Vol</strong>. <strong>2<strong>01</strong>0</strong>, <strong>No</strong>. <strong>11</strong> 23