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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

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