No. 28384 (Amendment): R25-5. Payment of Per Diem to Boards

DAR File No.: 28384
Filed: 12/01/2005, 08:21
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed change recognizes differences between an independent corporation's board of directors and members of policy boards, advisory boards, councils, and committees. It allows members of independent corporation boards to receive per diem at rates exceeding those established for other board members.

 

Summary of the rule or change:

The change allows members of independent corporation boards to receive per diem at rates exceeding established rates for members of other "boards," as defined in the rule.

 

State statutory or constitutional authorization for this rule:

Section 63A-3-106

 

Anticipated cost or savings to:

the state budget:

If independent corporations that receive partial or complete funding from the state choose to increase the per diem paid to their boards, and if they choose to pay the increased per diem from state funds, it could increase funding requests for those corporations. We cannot anticipate the aggregate cost to the state budget for the following reasons: 1) because the rule change does not mandate that independent corporations receiving state funds increase the per diem paid to their board members, we do not know how many will choose to do so; 2) if an independent corporation that receives state funds does choose to increase the per diem paid to their board members, we do not know what amount they will choose to pay; 3) if an independent corporation that receives state funds chooses to increase the per diem paid to their board members, we do not know whether they will use state funds to pay the increased per diem or if they will fund the increase from other sources; and 4) if an independent corporation that receives state funds chooses to increase the per diem, we do not know how many board members might receive the additional amount.

 

local governments:

This rule applies only to independent corporations and, therefore, will have no impact on local government.

 

other persons:

We cannot anticipate the aggregate cost to independent corporations for the following reasons: 1) because the rule change does not mandate that independent corporations increase the per diem paid to their board members, we do not know how many will choose to do so; 2) if an independent corporation does choose to increase the per diem paid to their board members, we do not know what amount they will choose to pay; and 3) we do not know how many board members might receive additional per diem if an independent corporation chooses to increase the amount.

 

Compliance costs for affected persons:

The rule change does not require independent corporations to increase the per diem they pay to board members. However, if a corporation chooses to pay additional per diem, then the compliance costs would be the increased amount of per diem multiplied by the number of board members who receive the additional per diem.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

Changes to the rule may result in increased costs for board of directors members of applicable independent corporations subject to Title 63E, Chapter 2. Additional costs are likely to be minimal and should not result in a noticeable increase in any rates or fees charged to customers, including any business customers. D'Arcy Dixon Pignanelli, Executive Director

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Finance
Room 2110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

 

Direct questions regarding this rule to:

Teddy Cramer at the above address, by phone at 801-538-3450, by FAX at 801-538-3244, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/17/2006

 

This rule may become effective on:

01/18/2006

 

Authorized by:

John Reidhead, Director

 

 

RULE TEXT

R25. Administrative Services, Finance.

R25-5. Payment of Per Diem to Boards.

R25-5-1. Purpose.

The purpose of this rule is to establish the procedures for payment of per diem to policy boards, advisory boards, councils, or committees within state government.

 

R25-5-2. Authority.

This rule is established pursuant to Section 63A-3-106, which authorizes the Director of Finance to establish per diem rates.

 

R25-5-3. Definitions.

(1) "Boards" means policy boards, advisory boards, councils, or committees within state government.

(2) "Finance" means the Division of Finance.

(3) "Per diem" means an allowance paid daily.

(4) "Rate" means an amount of money.

(5) "Independent Corporation Board" means the board of directors of any independent corporation subject to Section 63E Chapter 2 that is subject to this rule by its authorizing statute.

 

R25-5-4. Rates.

(1) Each member of a board within state government shall receive $60 per diem for each official meeting attended that lasts up to four hours and $90 per diem for each official meeting that is longer than four hours.

(2) Travel expenses shall also be paid to board members in accordance with Rule R25-7.

(3) Members may decline to receive per diem and/or travel expenses for their services.

(4) Upon approval by Finance, members of an independent corporation board may receive per diem, at rates exceeding those established in Subsection R25-5-4(1), for each meeting attended as part of their official duties and for reasonable preparation associated with meetings of the full board or the board's subcommittees.

 

R25-5-5. Rates for State Employees.

(1) Full-time state employees serving on boards may not be eligible for per diem at board meetings held during normal working hours. State employee board members attending meetings held at a time other than normal working hours shall receive $60 per diem for each official meeting attended that lasts up to four hours and $90 per diem for each official meeting that is longer than four hours.

(2) Travel expenses shall also be paid to state employees serving on boards in accordance with Rule R25-7.

 

R25-5-6. Payment of Per Diem.

All board members are paid their per diem through the payroll system in order to calculate and withhold the appropriate taxes.

 

KEY: per diem allowance, rates, state employees, boards[*]

[July 13, 1999]January 18, 2006

Notice of Continuation October 22, 2003

63A-3-106