1. (1) As used in this section:

   1. (a) "Active member" means the same as that term is defined in Section 49-11-102.
   2. (b) "Change date" means the same as that term is defined in Section 63A-17-515.
   3. (c) "Current employee" means an agency employee who is employed by an agency as of the change date.

   4. (d) "Legacy program" means:

      1. (i) accruing annual leave II as defined in Section 63A-17-510 and sick leave under the same or substantially the same rules in place on the day immediately preceding the change date; and
      2. (ii) for a qualifying employee, being eligible for the employer matching retirement contribution available to a legacy qualifying employee under Section 63A-17-805.

   5. (e) "Paid time off program" means:

      1. (i) accruing paid time off in lieu of annual leave II and sick leave, as provided in Section 63A-17-515; and

      2. (ii)

         1. (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; or
         2. (B) for a qualifying employee who is an active member in Tier II as defined in Section 49-11-102, being eligible for the employer matching retirement contribution available to a Tier II qualifying employee under Section 63A-17-805.
   6. (f) "Qualifying employee" means the same as that term is defined in Section 63A-17-805.

2. (2)

   1. (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.
   2. (b) After the deadline to make an election under Subsection (2)(a), an employee may not modify the employee's election.
   3. (c) If an employee does not submit a timely election under Subsection (2)(a), the employee shall participate in the paid time off program.

3. (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the Division of Finance shall makes rules governing the process for the election described in this section, including establishing:

   1. (a) the deadline for an employee to submit the employee's election under Subsection (2)(a); and
   2. (b) if necessary, the deadline for an agency to report each employee's election to the Division of Finance.

Enacted by Chapter 357, 2026 General Session