DAR File No. 37558

Administrative Services, Finance

Rule R25-5

Payment of Per Diem to Boards

Notice of Proposed Rule

(Amendment)

DAR File No.: 37558
Filed: 04/29/2013 04:24:42 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed change clarifies that "per diem" payments to board members for attendance at official meetings are taxable and must be paid through the payroll system.

Summary of the rule or change:

The board member shall pay taxes if they are eligible to receive the per diem.

State statutory or constitutional authorization for this rule:

• Section 63A-3-106

Anticipated cost or savings to:

the state budget:

The effect to the state budget will be negligible. There may be some cost savings if agencies are more careful to ensure that board members who are otherwise compensated are not reimbursed twice.

local governments:

This rule amendment applies only to monies paid to board members and employees of state government and higher education and therefore, will have no impact on local government.

small businesses:

This rule amendment applies only to monies paid to board members and employees of state government and higher education and therefore, will have not impact on small business.

persons other than small businesses, businesses, or local governmental entities:

This rule amendment applies only to monies paid to board members and employees of state government and higher education and therefore, will not impact any persons outside of state government and higher education.

Compliance costs for affected persons:

There may be minimal compliance costs for staffing expenses to approve and process per diem payments.

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

These changes are for clarification purposes and have no impact on business.

Kimberly K. Hood, 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 STATE ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Richard Beckstead at the above address, by phone at 801-538-3100, by FAX at 801-538-3562, or by Internet E-mail at rbeckstead@utah.gov

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:

06/14/2013

This rule may become effective on:

06/21/2013

Authorized by:

John Reidhead, Director

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 and travel expenses to defray the costs for attendance at an official meeting of a board by an officer or employee who is a member.

 

R25-5-2. Authority.

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

 

R25-5-3. Definitions.

All terms are as defined in Section 63A-3-106(1), except as follows:

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

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

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

(4) "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 a taxable $60 per diem for each official meeting attended that lasts up to four hours and a taxable $90 per diem for each official meeting that is longer than four hours.

(a) These rates are applicable to an officer or employee of the executive branch, except as provided under subsection (1)(b);

(b) These rates are applicable to an officer or employee of higher education unless higher education pays the costs of the per diem.

(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. Governmental Employees.

(1) A member of a board may not receive the taxable per diem in R25-5-4(1) or travel expenses if the member is being compensated as an officer or employee of a governmental entity, including the State, while performing the member's service on the board.

Governmental employee board members attending official meetings held at a time other than their normal working hours, who receive no compensation or leave (such as comp time) for the additional hours of the meetings may receive the taxable per diem in R25-5-4(1).

(2) Travel expenses related to the attendance of official board meetings for which a governmental employee serving on the board is not otherwise reimbursed may also be paid to the employee in accordance with Rule R25-7.

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

 

R25-5-6. Payment of Per Diem.

All board members are required to be 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

Date of Enactment or Last Substantive Amendment: [June 23, 2009]2013

Notice of Continuation: April 15, 2013

Authorizing, and Implemented or Interpreted Law: 63A-3-106