Senate approves substitute letting Valley Mental Health leave URS, sponsor says move will save 800 jobs

Senator Weiler moved and explained the first-substitute Senate Bill 239 on the Senate floor, saying it would allow Valley Mental Health to withdraw from the Utah Retirement Systems (URS) without any state contribution and thereby preserve about 800 jobs and continued service to approximately 25,000 clients. "This is the Valley Mental Health bill that we substituted on the floor... require no contribution for the state to allow Valley Mental Health to withdraw from URS and save 800 jobs," the sponsor said on the floor.

The sponsor also brought Amendment 1 to the substitute, which stripped a reporting requirement that had been added earlier when the measure was expected to involve state money. The sponsor told colleagues the reporting provision was intended to provide oversight only if state funds were involved; because no state funds would be provided, the reporting requirement was removed.

During floor questioning, senators sought and received assurances that current Valley Mental Health employees who remain in URS would not be forced out. The sponsor confirmed that the buyout would preserve existing rights "to offset that" for those currently in the retirement system and that employees hired after the change would participate in a different retirement system unless they consented otherwise.

The bill's sponsor framed the change as narrowly tailored to Valley Mental Health’s unique status — a quasi‑governmental entity that has become private but began in the public system — and said the measure was needed to avoid job losses and protect client services.

After debate and the amendment vote, the Senate recorded a roll-call on the first substitute to SB 239. The clerk announced the bill as passed and ready to be transmitted to the House for consideration.

The Senate completed action on the bill as amended; next procedural steps are transmittal to the House for its consideration.