Would restrict so-called "double dipping" by state employees.

Next step: Behind-the-scenes negotiations before it could return to Senate committee

A Senate panel had reservations Wednesday about a bill intended to stop the double-dipping that has allowed some state employees to retire, get rehired, and take home as much as 170 percent of their pre-retirement pay.

A Senate committee passed a bill to keep retired employees off the payroll at least six months before being rehired. But the committee added a last minute exemption - intended to protect schools and law enforcement agencies in rural Utah - that appeared to put the bill's fate in doubt.

The panel approved the amendment but sent the bill back to the Rules Committee to work on a compromise.

Sponsoring Rep. Glenn Donnelson, R-North Ogden, said lawmakers need to move quickly to close the loophole that allowed public employees, primarily in pubic safety and corrections, to take advantage of generous retirement benefits.

“It's an abuse of public money,” he said.

But Sen. Darin Peterson, R-Nephi, who proposed the exception, said his constituents fear the hiring restriction would be a hardship in rural communities where job applicant pools are small. He suggested more study of double-dipping abuses, the subject of a scathing audit two months ago.

“I don't know if [the bill] has a future,” said Peterson, who called double-dipping egregious. “There are some problems.”

Neither Peterson nor Donnelson sounded confident about resolving their differences.

"If we can fix it before [the legislative session ends Feb. 28] then we should fix it," Donnelson said.

fahys@sltrib.com