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S.B. 63

             1     

STATE ZERO-BASED BUDGETING

             2     
2007 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne L. Niederhauser

             5     
House Sponsor: Wayne A. Harper

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill creates a legislative committee to develop and implement a zero-based budget
             10      process and requires entities seeking appropriations to provide certain information to
             11      the committee.
             12      Highlighted Provisions:
             13          This bill:
             14          .    requires each entity that seeks state moneys and appropriations to submit a
             15      zero-based budget to the Legislature's Zero Base Budget Review Committee
             16      beginning in 2008; and
             17          .    creates the Zero Base Budget Review Committee and defines its membership,
             18      duties, and powers.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      ENACTS:
             25          36-27-101, Utah Code Annotated 1953
             26          36-27-102, Utah Code Annotated 1953
             27          36-27-103, Utah Code Annotated 1953



             28          36-27-104, Utah Code Annotated 1953
             29          63-38-2.1, Utah Code Annotated 1953
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 36-27-101 is enacted to read:
             33     
CHAPTER 27. ZERO BASE BUDGET REVIEW COMMITTEE

             34          36-27-101. Title.
             35          This chapter is known as the "Zero Base Budget Review Committee."
             36          Section 2. Section 36-27-102 is enacted to read:
             37          36-27-102. Definitions.
             38          As used in this chapter:
             39          (1) "Budget entity" means any state agency or other entity that seeks state monies and
             40      appropriations through an appropriations act.
             41          (2) "Zero-based budget" means a budget that requires a budget entity to justify all
             42      requested expenditures rather than simply justifying amounts requested in excess of the
             43      previous fiscal year's funding.
             44          (3) "Zero-based budget review and evaluation" means a comprehensive review and
             45      evaluation of a budget entity to:
             46          (a) determine if the merits of the activities of the entity support its continuation; and
             47          (b) recommend a budget amount for each of that entity's programs or services based
             48      upon a justification by the budget entity of each of its programs and services from a zero base.
             49          Section 3. Section 36-27-103 is enacted to read:
             50          36-27-103. Zero Base Budget Review Committee -- Membership.
             51          There is created a Zero Base Budget Review Committee.
             52          (1) The committee shall be composed of 11 legislators appointed as follows:
             53          (a) four senators appointed by the president of the Senate, with one senator from the
             54      minority party; and
             55          (b) seven representatives appointed by the speaker of the House of Representatives,
             56      with two representatives from the minority party.
             57          (2) The president of the Senate shall designate one of the Senate appointees as one
             58      cochair of the committee and the speaker of the House of Representatives shall designate one


             59      of the House of Representatives appointees as the other cochair.
             60          (3) Committee members serve for two years but may be reappointed by the speaker or
             61      president.
             62          (4) In conducting all of its business, the committee shall comply with interim rules.
             63          (5) The committee shall meet at least monthly during the interim and at the call of the
             64      chairs.
             65          (6) The Legislative Fiscal Analyst shall provide staff services to the committee.
             66          Section 4. Section 36-27-104 is enacted to read:
             67          36-27-104. Committee duties.
             68          (1) The committee shall:
             69          (a) implement a zero-based budget review and evaluation process for the committee to
             70      use in reviewing and evaluating the budgets of budget entities beginning in April, 2008;
             71          (b) in cooperation with the Governor's Office of Planning and Budget, establish a
             72      schedule to review activities, services, programs, and budgets for each budget entity at least
             73      once every four years;
             74          (c) develop forms, standards, criteria, and requirements governing budget entity
             75      submission of zero-based budget information to the committee as required by Section
             76      63-38-2.1 ;
             77          (d) review and evaluate each activity, service, program, and budget submitted under
             78      Section 63-38-2.1 ;
             79          (e) if desired, invite or require representatives from budget entities whose activities,
             80      services, programs, and budgets are subject to committee review and evaluation to attend
             81      committee meetings and provide the committee with information about the activities, services,
             82      programs, and budgets;
             83          (f) submit recommendations to the Executive Appropriations Committee and the
             84      appropriate subcommittees for adjustments to budgets based upon the committee's review;
             85          (g) recommend changes to statutes governing a budget entity's activities, services, and
             86      programs, as necessary; and
             87          (h) recommend changes to the zero-based budget review and evaluation process
             88      established by this chapter and Section 63-38-2.1 .
             89          (2) In reviewing and evaluating a budget entity's activities, services, programs, and


             90      budgets, the committee shall:
             91          (a) identify and scrutinize the budget entity's activities, services, programs,
             92      performance, management, and budget;
             93          (b) consider the objectives, operations, measures of performance, and costs of all
             94      activities, services, and programs of the budget entity;
             95          (c) identify whether the activities, services, and programs provided by the budget entity
             96      are needed or effective;
             97          (d) determine whether the budget entity is the best entity to provide those activities,
             98      services, and programs and consider alternate means of providing those activities, services, and
             99      programs;
             100          (e) identify and determine what benefit the state is receiving from the expenditure of
             101      taxpayer resources for the activity, service, or program;
             102          (f) evaluate alternative budget amounts for various levels of effort for each activity,
             103      service, or program of each budget entity; and
             104          (g) prioritize the budget entity's activities, services, and programs within the budget
             105      request.
             106          (3) The committee may consider the following questions in reviewing and evaluating a
             107      budget entity's activities, programs, and services:
             108          (a) Would the termination of the activity, service, or program significantly harm or
             109      endanger the public health, safety, or welfare?
             110          (b) Has the activity, service, or program met the objectives of the statute that created
             111      it?
             112          (c) Do the functions of the activity, service, or program duplicate or overlap the
             113      functions of any other entity?
             114          (d) Is the activity, service, or program meeting the needs of its constituency and the
             115      public?
             116          (4) In establishing forms, standards, criteria, and requirements governing budget entity
             117      submission of zero-based budget information to the committee, the committee may require
             118      budget entities to submit the following information:
             119          (a) a description of those discrete activities, services, and programs that comprise the
             120      budget entity and justification for the existence of each activity, service, or program by


             121      reference to statute or other legal authority;
             122          (b) for each activity, service, or program, a quantitative estimate of any adverse
             123      impacts that could reasonably be expected should the activity, service, or program be
             124      discontinued, together with a full description of the methods by which the adverse impact is
             125      estimated;
             126          (c) for each activity, service, or program, an itemized account of expenditures that
             127      would be required to maintain the activity, service, or program at the minimum level of service
             128      required by the statutory or other legal authority, together with a concise statement of the
             129      quantity and quality of services required at that minimum level;
             130          (d) for each activity, service, or program, an itemized account of expenditures that
             131      would be required to maintain the activity, service, or program at current levels of service,
             132      together with a concise statement of the quantity and quality of services being provided; and
             133          (e) a ranking of all activities, services, and programs that shows the relative
             134      contribution of each to the overall goals and purposes of the budget entity at current service
             135      levels.
             136          Section 5. Section 63-38-2.1 is enacted to read:
             137          63-38-2.1. State agencies and other budget entities to submit zero-based budget --
             138      Schedule.
             139          (1) As used in this section:
             140          (a) "Budget entity" means any state agency or other entity that seeks state moneys and
             141      appropriations in an appropriations act.
             142          (b) "Zero-based budget" means a budget presented by a budget entity that:
             143          (i) justifies all requested expenditures rather than simply justifying amounts requested
             144      in excess of the previous fiscal year's funding; and
             145          (ii) complies with the format, standards, criteria, and requirements established by the
             146      Zero Base Budget Review Committee under Title 36, Chapter 27, Zero Base Budget Review
             147      Committee.
             148          (2) Each budget entity that seeks state monies and appropriations shall submit a
             149      zero-based budget according to the schedule established by the Zero Base Budget Review
             150      Committee by April 1, beginning April 1, 2008.
             151          (3) The budget entity shall ensure that:


             152          (a) the zero-based budget is in the form and contains the information required by the
             153      committee; and
             154          (b) contains the agency's entire proposed budget using the best currently available data
             155      for the fiscal year beginning in July of the calendar year following the year in which the budget
             156      is submitted to the committee.




Legislative Review Note
    as of 1-22-07 6:49 AM


Office of Legislative Research and General Counsel


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