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Second Substitute H.B. 228

Representative Rebecca D. Lockhart proposes to substitute the following bill:


             1     
HEALTH INSURANCE PROVISIONS - INTERIM REVIEW

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Rebecca D. Lockhart

             5      AN ACT RELATING TO THE LEGISLATURE; REQUIRING THE BUSINESS, LABOR, AND
             6      ECONOMIC DEVELOPMENT INTERIM COMMITTEE AND THE HEALTH AND HUMAN
             7      SERVICES INTERIM COMMITTEE TO IDENTIFY AND REVIEW CERTAIN HEALTH
             8      INSURANCE PROVISIONS TO DETERMINE WHETHER THE PROVISIONS SHOULD BE
             9      CONTINUED, MODIFIED, OR REPEALED S ; AND PERMITTING THE ASSISTANCE OF THE
             9a      LEGISLATIVE AUDITOR GENERAL s .
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          36-12-5, as last amended by Chapter 226, Laws of Utah 1998
S 36-12-15, as last amended by Chapter 228, Laws of Utah 1992 s
             13      Be it enacted by the Legislature of the state of Utah:
             14          Section 1. Section 36-12-5 is amended to read:
             15           36-12-5. Duties of interim committees.
             16          (1) [It is the duty of each] Each interim committee shall:
             17          (a) [to] receive study assignments by resolution from the appropriate house of the
             18      Legislature;
             19          (b) [to] receive study assignments from [its corresponding Senate or House] the Legislative
             20      Management Committee, created under Section 36-12-6 ;
             21          (c) [to] place matters on its study agenda upon notification to [its Senate or House] the
             22      Legislative Management Committee[. If a study request has], which request, if not [been]
             23      disapproved by the [appropriate] Legislative Management Committee within 30 days of receipt
             24      of the request, the interim committee may proceed with the requested study;
             25          (d) [to] request research reports from the professional legislative staff pertaining to the


             26      committee's agenda of study;
             27          (e) [to] investigate and study possibilities for improvement in government services within
             28      its subject area;
             29          (f) [to] accept reports from the professional legislative staff and make recommendations
             30      for legislative action with respect to such reports; and
             31          (g) [to] prepare and recommend to the Legislature a legislative program in response to the
             32      committee's study agenda.
             33          (2) (a) In addition to the duties established pursuant to Subsection (1), the Business, Labor,
             34      and Economic Development Interim Committee and the Health and Human Services Interim
             35      Committee shall:
             36          (i) identify provisions in Title 31A that impose a mandatory obligation on health insurers
             37      with respect to coverage, benefits, or providers that have been in effect for five or more years and
             38      have not been reviewed during the previous 10 years; and
             39          (ii) subject to the direction of the Legislative Management Committee which may divide
             40      the provisions between the committees, review the provisions to determine whether the provisions
             41      should be continued, modified, or repealed, provided that:
             42          (A) any provision in effect for five or more years as of July 1, 2000, shall be reviewed
             43      before November 30, 2005; and
             44          (B) any provision enacted after July 1, 2000, shall be reviewed on the fifth year after
             45      enactment.
             46          (b) The review shall include:
             47          (i) the estimated fiscal impact of the provision on state and private health insurance S AND s ;
             48          (ii) the purpose and effectiveness of the provision S [ ; and ] .
             49           [ (iii) the estimated amount, if any, of the base insurance premium that is attributable to the
             50      provision.
             51          (c) The committees S [may] SHALL s request the assistance of the Office of the Legislative
             51a      Fiscal
             52      Analyst to determine the estimated fiscal impact of a provision.
] (c) THE COMMITTEE MAY REQUEST

             52a      THROUGH, AND WITH THE APPROVAL OF, THE AUDIT SUBCOMMITTEE THAT THE LEGISLATIVE
             52b      AUDITOR GENERAL PERFORM, OR OTHERWISE ASSIST IN THE PERFORMANCE OF, THE REVIEW
             52c      DESCRIBED IN SUBSECTION (2)(b). s
             53          [(2)] (3) Reports and recommendations of the interim committees shall be completed and
             54      made public prior to any legislative session at which the reports and recommendations are
             55      submitted. A copy of the reports and recommendations shall be mailed to each member or
             56      member-elect of the Legislature, to each elective state officer, and to the state library.
             56a      S Section 2. Section 36-12-15 is amended to read:
             56b          36-12-15.   Office of Legislative Auditor General established -- Qualifications -- Powers, s


             56c      S functions, and duties.
             56d          (1) There is created an Office of Legislative Auditor General as a permanent staff office for the
             56e      Legislature.
             56f          (2) The legislative auditor general shall be a licensed certified public accountant or certified
             56g      internal auditor with at least five years' experience in the auditing or public accounting profession, or
             56h      the equivalent, prior to appointment.
             56i          (3) The legislative auditor general shall appoint and develop a professional staff within budget
             56j      limitations.
             56k          (4) (a) The Office of the Legislative Auditor General shall exercise the constitutional authority
             56l      provided in Article VI, Sec. 33, Utah Constitution.
             56m          (b) Under the direction of the legislative auditor general, the office shall:
             56n          (i) conduct comprehensive and special purpose audits, examinations, and reviews of any
             56o      entity that receives public funds; and
             56p          (ii) prepare and submit a written report on each audit, examination, or review to the Legislative
             56q      Management Committee, the audit subcommittee, and to all members of the Legislature within 75
             56r      days after the audit or examination is completed.
             56s          (5) The audit, examination, or review of any entity that receives public funds may include a
             56t      determination of any or all of the following:
             56u          (a) the honesty and integrity of all its fiscal affairs;
             56v          (b) the accuracy and reliability of its financial statements and reports;
             56w          (c) whether or not its financial controls are adequate and effective to properly record and
             56x      safeguard its acquisition, custody, use, and accounting of public funds;
             56y          (d) whether or not its administrators have faithfully adhered to legislative intent;
             56z          (e) whether or not its operations have been conducted in an efficient, effective, and cost
             56aa      efficient manner;
             56ab          (f) whether or not its programs have been effective in accomplishing intended objectives; and
             56ac          (g) whether or not its management control and information systems are adequate and
             56ad      effective.
             56ae          (6) The Office of Legislative Auditor General may:
             56af          (a) obtain access to all records, documents, and reports of any entity that receives public
             56ag      funds necessary to the scope of its duties, according to the procedures contained in Title 36, Chapter
             56ah      14;
             56ai          (b) establish policies, procedures, methods, and standards of audit work for the office and
             56aj      staff;
             56ak          (c) prepare and submit each audit report without interference from any source relative to the
             56al      content of the report, the conclusions reached in the report, or the manner of disclosing the results of
             56am      his findings; and
             56an          (d) prepare and submit the annual budget request for the office.
             56ao          (7) To preserve the professional integrity and independence of the office:
             56ap          (a) no legislator or public official may urge the appointment of any person to the office; and
             56aq          (b) the legislative auditor general may not be appointed to serve on any board, authority,
             56ar      commission, or other agency of the state during his term as legislative auditor general.
             56as          (8) The following records in the custody or control of the legislative auditor general shall be
             56at      protected records under Title 63, Chapter 2, Government Records Access and Management Act:
             56au          (a) Records that would disclose information relating to allegations of personal s


             56av     
S misconduct, gross mismanagement, or illegal activity of a past or present governmental employee if

             56aw      the information or allegation cannot be corroborated by the legislative auditor general through other
             56ax      documents or evidence, and the records relating to the allegation are not relied upon by the legislative
             56ay      auditor general in preparing a final audit report.
             56az          (b) Records and audit workpapers to the extent they would disclose the identity of a person
             56ba      who during the course of a legislative audit, communicated the existence of any waste of public
             56bb      funds, property, or manpower, or a violation or suspected violation of a law, rule, or regulation
             56bc      adopted under the laws of this state, a political subdivision of the state, or any recognized entity of
             56bd      the United States, if the information was disclosed on the condition that the identity of the person be
             56be      protected.
             56bf          (c) Prior to the time that an audit is completed and the final audit report is released, records or
             56bg      drafts circulated to a person who is not an employee or head of a governmental entity for their
             56bh      response or information.
             56bi          (d) Records that would disclose an outline or part of any audit survey plans or audit program.
             56bj          (e) Requests for audits, if disclosure would risk circumvention of an audit.
             56bk          (f) The provisions of Subsections (a), (b), and (c) do not prohibit the disclosure of records or
             56bl      information that relate to a violation of the law by a governmental entity or employee to a government
             56bm      prosecutor or peace officer.
             56bn          (g) The provisions of this section do not limit the authority otherwise given to the legislative
             56bo      auditor general to classify a document as public, private, controlled, or protected under Title 63,
             56bp      Chapter 2, Government Records Access and Management Act.
             56bq          (9) The legislative auditor general shall:
             56br          (a) be available to the Legislature and to its committees for consultation on matters relevant
             56bs      to areas of his professional competence AND SHALL PERFORM, OR OTHERWISE ASSIST IN THE
             56bt      PERFORMANCE OF, A HEALTH INSURANCE PROVISION REVIEW AS PROVIDED IN SECTION 36-12-5;
             56bu          (b) conduct special audits as requested by the Legislative Management Committee;
             56bv          (c) report immediately in writing to the Legislative Management Committee through its audit
             56bw      subcommittee any apparent violation of penal statutes disclosed by the audit of a state agency and
             56bx      furnish to the Legislative Management Committee all information relative to the apparent violation;
             56by          (d) report immediately in writing to the Legislative Management Committee through its audit
             56bz      subcommittee any apparent instances of malfeasance or nonfeasance by a state officer or employee
             56ca      disclosed by the audit of a state agency; and
             56cb          (e) make any recommendations to the Legislative Management Committee through its audit
             56cc      subcommittee with respect to the alteration or improvement of the accounting system used by any
             56cd      entity that receives public funds.
             56ce          (10) (a) Prior to each annual general session, the legislative auditor general shall prepare a
             56cf      summary of the audits conducted and of actions taken based upon them during the preceding year.
             56cg          (b) This report shall also set forth any items and recommendations that are important for
             56ch      consideration in the forthcoming session, together with a brief statement or rationale for each item or
             56ci      recommendation.
             56cj          (c) The legislative auditor general shall deliver the report to the Legislature and to the
             56ck      appropriate committees of the Legislature. s


             56cl      S     (11) (a) No person or entity may:
             56cm          (i) interfere with a legislative audit, examination, or review of any entity conducted by the
             56cn      office; or
             56co          (ii) interfere with the office relative to the content of the report, the conclusions reached in the
             56cp      report, or the manner of disclosing the results and findings of the office.
             56cq          (b) Any person or entity that violates the provisions of this Subsection (11) is guilty of a class
             56cr      B misdemeanor. s


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