First Substitute H.B. 319

Representative David Clark proposes the following substitute bill:

1 REVIEW AND APPROVAL OF GRANTS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: David Clark
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill establishes a process for review and approval for certain grants that persons
10 and corporations offer to a state agency.
11 Highlighted Provisions:
12 This bill:
13 . requires that the governor approve certain grants to executive branch agencies;
14 . requires the Judicial Council to approve certain grants to judicial branch agencies;
15 . requires that the Executive Appropriations Committee review and comment on
16 certain grants;
17 . requires that the Legislature review and approve certain grants;
18 . establishes remedies if state agencies fail to obtain appropriate approvals; and
19 . makes technical corrections.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 ENACTS:

26 63-38h-101, Utah Code Annotated 1953
27 63-38h-102, Utah Code Annotated 1953
28 63-38h-201, Utah Code Annotated 1953
29 63-38h-202, Utah Code Annotated 1953
30 63-38h-203, Utah Code Annotated 1953
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 63-38h-101 is enacted to read:
34 CHAPTER 38h. GRANTS FROM PERSONS AND CORPORATIONS
35 Part 1. General Provisions
36 63-38h-101. Definitions.
37 (1) As used in this chapter:
38 (a) (i) "Agency" means a department, division, committee, commission, council, court,
39 or other administrative subunit of the state.
40 (ii) "Agency" includes executive branch entities and judicial branch entities.
41 (iii) "Agency" does not mean higher education institutions or political subdivisions.
42 (b) (i) "Grant" means cash or other monies donated to an agency by a grantor required
43 to be paid to the state.
44 (ii) "Grant" includes a reauthorization of an existing grant.
45 (iii) "Grant" does not mean:
46 (A) monies appropriated to an agency by the Legislature;
47 (B) monies received from the United States government;
48 (C) monies legally required to be paid to the state; or
49 (D) monies legally required to be repaid by the state.
50 (c) "Grantor" means the individual, group of individuals, foundation, corporation, or
51 public or private organization making the grant.
52 (d) "Grant reauthorization" means the formal submission from an agency to the grantor
53 applying for reauthorization or seeking reauthorization of a grant.
54 (e) "Grant summary" means a document detailing:
55 (i) the amount of money that is being requested or is available to be received by the
56 agency from a grant;

57 (ii) the duration of the grant and provisions for its reauthorization or extension, if any;
58 (iii) the name of the grantor;
59 (iv) the purpose of the grant, including, in detail, any programs, resources, and
60 positions required to be funded by the grant;
61 (v) any requirements that the agency must meet as a condition to receive or participate
62 in the grant; and
63 (vi) the amount of state monies, if any, that will be required in order to obtain the grant.
64 (f) "New state monies" means monies, whether specifically appropriated by the
65 Legislature or not, that the grantor requires Utah to expend as a condition for receiving the
66 grant.
67 (g) "State" means the state of Utah and all of its agencies, and any administrative
68 subunits of those agencies.
69 (2) When this chapter describes an employee as a "permanent full-time employee" or a
70 "permanent part-time employee," it is not intended to, and may not be construed to, affect the
71 employee's status as an at-will employee.
72 Section 2. Section 63-38h-102 is enacted to read:
73 63-38h-102. Scope and applicability of chapter.
74 (1) Except as provided in Subsection (2), and except as otherwise provided by a statute
75 superseding provisions of this chapter by explicit reference to this chapter, the provisions of
76 this chapter apply to each agency and govern each grant received on or after May 5, 2008.
77 (2) This chapter does not govern:
78 (a) a grant deposited into a General Fund restricted account;
79 (b) a grant deposited into a Trust and Agency Fund as defined in Section 51-5-4 ;
80 (c) a grant deposited into an Enterprise Fund as defined in Section 51-5-4 ;
81 (d) a grant made to the state without a restriction or other designated purpose that is
82 deposited into the General Fund as free revenue;
83 (e) a grant made to the state that is restricted only to "education" and that is deposited
84 into the Education Fund or Uniform School Fund as free revenue;
85 (f) in-kind donations;
86 (g) a tax, fees, penalty, fine, surcharge, money judgment, or other monies due the state
87 when required by state law or application of state law;

88 (h) a contribution made under Title 59, Chapter 10, Part 13, Individual Income Tax
89 Contribution Act;
90 (i) a grant received from another agency or political subdivision;
91 (j) a grant to the Dairy Commission created in Title 4, Chapter 22, Dairy Promotion
92 Act;
93 (k) a grant to the Heber Valley Railroad Authority created in Title 9, Chapter 3, Part 3,
94 Heber Valley Historic Railroad Authority;
95 (l) a grant to the Utah Science Center Authority created in Title 9, Chapter 3, Part 4,
96 Utah Science Center Authority;
97 (m) a grant to the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah
98 Housing Corporation Act;
99 (n) a grant to the Utah State Fair Corporation created in Title 9, Chapter 4, Part 11,
100 Utah State Fair Corporation Act;
101 (o) a grant to the Workers' Compensation Fund created in Title 31A, Chapter 33,
102 Workers' Compensation Fund;
103 (p) a grant to the Utah State Retirement Office created in Title 49, Chapter 11, Utah
104 State Retirement Systems Administration;
105 (q) a grant to the School and Institutional Trust Lands Administration created in Title
106 53C, Chapter 1, Part 2, School and Institutional Trust Lands Administration;
107 (r) a grant to the Utah Communications Agency Network created in Title 63C, Chapter
108 7, Utah Communications Agency Network Act;
109 (s) a grant to the Medical Education Program created in Section 63C-8-102 ;
110 (t) a grant to the Utah Capital Investment Corporation created in Title 63, Chapter 38f,
111 Part 12, Utah Venture Capital Enhancement Act;
112 (y) a grant to the State Charter School Finance Authority created in Section
113 53A-20b-103 ;
114 (v) a grant to the State Building Ownership Authority created in Section 63B-1-304 ;
115 (w) a grant to the Utah Comprehensive Health Insurance Pool created in Section
116 31A-29-104 ; or
117 (x) a grant to the Military Installation Development Authority created in Section
118 63H-1-201 .

119 (3) An agency need not seek legislative review or approval of grants under Part 2,
120 Grant Approval Requirements, when:
121 (a) the governor has declared a state of emergency; and
122 (b) the grant is donated to the agency to assist disaster victims under Subsection
123 63-5a-3 (2).
124 Section 3. Section 63-38h-201 is enacted to read:
125 Part 2. Grant Approval Requirements
126 63-38h-201. Governor to approve certain grant requests.
127 (1) (a) Before obligating the state to accept or receive a grant, an executive branch
128 agency shall submit a grant summary to the governor or the governor's designee for approval or
129 rejection when:
130 (i) the executive branch agency would receive a grant of at least $10,000 but no more
131 than $50,000 if the grant is approved;
132 (ii) receipt of the grant will require no additional permanent full-time employees,
133 permanent part-time employees, or combination of additional permanent full-time employees
134 and permanent part-time employees; and
135 (iii) no new state monies will be required to match the grant.
136 (b) The Governor's Office of Planning and Budget shall report each grant authorized
137 under this section to:
138 (i) the Legislature's Executive Appropriations Committee; and
139 (ii) the Office of the Legislative Fiscal Analyst.
140 (2) The governor or the governor's designee shall approve or reject each grant
141 submitted under the authority of this section.
142 (3) (a) If the governor or the governor's designee approves the grant, the executive
143 branch agency may accept the grant.
144 (b) If the governor or the governor's designee rejects the grant, the executive branch
145 agency may not accept the grant.
146 (4) If an executive branch agency fails to obtain the governor's or the governor's
147 designee's approval under this section, the governor may require the agency to return the grant.
148 Section 4. Section 63-38h-202 is enacted to read:
149 63-38h-202. Judicial council to approve certain new grant requests.

150 (1) (a) Before obligating the state to accept or receive a grant, a judicial branch agency
151 shall submit a grant summary to the Judicial Council for its approval or rejection when:
152 (i) the state would receive a grant of at least $10,000 but no more than $50,000 if the
153 grant is approved;
154 (ii) receipt of the grant will require no additional permanent full-time employees,
155 additional permanent part-time employees, or combination of additional permanent full-time
156 employees and permanent part-time employees; and
157 (iii) no new state monies will be required to match the grant.
158 (b) The Judicial Council shall report each grant authorized under this section to:
159 (i) the Legislature's Executive Appropriations Committee; and
160 (ii) the Office of the Legislative Fiscal Analyst.
161 (2) The Judicial Council shall approve or reject each grant submitted under the
162 authority of this section.
163 (3) (a) If the Judicial Council approves the grant, the judicial branch agency may accept
164 the grant.
165 (b) If the Judicial Council rejects the grant, the judicial branch agency may not accept
166 the grant.
167 (4) If a judicial branch agency fails to obtain the Judicial Council's approval under this
168 section, the Judicial Council may require the agency to return the grant.
169 Section 5. Section 63-38h-203 is enacted to read:
170 63-38h-203. Legislative review and approval of certain new grant requests.
171 (1) As used in this section:
172 (a) "High impact grant" means a grant that will or could:
173 (i) result in the state receiving total payments of $1,000,000 or more per year from the
174 grantor;
175 (ii) require the state to add 11 or more permanent full-time employees, 11 or more
176 permanent part-time employees, or combination of permanent full-time employees and
177 permanent part-time employees equal to 11 or more in order to receive the grant; or
178 (iii) require the state to expend more than $1,000,000 of new state monies in a fiscal
179 year in order to receive or administer the grant.
180 (b) "Medium impact grant" means a grant that will or could:

181 (i) result in the state receiving total payments of more than $50,000 but less than
182 $1,000,000 per year from the grantor;
183 (ii) require the state to add more than zero but less than 11 permanent full-time
184 employees, more than zero but less than 11 permanent part-time employees, or a combination
185 of permanent full-time employees and permanent part-time employees equal to more than zero
186 but less than 11 in order to receive or administer the grant; or
187 (iii) require the state to expend $1 to $1,000,000 of new state monies in a fiscal year in
188 order to receive or administer the grant.
189 (2) (a) Before obligating the state to accept or receive a medium impact grant, and,
190 where possible, before formally submitting a request for a medium impact grant to the grantor,
191 an agency shall:
192 (i) submit the grant summary to the governor or the Judicial Council, as appropriate,
193 for approval or rejection; and
194 (ii) if the governor or Judicial Council approves the grant, submit the grant summary to
195 the Legislative Executive Appropriations Committee for its review and recommendations.
196 (b) The Legislative Executive Appropriations Committee shall review the grant
197 summary and may:
198 (i) recommend that the agency accept the grant;
199 (ii) recommend that the agency not accept the grant; or
200 (iii) recommend to the governor that the governor call a special session of the
201 Legislature to review and approve or reject the acceptance of the grant.
202 (3) (a) Before obligating the state to accept or receive a high impact grant, and, where
203 possible, before formally submitting a request for a high impact grant to the grantor, an agency
204 shall:
205 (i) submit the grant summary to the governor or Judicial Council, as appropriate, for
206 approval or rejection; and
207 (ii) if the governor or Judicial Council approves the grant, submit the grant summary to
208 the Legislature for its approval or rejection in an annual general session or a special session.
209 (b) (i) If the Legislature approves the grant, the agency may accept the grant.
210 (ii) If the Legislature fails to approve the grant, the agency may not accept the grant.
211 (c) If an agency fails to obtain the Legislature's approval under this Subsection (3):

212 (i) the governor or Judicial Council, as appropriate, may require the agency to return
213 the grant;
214 (ii) the Legislature may direct the agency to return the grant to the grantor; or
215 (iii) the Legislature may reduce the agency's General Fund appropriation in an amount
216 less than, equal to, or greater than the amount of the grant received by the agency.