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Second Substitute S.B. 38

This document includes House Committee Amendments incorporated into the bill on Mon, Feb 25, 2008 at 3:01 PM by jeyring. -->

Senator Wayne L. Niederhauser proposes the following substitute bill:


             1     
TRANSPARENCY IN GOVERNMENT FINANCE

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne L. Niederhauser

             5     
House Sponsor: John Dougall

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Administrative Services Code by providing that certain
             10      public financial information be made available on the Internet.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides for definitions;
             14          .    creates the Utah Public Finance Website for the purpose of providing public
             15      financial information, and provides that it be administered by the Division of
             16      Finance;
             17          .    requires state entities to provide public financial information that will be accessed
             18      through the Utah Public Finance Website;
             19          .    requires certain local entities to provide public financial information on their own
             20      websites and provide a link to their website on the Utah Public Finance Website;
             21          .    provides the required capabilities of the website, and provides for website
             22      accessibility;
             23          .    creates the Utah Transparency Advisory Board to:
             24              .    advise the Division of Finance on website implementation and administration
             25      and on what public financial information must be made available on the



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             26
     Internet; and
             27              .    to develop plans, make recommendations, and evaluate the cost effectiveness of
             28      implementing certain information resources on the website;
             29          .    provides that the Division of Finance, in connection with the board, may make rules
             30      to:
             31              .    determine size or budget thresholds to exempt certain local entities from the
             32      requirements of the part;
             33              .    determine what public financial information must be made available on the
             34      Internet;
             35              .    require specific reporting obligations that are required of participating entities,
             36      including the frequency and form of submission of the information; and
             37              .    establish minimum website capability requirements; and
             38          .    provides for board membership and other duties.
             39      Monies Appropriated in this Bill:
             40          None
             41      Other Special Clauses:
             42          None
             43      Utah Code Sections Affected:
             44      ENACTS:
             45          63A-3-401, Utah Code Annotated 1953
             46          63A-3-402, Utah Code Annotated 1953
             47          63A-3-403, Utah Code Annotated 1953
             48          63A-3-404, Utah Code Annotated 1953
             49          63A-3-405, Utah Code Annotated 1953
             50     

             51      Be it enacted by the Legislature of the state of Utah:
             52          Section 1. Section 63A-3-401 is enacted to read:
             53     
Part 4. Utah Transparency Advisory Board

             54          63A-3-401. Definitions.
             55          As used in this part:
             56          (1) "Board" means the Utah Transparency Advisory Board created under Section



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             57
     63A-3-402 .
             58          (2) "Division" means the Division of Finance of the Department of Administrative
             59      Services;
             60          (3) "Participating local entity" means each of the following local entities, provided that
             61      the entity meets the size or budget thresholds established by the rules authorized under
             62      Subsection 63A-3-405 (2)(a):
             63          (a) a county;
             64          (b) a municipality;
             65          (c) a local district under Title 17B, Limited Purpose Local Government Entities - Local
             66      Districts;
             67          (d) a special service district under Title 17A, Chapter 2, Part 13, Utah Special Service
             68      District Act;
             69          (e) a state institution of higher education as defined under Section 53B-3-102 ;
             70          (f) a school district; and
             71          (g) a charter school.
             72          (4) "Participating state entity" means the state of Utah, including its executive,
             73      legislative, and judicial branches, its departments, divisions, agencies, boards, commissions,
             74      councils, committees, and institutions.
             75          (5) "Public financial information" means records that are required to be made available
             76      on the Utah Public Finance Website or a participating local entity's website as required by this
             77      part and as the term is defined by rule under Section 63A-3-405 .
             78          Section 2. Section 63A-3-402 is enacted to read:
             79          63A-3-402. Utah Public Finance Website -- Establishment and administration.
             80          (1) There is created the Utah Public Finance Website to be administered by the
             81      Division of Finance with the technical assistance of the Department of Technology Services.
             82          (2) The Utah Public Finance Website shall:
             83          (a) permit Utah taxpayers to:
             84          (i) view, understand, and track the use of taxpayer dollars by making participating state
             85      entities' public financial information available on the Internet;
             86          (ii) provide links to websites administered by participating local entities for the
             87      purpose of providing participating local entities' public financial information as required by this



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             88
     part and by rule under Section 63A-3-405 ;
             89          (b) allow a person who has Internet access to use the website without paying a fee;
             90          (c) allow the public to search public financial information on the Utah Public Finance
             91      Website using those criteria established by the board;
             92          (d) provide access to financial reports, financial audits, budgets, or other financial
             93      documents that are used to allocate, appropriate, spend, and account for the government funds,
             94      as may be established by rule under Section 63A-3-405 ;
             95          (e) have a unique and simplified website address;
             96          (f) be directly accessible via a link from the main page of the official state website; and
             97          (g) include other links, features, or functionality that will assist the public in obtaining
             98      and reviewing public financial information, as may be established by rule under Section
             99      63A-3-405 .
             100          (3) The division shall be responsible for:
             101          (a) establishing and maintaining the website, including the provision of equipment,
             102      resources, and personnel as is necessary;
             103          (b) maintaining an archive of all information posted to the website;
             104          (c) coordinating and processing the receipt and posting of public financial information
             105      from participating state entities;
             106          (d) coordinating and regulating the posting of public financial information by
             107      participating local entities; and
             108          (e) providing staff support for the advisory committee.
             109          (4) (a) A participating state entity shall permit the public to view the participating state
             110      entity's public financial information via the website, beginning with information that is
             111      generated not later than the fiscal year that begins July 1, 2008;
             112          (b) Not later than May 15, 2009, the website shall:
             113          (i) be operational; and
             114          (ii) permit public access to participating state entities' public financial information;
             115          Section 3. Section 63A-3-403 is enacted to read:
             116          63A-3-403. Participation by local entities.
             117          (1) (a) Not later than May 15, 2010, the following participating local entities, in
             118      conformity with the rules established under Section 63A-3-405 , shall be required to provide



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             119
     public financial information via their own website and provide a link to their website via the
             120      Utah Public Finance Website:
             121          (i) state institutions of higher education;
             122          (ii) school districts;
             123          (iii) charter schools; and
             124          (iv) public transit districts created under Title 17B, Chapter 2a, Part 8, Public Transit
             125      District Act.
             126          (b) Participating local entities subject to this Subsection (1) shall permit information
             127      that is generated not later than the fiscal year that begins July 1, 2009 to be assessable via the
             128      website.
             129          (2) (a) Not later than May 15, 2011, the following participating local entities, in
             130      conformity with the rules established under Section 63A-3-405 , shall be required to provide
             131      public financial information via their own website and provide a link to their website via the
             132      Utah Public Finance Website:
             133          (i) counties;
             134          (ii) municipalities;
             135          (iii) local districts under Title 17B, Limited Purpose Local Government Entities - Local
             136      Districts, that are not already required to report; and
             137          (iv) special service districts under Title 17A, Chapter 2, Part 13, Utah Special Service
             138      District Act.
             139          (b) Participating local entities subject to this Subsection (2) shall permit information
             140      that is generated not later than the fiscal year that begins July 1, 2010 to be assessable via the
             141      website.
             142          Section 4. Section 63A-3-404 is enacted to read:
             143          63A-3-404. Utah Transparency Advisory Board -- Creation -- Membership --
             144      Duties.
             145          (1) There is created within the division the Utah Transparency Advisory Board
             146      comprised of nine members knowledgeable about public finance or providing public access to
             147      public financial information as follows:
             148          (a) one member designated by the director of the Division of Finance;
             149          (b) one member designated by the director of the Governor's Office of Planning and



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             150
     Budget;
             151          (c) one member designated by the Judicial Council;
             152          (d) one member designated by the Legislative Fiscal Analyst;
             153          (e) one member of the Senate, appointed by the president of the Senate;
             154          (f) one member of the House of Representatives, appointed by the speaker of the House
             155      of Representatives; and
             156          (g) three additional members who shall each:
             157          (i) serve one-year terms, except that the individuals appointed to the initial term of
             158      these positions shall serve until June 30, 2009;
             159          (ii) be designated by a majority of the board members appointed under Subsections
             160      (1)(a) through (f);
             161          (iii) be a representative of a participating state entity or a participating local entity; and
             162          (iv) (A) for the initial term ending on June 30, 2009, represent a participating state
             163      entity;
             164          (B) for the term beginning on July 1, 2009 and ending on June 30, 2010, represent one
             165      of the following entities:
             166          (I) a state institution of higher education;
             167          (II) a school district or charter school; or
             168          (III) a public transit district created under Title 17B, Chapter 2a, Part 8, Public Transit
             169      District Act; and
             170          (C) for the term beginning on July 1, 2010 and ending on June 30, 2011, represent one
             171      of the following entities:
             172          (I) a county;
             173          (II) a municipality; or
             174          (III) (Aa) a local district under Title 17B, Limited Purpose Local Government Entities -
             175      Local Districts, that is not a public transit district created under Title 17B, Chapter 2a, Part 8,
             176      Public Transit District Act ; or
             177          (Bb) a special service district under Title 17A, Chapter 2, Part 13, Utah Special Service
             178      District Act.
             179          (2) The board shall:
             180          (a) advise the division on matters related to the implementation and administration of



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             181
     this part;
             182          (b) develop plans, make recommendations, and assist in implementing the provisions
             183      of this part;
             184          (c) determine what public financial information shall be provided by participating state
             185      entities and participating local entities, provided that the public financial information:
             186          (i) only includes records that:
             187          (A) are classified as public under Title 63, Chapter 2, Government Records Access and
             188      Management Act;
             189          (B) are an accounting of monies, funds, accounts, bonds, loans, expenditures, or
             190      revenues, regardless of the source; and
             191          (C) are owned, held, or administered by the participating state entity or participating
             192      local entity required that is to provide the record; and
             193          (ii) is of the type or nature that should be accessible to the public via a website based
             194      on considerations of:
             195          (A) the cost effectiveness of providing the information;
             196          (B) the value of providing the information to the public; and
             197          (C) privacy and security considerations; and
             198          (d) evaluate the cost effectiveness of implementing specific information resources and
             199      features on the website.
             200          (3) The board shall annually elect a chair and a vice chair from its members.
             201          (4) (a) Except for those members appointed under Subsection (1)(g), each member
             202      shall serve a two year term.
             203          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             204      appointed for the remainder of the unexpired term.
             205          (5) The board shall meet as it determines necessary to accomplish its duties.
             206          (6) Reasonable notice shall be given to each member of the board prior to any meeting.
             207          (7) A majority of the board constitutes a quorum for the transaction of business.
             208          (8) (a) (i) Members who are not government employees shall receive no compensation
             209      or benefits for their services, but may receive per diem and expenses incurred in the
             210      performance of the member's official duties at the rates established by the Division of Finance
             211      under Sections 63A-3-106 and 63A-3-107 .



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House Committee Amendments 2-25-2008 je/
             212
         (ii) Members may decline to receive per diem and expenses for their service.
             213          (b) (i) State government officer and employee members who do not receive salary, per
             214      diem, or expenses from their agency for their service may receive per diem and expenses
             215      incurred in the performance of their official duties from the board at the rates established by the
             216      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             217          (ii) State government officer and employee members may decline to receive per diem
             218      and expenses for their service.
             219          (c) (i) Local government members who do not receive salary, per diem, or expenses
             220      from the entity that they represent for their service may receive per diem and expenses incurred
             221      in the performance of their official duties at the rates established by the Division of Finance
             222      under Sections 63A-3-106 and 63A-3-107 .
             223          (ii) Local government members, if any, may decline to receive per diem and expenses
             224      for their service.
             225          Section 5. Section 63A-3-405 is enacted to read:
             226          63A-3-405. Rulemaking authority.
             227          (1) H. (a) .H After consultation with the board, and in accordance with Title 63,
             227a      Chapter 46a,
             228      Utah Administrative Rulemaking Act, the Division of Finance shall make rules to:
             229           H. [ (a) ] (i) .H require participating state entities to provide public financial
             229a      information for
             230      inclusion on the Utah Public Finance Website;
             231           H. [ (b) (i) ] (ii) (A) .H establish size or budget thresholds to identify those local entities
             231a      that qualify as
             232      participating local entities as defined in this part;
             233           H. [ (ii) ] (B) .H require participating local entities to provide public financial
             233a      information in
             234      accordance with the requirements of this part, with a specified content, reporting frequency and
             235      form; and
             236           H. [ (iii) ] (C) .H require the participating local entity's website to be accessible by
             236a      link or other
             237      direct route from the Utah Public Finance Website;
             238           H. [ (c) ] (iii) .H define, either uniformly for all participating state entities or
             238a      participating local
             239      entities, or on an entity by entity basis, the term "public financial information" using the
             240      standards provided in Subsection 63A-3-404 (2)(c).
             241           H. [ (d) ] (iv) .H establish procedures for obtaining, submitting, reporting, storing,
             241a      and providing
             242      public financial information on the Utah Public Finance Website and on local entities'



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House Committee Amendments 2-25-2008 je/
             243
     websites, which may include a specified reporting frequency and form; H. and
             244           [ (e) ] (v) .H determine the search methods and the search criteria that shall be made
             244a      available to
             245      the public as part of a website used by a participating local entity under the requirements of this
             246      part, which criteria may include:
             247           H. [ (i) ] (A) .H fiscal year;
             248           H. [ (ii) ] (B) .H expenditure type;
             249           H. [ (iii) ] (C) .H name of the agency;
             250           H. [ (iv) ] (D) .H payee;
             251           H. [ (v) ] (E) .H date;
             252           H. [ (vi) ] (F) .H amount; and
             253           H. [ (vii) ] (G) .H any other criteria designated by the rule H. [ ; ] .
             253a          (b) Rules that establish the obligations of participating entities under the authority of
             253b      Subsection (1)(a) shall give special consideration to the budget and resource limitations of a
             253c      participating entity that has a current annual budget of less than $10 million. .H
             254          (2) After consultation with the board, and in accordance with Title 63, Chapter 46a,
             255      Utah Administrative Rulemaking Act, the Division of Finance may make rules to:
             256          (a) require a participating state entity or a participating local entity to list certain
             257      expenditures made by a person under a contract with the entity;
             258          (b) if a list is required under Subsection (2)(a), require the following information to be
             259      included:
             260          (i) the name of the participating state entity or a participating local entity making the
             261      expenditure;
             262          (ii) the name of the person receiving the expenditure;
             263          (iii) the date of the expenditure;
             264          (iv) the amount of the expenditure;
             265          (v) the purpose of the expenditure;
             266          (vi) the name of each party to the contract;
             267          (vii) an electronic copy of the contract; or
             268          (viii) any other criteria designated by rule.


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