First Substitute S.B. 18

Senator Wayne L. Niederhauser proposes the following substitute bill:

1 UTAH TRANSPARENCY ADVISORY BOARD
2 AMENDMENTS
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne L. Niederhauser
6 House Sponsor: Kenneth W. Sumsion
7
8 LONG TITLE
9 General Description:
10 This bill requires certain local governments and other entities to provide information to
11 and participate in the Utah Public Finance Website.
12 Highlighted Provisions:
13 This bill:
14 . defines terms;
15 . changes the composition of the Utah Transparency Advisory Board;
16 . provides for financial information from certain local entities to be included on the
17 local entities' websites and linked to the Utah Public Finance Website;
18 . provides for an exception from liability provisions for improper disclosure of
19 records under Title 63G, Chapter 2, Government Records Access and Management
20 Act;
21 . provides time periods for the provision of financial information by local entities;
22 and
23 . makes technical changes.
24 Monies Appropriated in this Bill:
25 None

26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 AMENDS:
30 63A-3-401, as enacted by Laws of Utah 2008, Chapter 234
31 63A-3-402, as enacted by Laws of Utah 2008, Chapter 234
32 63A-3-403, as enacted by Laws of Utah 2008, Chapter 234
33 63A-3-404, as enacted by Laws of Utah 2008, Chapter 234
34 ENACTS:
35 63A-3-405, Utah Code Annotated 1953
36
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 63A-3-401 is amended to read:
39 63A-3-401. Definitions.
40 As used in this part:
41 (1) "Board" means the Utah Transparency Advisory Board created under Section
42 63A-3-403 .
43 (2) "Division" means the Division of Finance of the Department of Administrative
44 Services.
45 (3) "Participating local entity" means each of the following local entities, if the entity
46 meets the size or budget thresholds established by the rules authorized under Subsection
47 63A-3-404 (2)(a):
48 (a) a county;
49 (b) a municipality;
50 (c) a local district under Title 17B, Limited Purpose Local Government Entities - Local
51 Districts;
52 (d) a special service district under Title 17D, Chapter 1, Special Service District Act;
53 (e) a school district; and
54 (f) a charter school.
55 [(3)] (4) "Participating state entity" means the state of Utah, including its executive,
56 legislative, and judicial branches, its departments, divisions, agencies, boards, commissions,

57 councils, committees, and institutions.
58 [(4)] (5) "Public financial information" means records that are required to be made
59 available on the Utah Public Finance Website [as required by this part] or a participating local
60 entity's website as required by this part and as the term is defined by rule under Section
61 63A-3-404 .
62 Section 2. Section 63A-3-402 is amended to read:
63 63A-3-402. Utah Public Finance Website -- Establishment and administration --
64 Records disclosure.
65 (1) There is created the Utah Public Finance Website to be administered by the
66 Division of Finance with the technical assistance of the Department of Technology Services.
67 (2) The Utah Public Finance Website shall:
68 (a) permit Utah taxpayers to:
69 (i) view, understand, and track the use of taxpayer dollars by making public financial
70 information available on the Internet for participating state entities' [public financial
71 information available on the Internet;] and participating local entities, using the Utah Public
72 Finance Website; and
73 (ii) link to websites administered by participating local entities that do not use the Utah
74 Public Finance Website for the purpose of providing participating local entities' public
75 financial information as required by this part and by rule under Section 63A-3-404 ;
76 (b) allow a person who has Internet access to use the website without paying a fee;
77 (c) allow the public to search public financial information on the Utah Public Finance
78 Website using those criteria established by the board;
79 (d) provide access to financial reports, financial audits, budgets, or other financial
80 documents that are used to allocate, appropriate, spend, and account for the government funds,
81 as may be established by rule under Section 63A-3-404 ;
82 (e) have a unique and simplified website address;
83 (f) be directly accessible via a link from the main page of the official state website; and
84 (g) include other links, features, or functionality that will assist the public in obtaining
85 and reviewing public financial information, as may be established by rule under Section
86 63A-3-404 .
87 (3) The division shall [be responsible for]:

88 (a) [establishing and maintaining] establish and maintain the website, including the
89 provision of equipment, resources, and personnel as is necessary;
90 (b) [maintaining] maintain an archive of all information posted to the website;
91 (c) [coordinating and processing] coordinate and process the receipt and posting of
92 public financial information from participating state entities; [and]
93 (d) coordinate and regulate the posting of public financial information by participating
94 local entities; and
95 [(d) providing] (e) provide staff support for the advisory committee.
96 (4) (a) A participating state entity shall permit the public to view the participating
97 [state] entity's public financial information via the website, beginning with information that is
98 generated not later than the fiscal year that begins July 1, 2008.
99 (b) Not later than May 15, 2009, the website shall:
100 (i) be operational; and
101 (ii) permit public access to participating state entities' public financial information.
102 (5) A person who negligently discloses a record that is classified as private, protected,
103 or controlled by Title 63G, Chapter 2, Government Records Access and Management Act, is
104 not criminally or civilly liable for an improper disclosure of the record if the record is disclosed
105 solely as a result of the preparation or publication of the Utah Public Finance Website.
106 Section 3. Section 63A-3-403 is amended to read:
107 63A-3-403. Utah Transparency Advisory Board -- Creation -- Membership --
108 Duties.
109 (1) There is created within the division the Utah Transparency Advisory Board
110 comprised of [seven] members knowledgeable about public finance or providing public access
111 to public financial information as follows:
112 (a) one member designated by the director of the Division of Finance;
113 (b) one member designated by the director of the Governor's Office of Planning and
114 Budget;
115 (c) one member appointed by the governor on advice from the Judicial Council, who
116 shall serve until June 30, 2009;
117 (d) one member appointed by the governor on advice from the Legislative Fiscal
118 Analyst;

119 (e) one member of the Senate, appointed by the governor on advice from the president
120 of the Senate;
121 (f) one member of the House of Representatives, appointed by the governor on advice
122 from the speaker of the House of Representatives; [and]
123 (g) one member designated by the director of the Department of Technology
124 Services[.]; and
125 (h) three additional members designated by a majority of the board members appointed
126 under Subsections (1)(a) through (f) who shall each serve one-year terms as follows:
127 (i) for the term beginning on July 1, 2009 and ending on June 30, 2010, represent the
128 following entities:
129 (A) a school district;
130 (B) a charter school; and
131 (C) a public transit district created under Title 17B, Chapter 2a, Part 8, Public Transit
132 District Act; and
133 (ii) for the term beginning on July 1, 2010 and ending on June 30, 2011, represent the
134 following entities:
135 (A) a county;
136 (B) a municipality; and
137 (C) (I) a local district under Title 17B, Limited Purpose Local Government Entities -
138 Local Districts, that is not a public transit district created under Title 17B, Chapter 2a, Part 8,
139 Public Transit District Act; or
140 (II) a special service district under Title 17D, Chapter 1, Special Service District Act.
141 (2) The board shall:
142 (a) advise the division on matters related to the implementation and administration of
143 this part;
144 (b) develop plans, make recommendations, and assist in implementing the provisions
145 of this part;
146 (c) determine what public financial information shall be provided by participating state
147 and local entities, provided that the public financial information:
148 (i) only includes records that:
149 (A) are classified as public under Title 63G, Chapter 2, Government Records Access

150 and Management Act;
151 (B) are an accounting of monies, funds, accounts, bonds, loans, expenditures, or
152 revenues, regardless of the source; and
153 (C) are owned, held, or administered by the participating state or local entity that is
154 required to provide the record; and
155 (ii) is of the type or nature that should be accessible to the public via a website based
156 on considerations of:
157 (A) the cost effectiveness of providing the information;
158 (B) the value of providing the information to the public; and
159 (C) privacy and security considerations; [and]
160 (d) evaluate the cost effectiveness of implementing specific information resources and
161 features on the website[.];
162 (e) establish size or budget thresholds to identify those local entities that qualify as
163 participating local entities as defined in this part, giving special consideration to the budget and
164 resource limitations of an entity with a current annual budget of less than $10,000,000;
165 (f) require participating local entities to provide public financial information in
166 accordance with the requirements of this part, with a specified content, reporting frequency,
167 and form;
168 (g) require a participating local entity's website to be accessible by link or other direct
169 route from the Utah Public Finance Website if the participating local entity does not use the
170 Utah Public Finance Website; and
171 (h) determine the search methods and the search criteria that shall be made available to
172 the public as part of a website used by a participating local entity under the requirements of this
173 part, which criteria may include:
174 (i) fiscal year;
175 (ii) expenditure type;
176 (iii) name of the agency;
177 (iv) payee;
178 (v) date; and
179 (vi) amount.
180 (3) The board shall annually elect a chair and a vice chair from its members.

181 (4) (a) [Each] Except for a member appointed under Subsections (1)(c), (h), and (i),
182 each member shall serve a two-year term.
183 (b) When a vacancy occurs in the membership for any reason, the replacement shall be
184 appointed for the remainder of the unexpired term.
185 (5) The board shall meet as it determines necessary to accomplish its duties.
186 (6) Reasonable notice shall be given to each member of the board [prior to] before any
187 meeting.
188 (7) A majority of the board constitutes a quorum for the transaction of business.
189 (8) (a) (i) Members who are not government employees shall receive no compensation
190 or benefits for their services, but may receive per diem and expenses incurred in the
191 performance of the member's official duties at the rates established by the Division of Finance
192 under Sections 63A-3-106 and 63A-3-107 .
193 (ii) Members may decline to receive per diem and expenses for their service.
194 (b) (i) State government officer and employee members who do not receive salary, per
195 diem, or expenses from their agency for their service may receive per diem and expenses
196 incurred in the performance of their official duties from the board at the rates established by the
197 Division of Finance under Sections 63A-3-106 and 63A-3-107 .
198 (ii) State government officer and employee members may decline to receive per diem
199 and expenses for their service.
200 (c) Local government members who do not receive salary, per diem, or expenses from
201 the entity that they represent for their service may receive per diem and expenses incurred in
202 the performance of their official duties at the rates established by the Division of Finance under
203 Sections 63A-3-106 and 63A-3-107 .
204 Section 4. Section 63A-3-404 is amended to read:
205 63A-3-404. Rulemaking authority.
206 (1) After consultation with the board, and in accordance with Title 63G, Chapter 3,
207 Utah Administrative Rulemaking Act, the Division of Finance shall make rules to:
208 (a) require participating state entities to provide public financial information for
209 inclusion on the Utah Public Finance Website;
210 (b) define, either uniformly for all participating state entities, or on an entity by entity
211 basis, the term "public financial information" using the standards provided in Subsection

212 63A-3-403 (2)(c); and
213 (c) establish procedures for obtaining, submitting, reporting, storing, and providing
214 public financial information on the Utah Public Finance Website, which may include a
215 specified reporting frequency and form.
216 (2) After consultation with the board, and in accordance with Title 63G, Chapter 3,
217 Utah Administrative Rulemaking Act, the Division of Finance may make rules to:
218 (a) require a participating state or local entity to list certain expenditures made by a
219 person under a contract with the entity; and
220 (b) if a list is required under Subsection (2)(a), require the following information to be
221 included:
222 (i) the name of the participating state or local entity making the expenditure;
223 (ii) the name of the person receiving the expenditure;
224 (iii) the date of the expenditure;
225 (iv) the amount of the expenditure;
226 (v) the purpose of the expenditure;
227 (vi) the name of each party to the contract;
228 (vii) an electronic copy of the contract; or
229 (viii) any other criteria designated by rule.
230 Section 5. Section 63A-3-405 is enacted to read:
231 63A-3-405. Participation by local entities.
232 (1) (a) Not later than May 15, 2010, the following participating local entities, in
233 conformity with the rules established under Section 63A-3-404 , shall provide public financial
234 information through the Utah Public Finance Website or their own website and provide a link
235 to their website through the Utah Public Finance Website:
236 (i) school districts;
237 (ii) charter schools; and
238 (iii) public transit districts created under Title 17B, Chapter 2a, Part 8, Public Transit
239 District Act.
240 (b) Participating local entities subject to this Subsection (1) shall permit information
241 that is generated not later than the fiscal year that begins July 1, 2009 to be accessible via the
242 website.

243 (2) (a) Not later than May 15, 2011, the following participating local entities, in
244 conformity with the rules established under Section 63A-3-404 , shall be required to provide
245 public financial information through the Utah Public Finance Website or their own website and
246 provide a link to their website through the Utah Public Finance Website:
247 (i) counties;
248 (ii) municipalities;
249 (iii) local districts under Title 17B, Limited Purpose Local Government Entities - Local
250 Districts, that are not already required to report; and
251 (iv) special service districts under Title 17D, Chapter 1, Special Service District Act.
252 (b) Participating local entities subject to this Subsection (2) shall permit information
253 that is generated not later than the fiscal year that begins July 1, 2010 to be accessible via the
254 website.