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First Substitute H.B. 425

Representative Ron Bigelow proposes the following substitute bill:




Chief Sponsor: Ron Bigelow

Senate Sponsor: Lyle W. Hillyard

             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions of the Budgetary Procedures Act that address fees.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides definitions;
             13          .    makes technical and organizational modifications;
             14          .    clarifies that a fee agency may not create, change, or collect a fee that has not been
             15      established according to the requirements of the fee provisions of the act;
             16          .    clarifies that each fee agency shall submit its fee schedule and special assessment
             17      amounts to the Legislature for approval on an annual basis;
             18          .    exempts certain fees that involve financial processing charges that are assessed by a
             19      non-governmental third party from the requirement that fees be pre-approved by the
             20      Legislature;
             21          .    modifies procedures that are required for fee changes; and
             22          .    makes technical changes.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:

             26          None
             27      Utah Code Sections Affected:
             28      AMENDS:
             29          63J-1-504, as renumbered and amended by Laws of Utah 2009, Chapters 183 and 368
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 63J-1-504 is amended to read:
             33           63J-1-504. Fees -- Adoption, procedure, and approval -- Establishing and
             34      assessing fees without legislative approval.
             35          (1) As used in this section:
             36          (a) (i) "Agency" means each department, commission, board, council, agency,
             37      institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
             38      unit, bureau, panel, or other administrative unit of the state.
             39          (ii) "Agency" does not mean the Legislature or its committees.
             40          (b) "Fee agency" means any agency that is authorized to establish fees.
             41          (c) "Fee schedule" means the complete list of fees charged by a fee agency and the
             42      amount of those fees.
             43          (2) Each fee agency shall[: (a)] adopt a schedule of fees assessed for services provided
             44      by the fee agency that are:
             45          [(i)] (a) reasonable, fair, and reflect the cost of services provided; and
             46          [(ii)] (b) established according to a cost formula determined by the director of the
             47      Governor's Office of Planning and Budget and the director of the Division of Finance in
             48      conjunction with the agency seeking to establish the fee[;].
             49          (3) Except as provided in Subsection (6), a fee agency may not:
             50          (a) set fees by rule; or
             51          (b) create, change, or collect any fee unless the fee has been established according to
             52      the procedures and requirements of this section.
             53          (4) Each fee agency that is proposing a new fee or proposing to change a fee shall:
             54          [(b) (i)] (a) present each proposed fee at a public hearing, subject to the requirements of
             55      Title 52, Chapter 4, Open and Public Meetings Act; [and]
             56          [(ii)] (b) increase, decrease, or affirm each proposed fee based on the results of the

             57      public hearing;
             58          (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as
             59      part of the agency's annual appropriations request; and
             60          (d) where necessary, modify the fee schedule to implement the Legislature's actions.
             61          [(3) A fee agency may not:]
             62          [(a) set fees by rule; or]
             63          [(b) charge or collect any fee without approval by the Legislature unless the fee agency
             64      has complied with the procedures and requirements of Subsection (5).]
             65          (5) (a) Each fee agency shall submit its fee schedule or special assessment amount to
             66      the Legislature for its approval on an annual basis.
             67          [(4)] (b) The Legislature may approve, increase or decrease and approve, or reject any
             68      fee submitted to it by a fee agency.
             69          [(5) (a)] (6) After [the] conducting the public hearing required by this section, a fee
             70      agency may establish and assess fees without first obtaining legislative approval if:
             71          [(i)] (a) (i) the Legislature creates a new program that is to be funded by fees to be set
             72      by the Legislature; [and]
             73          (ii) the new program's effective date is before the Legislature's next annual general
             74      session; [or] and
             75          (iii) the fee agency submits the fee schedule for the new program to the Legislature for
             76      its approval at a special session, if allowed in the governor's call, or at the next annual general
             77      session of the Legislature, whichever is sooner;
             78          [(iii)] (b) the Division of Occupational and Professional licensing makes a special
             79      assessment against qualified beneficiaries under the Residence Lien Restriction and Lien
             80      Recovery Fund Act as provided in Subsection 38-11-206 (1)[.]; or
             81          [(b) Each fee agency shall submit its fee schedule or special assessment amount to the
             82      Legislature for its approval at a special session, if allowed in the governor's call, or at the next
             83      annual general session of the Legislature, whichever is sooner.]
             84          [(c) Unless the fee schedule is approved by the Legislature, the fee agency may not
             85      collect a fee set according to this subsection after the adjournment of the annual general session
             86      following the session that established the new program.]
             87          (c) (i) the fee agency proposes to increase or decrease an existing fee for the purpose of

             88      adding or removing a financial processing fee that is charged or assessed by a
             89      non-governmental third party but is included as part of the fee charged by the fee agency;
             90          (ii) the amount of the increase or decrease in the fee is equal to the amount of the
             91      financial processing fee charged or assessed by the non-governmental third party; and
             92          (iii) the increased or decreased fee is submitted to the Legislature for its approval at a
             93      special session, if allowed in the governor's call, or at the next annual session of the
             94      Legislature, whichever is sooner.
             95          [(6) (a) Each fee agency that wishes to increase any fee by 5% or more shall obtain
             96      legislative approval for the fee increase as provided in this subsection before assessing the new
             97      fee.]
             98          [(b)] (7) (a) Each fee agency that wishes to [increase] change any fee [by 5% or more]
             99      shall submit to the governor as part of the agency's annual appropriation request a list that
             100      identifies:
             101          (i) the title or purpose of the fee;
             102          (ii) the present amount of the fee;
             103          (iii) the proposed new amount of the fee;
             104          (iv) the percent that the fee will have increased if the Legislature approves the higher
             105      fee; [and]
             106          (v) the estimated total annual revenue change that will result from the change in the
             107      fee;
             108          (vi) the account or fund into which the fee will be deposited; and
             109          [(v)] (vii) the reason for the [increase] change in the fee.
             110          [(c)] (b) (i) The governor may review and approve, modify and approve, or reject the
             111      fee increases.
             112          (ii) The governor shall transmit the list required by Subsection [(6)(b)] (7)(a), with any
             113      modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
             114          [(d)] (c) Bills approving any fee [increases of 5% or more] change shall be filed before
             115      the beginning of the Legislature's annual general session, if possible.

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