S.B. 59 Enrolled

             1     

INDEPENDENT ENTITIES FINANCIAL TRANSPARENCY

             2     
DISCLOSURE

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Deidre M. Henderson

             6     
House Sponsor: Steve Eliason

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies provisions related to making certain independent entities' financial
             11      information available to the public on the Internet.
             12      Highlighted Provisions:
             13          This bill:
             14          .    requires the Utah State Retirement Office to publicly report certain financial
             15      information on its website;
             16          .    defines "independent entity";
             17          .    requires an independent entity, except the Workers' Compensation Fund and the
             18      Utah State Retirement Office, to report certain financial information on the Utah
             19      Public Finance Website or via a link to its own website through the Utah Public
             20      Finance Website;
             21          .    provides specific reporting exclusions for certain independent entities; and
             22          .    makes technical changes.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:
             28      AMENDS:
             29           63A-3-401 , as last amended by Laws of Utah 2012, Chapter 94


             30           63A-3-402 , as last amended by Laws of Utah 2011, Chapters 46 and 417
             31           63A-3-403 , as last amended by Laws of Utah 2013, Chapters 84 and 310
             32           63A-3-404 , as last amended by Laws of Utah 2009, Chapter 310
             33      ENACTS:
             34           49-11-1101 , Utah Code Annotated 1953
             35     
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 49-11-1101 is enacted to read:
             38     
Part 11. Public Financial Disclosure

             39          49-11-1101. Public financial information disclosure on website -- Exclusions.
             40          (1) The office shall provide the following financial information for the public on its
             41      website:
             42          (a) administrative expense transactions from its general ledger accounting system; and
             43          (b) aggregated employee compensation information by department.
             44          (2) For purposes of this part, the office is not required to provide other information for
             45      public access on its website, if the disclosure of the information would conflict with the
             46      fiduciary obligations of the board, including:
             47          (a) revenue transactions; and
             48          (b) member and participant information.
             49          Section 2. Section 63A-3-401 is amended to read:
             50     
Part 4. Utah Public Finance Website

             51           63A-3-401. Definitions.
             52          As used in this part:
             53          (1) "Board" means the Utah Transparency Advisory Board created under Section
             54      63A-3-403 .
             55          (2) "Division" means the Division of Finance of the Department of Administrative
             56      Services.
             57          (3) (a) "Independent entity," except as provided in Subsection (3)(b), is as defined in


             58      Section 63E-1-102 .
             59          (b) "Independent entity" does not include:
             60          (i) the Workers' Compensation Fund created in Section 31A-33-102 ; or
             61          (ii) the Utah State Retirement Office created in Section 49-11-201 .
             62          [(3)] (4) "Participating local entity" means each of the following local entities, if the
             63      entity meets the size or budget thresholds established by the [rules authorized] board under
             64      Subsection [ 63A-3-404 (2)(a)] 63A-3-403 (3)(e):
             65          (a) a county;
             66          (b) a municipality;
             67          (c) a local district under Title 17B, Limited Purpose Local Government Entities - Local
             68      Districts;
             69          (d) a special service district under Title 17D, Chapter 1, Special Service District Act;
             70          (e) a school district;
             71          (f) a charter school; and
             72          (g) an interlocal entity as defined in Section 11-13-103 .
             73          [(4)] (5) "Participating state entity" means the state of Utah, including its executive,
             74      legislative, and judicial branches, its departments, divisions, agencies, boards, commissions,
             75      councils, committees, and institutions.
             76          [(5)] (6) "Public financial information" means records that are required to be made
             77      available on the Utah Public Finance Website [or], a participating local entity's website, or an
             78      independent entity's website as required by this part, and as the term "public financial
             79      information" is defined by rule under Section 63A-3-404 .
             80          Section 3. Section 63A-3-402 is amended to read:
             81           63A-3-402. Utah Public Finance Website -- Establishment and administration --
             82      Records disclosure -- Exceptions.
             83          (1) There is created the Utah Public Finance Website to be administered by the
             84      Division of Finance with the technical assistance of the Department of Technology Services.
             85          (2) The Utah Public Finance Website shall:


             86          (a) permit Utah taxpayers to:
             87          (i) view, understand, and track the use of taxpayer dollars by making public financial
             88      information available on the Internet for participating state [entities' and] entities, independent
             89      entities, and participating local entities, using the Utah Public Finance Website; and
             90          (ii) link to websites administered by participating local entities or independent entities
             91      that do not use the Utah Public Finance Website for the purpose of providing participating
             92      local entities' or independent entities' public financial information as required by this part and
             93      by rule under Section 63A-3-404 ;
             94          (b) allow a person who has Internet access to use the website without paying a fee;
             95          (c) allow the public to search public financial information on the Utah Public Finance
             96      Website using [those] criteria established by the board;
             97          (d) provide access to financial reports, financial audits, budgets, or other financial
             98      documents that are used to allocate, appropriate, spend, and account for [the] government
             99      funds, as may be established by rule under Section 63A-3-404 ;
             100          (e) have a unique and simplified website address;
             101          (f) be directly accessible via a link from the main page of the official state website;
             102          (g) include other links, features, or functionality that will assist the public in obtaining
             103      and reviewing public financial information, as may be established by rule under Section
             104      63A-3-404 ; and
             105          (h) include a link to school report cards published on the State Board of Education's
             106      website pursuant to Section 53A-1-1112 .
             107          (3) The division shall:
             108          (a) establish and maintain the website, including the provision of equipment, resources,
             109      and personnel as [is] necessary;
             110          (b) maintain an archive of all information posted to the website;
             111          (c) coordinate and process the receipt and posting of public financial information from
             112      participating state entities;
             113          (d) coordinate and regulate the posting of public financial information by participating


             114      local entities and independent entities; and
             115          (e) provide staff support for the advisory committee.
             116          (4) (a) A participating state entity and each independent entity shall permit the public
             117      to view the [participating] entity's public financial information via the website, beginning with
             118      information that is generated not later than the fiscal year that begins July 1, 2008, except that
             119      public financial information for an:
             120          (i) institution of higher education shall be provided beginning with information
             121      generated for the fiscal year beginning July 1, 2009[.]; and
             122          (ii) independent entity shall be provided beginning with information generated for the
             123      entity's fiscal year beginning in 2014.
             124          (b) [Not] No later than May 15, 2009, the website shall:
             125          (i) be operational; and
             126          (ii) permit public access to participating state entities' public financial information,
             127      except as provided in [Subsection] Subsections (4)(c) and (d).
             128          (c) An institution of higher education that is a participating state entity shall submit the
             129      entity's public financial information at a time allowing for inclusion on the website no later
             130      than May 15, 2010.
             131          (d) No later than the first full quarter after July 1, 2014, an independent entity shall
             132      submit the entity's public financial information for inclusion on the Utah Public Finance
             133      Website or via a link to its own website on the Utah Public Finance Website.
             134          (5) (a) The Utah Educational Savings Plan, created in Section 53B-8a-103 , shall
             135      provide the following financial information to the division for posting on the Utah Public
             136      Finance Website:
             137          (i) administrative fund expense transactions from its general ledger accounting system;
             138      and
             139          (ii) employee compensation information.
             140          (b) The plan is not required to submit other financial information to the division,
             141      including:


             142          (i) revenue transactions;
             143          (ii) account owner transactions; and
             144          (iii) fiduciary or commercial information, as defined in Section 53B-12-102 .
             145          (6) (a) The following independent entities shall each provide administrative expense
             146      transactions from its general ledger accounting system and employee compensation
             147      information to the division for posting on the Utah Public Finance Website or via a link to a
             148      website administered by the independent entity:
             149          (i) the Utah Capital Investment Corporation, created in Section 63M-1-1207 ;
             150          (ii) the Utah Housing Corporation, created in Section 35A-8-704 ; and
             151          (iii) the School and Institutional Trust Lands Administration, created in Section
             152      53C-1-201 .
             153          (b) For purposes of this part, an independent entity described in Subsection (6)(a) is not
             154      required to submit to the division, or provide a link to, other financial information, including:
             155          (i) revenue transactions of a fund or account created in its enabling statute;
             156          (ii) fiduciary or commercial information related to any subject if the disclosure of the
             157      information:
             158          (A) would conflict with fiduciary obligations; or
             159          (B) is prohibited by insider trading provisions;
             160          (iii) information of a commercial nature, including information related to:
             161          (A) account owners, borrowers, and dependents;
             162          (B) demographic data;
             163          (C) contracts and related payments;
             164          (D) negotiations;
             165          (E) proposals or bids;
             166          (F) investments;
             167          (G) the investment and management of funds;
             168          (H) fees and charges;
             169          (I) plan and program design;


             170          (J) investment options and underlying investments offered to account owners;
             171          (K) marketing and outreach efforts;
             172          (L) lending criteria;
             173          (M) the structure and terms of bonding; and
             174          (N) financial plans or strategies; and
             175          (iv) information protected from public disclosure by federal law.
             176          [(6)] (7) A person who negligently discloses a record that is classified as private,
             177      protected, or controlled by Title 63G, Chapter 2, Government Records Access and
             178      Management Act, is not criminally or civilly liable for an improper disclosure of the record if
             179      the record is disclosed solely as a result of the preparation or publication of the Utah Public
             180      Finance Website.
             181          Section 4. Section 63A-3-403 is amended to read:
             182           63A-3-403. Utah Transparency Advisory Board -- Creation -- Membership --
             183      Duties -- Determining which records are public.
             184          (1) There is created within the department the Utah Transparency Advisory Board
             185      comprised of members knowledgeable about public finance or providing public access to
             186      public information.
             187          (2) The board consists of:
             188          (a) an individual appointed by the director of the Division of Finance;
             189          (b) an individual appointed by the executive director of the Governor's Office of
             190      Management and Budget;
             191          (c) an individual appointed by the governor on advice from the Legislative Fiscal
             192      Analyst;
             193          (d) one member of the Senate, appointed by the governor on advice from the president
             194      of the Senate;
             195          (e) one member of the House of Representatives, appointed by the governor on advice
             196      from the speaker of the House of Representatives;
             197          (f) an individual appointed by the director of the Department of Technology Services;


             198          (g) the director of the Division of Archives created in Section 63A-12-101 or the
             199      director's designee;
             200          (h) an individual who is a member of the State Records Committee created in Section
             201      63G-2-501 , appointed by the governor;
             202          (i) an individual representing counties, appointed by the governor;
             203          (j) an individual representing municipalities, appointed by the governor; and
             204          (k) two individuals who are members of the public and who have knowledge,
             205      expertise, or experience in matters relating to the board's duties under Subsection (10),
             206      appointed by the board members identified in Subsections (2)(a) through (j).
             207          (3) The board shall:
             208          (a) advise the division on matters related to the implementation and administration of
             209      this part;
             210          (b) develop plans, make recommendations, and assist in implementing the provisions
             211      of this part;
             212          (c) determine what public financial information shall be provided by a participating
             213      state [and local entities] entity, independent entity, and participating local entity, if the public
             214      financial information:
             215          (i) only includes records that:
             216          (A) are classified as public under Title 63G, Chapter 2, Government Records Access
             217      and Management Act, or, subject to any specific limitations and requirements regarding the
             218      provision of financial information from the entity described in Section 63A-3-402, if an entity
             219      is exempt from Title 63G, Chapter 2, Government Records Access and Management Act,
             220      records that would normally be classified as public if the entity were not exempt from Title
             221      63G, Chapter 2, Government Records Access and Management Act;
             222          (B) are an accounting of money, funds, accounts, bonds, loans, expenditures, or
             223      revenues, regardless of the source; and
             224          (C) are owned, held, or administered by the participating state [or] entity, independent
             225      entity, or participating local entity that is required to provide the record; and


             226          (ii) is of the type or nature that should be accessible to the public via a website based
             227      on considerations of:
             228          (A) the cost effectiveness of providing the information;
             229          (B) the value of providing the information to the public; and
             230          (C) privacy and security considerations;
             231          (d) evaluate the cost effectiveness of implementing specific information resources and
             232      features on the website;
             233          (e) establish size or budget thresholds to identify those local entities that qualify as
             234      participating local entities as defined in this part, giving special consideration to the budget and
             235      resource limitations of an entity with a current annual budget of less than $10,000,000;
             236          (f) require participating local entities to provide public financial information in
             237      accordance with the requirements of this part, with a specified content, reporting frequency,
             238      and form;
             239          (g) require an independent entity's website or a participating local entity's website to be
             240      accessible by link or other direct route from the Utah Public Finance Website if the
             241      independent entity or participating local entity does not use the Utah Public Finance Website;
             242      and
             243          (h) determine the search methods and the search criteria that shall be made available to
             244      the public as part of a website used by an independent entity or a participating local entity
             245      under the requirements of this part, which criteria may include:
             246          (i) fiscal year;
             247          (ii) expenditure type;
             248          (iii) name of the agency;
             249          (iv) payee;
             250          (v) date; and
             251          (vi) amount.
             252          (4) The board shall annually elect a chair and a vice chair from its members.
             253          (5) (a) Each member shall serve a two-year term.


             254          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             255      appointed for the remainder of the unexpired term.
             256          (6) To accomplish its duties, the board[: (a) may meet as many as eight times during
             257      2013; and (b) shall, after 2013,] shall meet as it determines necessary.
             258          (7) Reasonable notice shall be given to each member of the board before any meeting.
             259          (8) A majority of the board constitutes a quorum for the transaction of business.
             260          (9) A member may not receive compensation or benefits for the member's service, but
             261      may receive per diem and travel expenses in accordance with:
             262          (a) Section 63A-3-106 ;
             263          (b) Section 63A-3-107 ; and
             264          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             265      63A-3-107 .
             266          (10) (a) As used in this Subsection (10):
             267          (i) "Information website" means a single Internet website containing public information
             268      or links to public information.
             269          (ii) "Public information" means records of state [or] government, local government, or
             270      an independent entity that are classified as public under Title 63G, Chapter 2, Government
             271      Records Access and Management Act, or, subject to any specific limitations and requirements
             272      regarding the provision of financial information from the entity described in Section
             273      63A-3-402 , if an entity is exempt from Title 63G, Chapter 2, Government Records Access and
             274      Management Act, records that would normally be classified as public if the entity were not
             275      exempt from Title 63G, Chapter 2, Government Records Access and Management Act.
             276          (b) The board shall:
             277          (i) study the establishment of an information website and develop recommendations for
             278      its establishment;
             279          (ii) develop recommendations about how to make public information more readily
             280      available to the public through the information website; and
             281          (iii) develop standards to make uniform the format and accessibility of public


             282      information posted to the information website[; and].
             283          [(iv) no later than November 30, 2013, report the board's recommendations and
             284      standards developed under Subsections (10)(b)(i) through (iii) to the executive director and the
             285      Legislative Management Committee.]
             286          (c) In fulfilling its duties under Subsection (10)(b), the board shall be guided by
             287      principles that encourage:
             288          (i) (A) the establishment of a standardized format of public information that makes the
             289      information more easily accessible by the public;
             290          (B) the removal of restrictions on the reuse of public information;
             291          (C) minimizing limitations on the disclosure of public information while appropriately
             292      safeguarding sensitive information; and
             293          (D) balancing factors in favor of excluding public information from an information
             294      website against the public interest in having the information accessible on an information
             295      website;
             296          (ii) (A) permanent, lasting, open access to public information; and
             297          (B) the publication of bulk public information;
             298          (iii) the implementation of well-designed public information systems that ensure data
             299      quality, create a public, comprehensive list or index of public information, and define a process
             300      for continuous publication of and updates to public information;
             301          (iv) the identification of public information not currently made available online and the
             302      implementation of a process, including a timeline and benchmarks, for making that public
             303      information available online; and
             304          (v) accountability on the part of those who create, maintain, manage, or store public
             305      information or post it to an information website.
             306          (d) The department shall implement the board's recommendations, including the
             307      establishment of an information website, to the extent that implementation:
             308          (i) is approved by the Legislative Management Committee;
             309          (ii) does not require further legislative appropriation; and


             310          (iii) is within the department's existing statutory authority.
             311          Section 5. Section 63A-3-404 is amended to read:
             312           63A-3-404. Rulemaking authority.
             313          (1) After consultation with the board, and in accordance with Title 63G, Chapter 3,
             314      Utah Administrative Rulemaking Act, the Division of Finance shall make rules to:
             315          (a) require participating state entities to provide public financial information for
             316      inclusion on the Utah Public Finance Website;
             317          (b) define, either uniformly for all participating state entities, or on an entity by entity
             318      basis, the term "public financial information" using the standards provided in Subsection
             319      63A-3-403 [(2)](3)(c); and
             320          (c) establish procedures for obtaining, submitting, reporting, storing, and providing
             321      public financial information on the Utah Public Finance Website, which may include a
             322      specified reporting frequency and form.
             323          (2) After consultation with the board, and in accordance with Title 63G, Chapter 3,
             324      Utah Administrative Rulemaking Act, the Division of Finance may make rules to:
             325          (a) require a participating state or local entity to list certain expenditures made by a
             326      person under a contract with the entity; and
             327          (b) if a list is required under Subsection (2)(a), require the following information to be
             328      included:
             329          (i) the name of the participating state or local entity making the expenditure;
             330          (ii) the name of the person receiving the expenditure;
             331          (iii) the date of the expenditure;
             332          (iv) the amount of the expenditure;
             333          (v) the purpose of the expenditure;
             334          (vi) the name of each party to the contract;
             335          (vii) an electronic copy of the contract; or
             336          (viii) any other criteria designated by rule.


[Bill Documents][Bills Directory]