FY 2016 Appropriation

The Utah Department of Commerce is the licensing and registration agency for Utah's professional and corporate community. Business registrations, professional licensing, consumer protection and education, oversight of public utilities and monitoring real estate and securities industries are all department responsibilities.

The department protects public interest by ensuring fair commercial and professional practices.

The mission of the Department of Commerce is "to protect the public interest by ensuring fair commercial and professional practices."

The vision of the Department of Commerce is that, "the Department of Commerce contributes to the success of Utah businesses, professionals, and consumers by creating a favorable economic environment."

Funding History
Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $32,493,100 from all sources for Commerce. This is a 3.9 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $46,000 in new approprations from the General/Education Funds.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Attorney General Dedicated Credit Adjustments$32,500$0
OngoingOne-TimeFinancing Source
$32,500$0GFR - Commerce Service
This item designates additional funding appropriated to an agency to pay higher costs for Attorney General services, due to statewide and AG-specific compensation increases.
Controlled Substance Database Amendments$46,000$0
OngoingOne-TimeFinancing Source
$46,000$0General Fund
Enactment of this legislation likely will not materially impact state revenue. Enactment of this legislation appropriates $46,000 ongoing from the General Fund in FY 2016 to the Department of Commerce for updates and maintenance to the controlled substances database.
Dental Practice Act Amendments ($2,000)$0
OngoingOne-TimeFinancing Source
($2,000)$0GFR - Commerce Service
Enactment of this bill could reduce Commerce Service Fund revenue by $600 annually. This revenue loss, combined with the Commerce Service Fund cost savings, below, could increase annual transfers to the General Fund by $1,400 ongoing beginning in FY 2016. Enactment of this bill could reduce Department of Commerce costs by $2,000 annually from the Commerce Service Fund beginning in FY 2016 from processing fewer applicants. Spending from the Commerce Service Fund impacts year-end transfers to the General Fund.
Interstate Medical Licensure Compact$574,100$18,400
OngoingOne-TimeFinancing Source
$500,000$0Dedicated Credits Revenue
$74,100$0GFR - Commerce Service
$0$18,400GFR - Commerce Service, One-time
Enacting this bill could generate $500,000 in dedicated credits revenue, $96,000 in ongoing Commerce Service Fund revenue beginning in FY 2016 and $9,000 in one-time Commerce Service Fund revenue in FY 2016 through increased licenses. After associated costs, the bill could increase year end transfers to the General Fund by $12,600 in FY 2016 and by $22,000 in FY 2017. Enacting this bill could cost Commerce $18,400 one-time from the Commerce Service Fund to develop rules and support one-time technology costs. The bill could cost the Department of Commerce $74,000 from the Commerce Service Fund each year beginning in FY 2016 for staff support related to licensure, investigation, accounting support and for ongoing database maintenance. Spending from the Commerce Service Fund impacts year end transfers to the General Fund. The $500,000 in dedicated credit revenue could be transferred to other states for licensing fees as part of the compact.
Licensing of Autism Providers$16,500$9,000
OngoingOne-TimeFinancing Source
$16,500$0GFR - Commerce Service
$0$9,000GFR - Commerce Service, One-time
Enactment of this bill could increase Commerce Service Fund revenue by $24,400 annually beginning in FY 2016 and by $6,700 one-time in FY 2016. This revenue increase combined with the Commerce Service Fund costs below, could increase annual transfers to the General Fund by $7,900 ongoing beginning in FY 2016 and reduce the General Fund transfer one-time by $2,800 in FY 2016 Enactment of this legislation could cost the Department of Commerce $16,500 ongoing from the Commerce Service Fund for staff support, current expense and board member costs. The legislation could also create one-time costs of $9,500 for rule development and registration implementation. Spending from the Commerce Service Fund impacts year-end transfers to the General Fund.
New Car Dealership Franchise Amendments$8,800$0
OngoingOne-TimeFinancing Source
$8,800$0GFR - Commerce Service
Enactment of this bill could reduce annual year-end transfers to the General Fund by $8,800. Enactment of this legislation could cost the Department of Commerce $8,800 from the Commerce Service Fund for additional administrative law judge time to meet the new deadlines. Spending from the Commerce Service Fund impacts year-end transfer tot he General Fund.
Occupational Therapists Amendments$800$1,300
OngoingOne-TimeFinancing Source
$800$0GFR - Commerce Service
$0$1,300GFR - Commerce Service, One-time
Enactment of this bill could reduce year-end transfers to the General Fund by $800 annually beginning in FY 2016 and one-time by $1,300. Enactment of this legislation could cost the Department of Commerce $800 ongoing from the Commerce Service Fund beginning in FY 2016 for verification of the field work requirements. Commerce could also experience one-time costs of $1,300 in FY 2016 for rule and policy development. Spending from the Commerce Service Fund impacts year-end transfers to the General Fund.
Podiatric Physician Amendments$2,300$0
OngoingOne-TimeFinancing Source
$2,300$0GFR - Commerce Service
Enactment of this legislation could reduce year-end transfers to the General Fund ongoing by $2,300 annually beginning in FY 2016. Enactment of this bill could cost the Department of Commerce $2,300 annually beginning in FY 2016 for potential investigations related to the expanded procedures authorized in the bill. Spending from the Commerce Service Fund impacts year-end transfers to the General Fund.
Prescription Database Revisions$17,200$16,700
OngoingOne-TimeFinancing Source
$17,200$0GFR - Commerce Service
$0$16,700GFR - Commerce Service, One-time
Enactment of this legislation could reduce year-end transfers to the General Fund by $17,200 ongoing beginning in FY 2016 and by $16,700 one-time in FY 2016. Enactment of this legislation could cost the Department of Commerce $17,200 ongoing from the Commerce Service Fund beginning in FY 2016 for staff time related to the execution of law enforcement warrants. Commerce could also experience one-time costs in FY 2016 of $16,700 from the Commerce Service Fund related to database enhancements and programming. Spending from the Commerce Service Fund impacts year-end transfers to the General Fund. Enactment of this legislation could also cost the courts $22,400 annually to process warrants.
Social Work Amendments$8,600$0
OngoingOne-TimeFinancing Source
$8,600$0GFR - Commerce Service
Enactment of this bill could generate $1,500 in citation revenue to the Commerce Service Fund annually that when combined with the $8,600 in costs identified below could reduce year end transfers to the General Fund by $7,100 ongoing beginning in FY 2016. Enactment of this legislation could cost the Department of Commerce $8,600 annually beginning in FY 2016 for investigation and administration. Spending from the Commerce Service Fund impacts year-end transfers to the General Fund.
Suicide Prevention Program Amendments$0$2,600
OngoingOne-TimeFinancing Source
$0$2,600GFR - Commerce Service, One-time
Enactment of this legislation could reduce year-end transfers to the General Fund by $2,800 one-time in FY 2016. Enactment of this legislation could cost the Department of Commerce $2,800 from the Commerce Service Fund one-time in FY 2016 for rule development and reporting requirements. Spending from the Commerce Service Fund impacts year-end transfers to the General Fund.
Transportation Network Company Amendments$20,000$0
OngoingOne-TimeFinancing Source
$20,000$0GFR - Commerce Service
Enactment of this legislation could increase revenue to the Commerce Service Fund by $20,000 annually. Enactment of this legislation could cost the Department of Commerce $20,000 annually to register, audit and investigate Transportation Network Companies.
Uniform Commercial Code Filing Amendments$0$3,000
OngoingOne-TimeFinancing Source
$0$3,000GFR - Commerce Service, One-time
Enactment of this bill could reduce year-end transfers to the General Fund by $3,000 one-time in FY 2016. Enactment of this legislation could cost Commerce $3,000 one-time from the Commerce Service Fund for rule making, system modification, and data mining. Spending from the Commerce Service Fund impacts year-end transfers to the General Fund.
Statute

The overall governance of the Department of Commerce can be found in UCA 13-1-1 which states: "the Legislature finds that many businesses and occupations in the state have a pronounced physical and economic impact on the health, safety, and welfare of the citizens of the state. The Legislature further finds that while the overall impact is generally beneficial to the public, the potential for harm and injury frequently warrants intervention by state government."

"The Legislature declares that it is appropriate and necessary for state government to protect its citizens from harmful and injurious acts by persons offering or providing essential or necessary goods and services to the general public. The Legislature further declares that business regulation should not be unfairly discriminatory. However, the general public interest must be recognized and regarded as the primary purpose of all regulation by state government."

The following are the specific sections of the Utah Code Annotated that give direction to the Department of Commerce and its operations.

  • Commerce and Trade sections are found in UCA 13, chapters 1 through 38,
  • Collection Agencies are found in UCA-12,
  • Corporations are in UCA 16, chapters 4 though 15,
  • Partnerships are in UCA 48, chapters 1 through 2a,
  • Bail Bond Recovery are in UCA 53 (Public Safety), chapter 11,
  • Public Utilities is in UCA 54 chapters 2 though 16,
  • Real Estate Regulations are in UCA 57, chapters 1 through 23,
  • Occupations and Professions are in UCA 58, chapters 1 though 76,
  • Real Estate and Securities divisions are in UCA 61, chapters 1 through 6,
  • Trademarks & Trade Names are in UCA 70, chapter 3a, and
  • Uniform Commercial Code is in UCA 70A, chapters 1 through 11.

Intent Language

HB0003: Item 67

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Office of Consumer Services in Item 22 of Chapter 10, Laws of Utah 2014, lapse to the Offices' Professional and Technical Services Fund at the close of Fiscal Year 2015.

HB0003: Item 67

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Department of Commerce, Division of Public Utilities in Item 22 of Chapter 10, Laws of Utah 2014, lapse to the Divisions' Professional and Technical Services Fund at the close of Fiscal Year 2015.

HB0003: Item 68

To Department of Commerce - Building Inspector Training Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Building Codes Education Funds received by the Division of Occupational and Professional Licensing under the authority of Section 15A-1-209-5 of the Utah Code Item 23 of Chapter 10, Laws of Utah 2014, shall not lapse at the close of Fiscal Year 2015.

HB0003: Item 69

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Division of Public Utilities Technical Services Fund in Item 24 of Chapter 10, Laws of Utah 2014, shall not lapse at the close of Fiscal Year 2015.

HB0003: Item 70

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Professional and Technical Services Fund of the Office of Consumer Services in Item 25 of Chapter 10, Laws of Utah 2014, shall not lapse at the close of Fiscal Year 2015.

The Department of Commerce is funded primarily through the collection and assessment of fees on duties that they are statutorily charged with upholding. Additionally, the Department consists of three main line items, including: Commerce General Regulation, Public Utilities, and Office of Consumer Services.

Special Funds

Commerce administers the following special funding sources:

The Commerce Service Fund consists of fees collected by each division and by the department. Funding is used to provide overall staff support to the Department. Any amount over the Legislative appropriation is transferred to the General Fund at the end of the fiscal year.

The Public Utilities Regulation Fee is assessed on public utilities to cover the costs of regulation. Funding is used according to the criteria established in UCA 54-5-1.5

The Factory Built Housing Fee Restricted Account is assessed on factory built home dealers for each home sold. Fund are used to pay for education and enforcement of the Building Inspector and Factory Built Housing Licensing Act.

The Geologist Education and Enforcement Account is funded through a surcharge on initial, renewal, and reinstatement licensure fees provided under the Professional Geologist Licensing Act. Funds are used for education and training of licensees.

The Nurse Education and Enforcement Account is funded through administrative penalties imposed under UCA 58-31b-503. Funding can be used for education and training of licensees, enforcement of the Nurse Practice Act, investigating unprofessional or unlawful conduct, legal representation, reviewing compliance, and establishment of new training programs.

The Pawnbroker and Secondhand Merchandise Operations Restricted Account is created UCA 13-32a-113. The account is funded from the fees and administrative fines imposed and collected under UCA 13-32a-106, 13-32a-107, 13-32a-110, and 13-32a-111. Funds are used to provide training.

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COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.