Second Substitute H.B. 228

Representative Rebecca D. Lockhart proposes to substitute the following bill:

1 HEALTH INSURANCE PROVISIONS - INTERIM REVIEW
2 2000 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Rebecca D. Lockhart
5 AN ACT RELATING TO THE LEGISLATURE; REQUIRING THE BUSINESS, LABOR, AND
6 ECONOMIC DEVELOPMENT INTERIM COMMITTEE AND THE HEALTH AND HUMAN
7 SERVICES INTERIM COMMITTEE TO IDENTIFY AND REVIEW CERTAIN HEALTH
8 INSURANCE PROVISIONS TO DETERMINE WHETHER THE PROVISIONS SHOULD BE
9 CONTINUED, MODIFIED, OR REPEALED S ; AND PERMITTING THE ASSISTANCE OF THE
9a LEGISLATIVE AUDITOR GENERAL s .
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 36-12-5, as last amended by Chapter 226, Laws of Utah 1998
S 36-12-15, as last amended by Chapter 228, Laws of Utah 1992 s
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 36-12-5 is amended to read:
15 36-12-5. Duties of interim committees.
16 (1) [It is the duty of each] Each interim committee shall:
17 (a) [to] receive study assignments by resolution from the appropriate house of the
18 Legislature;
19 (b) [to] receive study assignments from [its corresponding Senate or House] the Legislative
20 Management Committee, created under Section 36-12-6 ;
21 (c) [to] place matters on its study agenda upon notification to [its Senate or House] the
22 Legislative Management Committee[. If a study request has], which request, if not [been]
23 disapproved by the [appropriate] Legislative Management Committee within 30 days of receipt
24 of the request, the interim committee may proceed with the requested study;
25 (d) [to] request research reports from the professional legislative staff pertaining to the

26 committee's agenda of study;
27 (e) [to] investigate and study possibilities for improvement in government services within
28 its subject area;
29 (f) [to] accept reports from the professional legislative staff and make recommendations
30 for legislative action with respect to such reports; and
31 (g) [to] prepare and recommend to the Legislature a legislative program in response to the
32 committee's study agenda.
33 (2) (a) In addition to the duties established pursuant to Subsection (1), the Business, Labor,
34 and Economic Development Interim Committee and the Health and Human Services Interim
35 Committee shall:
36 (i) identify provisions in Title 31A that impose a mandatory obligation on health insurers
37 with respect to coverage, benefits, or providers that have been in effect for five or more years and
38 have not been reviewed during the previous 10 years; and
39 (ii) subject to the direction of the Legislative Management Committee which may divide
40 the provisions between the committees, review the provisions to determine whether the provisions
41 should be continued, modified, or repealed, provided that:
42 (A) any provision in effect for five or more years as of July 1, 2000, shall be reviewed
43 before November 30, 2005; and
44 (B) any provision enacted after July 1, 2000, shall be reviewed on the fifth year after
45 enactment.
46 (b) The review shall include:
47 (i) the estimated fiscal impact of the provision on state and private health insurance S AND s ;
48 (ii) the purpose and effectiveness of the provision S [ ; and ] .
49 [ (iii) the estimated amount, if any, of the base insurance premium that is attributable to the
50 provision.
51 (c) The committees S [may] SHALL s request the assistance of the Office of the Legislative
51a Fiscal
52 Analyst to determine the estimated fiscal impact of a provision. ] (c) THE COMMITTEE MAY REQUEST
52a THROUGH, AND WITH THE APPROVAL OF, THE AUDIT SUBCOMMITTEE THAT THE LEGISLATIVE
52b AUDITOR GENERAL PERFORM, OR OTHERWISE ASSIST IN THE PERFORMANCE OF, THE REVIEW
52c DESCRIBED IN SUBSECTION (2)(b). s
53 [(2)] (3) Reports and recommendations of the interim committees shall be completed and
54 made public prior to any legislative session at which the reports and recommendations are
55 submitted. A copy of the reports and recommendations shall be mailed to each member or
56 member-elect of the Legislature, to each elective state officer, and to the state library.
56a S Section 2. Section 36-12-15 is amended to read:
56b 36-12-15. Office of Legislative Auditor General established -- Qualifications -- Powers, s

56c S functions, and duties.
56d (1) There is created an Office of Legislative Auditor General as a permanent staff office for the
56e Legislature.
56f (2) The legislative auditor general shall be a licensed certified public accountant or certified
56g internal auditor with at least five years' experience in the auditing or public accounting profession, or
56h the equivalent, prior to appointment.
56i (3) The legislative auditor general shall appoint and develop a professional staff within budget
56j limitations.
56k (4) (a) The Office of the Legislative Auditor General shall exercise the constitutional authority
56l provided in Article VI, Sec. 33, Utah Constitution.
56m (b) Under the direction of the legislative auditor general, the office shall:
56n (i) conduct comprehensive and special purpose audits, examinations, and reviews of any
56o entity that receives public funds; and
56p (ii) prepare and submit a written report on each audit, examination, or review to the Legislative
56q Management Committee, the audit subcommittee, and to all members of the Legislature within 75
56r days after the audit or examination is completed.
56s (5) The audit, examination, or review of any entity that receives public funds may include a
56t determination of any or all of the following:
56u (a) the honesty and integrity of all its fiscal affairs;
56v (b) the accuracy and reliability of its financial statements and reports;
56w (c) whether or not its financial controls are adequate and effective to properly record and
56x safeguard its acquisition, custody, use, and accounting of public funds;
56y (d) whether or not its administrators have faithfully adhered to legislative intent;
56z (e) whether or not its operations have been conducted in an efficient, effective, and cost
56aa efficient manner;
56ab (f) whether or not its programs have been effective in accomplishing intended objectives; and
56ac (g) whether or not its management control and information systems are adequate and
56ad effective.
56ae (6) The Office of Legislative Auditor General may:
56af (a) obtain access to all records, documents, and reports of any entity that receives public
56ag funds necessary to the scope of its duties, according to the procedures contained in Title 36, Chapter
56ah 14;
56ai (b) establish policies, procedures, methods, and standards of audit work for the office and
56aj staff;
56ak (c) prepare and submit each audit report without interference from any source relative to the
56al content of the report, the conclusions reached in the report, or the manner of disclosing the results of
56am his findings; and
56an (d) prepare and submit the annual budget request for the office.
56ao (7) To preserve the professional integrity and independence of the office:
56ap (a) no legislator or public official may urge the appointment of any person to the office; and
56aq (b) the legislative auditor general may not be appointed to serve on any board, authority,
56ar commission, or other agency of the state during his term as legislative auditor general.
56as (8) The following records in the custody or control of the legislative auditor general shall be
56at protected records under Title 63, Chapter 2, Government Records Access and Management Act:
56au (a) Records that would disclose information relating to allegations of personal s

56av S misconduct, gross mismanagement, or illegal activity of a past or present governmental employee if
56aw the information or allegation cannot be corroborated by the legislative auditor general through other
56ax documents or evidence, and the records relating to the allegation are not relied upon by the legislative
56ay auditor general in preparing a final audit report.
56az (b) Records and audit workpapers to the extent they would disclose the identity of a person
56ba who during the course of a legislative audit, communicated the existence of any waste of public
56bb funds, property, or manpower, or a violation or suspected violation of a law, rule, or regulation
56bc adopted under the laws of this state, a political subdivision of the state, or any recognized entity of
56bd the United States, if the information was disclosed on the condition that the identity of the person be
56be protected.
56bf (c) Prior to the time that an audit is completed and the final audit report is released, records or
56bg drafts circulated to a person who is not an employee or head of a governmental entity for their
56bh response or information.
56bi (d) Records that would disclose an outline or part of any audit survey plans or audit program.
56bj (e) Requests for audits, if disclosure would risk circumvention of an audit.
56bk (f) The provisions of Subsections (a), (b), and (c) do not prohibit the disclosure of records or
56bl information that relate to a violation of the law by a governmental entity or employee to a government
56bm prosecutor or peace officer.
56bn (g) The provisions of this section do not limit the authority otherwise given to the legislative
56bo auditor general to classify a document as public, private, controlled, or protected under Title 63,
56bp Chapter 2, Government Records Access and Management Act.
56bq (9) The legislative auditor general shall:
56br (a) be available to the Legislature and to its committees for consultation on matters relevant
56bs to areas of his professional competence AND SHALL PERFORM, OR OTHERWISE ASSIST IN THE
56bt PERFORMANCE OF, A HEALTH INSURANCE PROVISION REVIEW AS PROVIDED IN SECTION 36-12-5;
56bu (b) conduct special audits as requested by the Legislative Management Committee;
56bv (c) report immediately in writing to the Legislative Management Committee through its audit
56bw subcommittee any apparent violation of penal statutes disclosed by the audit of a state agency and
56bx furnish to the Legislative Management Committee all information relative to the apparent violation;
56by (d) report immediately in writing to the Legislative Management Committee through its audit
56bz subcommittee any apparent instances of malfeasance or nonfeasance by a state officer or employee
56ca disclosed by the audit of a state agency; and
56cb (e) make any recommendations to the Legislative Management Committee through its audit
56cc subcommittee with respect to the alteration or improvement of the accounting system used by any
56cd entity that receives public funds.
56ce (10) (a) Prior to each annual general session, the legislative auditor general shall prepare a
56cf summary of the audits conducted and of actions taken based upon them during the preceding year.
56cg (b) This report shall also set forth any items and recommendations that are important for
56ch consideration in the forthcoming session, together with a brief statement or rationale for each item or
56ci recommendation.
56cj (c) The legislative auditor general shall deliver the report to the Legislature and to the
56ck appropriate committees of the Legislature. s

56cl S (11) (a) No person or entity may:
56cm (i) interfere with a legislative audit, examination, or review of any entity conducted by the
56cn office; or
56co (ii) interfere with the office relative to the content of the report, the conclusions reached in the
56cp report, or the manner of disclosing the results and findings of the office.
56cq (b) Any person or entity that violates the provisions of this Subsection (11) is guilty of a class
56cr B misdemeanor. s