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S.B. 38






Sponsor: Peter C. Knudson

             6      This act changes references to interim committees to reflect the current committee structure.
             7      This act also modifies the Utah Code to make technical corrections to interim committee
             8      names.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      AMENDS:
             11          9-2-1603, as last amended by Chapter 13, Laws of Utah 1998
             12          9-4-708, as last amended by Chapter 181, Laws of Utah 2001
             13          9-4-1204, as last amended by Chapter 117, Laws of Utah 1998
             14          9-7-217, as enacted by Chapter 172, Laws of Utah 2001
             15          31A-2-217, as enacted by Chapter 116, Laws of Utah 2001
             16          36-12-5, as last amended by Chapters 104 and 225, Laws of Utah 2000
             17          70C-8-102, as last amended by Chapter 208, Laws of Utah 1999
             18      Be it enacted by the Legislature of the state of Utah:
             19          Section 1. Section 9-2-1603 is amended to read:
             20           9-2-1603. Powers of the department.
             21          The department shall:
             22          (1) facilitate recycling development zones through state support of county incentives which
             23      encourage development of manufacturing enterprises that use recycling materials currently
             24      collected;
             25          (2) evaluate an application from a county or municipality executive authority to be
             26      designated as a recycling market development zone and determine if the county or municipality
             27      qualifies for that designation;

             28          (3) provide technical assistance to municipalities and counties in developing applications
             29      for designation as a recycling market development zone;
             30          (4) assist counties and municipalities designated as recycling market development zones
             31      in obtaining assistance from the federal government and agencies of the state;
             32          (5) assist any qualified business in obtaining the benefits of any incentive or inducement
             33      program authorized by this part;
             34          (6) monitor the implementation and operation of this part and conduct a continuing
             35      evaluation of the progress made in the recycling market development zone; and
             36          (7) submit an annual written report evaluating the effectiveness of the program and
             37      providing recommendations for legislation to the [Business, Labor,] Workforce Services and
             38      Economic Development Interim Committee and Natural Resources, Agriculture, and Environment
             39      Interim Committee not later than November 1 of each year.
             40          Section 2. Section 9-4-708 is amended to read:
             41           9-4-708. Annual accounting.
             42          (1) The executive director shall monitor the activities of recipients of grants and loans
             43      issued under this part on a yearly basis to ensure compliance with the terms and conditions
             44      imposed on the recipient by the director with the approval of the board or by this part.
             45          (2) The entities receiving grants or loans shall provide the executive director with an
             46      annual accounting of how the moneys they received from the fund have been spent.
             47          (3) The executive director shall make an annual report to the board accounting for the
             48      expenditures authorized by the board.
             49          (4) The board shall submit an annual written report accounting for expenditures authorized
             50      by the board and evaluating the effectiveness of the program to the [Business, Labor,] Workforce
             51      Services and Economic Development Interim Committee before December 1 of each year.
             52          Section 3. Section 9-4-1204 is amended to read:
             53           9-4-1204. Technical assistance to political subdivisions for housing plan.
             54          (1) Within appropriations from the Legislature, the division shall establish a program to
             55      assist municipalities to meet the requirements of Section 10-9-307 and counties to meet the
             56      requirements of Section 17-27-307 . Assistance under this section may include:
             57          (a) financial assistance for the cost of developing a plan for low and moderate income
             58      housing;

             59          (b) information on how to meet present and prospective needs for low and moderate
             60      income housing; and
             61          (c) technical advice and consultation on how to facilitate the creation of low and moderate
             62      income housing.
             63          (2) The division shall annually report to the [Legislature's Business, Labor,] Workforce
             64      Services and Community and Economic Development Interim Committee, and to the Health and
             65      Human Services Interim [Committees] Committee regarding the scope, amount, and type of
             66      assistance provided to municipalities and counties under this section, including the number of low
             67      and moderate income housing units constructed or rehabilitated within the state.
             68          Section 4. Section 9-7-217 is amended to read:
             69           9-7-217. Reporting.
             70          The division shall make a report to the [Business, Labor,] Workforce Services and
             71      Community and Economic Development Interim Committee [of the Legislature] at least once
             72      every three years regarding the compliance of library boards with Section 9-7-215 .
             73          Section 5. Section 31A-2-217 is amended to read:
             74           31A-2-217. Coordination with other states.
             75          (1) (a) Subject to Subsection (1)(b), the commissioner, by rule, may adopt one or more
             76      agreements with another governmental regulatory agency, within and outside of this state, or with
             77      the National Association of Insurance Commissioners to address:
             78          (i) licensing of insurance companies;
             79          (ii) licensing of agents;
             80          (iii) regulation of premium rates and policy forms; and
             81          (iv) regulation of insurer insolvency and insurance receiverships.
             82          (b) An agreement described in Subsection (1)(a), may authorize the commissioner to
             83      modify a requirement of this title if the commissioner determines that the requirements under the
             84      agreement provide protections similar to or greater than the requirements under this title.
             85          (2) (a) The commissioner may negotiate an interstate compact that addresses issuing
             86      certificates of authority, if the commissioner determines that:
             87          (i) each state participating in the compact has requirements for issuing certificates of
             88      authority that provide protections similar to or greater than the requirements of this title; or
             89          (ii) the interstate compact contains requirements for issuing certificates of authority that

             90      provide protections similar to or greater than the requirements of this title.
             91          (b) If an interstate compact described in Subsection (2)(a) is adopted by the Legislature,
             92      the commissioner may issue certificates of authority to insurers in accordance with the terms of
             93      the interstate compact.
             94          (3) If any provision of this title conflicts with a provision of the annual statement
             95      instructions or the National Association of Insurance Commissioners Accounting Practices and
             96      Procedures Manual, the commissioner may, by rule, resolve the conflict in favor of the annual
             97      statement instructions or the National Association of Insurance Commissioners Accounting
             98      Practices and Procedures Manual.
             99          (4) The commissioner may, by rule, accept the information prescribed by the National
             100      Association of Insurance Commissioners instead of the documents required to be filed with an
             101      application for a certificate of authority under:
             102          (a) Section 31A-4-103 , 31A-5-204 , 31A-8-205 , or 31A-14-201 ; or
             103          (b) rules made by the commissioner.
             104          (5) Before November 30, 2001, the commissioner shall report to the Business[,] and
             105      Labor[, and Economic Development] Interim Committee regarding the status of:
             106          (a) any agreements entered into under Subsection (1);
             107          (b) any interstate compact entered into under Subsection (2); and
             108          (c) any rule made under Subsections (3) and (4).
             109          (6) This section shall be repealed in accordance with Section 63-55-231 .
             110          Section 6. Section 36-12-5 is amended to read:
             111           36-12-5. Duties of interim committees.
             112          (1) Except as otherwise provided by law, each interim committee shall:
             113          (a) receive study assignments by resolution from the Legislature;
             114          (b) receive study assignments from the Legislative Management Committee, created under
             115      Section 36-12-6 ;
             116          (c) place matters on its study agenda after requesting approval of the study from the
             117      Legislative Management Committee, which request, if not disapproved by the Legislative
             118      Management Committee within 30 days of receipt of the request, the interim committee shall
             119      consider it approved and may proceed with the requested study;
             120          (d) request research reports from the professional legislative staff pertaining to the

             121      committee's agenda of study;
             122          (e) investigate and study possibilities for improvement in government services within its
             123      subject area;
             124          (f) accept reports from the professional legislative staff and make recommendations for
             125      legislative action with respect to such reports; and
             126          (g) prepare and recommend to the Legislature a legislative program in response to the
             127      committee's study agenda.
             128          (2) (a) In addition to the duties established pursuant to Subsection (1), the Business[,] and
             129      Labor[, and Economic Development] Interim Committee and the Health and Human Services
             130      Interim Committee shall:
             131          (i) identify provisions in Title 31A, Insurance Code, that impose a mandatory obligation
             132      on health insurers with respect to coverage, benefits, or providers that have been in effect for five
             133      or more years and have not been reviewed during the previous ten years; and
             134          (ii) subject to the direction of the Legislative Management Committee which may divide
             135      the provisions between the committees, review the provisions to determine whether the provisions
             136      should be continued, modified, or repealed, provided that:
             137          (A) any provision in effect for five or more years as of July 1, 2000, shall be reviewed
             138      before November 30, 2005; and
             139          (B) any provision enacted after July 1, 2000, shall be reviewed on the fifth year after
             140      enactment.
             141          (b) The review shall include:
             142          (i) the estimated fiscal impact of the provision on state and private health insurance; and
             143          (ii) the purpose and effectiveness of the provision.
             144          (c) The committee may request through, and with the approval of, the audit subcommittee
             145      that the legislative auditor general perform, or otherwise assist in the performance of, the review
             146      described in Subsection (2)(b).
             147          (3) Except as otherwise provided by law, reports and recommendations of the interim
             148      committees shall be completed and made public prior to any legislative session at which the
             149      reports and recommendations are submitted. A copy of the reports and recommendations shall be
             150      mailed to each member or member-elect of the Legislature, to each elective state officer, and to
             151      the state library.

             152          Section 7. Section 70C-8-102 is amended to read:
             153           70C-8-102. Powers of department -- Conformity with federal law -- Reliance on rules
             154      -- Consumer education.
             155          (1) In addition to other powers granted by this title, the department, within the limitations
             156      provided by law, may:
             157          (a) receive and act on complaints, take action designed to obtain voluntary compliance
             158      with this title, or commence administrative or judicial proceedings on its own initiative;
             159          (b) counsel persons and groups on their rights and duties under this title;
             160          (c) establish programs for the education of consumers with respect to credit practices and
             161      problems;
             162          (d) make studies appropriate to effectuate the purposes and policies of this title and make
             163      the results available to the public;
             164          (e) adopt, amend, and repeal rules to supplement, interpret, or carry out the provisions of
             165      this title;
             166          (f) maintain offices within this state; and
             167          (g) employ any necessary hearing examiners, clerks, and other employees and agents.
             168          (2) The department may adopt rules that supersede any provisions of this title that are or
             169      come into conflict with the Federal Credit Protection Act or its implementing Regulation Z if the
             170      department:
             171          (a) finds such a conflict to exist; and
             172          (b) declares that the purpose of superseding this title is to resolve that conflict.
             173          (3) Except for refund of an excess charge, no liability is imposed under this title for an act
             174      done or omitted in conformity with the rule of the department, notwithstanding that after the act
             175      or omission the rule may be amended or repealed or be determined by judicial or other competent
             176      authority to be invalid for any reason.
             177          (4) A rule or any part of a rule adopted by the department under this title may not be
             178      determined by any judicial or other authority to be invalid in whole or in part unless such judicial
             179      or other authority expressly finds that the rule or part of the rule is arbitrary, capricious, and
             180      constitutes an abuse of discretion, or exceeds the authority granted to the department by this title,
             181      or is otherwise unlawful.
             182          (5) The department shall coordinate with representatives of education, government, and

             183      the financial services industry and assist in the preparation of an initiative to develop, implement,
             184      and monitor a financial services education curriculum that is:
             185          (a) to be made available to the public; and
             186          (b) appropriate for use in the public schools.
             187          (6) Beginning in 1999, the department shall report biennially by no later than November
             188      30 to the Business[,] and Labor[, and Economic Development] Interim Committee regarding:
             189          (a) the need for consumer education programs administered by the department to promote
             190      prudent and beneficial use of credit by consumers; and
             191          (b) department efforts to promote the education of consumers with respect to credit
             192      practices and problems, including:
             193          (i) its efforts to coordinate, encourage, and assist public and private persons in developing
             194      and operating voluntary educational and debt counseling programs; and
             195          (ii) its activities under Subsection (5).

Legislative Review Note
    as of 11-14-01 8:34 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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