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First Substitute S.B. 147

Senator David L. Gladwell proposes the following substitute bill:






Sponsor: Michael G. Waddoups

             7      This act modifies the Budgetary Procedures Act by establishing a process to restrict the
             8      funding on any agency whose rules, policies, or actions violate statute.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      ENACTS:
             11          63-38-19, Utah Code Annotated 1953
             12      Be it enacted by the Legislature of the state of Utah:
             13          Section 1. Section 63-38-19 is enacted to read:
             14          63-38-19. Penalties for agency rules, policies, or actions that violate statute.
             15          (1) As used in this section:
             16          (a) " Administrative budget" means that portion of an agency's appropriation allocated to
             17      administration of the agency and includes monies appropriated for the salaries and benefits of the
             18      agency director and his administrative staff.
             19          (b) (i) "Agency" means each department, commission, board, council, agency, institution,
             20      officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau,
             21      panel, or other administrative unit of the state.
             22          (ii) "Agency" includes the board of regents, the institutional councils of each higher
             23      education institution, each higher education institution, and each public education entity.
             24          (2) If an agency approves a rule or policy, or takes any action, that is contrary to state
             25      statute, any legislator may inform the agency of that violation by notifying the agency's director,

             26      in writing, of the violation.
             27          (3) (a) If, after 30 days, a legislator determines that the agency has failed to remedy or
             28      begin remedying the violation, the legislator may file a request to reduce appropriation with the
             29      chairs of the appropriations subcommittee having jurisdiction over the agency's budget.
             30          (b) The request to reduce appropriation shall contain:
             31          (i) a copy of the controlling statute;
             32          (ii) a copy of the rule or policy, or a brief description of the action, that the legislator
             33      alleges violates the statute;
             34          (iii) a copy of the letter sent to the agency under Subsection (2);
             35          (iv) other documentation supporting the legislator's allegations; and
             36          (v) a request that the committee reduce the administrative budget of the agency by up to
             37      50%, specifying the proposed dollar amount.
             38          (4) If, within 14 days after receipt of the request, both appropriations subcommittee chairs
             39      agree to consider the request, the chairs shall schedule a hearing on the request no later than 60
             40      days after the request is received.
             41          (5) At the hearing, the subcommittee shall:
             42          (a) review the allegations submitted by the Legislature and any response from the agency;
             43          (b) hear testimony from the legislator, the agency director, and other persons with relevant
             44      information to contribute to the subcommittee's deliberations;
             45          (c) issue subpoenas, if necessary, according to the procedures and requirements of Title
             46      36, Chapter 14, Legislative Subpoena Powers; and
             47          (d) if the subcommittee determines that there is substantial evidence that the agency's rule,
             48      policy, or action violated statute, the committee shall recommend a decrease in the agency's
             49      administrative budget of up to 50% to the Executive Appropriations Committee.
             50          (6) At a subsequent annual general or special session, the Executive Appropriations
             51      Committee shall include the subcommittee's recommended reduction in a supplemental
             52      appropriations act.

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