H.B. 145 Enrolled

DEPARTMENT OF ADMINISTRATIVE
SERVICES AMENDMENTS
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: Loraine T. Pace
This act modifies provisions relating to the Department of Administrative Services. This
act modifies provisions relating to the Division of Fleet Operations. This act allows
vehicles to be acquired with funding from sources other than state appropriations or
through federal surplus. This act changes the membership of the Motor Pool Review
Committee. This act requires agencies to report the results of investigations of vehicle
misuse to the Divisions of Fleet Operations and Risk Management. This act allows the
director of the Division of Fleet Operations to delegate functions to other state agencies
upon approval from the executive director of the Department of Administrative Services.
This act eliminates the Utah Sports Authority from the Department of Administrative
Services. This act modifies the names of the divisions within the Department of
Administrative Services. This act makes technical changes.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
63-38-3.5, as last amended by Chapter 175, Laws of Utah 2001
63A-1-109, as last amended by Chapter 334, Laws of Utah 1996
63A-9-301, as last amended by Chapters 85 and 252, Laws of Utah 1997
63A-9-302, as last amended by Chapter 85, Laws of Utah 1997
63A-9-401, as last amended by Chapter 85, Laws of Utah 1997
63A-9-501, as enacted by Chapter 334, Laws of Utah 1996
REPEALS:
63A-2-201, as renumbered and amended by Chapters 118 and 212, Laws of Utah 1993
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63-38-3.5 is amended to read:
63-38-3.5. Internal service funds -- Governance and review.

(1) For purposes of this section:
(a) "Agency" means a department, division, office, bureau, or other unit of state
government, and includes any subdivision of an agency.
(b) "Do not replace vehicles " means a vehicle accounted for in the Division of Fleet
Operations for which charges to an agency for its use do not include amounts to cover
depreciation or to accumulate assets to replace the vehicle at the end of its useful life.
[(b)] (c) "Internal service fund agency" means an agency that provides goods or services
to other agencies of state government or to other governmental units on a capital maintenance
and cost reimbursement basis, and which recovers costs through interagency billings.
[(c)] (d) "Revolving loan fund" means each of the revolving loan funds defined in
Section 63A-3-205 .
(2) An internal service fund agency is not subject to this section with respect to its
administration of a revolving loan fund.
(3) An internal service fund agency may not bill another agency for services that it
provides, unless the Legislature has:
(a) reviewed and approved the internal service fund agency's budget request;
(b) reviewed and approved the internal service fund agency's rates, fees, and other
amounts that it charges those who use its services and included those rates, fees, and amounts in
an appropriation act;
(c) approved the number of full-time, permanent positions of the internal service fund
agency as part of the annual appropriation process; and
(d) appropriated to the internal service fund agency the internal service fund's estimated
revenue based upon the rates and fee structure that are the basis for the estimate.
(4) (a) Except as provided in Subsection (4)(b), an internal service fund agency may not
charge rates, fees, and other amounts that exceed the rates, fees, and amounts established by the
Legislature in the appropriations act.
(b) (i) An internal service fund agency that begins a new service or introduces a new
product between annual general sessions of the Legislature may establish and charge an interim

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rate or amount for that service or product.
(ii) The internal service fund agency shall submit that interim rate or amount to the
Legislature for approval at the next annual general session.
(5) The internal service fund agency budget request shall separately identify the capital
needs and the related capital budget.
(6) In the fiscal year that the accounting change referred to in Subsection 51-5-6 (2) is
implemented by the Division of Finance, the Division of Finance shall transfer equity created by
that accounting change to any internal service fund agency up to the amount needed to eliminate
any long-term debt and deficit working capital in the fund.
(7) No new internal service fund agency may be established unless reviewed and
approved by the Legislature.
(8) (a) [An] Except as provided in Subsection (8)(f), an internal service fund agency may
not acquire capital assets unless legislative approval for acquisition of the assets has been
included in an appropriations act for the internal service fund agency.
(b) An internal service fund agency may not acquire capital assets after the transfer
mandated by Subsection [(4)] (6) has occurred unless the internal service fund agency has
adequate working capital.
(c) The internal service fund agency shall provide working capital from the following
sources in the following order:
(i) first, from operating revenues to the extent allowed by state rules and federal
regulations;
(ii) second, from long-term debt, subject to the restrictions of this section; and
(iii) last, from an appropriation.
(d) (i) To eliminate negative working capital, an internal service fund agency may incur
long-term debt from the General Fund or Special Revenue Funds to acquire capital assets.
(ii) The internal service fund agency shall repay all long-term debt borrowed from the
General Fund or Special Revenue Funds by making regular payments over the useful life of the
asset according to the asset's depreciation schedule.

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(e) (i) The Division of Finance may not allow an internal service fund agency's
borrowing to exceed 90% of the net book value of the agency's capital assets as of the end of the
fiscal year.
(ii) If an internal service fund agency wishes to purchase authorized assets or enter into
equipment leases that would increase its borrowing beyond 90% of the net book value of the
agency's capital assets, the agency may purchase those assets only with monies appropriated from
another fund, such as the General Fund or a special revenue fund.
(f) (i) Except as provided in Subsection (8)(f)(ii), capital assets acquired through agency
appropriation may not be transferred to any internal service fund agency without legislative
approval.
(ii) Vehicles acquired by agencies[,] from appropriated funds or monies appropriated to
agencies to be used for vehicle purchases[,] may be transferred to the Division of Fleet
Operations and, when transferred, become part of the Fleet Operations Internal Service Fund.
(iii) Vehicles acquired with funding from sources other than state appropriations or
acquired through the federal surplus property donation program may be transferred to the
Division of Fleet Operations and, when transferred, become part of the Fleet Operations Internal
Service Fund.
(iv) Unless otherwise approved by the Legislature, vehicles acquired under Subsection
(8)(f)(iii) shall be accounted for as "do not replace" vehicles.
(9) The Division of Finance shall adopt policies and procedures related to the accounting
for assets, liabilities, equity, revenues, expenditures, and transfers of internal service funds
agencies.
Section 2. Section 63A-1-109 is amended to read:
63A-1-109. Divisions of department -- Administration.
(1) The department shall be composed of the following divisions:
(a) administrative rules;
(b) archives and records;
(c) facilities construction and management;

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(d) finance;
(e) fleet operations;
(f) [general] information technology services;
(g) [information technology services] office of state debt collection;
(h) state purchasing and general services; and
(i) risk management.
(2) Each division shall be administered and managed by a division director.
[(3) The Utah Sports Authority is also part of the department.]
Section 3. Section 63A-9-301 is amended to read:
63A-9-301. Motor Vehicle Review Committee -- Composition.
(1) There is created a Motor Vehicle Review Committee to advise the division.
(2) The committee shall be composed of [seven] nine members as follows:
(a) the executive director of the Department of Administrative Services or [his] the
director's designee;
(b) a member from a state agency other than higher education, the Department of
Transportation, the Department of Public Safety, or the Department of Natural Resources, who
uses the division's services;
(c) the director of the Division of Purchasing and General Services or [his] the director's
designee; and
(d) one member [designated annually by the executive director of the Department of
Administrative Services] from:
(i) higher education, designated annually by the executive director of the Department of
Administrative Services;
(ii) the Department of Transportation, designated annually by the executive director of
the Department of Administrative Services;
(iii) the Department of Public Safety, [or] designated annually by the executive director
of the Department of Administrative Services; and
(iv) the Department of Natural Resources [so that each has a representative on the

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committee one year out of every four], designated annually by the executive director of the
Department of Administrative Services; and
(e) [three] two public members [from the automotive industry] with [expertise]
experience in fleet operations and maintenance appointed by the governor.
(3) (a) Except as required by Subsection (3)(b), the governor shall appoint each public
member to a four-year term.
(b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the time
of appointment, adjust the length of terms to ensure that the terms of public members are
staggered so that [approximately one half] one of the public members [are] is appointed every
two years.
(c) When a vacancy occurs in the membership for any reason, the replacement shall be
appointed for the unexpired term.
(4) (a) (i) Members who are not government employees shall receive no compensation or
benefits for their services, but may receive per diem and expenses incurred in the performance of
the member's official duties at the rates established by the Division of Finance under Sections
63A-3-106 and 63A-3-107 .
(ii) Members may decline to receive per diem and expenses for their service.
(b) (i) State government members who do not receive salary, per diem, or expenses from
their agency for their service may receive per diem and expenses incurred in the performance of
their official duties from the committee at the rates established by the Division of Finance under
Sections 63A-3-106 and 63A-3-107 .
(ii) State government members may decline to receive per diem and expenses for their
service.
(c) (i) Higher education members who do not receive salary, per diem, or expenses from
the entity that they represent for their service may receive per diem and expenses incurred in the
performance of their official duties from the committee at the rates established by the Division of
Finance under Sections 63A-3-106 and 63A-3-107 .
(ii) Higher education members may decline to receive per diem and expenses for their

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service.
(5) Five members of the committee are a quorum.
(6) The executive director of the Department of Administrative Services is chair of the
committee.
Section 4. Section 63A-9-302 is amended to read:
63A-9-302. Committee duties.
The committee shall:
(1) advise the director about carrying out the director's responsibilities under this
chapter;
(2) review each administrative rule proposed by the division and make recommendations
to the director about those rules; and
[(3) review the process mapping report and make recommendations to the director and
legislature about how to implement its recommendations; and]
[(4)] (3) in conjunction with the director, make recommendations to the legislature about
any amendments to statute needed to allow the division to fulfill its responsibilities under this
chapter.
Section 5. Section 63A-9-401 is amended to read:
63A-9-401. Division -- Duties.
(1) The division shall:
(a) perform all administrative duties and functions related to management of state
vehicles;
[(a)] (b) coordinate all purchases of state vehicles;
[(b)] (c) establish one or more fleet automation and information systems for state
vehicles;
[(c)] (d) make rules establishing requirements for:
(i) maintenance operations for state vehicles;
(ii) use requirements for state vehicles;
(iii) fleet safety and loss prevention programs;

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(iv) preventative maintenance programs;
(v) procurement of state vehicles, including [authorization requirements for fleet
expansion and] vehicle standards [for vehicle sizing], alternative fuel [vehicles] vehicle
requirements, short-term lease programs, equipment installation, and warranty recovery
programs;
(vi) fuel management programs;
(vii) cost management programs;
(viii) business and personal use practices, including commute standards;
(ix) cost recovery and billing procedures;
(x) disposal of state vehicles;
(xi) reassignment of state vehicles and reallocation of vehicles [to other fleets]
throughout the fleet;
(xii) standard use and rate structures for state vehicles; and
(xiii) insurance and risk management requirements;
[(d)] (e) establish a parts inventory;
[(e)] (f) create and administer a fuel dispensing services program that meets the
requirements of Subsection (2);
[(f)] (g) emphasize customer service when dealing with agencies and agency employees;
and
[(g)] (h) conduct an annual audit of all state vehicles for compliance with division
requirements.
(2) The division shall operate a fuel dispensing services program in a manner that:
(a) reduces the risk of environmental damage and subsequent liability for leaks involving
state-owned underground storage tanks;
(b) eliminates fuel site duplication and reduces overall costs associated with fuel
dispensing;
(c) provides efficient fuel management and efficient and accurate accounting of
fuel-related expenses;

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(d) where practicable, privatizes portions of the state's fuel dispensing system;
(e) provides central planning for fuel contingencies;
(f) establishes fuel dispensing sites that meet geographical distribution needs and that
reflect usage patterns;
(g) where practicable, uses alternative sources of energy; and
(h) provides safe, accessible fuel supplies in an emergency.
(3) The division shall:
(a) ensure that the state and each of its agencies comply with state and federal law and
state and federal rules and regulations governing underground storage tanks;
(b) coordinate the installation of new state-owned underground storage tanks and the
upgrading or retrofitting of existing underground storage tanks; and
(c) ensure that counties, municipalities, school districts, and special districts subscribing
to services provided by the division sign a contract that:
(i) establishes the duties and responsibilities of the parties;
(ii) establishes the cost for the services; and
(iii) defines the liability of the parties.
(4) The executive director of the Department of Administrative Services may make rules
governing fuel dispensing according to the procedures and requirements of Title 63, Chapter 46a,
Utah Administrative Rulemaking Act.
[(2)] (5) (a) (i) Each state agency and each higher education institution shall subscribe to
the fuel dispensing services provided by the division.
(ii) A state agency may not provide or subscribe to any other fuel dispensing services,
systems, or products other than those provided by the division.
(b) Counties, municipalities, school districts, special districts, and federal agencies may
subscribe to the fuel dispensing services provided by the division if:
(i) the county or municipal legislative body, the school district, or the special district
board recommends that the county, municipality, school district, or special district subscribe to
the fuel dispensing services of the division; and

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(ii) the division approves participation in the program by that government unit.
(6) The director, with the approval of the executive director, may delegate functions to
institutions of higher education, by contract or other means authorized by law, if:
(a) the agency or institution of higher education has requested the authority;
(b) in the judgment of the director, the state agency or institution has the necessary
resources and skills to perform the delegated responsibilities; and
(c) the delegation of authority is in the best interest of the state and the function
delegated is accomplished according to provisions contained in law or rule.
Section 6. Section 63A-9-501 is amended to read:
63A-9-501. Complaints about misuse or illegal operation of state vehicles --
Disposition.
(1) The division shall refer complaints from the public about misuse or illegal operation
of state vehicles to the agency that is the owner or lessor of the vehicle.
(2) Each agency head or his designee shall investigate all complaints about misuse or
illegal operation of state vehicles and shall discipline each employee that is found to have
misused or illegally operated a vehicle by following the procedures set forth in the rules adopted
by the [Division of Personnel Management] Department of Human Resource Management as
authorized by Section 67-19-18 .
(3) (a) Each agency shall report the findings of each investigation conducted as well as
any action taken as a result of the investigation to the directors of the Divisions of Fleet
Operations and Risk Management.
(b) Misuse or illegal operation of state vehicles may result in suspension or revocation of
state vehicle driving privileges as governed in rule.
Section 7. Repealer.
This act repeals:
Section 63A-2-201, Duties of the division -- Fuel dispensing.

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