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First Substitute S.B. 191


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House Floor Amendments 3-5-2003 kh/rhr

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Senate 3rd Reading Amendments 2-27-2003 rd/rhr
This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Thu, Feb 27, 2003 at 11:33 AM by rday. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Thu, Feb 27, 2003 at 11:37 AM by rday. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Thu, Feb 27, 2003 at 11:41 AM by rday. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 5, 2003 at 12:20 PM by kholt. -->
Senator Carlene M. Walker proposes the following substitute bill:


             1     
COUNTY OVERSIGHT OF LOCAL AUTHORITIES

             2     
FOR HUMAN SERVICES

             3     
2003 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Carlene M. Walker

             6      This act modifies provisions related to Special Districts. h THE ACT SHIFTS, IN CERTAIN
             6a      COUNTIES, THE RESPONSIBILITIES ASSOCIATED WITH LOCAL MENTAL HEALTH AUTHORITIES
             6b      AND LOCAL SUBSTANCE ABUSE AUTHORITIES FROM THE COUNTY LEGISLATIVE BODY TO THE
             6c      COUNTY EXECUTIVE. h The act clarifies that counties
             7      may jointly provide mental health services and substance abuse services through an
             8      interlocal agreement. The act provides for the designation of officers for combined local
             9      mental health or substance abuse authorities and for the adoption of policies for the
             10      combined authorities. The act expands the records that a contract provider is required to
             11      make available for inspection and expands those who may inspect those records. The act
             12      expands mental health and substance abuse services to include those for incarcerated
             13      persons. The act modifies the oversight responsibility of a local mental health or
             14      substance abuse authority over contract providers and their employees. The act provides
             15      a coordination clause.
             16      This act affects sections of Utah Code Annotated 1953 as follows:
             17      AMENDS:
             18          17A-3-602, as last amended by Chapter 8, Laws of Utah 2002, Fifth Special Session
             19          17A-3-603.5, as enacted by Chapter 106, Laws of Utah 1999
             20          17A-3-701, as last amended by Chapter 8, Laws of Utah 2002, Fifth Special Session
             21          17A-3-703, as enacted by Chapter 106, Laws of Utah 1999
             22      Be it enacted by the Legislature of the state of Utah:


             23          Section 1. Section 17A-3-602 is amended to read:


            
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          17A-3-602. Local mental health authorities -- Responsibilities.
             25          (1) [All] h [ Each ] (a)(i) IN EACH COUNTY OPERATING UNDER A COUNTY
             25a1      EXECUTIVE-COUNCIL FORM OF GOVERNMENT UNDER SECTION 17-52-504, THE COUNTY
             25a2      EXECUTIVE IS THE LOCAL MENTAL HEALTH AUTHORITY.
             25a3          (ii) IN EACH COUNTY OPERATING UNDER A COUNCIL-MANAGER FORM OF GOVERNMENT
             25a4      UNDER SECTION 17-52-505, THE COUNTY MANAGER IS THE LOCAL MENTAL HEALTH AUTHORITY.
             25a5          (iii) IN EACH COUNTY OTHER THAN A COUNTY DESCRIBED IN SUBSECTION (1)(a)(i) OR (ii),
             25a6      THE h county h S [ [ ] legislative [ ] ] [ EXECUTIVE s ] h [bodies in this state are] body is h [ a ] THE h
             25a7      local
             25a      mental health



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             26
     [authorities] authority.
             26a           h (b) h Within legislative appropriations and county matching funds required
             27      by this section, under the policy direction of the [state Board of Substance Abuse and Mental
             28      Health] board and the administrative direction of the [Division of Substance Abuse and Mental
             29      Health within the Department of Human Services,] division, each local mental health
             30      [authorities] authority shall provide mental health services to persons within [their respective
             31      counties] the county. [Two]
             32          (2) (a) By executing an interlocal agreement under Title 11, Chapter 13, Interlocal
             33      Cooperation Act, two or more counties may join to provide mental health prevention and
             34      treatment services.
             35          [(2)] (b) The legislative bodies of counties joining to provide services may establish
             36      acceptable ways of apportioning the cost of mental health services. [Any]
             37          (c) Each agreement for joint mental health services [may] shall:
             38          (i) (A) designate the treasurer of one of the participating counties or another person as
             39      the treasurer for the combined mental health authorities and as the custodian of moneys
             40      available for [those] the joint services[,]; and
             41          (B) provide that the designated treasurer, or other disbursing officer authorized by the
             42      treasurer, may make payments from [those] the moneys available for [such purposes] the joint
             43      services upon audit of the appropriate auditing officer or officers representing the participating
             44      counties[. The];
             45          (ii) provide for the appointment of an independent auditor or a county auditor of one of
             46      the participating counties as the designated auditing officer for the combined mental health
             47      authorities;
             48          (iii) (A) provide for the appointment of the county or district attorney of one of the
             49      participating counties as the designated legal officer for the combined mental health
             50      authorities; and
             51          (B) authorize the designated legal officer to request and receive the assistance of the
             52      county or district attorneys of the other participating counties in defending or prosecuting
             53      actions within their counties relating to the combined mental health authorities; and
             54          (iv) provide for the adoption of management, clinical, financial, procurement,
             55      personnel, and administrative policies as already established by one of the participating
             56      counties or as approved by the legislative body of each participating county h OR INTERLOCAL
             56a      BOARD h .



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             57
         (d) An agreement for joint mental health services may provide for:
             58          [(a)] (i) joint operation of services and facilities or for operation of services and
             59      facilities under contract by one participating local mental health authority for other
             60      participating local mental health authorities; and
             61          [(b)] (ii) allocation of appointments of members of the mental health advisory council
             62      between or among participating counties.
             63          (3) (a) [All] Each h [ county S [legislative] EXECUTIVE s [bodies] body, as a ] h local mental
             63a1      health
             63a      [authorities,
             64      are] authority h [ , ] h is accountable to the [Department of Human Services] department, the
             65      Department of Health, and the state with regard to the use of state and federal funds received
             66      from those departments for mental health services, regardless of whether the services are
             67      provided by a private contract provider.
             68          (b) [A] Each local mental health authority shall comply, and require compliance by its
             69      contract provider, with all directives issued by the [Department of Human Services] department
             70      and the Department of Health regarding the use and expenditure of state and federal funds
             71      received from those departments for the purpose of providing mental health programs and
             72      services. The [Department of Human Services] department and Department of Health shall
             73      ensure that those directives are not duplicative or conflicting, and shall consult and coordinate
             74      with local mental health authorities with regard to programs and services.
             75          (4) [Local] (a) Each local mental health [authorities] authority shall:
             76          [(a)] (i) review and evaluate mental health needs and services, including mental health
             77      needs and services for persons incarcerated in a county jail or other county correctional facility;
             78          [(b)] (ii) as provided in Subsection (4)(b), annually prepare and submit to the division
             79      a plan for mental health funding and service delivery[. The plan shall include services for
             80      adults, youth, and children, including, but not limited to, the following:], either directly by the
             81      local mental health authority or by contract;
             82          [(i) inpatient care and services;]
             83          [(ii) residential care and services;]
             84          [(iii) outpatient care and services;]
             85          [(iv) 24-hour crisis care and services;]
             86          [(v) psychotropic medication management;]
             87          [(vi) psychosocial rehabilitation including vocational training and skills development;]



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             88
         [(vii) case management;]
             89          [(viii) community supports including in-home services, housing, family support
             90      services, and respite services; and]
             91          [(ix) consultation and education services, including but not limited to, case
             92      consultation, collaboration with other service agencies, public education, and public
             93      information;]
             94          [(c)] (iii) establish and maintain, either directly or by contract, programs licensed under
             95      Title 62A, Chapter 2, Licensure of Programs and Facilities;
             96          [(d)] (iv) appoint, directly or by contract, a full-time or part-time director for mental
             97      health programs and prescribe [his] the director's duties;
             98          [(e)] (v) provide input and comment on new and revised policies established by the
             99      [state Board of Substance Abuse and Mental Health] board;
             100          [(f)] (vi) establish and require contract providers to establish administrative, clinical,
             101      personnel, financial, procurement, and management policies regarding mental health services
             102      and facilities, in accordance with the policies of the [state Board of Substance Abuse and
             103      Mental Health] board and state and federal law;
             104          [(g)] (vii) establish mechanisms allowing for direct citizen input;
             105          [(h)] (viii) annually contract with the [Division of Substance Abuse and Mental Health]
             106      division to provide mental health programs and services in accordance with the provisions of
             107      Title 62A, Chapter 15, Substance Abuse and Mental Health Act;
             108          [(i)] (ix) comply with all applicable state and federal statutes, policies, audit
             109      requirements, contract requirements, and any directives resulting from those audits and contract
             110      requirements;
             111          [(j)] (x) provide funding equal to at least 20% of the state funds that it receives to fund
             112      services described in the plan; and
             113          [(k)] (xi) comply with the requirements and procedures of Title 11, Chapter 13,
             114      Interlocal Cooperation Act, Title 17A, Chapter 1, Part 4, Uniform Fiscal Procedures for Special
             115      Districts Act, and Title 51, Chapter 2, Audits of Political Subdivisions, Interlocal
             116      Organizations and Other Local Entities.
             117          (b) Each plan under Subsection (4)(a)(ii) shall include services for adults, youth, and
             118      children, h [ including ] WHICH MAY INCLUDE h :



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             119
         (i) inpatient care and services;
             120          (ii) residential care and services;
             121          (iii) outpatient care and services;
             122          (iv) 24-hour crisis care and services;
             123          (v) psychotropic medication management;
             124          (vi) psychosocial rehabilitation, including vocational training and skills development;
             125          (vii) case management;
             126          (viii) community supports, including in-home services, housing, family support
             127      services, and respite services;
             128          (ix) consultation and education services, including case consultation, collaboration
             129      with other county service agencies, public education, and public information; and
             130          (x) services to persons incarcerated in a county jail or other county correctional facility.
             131          (5) Before disbursing any public funds, each local mental health [authorities] authority
             132      shall require that [all entities] each entity that [receive] receives any public funds from a local
             133      mental health authority [agree] agrees in writing that:
             134          (a) [the division may examine] the entity's financial records[;] and other records
             135      relevant to the entity's performance of the services provided to the mental health authority,
             136      except patient identifying information, shall be subject to examination by:
             137          (i) the division;
             138          (ii) the local mental health authority director;
             139          (iii) (A) the county treasurer and county or district attorney; or
             140          (B) if two or more counties jointly provide mental health services under an agreement
             141      under Subsection (2), the designated treasurer and the designated legal officer;
             142          (iv) the county legislative body; and
             143          (v) in a county with a county executive that is separate from the county legislative
             144      body, the county executive;
             145          (b) the county auditor may examine and audit the entity's financial and other records
             146      relevant to the entity's performance of the services provided to the local mental health
             147      authority; and
             148          (c) the entity will comply with the provisions of Subsection (3)(b).
             149          (6) [Local] A local mental health [authorities] authority may receive property, grants,



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             150
     gifts, supplies, materials, contributions, and any benefit derived therefrom, for mental health
             151      services. If those gifts are conditioned upon their use for a specified service or program, they
             152      shall be so used.
             153          (7) (a) [For purposes of] As used in this section, "public funds" means the same as that
             154      term is defined in Section 17A-3-603.5 .
             155          (b) Nothing in this section limits or prohibits an organization exempt under Section
             156      501(c)(3), Internal Revenue Code, from using public funds for any business purpose or in any
             157      financial arrangement that is otherwise lawful for that organization.
             158          Section 2. Section 17A-3-603.5 is amended to read:
             159           17A-3-603.5. Definition of "public funds" -- Responsibility for oversight of public
             160      funds -- Mental health programs and services.
             161          (1) As used in this section, "public funds":
             162          (a) means:
             163          (i) federal [monies] money received from the [Department of Human Services]
             164      department or the Department of Health[,]; and
             165          (ii) state [monies] money appropriated by the Legislature to the [Department of Human
             166      Services] department, the Department of Health, a county governing body, or a local mental
             167      health authority for the purposes of providing mental health programs or services[. "Public
             168      funds"]; and
             169          (b) includes [those] that federal and state [monies that have] money:
             170          (i) even after the money has been transferred by a local mental health authority to a
             171      private provider under an annual or otherwise ongoing contract to provide comprehensive
             172      mental health programs or services for the local mental health authority[. Those monies
             173      maintain the nature of "public funds"]; and
             174          (ii) while in the possession of the private [entity that has an annual or otherwise
             175      ongoing contract with a local mental health authority to provide comprehensive mental health
             176      programs or services for the local mental health authority] provider.
             177          (2) Each local mental health authority is responsible for oversight of all public funds
             178      received by it, to determine that those public funds are utilized in accordance with federal and
             179      state law, the rules and policies of the [Department of Human Services] department and the
             180      Department of Health, and the provisions of any contract between the local mental health



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             181
     authority and the [Department of Human Services] department, the Department of Health, or a
             182      private provider. That oversight includes requiring that neither the contract provider, as
             183      described in Subsection (1), nor any of its employees:
             184          (a) violate any applicable federal or state criminal law;
             185          (b) knowingly violate[, on more than one occasion,] any applicable rule or policy of the
             186      [Department of Human Services] department or Department of Health, or any provision of
             187      contract between the local mental health authority and the [Department of Human Services]
             188      department, the Department of Health, or the private provider;
             189          (c) knowingly keep any false account or make any false entry or erasure in any account
             190      of or relating to the public funds;
             191          (d) fraudulently alter, falsify, conceal, destroy, or obliterate any account of or relating
             192      to public funds;
             193          (e) fail to ensure competent oversight for lawful disbursement of public funds;
             194          (f) appropriate public funds for an unlawful use or for a use that is not in compliance
             195      with contract provisions; or
             196          (g) knowingly or intentionally use public funds unlawfully or in violation of a
             197      governmental contract provision, or in violation of state policy.
             198          (3) Nothing in this section limits or prohibits an organization exempt under Section
             199      501(c)(3), Internal Revenue Code, from using public funds for any business purpose or in any
             200      financial arrangement that is otherwise lawful for that organization.
             201          (4) A local mental health authority that knew or reasonably should have known of any
             202      of the circumstances described in Subsection (2), and that fails or refuses to take timely
             203      corrective action in good faith shall, in addition to any other penalties provided by law, be
             204      required to make full and complete repayment to the state of all public funds improperly used
             205      or expended.
             206          (5) Any public funds required to be repaid to the state by a local mental health
             207      authority pursuant to Subsection (4), based upon the actions or failure of the contract provider,
             208      may be recovered by the local mental health authority from its contract provider, in addition to
             209      the local mental health authority's costs and attorney's fees.
             210          Section 3. Section 17A-3-701 is amended to read:
             211           17A-3-701. Local substance abuse authorities -- Responsibilities.



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         (1) [All] h [ Each ] (a)(i) IN EACH COUNTY OPERATING UNDER A COUNTY
             212a1      EXECUTIVE-COUNCIL FORM OF GOVERNMENT UNDER SECTION 17-52-504, THE COUNTY
             212a2      EXECUTIVE IS THE LOCAL SUBSTANCE ABUSE AUTHORITY.
             212a3          (ii) IN EACH COUNTY OPERATING UNDER A COUNCIL-MANAGER FORM OF GOVERNMENT
             212a4      UNDER SECTION 17-52-505, THE COUNTY MANAGER IS THE LOCAL SUBSTANCE ABUSE
             212a5      AUTHORITY.
             212a6          (iii) IN EACH COUNTY OTHER THAN A COUNTY DESCRIBED IN SUBSECTION (1)(a)(i) OR (ii),
             212a7      THE h county S h [ [ ] legislative [ ] ] [ EXECUTIVE s ] h [bodies in this state are] body is h [ a ] THE h
             212a8      local
             212a      substance
             213      abuse [authorities] authority.
             213a           h (b) h Within legislative appropriations and county matching funds
             214      required by this section, and under the policy direction of the [state Board of Substance Abuse
             215      and Mental Health] board and the administrative direction of the [Division of Substance Abuse
             216      and Mental Health within the Department of Human Services,] division, each local substance
             217      abuse [authorities] authority shall:
             218          (a) develop substance abuse prevention and treatment services plans; and
             219          (b) provide substance abuse services to residents of [their respective counties] the
             220      county. [Two]
             221          (2) (a) By executing an interlocal agreement under Title 11, Chapter 13, Interlocal
             222      Cooperation Act, two or more counties may join to provide substance abuse prevention and
             223      treatment services.
             224          [(2)] (b) The legislative bodies of counties joining to provide services may establish
             225      acceptable ways of apportioning the cost of substance abuse services. [Any]
             226          (c) Each agreement for joint substance abuse services [may] shall:
             227          (i) (A) designate the treasurer of one of the participating counties or another person as
             228      the treasurer for the combined substance abuse authorities and as the custodian of moneys
             229      available for [those] the joint services[,]; and
             230          (B) provide that the designated treasurer, or other disbursing officer authorized by the
             231      treasurer, may make payments from [those] the moneys for [such purposes] the joint services
             232      upon audit of the appropriate auditing officer or officers representing the participating
             233      counties[. The];
             234          (ii) provide for the appointment of an independent auditor or a county auditor of one of
             235      the participating counties as the designated auditing officer for the combined substance abuse


             236      authorities;
             237          (iii) (A) provide for the appointment of the county or district attorney of one of the


            
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     participating counties as the designated legal officer for the combined substance abuse
             239      authorities; and
             240          (B) authorize the designated legal officer to request and receive the assistance of the
             241      county or district attorneys of the other participating counties in defending or prosecuting
             242      actions within their counties relating to the combined substance abuse authorities; and



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             243
         (iv) provide for the adoption of management, clinical, financial, procurement,
             244      personnel, and administrative policies as already established by one of the participating
             245      counties or as approved by the legislative body of each participating county h OR INTERLOCAL
             245a      BOARD h .
             246          (d) An agreement for joint substance abuse services may provide for joint operation of
             247      services and facilities or for operation of services and facilities under contract by one
             248      participating local substance abuse authority for other participating local substance abuse
             249      authorities.
             250          (3) (a) [All] Each h [ county S [legislative] EXECUTIVE s [bodies] body, as a ] h local
             250a      substance
             250a      abuse
             251      [authorities, are] authority h [ , ] h is accountable to the [Department of Human Services] department,
             252      the Department of Health, and the state with regard to the use of state and federal funds
             253      received from those departments for substance abuse services, regardless of whether the
             254      services are provided by a private contract provider.
             255          (b) [A] Each local substance abuse authority shall comply, and require compliance by
             256      its contract provider, with all directives issued by the [Department of Human Services]
             257      department and the Department of Health regarding the use and expenditure of state and federal
             258      funds received from those departments for the purpose of providing substance abuse programs
             259      and services. The [Department of Human Services] department and Department of Health
             260      shall ensure that those directives are not duplicative or conflicting, and shall consult and
             261      coordinate with local substance abuse authorities with regard to programs and services.
             262          (4) [Local] Each local substance abuse [authorities] authority shall:
             263          (a) review and evaluate substance abuse prevention and treatment needs and services,
             264      including substance abuse needs and services for individuals incarcerated in a county jail or
             265      other county correctional facility;
             266          (b) annually prepare and submit [a plan] to the division a plan for funding and service
             267      delivery[; the plan shall include, but is not limited to,] that includes:
             268          (i) provisions for services, either directly by the substance abuse authority or by
             269      contract, for adults, youth, and children, including those incarcerated in a county jail or other
             270      county correctional facility; and
             271          (ii) primary prevention, targeted prevention, early intervention, and treatment services;
             272          (c) establish and maintain, either directly or by contract, programs licensed under Title
             273      62A, Chapter 2, Licensure of Programs and Facilities;



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             274
         (d) appoint directly or by contract a full or part time director for substance abuse
             275      programs, and prescribe [his] the director's duties;
             276          (e) provide input and comment on new and revised policies established by the [state
             277      Board of Substance Abuse and Mental Health] board;
             278          (f) establish and require contract providers to establish administrative, clinical,
             279      procurement, personnel, financial, and management policies regarding substance abuse services
             280      and facilities, in accordance with the policies of the [state Board of Substance Abuse and
             281      Mental Health] board, and state and federal law;
             282          (g) establish mechanisms allowing for direct citizen input;
             283          (h) annually contract with the [Division of Substance Abuse and Mental Health]
             284      division to provide substance abuse programs and services in accordance with the provisions of
             285      Title 62A, Chapter 15, Substance Abuse and Mental Health Act;
             286          (i) comply with all applicable state and federal statutes, policies, audit requirements,
             287      contract requirements, and any directives resulting from those audits and contract requirements;
             288          (j) promote or establish programs for the prevention of substance abuse within the
             289      community setting through community-based prevention programs;
             290          (k) provide funding equal to at least 20% of the state funds that it receives to fund
             291      services described in the plan;
             292          (l) comply with the requirements and procedures of Title 11, Chapter 13, Interlocal
             293      Cooperation Act, Title 17A, Chapter 1, Part 4, Uniform Fiscal Procedures for Special Districts
             294      Act, and Title 51, Chapter 2, Audits of Political Subdivisions, Interlocal Organizations and
             295      Other Local Entities;
             296          (m) for persons convicted of driving under the influence in violation of Subsection
             297      41-6-44 (2) or Section 41-6-44.6 , conduct the following as defined in Section 41-6-44 :
             298          (i) a screening and assessment;
             299          (ii) an educational series; and
             300          (iii) substance abuse treatment; and
             301          (n) utilize proceeds of the accounts described in Subsection 62A-15-503 (1) to
             302      supplement the cost of providing the services described in Subsection (4)(m).
             303          (5) Before disbursing any public funds, each local substance abuse [authorities]
             304      authority shall require that [all entities] each entity that [receive] receives any public funds



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             305
     from [a] the local substance abuse authority [agree] agrees in writing that:
             306          (a) [the division may examine] the entity's financial records[;] and other records
             307      relevant to the entity's performance of the services provided to the local substance abuse
             308      authority, except patient identifying information, shall be subject to examination by:
             309          (i) the division;
             310          (ii) the local substance abuse authority director;
             311          (iii) (A) the county treasurer and county or district attorney; or
             312          (B) if two or more counties jointly provide substance abuse services under an
             313      agreement under Subsection (2), the designated treasurer and the designated legal officer;
             314          (iv) the county legislative body; and
             315          (v) in a county with a county executive that is separate from the county legislative
             316      body, the county executive;
             317          (b) the county auditor may examine and audit the entity's financial and other records
             318      relevant to the entity's performance of the services provided to the local substance abuse
             319      authority; and
             320          (c) the entity will comply with the provisions of Subsection (3)(b).
             321          (6) [Local] A local substance abuse [authorities] authority may receive property, grants,
             322      gifts, supplies, materials, contributions, and any benefit derived therefrom, for substance abuse
             323      services. If those gifts are conditioned upon their use for a specified service or program, they
             324      shall be so used.
             325          (7) (a) [For purposes of] As used in this section, "public funds" means the same as that
             326      term is defined in Section 17A-3-703 .
             327          (b) Nothing in this section limits or prohibits an organization exempt under Section
             328      501(c)(3), Internal Revenue Code, from using public funds for any business purpose or in any
             329      financial arrangement that is otherwise lawful for that organization.
             330          Section 4. Section 17A-3-703 is amended to read:
             331           17A-3-703. Definition of "public funds" -- Responsibility for oversight of public
             332      funds -- Substance abuse programs and services.
             333          (1) As used in this section, "public funds":
             334          (a) means:
             335          (i) federal [monies] money received from the [Department of Human Services]



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             336
     department or the Department of Health[,]; and
             337          (ii) state [monies] money appropriated by the Legislature to the [Department of Human
             338      Services] department, the Department of Health, a county governing body, or a local substance
             339      abuse authority for the purposes of providing substance abuse programs or services[. "Public
             340      funds"]; and
             341          (b) includes [those] that federal and state [monies that have] money:
             342          (i) even after the money has been transferred by a local substance abuse authority to a
             343      private provider under an annual or otherwise ongoing contract to provide comprehensive
             344      substance abuse programs or services for the local substance abuse authority[. Those monies
             345      maintain the nature of "public funds"]; and
             346          (ii) while in the possession of the private [entity that has an annual or otherwise
             347      ongoing contract with a local substance abuse authority to provide comprehensive substance
             348      abuse programs or services for the local substance abuse authority] provider.
             349          (2) Each local substance abuse authority is responsible for oversight of all public funds
             350      received by it, to determine that those public funds are utilized in accordance with federal and
             351      state law, the rules and policies of the [Department of Human Services] department and the
             352      Department of Health, and the provisions of any contract between the local substance abuse
             353      authority and the [Department of Human Services] department, the Department of Health, or a
             354      private provider. That oversight includes requiring that neither the contract provider, as
             355      described in Subsection (1), nor any of its employees:
             356          (a) violate any applicable federal or state criminal law;
             357          (b) knowingly violate[, on more than one occasion,] any applicable rule or policy of the
             358      [Department of Human Services] department or Department of Health, or any provision of
             359      contract between the local substance abuse authority and the [Department of Human Services]
             360      department, the Department of Health, or the private provider;
             361          (c) knowingly keep any false account or make any false entry or erasure in any account
             362      of or relating to the public funds;
             363          (d) fraudulently alter, falsify, conceal, destroy, or obliterate any account of or relating
             364      to public funds;
             365          (e) fail to ensure competent oversight for lawful disbursement of public funds;
             366          (f) appropriate public funds for an unlawful use or for a use that is not in compliance



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     with contract provisions; or
             368          (g) knowingly or intentionally use public funds unlawfully or in violation of a
             369      governmental contract provision, or in violation of state policy.
             370          (3) Nothing in this section limits or prohibits an organization exempt under Section
             371      501(c)(3), Internal Revenue Code, from using public funds for any business purpose or in any
             372      financial arrangement that is otherwise lawful for that organization.
             373          (4) [A] Each local substance abuse authority that [knew] knows or reasonably should
             374      [have known] know of any of the circumstances described in Subsection (2), and that fails or
             375      refuses to take timely corrective action in good faith shall, in addition to any other penalties
             376      provided by law, be required to make full and complete repayment to the state of all public
             377      funds improperly used or expended.
             378          (5) Any public funds required to be repaid to the state by a local substance abuse
             379      authority [pursuant to] under Subsection (4), based upon the actions or failure of the contract
             380      provider, may be recovered by the local substance abuse authority from its contract provider, in
             381      addition to the local substance abuse authority's costs and attorney's fees.
             382          Section 5. Coordination clause.
             383          If this bill and S.B. 24, Local Human Services Authorities Amendments, both pass, it is
             384      the intent of the Legislature that:
             385          (1) except as provided in Subsection (2), the amendments in this bill to Sections
             386      17A-3-602 , 17A-3-603.5 , 17A-3-701, and 17A-3-703 supercede the amendments in S.B. 24 to
             387      those sections; and
             388          (2) in preparing the Utah Code database for publication, the Office of Legislative
             389      Research and General Counsel shall:
             390          (a) renumber Sections 17A-3-602 , 17A-3-603.5 , 17A-3-701 , and 17A-3-703 as those
             391      sections are renumbered in S.B. 24;
             392          (b) change the reference to Section 17A-3-603.5 in Subsection 17A-3-602 (7)(a) of this
             393      bill to Section 17-43-303 ; and
             394          (c) change the reference to Section 17A-3-703 in Subsection 17A-3-701 (7)(a) of this
             395      bill to Section 17-43-203 ..


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