S.B. 175 Enrolled

REVENUE PROCEDURES AND CONTROL ACT
AMENDMENTS
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: Curtis S. Bramble
This act modifies the Utah Code sections governing accounting for revenues. This act
authorizes state agencies to collect fees or other revenues via credit cards or other
electronic means. This act authorizes state agencies to increase their fees to reimburse
the agency for the cost charged by third parties to process those electronic payments and
establishes requirements for accounting for those fees. This act requires the Office of the
Legislative Fiscal Analyst to study the process established in this act and make
recommendations to the Legislature. This act takes effect on July 1, 2003. Section
63-38a-105 is repealed July 1, 2007.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
41-1a-1201, as last amended by Chapter 1, Laws of Utah 2003
41-22-19, as last amended by Chapter 73, Laws of Utah 1999
63-55b-163, as last amended by Chapter 49, Laws of Utah 2002
73-18-22, as last amended by Chapter 205, Laws of Utah 1998
ENACTS:
41-1a-1221, Utah Code Annotated 1953
41-22-36, Utah Code Annotated 1953
63-38a-105, Utah Code Annotated 1953
73-18-25, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 41-1a-1201 is amended to read:
41-1a-1201. Disposition of fees.
(1) All fees received and collected under this part shall be transmitted daily to the state
treasurer.

(2) Except as provided in Subsections (3), (4), and (6), and [Section] Sections 41-1a-422 ,
[and in Section] 41-1a-1220 , and 41-1a-1221 , all fees collected under this part shall be deposited
in the Transportation Fund.
(3) (a) Funds generated under Subsections 41-1a-1211 (1)(a), (6)(a), and (7) and Section
41-1a-1212 may be used by the commission as a dedicated credit to cover the costs incurred in
issuing license plates under Part 4, License Plates and Registration Indicia.
(b) Fees for statehood centennial license plates shall be collected and deposited in the
Transportation Fund, less production and administrative costs incurred by the commission.
(4) All funds available to the commission for purchase and distribution of license plates
and decals are nonlapsing.
(5) Except as provided in Subsection (3) and Section 41-1a-1205 , the expenses of the
commission in enforcing and administering this part shall be provided for by legislative
appropriation from the revenues of the Transportation Fund.
(6) The following portions of the registration fees imposed under Section 41-1a-1206 for
each vehicle shall be deposited in the Centennial Highway Fund created under Section 72-2-118 :
(a) $10 of the registration fees imposed under Subsections 41-1a-1206 (1)(a), (1)(b), (2),
and (5);
(b) $1 of the registration fees imposed under Subsections 41-1a-1206 (1)(c)(i), (1)(c)(ii),
and (1)(d)(ii);
(c) $2 of the registration fee imposed under Subsection 41-1a-1206 (1)(e)(ii);
(d) $3 of the registration fee imposed under Subsection 41-1a-1206 (1)(d)(i); and
(e) $4.50 of the registration fee imposed under Subsection 41-1a-1206 (1)(e)(i).
Section 2. Section 41-1a-1221 is enacted to read:
41-1a-1221. Fees to cover the cost of electronic payments.
(1) In accordance with Section 63-38a-105 , the Division of Motor Vehicles may collect
an electronic payment fee on all registrations and renewals of registration under Subsections
41-1a-1206 (1)(a), 41-1a-1206 (1)(b), and 41-1a-1206 (2).
(2) The division shall establish the fee according to the procedures and requirements of

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Section 63-38-3.2 .
Section 3. Section 41-22-19 is amended to read:
41-22-19. Deposit of fees and related moneys in Off-highway Vehicle Account --
Use for facilities, costs and expenses of division, and education -- Request for matching
funds.
(1) Except as provided under [Section] Sections 41-22-34 and 41-22-36 , all registration
fees and related moneys collected by the Motor Vehicle Division or any agencies designated to
act for the Motor Vehicle Division under this chapter shall be deposited as restricted revenue in
the Off-highway Vehicle Account in the General Fund less the costs of collecting off-highway
vehicle registration fees by the Motor Vehicle Division. The balance of the monies may be used
by the division as follows:
(a) for the construction, improvement, operation, or maintenance of publicly owned or
administered off-highway vehicle facilities;
(b) as grants or as matching funds with any federal agency, political subdivision of the
state, or organized user group for the construction, improvement, operation, acquisition, or
maintenance of publicly owned or administered off-highway vehicle facilities including public
access facilities;
(c) for the administration and enforcement of the provisions of this chapter; and
(d) for the education of off-highway vehicle users.
(2) All agencies or political subdivisions requesting matching funds shall submit plans
for proposed off-highway vehicle facilities to the division for review and approval.
Section 4. Section 41-22-36 is enacted to read:
41-22-36. Fees to cover the costs of electronic payments.
(1) In accordance with Section 63-38a-105 , the Division of Motor Vehicles may collect
an electronic payment fee on all registrations and renewals of registration under Section 41-22-8 .
(2) The division shall establish the fee according to the procedures and requirements of
Section 63-38-3.2 .
Section 5. Section 63-38a-105 is enacted to read:

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63-38a-105. Electronic Revenue Collections.
(1) As used in this section:
(a) "Agency" means any legislative, executive, judicial, or other entity of state
government that receives appropriations or charges fees and whose budget is accounted for by
the Division of Finance.
(b) "Electronic payment" means use of any form of payment processed through electronic
means, including credit cards, debit cards, and automatic clearinghouse transactions.
(c) "Electronic payment fee" means the fee assessed by an agency under the authority of
this section to defray the charge, discount fee, or processing fee charged by credit card companies
or processing agents to process an electronic payment.
(d) "Processing agent" means a bank, transaction clearing business, or other third-party
system provider that charges a fee to process an electronic payment.
(2) An agency may accept electronic payments by following the procedures and
requirements of this section.
(3) (a) If an agency chooses to accept electronic payments for a transaction, the agency
may charge an electronic payment fee.
(b) Each agency that charges an electronic payment fee shall include in its budget an
estimated total amount of revenue expected from electronic payment fees.
(c) If an agency chooses to charge an electronic payment fee, for fiscal year 2003-04
only, the agency need not comply with the procedures and requirements of Section 63-38-3.2 in
setting that fee.
(4) (a) Except as provided in Subsection (4)(d), each agency that chooses to charge an
electronic payment fee under Subsection (3) shall:
(i) determine the amount of the electronic payment fee; and
(ii) deposit electronic payment fees collected by it as dedicated credits under a separate
identification established for electronic payment fees by the Division of Finance.
(b) (i) An agency shall:
(A) include the cost of the electronic payment fee as a component of any other fee,

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regulatory fee, or other charge collected by the agency; and
(B) ensure that the fee, regulatory fee, or other charge for a transaction includes the
electronic payment fee regardless of the method of payment.
(ii) (A) The agency may not separately identify the electronic payment fee from the rest
of the fee, regulatory fee, or other charge in the fee schedule provided to the Legislature as
required by Section 63-38-3.2 .
(B) Notwithstanding the provisions of Subsection (4)(b)(ii)(A), if a fee or charge is set
forth in statute, an agency may include a separate electronic payment fee in the fee schedule
required by Section 63-38-3.2 .
(c) Except as provided in Subsection (8), an agency may not separately identify a charge
assessed to cover the cost of an electronic payment as a convenience fee or a surcharge on an
electronic payment.
(d) The Division of Finance may grant a whole or partial waiver from the requirements
of this Subsection (4) to any agency that is currently charging an electronic payment fee if the
agency demonstrates that complying with this Subsection (4) would be unduly burdensome or
expensive.
(5) (a) The amount collected by an agency as dedicated credits from the electronic
payment fee portion of a fee, regulatory fee, or charge:
(i) may be expended by the agency to cover the cost of electronic payments; and
(ii) is not subject to the expenditure limits or lapsing requirements of Subsection
63-38a-104 (2).
(b) The amount collected for electronic payment fees that exceeds the amount necessary
to pay the cost of electronic payments does not lapse to any fund at the end of any fiscal year.
(c) An agency may use any nonlapsing balance authorized by this Subsection (5) only to
offset any subsequent shortages in electronic payment fee collections.
(6) (a) In accounting for electronic payment fees, the Division of Finance shall:
(i) establish a separate identification for electronic payment fees;
(ii) ensure that the identification is different from the revenue type identification;

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(iii) treat the cost of electronic payments as an administrative expense of the agency
accepting the electronic payment; and
(iv) account for electronic payment fees as dedicated credits to be used to pay the cost of
electronic payments.
(b) In accounting for electronic payment fees, the Division of Finance may not apply to
the electronic payment fee the same identification as to revenue type or use restriction as the fee
to which it applies.
(7) In preparing the annual appropriations act, the Office of the Legislative Fiscal
Analyst shall, if directed to do so by the Legislature, fund electronic payment fees as part of the
agency's appropriation as:
(a) dedicated credits, if the agency has increased fees, regulatory fees, or other charges as
authorized by Subsection (4)(b); or
(b) an appropriation from free revenues or restricted accounts.
(8) (a) If the cost of processing electronic payments as required in Subsections (4)
through (7) is excessive for large dollar items such as taxes or other large regulatory fees, an
agency may establish an alternate method for recovering those costs, including:
(i) imposing an additional convenience fee charged to the payee;
(ii) imposing restrictions on the type of electronic payments accepted; or
(iii) other variations to recover the cost of processing electronic payments.
(b) An agency may not implement an alternative method of cost recovery under this
Subsection (8) until it is approved by the director of the Division of Finance and the director of
the Governor's Office of Planning and Budget.
(c) If an agency is authorized to charge an additional convenience fee or surcharge for
processing these large dollar electronic payments, the agency and the Division of Finance shall:
(i) account for those fees as dedicated credits; and
(ii) comply with the requirements of this section in depositing and accounting for those
fees.
(d) If an agency is authorized to charge an additional convenience fee or surcharge for

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processing these large dollar electronic payments, the agency shall determine the amount of the
convenience fee or surcharge.
(9) (a) Notwithstanding the provisions of Section 63-38-3.2 , an agency may increase the
fees identified in the fee schedule passed in the 2003 Annual General Session of the Legislature
by the amount of the electronic payment fee authorized by this section.
(b) In the 2004 Annual General Session, each agency that is required to submit a fee
schedule under Section 63-38-3.2 shall submit a report that identifies:
(i) the fee amount that was approved by the Legislature in the 2003 Annual General
Session; and
(ii) the specific electronic payment fee amount added to that fee by the agency under
authority of this section.
(c) In submitting the fee schedule required by Section 63-38-3.2 for the 2004 Annual
General Session, the agency shall identify the new fee amount, which shall include the electronic
payment fee, to be approved by the Legislature in the 2004 Annual General Session.
(10) (a) After July 1, 2004, an agency may not charge, assess, or establish any fee,
convenience fee, or surcharge to cover the cost of electronic payments except as provided in this
section.
(b) The fees or charges established in the following sections are subject to this section:
(i) Section 41-1a-1221 ;
(ii) Section 41-22-36 ; and
(iii) Section 73-18-25 .
(11) During the 2006 interim, the Office of the Legislative Fiscal Analyst shall:
(a) analyze the process established by this section to determine its strengths and
weaknesses;
(b) specifically evaluate the advantages and disadvantages of shifting funding of
electronic processing fees from dedicated credits to each agency's base budget; and
(c) by November 1, 2006, make recommendations to the Executive Appropriations
Committee about:

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(i) whether the process established by this section should be reauthorized or sunsetted;
(ii) improvements or modifications to the process established by this section; and
(iii) whether or not to continue funding electronic payment fees through dedicated
credits.
Section 6. Section 63-55b-163 is amended to read:
63-55b-163. Repeal dates, Title 63.
(1) Section 63-38a-105 is repealed July 1, 2007.
[(3)] (2) Section 63-56-35.9 is repealed July 1, 2005.
[(2)] (3) Sections 63-63b-101 and 63-63b-102 are repealed on July 1, 2007.
[(1)] (4) Title 63, Chapter 95, Parts 2 and 3 are repealed July 1, 2004.
Section 7. Section 73-18-22 is amended to read:
73-18-22. Boating Account created -- Contents -- Use of money.
(1) There is created within the General Fund a restricted account known as the Boating
Account.
(2) Except as provided under [Section] Sections 73-18-24 and 73-18-25 , all registration
fees and related moneys collected by the division or any authorized agent, less the costs of
collecting motorboat and sailboat registration fees by an authorized agent, shall be deposited into
the Boating Account.
(3) The amount retained by an authorized agent may not exceed 20% of the fees charged
in Section 73-18-7 .
(4) Money in the Boating Account may be used for:
(a) the construction, improvement, operation, and maintenance of publicly owned
boating facilities;
(b) boater education; and
(c) the payment of the costs and expenses of the division in administering and enforcing
this chapter.
Section 8. Section 73-18-25 is enacted to read:
73-18-25. Fees to cover the costs of electronic payments.

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(1) In accordance with Section 63-38a-105 , the Division of Motor Vehicles may collect
an electronic payment fee on all registrations and renewals of registration under Section 73-18-7 .
(2) The division shall establish the fee according to the procedures and requirements of
Section 63-38-3.2 .
Section 9. Effective date.
This act takes effect on July 1, 2003.

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