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H.B. 410

This document includes House Committee Amendments incorporated into the bill on Thu, Feb 14, 2008 at 1:22 PM by ddonat. -->              1     

RESTRICTED ACCOUNTS AMENDMENTS

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ron Bigelow

             5     
Senate Sponsor: Lyle W. Hillyard

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the interest provisions of certain restricted accounts.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires interest earnings in certain restricted accounts to be deposited into the
             13      General Fund rather than into the restricted account.
             14      Monies Appropriated in this Bill:
             15          None
             16      Other Special Clauses:
             17          This bill takes effect on July 1, 2008.
             18      Utah Code Sections Affected:
             19      AMENDS:
             20      H. [     23-14-14.2, as enacted by Laws of Utah 2007, Chapter 189 ] .H
             21          41-22-19.5, as enacted by Laws of Utah 2007, Chapter 299
             22          53-2-403, as enacted by Laws of Utah 2007, Chapter 328
             23          53-7-404 (Effective 07/01/08), as enacted by Laws of Utah 2007, Chapter 362
             24          53C-3-203, as enacted by Laws of Utah 2007, Chapter 303
             25          61-2-28, as enacted by Laws of Utah 2007, Chapter 325
             26          63-38f-2303, as enacted by Laws of Utah 2007, Chapter 327
             27          63-63a-10, as enacted by Laws of Utah 2007, Chapter 330


             28          63-97a-201, as enacted by Laws of Utah 2007, Chapter 384
             29          63-97a-202, as enacted by Laws of Utah 2007, Chapter 384
             30          67-5-25, as enacted by Laws of Utah 2007, Chapter 392
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33           H. [ Section 1. Section 23-14-14.2 is amended to read:
             34          23-14-14.2. Wildlife Resources Conservation Easement Restricted Account.
             35          (1) There is created within the General Fund a restricted account known as the Wildlife
             36      Resources Conservation Easement Account.
             37          (2) The Wildlife Resources Conservation Easement Account consists of:
             38          (a) grants from private foundations;
             39          (b) grants from local governments, the state, or the federal government;
             40          (c) grants from the Quality Growth Commission created under Section 11-38-201 ;
             41          (d) donations from landowners for monitoring and managing conservation easements;
             42      and
             43          (e) donations from any other person[; and].
             44          [(f) interest on account monies.]
             45          (3) (a) The state treasurer shall invest monies in the account according to Title 51,
             46      Chapter 7, State Money Management Act.
             47          (b) The Division of Finance shall deposit interest or other earnings derived from
             48      investment of account monies into the General Fund.
             49          [(3)] (4) Upon appropriation by the Legislature, the Division of Wildlife Resources
             50      shall use monies from the account to monitor and manage conservation easements held by the
             51      division.
             52          [(4)] (5) The division may not receive or expend donations from the account to acquire
             53      conservation easements.
] .H
             54          Section H. [ 2 ] 1 .H . Section 41-22-19.5 is amended to read:
             55           41-22-19.5. Off-highway Access and Education Restricted Account -- Creation --
             56      Funding -- Distribution of funds by the Board of Parks and Recreation.
             57          (1) There is created in the General Fund a restricted account known as the Off-highway
             58      Access and Education Restricted Account.


             59          (2) The account shall be funded by:
             60          (a) contributions deposited into the Off-highway Access and Education Restricted
             61      Account in accordance with Section 41-1a-230.6 ;
             62          (b) private contributions; and
             63          (c) donations or grants from public or private entities[; or].
             64          [(d) interest and earnings on fund monies.]
             65          (3) Funds in the account are nonlapsing.
             66          (4) The Legislature shall appropriate money in the account to the board.
             67          (5) (a) The state treasurer shall invest monies in the account according to Title 51,
             68      Chapter 7, State Money Management Act.
             69          (b) The Division of Finance shall deposit interest or other earnings derived from
             70      investment of account monies into the General Fund.
             71          [(5)] (6) The board may expend up to 10% of the monies appropriated under
             72      Subsection (4) to:
             73          (a) administer account distributions in accordance with Subsections [(6)] (7) through
             74      [(9)] (10); and
             75          (b) administer off-highway vehicle provisions under this chapter.
             76          [(6)] (7) The board shall distribute the funds to a charitable organization that:
             77          (a) qualifies as being tax exempt under Section 501(c)(3) of the Internal Revenue
             78      Code;
             79          (b) has at least one full-time employee; and
             80          (c) has as a primary part of its mission to:
             81          (i) protect access to public lands by motor vehicle and off-highway vehicle operators;
             82      and
             83          (ii) educate the public about appropriate off-highway vehicle use.
             84          [(7)] (8) The board may only consider proposals that are:
             85          (a) proposed by a charitable organization under Subsection [(6)] (7); and
             86          (b) designed to:
             87          (i) protect access to public lands by motor vehicle and off-highway vehicle operators;
             88      and
             89          (ii) educate the public about appropriate off-highway vehicle use.


             90          [(8)] (9) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             91      Act, the board shall make rules providing procedures for an organization to apply to receive
             92      funds under this section.
             93          [(9)] (10) The board may not:
             94          (a) require matching funds from a charitable organization as a condition of receiving
             95      funds; or
             96          (b) prohibit the use of funds to cover litigation expenses incurred in protecting access
             97      to public lands by motor vehicle and off-highway vehicle operators.
             98          Section H. [ 3 ] 2 .H . Section 53-2-403 is amended to read:
             99           53-2-403. State Disaster Recovery Restricted Account.
             100          (1) (a) There is created a restricted account in the General Fund known as the "State
             101      Disaster Recovery Restricted Account."
             102          (b) The disaster recovery fund shall consist of:
             103          (i) monies deposited into the disaster recovery fund in accordance with Section
             104      53-2-102.5 ;
             105          (ii) monies deposited into the disaster recovery fund in accordance with Section
             106      63-38-2.7 ;
             107          (iii) monies appropriated to the disaster recovery fund by the Legislature; and
             108          (iv) any other public or private monies received by the division that are:
             109          (A) given to the division for purposes consistent with this section; and
             110          (B) deposited into the disaster recovery fund at the request of:
             111          (I) the division; or
             112          (II) the person giving the monies[; and].
             113          [(v) interest or other earnings derived from the disaster recovery fund.]
             114          (c) The Division of Finance shall deposit interest or other earnings derived from
             115      investment of fund monies into the General Fund.
             116          [(c)] (d) Monies in the disaster recovery fund may only be used as follows:
             117          (i) without the monies being appropriated by the Legislature, in any fiscal year the
             118      division may use $100,000 to fund, in accordance with Section 53-2-404 , costs to the state of
             119      emergency disaster services in response to a declared disaster; and
             120          (ii) subject to being appropriated by the Legislature, monies not described in


             121      Subsection (1)[(c)](d)(i) may be used to fund costs to the state directly related to a declared
             122      disaster that are not costs related to:
             123          (A) emergency disaster services;
             124          (B) emergency preparedness; or
             125          (C) notwithstanding whether or not a county participates in the Wildland Fire
             126      Suppression Fund created in Section [ 65A-8-6.1 ] 65A-8-204 , any fire suppression or
             127      presuppression costs that may be paid for from the Wildland Fire Suppression Fund if the
             128      county participates in the Wildland Fire Suppression Fund.
             129          (2) The state treasurer shall invest monies in the disaster recovery fund according to
             130      Title 51, Chapter 7, State Money Management Act[, except that the state treasurer shall deposit
             131      all interest or other earnings derived from the disaster recovery fund into the disaster recovery
             132      fund].
             133          (3) (a) Except as provided in Subsection (1), the monies in the disaster recovery fund
             134      may not be diverted, appropriated, or used for a purpose that is not listed in this section.
             135          (b) Notwithstanding Section 63-38-3.6 , the Legislature may not appropriate monies
             136      from the disaster recovery fund to eliminate or otherwise reduce an operating deficit if the
             137      monies appropriated from the disaster recovery fund are used for a purpose other than one
             138      listed in this section.
             139          (c) The Legislature may not amend the purposes for which monies in the disaster
             140      recovery fund may be used except by the affirmative vote of two-thirds of all the members
             141      elected to each house.
             142          Section H. [ 4 ] 3 .H . Section 53-7-404 (Effective 07/01/08) is amended to read:
             143           53-7-404 (Effective 07/01/08). Certification and product change.
             144          (1) Each manufacturer shall submit to the state fire marshal a written certification
             145      attesting that:
             146          (a) each cigarette listed in the certification has been tested in accordance with Section
             147      53-7-403 ; and
             148          (b) each cigarette listed in the certification meets the performance standard set forth in
             149      Subsection 53-7-403 (2)(c).
             150          (2) Each cigarette listed in the certification shall be described with the following
             151      information:


             152          (a) brand, or trade name on the package;
             153          (b) style, such as light or ultra light;
             154          (c) length in millimeters;
             155          (d) circumference in millimeters;
             156          (e) flavor, such as menthol or chocolate, if applicable;
             157          (f) filter or nonfilter;
             158          (g) package description, such as soft pack or box;
             159          (h) marking approved in accordance with Section 53-7-405 ;
             160          (i) the name, address, and telephone number of the laboratory, if different than the
             161      manufacturer that conducted the test; and
             162          (j) the date that the testing occurred.
             163          (3) The certifications shall be made available to the attorney general for purposes
             164      consistent with this part and the State Tax Commission for the purposes of ensuring
             165      compliance with this section.
             166          (4) Each cigarette certified under this section shall be recertified every three years.
             167          (5) For each cigarette listed in a certification, a manufacturer shall pay to the state fire
             168      marshal a $250 fee. The state fire marshal is authorized to annually adjust this fee to ensure it
             169      defrays the actual costs of the processing, testing, enforcement, and oversight activities
             170      required by this part.
             171          (6) (a) Beginning July 1, 2008, there is created a restricted account within the General
             172      Fund called the "Reduced Cigarette Ignition Propensity and Firefighter Protection Act
             173      Enforcement Account."
             174          (b) The account created in Subsection (6)(a) shall consist of[: (i)] all certification fees
             175      submitted by manufacturers[; and (ii) interest on account monies].
             176          (c) (i) The state treasurer shall invest monies in the account according to Title 51,
             177      Chapter 7, State Money Management Act.
             178          (ii) The Division of Finance shall deposit interest or other earnings derived from
             179      investment of account monies into the General Fund.
             180          (d) Upon appropriations from the Legislature, monies from the account created in
             181      Subsection (6)(a) shall be used by the state fire marshal solely to support processing, testing,
             182      enforcement, and oversight activities under this part.


             183          (7) (a) If a manufacturer has certified a cigarette pursuant to this section, and thereafter
             184      makes any change to the certified cigarette that is likely to alter its compliance with the reduced
             185      cigarette ignition propensity standards required by this part, that cigarette shall not be sold or
             186      offered for sale in this state until the manufacturer:
             187          (i) retests the cigarette in accordance with the testing standards set forth in Section
             188      53-7-403 ; and
             189          (ii) maintains records of that retesting as required by Section 53-7-403 .
             190          (b) Any altered cigarette which does not meet the performance standard set forth in
             191      Section 53-7-403 may not be sold in this state.
             192          Section H. [ 5 ] 4 .H . Section 53C-3-203 is amended to read:
             193           53C-3-203. Land Exchange Distribution Account.
             194          (1) As used in this section, "account" means the Land Exchange Distribution Account
             195      created in Subsection (2)(a).
             196          (2) (a) There is created within the General Fund a restricted account known as the Land
             197      Exchange Distribution Account.
             198          (b) The account shall consist of all revenue deposited in the account as required by
             199      Subsections 53C-3-202 (2)(a)(ii) and (2)(b)(ii).
             200          (3) (a) The state treasurer shall invest monies in the account according to Title 51,
             201      Chapter 7, State Money Management Act.
             202          (b) The Division of Finance shall deposit interest or other earnings derived from
             203      investment of account monies into the General Fund.
             204          [(3)] (4) For fiscal years beginning on or after fiscal year 2007-08, because the revenue
             205      is not derived from taxes, the Legislature shall annually appropriate from the account:
             206          (a) 55% of all deposits made to the account to counties in amounts proportionate to the
             207      amounts of mineral revenue generated from the acquired land, exchanged land, acquired
             208      mineral interests, or exchanged mineral interests located in each county, to be used to mitigate
             209      the impacts caused by mineral development;
             210          (b) 25% of all deposits made to the account to counties in amounts proportionate to the
             211      total surface and mineral acreage within each county that was conveyed to the United States
             212      under the agreement or an exchange, to be used to mitigate the loss of mineral development
             213      opportunities resulting from the agreement or exchange;


             214          (c) 1.68% of all deposits made to the account to the State Board of Education, to be
             215      used for education research and experimentation in the use of staff and facilities designed to
             216      improve the quality of education in Utah;
             217          (d) 1.66% of all deposits made to the account to the Geological Survey, to be used for
             218      natural resources development in the state;
             219          (e) 1.66% of all deposits made to the account to the Water Research Laboratory at Utah
             220      State University, to be used for water development in the state; and
             221          (f) 7.5% of all deposits made to the account to the Constitutional Defense Restricted
             222      Account created in Section 63C-4-103 .
             223          [(4)] (5) For fiscal years 2007-08 and 2008-09, the Legislature shall annually
             224      appropriate from the account 7.5% of all deposits made to the account to the Geological
             225      Survey, to be used for test wells and other hydrologic studies in the West Desert.
             226          [(5)] (6) For fiscal years beginning on or after fiscal year 2009-10, the Legislature shall
             227      annually appropriate from the account 7.5% of all deposits made to the account to the
             228      Permanent Community Impact Fund created in Section 9-4-303 , to be used for grants to
             229      political subdivisions of the state to mitigate the impacts resulting from the development or use
             230      of school and institutional trust lands.
             231          Section H. [ 6 ] 5 .H . Section 61-2-28 is amended to read:
             232           61-2-28. Utah Housing Opportunity Restricted Account.
             233          (1) There is created in the General Fund a restricted account known as the "Utah
             234      Housing Opportunity Restricted Account."
             235          (2) The account shall be funded by:
             236          (a) contributions deposited into the Utah Housing Opportunity Restricted Account in
             237      accordance with Section 41-1a-422 ;
             238          (b) private contributions; and
             239          (c) donations or grants from public or private entities[; and].
             240          [(d) interest and earnings on fund monies.]
             241          (3) Funds in the account are nonlapsing.
             242          (4) (a) The state treasurer shall invest monies in the account according to Title 51,
             243      Chapter 7, State Money Management Act.
             244          (b) The Division of Finance shall deposit interest or other earnings derived from


             245      investment of account monies into the General Fund.
             246          [(4)] (5) The Legislature shall appropriate money in the account to the division.
             247          [(5)] (6) The division shall distribute the funds to one or more charitable organizations
             248      that:
             249          (a) qualify as being tax exempt under Section 501(c)(3), Internal Revenue Code; and
             250          (b) have as a primary part of their mission to provide support to organizations that
             251      create affordable housing for those in severe need.
             252          [(6)] (7) The division may only consider proposals that are:
             253          (a) proposed by an organization under Subsection [(5)] (6); and
             254          (b) designed to provide support to organizations that create affordable housing for
             255      those in severe need.
             256          [(7)] (8) (a) An organization described in Subsection [(5)] (6) may apply to the division
             257      to receive a distribution in accordance with Subsection [(5)] (6).
             258          (b) An organization that receives a distribution from the division in accordance with
             259      Subsection [(5)] (6) shall expend the distribution only to provide support to organizations that
             260      create affordable housing for those in severe need.
             261          [(8)] (9) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             262      Act, the division shall make rules providing procedures for an organization to apply to receive
             263      funds under this section.
             264          Section H. [ 7 ] 6 .H . Section 63-38f-2303 is amended to read:
             265           63-38f-2303. Rural Broadband Service Fund created -- Interest -- Costs --
             266      Deposits to the General Fund.
             267          (1) There is created within the General Fund a restricted account known as the Rural
             268      Broadband Service Fund.
             269          (2) The fund shall be funded by[: (a)] monies appropriated to the fund by the
             270      Legislature[; and (b) the interest described in Subsection (3)].
             271          [(3) (a) The fund shall earn interest.]
             272          [(b) The interest described in Subsection (3)(a) shall be deposited into the fund.]
             273          (3) (a) The state treasurer shall invest monies in the account according to Title 51,
             274      Chapter 7, State Money Management Act.
             275          (b) The Division of Finance shall deposit interest or other earnings derived from


             276      investment of account monies into the General Fund.
             277          (4) Upon appropriation by the Legislature, the monies [and interest] deposited into the
             278      fund in accordance with this section may be expended:
             279          (a) by the director with the advice of the board to award grants to providers as provided
             280      in this part; and
             281          (b) to cover the costs of administering this part in an amount during any fiscal year not
             282      to exceed 2% of the fund balance at the start of any fiscal year.
             283          (5) (a) Except as provided in Subsection (5)(b), the monies [and interest] deposited into
             284      the fund in accordance with this section [shall be] are nonlapsing.
             285          (b) Notwithstanding Subsection (5)(a), the Division of Finance shall deposit any
             286      monies [and interest] in the fund into the General Fund on July 1, 2010.
             287          Section H. [ 8 ] 7 .H . Section 63-63a-10 is amended to read:
             288           63-63a-10. Law Enforcement Operations Account -- Share of surcharge -- Uses.
             289          (1) As used in this section:
             290          (a) "Account" means the Law Enforcement Operations Account.
             291          (b) "Commission" means the Commission on Criminal and Juvenile Justice created in
             292      Section 63-25a-101 .
             293          (c) "Law enforcement agency" means a state or local law enforcement agency.
             294          (d) "Other appropriate agency" means a state or local government agency, or a nonprofit
             295      organization, that works to prevent illegal drug activity and enforce laws regarding illegal drug
             296      activity and related criminal activity by:
             297          (i) programs, including education, prevention, treatment, and research programs; and
             298          (ii) enforcement of laws regarding illegal drugs.
             299          (2) There is created a restricted account within the General Fund known as the Law
             300      Enforcement Operations Account.
             301          (3) (a) The Division of Finance shall allocate the balance of the collected surcharge
             302      under Section 63-63a-1 that is not allocated under Title 63, Chapter 63a, Crime Victim
             303      Reparation Trust, Public Safety Support Funds, Substance Abuse Prevention Account, and
             304      Services for Victims of Domestic Violence Account, to the account, to be appropriated by the
             305      Legislature.
             306          (b) Money in the account shall be appropriated to the commission for implementing


             307      law enforcement operations and programs related to reducing illegal drug activity and related
             308      criminal activity as listed in Subsection (5).
             309          (c) The state treasurer shall invest monies in the account according to Title 51, Chapter
             310      7, State Money Management Act.
             311          (d) The Division of Finance shall deposit interest or other earnings derived from
             312      investment of account monies into the General Fund.
             313          (4) (a) The commission shall allocate grants of funds from the account for the purposes
             314      under Subsection (5) to state, local, or multijurisdictional law enforcement agencies and other
             315      appropriate agencies.
             316          (b) The grants shall be made by an application process established by the commission
             317      in accordance with Subsection (6).
             318          (5) (a) The first priority of the commission is to annually allocate not more than
             319      $2,500,000, depending upon funding available from other sources, to directly fund the
             320      operational costs of state and local law enforcement agencies' drug or crime task forces,
             321      including multijurisdictional task forces.
             322          (b) The second priority of the commission is to allocate grants for specified law
             323      enforcement agency functions and other agency functions as the commission finds appropriate
             324      to more effectively reduce illegal drug activity and related criminal activity, including
             325      providing education, prevention, treatment, and research programs.
             326          (6) (a) In allocating grants and determining the amount of the grants, the commission
             327      shall consider:
             328          (i) the demonstrated ability of the agency to appropriately use the grant to implement
             329      the proposed functions and how this function or task force will add to the law enforcement
             330      agency's current efforts to reduce illegal drug activity and related criminal activity; and
             331          (ii) the agency's cooperation with other state and local agencies and task forces.
             332          (b) Agencies qualify for a grant only if they demonstrate compliance with all reporting
             333      and policy requirements applicable under this section and under Title 63, Chapter 25a,
             334      Criminal Justice and Substance Abuse, in order to qualify as a potential grant recipient.
             335          (7) Recipient agencies may only use grant monies after approval or appropriation by
             336      the agency's governing body, and a determination that the grant monies are nonlapsing.
             337          (8) A recipient law enforcement agency may use funds granted under this section only


             338      for the purposes stated by the commission in the grant.
             339          (9) For each fiscal year, any law enforcement agency that receives a grant from the
             340      commission under this section shall prepare, and file with the commission and the state auditor,
             341      a report in a form specified by the commission. The report shall include the following
             342      regarding each grant:
             343          (a) the agency's name;
             344          (b) the amount of the grant;
             345          (c) the date of the grant;
             346          (d) how the grant has been used; and
             347          (e) a statement signed by both the agency's or political subdivision's executive officer
             348      or designee and by the agency's legal counsel, that all grant funds were used for law
             349      enforcement operations and programs approved by the commission and that relate to reducing
             350      illegal drug activity and related criminal activity, as specified in the grant.
             351          (10) The commission shall report in writing to the legislative Law Enforcement and
             352      Criminal Justice Interim Committee annually regarding the grants allocated under this section,
             353      including the amounts and uses of the grants.
             354          Section H. [ 9 ] 8 .H . Section 63-97a-201 is amended to read:
             355           63-97a-201. Creation of Infrastructure and Economic Diversification Investment
             356      Account.
             357          (1) (a) There is created a restricted account within the General Fund known as the
             358      "Infrastructure and Economic Diversification Investment Account."
             359          (b) The Infrastructure and Economic Diversification Investment Account shall consist
             360      of:
             361          (i) all monies credited to the account under Section 63-97a-202 ;
             362          (ii) appropriations from the Legislature; and
             363          (iii) grants from private foundations[; and].
             364          [(iv) interest and investment earnings on account monies.]
             365          [(2) (a) The Infrastructure and Economic Diversification Investment Account shall earn
             366      interest.]
             367          [(b) All interest earned on monies in the Infrastructure and Economic Diversification
             368      Investment Account shall be deposited into the Infrastructure and Economic Diversification


             369      Investment Account.]
             370          (2) (a) The state treasurer shall invest monies in the account according to Title 51,
             371      Chapter 7, State Money Management Act.
             372          (b) The Division of Finance shall deposit interest or other earnings derived from
             373      investment of account monies into the General Fund.
             374          (3) The Legislature may appropriate monies from the Infrastructure and Economic
             375      Diversification Investment Account for infrastructure and economic diversification investment
             376      projects.
             377          Section H. [ 10 ] 9 .H . Section 63-97a-202 is amended to read:
             378           63-97a-202. Creation of Severance Tax Holding Account -- Distribution of funds
             379      in the account.
             380          (1) (a) There is created a restricted account within the General Fund known as the
             381      "Severance Tax Holding Account."
             382          (b) The Severance Tax Holding Account shall consist of:
             383          (i) appropriations from the Legislature; and
             384          (ii) grants from private foundations[; and].
             385          [(iii) interest and investment earnings on Severance Tax Holding Account monies.]
             386          [(2) (a) The Severance Tax Holding Account shall earn interest.]
             387          [(b) All interest earned on monies in the Severance Tax Holding Account shall be
             388      deposited into the Severance Tax Holding Account.]
             389          (2) (a) The state treasurer shall invest monies in the account according to Title 51,
             390      Chapter 7, State Money Management Act.
             391          (b) The Division of Finance shall deposit interest or other earnings derived from
             392      investment of account monies into the General Fund.
             393          (3) If authorized by law the Division of Finance shall deposit all of the monies in the
             394      Severance Tax Holding Account as of June 30, 2009, into the permanent state trust fund.
             395          (4) The state treasurer shall invest and separately account for the earnings on funds that
             396      are deposited into the permanent state trust fund under this section.
             397          (5) (a) In accordance with Utah Constitution Article XXII, Section 4, the interest and
             398      dividends earned annually on revenue from severance taxes that are deposited into the
             399      permanent state trust fund shall be deposited in the General Fund.


             400          (b) Interest and dividends earned on revenue from severance taxes that are deposited in
             401      the General Fund pursuant to Subsection (5)(a) shall be credited to the Infrastructure and
             402      Economic Diversification Investment Account created in Section 63-97a-201 .
             403          Section H. [ 11 ] 10 .H . Section 67-5-25 is amended to read:
             404           67-5-25. Litigation Fund for Highway Projects Account.
             405          (1) There is created within the General Fund a restricted account known as the
             406      Litigation Fund for Highway Projects Account.
             407          (2) The Litigation Fund for Highway Projects Account consists of:
             408          (a) appropriations made to the account by the Legislature;
             409          (b) transfers to the account from highway project funds as approved by the
             410      Transportation Commission; and
             411          (c) any donations made to the account[; and].
             412          [(d) interest on account monies.]
             413          (3) (a) The state treasurer shall invest monies in the account according to Title 51,
             414      Chapter 7, State Money Management Act.
             415          (b) The Division of Finance shall deposit interest or other earnings derived from
             416      investment of account monies into the General Fund.
             417          [(3)] (4) (a) Upon appropriation by the Legislature, the attorney general shall use
             418      monies from the account to pay litigation expenses for defending legal actions filed against the
             419      state that challenge highway projects.
             420          (b) The Legislature intends that monies in the account be appropriated for a project's
             421      litigation expenses before appropriating funds for litigation expenses from any other source.
             422          [(4)] (5) The Division of Finance shall:
             423          (a) establish subaccounts within the Litigation Fund for Highway Projects Account to
             424      hold monies appropriated by the Legislature for litigation expenses for different highway
             425      projects;
             426          (b) apportion donations received equally among subaccounts unless the donor directs
             427      that the donation:
             428          (i) be used to defend a specific legal action; or
             429          (ii) be deposited into a specific subaccount; and
             430          (c) apportion interest between subaccounts proportionally based upon the balance of


             431      each subaccount.
             432          [(5)] (6) When some or all of the money appropriated to fund litigation expenses for a
             433      particular highway project is not expended, the Legislature shall:
             434          (a) appropriate those unused monies to the LeRay McAllister Critical Land
             435      Conservation Fund created by Section 11-38-301 ; or
             436          (b) return the money to the donor.
             437          Section H. [ 12 ] 11 .H . Effective date.
             438          This bill takes effect on July 1, 2008.




Legislative Review Note
    as of 1-31-08 12:23 PM


Office of Legislative Research and General Counsel


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