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H.B. 319 Enrolled

             1     

REVIEW AND APPROVAL OF GRANTS

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: David Clark

             5     
Senate Sponsor: Curtis S. Bramble

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill establishes a process for review and approval for certain grants that persons and
             10      corporations offer to a state agency.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires that the governor approve certain grants to executive branch agencies;
             14          .    requires the Judicial Council to approve certain grants to judicial branch agencies;
             15          .    requires that the Executive Appropriations Committee review and comment on
             16      certain grants;
             17          .    requires that the Legislature review and approve certain grants;
             18          .    establishes remedies if state agencies fail to obtain appropriate approvals; and
             19          .    makes technical corrections.
             20      Monies Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      ENACTS:
             26          63J-7-101, Utah Code Annotated 1953
             27          63J-7-102, Utah Code Annotated 1953
             28          63J-7-201, Utah Code Annotated 1953
             29          63J-7-202, Utah Code Annotated 1953


             30          63J-7-203, Utah Code Annotated 1953
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 63J-7-101 is enacted to read:
             34     
CHAPTER 7. GRANTS FROM PERSONS AND CORPORATIONS

             35     
Part 1. General Provisions

             36          63J-7-101. Definitions.
             37          (1) As used in this chapter:
             38          (a) (i) "Agency" means a department, division, committee, commission, council, court,
             39      or other administrative subunit of the state.
             40          (ii) "Agency" includes executive branch entities and judicial branch entities.
             41          (iii) "Agency" does not mean higher education institutions or political subdivisions.
             42          (b) (i) "Grant" means cash or other monies donated to an agency by a grantor.
             43          (ii) "Grant" includes a reauthorization of an existing grant.
             44          (iii) "Grant" does not mean:
             45          (A) monies appropriated to an agency by the Legislature;
             46          (B) monies received from the United States government;
             47          (C) monies legally required to be paid to the state; or
             48          (D) monies legally required to be repaid by the state.
             49          (c) "Grantor" means the individual, group of individuals, foundation, corporation, or
             50      public or private organization making the grant.
             51          (d) "Grant reauthorization" means the formal submission from an agency to the grantor
             52      applying for reauthorization or seeking reauthorization of a grant.
             53          (e) "Grant summary" means a document detailing:
             54          (i) the amount of money that is being requested or is available to be received by the
             55      agency from a grant;
             56          (ii) the duration of the grant and provisions for its reauthorization or extension, if any;
             57          (iii) the name of the grantor;


             58          (iv) the purpose of the grant, including, in detail, any programs, resources, and
             59      positions required to be funded by the grant;
             60          (v) any requirements that the agency must meet as a condition to receive or participate
             61      in the grant; and
             62          (vi) the amount of state monies, if any, that will be required in order to obtain the grant.
             63          (f) "New state monies" means monies, whether specifically appropriated by the
             64      Legislature or not, that the grantor requires Utah to expend as a condition for receiving the
             65      grant.
             66          (g) "State" means the state of Utah and all of its agencies, and any administrative
             67      subunits of those agencies.
             68          (2) When this chapter describes an employee as a "permanent full-time employee" or a
             69      "permanent part-time employee," it is not intended to, and may not be construed to, affect the
             70      employee's status as an at-will employee.
             71          Section 2. Section 63J-7-102 is enacted to read:
             72          63J-7-102. Scope and applicability of chapter.
             73          (1) Except as provided in Subsection (2), and except as otherwise provided by a statute
             74      superseding provisions of this chapter by explicit reference to this chapter, the provisions of this
             75      chapter apply to each agency and govern each grant received on or after May 5, 2008.
             76          (2) This chapter does not govern:
             77          (a) a grant deposited into a General Fund restricted account;
             78          (b) a grant deposited into a Trust and Agency Fund as defined in Section 51-5-4 ;
             79          (c) a grant deposited into an Enterprise Fund as defined in Section 51-5-4 ;
             80          (d) a grant made to the state without a restriction or other designated purpose that is
             81      deposited into the General Fund as free revenue;
             82          (e) a grant made to the state that is restricted only to "education" and that is deposited
             83      into the Education Fund or Uniform School Fund as free revenue;
             84          (f) in-kind donations;
             85          (g) a tax, fees, penalty, fine, surcharge, money judgment, or other monies due the state


             86      when required by state law or application of state law;
             87          (h) a contribution made under Title 59, Chapter 10, Part 13, Individual Income Tax
             88      Contribution Act;
             89          (i) a grant received by an agency from another agency or political subdivision;
             90          (j) a grant to the Dairy Commission created in Title 4, Chapter 22, Dairy Promotion
             91      Act;
             92          (k) a grant to the Heber Valley Railroad Authority created in Title 9, Chapter 3, Part 3,
             93      Heber Valley Historic Railroad Authority;
             94          (l) a grant to the Utah Science Center Authority created in Title 9, Chapter 3, Part 4,
             95      Utah Science Center Authority;
             96          (m) a grant to the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah
             97      Housing Corporation Act;
             98          (n) a grant to the Utah State Fair Corporation created in Title 9, Chapter 4, Part 11,
             99      Utah State Fair Corporation Act;
             100          (o) a grant to the Workers' Compensation Fund created in Title 31A, Chapter 33,
             101      Workers' Compensation Fund;
             102          (p) a grant to the Utah State Retirement Office created in Title 49, Chapter 11, Utah
             103      State Retirement Systems Administration;
             104          (q) a grant to the School and Institutional Trust Lands Administration created in Title
             105      53C, Chapter 1, Part 2, School and Institutional Trust Lands Administration;
             106          (r) a grant to the Utah Communications Agency Network created in Title 63C, Chapter
             107      7, Utah Communications Agency Network Act;
             108          (s) a grant to the Medical Education Program created in Section 63C-8-102 ;
             109          (t) a grant to the Utah Capital Investment Corporation created in Title 63, Chapter 38f,
             110      Part 12, Utah Venture Capital Enhancement Act;
             111          (u) a grant to the State Charter School Finance Authority created in Section
             112      53A-20b-103 ;
             113          (v) a grant to the State Building Ownership Authority created in Section 63B-1-304 ;


             114          (w) a grant to the Utah Comprehensive Health Insurance Pool created in Section
             115      31A-29-104 ; or
             116          (x) a grant to the Military Installation Development Authority created in Section
             117      63H-1-201 .
             118          (3) An agency need not seek legislative review or approval of grants under Part 2,
             119      Grant Approval Requirements, when:
             120          (a) the governor has declared a state of emergency; and
             121          (b) the grant is donated to the agency to assist disaster victims under Subsection
             122      63-5a-3 (2).
             123          Section 3. Section 63J-7-201 is enacted to read:
             124     
Part 2. Grant Approval Requirements

             125          63J-7-201. Governor to approve certain grant requests.
             126          (1) (a) Before obligating the state to accept or receive a grant, an executive branch
             127      agency shall submit a grant summary to the governor or the governor's designee for approval or
             128      rejection when:
             129          (i) the executive branch agency would receive a grant of at least $10,000 but no more
             130      than $50,000 if the grant is approved;
             131          (ii) receipt of the grant will require no additional permanent full-time employees,
             132      permanent part-time employees, or combination of additional permanent full-time employees
             133      and permanent part-time employees; and
             134          (iii) no new state monies will be required to match the grant.
             135          (b) The Governor's Office of Planning and Budget shall report each grant authorized
             136      under this section to:
             137          (i) the Legislature's Executive Appropriations Committee; and
             138          (ii) the Office of the Legislative Fiscal Analyst.
             139          (2) The governor or the governor's designee shall approve or reject each grant
             140      submitted under the authority of this section.
             141          (3) (a) If the governor or the governor's designee approves the grant, the executive


             142      branch agency may accept the grant.
             143          (b) If the governor or the governor's designee rejects the grant, the executive branch
             144      agency may not accept the grant.
             145          (4) If an executive branch agency fails to obtain the governor's or the governor's
             146      designee's approval under this section, the governor may require the agency to return the grant.
             147          Section 4. Section 63J-7-202 is enacted to read:
             148          63J-7-202. Judicial council to approve certain grant requests.
             149          (1) (a) Before obligating the state to accept or receive a grant, a judicial branch agency
             150      shall submit a grant summary to the Judicial Council for its approval or rejection when:
             151          (i) the state would receive a grant of at least $10,000 but no more than $50,000 if the
             152      grant is approved;
             153          (ii) receipt of the grant will require no additional permanent full-time employees,
             154      additional permanent part-time employees, or combination of additional permanent full-time
             155      employees and permanent part-time employees; and
             156          (iii) no new state monies will be required to match the grant.
             157          (b) The Judicial Council shall report each grant authorized under this section to:
             158          (i) the Legislature's Executive Appropriations Committee; and
             159          (ii) the Office of the Legislative Fiscal Analyst.
             160          (2) The Judicial Council shall approve or reject each grant submitted under the
             161      authority of this section.
             162          (3) (a) If the Judicial Council approves the grant, the judicial branch agency may accept
             163      the grant.
             164          (b) If the Judicial Council rejects the grant, the judicial branch agency may not accept
             165      the grant.
             166          (4) If a judicial branch agency fails to obtain the Judicial Council's approval under this
             167      section, the Judicial Council may require the agency to return the grant.
             168          Section 5. Section 63J-7-203 is enacted to read:
             169          63J-7-203. Legislative review and approval of certain grant requests.


             170          (1) As used in this section:
             171          (a) "High impact grant" means a grant that will or could:
             172          (i) result in the state receiving total payments of $1,000,000 or more per year from the
             173      grantor;
             174          (ii) require the state to add 11 or more permanent full-time employees, 11 or more
             175      permanent part-time employees, or combination of permanent full-time employees and
             176      permanent part-time employees equal to 11 or more in order to receive the grant; or
             177          (iii) require the state to expend more than $1,000,000 of new state monies in a fiscal
             178      year in order to receive or administer the grant.
             179          (b) "Medium impact grant" means a grant that will or could:
             180          (i) result in the state receiving total payments of more than $50,000 but less than
             181      $1,000,000 per year from the grantor;
             182          (ii) require the state to add more than zero but less than 11 permanent full-time
             183      employees, more than zero but less than 11 permanent part-time employees, or a combination of
             184      permanent full-time employees and permanent part-time employees equal to more than zero but
             185      less than 11 in order to receive or administer the grant; or
             186          (iii) require the state to expend $1 to $1,000,000 of new state monies in a fiscal year in
             187      order to receive or administer the grant.
             188          (2) (a) Before obligating the state to accept or receive a medium impact grant, and,
             189      where possible, before formally submitting a request for a medium impact grant to the grantor,
             190      an agency shall:
             191          (i) submit the grant summary to the governor or the Judicial Council, as appropriate, for
             192      approval or rejection; and
             193          (ii) if the governor or Judicial Council approves the grant, submit the grant summary to
             194      the Legislative Executive Appropriations Committee for its review and recommendations.
             195          (b) The Legislative Executive Appropriations Committee shall review the grant
             196      summary and may:
             197          (i) recommend that the agency accept the grant;


             198          (ii) recommend that the agency not accept the grant; or
             199          (iii) recommend to the governor that the governor call a special session of the
             200      Legislature to review and approve or reject the acceptance of the grant.
             201          (3) (a) Before obligating the state to accept or receive a high impact grant, and, where
             202      possible, before formally submitting a request for a high impact grant to the grantor, an agency
             203      shall:
             204          (i) submit the grant summary to the governor or Judicial Council, as appropriate, for
             205      approval or rejection; and
             206          (ii) if the governor or Judicial Council approves the grant, submit the grant summary to
             207      the Legislature for its approval or rejection in an annual general session or a special session.
             208          (b) (i) If the Legislature approves the grant, the agency may accept the grant.
             209          (ii) If the Legislature fails to approve the grant, the agency may not accept the grant.
             210          (c) If an agency fails to obtain the Legislature's approval under this Subsection (3):
             211          (i) the governor or Judicial Council, as appropriate, may require the agency to return
             212      the grant;
             213          (ii) the Legislature may direct the agency to return the grant to the grantor; or
             214          (iii) the Legislature may reduce the agency's appropriation in an amount less than, equal
             215      to, or greater than the amount of the grant received by the agency.


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