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H.B. 391 Enrolled
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7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the Budgetary Procedures Act.
10 Highlighted Provisions:
11 This bill:
12 . reclassifies the Invasive Species Mitigation Fund from a restricted special revenue
13 fund to a general fund restricted account;
14 . reclassifies the Rangeland Improvement Fund from a restricted special revenue
15 account to a general fund restricted account;
16 . provides that interest accrued from the Rangeland Improvement Fund be deposited
17 into the General Fund;
18 . converts the LeRay McAllister Critical Land Conservation Fund to a program
19 funded by an appropriation line item for the Quality Growth Commission;
20 . removes references to the use of loans in relation to the LeRay McAllister Critical
21 Land Conservation Program;
22 . provides that the LeRay McAllister Critical Land Conservation Program's line item
23 be nonlapsing;
24 . reclassifies the Rural Health Care Facilities Fund from a restricted special revenue
25 fund to a general fund restricted account;
26 . revises agency fee language to accommodate the removal of the "regulatory" fee
27 designation;
28 . creates, modifies, and provides definitions in the Budgetary Procedures Act;
29 . clarifies the procedures to be followed when seeking to expend dedicated credits in
30 excess of the amount appropriated by the Legislature;
31 . clarifies procedures and simplifies timelines relating to the governor's submission
32 of a proposed budget;
33 . defines the term "work program" and clarifies and modifies the procedures for work
34 program adjustments;
35 . clarifies and makes amendments to the procedures for approving the transfer of
36 monies between programs;
37 . requires the Division of Finance to audit all claims against the state for which an
38 appropriation has been made;
39 . creates a preference for purchase card accounts over petty cash funds and provides
40 procedures for approving and reviewing petty account funds;
41 . provides that the Division of Finance, rather than the governor, review applications
42 and establish petty cash funds;
43 . permits the Division of Finance to eliminate existing cash funds in favor of a
44 purchasing card account;
45 . requires reports of overexpended line items to be submitted to the Office of the
46 Legislative Fiscal Analyst in addition to the Board of Examiners;
47 . modifies language related to the governor's obligation to reduce commitments and
48 expenditures in a deficit situation;
49 . requires that, in the event of a deficiency, state agencies proportionally reduce
50 commitments and expenditures;
51 . removes any distinction between "fees" and "regulatory fees";
52 . provides that all fees charged by an agency must be submitted to the Legislature
53 and approved in an appropriations act;
54 . clarifies that an agency must hold a public hearing on establishing or modifying a
55 fee before presenting the fee for legislative review;
56 . changes the term "college and university funds" to "discrete component unit funds"
57 to comply with currently existing definitions in other sections of the code;
58 . requires state institutions of higher education to report nonlapsing balances to the
59 Division of Finance by the September 1 following the close of the fiscal year;
60 . consolidates the listing of all nonlapsing funds and accounts;
61 . requires that an account or fund be expressly referenced as nonlapsing in the
62 Budgetary Procedures Act in order for the account or fund to be treated as
63 nonlapsing;
64 . requires legislative appropriations subcommittees to review those accounts and
65 funds that have been granted nonlapsing authority on a yearly basis;
66 . requires each agency to report the balances of any dedicated credits and fixed
67 collections at the end of each fiscal year; and
68 . makes technical changes.
69 Monies Appropriated in this Bill:
70 None
71 Other Special Clauses:
72 This bill takes effect on July 1, 2009.
73 This bill coordinates with H.B. 297, Budgetary Procedures Act Recodification, by
74 providing superseding amendments.
75 This bill coordinates with H.B. 400, Pete Suazo Utah Athletic Commission
76 Amendments, by providing substantive and technical amendments.
77 This bill provides revisor instructions.
78 Utah Code Sections Affected:
79 AMENDS:
80 4-2-8.7, as enacted by Laws of Utah 2008, Chapter 245
81 4-20-2, as last amended by Laws of Utah 2008, Chapter 399
82 11-38-102, as last amended by Laws of Utah 2008, Chapter 382
83 11-38-202, as enacted by Laws of Utah 1999, Chapter 24
84 11-38-301, as last amended by Laws of Utah 2007, Chapter 392
85 11-38-302, as last amended by Laws of Utah 2005, Chapter 138
86 11-38-304, as enacted by Laws of Utah 1999, Chapter 24
87 26-9-4, as last amended by Laws of Utah 2008, Chapter 187
88 31A-3-103, as last amended by Laws of Utah 2008, Chapter 382
89 38-11-201, as last amended by Laws of Utah 2008, Chapter 382
90 53-2-404, as last amended by Laws of Utah 2008, Chapter 382
91 63J-1-201, as last amended by Laws of Utah 2008, Chapter 213 and renumbered and
92 amended by Laws of Utah 2008, Chapter 382
93 63J-2-202, as renumbered and amended by Laws of Utah 2008, Chapter 382
94 67-5-25, as last amended by Laws of Utah 2008, Chapter 216
95 70-3a-203, as last amended by Laws of Utah 2008, Chapters 258 and 382
96 70-3a-302, as last amended by Laws of Utah 2008, Chapter 258
97 70-3a-303, as last amended by Laws of Utah 2008, Chapter 382
98 70-3a-305, as last amended by Laws of Utah 2008, Chapter 258
99 ENACTS:
100 63J-1-102, Utah Code Annotated 1953
101 63J-1-602, Utah Code Annotated 1953
102 RENUMBERS AND AMENDS:
103 63J-1-104, (Renumbered from 63J-1-404, as renumbered and amended by Laws of
104 Utah 2008, Chapter 382)
105 63J-1-206, (Renumbered from 63J-1-301, as renumbered and amended by Laws of
106 Utah 2008, Chapter 382)
107 63J-1-209, (Renumbered from 63J-1-406, as renumbered and amended by Laws of
108 Utah 2008, Chapter 382)
109 63J-1-215, (Renumbered from 63J-1-311, as renumbered and amended by Laws of
110 Utah 2008, Chapter 382)
111 63J-1-217, (Renumbered from 63J-1-405, as renumbered and amended by Laws of
112 Utah 2008, Chapter 382)
113 63J-1-504, (Renumbered from 63J-1-303, as renumbered and amended by Laws of
114 Utah 2008, Chapter 382)
115 63J-1-601, (Renumbered from 63J-1-401, as renumbered and amended by Laws of
116 Utah 2008, Chapter 382)
117 REPEALS:
118 11-38-303, as last amended by Laws of Utah 2008, Chapter 382
119
120 Be it enacted by the Legislature of the state of Utah:
121 Section 1. Section 4-2-8.7 is amended to read:
122 4-2-8.7. Invasive Species Mitigation Fund created.
123 (1) As used in this section, "project" means an undertaking that prevents catastrophic
124 wildland fire through land restoration in a watershed that:
125 (a) is impacted by cheatgrass or other invasive species; or
126 (b) has a fuel load that may contribute to a catastrophic wildland fire.
127 (2) (a) There is created a [
128 account known as the "Invasive Species Mitigation Fund."
129 (b) The fund shall consist of:
130 (i) money appropriated by the Legislature;
131 (ii) grants from the federal government; and
132 (iii) grants or donations from a person.
133 (3) Any unallocated balance in the fund at the end of the year is nonlapsing.
134 (4) (a) After consulting with the Department of Natural Resources and the
135 Conservation Commission, the department may expend fund monies:
136 (i) on a project implemented by:
137 (A) the department; or
138 (B) the Conservation Commission; or
139 (ii) by giving a grant for a project to:
140 (A) a state agency;
141 (B) a federal agency; or
142 (C) a federal, state, tribal, or private landowner.
143 (b) A grant to a federal landowner must be matched with at least an equal amount of
144 money by the federal landowner.
145 (c) In expending the fund monies authorized by Subsection (4)(a)(i), the department
146 shall use existing infrastructure and employees to plan and implement the project.
147 (5) In giving a grant, the department shall consider the effectiveness of a project in
148 preventing:
149 (a) first, the risk to public safety and health from:
150 (i) air pollution;
151 (ii) flooding; and
152 (iii) reduced visibility on a highway;
153 (b) second, damage to the environment, including:
154 (i) soil erosion;
155 (ii) degraded water quality; and
156 (iii) release of carbon; and
157 (c) third, damage to:
158 (i) a local economy; and
159 (ii) habitat for wildlife or livestock.
160 Section 2. Section 4-20-2 is amended to read:
161 4-20-2. Rangeland Improvement Fund -- Administered by department.
162 (1) (a) There is created a [
163 account known as the "Rangeland Improvement Fund."
164 (b) The fund shall consist of:
165 (i) all monies received by the state from the United States Secretary of Interior under
166 the Taylor Grazing Act, 43 U.S.C. Section 315 et seq., for sales, leases, and fees;
167 (ii) grants or appropriations from the state or federal government;
168 (iii) grants from private foundations; and
169 (iv) proceeds from the sale of a livestock watering right in accordance with Section
170 73-3-31 [
171 [
172 (c) Any interest earned on the fund shall be deposited into the General Fund.
173 (2) Any unallocated balance in the fund at the end of a fiscal year is nonlapsing.
174 (3) The department shall:
175 (a) administer the fund;
176 (b) obtain from the United States Department of Interior the receipts collected from:
177 (i) fees in each grazing district; and
178 (ii) the receipts collected from the sale or lease of public lands; and
179 (c) distribute fund monies in accordance with Section 4-20-3 .
180 Section 3. Section 11-38-102 is amended to read:
181 11-38-102. Definitions.
182 As used in this chapter:
183 (1) "Affordable housing" means housing occupied or reserved for occupancy by
184 households with a gross household income equal to or less than 80% of the median gross
185 income of the applicable municipal or county statistical area for households of the same size.
186 (2) "Agricultural land" has the same meaning as "land in agricultural use" under
187 Section 59-2-502 .
188 (3) "Brownfield sites" means abandoned, idled, or underused commercial or industrial
189 land where expansion or redevelopment is complicated by real or perceived environmental
190 contamination.
191 (4) "Commission" means the Quality Growth Commission established in Section
192 11-38-201 .
193 [
194
195 [
196 development on unused or underused land, excluding open land and agricultural land, within
197 existing, otherwise developed urban areas.
198 [
199 [
200 under Section 63J-4-201 .
201 [
202 (i) preserved in or restored to a predominantly natural, open, and undeveloped
203 condition; and
204 (ii) used for:
205 (A) wildlife habitat;
206 (B) cultural or recreational use;
207 (C) watershed protection; or
208 (D) another use consistent with the preservation of the land in or restoration of the
209 land to a predominantly natural, open, and undeveloped condition.
210 (b) (i) "Open land" does not include land whose predominant use is as a developed
211 facility for active recreational activities, including baseball, tennis, soccer, golf, or other
212 sporting or similar activity.
213 (ii) The condition of land does not change from a natural, open, and undeveloped
214 condition because of the development or presence on the land of facilities, including trails,
215 waterways, and grassy areas, that:
216 (A) enhance the natural, scenic, or aesthetic qualities of the land; or
217 (B) facilitate the public's access to or use of the land for the enjoyment of its natural,
218 scenic, or aesthetic qualities and for compatible recreational activities.
219 (9) "Program" means the LeRay McAllister Critical Land Conservation Program
220 established in Section 11-38-301 .
221 (10) "Surplus land" means real property owned by the Department of Administrative
222 Services, the Department of Agriculture and Food, the Department of Natural Resources, or
223 the Department of Transportation that the individual department determines not to be
224 necessary for carrying out the mission of the department.
225 Section 4. Section 11-38-202 is amended to read:
226 11-38-202. Commission duties and powers -- No regulatory authority.
227 (1) The commission shall:
228 (a) make recommendations to the Legislature on how to define more specifically
229 quality growth areas within the general guidelines provided to the commission by the
230 Legislature;
231 (b) advise the Legislature on growth management issues;
232 (c) make recommendations to the Legislature on refinements to this chapter;
233 (d) conduct a review in 2002 and each year thereafter to determine progress statewide
234 on accomplishing the purposes of this chapter, and give a report of each review to the Political
235 Subdivisions Interim Committee of the Legislature by November 30 of the year of the review;
236 (e) administer the [
237 (f) assist as many local entities as possible, at their request, to identify principles of
238 growth that the local entity may consider implementing to help achieve the highest possible
239 quality of growth for that entity;
240 (g) fulfill other responsibilities imposed on the commission by the Legislature; and
241 (h) fulfill all other duties imposed on the commission by this chapter.
242 (2) The commission may sell, lease, or otherwise dispose of equipment or personal
243 property belonging to the [
244 (3) The commission may not exercise any regulatory authority.
245 Section 5. Section 11-38-301 is amended to read:
246 11-38-301. LeRay McAllister Critical Land Conservation Program.
247 (1) There is created a [
248 McAllister Critical Land Conservation [
249 [
250 [
251
252 [
253
254 [
255
256
257 [
258
259 [
260
261 (2) Funding for the program shall be a line item in the budget of the Quality Growth
262 Commission. The line item shall be nonlapsing.
263 Section 6. Section 11-38-302 is amended to read:
264 11-38-302. Use of money in program -- Criteria -- Administration.
265 (1) Subject to Subsection (2), the commission may authorize the use of money in the
266 [
267 (a) a local entity;
268 (b) the Department of Natural Resources created under Section 63-34-3 ;
269 (c) the Department of Agriculture and Food created under Section 4-2-1 ; or
270 (d) a charitable organization that qualifies as being tax exempt under Section
271 501(c)(3) of the Internal Revenue Code.
272 (2) (a) The money in the [
273 land and agricultural land.
274 (b) (i) Except as provided in Subsection (2)(b)(ii), money from the [
275 may not be used to purchase a fee interest in real property in order to preserve open land or
276 agricultural land, but may be used to establish a conservation easement under Title 57,
277 Chapter 18, Land Conservation Easement Act, or to fund similar methods to preserve open
278 land or agricultural land.
279 (ii) Notwithstanding Subsection (2)(b)(i), money from the fund may be used to
280 purchase a fee interest in real property to preserve open land or agricultural land if:
281 (A) the parcel to be purchased is no more than 20 acres in size; and
282 (B) with respect to a parcel purchased in a county in which over 50% of the land area
283 is publicly owned, real property roughly equivalent in size and located within that county is
284 contemporaneously transferred to private ownership from the governmental entity that
285 purchased the fee interest in real property.
286 (iii) Eminent domain may not be used or threatened in connection with any purchase
287 using money from the [
288 (iv) A parcel of land larger than 20 acres in size may not be divided into separate
289 parcels smaller than 20 acres each to meet the requirement of Subsection (2)(b)(ii).
290 (c) A county, city, town, department, or organization under Subsection (1) may not
291 receive money from the [
292 than the amount of money received from the [
293 (d) In [
294 impose conditions on the recipient as to how the money is to be spent.
295 (e) The commission shall give priority to requests from the Department of Natural
296 Resources for up to 20% of each annual increase in the amount of money in the [
297 program if the money is used for the protection of wildlife or watershed.
298 (f) (i) The commission may not make a grant [
299 exceeds $1,000,000 until after making a report to the Legislative Management Committee
300 about the grant [
301 (ii) The Legislative Management Committee may make a recommendation to the
302 commission concerning the intended grant [
303 on the commission.
304 [
305
306
307 [
308
309 [
310 entity, department, or organization under Subsection (1) and subject to Subsection (2)(f), the
311 commission[
312
313 [
314 preserved or restored;
315 [
316 or restored;
317 [
318 agricultural land;
319 [
320 [
321 the amount of money sought by those applications;
322 [
323 and the priority placed on the project by that local entity;
324 [
325 [
326 [
327 seeks money from the [
328 watershed, the commission shall require that the needs and quality of that project be verified
329 by the state engineer.
330 [
331 shall be held and administered by the state or a local entity.
332 Section 7. Section 11-38-304 is amended to read:
333 11-38-304. Commission to report annually.
334 The commission shall submit an annual report to the Executive Appropriations
335 Committee of the Legislature:
336 (1) specifying the amount of each disbursement from the [
337
338 (2) identifying the recipient of each disbursement and describing the project for which
339 money was disbursed; and
340 (3) detailing the conditions, if any, placed by the commission on disbursements from
341 the [
342 Section 8. Section 26-9-4 is amended to read:
343 26-9-4. Rural Health Care Facilities Fund -- Source of revenues -- Interest --
344 Distribution of revenues -- Expenditure of revenues -- Unexpended revenues lapse into
345 the General Fund.
346 (1) As used in this section:
347 (a) "Emergency medical services" is as defined in Section 26-8a-102 .
348 (b) "Federally qualified health center" is as defined in 42 U.S.C. Sec. 1395x.
349 (c) "Fiscal year" means a one-year period beginning on July 1 of each year.
350 (d) "Freestanding urgent care center" is as defined in Section 59-12-801 .
351 (e) "Fund" means the Rural Health Care Facilities Fund created by this section.
352 (f) "Nursing care facility" is as defined in Section 26-21-2 .
353 (g) "Rural city hospital" is as defined in Section 59-12-801 .
354 (h) "Rural county health care facility" is as defined in Section 59-12-801 .
355 (i) "Rural county hospital" is as defined in Section 59-12-801 .
356 (j) "Rural county nursing care facility" is as defined in Section 59-12-801 .
357 (k) "Rural emergency medical services" is as defined in Section 59-12-801 .
358 (l) "Rural health clinic" is as defined in 42 U.S.C. Sec. 1395x.
359 (2) There is created a [
360 known as the Rural Health Care Facilities Fund.
361 (3) (a) The fund shall be funded by amounts appropriated by the Legislature.
362 (b) Any interest earned on the fund shall be deposited into the General Fund.
363 (4) Subject to Subsection (5), the State Tax Commission shall for a fiscal year
364 distribute monies deposited into the fund to each:
365 (a) county legislative body of a county that, on January 1, 2007, imposes a tax in
366 accordance with Section 59-12-802 ; or
367 (b) city legislative body of a city that, on January 1, 2007, imposes a tax in accordance
368 with Section 59-12-804 .
369 (5) (a) For purposes of the distribution required by Subsection (4), the State Tax
370 Commission shall:
371 (i) estimate for each county and city described in Subsection (4) the amount by which
372 the revenues collected from the taxes imposed under Sections 59-12-802 and 59-12-804 for
373 fiscal year 2005-06 would have been reduced had:
374 (A) the amendments made by Laws of Utah 2007, Chapter 288, Sections 25 and 26, to
375 Sections 59-12-802 and 59-12-804 been in effect for fiscal year 2005-06; and
376 (B) each county and city described in Subsection (4) imposed the tax under Sections
377 59-12-802 and 59-12-804 for the entire fiscal year 2005-06;
378 (ii) calculate a percentage for each county and city described in Subsection (4) by
379 dividing the amount estimated for each county and city in accordance with Subsection
380 (5)(a)(i) by $555,000; and
381 (iii) distribute to each county and city described in Subsection (4) an amount equal to
382 the product of:
383 (A) the percentage calculated in accordance with Subsection (5)(a)(ii); and
384 (B) the amount appropriated by the Legislature to the fund for the fiscal year.
385 (b) The State Tax Commission shall make the estimations, calculations, and
386 distributions required by Subsection (5)(a) on the basis of data collected by the State Tax
387 Commission.
388 (6) (a) Subject to Subsection (6)(b), a county legislative body shall distribute the
389 monies the county legislative body receives in accordance with Subsection (5):
390 (i) for a county of the third, fourth, or fifth class, to fund rural county health care
391 facilities in that county; and
392 (ii) for a county of the sixth class, to fund:
393 (A) emergency medical services in that county;
394 (B) federally qualified health centers in that county;
395 (C) freestanding urgent care centers in that county;
396 (D) rural county health care facilities in that county;
397 (E) rural health clinics in that county; or
398 (F) a combination of Subsections (6)(a)(ii)(A) through (E).
399 (b) A county legislative body shall distribute a percentage of the monies the county
400 legislative body receives in accordance with Subsection (5) to each center, clinic, facility, or
401 service described in Subsection (6)(a) equal to the same percentage that the county legislative
402 body distributes to that center, clinic, facility, or service in accordance with Section 59-12-803
403 for the calendar year ending on the December 31 immediately preceding the first day of the
404 fiscal year for which the county legislative body receives the distribution in accordance with
405 Subsection (5).
406 (c) A center, clinic, facility, or service that receives a distribution in accordance with
407 this Subsection (6) shall expend that distribution for the same purposes for which monies
408 generated by a tax under Section 59-12-802 may be expended.
409 (7) (a) Subject to Subsection (7)(b), a city legislative body shall distribute the monies
410 the city legislative body receives in accordance with Subsection (5) to fund rural city hospitals
411 in that city.
412 (b) A city legislative body shall distribute a percentage of the monies the city
413 legislative body receives in accordance with Subsection (5) to each rural city hospital
414 described in Subsection (7)(a) equal to the same percentage that the city legislative body
415 distributes to that rural city hospital in accordance with Section 59-12-805 for the calendar
416 year ending on the December 31 immediately preceding the first day of the fiscal year for
417 which the city legislative body receives the distribution in accordance with Subsection (5).
418 (c) A rural city hospital that receives a distribution in accordance with this Subsection
419 (7) shall expend that distribution for the same purposes for which monies generated by a tax
420 under Section 59-12-804 may be expended.
421 (8) Any monies remaining in the Rural Health Care Facilities Fund at the end of a
422 fiscal year after the State Tax Commission makes the distributions required by this section
423 shall lapse into the General Fund.
424 Section 9. Section 31A-3-103 is amended to read:
425 31A-3-103. Fees.
426 (1) For purposes of this section:
427 [
428 [
429 commissioner to perform the duties imposed by this title including:
430 (i) issuing and renewing licenses and certificates of authority;
431 (ii) filing policy forms;
432 (iii) reporting agent appointments and terminations; and
433 (iv) filing annual statements.
434 [
435 than once each year.
436 (2) [
437 Section 63J-1-303 .
438 [
439 [
440
441 [
442 [
443
444 [
445
446
447 [
448 [
449 [
450 [
451 [
452 (3) (a) A fee approved by the Legislature pursuant to this [
453 be deposited into the General Fund for appropriation by the Legislature.
454 [
455 that relates to the use of electronic or other similar technology to provide the services of the
456 department shall be deposited into the General Fund as a dedicated credit to be used by the
457 department to provide services through use of electronic commerce or other similar
458 technology.
459 (4) The commissioner shall separately publish the schedule of fees approved by the
460 Legislature and make it available upon request for $1 per copy. This fee schedule shall also be
461 included in any compilation of rules promulgated by the commissioner.
462 (5) The commissioner shall, by rule, establish the deadlines for payment of any fee
463 established by the department in accordance with this section.
464 Section 10. Section 38-11-201 is amended to read:
465 38-11-201. Residence Lien Recovery Fund.
466 (1) There is created a restricted special revenue fund called the "Residence Lien
467 Recovery Fund."
468 (2) (a) The fund consists of all amounts collected by the division in accordance with
469 Section 38-11-202 .
470 (b) (i) The division shall deposit the funds in an account with the state treasurer.
471 (ii) The division shall record the funds in the Residence Lien Recovery Fund.
472 (c) The fund shall earn interest.
473 (3) The division shall employ personnel and resources necessary to administer the
474 fund and shall use fund monies in accordance with Sections 38-11-203 and 38-11-204 and to
475 pay the costs charged to the fund by the attorney general.
476 (4) Costs incurred by the division for administering the fund shall be paid out of fund
477 monies.
478 (5) The Division of Finance shall report annually to the Legislature, the division, and
479 the board. The report shall state:
480 (a) amounts received by the fund;
481 (b) disbursements from the fund;
482 (c) interest earned and credited to the fund; and
483 (d) the fund balance.
484 (6) (a) For purposes of establishing and assessing [
485
486 for fiscal year 1995-96.
487 (b) The department shall submit its fee schedule to the Legislature for its approval at
488 the 1996 Annual General Session.
489 Section 11. Section 53-2-404 is amended to read:
490 53-2-404. State costs for emergency disaster services.
491 (1) Subject to this section and Section 53-2-403 , the division shall use monies
492 described in Subsection 53-2-403 (1)[
493 services.
494 (2) Monies paid by the division under this section to government entities and private
495 persons providing emergency disaster services are subject to Title 63G, Chapter 6, Utah
496 Procurement Code.
497 Section 12. Section 63J-1-102 is enacted to read:
498
499
500 63J-1-102. Definitions.
501 (1) "Dedicated credits" means collections by an agency that are deposited directly into
502 an account for expenditure on a separate line item and program.
503 (2) "Federal revenues" means collections by an agency from a federal source that are
504 deposited into an account for expenditure on a separate line item and program.
505 (3) "Fixed collections" means collections that are:
506 (a) fixed at a specific amount by law or by an appropriation act; and
507 (b) required to be deposited into a separate line item and program.
508 (4) "Free revenue" includes:
509 (a) collections that are required by law to be deposited in:
510 (i) the General Fund;
511 (ii) the Education Fund;
512 (iii) the Uniform School Fund; or
513 (iv) the Transportation Fund;
514 (b) collections that are not otherwise designated by law;
515 (c) collections that are not externally restricted; and
516 (d) collections that are not included in an approved work program.
517 (5) "Major revenue types" means:
518 (a) free revenue;
519 (b) restricted revenue;
520 (c) dedicated credits; and
521 (d) fixed collections.
522 (6) "Restricted revenue" means collections that are:
523 (a) deposited, by law, into a separate fund, subfund, or account; and
524 (b) designated for a specific program or purpose.
525 Section 13. Section 63J-1-104 , which is renumbered from Section 63J-1-404 is
526 renumbered and amended to read:
527 [
528 credited by a state agency.
529 [
530
531 [
532 (i) account for revenues in accordance with generally accepted accounting principles;
533 and
534 (ii) use the major revenue types in internal accounting.
535 [
536 (i) use the major revenue types [
537 (ii) deposit revenues and other public funds received by them by following the
538 procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
539 (iii) expend revenues and public funds as required by this chapter.
540 [
541 [
542 [
543 [
544 [
545 [
546 [
547
548 [
549 [
550 [
551 [
552 [
553 appropriated by the Legislature.
554 [
555 remain unexpended at the end of the fiscal year lapse to the source fund unless the Legislature
556 provides by law that those funds are nonlapsing.
557 [
558
559 [
560 [
561 the specific purpose or program designated by law.
562 [
563 appropriated from it by the Legislature, the Division of Finance may reduce the appropriation
564 to a level that ensures that the fund equity is not less than zero.
565 [
566 that remain unexpended at the end of the fiscal year lapse to the restricted fund unless the
567 Legislature provides by law that those funds, or the program or line item financed by those
568 funds, are nonlapsing.
569 [
570
571 [
572 program or line item.
573 [
574 (b) (i) Except as provided in Subsection (4)(b)(ii), an agency may not expend
575 dedicated credits in excess of the amount appropriated as dedicated credits by the Legislature
576 [
577 [
578 (ii) In order to expend dedicated credits in excess of the amount appropriated as
579 dedicated credits by the Legislature, the following procedure shall be followed:
580 (A) The agency seeking to make the excess expenditure shall:
581 (I) develop a new work program [
582
583
584
585
586
587
588 (Aa) consists of the currently approved work program and the excess expenditure
589 sought to be made; and
590 (Bb) complies with the requirements of Section 63J-2-202 ;
591 (II) prepare a written justification for the new work program that sets forth the purpose
592 and necessity of the excess expenditure; and
593 (III) submit the new work program and the written justification for the new work
594 program to the Division of Finance.
595 [
596
597
598 information available to the Governor's Office of Planning and Budget and the legislative
599 fiscal analyst.
600 [
601
602 [
603
604 (iii) An expenditure of dedicated credits in excess of amounts appropriated as
605 dedicated credits by the Legislature may not be used to permanently increase personnel within
606 the agency unless:
607 (A) the increase is approved by the Legislature; or
608 (B) the monies are deposited as dedicated credits in:
609 (I) the Drug Stamp Tax Fund under Section 59-19-105 ; or
610 (II) a line item covering tuition or federal vocational funds at an institution of higher
611 education.
612 [
613 fiscal year unless the Legislature has designated the entire program or line item that is partially
614 or fully funded from dedicated credits as nonlapsing.
615 (ii) The Division of Finance shall determine the appropriate fund into which the
616 dedicated credits lapse.
617 [
618 [
619 [
620 [
621 collections that an agency may expend.
622 [
623 collections established by law, the agency's authority to expend is limited to the amount of
624 fixed collections that it receives.
625 [
626 expendable fixed collections established by law, those excess amounts lapse to the General
627 Fund, the Education Fund, the Uniform School Fund, or the Transportation Fund as
628 designated by the director of the Division of Finance at the end of the fiscal year.
629 [
630 program or line item that is funded by more than one major revenue type[
631 (a) the agency shall expend its dedicated credits and fixed collections first[
632 (b) [
633
634 both free revenue and restricted revenue, an agency shall expend those [
635 based upon a proration of the amounts appropriated from each of those major revenue types.
636 Section 14. Section 63J-1-201 is amended to read:
637
638 63J-1-201. Governor to submit budget to Legislature -- Contents -- Preparation
639 -- Appropriations based on current tax laws and not to exceed estimated revenues.
640 (1) The governor shall deliver, not later than 30 days before the date the Legislature
641 convenes in the annual general session, a confidential draft copy of the governor's proposed
642 budget recommendations to the Office of the Legislative Fiscal Analyst.
643 [
644 days of the annual general session of the Legislature [
645
646 Legislature [
647 (i) a proposed budget for the ensuing fiscal year;
648 (ii) a schedule for all of the proposed appropriations of the budget, with each
649 appropriation clearly itemized and classified[
650 (iii) the statement described in Subsection (2)(c); and
651 (iv) as applicable, a document showing proposed expenditures and estimated revenues
652 that are based on changes in state tax laws or rates.
653 (b) The proposed budget [
654 (i) a projection of estimated revenues and expenditures for the next fiscal year; [
655 (ii) the source of all direct, indirect, [
656 grants or assistance programs included in the budget[
657 [
658
659
660 [
661 (iii) a complete plan of proposed expenditures and estimated revenues for the next
662 fiscal year that is based upon the current fiscal year state tax laws and rates[
663 [
664
665 (iv) an itemized estimate of the proposed appropriations for:
666 (A) the Legislative Department as certified to the governor by the president of the
667 Senate and the speaker of the House;
668 (B) the Executive Department;
669 (C) the Judicial Department as certified to the governor by the state court
670 administrator;
671 (D) payment and discharge of the principal and interest of the indebtedness of the
672 state;
673 (E) the salaries payable by the state under the Utah Constitution or under law for the
674 lease agreements planned for the next fiscal year;
675 (F) other purposes that are set forth in the Utah Constitution or under law; and
676 (G) all other appropriations;
677 (v) for each line item, the average annual dollar amount of staff funding associated
678 with all positions that were vacant during the last fiscal year; and
679 (vi) deficits or anticipated deficits.
680 [
681 [
682 [
683 and funds of the state;
684 [
685 of the period covered by the budget;
686 [
687 into by state agencies;
688 [
689 the next fiscal year[
690
691 63A-5-103 (2);
692 [
693 features of the budget and any suggestion as to methods for the reduction of expenditures or
694 increase of the state's revenue; and
695 [
696 Section [
697 [
698 [
699
700 [
701 [
702
703 [
704
705 [
706
707 [
708 [
709 [
710 [
711 governor shall require [
712 education officials, all heads of executive and administrative departments and state
713 institutions, bureaus, boards, commissions, and agencies expending or supervising the
714 expenditure of the state [
715 monies and appropriations, to provide itemized estimates of revenues and expenditures.
716 (ii) [
717 at times as the governor may direct[
718 for program productivity and performance measures, where appropriate, with emphasis on
719 outcome indicators.
720 [
721
722 [
723
724
725 [
726 representatives of public and higher education, state departments and institutions, and other
727 institutions or individuals applying for state appropriations to attend budget meetings.
728 (c) (i) (A) In submitting the budgets for the Departments of Health and Human
729 Services and the Office of the Attorney General, the governor shall consider a separate
730 recommendation in the governor's budget for funds to be contracted to:
731 (I) local mental health authorities under Section 62A-15-110 ;
732 (II) local substance abuse authorities under Section 62A-15-110 ;
733 (III) area agencies under Section 62A-3-104.2 ;
734 (IV) programs administered directly by and for operation of the Divisions of
735 Substance Abuse and Mental Health and Aging and Adult Services;
736 (V) local health departments under Title 26A, Chapter 1, Local Health Departments;
737 and
738 (VI) counties for the operation of Children's Justice Centers under Section 67-5b-102 .
739 (B) In the governor's budget recommendations under Subsections (3)(c)(i)(A)(I), (II),
740 and (III), the governor shall consider an amount sufficient to grant local health departments,
741 local mental health authorities, local substance abuse authorities, and area agencies the same
742 percentage increase for wages and benefits that the governor includes in the governor's budget
743 for persons employed by the state.
744 (C) If the governor does not include in the governor's budget an amount sufficient to
745 grant the increase described in Subsection (3)(c)(i)(B), the governor shall include a message to
746 the Legislature regarding the governor's reason for not including that amount.
747 (ii) (A) In submitting the budget for the Department of Agriculture, the governor shall
748 consider an amount sufficient to grant local conservation districts and Utah Association of
749 Conservation District employees the same percentage increase for wages and benefits that the
750 governor includes in the governor's budget for persons employed by the state.
751 (B) If the governor does not include in the governor's budget an amount sufficient to
752 grant the increase described in Subsection (3)(c)(ii)(A), the governor shall include a message
753 to the Legislature regarding the governor's reason for not including that amount.
754 (iii) (A) In submitting the budget for the Utah State Office of Rehabilitation and the
755 Division of Services for People with Disabilities, the Division of Child and Family Services,
756 and the Division of Juvenile Justice Services within the Department of Human Services, the
757 governor shall consider an amount sufficient to grant employees of corporations that provide
758 direct services under contract with those divisions, the same percentage increase for
759 cost-of-living that the governor includes in the governor's budget for persons employed by the
760 state.
761 (B) If the governor does not include in the governor's budget an amount sufficient to
762 grant the increase described in Subsection (3)(c)(iii)(A), the governor shall include a message
763 to the Legislature regarding the governor's reason for not including that amount.
764 (iv) (A) The Families, Agencies, and Communities Together Council may propose a
765 budget recommendation to the governor for collaborative service delivery systems operated
766 under Section 63M-9-402 , as provided under Subsection 63M-9-201 (4)(e).
767 (B) The Legislature may, through a specific program schedule, designate funds
768 appropriated for collaborative service delivery systems operated under Section 63M-9-402 .
769 (v) The governor shall include in the governor's budget the state's portion of the
770 budget for the Utah Communications Agency Network established in Title 63C, Chapter 7,
771 Utah Communications Agency Network Act.
772 (vi) (A) The governor shall include a separate recommendation in the governor's
773 budget for funds to maintain the operation and administration of the Utah Comprehensive
774 Health Insurance Pool.
775 (B) In making the recommendation, the governor may consider:
776 (I) actuarial analysis of growth or decline in enrollment projected over a period of at
777 least three years;
778 (II) actuarial analysis of the medical and pharmacy claims costs projected over a
779 period of at least three years;
780 (III) the annual Medical Care Consumer Price Index;
781 (IV) the annual base budget for the pool established by the Commerce and Revenue
782 Appropriations Subcommittee for each fiscal year;
783 (V) the growth or decline in insurance premium taxes and fees collected by the State
784 Tax Commission and the Insurance Department; and
785 (VI) the availability of surplus General Fund revenue under Section 63J-1-312 and
786 Subsection 59-14-204 (5)(b).
787 [
788 Legislative Department, the Judicial Department, and those providing for the payment of
789 principal and interest to the state debt and for the salaries and expenditures specified by the
790 Utah Constitution or under the laws of the state.
791 (ii) The estimate for the Legislative Department, as certified by the presiding officers
792 of both houses, shall be included in the budget without revision by the governor.
793 (iii) The estimate for the Judicial Department, as certified by the state court
794 administrator, shall also be included in the budget without revision, but the governor may
795 make separate recommendations on the estimate.
796 [
797 may not exceed the estimated revenues from taxes, fees, and all other sources for the next
798 ensuing fiscal year.
799 [
800
801 [
802
803
804 [
805 [
806 [
807 [
808
809 [
810
811 [
812
813 [
814
815
816
817
818 [
819
820
821 [
822
823
824
825 [
826
827
828 [
829
830
831
832
833
834
835 [
836
837
838 [
839
840
841 [
842
843 [
844
845
846 [
847
848
849 [
850 [
851
852 [
853
854 [
855 [
856
857 [
858
859 [
860
861 (4) In considering the factors in Subsections (3)(c)(vi)(B)(I), (II), and (III) and
862 Subsections (5)(b)(ii)(A), (B), and (C), the governor and the Legislature may consider the
863 actuarial data and projections prepared for the board of the Utah Comprehensive Health
864 Insurance Pool as it develops its financial statements and projections for each fiscal year.
865 [
866 an amount sufficient to grant local health departments, local mental health authorities, local
867 substance abuse authorities, area agencies on aging, conservation districts, and Utah
868 Association of Conservation District employees the same percentage increase for wages and
869 benefits that is included in the budget for persons employed by the state.
870 [
871 Insurance Pool, the Legislature shall determine an amount that is sufficient to fund the pool for
872 each fiscal year.
873 [
874 Legislature shall consider factors it determines are appropriate, which may include:
875 [
876 of at least three years;
877 [
878 period of at least three years;
879 [
880 [
881 Revenue Appropriations Subcommittee for each fiscal year;
882 [
883 tax commission and the insurance department from the previous fiscal year; and
884 [
885 63J-1-312 and Subsection 59-14-204 (5)(b).
886 [
887 Health Insurance Pool as determined under Subsection [
888 [
889 31A-29-120 ; and
890 [
891 and management of the Utah Comprehensive Health Insurance Pool created by Section
892 31A-29-104 .
893 [
894
895
896
897 [
898
899 (6) If any item of the budget as enacted is held invalid upon any ground, the invalidity
900 does not affect the budget itself or any other item in it.
901 Section 15. Section 63J-1-206 , which is renumbered from Section 63J-1-301 is
902 renumbered and amended to read:
903 [
904 Restrictions on expenditures -- Transfer of funds -- Exclusion.
905 (1) As used in this section, "work program" means a budget that contains revenues and
906 expenditures for specific purposes or functions within an item of appropriation.
907 (2) (a) Except as provided in Subsection (2)(b), (3)(e), or where expressly exempted in
908 the appropriating act:
909 [
910 the terms and conditions set forth in this chapter[
911 (ii) any department, agency, or institution[
912
913
914 requirements of this chapter.
915 [
916
917
918
919 (b) This section does not apply to:
920 (i) the Legislature and its committees; and
921 (ii) the Investigation Account of the Water Resources Construction Fund, which is
922 governed by Section 73-10-8 .
923 (3) (a) Each appropriation item is to be expended subject to any schedule of programs
924 and any restriction attached to the appropriation item, as designated by the Legislature.
925 (b) Each schedule of programs or restriction attached to an appropriation item:
926 (i) is a restriction or limitation upon the expenditure of the respective appropriation
927 made;
928 (ii) does not itself appropriate any money; and
929 (iii) is not itself an item of appropriation.
930 (c) An appropriation or any surplus of any appropriation may not be diverted from any
931 department, agency, institution, or division to any other department, agency, institution, or
932 division.
933 (d) The money appropriated subject to a schedule or programs or restriction may be
934 used only for the purposes authorized.
935 (e) [
936
937
938 appropriation, the [
939 following procedure shall be followed:
940 (i) The department, agency, or institution seeking to make the transfer shall prepare:
941 (A) a new work program [
942 consists of the currently approved work program and the transfer sought to be made; and
943 (B) a written justification for the new work program that sets forth the purpose and
944 necessity for [
945 [
946
947 [
948
949 (ii) The Division of Finance shall process the new work program with written
950 justification and make this information available to the Governor's Office of Planning and
951 Budget and the legislative fiscal analyst.
952 (f) Monies may not be transferred from one item of appropriation to any other item of
953 appropriation.
954 [
955
956
957 Section 16. Section 63J-1-209 , which is renumbered from Section 63J-1-406 is
958 renumbered and amended to read:
959 [
960 control -- Work programs -- Allotments and expenditures.
961 (1) The director of finance shall exercise accounting control over all state departments,
962 institutions, and agencies other than the Legislature and legislative committees.
963 (2) (a) The director shall require the head of each department to submit, by May 15 of
964 each year, a work program for the next fiscal year.
965 (b) The director may require any department to submit a work program for any other
966 period.
967 (3) The work program shall include appropriations and all other funds from any source
968 made available to the department for its operation and maintenance for the period and program
969 authorized by the appropriation act.
970 (4) [
971 63J-1-206 (3)(e), the Division of Finance shall, upon request from the governor, revise, alter,
972 decrease, or change work programs.
973 (5) Notwithstanding the requirements of Title 63J, Chapter 2, Revenue Procedures and
974 Control Act, the aggregate of the work program changes may not exceed the total
975 appropriations or other funds from any source that are available to the department line item for
976 the fiscal year in question.
977 (6) The [
978 when approved by the governor, to:
979 (a) the head of the department concerned; and [
980 (b) the legislative analyst.
981 (7) Upon request, review, and approval by the governor, the [
982 Division of Finance shall permit all expenditures to be made from the appropriations or other
983 funds from any source on the basis of those work programs.
984 [
985
986
987 [
988
989 (8) The Division of Finance shall, through statistical sampling methods or other
990 means, audit all claims against the state for which an appropriation has been made.
991 [
992
993
994 Section 17. Section 63J-1-215 , which is renumbered from Section 63J-1-311 is
995 renumbered and amended to read:
996 [
997 Preference for purchasing card accounts -- Cash advances -- Revolving fund established
998 by law excepted -- Elimination of cash funds.
999 (1) Before any new petty cash funds may be established, the commission, department,
1000 or agency requesting the fund or funds shall apply in writing to the [
1001
1002 (a) the reasons [
1003 (b) the amount requested[
1004 (c) the reasons why a purchasing card account is not sufficient to meet the needs of the
1005 commission, department, or agency.
1006 [
1007
1008
1009 [
1010
1011
1012
1013
1014
1015 (2) (a) The Division of Finance shall review the application and make a determination
1016 that:
1017 (i) no cash fund or purchasing card account should be established;
1018 (ii) a purchasing card account should be established; or
1019 (iii) a cash fund should be established using monies in the state treasury.
1020 (b) When making a determination under Subsection (2)(a), the Division of Finance
1021 shall recommend a purchasing card account in lieu of a cash fund unless there is significant
1022 evidence that a purchasing account is not sufficient to meet the needs of the commission,
1023 department, or agency.
1024 [
1025 section.
1026 (4) The Division of Finance is authorized to review and close cash funds if the
1027 division determines that a purchasing card account will adequately meet the needs of the
1028 commission, department, or agency.
1029 Section 18. Section 63J-1-217 , which is renumbered from Section 63J-1-405 is
1030 renumbered and amended to read:
1031 [
1032 Prorating budget income shortfall.
1033 (1) [
1034 Expenditures of departments, agencies, and institutions of state government shall be kept
1035 within revenues available for such expenditures.
1036 (2) (a) [
1037 overexpended.
1038 (b) [
1039 the close of a fiscal year:
1040 (i) the director of the Division of Finance may make payments from the line item to
1041 vendors for goods or services that were received on or before June 30; and
1042 (ii) the director of the Division of Finance shall immediately reduce the agency's line
1043 item budget in the current year by the amount of the overexpenditure.
1044 (c) Each agency with an overexpended line item shall [
1045 (i) prepare a written report explaining the reasons for the overexpenditure; and [
1046 (ii) present the report to:
1047 (A) the Board of Examiners as required by Section 63G-9-301 [
1048 [
1049
1050
1051
1052 (B) the Office of the Legislative Fiscal Analyst.
1053 (3) (a) As used in this Subsection (3):
1054 (i) "Education Fund budget deficit" has the same meaning as in Section 63J-1-312 ;
1055 and
1056 (ii) "General Fund budget deficit" has the same meaning as in Section 63J-1-312 .
1057 (b) If an Education Fund budget deficit or a General Fund budget deficit exists and the
1058 adopted estimated revenues were prepared in consensus with the Governor's Office of
1059 Planning and Budget, the governor shall:
1060 (i) direct state agencies to reduce commitments and expenditures by an amount
1061 proportionate to the amount of the deficiency; and
1062 (ii) direct the Division of Finance to reduce allotments to institutions of higher
1063 education by an amount proportionate to the amount of the deficiency.
1064 (c) The governor's directions under Subsection (3)(b) are rescinded when the
1065 Legislature rectifies the Education Fund budget deficit and the General Fund budget deficit.
1066 (4) (a) [
1067
1068 revenue within the work program of the fiscal year, unless the governor allocates [
1069 monies from the governor's emergency appropriations.
1070 (b) All allocations made from the governor's emergency appropriations shall be
1071 reported to the budget subcommittee of the Legislative Management Committee by notifying
1072 the Office of the Legislative Fiscal Analyst at least 15 days before the effective date of the
1073 allocation.
1074 (c) Emergency appropriations shall be allocated only to support activities having
1075 existing legislative approval and appropriation, and may not be allocated to any activity or
1076 function rejected directly or indirectly by the Legislature.
1077 Section 19. Section 63J-1-504 , which is renumbered from Section 63J-1-303 is
1078 renumbered and amended to read:
1079 [
1080 Establishing and assessing fees without legislative approval.
1081 (1) As used in this section:
1082 (a) (i) "Agency" means each department, commission, board, council, agency,
1083 institution, officer, corporation, fund, division, office, committee, authority, laboratory,
1084 library, unit, bureau, panel, or other administrative unit of the state.
1085 (ii) "Agency" does not mean the Legislature or its committees.
1086 (b) "Fee agency" means any agency that is authorized to establish [
1087 (c) "Fee schedule" means the complete list of [
1088 and the amount of those fees.
1089 [
1090
1091 (2) Each fee agency shall:
1092 (a) adopt a schedule of fees assessed for services provided by the fee agency that are:
1093 (i) reasonable, fair, and reflect the cost of services provided; and
1094 (ii) established according to a cost formula determined by the director of the
1095 Governor's Office of Planning and Budget and the director of the Division of Finance in
1096 conjunction with the agency seeking to establish the [
1097 [
1098 (b) (i) present each proposed fee at a public hearing, subject to the requirements of
1099 Title 52, Chapter 4, Open and Public Meetings Act; and
1100 (ii) increase [
1101 on the results of the public hearing;
1102 (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as
1103 part of the agency's annual appropriations request; and
1104 (d) where necessary, modify the fee schedule to implement the Legislature's actions[
1105
1106 [
1107 (3) A fee agency may not:
1108 (a) set [
1109 (b) charge or collect any [
1110 the fee agency has complied with the procedures and requirements of Subsection (5).
1111 (4) The Legislature may approve, increase or decrease and approve, or reject any
1112 [
1113 (5) (a) After the public hearing required by this section, a fee agency may establish
1114 and assess [
1115 (i) the Legislature creates a new program that is to be funded by [
1116 set by the Legislature; and
1117 (ii) the new program's effective date is before the Legislature's next annual general
1118 session; or
1119 (iii) the Division of Occupational and Professional licensing makes a special
1120 assessment against qualified beneficiaries under the Residence Lien Restriction and Lien
1121 Recovery Fund Act as provided in Subsection 38-11-206 (1).
1122 (b) Each fee agency shall submit its fee schedule or special assessment amount to the
1123 Legislature for its approval at a special session, if allowed in the governor's call, or at the next
1124 annual general session of the Legislature, whichever is sooner.
1125 (c) Unless the fee schedule is approved by the Legislature, the fee agency may not
1126 collect a [
1127 general session following the session that established the new program.
1128 (6) (a) Each fee agency that wishes to increase any [
1129 shall obtain legislative approval for the fee increase as provided in this subsection before
1130 assessing the new [
1131 (b) Each fee agency that wishes to increase any [
1132 submit to the governor as part of the agency's annual appropriation request a list that
1133 identifies:
1134 (i) the title or purpose of the [
1135 (ii) the present amount of the [
1136 (iii) the proposed new amount of the [
1137 (iv) the percent that the [
1138 the higher fee; and
1139 (v) the reason for the increase in the [
1140 (c) (i) The governor may review and approve, modify and approve, or reject the
1141 [
1142 (ii) The governor shall transmit the list required by Subsection (6)(b), with any
1143 modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
1144 (d) Bills approving any [
1145 the beginning of the Legislature's annual general session, if possible.
1146 Section 20. Section 63J-1-601 , which is renumbered from Section 63J-1-401 is
1147 renumbered and amended to read:
1148 [
1149 Funds not to be closed out -- Pending claims -- Transfer of amounts from item of
1150 appropriation -- Nonlapsing accounts and funds -- Institutes of higher education to
1151 report unexpended balances.
1152 (1) As used in this section, "transaction control number" means the unique numerical
1153 identifier established by the Department of Health to track each medical claim, which
1154 indicates the date upon which the claim is entered.
1155 (2) On or before August 31 of each fiscal year, the director of the Division of Finance
1156 shall close out to the proper fund or account all remaining unexpended and unencumbered
1157 balances of appropriations made by the Legislature, except:
1158 (a) those funds classified under Title 51, Chapter 5, Funds Consolidation Act as:
1159 (i) enterprise funds;
1160 (ii) internal service funds;
1161 (iii) trust and agency funds;
1162 (iv) capital projects funds;
1163 [
1164 (v) discrete component unit funds;
1165 (vi) debt service funds; and
1166 (vii) permanent funds;
1167 [
1168 (b) those revenue collections, appropriations from a fund or account, or appropriations
1169 to a program that are designated as nonlapsing under Section 63J-1-602 ;
1170 (c) restricted special revenue funds, unless specifically directed to close out the fund in
1171 the fund's enabling legislation;
1172 (d) acquisition and development funds appropriated to the Division of Parks and
1173 Recreation;
1174 (e) funds encumbered to pay purchase orders issued prior to May 1 for capital
1175 equipment if delivery is expected before June 30; and
1176 (f) unexpended and unencumbered balances of appropriations that meet the
1177 requirements of Section [
1178 [
1179 (3) (a) Liabilities and related expenses for goods and services received on or before
1180 June 30 shall be recognized as expenses due and payable from appropriations made prior to
1181 June 30.
1182 (b) The liability and related expense shall be recognized within time periods
1183 established by the Division of Finance but shall be recognized not later than August 31.
1184 (c) Liabilities and expenses not so recognized may be paid from regular departmental
1185 appropriations for the subsequent fiscal year, if these claims do not exceed unexpended and
1186 unencumbered balances of appropriations for the years in which the obligation was incurred.
1187 (d) No amounts may be transferred from an item of appropriation of any department,
1188 institution, or agency into the Capital Projects Fund or any other fund without the prior
1189 express approval of the Legislature.
1190 (4) (a) For purposes of this chapter, claims processed under the authority of Title 26,
1191 Chapter 18, Medical Assistance Act:
1192 (i) may not be considered a liability or expense to the state for budgetary purposes
1193 unless they are received by the Division of Health Care Financing within the time periods
1194 established by the Division of Finance under Subsection (3)(b); and
1195 (ii) are not subject to the requirements of Subsection (3)(c).
1196 (b) The transaction control number recorded on each claim invoice by the division is
1197 considered the date of receipt.
1198 (5) Any balance from an appropriation to a state institution of higher education that
1199 remains unexpended at the end of the fiscal year shall be reported to the Division of Finance
1200 by the September 1 following the close of the fiscal year.
1201 Section 21. Section 63J-1-602 is enacted to read:
1202 63J-1-602. Nonlapsing accounts and funds.
1203 (1) The following revenue collections, appropriations from a fund or account, and
1204 appropriations to a program are nonlapsing:
1205 (a) appropriations made to the Legislature and its committees;
1206 (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
1207 (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
1208 (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
1209 (e) funds collected by pesticide dealer license registration fees, as provided in Section
1210 4-14-3 ;
1211 (f) funds collected by pesticide applicator business registration fees, as provided in
1212 Section 4-14-13 ;
1213 (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
1214 (h) funds deposited as dedicated credits under the Insect Infestation Emergency
1215 Control Act, as provided in Section 4-35-6 ;
1216 (i) the Percent-for-Art Program created in Section 9-6-404 ;
1217 (j) the Centennial History Fund created in Section 9-8-604 ;
1218 (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;
1219 (l) the Navajo Revitalization Fund created in Section 9-11-104 ;
1220 (m) the LeRay McAllister Critical Land Conservation Program created in Section
1221 11-38-301 ;
1222 (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
1223 (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided
1224 in Section 19-6-120 ;
1225 (p) an appropriation made to the Division of Wildlife Resources for the appraisal and
1226 purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
1227 (q) award monies under the Crime Reduction Assistance Program, as provided under
1228 Section 24-1-19 ;
1229 (r) funds collected from the emergency medical services grant program, as provided in
1230 Section 26-8a-207 ;
1231 (s) fees and other funding available to purchase training equipment and to administer
1232 tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
1233 (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
1234 federal Social Security Act, as provided in Section 26-18-3 ;
1235 (u) the Utah Health Care Workforce Financial Assistance Program created in Section
1236 26-46-102 ;
1237 (v) monies collected from subscription fees for publications prepared or distributed by
1238 the insurance commissioner, as provided in Section 31A-2-208 ;
1239 (w) monies received by the Insurance Department for administering, investigating
1240 under, and enforcing the Insurance Fraud Act, as provided in Section 31A-31-108 ;
1241 (x) certain monies received for penalties paid under the Insurance Fraud Act, as
1242 provided in Section 31A-31-109 ;
1243 (y) the fund for operating the state's Federal Health Care Tax Credit Program, as
1244 provided in Section 31A-38-104 ;
1245 (z) certain funds in the Department of Workforce Services' program for the education,
1246 training, and transitional counseling of displaced homemakers, as provided in Section
1247 35A-3-114 ;
1248 (aa) the Employment Security Administration Fund created in Section 35A-4-505 ;
1249 (bb) the Special Administrative Expense Fund created in Section 35A-4-506 ;
1250 (cc) funding for a new program or agency that is designated as nonlapsing under
1251 Section 36-24-101 ;
1252 (dd) the Oil and Gas Conservation Account created in Section 40-6-14.5 ;
1253 (ee) funds available to the State Tax Commission for purchase and distribution of
1254 license plates and decals, as provided in Section 41-1a-1201 ;
1255 (ff) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
1256 provided in Section 41-1a-1221 ;
1257 (gg) certain fees collected for administering and enforcing the Motor Vehicle Business
1258 Regulation Act, as provided in Section 41-3-601 ;
1259 (hh) certain fees for the cost of electronic payments under the Motor Vehicle Business
1260 Regulation Act, as provided in Section 41-3-604 ;
1261 (ii) the Off-Highway Access and Education Restricted Account created in Section
1262 41-22-19.5 ;
1263 (jj) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
1264 provided in Section 41-22-36 ;
1265 (kk) monies collected under the Notaries Public Reform Act, as provided under
1266 46-1-23 ;
1267 (ll) certain funds associated with the Law Enforcement Operations Account, as
1268 provided in Section 51-9-411 ;
1269 (mm) the Public Safety Honoring Heroes Restricted Account created in Section
1270 53-1-118 ;
1271 (nn) funding for the Search and Rescue Financial Assistance Program, as provided in
1272 Section 53-2-107 ;
1273 (oo) appropriations made to the Department of Public Safety from the Department of
1274 Public Safety Restricted Account, as provided in Section 53-3-106 ;
1275 (pp) appropriations to the Motorcycle Rider Education Program, as provided in
1276 Section 53-3-905 ;
1277 (qq) fees collected by the State Fire Marshal Division under the Utah Fire Prevention
1278 and Safety Act, as provided in Section 53-7-314 ;
1279 (rr) the DNA Specimen Restricted Account created in Section 53-10-407 ;
1280 (ss) the minimum school program, as provided in Section 53A-17a-105 ;
1281 (tt) certain funds appropriated from the Uniform School Fund to the State Board of
1282 Education for new teacher bonus and performance-based compensation plans, as provided in
1283 Section 53A-17a-148 ;
1284 (uu) certain funds appropriated from the Uniform School Fund to the State Board of
1285 Education for implementation of proposals to improve mathematics achievement test scores,
1286 as provided in Section 53A-17a-152 ;
1287 (vv) the School Building Revolving Account created in Section 53A-21-401 ;
1288 (ww) monies received by the State Office of Rehabilitation for the sale of certain
1289 products or services, as provided in Section 53A-24-105 ;
1290 (xx) the State Board of Regents, as provided in Section 53B-6-104 ;
1291 (yy) certain funds appropriated from the General Fund to the State Board of Regents
1292 for teacher preparation programs, as provided in Section 53B-6-104 ;
1293 (zz) a certain portion of monies collected for administrative costs under the School
1294 Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
1295 (aaa) certain surcharges on residence and business telecommunications access lines
1296 imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
1297 (bbb) certain fines collected by the Division of Occupational and Professional
1298 Licensing for violation of unlawful or unprofessional conduct that are used for education and
1299 enforcement purposes, as provided in Section 58-17b-505 ;
1300 (ccc) the Nurse Education and Enforcement Fund created in Section 58-31b-103 ;
1301 (ddd) funding of the controlled substance database, as provided in Section 58-37-7.7 ;
1302 (eee) the Certified Nurse Midwife Education and Enforcement Fund created in Section
1303 58-44a-103 ;
1304 (fff) funding for the building inspector's education program, as provided in Section
1305 58-56-9 ;
1306 (ggg) certain fines collected by the Division of Occupational and Professional
1307 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
1308 provided in Section 58-63-103 ;
1309 (hhh) the Professional Geologist Education and Enforcement Fund created in Section
1310 58-76-103 ;
1311 (iii) certain monies in the Water Resources Conservation and Development Fund, as
1312 provided in Section 59-12-103 ;
1313 (jjj) funds paid to the Division of Real Estate for the cost of a criminal background
1314 check for broker and sales agent licenses, as provided in Section 61-2-9 ;
1315 (kkk) the Utah Housing Opportunity Restricted Account created in Section 61-2-28 ;
1316 (lll) funds paid to the Division of Real Estate for the cost of a criminal background
1317 check for a mortgage loan license, as provided in Section 61-2c-202 ;
1318 (mmm) funds paid to the Division of Real Estate in relation to examination of records
1319 in an investigation, as provided in Section 61-2c-401 ;
1320 (nnn) certain funds donated to the Department of Human Services, as provided in
1321 Section 62A-1-111 ;
1322 (ooo) certain funds donated to the Division of Child and Family Services, as provided
1323 in Section 62A-4a-110 ;
1324 (ppp) the Mental Health Therapist Grant and Scholarship Program, as provided in
1325 Section 62A-13-109 ;
1326 (qqq) assessments for DUI violations that are forwarded to an account created by a
1327 county treasurer, as provided in Section 62A-15-503 ;
1328 (rrr) appropriations to the Division of Services for People with Disabilities, as
1329 provided in Section 62A-5-102 ;
1330 (sss) certain donations to the Division of Substance Abuse and Mental Health, as
1331 provided in Section 62A-15-103 ;
1332 (ttt) certain funds received by the Division of Parks and Recreation from the sale or
1333 disposal of buffalo, as provided under Section 63-11-19.2 ;
1334 (uuu) revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
1335 Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
1336 (vvv) revenue for golf user fees at the Green River State Park, as provided under
1337 Section 63-11-19.6 ;
1338 (www) the Centennial Nonmotorized Paths and Trail Crossings Program created under
1339 Section 63-11a-503 ;
1340 (xxx) the Bonneville Shoreline Trail Program created under Section 63-11a-504 ;
1341 (yyy) the account for the Utah Geological Survey, as provided in Section 63-73-10 ;
1342 (zzz) the Risk Management Fund created under Section 63A-4-201 ;
1343 (aaaa) the Child Welfare Parental Defense Fund created in Section 63A-11-203 ;
1344 (bbbb) the Constitutional Defense Restricted Account created in Section 63C-4-103 ;
1345 (cccc) a portion of the funds appropriated to the Utah Seismic Safety Commission, as
1346 provided in Section 63C-6-104 ;
1347 (dddd) funding for the Medical Education Program administered by the Medical
1348 Education Council, as provided in Section 63C-8-102 ;
1349 (eeee) funds collected for publishing the Division of Administrative Rules'
1350 publications, as provided in Section 63G-3-402 ;
1351 (ffff) the appropriation to fund the Governor's Office of Economic Development's
1352 Enterprise Zone Act, as provided in Section 63M-1-416 ;
1353 (gggg) the Tourism Marketing Performance Account, as provided in Section
1354 63M-1-1406 ;
1355 (hhhh) certain funding for rural development provided to the Office of Rural
1356 Development in the Governor's Office of Economic Development, as provided in Section
1357 63M-1-1604 ;
1358 (iiii) certain monies in the Development for Disadvantaged Rural Communities
1359 Restricted Account, as provided in Section 63M-1-2003 ;
1360 (jjjj) certain monies in the Rural Broadband Service Fund, as provided in Section
1361 63M-1-2303 ;
1362 (kkkk) funds collected from monthly offender supervision fees, as provided in Section
1363 64-13-21.2 ;
1364 (llll) funds collected by the housing of state probationary inmates or state parole
1365 inmates, as provided in Subsection 64-13e-104 (2);
1366 (mmmm) the Sovereign Lands Management account created in Section 65A-5-1 ;
1367 (nnnn) certain forestry and fire control funds utilized by the Division of Forestry, Fire,
1368 and State Lands, as provided in Section 65A-8-103 ;
1369 (oooo) the Department of Human Resource Management user training program, as
1370 provided in Section 67-19-6 ;
1371 (pppp) funds for the University of Utah Poison Control Center program, as provided in
1372 Section 69-2-5.5 ;
1373 (qqqq) appropriations to the Transportation Corridor Preservation Revolving Loan
1374 Fund, as provided in Section 72-2-117 ;
1375 (rrrr) appropriations to the Local Transportation Corridor Preservation Fund, as
1376 provided in Section 72-2-117.5 ;
1377 (ssss) appropriations to the Tollway Restricted Special Revenue Fund, as provided in
1378 Section 77-2-120 ;
1379 (tttt) appropriations to the Aeronautics Construction Revolving Loan Fund, as
1380 provided in Section 77-2-122 ;
1381 (uuuu) appropriations to the State Park Access Highways Improvement Program, as
1382 provided in Section 72-3-207 ;
1383 (vvvv) the Traffic Noise Abatement Program created in Section 72-6-112 ;
1384 (wwww) certain funds received by the Office of the State Engineer for well drilling
1385 fines or bonds, as provided in Section 73-3-25 ;
1386 (xxxx) certain monies appropriated to increase the carrying capacity of the Jordan
1387 River that are transferred to the Division of Parks and Recreation, as provided in Section
1388 73-10e-1 ;
1389 (yyyy) certain fees for the cost of electronic payments under the State Boating Act, as
1390 provided in Section 73-18-25 ;
1391 (zzzz) certain monies appropriated from the Water Resources Conservation and
1392 Development Fund, as provided in Section 73-23-2 ;
1393 (aaaaa) the Lake Powell Pipeline Project Operation and Maintenance Fund created in
1394 Section 73-28-404 ;
1395 (bbbbb) certain funds in the Water Development and Flood Mitigation Reserve
1396 Account, as provided in Section 73-103-1 ;
1397 (ccccc) certain funds appropriated for compensation for special prosecutors, as
1398 provided in Section 77-10a-19 ;
1399 (ddddd) the Indigent Aggravated Murder Defense Trust Fund created in Section
1400 77-32-601 ;
1401 (eeeee) the Indigent Felony Defense Trust Fund created in Section 77-32-701 ;
1402 (fffff) funds donated or paid to a juvenile court by private sources, as provided in
1403 Subsection 78A-6-203 (c);
1404 (ggggg) a state rehabilitative employment program, as provided in Section 78A-6-210 ;
1405 and
1406 (hhhhh) fees from the issuance and renewal of licenses for certified court interpreters,
1407 as provided in Section 78B-1-146 .
1408 (2) No revenue collection, appropriation from a fund or account, or appropriation to a
1409 program may be treated as nonlapsing unless:
1410 (a) it is expressly referenced by this section;
1411 (b) it is designated in a condition of appropriation in the appropriations bill; or
1412 (c) nonlapsing authority is granted under Section 63J-1-603 .
1413 (3) Each legislative appropriations subcommittee shall review the accounts and funds
1414 that have been granted nonlapsing authority under this section or Section 63J-1-603 .
1415 Section 22. Section 63J-2-202 is amended to read:
1416 63J-2-202. Disposition of revenues -- Reporting of balances in dedicated credits
1417 and fixed collections.
1418 (1) (a) Each agency shall include in its annual budget request estimates of dedicated
1419 credits revenues and fixed collections revenues that are identified by, collected for, or set by
1420 the agency.
1421 (b) If the Legislature or the Division of Finance establishes a new revenue type by law,
1422 the agency shall include that new revenue type in its budget request for the next fiscal year.
1423 (c) (i) Except as provided in Subsection (1)(c)(ii), if any agency fails to include the
1424 estimates of a revenue type in its annual budget request, the Division of Finance shall deposit
1425 the monies collected in that revenue type into the General Fund or other appropriate fund as
1426 free or restricted revenue.
1427 (ii) The Division of Finance may not deposit the monies collected from a revenue type
1428 not included in an agency's annual budget request into the General Fund or other appropriate
1429 fund if the agency did not include the estimates of the revenue type in its annual budget
1430 request because the Legislature had not yet established or authorized the new revenue type by
1431 law.
1432 (2) (a) (i) Except as provided in Subsection (2)(b), each agency that receives dedicated
1433 credits and fixed collections revenues greater than the amount appropriated to them by the
1434 Legislature in the annual appropriations act may expend the excess up to 25% of the amount
1435 appropriated if the expenditure is authorized by an amended work program approved as
1436 provided in Section [
1437 dedicated credits in the Illegal Drug Stamp Tax Fund under Section 59-19-105 or line items
1438 covering tuition and federal vocational funds at institutions of higher learning, any
1439 expenditure of dedicated credits in excess of amounts appropriated by the Legislature may not
1440 be used to permanently increase personnel within the agency unless approved by the
1441 Legislature.
1442 (ii) The Division of Finance shall deposit the balance of that excess into the General
1443 Fund or other appropriate fund as free or restricted revenue.
1444 (b) Notwithstanding the requirements of Subsection (2)(a), when an agency's
1445 dedicated credits and fixed collections revenues represent over 90% of the budget of the
1446 program for which they are collected, the agency may expend 100% of the excess of the
1447 amount appropriated if the expenditure is authorized by an amended work program approved
1448 as provided in Section [
1449 (3) Each agency that receives dedicated credits or fixed collections shall report, to the
1450 Division of Finance, any balances remaining in those funds at the conclusion of each fiscal
1451 year.
1452 Section 23. Section 67-5-25 is amended to read:
1453 67-5-25. Litigation Fund for Highway Projects Account.
1454 (1) There is created within the General Fund a restricted account known as the
1455 Litigation Fund for Highway Projects Account.
1456 (2) The Litigation Fund for Highway Projects Account consists of:
1457 (a) appropriations made to the account by the Legislature;
1458 (b) transfers to the account from highway project funds as approved by the
1459 Transportation Commission; and
1460 (c) any donations made to the account.
1461 (3) (a) The state treasurer shall invest monies in the account according to Title 51,
1462 Chapter 7, State Money Management Act.
1463 (b) The Division of Finance shall deposit interest or other earnings derived from
1464 investment of account monies into the General Fund.
1465 (4) (a) Upon appropriation by the Legislature, the attorney general shall use monies
1466 from the account to pay litigation expenses for defending legal actions filed against the state
1467 that challenge highway projects.
1468 (b) The Legislature intends that monies in the account be appropriated for a project's
1469 litigation expenses before appropriating funds for litigation expenses from any other source.
1470 (5) The Division of Finance shall:
1471 (a) establish subaccounts within the Litigation Fund for Highway Projects Account to
1472 hold monies appropriated by the Legislature for litigation expenses for different highway
1473 projects;
1474 (b) apportion donations received equally among subaccounts unless the donor directs
1475 that the donation:
1476 (i) be used to defend a specific legal action; or
1477 (ii) be deposited into a specific subaccount; and
1478 (c) apportion interest between subaccounts proportionally based upon the balance of
1479 each subaccount.
1480 (6) When some or all of the money appropriated to fund litigation expenses for a
1481 particular highway project is not expended, the Legislature shall[
1482
1483
1484 Section 24. Section 70-3a-203 is amended to read:
1485 70-3a-203. Fees.
1486 (1) (a) A [
1487 the division in accordance with the requirements of Section [
1488 not exceed $250 annually for electronic registration of a mark in a single class.
1489 (b) A person who pays the annual [
1490 mark may register additional classes for the same mark for an additional fee not to exceed $25
1491 annually.
1492 [
1493
1494 [
1495 [
1496
1497 [
1498
1499
1500 [
1501 [
1502 [
1503 [
1504 [
1505 in a restricted account within the General Fund known as the Commerce Service Fund.
1506 Section 25. Section 70-3a-302 is amended to read:
1507 70-3a-302. Application for registration.
1508 (1) (a) Subject to the limitations in this chapter, any person who uses a mark may file
1509 with the division an application for registration of that mark.
1510 (b) The registration described in Subsection (1)(a) shall be filed in accordance with
1511 rules:
1512 (i) made by the division in accordance with Section 70-3a-201 ; and
1513 (ii) that are consistent with this section.
1514 (c) The application shall:
1515 (i) state:
1516 (A) the name and business address of the person applying for registration;
1517 (B) if a corporation, the state of incorporation; and
1518 (C) if a partnership:
1519 (I) the state where the partnership is organized; and
1520 (II) the names of the general partners, as specified by the division;
1521 (ii) specify:
1522 (A) the goods or services on or in connection with which the mark is used;
1523 (B) the mode or manner in which the mark is used on or in connection with those
1524 goods or services; and
1525 (C) the class defined pursuant to Section 70-3a-308 in which those goods or services
1526 fall;
1527 (iii) state:
1528 (A) the date when the mark was first used anywhere;
1529 (B) the date when the mark was first used in this state by the applicant or a
1530 predecessor in interest;
1531 (C) that the applicant is the owner of the mark;
1532 (D) that the mark is in use; and
1533 (E) that to the knowledge of the person verifying the application, no other person has
1534 registered, either federally or in this state, or has the right to use that mark:
1535 (I) in the mark's identical form; or
1536 (II) in such near resemblance to the mark as to be likely, when applied to the goods or
1537 services of the other person, to cause confusion, mistake, or to deceive;
1538 (iv) be signed, including by any signature consistent with the requirement for an
1539 electronic signature under 15 U.S.C. Sec. 7001, under penalty of perjury by:
1540 (A) the applicant; or
1541 (B) if the applicant is not an individual:
1542 (I) an officer of the applicant; or
1543 (II) a partner of a partnership;
1544 (v) be filed with the division;
1545 (vi) be accompanied by two specimens showing the mark as actually used; and
1546 (vii) be accompanied by a [
1547 with Section 70-3a-203 .
1548 (d) In addition to the information required by Subsection (1)(c), the division may
1549 require the applicant to provide:
1550 (i) a statement as to whether an application to register the mark, or portions or a
1551 composite of the mark, has been filed by the applicant or a predecessor in interest in the
1552 United States Patent and Trademark Office; or
1553 (ii) a drawing of the mark, complying with the requirements the division may specify.
1554 (2) If the division requires the statement under Subsection (1)(d)(i), the applicant shall
1555 provide full information with respect to any application filed with the United States Patent and
1556 Trademark Office including:
1557 (a) the filing date and serial number of the application;
1558 (b) the status of the application; and
1559 (c) if any application was finally refused registration or has otherwise not resulted in a
1560 registration, the reasons for the refusal or lack of registration.
1561 (3) Any materials, information, or signatures required to file an application for a mark
1562 may be provided through the database created under Section 70-3a-501 .
1563 Section 26. Section 70-3a-303 is amended to read:
1564 70-3a-303. Filing of applications.
1565 (1) The division may examine an application to determine whether the application
1566 conforms with this chapter if:
1567 (a) the application for registration is filed under Section 70-3a-302 ; and
1568 (b) the [
1569 (2) If reasonably requested by the division or considered by the applicant to be
1570 advisable to respond to any rejection or objection, the applicant:
1571 (a) shall provide any additional information requested by rule by the division,
1572 including a description of a design mark; and
1573 (b) may make, or authorize the division to make, amendments to the application.
1574 (3) (a) The division may require the applicant to disclaim an unregistrable component
1575 of a mark otherwise registrable.
1576 (b) An applicant may voluntarily disclaim a component of a mark for which the
1577 applicant has filed a registration application.
1578 (c) A disclaimer under this Subsection (3) may not prejudice or affect the applicant's
1579 or registrant's rights:
1580 (i) in the disclaimed matter:
1581 (A) existing at the time of the disclaimer; or
1582 (B) arising after the disclaimer; or
1583 (ii) of registration on another application if the disclaimed matter is or has become
1584 distinctive of the applicant's or registrant's goods or services.
1585 (d) The division may make rules consistent with this Subsection (3) to establish the
1586 requirements for an applicant to disclaim an unregistrable component of a mark that is
1587 otherwise registrable.
1588 (4) The division may:
1589 (a) amend an application filed by the applicant if the applicant agrees in writing to the
1590 amendment; or
1591 (b) require the applicant to file a new application.
1592 (5) (a) If the division determines that the applicant is not qualified to register a mark,
1593 the division shall notify the applicant of:
1594 (i) the refusal; and
1595 (ii) the reasons for the refusal.
1596 (b) The applicant shall have a reasonable period of time specified by the division, but
1597 not more than 60 days from the date of the notice under this Subsection (5) to:
1598 (i) reply to the refusal; or
1599 (ii) amend the application for reexamination.
1600 (c) The procedure described in Subsections (5)(a) and (b) may be repeated until:
1601 (i) the division finally refuses registration of the mark; or
1602 (ii) the applicant fails to reply or amend within the time period specified under
1603 Subsection (5)(b).
1604 (d) If the applicant fails to reply or to amend within the time period specified under
1605 Subsection (5)(b), the application is considered abandoned.
1606 (6) If the division finally refuses registration of the mark, the refusal shall:
1607 (a) be in writing; and
1608 (b) notify the applicant of the applicant's right to a review of the agency action in
1609 accordance with Title 63G, Chapter 4, Administrative Procedures Act.
1610 (7) (a) An applicant may file an action to compel registration by obtaining judicial
1611 review of the final agency action in accordance with Title 63G, Chapter 4, Administrative
1612 Procedures Act.
1613 (b) The division is not liable for damages in an action to compel registration.
1614 (c) An action to compel registration shall only be granted on proof that:
1615 (i) all the statements in the application for registration are true; and
1616 (ii) the mark is otherwise entitled to registration.
1617 (8) (a) If more than one application is concurrently being processed by the division
1618 seeking registration of the same or confusingly similar marks for the same or related goods or
1619 services, the division shall grant priority to the applications in order of filing.
1620 (b) If a prior-filed application is granted a registration, the division shall refuse an
1621 application filed after the prior-filed application.
1622 (c) An applicant refused under this Subsection (8) may bring an action for cancellation
1623 of the registration upon grounds of prior or superior rights to the mark.
1624 Section 27. Section 70-3a-305 is amended to read:
1625 70-3a-305. Duration and renewal.
1626 (1) The registration of a mark under this chapter expires five years after the date the
1627 division certifies the registration under Section 70-3a-304 .
1628 (2) A registration may be renewed for an additional five years from the date a
1629 registration expires if the registrant:
1630 (a) files an application with the division:
1631 (i) at least six months before the expiration of the registration; and
1632 (ii) in accordance with the requirements made by rule by the division:
1633 (A) pursuant to Section 70-3a-201 ; and
1634 (B) consistent with this section; and
1635 (b) pays a renewal [
1636 Section 70-3a-203 .
1637 (3) If a registrant complies with this section, the registrant may renew a mark at the
1638 expiration of each five-year term.
1639 (4) (a) A registration in effect before May 6, 2002:
1640 (i) shall continue in full force and effect for the registration's unexpired term; and
1641 (ii) may be renewed by:
1642 (A) filing an application for renewal with the division:
1643 (I) within six months before the expiration of the registration; and
1644 (II) in accordance with rules made by the division pursuant to Section 70-3a-201 ; and
1645 (B) paying the required renewal [
1646 accordance with Section 70-3a-203 .
1647 (b) If a registration in effect before May 6, 2002, is renewed in accordance with this
1648 Subsection (4), the registration shall be renewed for a term of five years.
1649 (5) Any application for renewal under this chapter, whether a registration made under
1650 this chapter or a registration made under a prior Utah statute, shall include:
1651 (a) a verified statement that the mark has been and is still in use; and
1652 (b) (i) a specimen showing actual use of the mark on or in connection with the goods
1653 or services; or
1654 (ii) a verified statement that the mark has not changed.
1655 Section 28. Repealer.
1656 This bill repeals:
1657 Section 11-38-303, Commission expenses -- Division of Finance responsibilities --
1658 Investment of monies into the fund -- Interest to accrue to the fund.
1659 Section 29. Effective date.
1660 This bill takes effect on July 1, 2009.
1661 Section 30. Coordinating H.B. 391 with H.B. 297 -- Superseding amendments.
1662 If this H.B. 391 and H.B. 297, Budgetary Procedures Act Recodification, both pass, it
1663 is the intent of the Legislature that the amendments in this H.B. 391 supersede the
1664 amendments to the same numbered sections in H.B. 297, when the Office of Legislative
1665 Research and General Counsel prepares the Utah Code database for publication.
1666 Section 31. Coordinating H.B. 391 with H.B. 400 -- Substantive and technical
1667 amendments.
1668 If this H.B. 391 and H.B. 400, Pete Suazo Utah Athletic Commission Amendments,
1669 both pass, it is the intent of the Legislature that, the Office of Legislative Research and
1670 General Counsel in preparing the Utah Code database for publication, do the following:
1671 (1) insert a new Subsection 63J-1-602 (1)(eeee) to read:
1672 "(eeee) certain monies payable for commission expenses of the Pete Suazo Utah
1673 Athletic Commission, as provided under Section 63C-11-301 ;";
1674 (2) the existing Subsection 63J-1-602 (1)(eeee) be renumbered to 63J-1-602 (1)(ffff);
1675 and
1676 (3) the remaining subsections of Subsection 63J-1-602 (1) be renumbered accordingly.
1677 Section 32. Revisor instructions.
1678 It is the intent of the Legislature that the Office of Legislative Research and General
1679 Counsel in preparing the Utah Code database for publication, change all internal references in
1680 the Utah Code to their correctly renumbered cite in Title 63J, Chapter 1, Budgetary Procedures
1681 Act.
1682
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