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H.B. 391 Enrolled

             1     

BUDGETARY PROCEDURES ACT REVISIONS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ron Bigelow

             5     
Senate Sponsor: Lyle W. Hillyard

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill 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 [restricted special revenue fund] general fund restricted
             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 [restricted special revenue fund] general fund restricted
             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 [; and].
             171          [(v) interest on fund monies.]
             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          [(5) "Fund" means the LeRay McAllister Critical Land Conservation Fund established
             194      in Section 11-38-301 .]
             195          [(6)] (5) "Infill development" means residential, commercial, or industrial
             196      development on unused or underused land, excluding open land and agricultural land, within
             197      existing, otherwise developed urban areas.


             198          [(7)] (6) "Local entity" means a county, city, or town.
             199          [(8)] (7) "OPB" means the Governor's Office of Planning and Budget established
             200      under Section 63J-4-201 .
             201          [(9)] (8) (a) "Open land" means land that is:
             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 [fund] program as provided in this chapter;
             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 [fund] program, the proceeds from which shall return to the fund.
             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 [restricted special revenue fund] program entitled the "LeRay
             248      McAllister Critical Land Conservation [Fund," consisting of:] Program."
             249          [(a) money appropriated or otherwise made available by the Legislature;]
             250          [(b) contributions of money, property, or equipment from federal agencies, political
             251      subdivisions of the state, persons, or corporations; and]
             252          [(c) proceeds that a department chooses to place into the fund from the sale of surplus
             253      land under Subsection (2).]


             254          [(2) The Department of Administrative Services, the Department of Agriculture and
             255      Food, the Department of Natural Resources, and the Department of Transportation may place
             256      proceeds from the sale of surplus land into the fund.]
             257          [(3) (a) Except as provided in Subsection (3)(b), the total amount of money in the fund
             258      may not exceed $6,000,000.]
             259          [(b) Monies deposited into the fund under the authority of Section 67-5-25 are not
             260      subject to the cap established in Subsection (3)(a).]
             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      [fund] program, by grant [or loan], to:
             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 [fund] program shall be used for preserving or restoring open
             273      land and agricultural land.
             274          (b) (i) Except as provided in Subsection (2)(b)(ii), money from the [fund] program
             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 [fund] program.
             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 [fund] program unless it provides matching funds equal to or greater
             292      than the amount of money received from the [fund] program.
             293          (d) In [loaning or] granting money from the [fund] program, the commission may
             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 [fund]
             297      program if the money is used for the protection of wildlife or watershed.
             298          (f) (i) The commission may not make a grant [or loan] from the [fund] program that
             299      exceeds $1,000,000 until after making a report to the Legislative Management Committee
             300      about the grant [or loan].
             301          (ii) The Legislative Management Committee may make a recommendation to the
             302      commission concerning the intended grant [or loan], but the recommendation is not binding
             303      on the commission.
             304          [(3) (a) If money from the fund is distributed in the form of a loan, the commission
             305      may require interest to be paid and shall establish other terms of each loan, including a
             306      repayment schedule.]
             307          [(b) Each payment on a loan from the fund shall be returned to the fund and shall be
             308      applied first to interest and then to principal.]
             309          [(4)] (3) In determining the amount and type of financial assistance to provide an


             310      entity, department, or organization under Subsection (1) and subject to Subsection (2)(f), the
             311      commission[: (a) if the assistance is in the form of a loan, shall consider the borrower's ability
             312      to repay the loan; and (b)] shall consider:
             313          [(i)] (a) the nature and amount of open land and agricultural land proposed to be
             314      preserved or restored;
             315          [(ii)] (b) the qualities of the open land and agricultural land proposed to be preserved
             316      or restored;
             317          [(iii)] (c) the cost effectiveness of the project to preserve or restore open land or
             318      agricultural land;
             319          [(iv)] (d) the funds available;
             320          [(v)] (e) the number of actual and potential applications for financial assistance and
             321      the amount of money sought by those applications;
             322          [(vi)] (f) the open land preservation plan of the local entity where the project is located
             323      and the priority placed on the project by that local entity;
             324          [(vii)] (g) the effects on housing affordability and diversity; and
             325          [(viii)] (h) whether the project protects against the loss of private property ownership.
             326           [(5)] (4) If a county, city, town, department, or organization under Subsection (1)
             327      seeks money from the [fund] program for a project whose purpose is to protect critical
             328      watershed, the commission shall require that the needs and quality of that project be verified
             329      by the state engineer.
             330          [(6)] (5) Each interest in real property purchased with money from the [fund] program
             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 [fund, whether by loan or
             337      grant] program;


             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 [fund] program.
             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 [restricted special revenue fund] general fund restricted account
             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          [(a) "Regulatory fee" is as defined in Section 63J-1-303 .]
             428          [(b)] (a) "Services" means functions that are reasonable and necessary to enable the
             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          [(c)] (b) Fees related to the renewal of licenses may be imposed no more frequently
             435      than once each year.
             436          (2) [(a)] A [regulatory] fee charged by the department shall be set in accordance with
             437      Section 63J-1-303 .
             438          [(b) Fees shall be set and collected for services provided by the department.]
             439          [(3) (a) For a fee authorized by this chapter that is not a regulatory fee, the department
             440      may adopt a schedule of fees provided that each fee in the schedule of fees is:]
             441          [(i) reasonable and fair; and]
             442          [(ii) submitted to the Legislature as part of the department's annual appropriations
             443      request.]
             444          [(b) If a fee schedule described in Subsection (3)(a) is submitted as part of the
             445      department's annual appropriations request, the Legislature may, in a manner substantially
             446      similar to Section 63J-1-303 :]
             447          [(i) approve any fee in the fee schedule;]
             448          [(ii) (A) increase or decrease any fee in the fee schedule; and]
             449          [(B) approve any fee in the fee schedule as changed by the Legislature; or]


             450          [(iii) reject any fee in the fee schedule.]
             451          [(c) (i) Except as provided in Subsection (3)(c)(ii), a]
             452          (3) (a) A fee approved by the Legislature pursuant to this [Subsection (3)] section shall
             453      be deposited into the General Fund for appropriation by the Legislature.
             454          [(ii)] (b) A fee approved [by the Legislature] pursuant to this [Subsection (3)] section
             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 [regulatory] fees under [Subsection
             485      63J-1-303 (5)] Section 63J-1-504 , the provisions of this chapter are considered a new program
             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)[(c)](d)(i) to fund costs to the state of emergency disaster
             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     
CHAPTER 1. BUDGETARY PROCEDURES ACT

             499     
Part 1. General Provisions

             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           [63J-1-404].     63J-1-104. Revenue types -- Disposition of funds collected or
             528      credited by a state agency.
             529          [(1) (a) The revenues enumerated in this section are established as major revenue
             530      types.]
             531          [(b)] (1) (a) The Division of Finance shall:
             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          [(c)] (b) Each agency shall:
             536          (i) use the major revenue types [enumerated in this section] to account for revenues;
             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          [(2) The major revenue types are:]
             541          [(a) free revenue;]
             542          [(b) restricted revenue;]
             543          [(c) dedicated credits; and]
             544          [(d) fixed collections.]
             545          [(3) (a) Free revenue includes:]
             546          [(i) collections that are required by law to be deposited in the General Fund, the
             547      Education Fund, the Uniform School Fund, or the Transportation Fund;]
             548          [(ii) collections that are not otherwise designated by law;]
             549          [(iii) collections that are not externally restricted; and]
             550          [(iv) collections that are not included in an approved work program.]
             551          [(b)] (2) (a) Each agency shall deposit its free revenues into the appropriate fund.
             552          [(c)] (b) An agency may expend free revenues up to the amount specifically
             553      appropriated by the Legislature.
             554          [(d)] (c) Any free revenue funds appropriated by the Legislature to an agency that
             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          [(4) (a) Restricted revenues are collections deposited by law into a separate fund or
             558      subfund that are designated for a specific program or purpose.]
             559          [(b)] (3) (a) Each agency shall deposit its restricted revenues into a restricted fund.
             560          [(c)] (b) The Legislature may appropriate restricted revenues from a restricted fund for
             561      the specific purpose or program designated by law.


             562          [(d)] (c) If the fund equity of a restricted fund is insufficient to provide the funds
             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          [(e)] (d) Any restricted revenue funds appropriated by the Legislature to an agency
             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          [(5) (a) Dedicated credits and federal revenues are collections by an agency that are
             570      deposited directly into an account for expenditure on a separate line item and program.]
             571          [(b)] (4) (a) An agency may expend dedicated credits for any purpose within the
             572      program or line item.
             573          [(c) (i) An agency may]
             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      [by following the procedures contained in this Subsection (5)(c)].
             577          [(ii) The agency shall]
             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 [and the justification for the work program and
             582      submit it to the Division of Finance and the director of the Governor's Office of Planning and
             583      Budget. Except for monies deposited as dedicated credits in the Drug Stamp Tax Fund under
             584      Section 59-19-105 or line items covering tuition and federal vocational funds at institutions of
             585      higher learning, any expenditure of dedicated credits in excess of amounts appropriated as
             586      dedicated credits by the Legislature may not be used to permanently increase personnel within
             587      the agency unless approved by the Legislature.] that:
             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          [(iii)] (B) The Division of Finance [and the director of the Governor's Office of
             596      Planning and Budget shall review the program and submit their findings and recommendations
             597      to the governor] shall process the new work program with written justification and make this
             598      information available to the Governor's Office of Planning and Budget and the legislative
             599      fiscal analyst.
             600          [(iv) The governor may authorize the agency to expend its excess dedicated credits by
             601      approving the submitted work program.]
             602          [(v) The state's fiscal officer shall notify the Legislature by providing notice of the
             603      governor's action to the Office of Legislative Fiscal Analyst.]
             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          [(d)] (c) (i) All excess dedicated credits lapse to the appropriate fund at the end of the
             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          [(6) (a) Fixed collections are collections:]


             618          [(i) fixed by law or by the appropriation act at a specific amount; and]
             619          [(ii) required by law to be deposited into a separate line item and program.]
             620          [(b)] (5) (a) The Legislature may establish by law the maximum amount of fixed
             621      collections that an agency may expend.
             622          [(c)] (b) If an agency receives less than the maximum amount of expendable fixed
             623      collections established by law, the agency's authority to expend is limited to the amount of
             624      fixed collections that it receives.
             625          [(d)] (c) If an agency receives fixed collections greater than the maximum amount of
             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          [(7) (a)] (6) Unless otherwise specifically provided by law, when an agency has a
             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[.]; and
             632          (b) [Unless otherwise specifically provided by law, when programs or line items are
             633      funded by more than one major revenue type and include] if the program or line item includes
             634      both free revenue and restricted revenue, an agency shall expend those [sources] revenues
             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     
Part 2. Budget Process -- Appropriations and Expenditures

             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          [(1)] (2) (a) The governor shall, within [three days after the convening] the first three
             644      days of the annual general session of the Legislature [in the annual general session], submit [a
             645      budget for the ensuing fiscal year by delivering it] to the presiding officer of each house of the


             646      Legislature [together with]:
             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 [message] shall include:
             654          (i) a projection of estimated revenues and expenditures for the next fiscal year; [and]
             655          (ii) the source of all direct, indirect, [or] and in-kind matching funds for all federal
             656      grants or assistance programs included in the budget[.];
             657          [(2) At least 34 days before the submission of any budget, the governor shall deliver a
             658      confidential draft copy of the governor's proposed budget recommendations to the Office of
             659      the Legislative Fiscal Analyst.]
             660          [(3) (a) The budget shall contain]
             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          [(b) The budget may be accompanied by a separate document showing proposed
             664      expenditures and estimated revenues based on changes in state tax laws or rates.]
             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          [(4)] (c) The budget shall be accompanied by a statement showing:
             681          [(a)] (i) the revenues and expenditures for the last fiscal year;
             682          [(b)] (ii) the current assets, liabilities, and reserves, surplus or deficit, and the debts
             683      and funds of the state;
             684          [(c)] (iii) an estimate of the state's financial condition as of the beginning and the end
             685      of the period covered by the budget;
             686          [(d)] (iv) a complete analysis of lease with an option to purchase arrangements entered
             687      into by state agencies;
             688          [(e)] (v) the recommendations for each state agency for new full-time employees for
             689      the next fiscal year[;], which [recommendation should be provided also to the State Building
             690      Board under] shall also be provided to the State Building Board as required by Subsection
             691      63A-5-103 (2);
             692          [(f)] (vi) any explanation that the governor may desire to make as to the important
             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          [(g) the] (vii) information detailing certain [regulatory] fee increases as required by
             696      Section [ 63J-1-303 ] 63J-1-504 .
             697          [(5) The budget shall include an itemized estimate of the appropriations for:]
             698          [(a) the Legislative Department as certified to the governor by the president of the
             699      Senate and the speaker of the House;]
             700          [(b) the Executive Department;]
             701          [(c) the Judicial Department as certified to the governor by the state court


             702      administrator;]
             703          [(d) payment and discharge of the principal and interest of the indebtedness of the
             704      state;]
             705          [(e) the salaries payable by the state under the Utah Constitution or under law for the
             706      lease agreements planned for the next fiscal year;]
             707          [(f) other purposes that are set forth in the Utah Constitution or under law; and]
             708          [(g) all other appropriations.]
             709          [(6) Deficits or anticipated deficits shall be included in the budget.]
             710          [(7)] (3) (a) (i) For the purpose of preparing and reporting the proposed budget, the
             711      governor shall require [from] the proper state officials, including all public and higher
             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 [moneys] monies, and all institutions applying for state [moneys]
             715      monies and appropriations, to provide itemized estimates of revenues and expenditures.
             716          (ii) [(A)] The governor may also require other information under these guidelines and
             717      at times as the governor may direct[. (B) These guidelines], which may include a requirement
             718      for program productivity and performance measures, where appropriate, with emphasis on
             719      outcome indicators.
             720          [(b) The estimate for the Legislative Department as certified by the presiding officers
             721      of both houses shall be included in the budget without revision by the governor. ]
             722          [(c) The estimate for the Judicial Department, as certified by the state court
             723      administrator, shall also be included in the budget without revision, but the governor may
             724      make separate recommendations on it. ]
             725          [(d)] (b) The governor may require [the attendance at budget meetings of]
             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          [(e)] (d) (i) The governor may revise all estimates, except those relating to the
             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          [(8)] (e) The total appropriations requested for expenditures authorized by the budget
             797      may not exceed the estimated revenues from taxes, fees, and all other sources for the next
             798      ensuing fiscal year.
             799          [(9) If any item of the budget as enacted is held invalid upon any ground, the
             800      invalidity does not affect the budget itself or any other item in it.]
             801          [(10) (a) In submitting the budgets for the Departments of Health and Human Services
             802      and the Office of the Attorney General, the governor shall consider a separate recommendation
             803      in the governor's budget for funds to be contracted to:]
             804          [(i) local mental health authorities under Section 62A-15-110 ;]
             805          [(ii) local substance abuse authorities under Section 62A-15-110 ;]
             806          [(iii) area agencies under Section 62A-3-104.2 ;]
             807          [(iv) programs administered directly by and for operation of the Divisions of
             808      Substance Abuse and Mental Health and Aging and Adult Services;]
             809          [(v) local health departments under Title 26A, Chapter 1, Local Health Departments;
             810      and]
             811          [(vi) counties for the operation of Children's Justice Centers under Section
             812      67-5b-102 .]
             813          [(b) In the governor's budget recommendations under Subsections (10)(a)(i), (ii), and


             814      (iii), the governor shall consider an amount sufficient to grant local health departments, local
             815      mental health authorities, local substance abuse authorities, and area agencies the same
             816      percentage increase for wages and benefits that the governor includes in the governor's budget
             817      for persons employed by the state.]
             818          [(c) If the governor does not include in the governor's budget an amount sufficient to
             819      grant the increase described in Subsection (10)(b), the governor shall include a message to the
             820      Legislature regarding the governor's reason for not including that amount.]
             821          [(11) (a) In submitting the budget for the Department of Agriculture, the governor
             822      shall consider an amount sufficient to grant local conservation districts and Utah Association
             823      of Conservation District employees the same percentage increase for wages and benefits that
             824      the governor includes in the governor's budget for persons employed by the state.]
             825          [(b) If the governor does not include in the governor's budget an amount sufficient to
             826      grant the increase described in Subsection (11)(a), the governor shall include a message to the
             827      Legislature regarding the governor's reason for not including that amount.]
             828          [(12) (a) In submitting the budget for the Utah State Office of Rehabilitation and the
             829      Division of Services for People with Disabilities, the Division of Child and Family Services,
             830      and the Division of Juvenile Justice Services within the Department of Human Services, the
             831      governor shall consider an amount sufficient to grant employees of corporations that provide
             832      direct services under contract with those divisions, the same percentage increase for
             833      cost-of-living that the governor includes in the governor's budget for persons employed by the
             834      state.]
             835          [(b) If the governor does not include in the governor's budget an amount sufficient to
             836      grant the increase described in Subsection (12)(a), the governor shall include a message to the
             837      Legislature regarding the governor's reason for not including that amount.]
             838          [(13) (a) The Families, Agencies, and Communities Together Council may propose to
             839      the governor under Subsection 63M-9-201 (4)(e) a budget recommendation for collaborative
             840      service delivery systems operated under Section 63M-9-402 .]
             841          [(b) The Legislature may, through a specific program schedule, designate funds


             842      appropriated for collaborative service delivery systems operated under Section 63M-9-402 .]
             843          [(14) The governor shall include in the governor's budget the state's portion of the
             844      budget for the Utah Communications Agency Network established in Title 63C, Chapter 7,
             845      Utah Communications Agency Network Act.]
             846          [(15) (a) The governor shall include a separate recommendation in the governor's
             847      budget for funds to maintain the operation and administration of the Utah Comprehensive
             848      Health Insurance Pool.]
             849          [(b) In making the recommendation the governor may consider:]
             850          [(i) actuarial analysis of growth or decline in enrollment projected over a period of at
             851      least three years;]
             852          [(ii) actuarial analysis of the medical and pharmacy claims costs projected over a
             853      period of at least three years;]
             854          [(iii) the annual Medical Care Consumer Price Index;]
             855          [(iv) the annual base budget for the pool established by the Commerce and Revenue
             856      Appropriations Subcommittee for each fiscal year;]
             857          [(v) the growth or decline in insurance premium taxes and fees collected by the tax
             858      commission and the insurance department; and]
             859          [(vi) the availability of surplus General Fund revenue under Section 63J-1-202 and
             860      Subsection 59-14-204 (5)(b).]
             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          [(16)] (5) (a) In adopting a budget for each fiscal year, the Legislature shall consider
             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          [(17) (a)] (b) (i) In adopting a budget each year for the Utah Comprehensive Health
             871      Insurance Pool, the Legislature shall determine an amount that is sufficient to fund the pool for
             872      each fiscal year.
             873          [(b)] (ii) When making a determination under Subsection [(17)(a)] (5)(b)(i), the
             874      Legislature shall consider factors it determines are appropriate, which may include:
             875          [(i)] (A) actuarial analysis of growth or decline in enrollment projected over a period
             876      of at least three years;
             877          [(ii)] (B) actuarial analysis of the medical and pharmacy claims costs projected over a
             878      period of at least three years;
             879          [(iii)] (C) the annual Medical Care Consumer Price Index;
             880          [(iv)] (D) the annual base budget for the pool established by the Commerce and
             881      Revenue Appropriations Subcommittee for each fiscal year;
             882          [(v)] (E) the growth or decline in insurance premium taxes and fees collected by the
             883      tax commission and the insurance department from the previous fiscal year; and
             884          [(vi)] (F) the availability of surplus General Fund revenue under Section [ 63J-1-202 ]
             885      63J-1-312 and Subsection 59-14-204 (5)(b).
             886          [(c)] (iii) The funds appropriated by the Legislature to fund the Utah Comprehensive
             887      Health Insurance Pool as determined under Subsection [(17)(a)] (5)(b)(i):
             888          [(i)] (A) shall be deposited into the [enterprise] fund established by Section
             889      31A-29-120 ; and
             890          [(ii)] (B) are restricted and are to be used to maintain the operation, administration,
             891      and management of the Utah Comprehensive Health Insurance Pool created by Section
             892      31A-29-104 .
             893          [(18) In considering the factors in Subsections (15)(b)(i), (ii), and (iii) and Subsections
             894      (17)(b)(i), (ii), and (iii), the governor and the Legislature may consider the actuarial data and
             895      projections prepared for the board of the Utah Comprehensive Health Insurance Pool as it
             896      develops its financial statements and projections for each fiscal year.]
             897          [(19) The governor shall report, for each line item, the average annual dollar amount


             898      of staff funding associated with all positions that were vacant during the last fiscal year.]
             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           [63J-1-301].     63J-1-206. Appropriations governed by chapter --
             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          [(1) All moneys] (i) all monies appropriated by the Legislature are appropriated upon
             910      the terms and conditions set forth in this chapter[,]; and
             911          (ii) any department, agency, or institution[, except the Legislature and its committees,
             912      or where specifically exempted by the appropriating act, which accepts moneys appropriated
             913      by the Legislature,] that accepts monies appropriated by the Legislature does so subject to the
             914      requirements of this chapter.
             915          [(2) (a) In providing that certain appropriations are to be expended in accordance with
             916      a schedule or other restrictions, if any, set forth after each appropriations item, it is the intent
             917      of the Legislature to limit the amount of money to be expended from each appropriations item
             918      for certain specified purposes.]
             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) [(i) If any] In order for a department, agency, or institution [for which money is
             936      appropriated requests the] to transfer [of moneys] monies appropriated to it from one [purpose
             937      or function] program to another [purpose or function] program within an item of
             938      appropriation, the [director of the Governor's Office of Planning and Budget shall require]
             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 [to be submitted] for the fiscal year involved [setting] that
             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 [such] the transfer.
             945          [(ii) The director and fiscal officer shall review the proposed change and submit their
             946      findings and recommendations to the governor, who may permit the transfer.]
             947          [(iii) The state fiscal officer shall notify the Legislature through the Office of the
             948      Legislative Fiscal Analyst of action taken by the governor.]
             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          [(3) This section does not apply to the Investigation Account of the Water Resources
             955      Construction Fund. The investigation account shall continue to be governed by Section
             956      73-10-8 .]
             957          Section 16. Section 63J-1-209 , which is renumbered from Section 63J-1-406 is
             958      renumbered and amended to read:
             959           [63J-1-406].     63J-1-209. Director of finance to exercise accounting
             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) [The director of finance] Subject to the requirements of Subsection
             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 [director of finance] Division of Finance shall transmit a copy of the changes,
             978      when approved by the governor, to:
             979          (a) the head of the department concerned; and [also a copy to]
             980          (b) the legislative analyst.
             981          (7) Upon request, review, and approval by the governor, the [director of finance]


             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          [(8) (a) Except as provided by Subsection (8)(c), the director shall, through statistical
             985      sampling methods or other means, examine and approve or disapprove all requisitions and
             986      requests for proposed expenditures of the departments.]
             987          [(b) No requisitions of any of the departments shall be allowed nor shall any obligation
             988      be created without the approval and the certification of the director.]
             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          [(c) Notwithstanding the requirements of Subsection (8)(a), the director need only
             992      certify the availability of funds when the requisitions or proposed expenditures are
             993      for the judicial branch or to pay the salaries or compensation of officers fixed by law.]
             994          Section 17. Section 63J-1-215 , which is renumbered from Section 63J-1-311 is
             995      renumbered and amended to read:
             996           [63J-1-311].     63J-1-215. Cash funds -- Application for account --
             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 [state fiscal officer, setting
             1001      out] Division of Finance and provide:
             1002          (a) the reasons [for which it] why the cash fund is needed [and];
             1003          (b) the amount requested[.]; and
             1004          (c) the reasons why a purchasing card account is not sufficient to meet the needs of the
             1005      commission, department, or agency.
             1006          [(2) The state fiscal officer shall review the application and submit it to the governor
             1007      with the state fiscal officer's recommendations, and the governor may establish the fund or
             1008      funds from moneys in the state treasury.]
             1009          [(3) The state fiscal officer may, in lieu of establishing petty cash, imprest cash, or


             1010      revolving funds for state institutions of higher education, permit advances to be made from
             1011      allotments to the institutions in sufficient amounts to provide necessary working bank
             1012      balances to facilitate an orderly management of institutional affairs. The institutions shall
             1013      make reports as required by the state fiscal officer for the expenditure of funds included in any
             1014      advances.]
             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          [(4)] (3) Revolving funds established by law are not subject to the provisions of this
             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           [63J-1-405].     63J-1-217. Overexpenditure of budget by agency --
             1032      Prorating budget income shortfall.
             1033          (1) [In providing for appropriations, the Legislature intends that expenditures]
             1034      Expenditures of departments, agencies, and institutions of state government shall be kept
             1035      within revenues available for such expenditures.
             1036          (2) (a) [The Legislature also intends that line] Line items of appropriation shall not be
             1037      overexpended.


             1038          (b) [If] Notwithstanding Subsection (2)(a), if an agency's line item is overexpended at
             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 [produce]:
             1045          (i) prepare a written report explaining the reasons for the overexpenditure; and [shall]
             1046          (ii) present the report to:
             1047          (A) the Board of Examiners as required by Section 63G-9-301 [.]; and
             1048          [(3) If the total of all revenues accruing in any given fiscal year to the General Fund, or
             1049      any other major fund type, collections, or dedicated credits, from which appropriations are
             1050      made, are not sufficient to cover the appropriations made for that period, the governor shall
             1051      reduce the budgetary allotments and transfer of funds by the amount of the deficiency.]
             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) [No] A department may not receive [any] an advance [allotment, or allotments
             1067      in excess of regular monthly allotments,] of funds that cannot be covered by anticipated
             1068      revenue within the work program of the fiscal year, unless the governor allocates [moneys]
             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           [63J-1-303].     63J-1-504. Fees -- Adoption, procedure, and approval --
             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 [regulatory] fees.
             1087          (c) "Fee schedule" means the complete list of [regulatory] fees charged by a fee agency
             1088      and the amount of those fees.
             1089          [(d) "Regulatory fees" means fees established for licensure, registration, or
             1090      certification.]
             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 [regulatory] fee;
             1097          [(b) conduct a public hearing on any proposed regulatory fee and]
             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 [or], decrease [the], or affirm each proposed [regulatory] fee based [upon]
             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      and].
             1106          [(e) deposit all regulatory fees collected under the fee schedule into the General Fund.]
             1107          (3) A fee agency may not:
             1108          (a) set [regulatory] fees by rule; or
             1109          (b) charge or collect any [regulatory] fee without approval by the Legislature unless
             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      [regulatory] fee submitted to it by a fee agency.
             1113          (5) (a) After the public hearing required by this section, a fee agency may establish
             1114      and assess [regulatory] fees without legislative approval if:
             1115          (i) the Legislature creates a new program that is to be funded by [regulatory] fees to be
             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 [regulatory] fee set according to this subsection after the adjournment of the annual
             1127      general session following the session that established the new program.
             1128          (6) (a) Each fee agency that wishes to increase any [regulatory] fee by 5% or more
             1129      shall obtain legislative approval for the fee increase as provided in this subsection before
             1130      assessing the new [regulatory] fee.
             1131          (b) Each fee agency that wishes to increase any [regulatory] fee by 5% or more shall
             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 [regulatory] fee;
             1135          (ii) the present amount of the [regulatory] fee;
             1136          (iii) the proposed new amount of the [regulatory] fee;
             1137          (iv) the percent that the [regulatory] fee will have increased if the Legislature approves
             1138      the higher fee; and
             1139          (v) the reason for the increase in the [regulatory] fee.
             1140          (c) (i) The governor may review and approve, modify and approve, or reject the
             1141      [regulatory] fee increases.
             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 [regulatory] fee increases of 5% or more shall be filed before
             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           [63J-1-401].     63J-1-601. End of fiscal year -- Unexpended balances --
             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          [(v) college and university funds;]
             1164          (v) discrete component unit funds;
             1165          (vi) debt service funds; and
             1166          (vii) permanent funds;
             1167          [(b) appropriations made to the Legislature and its committees;]
             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 [ 63J-1-402 ; and] 63J-1-603 .


             1178          [(g) any other appropriations excepted by statute or by an annual appropriations act.]
             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 [ 63J-1-406 ] 63J-1-209 . However, except for monies deposited as
             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 [ 63J-1-406 ] 63J-1-209 .
             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[: (a) appropriate those
             1482      unused monies to the LeRay McAllister Critical Land Conservation Fund created by Section
             1483      11-38-301 ; or (b)] return the money to the donor.
             1484          Section 24. Section 70-3a-203 is amended to read:
             1485           70-3a-203. Fees.


             1486          (1) (a) A [regulatory] fee[, as defined in Section 63J-1-303 ,] shall be determined by
             1487      the division in accordance with the requirements of Section [ 63J-1-303 ] 63J-1-504 , but may
             1488      not exceed $250 annually for electronic registration of a mark in a single class.
             1489          (b) A person who pays the annual [regulatory] fee for the electronic registration of a
             1490      mark may register additional classes for the same mark for an additional fee not to exceed $25
             1491      annually.
             1492          [(2) (a) For a fee authorized by this chapter that is not a regulatory fee, the division
             1493      may adopt a schedule of fees if each fee in the schedule of fees is:]
             1494          [(i) reasonable and fair; and]
             1495          [(ii) submitted to the Legislature as part of the Department of Commerce's annual
             1496      appropriations request.]
             1497          [(b) When a fee schedule described in Subsection (2)(a) is submitted as part of the
             1498      annual appropriations request, the Legislature, in a manner substantially similar to Section
             1499      63J-1-303 , may for any fee in the fee schedule:]
             1500          [(i) approve the fee;]
             1501          [(ii) (A) increase or decrease the fee; and]
             1502          [(B) approve the fee as changed by the Legislature; or]
             1503          [(iii) reject the fee.]
             1504          [(c)] (2) A fee approved [by the Legislature] pursuant to this section shall be deposited
             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 [regulatory] fee as determined by the division in accordance
             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 [regulatory] fee required by Section 70-3a-203 is paid.
             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 [regulatory] fee determined by the division in accordance with
             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 [regulatory] fee determined by the division in
             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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