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H.B. 391
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7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the Budgetary Procedures Act.
10 Highlighted Provisions:
11 This bill:
12 . reclassifies the Invasive Species Mitigation Fund from a restricted special revenue
13 fund to a general fund restricted account;
14 . reclassifies the Rangeland Improvement Fund from a restricted special revenue
15 account to a general fund restricted account;
16 . provides that interest accrued from the Rangeland Improvement Fund be deposited
17 into the General Fund;
18 . converts the LeRay McAllister Critical Land Conservation Fund to a program
19 funded by an appropriation line item for the Quality Growth Commission;
20 . removes references to the use of loans in relation to the LeRay McAllister Critical
21 Land Conservation Program;
22 . provides that the LeRay McAllister Critical Land Conservation Program's line item
23 be nonlapsing;
24 . reclassifies the Rural Health Care Facilities Fund from a restricted special revenue
25 fund to a general fund restricted account;
26 . revises agency fee language to accommodate the removal of the "regulatory" fee
27 designation;
28 . creates, modifies, and provides definitions in the Budgetary Procedures Act;
29 . clarifies the procedures to be followed when seeking to expend dedicated credits in
30 excess of the amount appropriated by the Legislature;
31 . clarifies procedures and simplifies timelines relating to the governor's submission of
32 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 and
53 approved in an appropriations act;
54 . clarifies that an agency must hold a public hearing on establishing or modifying a
55 fee before presenting the fee for legislative review;
56 . changes the term "college and university funds" to "discrete component unit funds"
57 to comply with currently existing definitions in other sections of the code;
58 . requires state institutions of higher education to report nonlapsing balances to the
59 Division of Finance by the September 1 following the close of the fiscal year;
60 . consolidates the listing of all nonlapsing funds and accounts;
61 . requires that an account or fund be expressly referenced as nonlapsing in the
62 Budgetary Procedures Act in order for the account or fund to be treated as
63 nonlapsing;
64 . requires legislative appropriations subcommittees to review those accounts and
65 funds that have been granted nonlapsing authority on a yearly basis;
66 . requires each agency to report the balances of any dedicated credits and fixed
67 collections at the end of each fiscal year; and
68 . makes technical changes.
69 Monies Appropriated in this Bill:
70 None
71 Other Special Clauses:
72 This bill takes effect on July 1, 2009.
73 This bill coordinates with H.B. 297, Budgetary Procedures Act Recodification, by
74 providing superseding amendments.
75 This bill coordinates with H.B. 400, Pete Suazo Utah Athletic Commission
76 Amendments, by providing substantive and technical amendments.
77 This bill provides revisor instructions.
78 Utah Code Sections Affected:
79 AMENDS:
80 4-2-8.7, as enacted by Laws of Utah 2008, Chapter 245
81 4-20-2, as last amended by Laws of Utah 2008, Chapter 399
82 11-38-102, as last amended by Laws of Utah 2008, Chapter 382
83 11-38-202, as enacted by Laws of Utah 1999, Chapter 24
84 11-38-301, as last amended by Laws of Utah 2007, Chapter 392
85 11-38-302, as last amended by Laws of Utah 2005, Chapter 138
86 11-38-304, as enacted by Laws of Utah 1999, Chapter 24
87 26-9-4, as last amended by Laws of Utah 2008, Chapter 187
88 31A-3-103, as last amended by Laws of Utah 2008, Chapter 382
89 38-11-201, as last amended by Laws of Utah 2008, Chapter 382
90 53-2-404, as last amended by Laws of Utah 2008, Chapter 382
91 63J-1-201, as last amended by Laws of Utah 2008, Chapter 213 and renumbered and
92 amended by Laws of Utah 2008, Chapter 382
93 63J-2-202, as renumbered and amended by Laws of Utah 2008, Chapter 382
94 67-5-25, as last amended by Laws of Utah 2008, Chapter 216
95 70-3a-203, as last amended by Laws of Utah 2008, Chapters 258 and 382
96 70-3a-302, as last amended by Laws of Utah 2008, Chapter 258
97 70-3a-303, as last amended by Laws of Utah 2008, Chapter 382
98 70-3a-305, as last amended by Laws of Utah 2008, Chapter 258
99 ENACTS:
100 63J-1-102, Utah Code Annotated 1953
101 63J-1-602, Utah Code Annotated 1953
102 RENUMBERS AND AMENDS:
103 63J-1-104, (Renumbered from 63J-1-404, as renumbered and amended by Laws of
104 Utah 2008, Chapter 382)
105 63J-1-206, (Renumbered from 63J-1-301, as renumbered and amended by Laws of
106 Utah 2008, Chapter 382)
107 63J-1-209, (Renumbered from 63J-1-406, as renumbered and amended by Laws of
108 Utah 2008, Chapter 382)
109 63J-1-215, (Renumbered from 63J-1-311, as renumbered and amended by Laws of
110 Utah 2008, Chapter 382)
111 63J-1-217, (Renumbered from 63J-1-405, as renumbered and amended by Laws of
112 Utah 2008, Chapter 382)
113 63J-1-504, (Renumbered from 63J-1-303, as renumbered and amended by Laws of
114 Utah 2008, Chapter 382)
115 63J-1-601, (Renumbered from 63J-1-401, as renumbered and amended by Laws of
116 Utah 2008, Chapter 382)
117 REPEALS:
118 11-38-303, as last amended by Laws of Utah 2008, Chapter 382
119
120 Be it enacted by the Legislature of the state of Utah:
121 Section 1. Section 4-2-8.7 is amended to read:
122 4-2-8.7. Invasive Species Mitigation Fund created.
123 (1) As used in this section, "project" means an undertaking that prevents catastrophic
124 wildland fire through land restoration in a watershed that:
125 (a) is impacted by cheatgrass or other invasive species; or
126 (b) has a fuel load that may contribute to a catastrophic wildland fire.
127 (2) (a) There is created a [
128 account known as the "Invasive Species Mitigation Fund."
129 (b) The fund shall consist of:
130 (i) money appropriated by the Legislature;
131 (ii) grants from the federal government; and
132 (iii) grants or donations from a person.
133 (3) Any unallocated balance in the fund at the end of the year is nonlapsing.
134 (4) (a) After consulting with the Department of Natural Resources and the
135 Conservation Commission, the department may expend fund monies:
136 (i) on a project implemented by:
137 (A) the department; or
138 (B) the Conservation Commission; or
139 (ii) by giving a grant for a project to:
140 (A) a state agency;
141 (B) a federal agency; or
142 (C) a federal, state, tribal, or private landowner.
143 (b) A grant to a federal landowner must be matched with at least an equal amount of
144 money by the federal landowner.
145 (c) In expending the fund monies authorized by Subsection (4)(a)(i), the department
146 shall use existing infrastructure and employees to plan and implement the project.
147 (5) In giving a grant, the department shall consider the effectiveness of a project in
148 preventing:
149 (a) first, the risk to public safety and health from:
150 (i) air pollution;
151 (ii) flooding; and
152 (iii) reduced visibility on a highway;
153 (b) second, damage to the environment, including:
154 (i) soil erosion;
155 (ii) degraded water quality; and
156 (iii) release of carbon; and
157 (c) third, damage to:
158 (i) a local economy; and
159 (ii) habitat for wildlife or livestock.
160 Section 2. Section 4-20-2 is amended to read:
161 4-20-2. Rangeland Improvement Fund -- Administered by department.
162 (1) (a) There is created a [
163 account known as the "Rangeland Improvement Fund."
164 (b) The fund shall consist of:
165 (i) all monies received by the state from the United States Secretary of Interior under
166 the Taylor Grazing Act, 43 U.S.C. Section 315 et seq., for sales, leases, and fees;
167 (ii) grants or appropriations from the state or federal government;
168 (iii) grants from private foundations; and
169 (iv) proceeds from the sale of a livestock watering right in accordance with Section
170 73-3-31 [
171 [
172 (c) Any interest earned on the fund shall be deposited into the General Fund.
173 (2) Any unallocated balance in the fund at the end of a fiscal year is nonlapsing.
174 (3) The department shall:
175 (a) administer the fund;
176 (b) obtain from the United States Department of Interior the receipts collected from:
177 (i) fees in each grazing district; and
178 (ii) the receipts collected from the sale or lease of public lands; and
179 (c) distribute fund monies in accordance with Section 4-20-3 .
180 Section 3. Section 11-38-102 is amended to read:
181 11-38-102. Definitions.
182 As used in this chapter:
183 (1) "Affordable housing" means housing occupied or reserved for occupancy by
184 households with a gross household income equal to or less than 80% of the median gross
185 income of the applicable municipal or county statistical area for households of the same size.
186 (2) "Agricultural land" has the same meaning as "land in agricultural use" under
187 Section 59-2-502 .
188 (3) "Brownfield sites" means abandoned, idled, or underused commercial or industrial
189 land where expansion or redevelopment is complicated by real or perceived environmental
190 contamination.
191 (4) "Commission" means the Quality Growth Commission established in Section
192 11-38-201 .
193 [
194
195 [
196 on unused or underused land, excluding open land and agricultural land, within existing,
197 otherwise developed urban areas.
198 [
199 [
200 Section 63J-4-201 .
201 [
202 (i) preserved in or restored to a predominantly natural, open, and undeveloped
203 condition; and
204 (ii) used for:
205 (A) wildlife habitat;
206 (B) cultural or recreational use;
207 (C) watershed protection; or
208 (D) another use consistent with the preservation of the land in or restoration of the land
209 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 the
223 Department of Transportation that the individual department determines not to be necessary for
224 carrying out the mission of the department.
225 Section 4. Section 11-38-202 is amended to read:
226 11-38-202. Commission duties and powers -- No regulatory authority.
227 (1) The commission shall:
228 (a) make recommendations to the Legislature on how to define more specifically
229 quality growth areas within the general guidelines provided to the commission by the
230 Legislature;
231 (b) advise the Legislature on growth management issues;
232 (c) make recommendations to the Legislature on refinements to this chapter;
233 (d) conduct a review in 2002 and each year thereafter to determine progress statewide
234 on accomplishing the purposes of this chapter, and give a report of each review to the Political
235 Subdivisions Interim Committee of the Legislature by November 30 of the year of the review;
236 (e) administer the [
237 (f) assist as many local entities as possible, at their request, to identify principles of
238 growth that the local entity may consider implementing to help achieve the highest possible
239 quality of growth for that entity;
240 (g) fulfill other responsibilities imposed on the commission by the Legislature; and
241 (h) fulfill all other duties imposed on the commission by this chapter.
242 (2) The commission may sell, lease, or otherwise dispose of equipment or personal
243 property belonging to the [
244 (3) The commission may not exercise any regulatory authority.
245 Section 5. Section 11-38-301 is amended to read:
246 11-38-301. LeRay McAllister Critical Land Conservation Program.
247 (1) There is created a [
248 McAllister Critical Land Conservation [
249 [
250 [
251
252 [
253
254 [
255
256
257 [
258
259 [
260
261 (2) Funding for the program shall be a line item in the budget of the Quality Growth
262 Commission. The line item shall be nonlapsing.
263 Section 6. Section 11-38-302 is amended to read:
264 11-38-302. Use of money in program -- Criteria -- Administration.
265 (1) Subject to Subsection (2), the commission may authorize the use of money in the
266 [
267 (a) a local entity;
268 (b) the Department of Natural Resources created under Section 63-34-3 ;
269 (c) the Department of Agriculture and Food created under Section 4-2-1 ; or
270 (d) a charitable organization that qualifies as being tax exempt under Section 501(c)(3)
271 of the Internal Revenue Code.
272 (2) (a) The money in the [
273 land and agricultural land.
274 (b) (i) Except as provided in Subsection (2)(b)(ii), money from the [
275 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, Chapter
277 18, Land Conservation Easement Act, or to fund similar methods to preserve open land or
278 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 is
283 publicly owned, real property roughly equivalent in size and located within that county is
284 contemporaneously transferred to private ownership from the governmental entity that
285 purchased the fee interest in real property.
286 (iii) Eminent domain may not be used or threatened in connection with any purchase
287 using money from the [
288 (iv) A parcel of land larger than 20 acres in size may not be divided into separate
289 parcels smaller than 20 acres each to meet the requirement of Subsection (2)(b)(ii).
290 (c) A county, city, town, department, or organization under Subsection (1) may not
291 receive money from the [
292 than the amount of money received from the [
293 (d) In [
294 impose conditions on the recipient as to how the money is to be spent.
295 (e) The commission shall give priority to requests from the Department of Natural
296 Resources for up to 20% of each annual increase in the amount of money in the [
297 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 [
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 [
303 the commission.
304 [
305
306
307 [
308
309 [
310 entity, department, or organization under Subsection (1) and subject to Subsection (2)(f), the
311 commission[
312
313 [
314 preserved or restored;
315 [
316 restored;
317 [
318 agricultural land;
319 [
320 [
321 amount of money sought by those applications;
322 [
323 and the priority placed on the project by that local entity;
324 [
325 [
326 [
327 money from the [
328 commission shall require that the needs and quality of that project be verified by the state
329 engineer.
330 [
331 shall be held and administered by the state or a local entity.
332 Section 7. Section 11-38-304 is amended to read:
333 11-38-304. Commission to report annually.
334 The commission shall submit an annual report to the Executive Appropriations
335 Committee of the Legislature:
336 (1) specifying the amount of each disbursement from the [
337
338 (2) identifying the recipient of each disbursement and describing the project for which
339 money was disbursed; and
340 (3) detailing the conditions, if any, placed by the commission on disbursements from
341 the [
342 Section 8. Section 26-9-4 is amended to read:
343 26-9-4. Rural Health Care Facilities Fund -- Source of revenues -- Interest --
344 Distribution of revenues -- Expenditure of revenues -- Unexpended revenues lapse into
345 the General Fund.
346 (1) As used in this section:
347 (a) "Emergency medical services" is as defined in Section 26-8a-102 .
348 (b) "Federally qualified health center" is as defined in 42 U.S.C. Sec. 1395x.
349 (c) "Fiscal year" means a one-year period beginning on July 1 of each year.
350 (d) "Freestanding urgent care center" is as defined in Section 59-12-801 .
351 (e) "Fund" means the Rural Health Care Facilities Fund created by this section.
352 (f) "Nursing care facility" is as defined in Section 26-21-2 .
353 (g) "Rural city hospital" is as defined in Section 59-12-801 .
354 (h) "Rural county health care facility" is as defined in Section 59-12-801 .
355 (i) "Rural county hospital" is as defined in Section 59-12-801 .
356 (j) "Rural county nursing care facility" is as defined in Section 59-12-801 .
357 (k) "Rural emergency medical services" is as defined in Section 59-12-801 .
358 (l) "Rural health clinic" is as defined in 42 U.S.C. Sec. 1395x.
359 (2) There is created a [
360 known as the Rural Health Care Facilities Fund.
361 (3) (a) The fund shall be funded by amounts appropriated by the Legislature.
362 (b) Any interest earned on the fund shall be deposited into the General Fund.
363 (4) Subject to Subsection (5), the State Tax Commission shall for a fiscal year
364 distribute monies deposited into the fund to each:
365 (a) county legislative body of a county that, on January 1, 2007, imposes a tax in
366 accordance with Section 59-12-802 ; or
367 (b) city legislative body of a city that, on January 1, 2007, imposes a tax in accordance
368 with Section 59-12-804 .
369 (5) (a) For purposes of the distribution required by Subsection (4), the State Tax
370 Commission shall:
371 (i) estimate for each county and city described in Subsection (4) the amount by which
372 the revenues collected from the taxes imposed under Sections 59-12-802 and 59-12-804 for
373 fiscal year 2005-06 would have been reduced had:
374 (A) the amendments made by Laws of Utah 2007, Chapter 288, Sections 25 and 26, to
375 Sections 59-12-802 and 59-12-804 been in effect for fiscal year 2005-06; and
376 (B) each county and city described in Subsection (4) imposed the tax under Sections
377 59-12-802 and 59-12-804 for the entire fiscal year 2005-06;
378 (ii) calculate a percentage for each county and city described in Subsection (4) by
379 dividing the amount estimated for each county and city in accordance with Subsection (5)(a)(i)
380 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 described
414 in Subsection (7)(a) equal to the same percentage that the city legislative body distributes to
415 that rural city hospital in accordance with Section 59-12-805 for the calendar year ending on
416 the December 31 immediately preceding the first day of the fiscal year for which the city
417 legislative body receives the distribution in accordance with Subsection (5).
418 (c) A rural city hospital that receives a distribution in accordance with this Subsection
419 (7) shall expend that distribution for the same purposes for which monies generated by a tax
420 under Section 59-12-804 may be expended.
421 (8) Any monies remaining in the Rural Health Care Facilities Fund at the end of a
422 fiscal year after the State Tax Commission makes the distributions required by this section
423 shall lapse into the General Fund.
424 Section 9. Section 31A-3-103 is amended to read:
425 31A-3-103. Fees.
426 (1) For purposes of this section:
427 [
428 [
429 commissioner to perform the duties imposed by this title including:
430 (i) issuing and renewing licenses and certificates of authority;
431 (ii) filing policy forms;
432 (iii) reporting agent appointments and terminations; and
433 (iv) filing annual statements.
434 [
435 than once each year.
436 (2) [
437 Section 63J-1-303 .
438 [
439 [
440
441 [
442 [
443
444 [
445
446
447 [
448 [
449 [
450 [
451 [
452 (3) (a) A fee approved by the Legislature pursuant to this [
453 be deposited into the General Fund for appropriation by the Legislature.
454 [
455 that relates to the use of electronic or other similar technology to provide the services of the
456 department shall be deposited into the General Fund as a dedicated credit to be used by the
457 department to provide services through use of electronic commerce or other similar technology.
458 (4) The commissioner shall separately publish the schedule of fees approved by the
459 Legislature and make it available upon request for $1 per copy. This fee schedule shall also be
460 included in any compilation of rules promulgated by the commissioner.
461 (5) The commissioner shall, by rule, establish the deadlines for payment of any fee
462 established by the department in accordance with this section.
463 Section 10. Section 38-11-201 is amended to read:
464 38-11-201. Residence Lien Recovery Fund.
465 (1) There is created a restricted special revenue fund called the "Residence Lien
466 Recovery Fund."
467 (2) (a) The fund consists of all amounts collected by the division in accordance with
468 Section 38-11-202 .
469 (b) (i) The division shall deposit the funds in an account with the state treasurer.
470 (ii) The division shall record the funds in the Residence Lien Recovery Fund.
471 (c) The fund shall earn interest.
472 (3) The division shall employ personnel and resources necessary to administer the fund
473 and shall use fund monies in accordance with Sections 38-11-203 and 38-11-204 and to pay the
474 costs charged to the fund by the attorney general.
475 (4) Costs incurred by the division for administering the fund shall be paid out of fund
476 monies.
477 (5) The Division of Finance shall report annually to the Legislature, the division, and
478 the board. The report shall state:
479 (a) amounts received by the fund;
480 (b) disbursements from the fund;
481 (c) interest earned and credited to the fund; and
482 (d) the fund balance.
483 (6) (a) For purposes of establishing and assessing [
484
485 for fiscal year 1995-96.
486 (b) The department shall submit its fee schedule to the Legislature for its approval at
487 the 1996 Annual General Session.
488 Section 11. Section 53-2-404 is amended to read:
489 53-2-404. State costs for emergency disaster services.
490 (1) Subject to this section and Section 53-2-403 , the division shall use monies
491 described in Subsection 53-2-403 (1)[
492 services.
493 (2) Monies paid by the division under this section to government entities and private
494 persons providing emergency disaster services are subject to Title 63G, Chapter 6, Utah
495 Procurement Code.
496 Section 12. Section 63J-1-102 is enacted to read:
497
498
499 63J-1-102. Definitions.
500 (1) "Dedicated credits" means collections by an agency that are deposited directly into
501 an account for expenditure on a separate line item and program.
502 (2) "Federal revenues" means collections by an agency from a federal source that are
503 deposited into an account for expenditure on a separate line item and program.
504 (3) "Fixed collections" means collections that are:
505 (a) fixed at a specific amount by law or by an appropriation act; and
506 (b) required to be deposited into a separate line item and program.
507 (4) "Free revenue" includes:
508 (a) collections that are required by law to be deposited in:
509 (i) the General Fund;
510 (ii) the Education Fund;
511 (iii) the Uniform School Fund; or
512 (iv) the Transportation Fund;
513 (b) collections that are not otherwise designated by law;
514 (c) collections that are not externally restricted; and
515 (d) collections that are not included in an approved work program.
516 (5) "Major revenue types" means:
517 (a) free revenue;
518 (b) restricted revenue;
519 (c) dedicated credits; and
520 (d) fixed collections.
521 (6) "Restricted revenue" means collections that are:
522 (a) deposited, by law, into a separate fund, subfund, or account; and
523 (b) designated for a specific program or purpose.
524 Section 13. Section 63J-1-104 , which is renumbered from Section 63J-1-404 is
525 renumbered and amended to read:
526 [
527 credited by a state agency.
528 [
529
530 [
531 (i) account for revenues in accordance with generally accepted accounting principles;
532 and
533 (ii) use the major revenue types in internal accounting.
534 [
535 (i) use the major revenue types [
536 (ii) deposit revenues and other public funds received by them by following the
537 procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
538 (iii) expend revenues and public funds as required by this chapter.
539 [
540 [
541 [
542 [
543 [
544 [
545 [
546
547 [
548 [
549 [
550 [
551 [
552 appropriated by the Legislature.
553 [
554 remain unexpended at the end of the fiscal year lapse to the source fund unless the Legislature
555 provides by law that those funds are nonlapsing.
556 [
557
558 [
559 [
560 the specific purpose or program designated by law.
561 [
562 appropriated from it by the Legislature, the Division of Finance may reduce the appropriation
563 to a level that ensures that the fund equity is not less than zero.
564 [
565 remain unexpended at the end of the fiscal year lapse to the restricted fund unless the
566 Legislature provides by law that those funds, or the program or line item financed by those
567 funds, are nonlapsing.
568 [
569
570 [
571 program or line item.
572 [
573 (b) (i) Except as provided in Subsection (4)(b)(ii), an agency may not expend dedicated
574 credits in excess of the amount appropriated as dedicated credits by the Legislature [
575
576 [
577 (ii) In order to expend dedicated credits in excess of the amount appropriated as
578 dedicated credits by the Legislature, the following procedure shall be followed:
579 (A) The agency seeking to make the excess expenditure shall:
580 (I) develop a new work program [
581
582
583
584
585
586
587 (Aa) consists of the currently approved work program and the excess expenditure
588 sought to be made; and
589 (Bb) complies with the requirements of Section 63J-2-202 ;
590 (II) prepare a written justification for the new work program that sets forth the purpose
591 and necessity of the excess expenditure; and
592 (III) submit the new work program and the written justification for the new work
593 program to the Division of Finance.
594 [
595
596
597 information available to the Governor's Office of Planning and Budget and the legislative fiscal
598 analyst.
599 [
600
601 [
602
603 (iii) An expenditure of dedicated credits in excess of amounts appropriated as
604 dedicated credits by the Legislature may not be used to permanently increase personnel within
605 the agency unless:
606 (A) the increase is approved by the Legislature; or
607 (B) the monies are deposited as dedicated credits in:
608 (I) the Drug Stamp Tax Fund under Section 59-19-105 ; or
609 (II) a line item covering tuition or federal vocational funds at an institution of higher
610 education.
611 [
612 fiscal year unless the Legislature has designated the entire program or line item that is partially
613 or fully funded from dedicated credits as nonlapsing.
614 (ii) The Division of Finance shall determine the appropriate fund into which the
615 dedicated credits lapse.
616 [
617 [
618 [
619 [
620 collections that an agency may expend.
621 [
622 collections established by law, the agency's authority to expend is limited to the amount of
623 fixed collections that it receives.
624 [
625 expendable fixed collections established by law, those excess amounts lapse to the General
626 Fund, the Education Fund, the Uniform School Fund, or the Transportation Fund as designated
627 by the director of the Division of Finance at the end of the fiscal year.
628 [
629 program or line item that is funded by more than one major revenue type[
630 (a) the agency shall expend its dedicated credits and fixed collections first[
631 (b) [
632
633 both free revenue and restricted revenue, an agency shall expend those [
634 based upon a proration of the amounts appropriated from each of those major revenue types.
635 Section 14. Section 63J-1-201 is amended to read:
636
637 63J-1-201. Governor to submit budget to Legislature -- Contents -- Preparation --
638 Appropriations based on current tax laws and not to exceed estimated revenues.
639 (1) The governor shall deliver, not later than 30 days before the date the Legislature
640 convenes in the annual general session, a confidential draft copy of the governor's proposed
641 budget recommendations to the Office of the Legislative Fiscal Analyst.
642 [
643 days of the annual general session of the Legislature [
644
645 Legislature [
646 (i) a proposed budget for the ensuing fiscal year;
647 (ii) a schedule for all of the proposed appropriations of the budget, with each
648 appropriation clearly itemized and classified[
649 (iii) the statement described in Subsection (2)(c); and
650 (iv) as applicable, a document showing proposed expenditures and estimated revenues
651 that are based on changes in state tax laws or rates.
652 (b) The proposed budget [
653 (i) a projection of estimated revenues and expenditures for the next fiscal year; [
654 (ii) the source of all direct, indirect, [
655 grants or assistance programs included in the budget[
656 [
657
658
659 [
660 (iii) a complete plan of proposed expenditures and estimated revenues for the next
661 fiscal year that is based upon the current fiscal year state tax laws and rates[
662 [
663
664 (iv) an itemized estimate of the proposed appropriations for:
665 (A) the Legislative Department as certified to the governor by the president of the
666 Senate and the speaker of the House;
667 (B) the Executive Department;
668 (C) the Judicial Department as certified to the governor by the state court
669 administrator;
670 (D) payment and discharge of the principal and interest of the indebtedness of the state;
671 (E) the salaries payable by the state under the Utah Constitution or under law for the
672 lease agreements planned for the next fiscal year;
673 (F) other purposes that are set forth in the Utah Constitution or under law; and
674 (G) all other appropriations;
675 (v) for each line item, the average annual dollar amount of staff funding associated
676 with all positions that were vacant during the last fiscal year; and
677 (vi) deficits or anticipated deficits.
678 [
679 [
680 [
681 funds of the state;
682 [
683 of the period covered by the budget;
684 [
685 into by state agencies;
686 [
687 the next fiscal year[
688
689 63A-5-103 (2);
690 [
691 features of the budget and any suggestion as to methods for the reduction of expenditures or
692 increase of the state's revenue; and
693 [
694 Section [
695 [
696 [
697
698 [
699 [
700
701 [
702
703 [
704
705 [
706 [
707 [
708 [
709 governor shall require [
710 education officials, all heads of executive and administrative departments and state institutions,
711 bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
712 state [
713 appropriations, to provide itemized estimates of revenues and expenditures.
714 (ii) [
715 at times as the governor may direct[
716 for program productivity and performance measures, where appropriate, with emphasis on
717 outcome indicators.
718 [
719
720 [
721
722
723 [
724 representatives of public and higher education, state departments and institutions, and other
725 institutions or individuals applying for state appropriations to attend budget meetings.
726 (c) (i) (A) In submitting the budgets for the Departments of Health and Human
727 Services and the Office of the Attorney General, the governor shall consider a separate
728 recommendation in the governor's budget for funds to be contracted to:
729 (I) local mental health authorities under Section 62A-15-110 ;
730 (II) local substance abuse authorities under Section 62A-15-110 ;
731 (III) area agencies under Section 62A-3-104.2 ;
732 (IV) programs administered directly by and for operation of the Divisions of Substance
733 Abuse and Mental Health and Aging and Adult Services;
734 (V) local health departments under Title 26A, Chapter 1, Local Health Departments;
735 and
736 (VI) counties for the operation of Children's Justice Centers under Section 67-5b-102 .
737 (B) In the governor's budget recommendations under Subsections (3)(c)(i)(A)(I), (II),
738 and (III), the governor shall consider an amount sufficient to grant local health departments,
739 local mental health authorities, local substance abuse authorities, and area agencies the same
740 percentage increase for wages and benefits that the governor includes in the governor's budget
741 for persons employed by the state.
742 (C) If the governor does not include in the governor's budget an amount sufficient to
743 grant the increase described in Subsection (3)(c)(i)(B), the governor shall include a message to
744 the Legislature regarding the governor's reason for not including that amount.
745 (ii) (A) In submitting the budget for the Department of Agriculture, the governor shall
746 consider an amount sufficient to grant local conservation districts and Utah Association of
747 Conservation District employees the same percentage increase for wages and benefits that the
748 governor includes in the governor's budget for persons employed by the state.
749 (B) If the governor does not include in the governor's budget an amount sufficient to
750 grant the increase described in Subsection (3)(c)(ii)(A), the governor shall include a message to
751 the Legislature regarding the governor's reason for not including that amount.
752 (iii) (A) In submitting the budget for the Utah State Office of Rehabilitation and the
753 Division of Services for People with Disabilities, the Division of Child and Family Services,
754 and the Division of Juvenile Justice Services within the Department of Human Services, the
755 governor shall consider an amount sufficient to grant employees of corporations that provide
756 direct services under contract with those divisions, the same percentage increase for
757 cost-of-living that the governor includes in the governor's budget for persons employed by the
758 state.
759 (B) If the governor does not include in the governor's budget an amount sufficient to
760 grant the increase described in Subsection (3)(c)(iii)(A), the governor shall include a message
761 to the Legislature regarding the governor's reason for not including that amount.
762 (iv) (A) The Families, Agencies, and Communities Together Council may propose a
763 budget recommendation to the governor for collaborative service delivery systems operated
764 under Section 63M-9-402 , as provided under Subsection 63M-9-201 (4)(e).
765 (B) The Legislature may, through a specific program schedule, designate funds
766 appropriated for collaborative service delivery systems operated under Section 63M-9-402 .
767 (v) The governor shall include in the governor's budget the state's portion of the budget
768 for the Utah Communications Agency Network established in Title 63C, Chapter 7, Utah
769 Communications Agency Network Act.
770 (vi) (A) The governor shall include a separate recommendation in the governor's
771 budget for funds to maintain the operation and administration of the Utah Comprehensive
772 Health Insurance Pool.
773 (B) In making the recommendation the governor may consider:
774 (I) actuarial analysis of growth or decline in enrollment projected over a period of at
775 least three years;
776 (II) actuarial analysis of the medical and pharmacy claims costs projected over a period
777 of at least three years;
778 (III) the annual Medical Care Consumer Price Index;
779 (IV) the annual base budget for the pool established by the Commerce and Revenue
780 Appropriations Subcommittee for each fiscal year;
781 (V) the growth or decline in insurance premium taxes and fees collected by the State
782 Tax Commission and the Insurance Department; and
783 (VI) the availability of surplus General Fund revenue under Section 63J-1-312 and
784 Subsection 59-14-204 (5)(b).
785 [
786 Legislative Department, the Judicial Department, and those providing for the payment of
787 principal and interest to the state debt and for the salaries and expenditures specified by the
788 Utah Constitution or under the laws of the state.
789 (ii) The estimate for the Legislative Department, as certified by the presiding officers
790 of both houses, shall be included in the budget without revision by the governor.
791 (iii) The estimate for the Judicial Department, as certified by the state court
792 administrator, shall also be included in the budget without revision, but the governor may make
793 separate recommendations on the estimate.
794 [
795 may not exceed the estimated revenues from taxes, fees, and all other sources for the next
796 ensuing fiscal year.
797 [
798
799 [
800
801
802 [
803 [
804 [
805 [
806
807 [
808
809 [
810 [
811
812
813
814
815 [
816
817
818 [
819
820
821
822 [
823
824
825 [
826
827
828
829
830
831
832 [
833
834
835 [
836
837
838 [
839
840 [
841
842
843 [
844
845
846 [
847 [
848
849 [
850
851 [
852 [
853
854 [
855
856 [
857
858 (4) In considering the factors in Subsections (3)(c)(vi)(B)(I), (II), and (III) and
859 Subsections (5)(b)(ii)(A), (B), and (C), the governor and the Legislature may consider the
860 actuarial data and projections prepared for the board of the Utah Comprehensive Health
861 Insurance Pool as it develops its financial statements and projections for each fiscal year.
862 [
863 amount sufficient to grant local health departments, local mental health authorities, local
864 substance abuse authorities, area agencies on aging, conservation districts, and Utah
865 Association of Conservation District employees the same percentage increase for wages and
866 benefits that is included in the budget for persons employed by the state.
867 [
868 Insurance Pool, the Legislature shall determine an amount that is sufficient to fund the pool for
869 each fiscal year.
870 [
871 Legislature shall consider factors it determines are appropriate, which may include:
872 [
873 at least three years;
874 [
875 period of at least three years;
876 [
877 [
878 Revenue Appropriations Subcommittee for each fiscal year;
879 [
880 commission and the insurance department from the previous fiscal year; and
881 [
882 63J-1-312 and Subsection 59-14-204 (5)(b).
883 [
884 Health Insurance Pool as determined under Subsection [
885 [
886 31A-29-120 ; and
887 [
888 management of the Utah Comprehensive Health Insurance Pool created by Section
889 31A-29-104 .
890 [
891
892
893
894 [
895
896 (6) If any item of the budget as enacted is held invalid upon any ground, the invalidity
897 does not affect the budget itself or any other item in it.
898 Section 15. Section 63J-1-206 , which is renumbered from Section 63J-1-301 is
899 renumbered and amended to read:
900 [
901 Restrictions on expenditures -- Transfer of funds -- Exclusion.
902 (1) As used in this section, "work program" means a budget that contains revenues and
903 expenditures for specific purposes or functions within an item of appropriation.
904 (2) (a) Except as provided in Subsection (2)(b), (3)(e), or where expressly exempted in
905 the appropriating act:
906 [
907 the terms and conditions set forth in this chapter[
908 (ii) any department, agency, or institution[
909
910
911 requirements of this chapter.
912 [
913
914
915
916 (b) This section does not apply to:
917 (i) the Legislature and its committees; and
918 (ii) the Investigation Account of the Water Resources Construction Fund, which is
919 governed by Section 73-10-8 .
920 (3) (a) Each appropriation item is to be expended subject to any schedule of programs
921 and any restriction attached to the appropriation item, as designated by the Legislature.
922 (b) Each schedule of programs or restriction attached to an appropriation item:
923 (i) is a restriction or limitation upon the expenditure of the respective appropriation
924 made;
925 (ii) does not itself appropriate any money; and
926 (iii) is not itself an item of appropriation.
927 (c) An appropriation or any surplus of any appropriation may not be diverted from any
928 department, agency, institution, or division to any other department, agency, institution, or
929 division.
930 (d) The money appropriated subject to a schedule or programs or restriction may be
931 used only for the purposes authorized.
932 (e) [
933
934
935 the [
936 procedure shall be followed:
937 (i) The department, agency, or institution seeking to make the transfer shall prepare:
938 (A) a new work program [
939 consists of the currently approved work program and the transfer sought to be made; and
940 (B) a written justification for the new work program that sets forth the purpose and
941 necessity for [
942 [
943
944 [
945
946 (ii) The Division of Finance shall process the new work program with written
947 justification and make this information available to the Governor's Office of Planning and
948 Budget and the legislative fiscal analyst.
949 (f) Monies may not be transferred from one item of appropriation to any other item of
950 appropriation.
951 [
952
953
954 Section 16. Section 63J-1-209 , which is renumbered from Section 63J-1-406 is
955 renumbered and amended to read:
956 [
957 -- Work programs -- Allotments and expenditures.
958 (1) The director of finance shall exercise accounting control over all state departments,
959 institutions, and agencies other than the Legislature and legislative committees.
960 (2) (a) The director shall require the head of each department to submit, by May 15 of
961 each year, a work program for the next fiscal year.
962 (b) The director may require any department to submit a work program for any other
963 period.
964 (3) The work program shall include appropriations and all other funds from any source
965 made available to the department for its operation and maintenance for the period and program
966 authorized by the appropriation act.
967 (4) [
968 63J-1-206 (3)(e), the Division of Finance shall, upon request from the governor, revise, alter,
969 decrease, or change work programs.
970 (5) Notwithstanding the requirements of Title 63J, Chapter 2, Revenue Procedures and
971 Control Act, the aggregate of the work program changes may not exceed the total
972 appropriations or other funds from any source that are available to the department line item for
973 the fiscal year in question.
974 (6) The [
975 when approved by the governor, to:
976 (a) the head of the department concerned; and [
977 (b) the legislative analyst.
978 (7) Upon request, review, and approval by the governor, the [
979 Division of Finance shall permit all expenditures to be made from the appropriations or other
980 funds from any source on the basis of those work programs.
981 [
982
983
984 [
985
986 (8) (a) The Division of Finance shall, through statistical sampling methods or other
987 means, audit all claims against the state for which an appropriation has been made.
988 [
989 of Finance need only certify the availability of funds when the requisitions or proposed
990 expenditures are:
991 (i) for the judicial branch; or
992 (ii) to pay the salaries or compensation of officers fixed by law.
993 Section 17. Section 63J-1-215 , which is renumbered from Section 63J-1-311 is
994 renumbered and amended to read:
995 [
996 Preference for purchasing card accounts -- Cash advances -- Revolving fund established
997 by law excepted -- Elimination of cash funds.
998 (1) Before any new petty cash funds may be established, the commission, department,
999 or agency requesting the fund or funds shall apply in writing to the [
1000
1001 (a) the reasons [
1002 (b) the amount requested[
1003 (c) the reasons why a purchasing card account is not sufficient to meet the needs of the
1004 commission, department, or agency.
1005 [
1006
1007
1008 [
1009
1010
1011
1012
1013 (2) (a) The Division of Finance shall review the application and make a determination
1014 that:
1015 (i) no cash fund or purchasing card account should be established;
1016 (ii) a purchasing card account should be established; or
1017 (iii) a cash fund should be established using monies in the state treasury.
1018 (b) When making a determination under Subsection (2)(a), the Division of Finance
1019 shall recommend a purchasing card account in lieu of a cash fund unless there is significant
1020 evidence that a purchasing account is not sufficient to meet the needs of the commission,
1021 department, or agency.
1022 [
1023 section.
1024 (4) The Division of Finance is authorized to review and close cash funds if the division
1025 determines that a purchasing card account will adequately meet the needs of the commission,
1026 department, or agency.
1027 Section 18. Section 63J-1-217 , which is renumbered from Section 63J-1-405 is
1028 renumbered and amended to read:
1029 [
1030 Prorating budget income shortfall.
1031 (1) [
1032 Expenditures of departments, agencies, and institutions of state government shall be kept
1033 within revenues available for such expenditures.
1034 (2) (a) [
1035 overexpended.
1036 (b) [
1037 the close of a fiscal year:
1038 (i) the director of the Division of Finance may make payments from the line item to
1039 vendors for goods or services that were received on or before June 30; and
1040 (ii) the director of the Division of Finance shall immediately reduce the agency's line
1041 item budget in the current year by the amount of the overexpenditure.
1042 (c) Each agency with an overexpended line item shall [
1043 (i) prepare a written report explaining the reasons for the overexpenditure; and [
1044 (ii) present the report to:
1045 (A) the Board of Examiners as required by Section 63G-9-301 [
1046 [
1047
1048
1049
1050 (B) the Office of the Legislative Fiscal Analyst.
1051 (3) (a) As used in this Subsection (3):
1052 (i) "Education Fund budget deficit" has the same meaning as in Section 63J-1-312 ; and
1053 (ii) "General Fund budget deficit" has the same meaning as in Section 63J-1-312 .
1054 (b) If an Education Fund budget deficit or a General Fund budget deficit exists, the
1055 governor shall:
1056 (i) direct state agencies to reduce commitments and expenditures by an amount
1057 proportionate to the amount of the deficiency; and
1058 (ii) direct the Division of Finance to reduce allotments to institutions of higher
1059 education by an amount proportionate to the amount of the deficiency.
1060 (c) The governor's directions under Subsection (3)(b) are rescinded when the
1061 Legislature rectifies the Education Fund budget deficit and the General Fund budget deficit.
1062 (4) (a) [
1063
1064 revenue within the work program of the fiscal year, unless the governor allocates [
1065 monies from the governor's emergency appropriations.
1066 (b) All allocations made from the governor's emergency appropriations shall be
1067 reported to the budget subcommittee of the Legislative Management Committee by notifying
1068 the Office of the Legislative Fiscal Analyst at least 15 days before the effective date of the
1069 allocation.
1070 (c) Emergency appropriations shall be allocated only to support activities having
1071 existing legislative approval and appropriation, and may not be allocated to any activity or
1072 function rejected directly or indirectly by the Legislature.
1073 Section 19. Section 63J-1-504 , which is renumbered from Section 63J-1-303 is
1074 renumbered and amended to read:
1075 [
1076 Establishing and assessing fees without legislative approval.
1077 (1) As used in this section:
1078 (a) (i) "Agency" means each department, commission, board, council, agency,
1079 institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
1080 unit, bureau, panel, or other administrative unit of the state.
1081 (ii) "Agency" does not mean the Legislature or its committees.
1082 (b) "Fee agency" means any agency that is authorized to establish [
1083 (c) "Fee schedule" means the complete list of [
1084 and the amount of those fees.
1085 [
1086
1087 (2) Each fee agency shall:
1088 (a) adopt a schedule of fees assessed for services provided by the fee agency that are:
1089 (i) reasonable, fair, and reflect the cost of services provided; and
1090 (ii) established according to a cost formula determined by the director of the
1091 Governor's Office of Planning and Budget and the director of the Division of Finance in
1092 conjunction with the agency seeking to establish the [
1093 [
1094 (b) (i) present each proposed fee at a public hearing, subject to the requirements of
1095 Title 52, Chapter 4, Open and Public Meetings Act; and
1096 (ii) increase [
1097 on the results of the public hearing;
1098 (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as
1099 part of the agency's annual appropriations request;
1100 (d) where necessary, modify the fee schedule to implement the Legislature's actions;
1101 and
1102 (e) deposit all [
1103 (3) A fee agency may not:
1104 (a) set [
1105 (b) charge or collect any [
1106 fee agency has complied with the procedures and requirements of Subsection (5).
1107 (4) The Legislature may approve, increase or decrease and approve, or reject any
1108 [
1109 (5) (a) After the public hearing required by this section, a fee agency may establish and
1110 assess [
1111 (i) the Legislature creates a new program that is to be funded by [
1112 set by the Legislature; and
1113 (ii) the new program's effective date is before the Legislature's next annual general
1114 session; or
1115 (iii) the Division of Occupational and Professional licensing makes a special
1116 assessment against qualified beneficiaries under the Residence Lien Restriction and Lien
1117 Recovery Fund Act as provided in Subsection 38-11-206 (1).
1118 (b) Each fee agency shall submit its fee schedule or special assessment amount to the
1119 Legislature for its approval at a special session, if allowed in the governor's call, or at the next
1120 annual general session of the Legislature, whichever is sooner.
1121 (c) Unless the fee schedule is approved by the Legislature, the fee agency may not
1122 collect a [
1123 general session following the session that established the new program.
1124 (6) (a) Each fee agency that wishes to increase any [
1125 obtain legislative approval for the fee increase as provided in this subsection before assessing
1126 the new [
1127 (b) Each fee agency that wishes to increase any [
1128 submit to the governor as part of the agency's annual appropriation request a list that identifies:
1129 (i) the title or purpose of the [
1130 (ii) the present amount of the [
1131 (iii) the proposed new amount of the [
1132 (iv) the percent that the [
1133 the higher fee; and
1134 (v) the reason for the increase in the [
1135 (c) (i) The governor may review and approve, modify and approve, or reject the
1136 [
1137 (ii) The governor shall transmit the list required by Subsection (6)(b), with any
1138 modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
1139 (d) Bills approving any [
1140 the beginning of the Legislature's annual general session, if possible.
1141 Section 20. Section 63J-1-601 , which is renumbered from Section 63J-1-401 is
1142 renumbered and amended to read:
1143 [
1144 Funds not to be closed out -- Pending claims -- Transfer of amounts from item of
1145 appropriation -- Nonlapsing accounts and funds -- Institutes of higher education to
1146 report unexpended balances.
1147 (1) As used in this section, "transaction control number" means the unique numerical
1148 identifier established by the Department of Health to track each medical claim, which indicates
1149 the date upon which the claim is entered.
1150 (2) On or before August 31 of each fiscal year, the director of the Division of Finance
1151 shall close out to the proper fund or account all remaining unexpended and unencumbered
1152 balances of appropriations made by the Legislature, except:
1153 (a) those funds classified under Title 51, Chapter 5, Funds Consolidation Act as:
1154 (i) enterprise funds;
1155 (ii) internal service funds;
1156 (iii) trust and agency funds;
1157 (iv) capital projects funds;
1158 [
1159 (v) discrete component unit funds;
1160 (vi) debt service funds; and
1161 (vii) permanent funds;
1162 [
1163 (b) those revenue collections, appropriations from a fund or account, or appropriations
1164 to a program that are designated as nonlapsing under Section 63J-1-602 ;
1165 (c) restricted special revenue funds, unless specifically directed to close out the fund in
1166 the fund's enabling legislation;
1167 (d) acquisition and development funds appropriated to the Division of Parks and
1168 Recreation;
1169 (e) funds encumbered to pay purchase orders issued prior to May 1 for capital
1170 equipment if delivery is expected before June 30; and
1171 (f) unexpended and unencumbered balances of appropriations that meet the
1172 requirements of Section [
1173 [
1174 (3) (a) Liabilities and related expenses for goods and services received on or before
1175 June 30 shall be recognized as expenses due and payable from appropriations made prior to
1176 June 30.
1177 (b) The liability and related expense shall be recognized within time periods
1178 established by the Division of Finance but shall be recognized not later than August 31.
1179 (c) Liabilities and expenses not so recognized may be paid from regular departmental
1180 appropriations for the subsequent fiscal year, if these claims do not exceed unexpended and
1181 unencumbered balances of appropriations for the years in which the obligation was incurred.
1182 (d) No amounts may be transferred from an item of appropriation of any department,
1183 institution, or agency into the Capital Projects Fund or any other fund without the prior express
1184 approval of the Legislature.
1185 (4) (a) For purposes of this chapter, claims processed under the authority of Title 26,
1186 Chapter 18, Medical Assistance Act:
1187 (i) may not be considered a liability or expense to the state for budgetary purposes
1188 unless they are received by the Division of Health Care Financing within the time periods
1189 established by the Division of Finance under Subsection (3)(b); and
1190 (ii) are not subject to the requirements of Subsection (3)(c).
1191 (b) The transaction control number recorded on each claim invoice by the division is
1192 considered the date of receipt.
1193 (5) Any balance from an appropriation to a state institution of higher education that
1194 remains unexpended at the end of the fiscal year shall be reported to the Division of Finance by
1195 the September 1 following the close of the fiscal year.
1196 Section 21. Section 63J-1-602 is enacted to read:
1197 63J-1-602. Nonlapsing accounts and funds.
1198 (1) The following revenue collections, funds, accounts, appropriations from a fund or
1199 account, and appropriations to a program are nonlapsing:
1200 (a) appropriations made to the Legislature and its committees;
1201 (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
1202 (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
1203 (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
1204 (e) funds collected by pesticide dealer license registration fees, as provided in Section
1205 4-14-3 ;
1206 (f) funds collected by pesticide applicator business registration fees, as provided in
1207 Section 4-14-13 ;
1208 (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
1209 (h) funds deposited as dedicated credits under the Insect Infestation Emergency Control
1210 Act, as provided in Section 4-35-6 ;
1211 (i) the Percent-for-Art Program created in Section 9-6-404 ;
1212 (j) the Centennial History Fund created in Section 9-8-604 ;
1213 (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;
1214 (l) the Navajo Revitalization Fund created in Section 9-11-104 ;
1215 (m) the LeRay McAllister Critical Land Conservation Program created in Section
1216 11-38-301 ;
1217 (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
1218 (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided in
1219 Section 19-6-120 ;
1220 (p) an appropriation made to the Division of Wildlife Resources for the appraisal and
1221 purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
1222 (q) award monies under the Crime Reduction Assistance Program, as provided under
1223 Section 24-1-19 ;
1224 (r) funds collected from the emergency medical services grant program, as provided in
1225 Section 26-8a-207 ;
1226 (s) fees and other funding available to purchase training equipment and to administer
1227 tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
1228 (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
1229 federal Social Security Act, as provided in Section 26-18-3 ;
1230 (u) the Utah Health Care Workforce Financial Assistance Program created in Section
1231 26-46-102 ;
1232 (v) monies collected from subscription fees for publications prepared or distributed by
1233 the insurance commissioner, as provided in Section 31A-2-208 ;
1234 (w) monies received by the Insurance Department for administering, investigating
1235 under, and enforcing the Insurance Fraud Act, as provided in Section 31A-31-108 ;
1236 (x) certain monies received for penalties paid under the Insurance Fraud Act, as
1237 provided in Section 31A-31-109 ;
1238 (y) the fund for operating the state's Federal Health Care Tax Credit Program, as
1239 provided in Section 31A-38-104 ;
1240 (z) certain funds in the Department of Workforce Services' program for the education,
1241 training, and transitional counseling of displaced homemakers, as provided in Section
1242 35A-3-114 ;
1243 (aa) the Employment Security Administration Fund created in Section 35A-4-505 ;
1244 (bb) the Special Administrative Expense Fund created in Section 35A-4-506 ;
1245 (cc) funding for a new program or agency that is designated as nonlapsing under
1246 Section 36-24-101 ;
1247 (dd) the Oil and Gas Conservation Account created in Section 40-6-14.5 ;
1248 (ee) funds available to the State Tax Commission for purchase and distribution of
1249 license plates and decals, as provided in Section 41-1a-1201 ;
1250 (ff) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
1251 provided in Section 41-1a-1221 ;
1252 (gg) certain fees collected for administering and enforcing the Motor Vehicle Business
1253 Regulation Act, as provided in Section 41-3-601 ;
1254 (hh) certain fees for the cost of electronic payments under the Motor Vehicle Business
1255 Regulation Act, as provided in Section 41-3-604 ;
1256 (ii) the Off-Highway Access and Education Restricted Account created in Section
1257 41-22-19.5 ;
1258 (jj) certain fees for the cost of electronic payments under the Motor Vehicle Act, as
1259 provided in Section 41-22-36 ;
1260 (kk) monies collected under the Notaries Public Reform Act, as provided under
1261 46-1-23 ;
1262 (ll) certain funds associated with the Law Enforcement Operations Account, as
1263 provided in Section 51-9-411 ;
1264 (mm) the Public Safety Honoring Heroes Restricted Account created in Section
1265 53-1-118 ;
1266 (nn) funding for the Search and Rescue Financial Assistance Program, as provided in
1267 Section 53-2-107 ;
1268 (oo) appropriations made to the Department of Public Safety from the Department of
1269 Public Safety Restricted Account, as provided in Section 53-3-106 ;
1270 (pp) appropriations to the Motorcycle Rider Education Program, as provided in Section
1271 53-3-905 ;
1272 (qq) fees collected by the State Fire Marshal Division under the Utah Fire Prevention
1273 and Safety Act, as provided in Section 53-7-314 ;
1274 (rr) the DNA Specimen Restricted Account created in Section 53-10-407 ;
1275 (ss) the minimum school program, as provided in Section 53A-17a-105 ;
1276 (tt) certain funds appropriated from the Uniform School Fund to the State Board of
1277 Education for new teacher bonus and performance-based compensation plans, as provided in
1278 Section 53A-17a-148 ;
1279 (uu) certain funds appropriated from the Uniform School Fund to the State Board of
1280 Education for implementation of proposals to improve mathematics achievement test scores, as
1281 provided in Section 53A-17a-152 ;
1282 (vv) the School Building Revolving Account created in Section 53A-21-401 ;
1283 (ww) monies received by the State Office of Rehabilitation for the sale of certain
1284 products or services, as provided in Section 53A-24-105 ;
1285 (xx) the State Board of Regents, as provided in Section 53B-6-104 ;
1286 (yy) certain funds appropriated from the General Fund to the State Board of Regents
1287 for teacher preparation programs, as provided in Section 53B-6-104 ;
1288 (zz) a certain portion of monies collected for administrative costs under the School
1289 Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
1290 (aaa) certain surcharges on residence and business telecommunications access lines
1291 imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
1292 (bbb) certain fines collected by the Division of Occupational and Professional
1293 Licensing for violation of unlawful or unprofessional conduct that are used for education and
1294 enforcement purposes, as provided in Section 58-17b-505 ;
1295 (ccc) the Nurse Education and Enforcement Fund created in Section 58-31b-103 ;
1296 (ddd) funding of the controlled substance database, as provided in Section 58-37-7.7 ;
1297 (eee) the Certified Nurse Midwife Education and Enforcement Fund created in Section
1298 58-44a-103 ;
1299 (fff) funding for the building inspector's education program, as provided in Section
1300 58-56-9 ;
1301 (ggg) certain fines collected by the Division of Occupational and Professional
1302 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
1303 provided in Section 58-63-103 ;
1304 (hhh) the Professional Geologist Education and Enforcement Fund created in Section
1305 58-76-103 ;
1306 (iii) certain monies in the Water Resources Conservation and Development Fund, as
1307 provided in Section 59-12-103 ;
1308 (jjj) funds paid to the Division of Real Estate for the cost of a criminal background
1309 check for broker and sales agent licenses, as provided in Section 61-2-9 ;
1310 (kkk) the Utah Housing Opportunity Restricted Account created in Section 61-2-28 ;
1311 (lll) funds paid to the Division of Real Estate for the cost of a criminal background
1312 check for a mortgage loan license, as provided in Section 61-2c-202 ;
1313 (mmm) funds paid to the Division of Real Estate in relation to examination of records
1314 in an investigation, as provided in Section 61-2c-401 ;
1315 (nnn) certain funds donated to the Department of Human Services, as provided in
1316 Section 62A-1-111 ;
1317 (ooo) certain funds donated to the Division of Child and Family Services, as provided
1318 in Section 62A-4a-110 ;
1319 (ppp) the Mental Health Therapist Grant and Scholarship Program, as provided in
1320 Section 62A-13-109 ;
1321 (qqq) assessments for DUI violations that are forwarded to an account created by a
1322 county treasurer, as provided in Section 62A-15-503 ;
1323 (rrr) appropriations to the Division of Services for People with Disabilities, as provided
1324 in Section 62A-5-102 ;
1325 (sss) certain donations to the Division of Substance Abuse and Mental Health, as
1326 provided in Section 62A-15-103 ;
1327 (ttt) certain funds received by the Division of Parks and Recreation from the sale or
1328 disposal of buffalo, as provided under Section 63-11-19.2 ;
1329 (uuu) revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
1330 Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
1331 (vvv) revenue for golf user fees at the Green River State Park, as provided under
1332 Section 63-11-19.6 ;
1333 (www) the Centennial Nonmotorized Paths and Trail Crossings Program created under
1334 Section 63-11a-503 ;
1335 (xxx) the Bonneville Shoreline Trail Program created under Section 63-11a-504 ;
1336 (yyy) the account for the Utah Geological Survey, as provided in Section 63-73-10 ;
1337 (zzz) the Risk Management Fund created under Section 63A-4-201 ;
1338 (aaaa) the Child Welfare Parental Defense Fund created in Section 63A-11-203 ;
1339 (bbbb) the Constitutional Defense Restricted Account created in Section 63C-4-103 ;
1340 (cccc) a portion of the funds appropriated to the Utah Seismic Safety Commission, as
1341 provided in Section 63C-6-104 ;
1342 (dddd) funding for the Medical Education Program administered by the Medical
1343 Education Council, as provided in Section 63C-8-102 ;
1344 (eeee) funds collected for publishing the Division of Administrative Rules'
1345 publications, as provided in Section 63G-3-402 ;
1346 (ffff) the appropriation to fund the Governor's Office of Economic Development's
1347 Enterprise Zone Act, as provided in Section 63M-1-416 ;
1348 (gggg) the Tourism Marketing Performance Account, as provided in Section
1349 63M-1-1406 ;
1350 (hhhh) certain funding for rural development provided to the Office of Rural
1351 Development in the Governor's Office of Economic Development, as provided in Section
1352 63M-1-1604 ;
1353 (iiii) certain monies in the Development for Disadvantaged Rural Communities
1354 Restricted Account, as provided in Section 63M-1-2003 ;
1355 (jjjj) certain monies in the Rural Broadband Service Fund, as provided in Section
1356 63M-1-2303 ;
1357 (kkkk) funds collected from monthly offender supervision fees, as provided in Section
1358 64-13-21.2 ;
1359 (llll) funds collected by the housing of state probationary inmates or state parole
1360 inmates, as provided in Subsection 64-13e-104 (2);
1361 (mmmm) the Sovereign Lands Management account created in Section 65A-5-1 ;
1362 (nnnn) certain forestry and fire control funds utilized by the Division of Forestry, Fire,
1363 and State Lands, as provided in Section 65A-8-103 ;
1364 (oooo) the Department of Human Resource Management user training program, as
1365 provided in Section 67-19-6 ;
1366 (pppp) funds for the University of Utah Poison Control Center program, as provided in
1367 Section 69-2-5.5 ;
1368 (qqqq) appropriations to the Transportation Corridor Preservation Revolving Loan
1369 Fund, as provided in Section 72-2-117 ;
1370 (rrrr) appropriations to the Local Transportation Corridor Preservation Fund, as
1371 provided in Section 72-2-117.5 ;
1372 (ssss) appropriations to the Tollway Restricted Special Revenue Fund, as provided in
1373 Section 77-2-120 ;
1374 (tttt) appropriations to the Aeronautics Construction Revolving Loan Fund, as provided
1375 in Section 77-2-122 ;
1376 (uuuu) appropriations to the State Park Access Highways Improvement Program, as
1377 provided in Section 72-3-207 ;
1378 (vvvv) the Traffic Noise Abatement Program created in Section 72-6-112 ;
1379 (wwww) certain funds received by the Office of the State Engineer for well drilling
1380 fines or bonds, as provided in Section 73-3-25 ;
1381 (xxxx) certain monies appropriated to increase the carrying capacity of the Jordan
1382 River that are transferred to the Division of Parks and Recreation, as provided in Section
1383 73-10e-1 ;
1384 (yyyy) certain fees for the cost of electronic payments under the State Boating Act, as
1385 provided in Section 73-18-25 ;
1386 (zzzz) certain monies appropriated from the Water Resources Conservation and
1387 Development Fund, as provided in Section 73-23-2 ;
1388 (aaaaa) the Lake Powell Pipeline Project Operation and Maintenance Fund created in
1389 Section 73-28-404 ;
1390 (bbbbb) certain funds in the Water Development and Flood Mitigation Reserve
1391 Account, as provided in Section 73-103-1 ;
1392 (ccccc) certain funds appropriated for compensation for special prosecutors, as
1393 provided in Section 77-10a-19 ;
1394 (ddddd) the Indigent Aggravated Murder Defense Trust Fund created in Section
1395 77-32-601 ;
1396 (eeeee) the Indigent Felony Defense Trust Fund created in Section 77-32-701 ;
1397 (fffff) funds donated or paid to a juvenile court by private sources, as provided in
1398 Subsection 78A-6-203 (c);
1399 (ggggg) a state rehabilitative employment program, as provided in Section 78A-6-210 ;
1400 and
1401 (hhhhh) fees from the issuance and renewal of licenses for certified court interpreters,
1402 as provided in Section 78B-1-146 .
1403 (2) No revenue collection, fund, account, appropriation from a fund or account, or
1404 appropriation to a program may be treated as nonlapsing unless:
1405 (a) it is expressly referenced by this section;
1406 (b) it is designated in a condition of appropriation in the appropriations bill; or
1407 (c) nonlapsing authority is granted under Section 63J-1-603 .
1408 (3) Each legislative appropriations subcommittee shall review the accounts and funds
1409 that have been granted nonlapsing authority under this section or Section 63J-1-603 .
1410 Section 22. Section 63J-2-202 is amended to read:
1411 63J-2-202. Disposition of revenues -- Reporting of balances in dedicated credits
1412 and fixed collections.
1413 (1) (a) Each agency shall include in its annual budget request estimates of dedicated
1414 credits revenues and fixed collections revenues that are identified by, collected for, or set by the
1415 agency.
1416 (b) If the Legislature or the Division of Finance establishes a new revenue type by law,
1417 the agency shall include that new revenue type in its budget request for the next fiscal year.
1418 (c) (i) Except as provided in Subsection (1)(c)(ii), if any agency fails to include the
1419 estimates of a revenue type in its annual budget request, the Division of Finance shall deposit
1420 the monies collected in that revenue type into the General Fund or other appropriate fund as
1421 free or restricted revenue.
1422 (ii) The Division of Finance may not deposit the monies collected from a revenue type
1423 not included in an agency's annual budget request into the General Fund or other appropriate
1424 fund if the agency did not include the estimates of the revenue type in its annual budget request
1425 because the Legislature had not yet established or authorized the new revenue type by law.
1426 (2) (a) (i) Except as provided in Subsection (2)(b), each agency that receives dedicated
1427 credits and fixed collections revenues greater than the amount appropriated to them by the
1428 Legislature in the annual appropriations act may expend the excess up to 25% of the amount
1429 appropriated if the expenditure is authorized by an amended work program approved as
1430 provided in Section [
1431 dedicated credits in the Illegal Drug Stamp Tax Fund under Section 59-19-105 or line items
1432 covering tuition and federal vocational funds at institutions of higher learning, any expenditure
1433 of dedicated credits in excess of amounts appropriated by the Legislature may not be used to
1434 permanently increase personnel within the agency unless approved by the Legislature.
1435 (ii) The Division of Finance shall deposit the balance of that excess into the General
1436 Fund or other appropriate fund as free or restricted revenue.
1437 (b) Notwithstanding the requirements of Subsection (2)(a), when an agency's dedicated
1438 credits and fixed collections revenues represent over 90% of the budget of the program for
1439 which they are collected, the agency may expend 100% of the excess of the amount
1440 appropriated if the expenditure is authorized by an amended work program approved as
1441 provided in Section [
1442 (3) Each agency that receives dedicated credits or fixed collections shall report, to the
1443 Division of Finance, any balances remaining in those funds at the conclusion of each fiscal
1444 year.
1445 Section 23. Section 67-5-25 is amended to read:
1446 67-5-25. Litigation Fund for Highway Projects Account.
1447 (1) There is created within the General Fund a restricted account known as the
1448 Litigation Fund for Highway Projects Account.
1449 (2) The Litigation Fund for Highway Projects Account consists of:
1450 (a) appropriations made to the account by the Legislature;
1451 (b) transfers to the account from highway project funds as approved by the
1452 Transportation Commission; and
1453 (c) any donations made to the account.
1454 (3) (a) The state treasurer shall invest monies in the account according to Title 51,
1455 Chapter 7, State Money Management Act.
1456 (b) The Division of Finance shall deposit interest or other earnings derived from
1457 investment of account monies into the General Fund.
1458 (4) (a) Upon appropriation by the Legislature, the attorney general shall use monies
1459 from the account to pay litigation expenses for defending legal actions filed against the state
1460 that challenge highway projects.
1461 (b) The Legislature intends that monies in the account be appropriated for a project's
1462 litigation expenses before appropriating funds for litigation expenses from any other source.
1463 (5) The Division of Finance shall:
1464 (a) establish subaccounts within the Litigation Fund for Highway Projects Account to
1465 hold monies appropriated by the Legislature for litigation expenses for different highway
1466 projects;
1467 (b) apportion donations received equally among subaccounts unless the donor directs
1468 that the donation:
1469 (i) be used to defend a specific legal action; or
1470 (ii) be deposited into a specific subaccount; and
1471 (c) apportion interest between subaccounts proportionally based upon the balance of
1472 each subaccount.
1473 (6) When some or all of the money appropriated to fund litigation expenses for a
1474 particular highway project is not expended, the Legislature shall[
1475
1476
1477 Section 24. Section 70-3a-203 is amended to read:
1478 70-3a-203. Fees.
1479 (1) (a) A [
1480 division in accordance with the requirements of Section [
1481 exceed $250 annually for electronic registration of a mark in a single class.
1482 (b) A person who pays the annual [
1483 mark may register additional classes for the same mark for an additional fee not to exceed $25
1484 annually.
1485 [
1486
1487 [
1488 [
1489
1490 [
1491
1492
1493 [
1494 [
1495 [
1496 [
1497 [
1498 in a restricted account within the General Fund known as the Commerce Service Fund.
1499 Section 25. Section 70-3a-302 is amended to read:
1500 70-3a-302. Application for registration.
1501 (1) (a) Subject to the limitations in this chapter, any person who uses a mark may file
1502 with the division an application for registration of that mark.
1503 (b) The registration described in Subsection (1)(a) shall be filed in accordance with
1504 rules:
1505 (i) made by the division in accordance with Section 70-3a-201 ; and
1506 (ii) that are consistent with this section.
1507 (c) The application shall:
1508 (i) state:
1509 (A) the name and business address of the person applying for registration;
1510 (B) if a corporation, the state of incorporation; and
1511 (C) if a partnership:
1512 (I) the state where the partnership is organized; and
1513 (II) the names of the general partners, as specified by the division;
1514 (ii) specify:
1515 (A) the goods or services on or in connection with which the mark is used;
1516 (B) the mode or manner in which the mark is used on or in connection with those
1517 goods or services; and
1518 (C) the class defined pursuant to Section 70-3a-308 in which those goods or services
1519 fall;
1520 (iii) state:
1521 (A) the date when the mark was first used anywhere;
1522 (B) the date when the mark was first used in this state by the applicant or a predecessor
1523 in interest;
1524 (C) that the applicant is the owner of the mark;
1525 (D) that the mark is in use; and
1526 (E) that to the knowledge of the person verifying the application, no other person has
1527 registered, either federally or in this state, or has the right to use that mark:
1528 (I) in the mark's identical form; or
1529 (II) in such near resemblance to the mark as to be likely, when applied to the goods or
1530 services of the other person, to cause confusion, mistake, or to deceive;
1531 (iv) be signed, including by any signature consistent with the requirement for an
1532 electronic signature under 15 U.S.C. Sec. 7001, under penalty of perjury by:
1533 (A) the applicant; or
1534 (B) if the applicant is not an individual:
1535 (I) an officer of the applicant; or
1536 (II) a partner of a partnership;
1537 (v) be filed with the division;
1538 (vi) be accompanied by two specimens showing the mark as actually used; and
1539 (vii) be accompanied by a [
1540 with Section 70-3a-203 .
1541 (d) In addition to the information required by Subsection (1)(c), the division may
1542 require the applicant to provide:
1543 (i) a statement as to whether an application to register the mark, or portions or a
1544 composite of the mark, has been filed by the applicant or a predecessor in interest in the United
1545 States Patent and Trademark Office; or
1546 (ii) a drawing of the mark, complying with the requirements the division may specify.
1547 (2) If the division requires the statement under Subsection (1)(d)(i), the applicant shall
1548 provide full information with respect to any application filed with the United States Patent and
1549 Trademark Office including:
1550 (a) the filing date and serial number of the application;
1551 (b) the status of the application; and
1552 (c) if any application was finally refused registration or has otherwise not resulted in a
1553 registration, the reasons for the refusal or lack of registration.
1554 (3) Any materials, information, or signatures required to file an application for a mark
1555 may be provided through the database created under Section 70-3a-501 .
1556 Section 26. Section 70-3a-303 is amended to read:
1557 70-3a-303. Filing of applications.
1558 (1) The division may examine an application to determine whether the application
1559 conforms with this chapter if:
1560 (a) the application for registration is filed under Section 70-3a-302 ; and
1561 (b) the [
1562 (2) If reasonably requested by the division or considered by the applicant to be
1563 advisable to respond to any rejection or objection, the applicant:
1564 (a) shall provide any additional information requested by rule by the division, including
1565 a description of a design mark; and
1566 (b) may make, or authorize the division to make, amendments to the application.
1567 (3) (a) The division may require the applicant to disclaim an unregistrable component
1568 of a mark otherwise registrable.
1569 (b) An applicant may voluntarily disclaim a component of a mark for which the
1570 applicant has filed a registration application.
1571 (c) A disclaimer under this Subsection (3) may not prejudice or affect the applicant's or
1572 registrant's rights:
1573 (i) in the disclaimed matter:
1574 (A) existing at the time of the disclaimer; or
1575 (B) arising after the disclaimer; or
1576 (ii) of registration on another application if the disclaimed matter is or has become
1577 distinctive of the applicant's or registrant's goods or services.
1578 (d) The division may make rules consistent with this Subsection (3) to establish the
1579 requirements for an applicant to disclaim an unregistrable component of a mark that is
1580 otherwise registrable.
1581 (4) The division may:
1582 (a) amend an application filed by the applicant if the applicant agrees in writing to the
1583 amendment; or
1584 (b) require the applicant to file a new application.
1585 (5) (a) If the division determines that the applicant is not qualified to register a mark,
1586 the division shall notify the applicant of:
1587 (i) the refusal; and
1588 (ii) the reasons for the refusal.
1589 (b) The applicant shall have a reasonable period of time specified by the division, but
1590 not more than 60 days from the date of the notice under this Subsection (5) to:
1591 (i) reply to the refusal; or
1592 (ii) amend the application for reexamination.
1593 (c) The procedure described in Subsections (5)(a) and (b) may be repeated until:
1594 (i) the division finally refuses registration of the mark; or
1595 (ii) the applicant fails to reply or amend within the time period specified under
1596 Subsection (5)(b).
1597 (d) If the applicant fails to reply or to amend within the time period specified under
1598 Subsection (5)(b), the application is considered abandoned.
1599 (6) If the division finally refuses registration of the mark, the refusal shall:
1600 (a) be in writing; and
1601 (b) notify the applicant of the applicant's right to a review of the agency action in
1602 accordance with Title 63G, Chapter 4, Administrative Procedures Act.
1603 (7) (a) An applicant may file an action to compel registration by obtaining judicial
1604 review of the final agency action in accordance with Title 63G, Chapter 4, Administrative
1605 Procedures Act.
1606 (b) The division is not liable for damages in an action to compel registration.
1607 (c) An action to compel registration shall only be granted on proof that:
1608 (i) all the statements in the application for registration are true; and
1609 (ii) the mark is otherwise entitled to registration.
1610 (8) (a) If more than one application is concurrently being processed by the division
1611 seeking registration of the same or confusingly similar marks for the same or related goods or
1612 services, the division shall grant priority to the applications in order of filing.
1613 (b) If a prior-filed application is granted a registration, the division shall refuse an
1614 application filed after the prior-filed application.
1615 (c) An applicant refused under this Subsection (8) may bring an action for cancellation
1616 of the registration upon grounds of prior or superior rights to the mark.
1617 Section 27. Section 70-3a-305 is amended to read:
1618 70-3a-305. Duration and renewal.
1619 (1) The registration of a mark under this chapter expires five years after the date the
1620 division certifies the registration under Section 70-3a-304 .
1621 (2) A registration may be renewed for an additional five years from the date a
1622 registration expires if the registrant:
1623 (a) files an application with the division:
1624 (i) at least six months before the expiration of the registration; and
1625 (ii) in accordance with the requirements made by rule by the division:
1626 (A) pursuant to Section 70-3a-201 ; and
1627 (B) consistent with this section; and
1628 (b) pays a renewal [
1629 Section 70-3a-203 .
1630 (3) If a registrant complies with this section, the registrant may renew a mark at the
1631 expiration of each five-year term.
1632 (4) (a) A registration in effect before May 6, 2002:
1633 (i) shall continue in full force and effect for the registration's unexpired term; and
1634 (ii) may be renewed by:
1635 (A) filing an application for renewal with the division:
1636 (I) within six months before the expiration of the registration; and
1637 (II) in accordance with rules made by the division pursuant to Section 70-3a-201 ; and
1638 (B) paying the required renewal [
1639 accordance with Section 70-3a-203 .
1640 (b) If a registration in effect before May 6, 2002, is renewed in accordance with this
1641 Subsection (4), the registration shall be renewed for a term of five years.
1642 (5) Any application for renewal under this chapter, whether a registration made under
1643 this chapter or a registration made under a prior Utah statute, shall include:
1644 (a) a verified statement that the mark has been and is still in use; and
1645 (b) (i) a specimen showing actual use of the mark on or in connection with the goods or
1646 services; or
1647 (ii) a verified statement that the mark has not changed.
1648 Section 28. Repealer.
1649 This bill repeals:
1650 Section 11-38-303, Commission expenses -- Division of Finance responsibilities --
1651 Investment of monies into the fund -- Interest to accrue to the fund.
1652 Section 29. Effective date.
1653 This bill takes effect on July 1, 2009.
1654 Section 30. Coordinating H.B. 391 with H.B. 297 -- Superseding amendments.
1655 If this H.B. 391 and H.B. 297, Budgetary Procedures Act Recodification, both pass, it is
1656 the intent of the Legislature that the amendments in this H.B. 391 supersede the amendments to
1657 the same numbered sections in H.B. 297, when the Office of Legislative Research and General
1658 Counsel prepares the Utah Code database for publication.
1659 Section 31. Coordinating H.B. 391 with H.B. 400 -- Substantive and technical
1660 amendments.
1661 If this H.B. 391 and H.B. 400, Pete Suazo Utah Athletic Commission Amendments,
1662 both pass, it is the intent of the Legislature that, the Office of Legislative Research and General
1663 Counsel in preparing the Utah Code database for publication, do the following:
1664 (1) insert a new Subsection 63J-1-602 (1)(eeee) to read:
1665 "(eeee) certain monies payable for commission expenses of the Pete Suazo Utah
1666 Athletic Commission, as provided under Section 63C-11-301 ;";
1667 (2) the existing Subsection 63J-1-602 (1)(eeee) be renumbered to 63J-1-602 (1)(ffff);
1668 and
1669 (3) the remaining subsections of Subsection 63J-1-602 (1) be renumbered accordingly.
1670 Section 32. Revisor instructions.
1671 It is the intent of the Legislature that the Office of Legislative Research and General
1672 Counsel in preparing the Utah Code database for publication, change all internal references in
1673 the Utah Code to their correctly renumbered cite in Title 63J, Chapter 1, Budgetary Procedures
1674 Act.
Legislative Review Note
as of 2-25-09 2:25 PM