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MINUTES OF THE

HOUSE POLITICAL SUBDIVISIONS

STANDING COMMITTEE

Room 450 Utah State Capitol

2 February 2010


MEMBERS PRESENT:    Rep. Fred R Hunsaker, Chair
            Rep. R. Curt Webb, Vice Chair
            Rep. Laura Black
            Rep. Rebecca Chavez-Houck
            Rep. Jack R. Draxler
            Rep. James A. Dunnigan
            Rep. Becky Edwards
            Rep. Janice M. Fisher
            Rep. Richard Greenwood
            Rep. Marie H. Poulson

MEMBERS ABSENT:    Rep. Kerry W. Gibson
            Rep. Curtis Oda

STAFF PRESENT:        Joseph Wade, Policy Analyst
            Becky Lawyer, Committee Secretary

Note: A list of visitors and a copy of handouts are filed with the committee minutes.

Rep. Hunsaker called the meeting to order at 3:38 p.m.

MOTION: Rep. Black moved to approve the minutes from meetings held on Jan. 26, Jan. 28, and Feb. 1, 2010. The motion passed unanimously.

Rep. Hunsaker relinquished the chair to Rep. Webb at 3:41 p.m.

H.B. 205    Impact Fee Amendments (Rep. S. Sandstrom)

H.B. 205 was not considered.

1st Sub. H.B. 94    Uniform Fiscal Procedures Act Amendments for Towns, Cities, and Counties Amendments (Rep. F. Hunsaker)

Note: 1st Sub. H.B. 94 was adopted by the committee at its January 28th meeting. The substitute bill was also amended.

Rep. Hunsaker, assisted by Austin Johnson, State Auditor, introduced the bill and explained it to the committee. Questions from the committee were discussed.


MOTION: Rep. Greenwood moved to amend 1st Sub HB 94 as follows:

1.    Page 1, Line 16 through Page 2, Line 26 :    

             16          .    requires a town council to give public notice and hold a hearing before amending a
             17      budget or allocating or transferring funds between
{   an   }        a utility       enterprise fund and another

             18      fund;
             19          .    requires the governing body of a city to give public notice and hold a hearing before
             20      allocating or transferring funds between
{   an   }        a utility       enterprise fund and another fund;

             21          .    requires the governing body of a county to give public notice and hold a hearing
             22      before amending a budgetary fund or increasing a budget appropriation of any
             23      budgetary fund;
             24          .    requires the governing body of a county to give public notice and hold a hearing
             25      before allocating or transferring funds between
{   an   }        a utility       enterprise fund and another fund;

             26      and

2.    Page 3, Lines 72 through 76 :    

             72          (4) (a) [If within any enterprise utility fund, allocations or transfers]
{   If   }        Except as provided in Subsection (4)(d), if       a town council

             73      includes in a tentative budget, or an amendment to a budget, allocations or transfers from
{   an   }        a utility      

             74      enterprise fund to another fund that are not reasonable allocations of costs between [funds are
             75      included in a tentative budget,] the
  utility       enterprise fund and the other fund, the governing body

             76      shall:

3.    Page 3, Lines 80 through 87 :    

             80          (iii) subject to Subsection (4)(c), mail the notice to each
  utility       enterprise fund customer at

             81      least seven days before the day of the hearing.


             82          (b) The purpose portion of the written notice shall identify:
             83          (i) the
  utility       enterprise [utility] fund from which money is being allocated or transferred;

             84          (ii) the amount being allocated or transferred; and
             85          (iii) the fund to which the money is being allocated or transferred.
             86          (c) The town council:
             87          (i) may print the written notice required under Subsection (4)(a)(ii) on the
  utility       enterprise


4.    Page 3, Line 82 through Page 4, Line 88 :    

             82          (b) The purpose portion of the written notice shall identify:
             83          (i) the
  utility       enterprise [utility] fund from which money is being allocated or transferred;

             84          (ii) the amount being allocated or transferred; and
             85          (iii) the fund to which the money is being allocated or transferred.
             86          (c) The town council:
             87          (i) may print the written notice required under Subsection (4)(a)(ii) on the
  utility       enterprise

             88      fund customer's bill; and

5.    Page 4, Lines 89 through 90 :    

             89          (ii) shall include the written notice required under Subsection (4)(a)(ii) as separate
             90      notification mailed or transmitted with the
  utility       enterprise fund customer's bill.

    
  (d) The notice and hearing requirements in this Subsection (4) are not required for an allocation or a transfer included in an original budget or in a subsequent budget amendment previously approved by the town council for the current fiscal year.      


6.    Page 6, Lines 168 through 170 :    

             168          (e) (i)
{   If   }        Except as provided in Subsection (3)(e)(iv), if       the governing body includes in a tentative budget or an amendment to a budget

             169      allocations or transfers from
{   an   }        a utility       enterprise fund to another fund that are not reasonable

             170      allocations of costs between [funds are included in a tentative budget,] the
  utility       enterprise fund and


7.    Page 6, Line 175 :    

             175          (C) subject to Subsection (3)(e)(iii), mail the written notice to each
  utility       enterprise fund


8.    Page 6, Line 179 :    

             179          (A) the
  utility       enterprise [utility] fund from which money is being transferred;


9.    Page 7, Line 183 :    

             183          (A) may print the written notice required under Subsection (3)(e)(i) on the
  utility       enterprise


10.    Page 7, Lines 185 through 186 :    

             185          (B) shall include the written notice required under Subsection (3)(e)(i) as a separate
             186      notification mailed or transmitted with the
  utility       enterprise fund customer's bill.

    
  (iv) The notice and hearing requirements in this Subsection (3)(e) are not required for an allocation or a transfer included in an original budget or in a subsequent budget amendment previously approved by the governing body for the current fiscal year.           


11.    Page 9, Lines 266 through 268 :    

             266          (e) (i)
{   If   }        Except as provided in Subsection (3)(e)(iv), if       a governing body includes in a tentative budget, or an amendment to a budget,

             267      allocations or transfers between
{   an   }        a utility       enterprise fund and another fund that are not reasonable

             268      allocations of costs between [funds are included in a tentative budget,] the
  utility       enterprise fund and


12.    Page 9, Line 273 :    

             273          (C) subject to Subsection (3)(e)(iii), mail the notice to each
  utility       enterprise fund customer at


13.    Page 10, Line 277 :    

             277          (A) the
  utility       enterprise [utility] fund from which money is being transferred;


14.    Page 10, Line 281 :    



             281          (A) may print the written notice required under Subsection (3)(e)(i) on the
  utility       enterprise


15.    Page 10, Lines 283 through 284 :    

             283          (B) shall include the written notice required under Subsection (3)(e)(i) as a separate
             284      notification mailed or transmitted with the
  utility       enterprise fund customer's bill.

    
  (iv) The notice and hearing requirements in this Subsection (3)(e) are not required for an allocation or a transfer included in an original budget or in a subsequent budget amendment previously approved by the governing body for the current fiscal year.      


The motion to amend passed unanimously with Rep. Dunnigan absent for the vote.

Derek Monson, representing the Sutherland Institute, spoke for the bill.

Lincoln Shurtz, Utah League of Cities and Towns, spoke for the bill.

Jackie Evans, Taxpayers Association, spoke for the bill.

MOTION: Rep. Greenwood moved to pass 1st Sub H.B. 94 favorably as amended. The motion passed unanimously with Rep. Dunnigan absent for the vote.

MOTION: Rep. Fisher moved to adjourn. The motion passed unanimously with Rep. Dunnigan absent for the vote.

Rep. Webb adjourned the meeting at 3:58 p.m.





                    ___________________________
                    Rep. Fred R Hunsaker, Chair