H.B. 40 Enrolled

1

BONDING REQUIREMENTS FOR GOVERNMENT OFFICERS
2 AND EMPLOYEES
3 2011 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Ryan D. Wilcox
6 Senate Sponsor: Daniel R. Liljenquist
7
8 LONG TITLE
9 General Description:
10 This bill modifies the bonding requirement for certain government officers and
11 employees.
12 Highlighted Provisions:
13 This bill:
14 . modifies the bonding requirement for certain government officers and employees to
15 allow the officer or employee to be covered under the state Risk Management Fund;
16 . removes surety bond requirements for:
17 . regional grazing advisory boards;
18 . employees of the Division of Wildlife Resources;
19 . employees of the Alcoholic Beverage Control Commission;
20 . the Labor Commission and its designated employees;
21 . the adjutant general;
22 . a property and fiscal officer of the United States for Utah for the National
23 Guard;
24 . the business administrator and other board officers of a local school board; and
25 . the Transportation Commission;
26 . repeals surety bond provisions for:
27 . the Utah Insurance Commissioner and employees of the Insurance Department;
28 . officers of the state militia;
29 . the state auditor; and

30 . the attorney general;
31 . amends provisions for giving a bond if required for a state officer or an official of a
32 state institution; and
33 . makes technical changes.
34 Money Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 This bill provides an effective date.
38 Utah Code Sections Affected:
39 AMENDS:
40 4-20-1.6, as last amended by Laws of Utah 2010, Chapter 278
41 32B-2-206 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
42 34A-1-201, as last amended by Laws of Utah 2002, Chapter 176
43 39-1-21, as last amended by Laws of Utah 1991, Chapter 114
44 39-1-25, as last amended by Laws of Utah 1963, Chapter 61
45 52-2-1, Utah Code Annotated 1953
46 53A-3-302, as last amended by Laws of Utah 1999, Chapter 218
47 53A-3-304, as enacted by Laws of Utah 1988, Chapter 2
48 72-1-301, as last amended by Laws of Utah 2010, Chapter 286
49 76-8-203, as last amended by Laws of Utah 1996, Chapter 79
50 REPEALS AND REENACTS:
51 52-1-2, as last amended by Laws of Utah 1984, Chapter 67
52 REPEALS:
53 23-14-9, as last amended by Laws of Utah 1992, Chapter 30
54 31A-2-107, as last amended by Laws of Utah 1986, Chapter 204
55 39-1-27, Utah Code Annotated 1953
56 63A-3-108, as renumbered and amended by Laws of Utah 1993, Chapter 212
57 63A-9-806, as renumbered and amended by Laws of Utah 1997, Chapter 252

58 67-3-7, Utah Code Annotated 1953
59 67-5-2, Utah Code Annotated 1953
60
61 Be it enacted by the Legislature of the state of Utah:
62 Section 1. Section 4-20-1.6 is amended to read:
63 4-20-1.6. Regional Grazing Advisory Boards -- Duties.
64 (1) The commissioner shall appoint members to a regional board for each grazing
65 district from nominations submitted by:
66 (a) the Utah Cattlemen's Association;
67 (b) the Utah Woolgrower's Association;
68 (c) the Utah Farm Bureau Federation; and
69 (d) a conservation district, if the conservation district's boundaries include some
70 portion of the grazing district.
71 (2) Regional boards:
72 (a) shall provide advice and recommendations to the state board; and
73 (b) may receive money from the Rangeland Improvement Account created in Section
74 4-20-2 .
75 (3) If a regional board receives money as authorized by Subsection (2)(b), the regional
76 board shall elect a treasurer to expend the money:
77 (a) as directed by the regional board; and
78 (b) in accordance with Section 4-20-3 .
79 [(4) (a) A treasurer elected in accordance with Subsection (3) shall, for the faithful
80 performance of the treasurer's official duties, file with the department:]
81 [(i) a $5,000 corporate surety bond; or]
82 [(ii) a $10,000 personal surety bond.]
83 [(b) The regional board shall pay the premium for the bond required by Subsection
84 (4)(a) from the money received under Subsection (2)(b).]
85 Section 2. Section 32B-2-206 (Effective 07/01/11) is amended to read:

86 32B-2-206 (Effective 07/01/11). Powers and duties of the director.
87 Subject to the powers and responsibilities of the commission under this title, the
88 director:
89 (1) (a) shall prepare and propose to the commission general policies, rules, and
90 procedures governing the administrative activities of the department; and
91 (b) may submit other recommendations to the commission as the director considers in
92 the interest of the commission's or the department's business;
93 (2) within the general policies, rules, and procedures of the commission, shall:
94 (a) provide day-to-day direction, coordination, and delegation of responsibilities in the
95 administrative activities of the department's business; and
96 (b) make internal department policies and procedures relating to:
97 (i) department personnel matters; and
98 (ii) the day-to-day operation of the department;
99 (3) subject to Section 32B-2-207 , shall appoint or employ personnel as considered
100 necessary in the administration of this title, and with regard to the personnel shall:
101 (a) prescribe the conditions of employment;
102 (b) define the respective duties and powers; and
103 (c) fix the remuneration in accordance with Title 67, Chapter 19, Utah State Personnel
104 Management Act;
105 [(d) designate those employees required to give a bond; and]
106 [(e) specify the bond amounts;]
107 (4) shall establish and secure adherence to a system of reports, controls, and
108 performance in matters relating to personnel, security, department property management, and
109 operation of:
110 (a) a department office;
111 (b) a warehouse;
112 (c) a state store; and
113 (d) a package agency;

114 (5) within the policies, rules, and procedures approved by the commission and
115 provisions of law, shall purchase, store, keep for sale, sell, import, and control the storage, sale,
116 furnishing, transportation, or delivery of an alcoholic product;
117 (6) shall prepare for commission approval:
118 (a) recommendations regarding the location, establishment, relocation, and closure of a
119 state store or package agency;
120 (b) recommendations regarding the issuance, denial, [nonrenewl] nonrenewal,
121 suspension, or revocation of a license, permit, or certificate of approval;
122 (c) an annual budget, proposed legislation, and reports as required by law and sound
123 business principles;
124 (d) plans for reorganizing divisions of the department and the functions of the
125 divisions;
126 (e) manuals containing commission and department policies, rules, and procedures;
127 (f) an inventory control system;
128 (g) any other report or recommendation requested by the commission;
129 (h) rules described in Subsection 32B-2-202 (1)(o) governing the credit terms of the
130 sale of beer;
131 (i) rules governing the calibration, maintenance, and regulation of a calibrated metered
132 dispensing system;
133 (j) rules governing the display of a list of types and brand names of liquor furnished
134 through a calibrated metered dispensing system;
135 (k) price lists issued and distributed showing the price to be paid for each class, variety,
136 or brand of liquor kept for sale at a state store, package agency, or retail licensee;
137 (l) policies or rules prescribing the books of account maintained by the department and
138 by a state store, package agency, or retail licensee; and
139 (m) a policy prescribing the manner of giving and serving a notice required by this title
140 or rules made under this title;
141 (7) shall make available through the department to any person, upon request, a copy of

142 a policy made by the director;
143 (8) shall make and maintain a current copy of a manual that contains the rules and
144 policies of the commission and department available for public inspection;
145 (9) (a) after consultation with the governor, shall determine whether an alcoholic
146 product should not be sold, offered for sale, or otherwise furnished in an area of the state
147 during a period of emergency that is proclaimed by the governor to exist in that area; and
148 (b) shall issue a necessary public announcement or policy with respect to the
149 determination described in Subsection (9)(a); and
150 (10) shall perform any other duty required by the commission or by law.
151 Section 3. Section 34A-1-201 is amended to read:
152 34A-1-201. Commissioner -- Appointment -- Removal -- Compensation --
153 Qualifications -- Responsibilities -- Reports.
154 (1) (a) The chief administrative officer of the commission is the commissioner, who
155 shall be appointed by the governor with the consent of the Senate.
156 (b) The commissioner shall serve at the pleasure of the governor.
157 (c) The commissioner shall receive a salary established by the governor within the
158 salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
159 (d) The commissioner shall be experienced in administration, management, and
160 coordination of complex organizations.
161 (2) (a) The commissioner shall serve full-time.
162 (b) (i) Except as provided in Subsection (2)(b)(ii), the commissioner may not:
163 (A) hold any other office of this state, another state, or the federal government except
164 in an ex officio capacity; or
165 (B) serve on any committee of any political party.
166 (ii) Notwithstanding Subsection (2)(b)(i), the commissioner may:
167 (A) hold a nominal position or title if it is required by law as a condition for the state
168 participating in an appropriation or allotment of any money, property, or service that may be
169 made or allotted for the commission; or

170 (B) serve as the chief administrative officer of any division, office, or bureau that is
171 established within the commission.
172 (iii) If the commissioner holds a position as permitted under Subsection (2)(b)(ii), the
173 commissioner may not be paid any additional compensation for holding the position.
174 (3) [(a)] Before beginning the duties as a commissioner, an appointed commissioner
175 shall[: (i)] take and subscribe the constitutional oath of office[,] and file the oath with the
176 Division of Archives[; and].
177 [(ii) give a corporate surety bond in the amount in form determined by the Division of
178 Finance.]
179 [(b) An employee of the commission receiving or disbursing funds of the state shall
180 give corporate surety determined by the Division of Finance.]
181 [(c) The bond premiums for bonds required under this Subsection (3) shall be paid by
182 the state.]
183 (4) The commissioner shall:
184 (a) administer and supervise the commission in compliance with Title 67, Chapter 19,
185 Utah State Personnel Management Act;
186 (b) approve the proposed budget of each division and the Appeals Board;
187 (c) approve all applications for federal grants or assistance in support of any
188 commission program; and
189 (d) fulfill such other duties as assigned by the Legislature or as assigned by the
190 governor that are not inconsistent with this title or Title 34, Labor in General.
191 (5) (a) The commissioner shall report annually to the Legislature and the governor
192 concerning the operations of the commission and the programs that the commission
193 administers.
194 (b) If federal law requires that a report to the governor or Legislature be given
195 concerning the commission or a program administered by the commission, the commissioner or
196 the commissioner's designee shall make that report.
197 Section 4. Section 39-1-21 is amended to read:

198 39-1-21. Adjutant general -- Salary.
199 The adjutant general shall:
200 (1) receive a salary established by the governor within the salary range fixed by the
201 Legislature in Title 67, Chapter 22, State Officer Compensation[. He shall give an official
202 bond to the state in the penal sum of $10,000 to cover all duties imposed and offices conferred
203 by law or authority on the adjutant general. He shall]; and
204 (2) devote all of [his] the adjutant general's time during the office hours of the military
205 department to the duties of [his] the office.
206 Section 5. Section 39-1-25 is amended to read:
207 39-1-25. Property and fiscal officer of the United States for Utah.
208 (1) The governor shall designate an officer of the National Guard, subject to the
209 approval of the Department of the Army or the Department of the Air Force, as property and
210 fiscal officer of the United States for Utah. [Such]
211 (2) The officer shall:
212 (a) have had actual service in the forces of the United States or the National Guard[,]
213 and have knowledge of army or air administration[. Such officer shall];
214 (b) receive and account for all funds and property belonging to the United States in the
215 possession of the National Guard[, and shall];
216 (c) make [such] the returns and reports concerning the [same] funds as may be required
217 by the National Guard Bureau[. Such officer shall]; and
218 (d) render, through the National Guard Bureau, [such] accounts of federal funds
219 entrusted to [him] the officer for disbursement as may be required by the Treasury Department.
220 [Before entering upon the performance of his duties as property and disbursing officer he shall
221 be required to give good and substantial bond to the United States, the amount thereof to be
222 determined by the National Guard Bureau, for the faithful performance of his duties, for the
223 safekeeping and proper disbursing of the federal property and funds entrusted to his care.]
224 Section 6. Section 52-1-2 is repealed and reenacted to read:
225 52-1-2. Bonds to state -- Approval and recording -- Filing of oaths.

226 (1) Unless otherwise provided in statute, if a state officer or an official of a state
227 institution is required to give an official bond to the state, the state officer or executive director
228 of the state institution shall:
229 (a) ensure that the bond is provided as required by statute; and
230 (b) keep the bond on file at the administrative office of the:
231 (i) state officer or the state institution; or
232 (ii) Division of Risk Management.
233 (2) A state official shall file the state official's oath of office with the Division of
234 Archives and Records Service created under Section 63A-12-101 .
235 Section 7. Section 52-2-1 is amended to read:
236 52-2-1. Time in which to qualify -- Failure -- Office declared vacant.
237 [Whenever] (1) When any person duly elected or appointed to any office of the state or
238 any of its political subdivisions, fails to qualify for [such] the office within 60 days after the
239 date of the beginning of the term of office for which [he] the person was elected or appointed,
240 [such] the office [shall thereupon become] is vacant and shall be filled as provided by law.
241 [Whenever the] (2) When a required bond of any officer of the state or of any of its
242 political subdivisions is canceled, revoked, annulled or otherwise becomes void or of no effect,
243 without another proper required bond being given so that continuance of the required bonded
244 protection is afforded, the office of [such] the officer [shall thereupon become] is vacant and
245 shall be filled as provided by law. [Any elected or appointed official who has failed on the
246 effective date of this act to qualify for the position to which he was elected or appointed, shall
247 be deemed to come within the provisions of this act, and the office of such officer shall become
248 vacant at the end of 40 days after the effective date of this act unless legal bond is given before
249 the expiration of such period, and such office shall be filled as provided by law.]
250 Section 8. Section 53A-3-302 is amended to read:
251 53A-3-302. Business administrator -- Term -- Oath.
252 (1) Each board shall appoint a business administrator.
253 (2) The business administrator's term of office is for two years and until a successor is

254 appointed and qualified.
255 (3) If it becomes necessary to appoint an interim business manager due to a vacancy in
256 the office of business administrator, then the board shall make an appointment during a public
257 meeting for an indefinite term not to exceed one year, which term shall end upon the
258 appointment and qualification of a new business manager.
259 (4) The business administrator qualifies for office by taking the constitutional oath of
260 office [and by posting any required bond or undertaking].
261 Section 9. Section 53A-3-304 is amended to read:
262 53A-3-304. Other board officers.
263 (1) A board may appoint other necessary officers who serve at the pleasure of the
264 board. [The board may require these officers to give a bond to the board in an amount
265 prescribed by the board.]
266 (2) These officers shall qualify by taking the constitutional oath of office before
267 assuming office.
268 Section 10. Section 72-1-301 is amended to read:
269 72-1-301. Transportation Commission created -- Members, appointment, terms --
270 Qualifications -- Pay and expenses -- Chair -- Quorum.
271 (1) (a) There is created the Transportation Commission which shall consist of seven
272 members.
273 (b) The members of the commission shall be residents of Utah.
274 (c) The members of the commission shall be selected on a nonpartisan basis.
275 (d) (i) The commissioners shall be appointed by the governor, with the consent of the
276 Senate, for a term of six years, beginning on April 1 of odd-numbered years, except as provided
277 under Subsection (1)(d)(ii).
278 (ii) The first two additional commissioners serving on the seven member commission
279 shall be appointed for terms of two years nine months and four years nine months, respectively,
280 initially commencing on July 1, 1996, and subsequently commencing as specified under
281 Subsection (1)(d)(I).

282 (e) The commissioners serve on a part-time basis.
283 (f) Each commissioner shall remain in office until a successor is appointed and
284 qualified.
285 (2) (a) Except as provided in Subsection (2)(b), the selection of the commissioners
286 shall be as follows:
287 (i) one commissioner from Box Elder, Cache, or Rich county;
288 (ii) one commissioner from Salt Lake or Tooele county;
289 (iii) one commissioner from Carbon, Emery, Grand, or San Juan county;
290 (iv) one commissioner from Beaver, Garfield, Iron, Kane, Millard, Piute, Sanpete,
291 Sevier, Washington, or Wayne county;
292 (v) one commissioner from Weber, Davis, or Morgan county;
293 (vi) one commissioner from Juab, Utah, Wasatch, Duchesne, Summit, Uintah, or
294 Daggett county; and
295 (vii) one commissioner selected from the state at large.
296 (b) Beginning with the appointment of commissioners on or after July 1, 2009 and
297 subject to the restriction in Subsection (2)(d), the selection of commissioners shall be as
298 follows:
299 (i) four commissioners with one commissioner selected from each of the four regions
300 established by the department; and
301 (ii) subject to the restriction in Subsection (2)(c), three commissioners selected from
302 the state at large.
303 (c) (i) At least one of the three commissioners appointed under Subsection (2)(b)(ii)
304 shall be selected from a rural county.
305 (ii) For purposes of this Subsection (2)(c), a rural county includes a county of the third,
306 fourth, fifth, or sixth class.
307 (d) No more than two commissioners appointed under Subsection (2)(b) may be
308 selected from any one of the four regions established by the department.
309 (3) A member may not receive compensation or benefits for the member's service, but

310 may receive per diem and travel expenses in accordance with:
311 (a) Section 63A-3-106 ;
312 (b) Section 63A-3-107 ; and
313 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
314 63A-3-107 .
315 (4) (a) One member of the commission shall be designated by the governor as chair.
316 (b) The commission shall select one member as vice chair to act in the chair's absence.
317 (5) Any four commissioners constitute a quorum.
318 (6) [(a)] Each member of the commission shall qualify by[: (i)] taking the
319 constitutional oath of office[; and].
320 [(ii) giving a surety bond.]
321 [(b) The Division of Finance of the Department of Administrative Services shall
322 determine the form and amount of the bond, and the state shall pay the bond premium.]
323 Section 11. Section 76-8-203 is amended to read:
324 76-8-203. Unofficial misconduct.
325 (1) A person is guilty of unofficial misconduct if [he] the person exercises or attempts
326 to exercise any of the functions of a public office when the person:
327 (a) [he] has not taken and filed the required oath of office;
328 (b) [he] has failed to execute and file [the] a required bond;
329 (c) [he] has not been elected or appointed to office;
330 (d) [he] exercises any of the functions of his office after his term has expired and the
331 successor has been elected or appointed and has qualified, or after his office has been legally
332 removed; or
333 (e) [he] knowingly withholds or retains from his successor in office or other person
334 entitled to the official seal or any records, papers, documents, or other writings appertaining or
335 belonging to his office or mutilates or destroys or takes away the same.
336 (2) Unofficial misconduct is a class B misdemeanor.
337 Section 12. Repealer.

338 This bill repeals:
339 Section 23-14-9, Bonding of division employees.
340 Section 31A-2-107, Bonding of employees.
341 Section 39-1-27, Bonds of accountable officers.
342 Section 63A-3-108, Designation of state officers and employees required to give
343 surety bonds -- Form of bonds -- Competitive bidding.
344 Section 63A-9-806, Bonds.
345 Section 67-3-7, Official bond.
346 Section 67-5-2, Official bond.
347 Section 13. Effective date.
348 (1) Except as provided in Subsection (2), this bill takes effect on May 10, 2011.
349 (2) The amendments to Section 32B-2-206 (Effective 07/01/11) take effect on July 1,
350 2011.