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First Substitute H.B. 40

Representative Ryan D. Wilcox proposes the following substitute bill:





Chief Sponsor: Ryan D. Wilcox

Senate Sponsor: Daniel R. Liljenquist

             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
             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 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 -- Surety bond.
             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.

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