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H.B. 488

             1     

BUDGETING PROCEDURES AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John Dougall

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions in the Budgetary Procedures Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that the governor may elect to submit, as opposed to being required to
             13      submit, a proposed budget under the Budgetary Procedures Act;
             14          .    modifies language to add additional clarity to the requirements for proposed
             15      budgets;
             16          .    provides that the proposed budget may specify changes in estimates, projections,
             17      and proposals;
             18          .    modifies the statutory structure of the code;
             19          .    provides that the governor has discretion in submitting a budget proposal rather than
             20      having an obligation to do so; and
             21          .    makes technical changes.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None
             26      Utah Code Sections Affected:
             27      AMENDS:


             28          63J-1-201, as last amended by Laws of Utah 2010, Chapter 415
             29          63J-1-411, as renumbered and amended by Laws of Utah 2009, Chapter 183
             30      ENACTS:
             31          63J-1-201.5, Utah Code Annotated 1953
             32          63J-1-201.7, Utah Code Annotated 1953
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 63J-1-201 is amended to read:
             36           63J-1-201. Governor's proposed budget to Legislature -- Contents -- Preparation
             37      -- Appropriations based on current tax laws and not to exceed estimated revenues.
             38          (1) [The] If the governor chooses to submit a proposed budget to the Legislature, the
             39      governor shall deliver, not later than 30 days before the date the Legislature convenes in the
             40      annual general session, a confidential draft copy of the governor's proposed budget
             41      recommendations to the Office of the Legislative Fiscal Analyst according to the requirements
             42      of this section.
             43          (2) (a) [The] When submitting a proposed budget, the governor shall, within the first
             44      three days of the annual general session of the Legislature, submit to the presiding officer of
             45      each house of the Legislature:
             46          (i) a proposed budget for the ensuing fiscal year;
             47          (ii) a schedule for all of the proposed changes to appropriations [of the] in the proposed
             48      budget, with each [appropriation] change clearly itemized and classified; and
             49          [(iii) the statement described in Subsection (2)(c); and]
             50          [(iv)] (iii) as applicable, a document showing proposed [expenditures and] changes in
             51      estimated revenues that are based on changes in state tax laws or rates.
             52          (b) The proposed budget shall include:
             53          (i) a projection of the total estimated revenues and [expenditures] appropriations for
             54      the next fiscal year;
             55          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
             56      federal grants or assistance programs included in the budget;
             57          (iii) a [complete] plan of proposed [expenditures] changes to appropriations and
             58      estimated revenues for the next fiscal year that is based upon the current fiscal year state tax


             59      laws and rates;
             60          (iv) an itemized estimate of the proposed changes to appropriations for:
             61          [(A) the Legislative Department as certified to the governor by the president of the
             62      Senate and the speaker of the House;]
             63          [(B)] (A) the Executive Department;
             64          [(C)] (B) the Judicial Department as certified to the governor by the state court
             65      administrator;
             66          [(D) payment and discharge of the principal and interest of the indebtedness of the
             67      state;]
             68          [(E) the] (C) changes to salaries payable by the state under the Utah Constitution or
             69      under law for [the] lease agreements planned for the next fiscal year; and
             70          [(F) other purposes that are set forth in the Utah Constitution or under law; and];
             71          [(G)] (D) all other changes to ongoing or one-time appropriations[;], including
             72      dedicated credits, restricted funds, nonlapsing balances, grants, and federal funds;
             73          (v) for each line item, the average annual dollar amount of staff funding associated
             74      with all positions that were vacant during the last fiscal year; [and]
             75          (vi) deficits or anticipated deficits[.];
             76          [(c) The budget shall be accompanied by a statement showing:]
             77          [(i) the revenues and expenditures for the last fiscal year;]
             78          [(ii) the current assets, liabilities, and reserves, surplus or deficit, and the debts and
             79      funds of the state;]
             80          [(iii) an estimate of the state's financial condition as of the beginning and the end of the
             81      period covered by the budget;]
             82          [(iv) a complete analysis of lease with an option to purchase arrangements entered into
             83      by state agencies;]
             84          [(v)] (vii) the recommendations for each state agency for new full-time employees for
             85      the next fiscal year, which shall also be provided to the State Building Board as required by
             86      Subsection 63A-5-103 (2);
             87          [(vi)] (viii) any explanation that the governor may desire to make as to the important
             88      features of the budget and any suggestion as to methods for the reduction of expenditures or
             89      increase of the state's revenue; and


             90          [(vii)] (ix) information detailing certain fee increases as required by Section 63J-1-504 .
             91          (3) [(a) (i)] For the purpose of preparing and reporting the proposed budget[, the]:
             92          (a) The governor shall require the proper state officials, including all public and higher
             93      education officials, all heads of executive and administrative departments and state institutions,
             94      bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
             95      state money, and all institutions applying for state money and appropriations, to provide
             96      itemized estimates of changes in revenues and [expenditures] appropriations.
             97          [(ii)] (b) The governor may [also] require the persons and entities subject to Subsection
             98      (3)(a) to provide other information under these guidelines and at times as the governor may
             99      direct, which may include a requirement for program productivity and performance measures,
             100      where appropriate, with emphasis on outcome indicators.
             101          [(b)] (c) The governor may require representatives of public and higher education, state
             102      departments and institutions, and other institutions or individuals applying for state
             103      appropriations to attend budget meetings.
             104          [(c) (i) (A)] (4) In submitting the budgets for the Departments of Health and Human
             105      Services and the Office of the Attorney General, the governor shall consider a separate
             106      recommendation in the governor's budget for changes in funds to be contracted to:
             107          [(I)] (a) local mental health authorities under Section 62A-15-110 ;
             108          [(II)] (b) local substance abuse authorities under Section 62A-15-110 ;
             109          [(III)] (c) area agencies under Section 62A-3-104.2 ;
             110          [(IV)] (d) programs administered directly by and for operation of the Divisions of
             111      Substance Abuse and Mental Health and Aging and Adult Services;
             112          [(V)] (e) local health departments under Title 26A, Chapter 1, Local Health
             113      Departments; and
             114          [(VI)] (f) counties for the operation of Children's Justice Centers under Section
             115      67-5b-102 .
             116          [(B)] (5) (a) [In the governor's budget recommendations under Subsections
             117      (3)(c)(i)(A)(I), (II), and (III), the] In making budget recommendations, the governor shall
             118      consider an amount sufficient to grant the following entities the same percentage increase for
             119      wages and benefits that the governor includes in the governor's budget for persons employed by
             120      the state:


             121          (i) local health departments, local mental health authorities, local substance abuse
             122      authorities, and area agencies [the same percentage increase for wages and benefits that the
             123      governor includes in the governor's budget for persons employed by the state.];
             124          [(C) If the governor does not include in the governor's budget an amount sufficient to
             125      grant the increase described in Subsection (3)(c)(i)(B), the governor shall include a message to
             126      the Legislature regarding the governor's reason for not including that amount.]
             127          [(ii) (A) In submitting the budget for the Department of Agriculture, the governor shall
             128      consider an amount sufficient to grant]
             129          (ii) local conservation districts and Utah Association of Conservation District
             130      employees [the same percentage increase for wages and benefits that the governor includes in
             131      the governor's budget for persons employed by the state.], as related to the budget for the
             132      Department of Agriculture; and
             133          [(B) If the governor does not include in the governor's budget an amount sufficient to
             134      grant the increase described in Subsection (3)(c)(ii)(A), the governor shall include a message to
             135      the Legislature regarding the governor's reason for not including that amount.]
             136          [(iii) (A) In submitting the budget for the Utah State Office of Rehabilitation and the
             137      Division of Services for People with Disabilities, the Division of Child and Family Services,
             138      and the Division of Juvenile Justice Services within the Department of Human Services, the
             139      governor shall consider an amount sufficient to grant]
             140          (iii) employees of corporations that provide direct services under contract with [those
             141      divisions, the same percentage increase for cost-of-living that the governor includes in the
             142      governor's budget for persons employed by the state.]:
             143          (A) the Utah State Office of Rehabilitation and the Division of Services for People
             144      with Disabilities;
             145          (B) the Division of Child and Family Services; and
             146          (C) the Division of Juvenile Justice Services within the Department of Human
             147      Services.
             148          [(B)] (b) If the governor does not include in the governor's budget an amount sufficient
             149      to grant [the] an increase for any entity described in [Subsection (3)(c)(iii)(A)] Subsection
             150      (5)(a), the governor shall include a message to the Legislature regarding the governor's reason
             151      for not including that amount.


             152          [(iv) (A)] (6) (a) The Families, Agencies, and Communities Together Council may
             153      propose a budget recommendation to the governor for collaborative service delivery systems
             154      operated under Section 63M-9-402 , as provided under Subsection 63M-9-201 (4)(e).
             155          [(B)] (b) The Legislature may, through a specific program schedule, designate funds
             156      appropriated for collaborative service delivery systems operated under Section 63M-9-402 .
             157          [(v)] (7) The governor shall include in the governor's budget the state's portion of the
             158      budget for the Utah Communications Agency Network established in Title 63C, Chapter 7,
             159      Utah Communications Agency Network Act.
             160          [(vi) (A)] (8) (a) The governor shall include a separate recommendation in the
             161      governor's budget for funds to maintain the operation and administration of the Utah
             162      Comprehensive Health Insurance Pool. [(B)] In making the recommendation, the governor
             163      may consider:
             164          [(I)] (i) actuarial analysis of growth or decline in enrollment projected over a period of
             165      at least three years;
             166          [(II)] (ii) actuarial analysis of the medical and pharmacy claims costs projected over a
             167      period of at least three years;
             168          [(III)] (iii) the annual Medical Care Consumer Price Index;
             169          [(IV)] (iv) the annual base budget for the pool established by the Commerce and
             170      Revenue Appropriations Subcommittee for each fiscal year;
             171          [(V)] (v) the growth or decline in insurance premium taxes and fees collected by the
             172      State Tax Commission and the Insurance Department; and
             173          [(VI)] (vi) the availability of surplus General Fund revenue under Section 63J-1-312
             174      and Subsection 59-14-204 (5)(b).
             175          (b) In considering the factors in Subsections (8)(a)(i), (ii), and (iii), the governor may
             176      consider the actuarial data and projections prepared for the board of the Utah Comprehensive
             177      Health Insurance Pool as it develops the governor's financial statements and projections for
             178      each fiscal year.
             179          [(d) (i)] (9) (a) The governor may revise all estimates, except those relating to the
             180      Legislative Department, the Judicial Department, and those providing for the payment of
             181      principal and interest to the state debt and for the salaries and expenditures specified by the
             182      Utah Constitution or under the laws of the state.


             183          [(ii) The estimate for the Legislative Department, as certified by the presiding officers
             184      of both houses, shall be included in the budget without revision by the governor.]
             185          [(iii)] (b) The estimate for the Judicial Department, as certified by the state court
             186      administrator, shall also be included in the budget without revision, but the governor may make
             187      separate recommendations on the estimate.
             188          [(e)] (10) The total appropriations requested for expenditures authorized by the budget
             189      may not exceed the estimated revenues from taxes, fees, and all other sources for the next
             190      ensuing fiscal year.
             191          [(4) In considering the factors in Subsections (3)(c)(vi)(B)(I), (II), and (III) and
             192      Subsections (5)(b)(ii)(A), (B), and (C), the governor and the Legislature may consider the
             193      actuarial data and projections prepared for the board of the Utah Comprehensive Health
             194      Insurance Pool as it develops its financial statements and projections for each fiscal year.]
             195          [(5) (a) In adopting a budget for each fiscal year, the Legislature shall consider an
             196      amount sufficient to grant local health departments, local mental health authorities, local
             197      substance abuse authorities, area agencies on aging, conservation districts, and Utah
             198      Association of Conservation District employees the same percentage increase for wages and
             199      benefits that is included in the budget for persons employed by the state.]
             200          [(b) (i) In adopting a budget each year for the Utah Comprehensive Health Insurance
             201      Pool, the Legislature shall determine an amount that is sufficient to fund the pool for each
             202      fiscal year.]
             203          [(ii) When making a determination under Subsection (5)(b)(i), the Legislature shall
             204      consider factors it determines are appropriate, which may include:]
             205          [(A) actuarial analysis of growth or decline in enrollment projected over a period of at
             206      least three years;]
             207          [(B) actuarial analysis of the medical and pharmacy claims costs projected over a
             208      period of at least three years;]
             209          [(C) the annual Medical Care Consumer Price Index;]
             210          [(D) the annual base budget for the pool established by the Commerce and Revenue
             211      Appropriations Subcommittee for each fiscal year;]
             212          [(E) the growth or decline in insurance premium taxes and fees collected by the tax
             213      commission and the insurance department from the previous fiscal year; and]


             214          [(F) the availability of surplus General Fund revenue under Section 63J-1-312 and
             215      Subsection 59-14-204 (5)(b).]
             216          [(iii) The funds appropriated by the Legislature to fund the Utah Comprehensive
             217      Health Insurance Pool as determined under Subsection (5)(b)(i):]
             218          [(A) shall be deposited into the fund established by Section 31A-29-120 ; and]
             219          [(B) are restricted and are to be used to maintain the operation, administration, and
             220      management of the Utah Comprehensive Health Insurance Pool created by Section
             221      31A-29-104 .]
             222          [(6)] (11) If any item of the budget as enacted is held invalid upon any ground, the
             223      invalidity does not affect the budget itself or any other item in it.
             224          Section 2. Section 63J-1-201.5 is enacted to read:
             225          63J-1-201.5. Financial statement to be submitted annually.
             226          The governor shall submit an audited financial statement no later than December 1 of
             227      each year that shows:
             228          (1) the revenues and expenditures for the last fiscal year;
             229          (2) payment and discharge of the principal and interest of the indebtedness of the state;
             230          (3) the current assets, liabilities, and reserves, surplus or deficit, and the debts and
             231      funds of the state;
             232          (4) an estimate of the state's financial condition as of the beginning and the end of the
             233      period covered by the budget; and
             234          (5) a complete analysis of lease with an option to purchase arrangements entered into
             235      by state agencies.
             236          Section 3. Section 63J-1-201.7 is enacted to read:
             237          63J-1-201.7. Legislative budget considerations -- Wage increases for certain
             238      entities -- Comprehensive health insurance pool.
             239          (1) In adopting a budget for each fiscal year, the Legislature shall consider an amount
             240      sufficient to grant local health departments, local mental health authorities, local substance
             241      abuse authorities, area agencies on aging, conservation districts, and Utah Association of
             242      Conservation District employees the same percentage increase for wages and benefits that is
             243      included in the budget for persons employed by the state.
             244          (2) (a) In adopting a budget each year for the Utah Comprehensive Health Insurance


             245      Pool, the Legislature shall determine an amount that is sufficient to fund the pool for each
             246      fiscal year.
             247          (b) When making a determination under this Subsection (2), the Legislature shall
             248      consider factors it determines are appropriate, which may include:
             249          (i) actuarial analysis of growth or decline in enrollment projected over a period of at
             250      least three years;
             251          (ii) actuarial analysis of the medical and pharmacy claims costs projected over a period
             252      of at least three years;
             253          (iii) the annual Medical Care Consumer Price Index;
             254          (iv) the annual base budget for the pool established by the Commerce and Revenue
             255      Appropriations Subcommittee for each fiscal year;
             256          (v) the growth or decline in insurance premium taxes and fees collected by the tax
             257      commission and the insurance department from the previous fiscal year; and
             258          (vi) the availability of surplus General Fund revenue under Section 63J-1-312 and
             259      Subsection 59-14-204 (5)(b).
             260          (c) In considering the factors in Subsections (2)(b)(i), (ii), and (iii), the Legislature may
             261      consider the actuarial data and projections prepared for the board of the Utah Comprehensive
             262      Health Insurance Pool as it develops its financial statements and projections for each fiscal
             263      year.
             264          (d) The funds appropriated by the Legislature to fund the Utah Comprehensive Health
             265      Insurance Pool as determined under this Subsection (2):
             266          (i) shall be deposited into the fund established by Section 31A-29-120 ; and
             267          (ii) are restricted and are to be used to maintain the operation, administration, and
             268      management of the Utah Comprehensive Health Insurance Pool created by Section
             269      31A-29-104 .
             270          Section 4. Section 63J-1-411 is amended to read:
             271           63J-1-411. Internal service funds -- End of fiscal year -- Unused authority for
             272      capital acquisition.
             273          (1) An internal service fund agency's authority to acquire capital assets under
             274      Subsection 63J-1-410 (8)(a) shall lapse if the acquisition of the capital asset does not occur in
             275      the fiscal year in which the authorization is included in the appropriations act, unless the


             276      Legislature identifies the authority to acquire the capital asset as nonlapsing authority:
             277          (a) for a specific one-time project and a limited period of time in the Legislature's
             278      initial appropriation to the agency; or
             279          (b) in a supplemental appropriation in accordance with Subsection (2).
             280          (2) (a) An internal service fund agency's authority to acquire capital assets may be
             281      retained as nonlapsing authorization if the internal service fund agency includes a one-time
             282      project's list as part of the budget request that it submits to the governor and the Legislature at
             283      the annual general session of the Legislature immediately before the end of the fiscal year in
             284      which the agency may have unused capital acquisition authority.
             285          (b) The governor:
             286          (i) may approve some or all of the items from an agency's one-time project's list; and
             287          (ii) shall identify and prioritize any approved one-time projects in the budget that the
             288      governor submits to the Legislature.
             289          (c) The Legislature:
             290          (i) may approve some or all of the specific items from an agency's one-time project's
             291      list as an approved capital acquisition for an agency's appropriation balance;
             292          (ii) shall identify any authorized one-time projects in the appropriate line item
             293      appropriation; and
             294          (iii) may prioritize one-time projects in intent language.
             295          (3) An internal service fund agency shall submit a status report of outstanding
             296      nonlapsing authority to acquire capital assets and associated one-time projects to the
             297      Governor's Office of Planning and Budget and the Legislative Fiscal Analyst's Office with the
             298      proposed budget [required by] that may be submitted by the governor as provided under
             299      Section 63J-1-201 .




Legislative Review Note
    as of 3-8-11 6:41 PM


Office of Legislative Research and General Counsel


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