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S.B. 160

             1     

FEDERAL FUNDS PROCEDURES ACT AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Lyle W. Hillyard

             5     
House Sponsor: Melvin R. Brown

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions in the Federal Funds Procedures Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies definitions;
             13          .    provides that multiyear grants or awards are subject to the approval and summary
             14      requirements of the act in periods other than the initial year or grant period when
             15      funds continue to be disbursed;
             16          .    revises language governing approval procedures to provide additional clarity and
             17      improve readability;
             18          .    provides that federal funds contained in an appropriations act are considered
             19      approved when the appropriations act is passed;
             20          .    clarifies provisions relating to consequences for failing to obtain legislative
             21      approval on certain federal fund requests;
             22          .    permits an agency that receives excess federal funds to spend up to 25% of the
             23      excess funding without requesting formal approval under some circumstances; and
             24          .    makes technical changes.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          None
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          63J-5-102, as renumbered and amended by Laws of Utah 2008, Chapter 382
             32          63J-5-201, as renumbered and amended by Laws of Utah 2008, Chapter 382
             33          63J-5-204, as renumbered and amended by Laws of Utah 2008, Chapter 382
             34      ENACTS:
             35          63J-5-205, Utah Code Annotated 1953
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 63J-5-102 is amended to read:
             39           63J-5-102. Definitions.
             40          (1) As used in this chapter:
             41          (a) (i) "Agency" means a department, division, committee, commission, council, court,
             42      or other administrative subunit of the state.
             43          (ii) "Agency" includes executive branch entities and judicial branch entities.
             44          (iii) "Agency" does not mean higher education institutions or political subdivisions.
             45          (b) (i) "Federal funds" means cash or other money received from the United States
             46      government or from other individuals or entities for or on behalf of the United States and
             47      deposited with the state treasurer or any agency of the state.
             48          (ii) "Federal funds" includes federal assistance and federal assistance programs,
             49      however described.
             50          (iii) "Federal funds" does not include money received from the United States
             51      government to reimburse the state for money expended by the state.
             52          (c) "Federal funds reauthorization" means:
             53          (i) the formal submission from an agency to the federal government[: (i)] applying for
             54      or seeking reauthorization of federal funds which the state is currently receiving; [or]
             55          (ii) the formal submission from an agency to the federal government applying for or
             56      seeking reauthorization to participate in a federal program in which the state is currently
             57      participating that will result in federal funds being transferred to an agency[.]; or
             58          (iii) that period after the first year of a previously authorized and awarded grant or


             59      funding award, during which federal funds are disbursed or are scheduled to be disbursed after
             60      the first year because the term of the grant or financial award extends for more than one year.
             61          (d) "Federal funds request summary" means a document detailing:
             62          (i) the amount of money that is being requested or is available to be received by the
             63      state from the federal government for each federal funds reauthorization or new federal funds
             64      request;
             65          (ii) those federal funds reauthorizations and new federal funds requests that are
             66      included as part of the agency's proposed budget for the fiscal year, and the amount of those
             67      requests;
             68          (iii) the amount of new state money, if any, that will be required to receive the federal
             69      funds or participate in the federal program;
             70          (iv) the number of additional permanent full-time employees, additional permanent
             71      part-time employees, or combination of additional permanent full-time employees and
             72      additional permanent part-time employees, if any, that the state estimates are needed in order to
             73      receive the federal funds or participate in the federal program; and
             74          (v) any requirements that the state must meet as a condition for receiving the federal
             75      funds or participating in the federal program.
             76          (e) "Federal maintenance of effort requirements" means any matching, level of effort,
             77      or earmarking requirements, as defined in Office of Management and Budget Circular A-133,
             78      Compliance Requirement G, that are imposed on an agency as a condition of receiving federal
             79      funds.
             80          (f) "New federal funds" means:
             81          (i) federal assistance or other federal funds that are available from the federal
             82      government [and] that:
             83          (A) the state is not currently receiving; or
             84          (B) exceed the federal funds amount previously approved by the Legislature by more
             85      than 25% for a federal grant or program in which the state is currently participating; or
             86          (ii) a federal assistance program or other federal program in which the state is not
             87      currently participating[;].
             88          [(iii) each federal funds reauthorization that would require the state, as a condition for
             89      receiving the federal funds, to:]


             90          [(A) add additional permanent full-time employees, permanent part-time employees, or
             91      combination of additional permanent full-time employees and permanent part-time employees;]
             92          [(B) increase the amount of state matching funds required to receive the federal funds
             93      or participate in the federal program; or]
             94          [(C) comply with new requirements in order to receive the federal funds or participate
             95      in the federal program.]
             96          (g) "New federal funds request" means the formal submission from an agency to the
             97      federal government:
             98          (i) applying for or otherwise seeking to obtain new federal funds; or
             99          (ii) applying for or seeking to participate in a new federal program that will result in
             100      federal funds being transferred to an agency.
             101          (h) (i) "New state money" means money, whether specifically appropriated by the
             102      Legislature or not, that the federal government requires Utah to expend as a condition for
             103      receiving the federal funds or participating in the federal program.
             104          (ii) "New state money" includes money expended to meet federal maintenance of effort
             105      requirements.
             106          (i) "Pass-through federal funds" means federal funds provided to an agency that are
             107      distributed to local governments or private entities without being used by the agency.
             108          (j) "State" means the state of Utah and all of its agencies, and any administrative
             109      subunits of those agencies.
             110          (2) When this chapter describes an employee as a "permanent full-time employee" or a
             111      "permanent part-time employee," it is not intended to, and may not be construed to, affect the
             112      employee's status as an at-will employee.
             113          Section 2. Section 63J-5-201 is amended to read:
             114           63J-5-201. Legislative Appropriation Subcommittees to review certain federal
             115      funds reauthorizations -- Executive Appropriations review -- Legislative approval.
             116          (1) The Governor's Office of Planning and Budget shall annually prepare and submit a
             117      federal funds request summary for each agency to the Legislative Fiscal Analyst at the same
             118      time the governor submits the confidential draft budget under Section 63J-1-201 .
             119          (2) (a) The Legislative Fiscal Analyst, as directed by the Executive Appropriations
             120      Committee, may include federal funds in the base budget appropriations act or acts, when those


             121      acts are prepared as provided in JR3-2-402.
             122          [(2) (a)] (b) The Legislative Fiscal Analyst shall submit a federal funds request
             123      summary for each agency to the legislative appropriations subcommittee responsible for that
             124      agency's budget for review during each annual general session.
             125          [(b)] (3) Each legislative appropriations subcommittee shall review the federal funds
             126      request summary and may:
             127          [(i)] (a) recommend that the agency accept the federal funds or participate in the federal
             128      program for the fiscal year under consideration; or
             129          [(ii)] (b) recommend that the agency not accept the federal funds or not participate in
             130      the federal program for the fiscal year under consideration.
             131          [(3)] (4) The Legislative Executive Appropriations Committee shall:
             132          (a) review each subcommittee's recommendation;
             133          (b) determine whether or not the agency should be authorized to accept the federal
             134      funds or participate in the federal program; and
             135          (c) direct the Legislative Fiscal Analyst to include or exclude those federal funds and
             136      federal programs [that the committee approves in the] in an annual appropriations act for
             137      approval by the Legislature.
             138          (5) Legislative approval of an appropriations act containing federal funds constitutes
             139      legislative approval of the federal grants or awards associated with the federal funds for the
             140      purposes of compliance with the requirements of this chapter.
             141          Section 3. Section 63J-5-204 is amended to read:
             142           63J-5-204. Legislative review and approval of certain federal funds requests.
             143          (1) As used in this section:
             144          (a) "High impact federal funds request" means a new federal funds request that will or
             145      could:
             146          (i) result in the state receiving total payments of $10,000,000 or more per year from the
             147      federal government;
             148          (ii) require the state to add 11 or more permanent full-time employees, 11 or more
             149      permanent part-time employees, or combination of permanent full-time and permanent
             150      part-time employees equal to 11 or more in order to receive the new federal funds or participate
             151      in the new federal program; or


             152          (iii) require the state to expend more than $1,000,000 of new state money in a fiscal
             153      year in order to receive or administer the new federal funds or participate in the new federal
             154      program.
             155          (b) "Medium impact federal funds request" means a new federal funds request that will
             156      or could:
             157          (i) result in the state receiving total payments of more than $1,000,000 but less than
             158      $10,000,000 per year from the federal government;
             159          (ii) require the state to add more than zero but less than 11 permanent full-time
             160      employees, more than zero but less than 11 permanent part-time employees, or a combination
             161      of permanent full-time employees and permanent part-time employees equal to more than zero
             162      but less than 11 in order to receive or administer the new federal funds or participate in the new
             163      federal program; or
             164          (iii) require the state to expend $1 to $1,000,000 of new state money in a fiscal year in
             165      order to receive or administer the new federal funds or participate in the new federal program.
             166          (2) (a) (i) Before obligating the state to accept or receive new federal funds or to
             167      participate in a new federal program under a medium impact federal funds request[, and no
             168      later than three months after submitting a medium impact federal funds request, and, where
             169      possible, before formally submitting the medium impact federal funds request,] that was not
             170      authorized during a legislative session as provided in Section 63J-5-201 , an agency shall:
             171          [(i)] (A) submit the federal funds request summary to the governor or the Judicial
             172      Council, as appropriate, for approval or rejection; and
             173          [(ii)] (B) if the governor or Judicial Council approves the new federal funds request,
             174      submit the federal funds request summary to the Legislative Executive Appropriations
             175      Committee for its review and recommendations.
             176          (ii) The procedures required under Subsection (2)(a)(i) shall be performed, if possible,
             177      before the date that the medium impact funds request is formally submitted, but not later than
             178      three months after the date of formal submission.
             179          (b) The Legislative Executive Appropriations Committee shall review the federal funds
             180      request summary and may:
             181          (i) recommend that the agency accept the new federal funds;
             182          (ii) recommend that the agency not accept the new federal funds; or


             183          (iii) recommend to the governor that the governor call a special session of the
             184      Legislature to review and approve or reject the acceptance of the new federal funds.
             185          (3) (a) (i) Before obligating the state to accept or receive new federal funds or to
             186      participate in a new federal program under a high impact federal funds request[, and no later
             187      than three months after submitting a high impact federal funds request, and, where possible,
             188      before formally submitting the high impact federal funds request,] that was not authorized
             189      during a legislative session as provided in Section 63J-5-201 , an agency shall:
             190          [(i)] (A) submit the federal funds request summary to the governor or Judicial Council,
             191      as appropriate, for approval or rejection; and
             192          [(ii)] (B) if the governor or Judicial Council approves the new federal funds request,
             193      submit the federal funds request summary to the Legislature for its approval or rejection in an
             194      annual general session or a special session.
             195          (ii) The procedures required under Subsection (3)(a)(i) shall be performed, if possible,
             196      before the date that the high impact funds request is formally submitted, but not later than three
             197      months after the date of formal submission.
             198          (b) (i) If the Legislature approves the new federal funds request, the agency may accept
             199      the new federal funds or participate in the new federal program.
             200          (ii) If the Legislature fails to approve the new federal funds request, the agency may not
             201      accept the new federal funds or participate in the new federal program.
             202          [(c)] (4) If an agency fails to comply with the procedures of this section or fails to
             203      obtain the Legislature's approval [under this Subsection (3)]:
             204          [(i)] (a) the governor or Judicial Council, as appropriate, may require the agency to
             205      withdraw the new federal funds request or refuse or return the new federal funds;
             206          [(ii)] (b) the Legislature may, if federal law allows, opt out or decline to participate in
             207      the new federal program or decline to receive the new federal funds; or
             208          [(iii)] (c) the Legislature may reduce the agency's General Fund appropriation in an
             209      amount less than, equal to, or greater than the amount of federal funds received by the agency.
             210          Section 4. Section 63J-5-205 is enacted to read:
             211          63J-5-205. Federal funds awards that exceed approved appropriations.
             212          Each agency that receives federal funds greater than the amount approved through the
             213      process provided for in this chapter may, using those excess funds, expend up to 25% in excess


             214      of the of the amount approved if:
             215          (1) receipt or use of the excess federal funds will not require the addition of one or
             216      more permanent full-time employees or permanent part-time employees;
             217          (2) no new state money will be required to match the excess federal funds; and
             218          (3) receipt or use of the excess federal funds will not require the state to comply with
             219      new requirements or conditions in order to receive the federal funds or to participate in the
             220      federal program.




Legislative Review Note
    as of 2-10-11 11:44 AM


Office of Legislative Research and General Counsel


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