H.B. 136

1

BUDGET RESERVE ACCOUNTS AMENDMENTS
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Ken Ivory
5 Senate Sponsor: Casey O. Anderson
6
7 LONG TITLE
8 General Description:
9 This bill recodifies, renames, and amends Title 63J, Chapter 1, Part 3, Budget-Related
10 Restricted Accounts, creates a restricted account for the purpose of funding programs or
11 services currently provided through federal funding in the event that the federal funding
12 is reduced, describes the funding of the account, and describes the interaction of this
13 new restricted account with other restricted accounts in the same part.
14 Highlighted Provisions:
15 This bill:
16 . defines terms;
17 . recodifies and renames Title 63J, Chapter 1, Part 3, Budget-Related Restricted
18 Accounts;
19 . creates a restricted account for the purpose of funding programs or services
20 currently provided through federal funding in the event that the federal funding is
21 reduced;
22 . describes the interaction of the restricted account described in the preceding
23 paragraph with other restricted accounts in Title 63J, Chapter 1, Part 3,
24 Budget-Related Restricted Accounts;
25 . describes the funding of the account created in this bill; and
26 . makes technical changes.
27 Money Appropriated in this Bill:

28 None
29 Other Special Clauses:
30 This bill takes effect on July 1, 2012.
31 Utah Code Sections Affected:
32 AMENDS:
33 51-9-202, as last amended by Laws of Utah 2011, Chapter 119
34 53-2-403, as last amended by Laws of Utah 2011, Chapter 342
35 53A-17a-146 (Effective 07/01/12), as last amended by Laws of Utah 2011, Chapters
36 371 and 381
37 59-12-103, as last amended by Laws of Utah 2011, Chapters 285, 303, 342, and 441
38 63A-5-104, as last amended by Laws of Utah 2011, Chapters 219 and 409
39 63J-1-201, as last amended by Laws of Utah 2011, Chapters 334 and 378
40 63J-1-201.7, as enacted by Laws of Utah 2011, Chapter 378
41 63J-1-217, as renumbered and amended by Laws of Utah 2009, Chapters 183 and 368
42 63J-3-103, as last amended by Laws of Utah 2010, Chapter 137
43 63M-1-905, as last amended by Laws of Utah 2011, Chapters 211 and 303
44 ENACTS:
45 63J-1-316, Utah Code Annotated 1953
46 63J-1-317, Utah Code Annotated 1953
47 63J-1-320, Utah Code Annotated 1953
48 RENUMBERS AND AMENDS:
49 63J-1-318, (Renumbered from 63J-1-315, as enacted by Laws of Utah 2011, Chapter
50 211)
51 63J-1-319, (Renumbered from 63J-1-312, as last amended by Laws of Utah 2011,
52 Chapters 211, 303, and 342)
53 63J-1-321, (Renumbered from 63J-1-314, as last amended by Laws of Utah 2011,
54 Chapters 211 and 303)
55 63J-1-322, (Renumbered from 63J-1-313, as last amended by Laws of Utah 2011,
56 Chapter 303)
57
58 Be it enacted by the Legislature of the state of Utah:

59 Section 1. Section 51-9-202 is amended to read:
60 51-9-202. Permanent state trust fund.
61 [(1) Until July 1, 2003, 50% of all funds of every kind that are received by the state
62 that are related to the settlement agreement that the state entered into with leading tobacco
63 manufacturers on November 23, 1998, shall be deposited into the permanent state trust fund
64 created by and operated under Utah Constitution Article XXII, Section 4.]
65 [(2) On and after July 1, 2003 and until July 1, 2004 20% of the funds of any kind
66 received by the state that are related to the settlement agreement that the state entered into with
67 leading tobacco manufacturers shall be deposited into the permanent state trust fund created by
68 and operated under Utah Constitution Article XXII, Section 4.]
69 [(3) On and after July 1, 2004 and until July 1, 2005, 30% of all funds of any kind
70 received by the state that are related to the settlement agreement that the state entered into with
71 leading tobacco manufacturers shall be deposited into the General Fund Budget Reserve
72 Account created in Section 63J-1-312 .]
73 [(4) On and after July 1, 2005 and until July 1, 2007, 25% of all funds of any kind
74 received by the state that are related to the settlement agreement that the state entered into with
75 leading tobacco manufacturers shall be deposited into the permanent state trust fund created by
76 and operated under Utah Constitution Article XXII, Section 4.]
77 [(5) On and after July 1, 2007, 40%]
78 (1) Forty percent of all funds of every kind that are received by the state that are related
79 to the settlement agreement that the state entered into with leading tobacco manufacturers on
80 November 23, 1998, shall be deposited into the General Fund and the remaining funds
81 deposited as directed.
82 [(6)] (2) Funds in the permanent state trust fund shall be deposited or invested pursuant
83 to Section 51-7-12.1 .
84 [(7)] (3) (a) In accordance with Utah Constitution Article XXII, Section 4, the interest
85 and dividends earned annually from the permanent state trust fund shall be deposited in the
86 General Fund. There shall be transferred on an ongoing basis from the General Fund to the
87 permanent state trust fund created under Utah Constitution Article XXII, Section 4, an amount
88 equal to 50% of the interest and dividends earned annually from the permanent state trust fund.
89 The amount transferred into the fund under this Subsection [(7)] (3)(a) shall be treated as

90 principal.
91 (b) Any annual interest or dividends earned from the permanent state trust fund that
92 remain in the General Fund after Subsection [(7)] (3)(a) may be appropriated by the
93 Legislature.
94 (c) Any realized or unrealized gains or losses on investments in the permanent state
95 trust fund shall remain in the permanent state trust fund.
96 [(8)] (4) This section does not apply to funds deposited under Chapter 9, Part 3,
97 Infrastructure and Economic Diversification Investment Account and Deposit of Certain
98 Severance Taxes into Permanent State Trust Fund Act, into the permanent state trust fund.
99 Section 2. Section 53-2-403 is amended to read:
100 53-2-403. State Disaster Recovery Restricted Account.
101 (1) (a) There is created a restricted account in the General Fund known as the "State
102 Disaster Recovery Restricted Account."
103 (b) The disaster recovery fund shall consist of:
104 (i) money deposited into the disaster recovery fund in accordance with Section
105 [ 63J-1-314 ] 63J-1-321 ;
106 (ii) money appropriated to the disaster recovery fund by the Legislature; and
107 (iii) any other public or private money received by the division that is:
108 (A) given to the division for purposes consistent with this section; and
109 (B) deposited into the disaster recovery fund at the request of:
110 (I) the division; or
111 (II) the person giving the money.
112 (c) The Division of Finance shall deposit interest or other earnings derived from
113 investment of fund money into the General Fund.
114 (d) Subject to being appropriated by the Legislature, money in the disaster recovery
115 fund may only be expended or committed to be expended as follows:
116 (i) (A) subject to Section 53-2-406 , in any fiscal year the division may expend or
117 commit to expend an amount that does not exceed $250,000, in accordance with Section
118 53-2-404 , to fund costs to the state of emergency disaster services in response to a declared
119 disaster;
120 (B) subject to Section 53-2-406 , in any fiscal year the division may expend or commit

121 to expend an amount that exceeds $250,000, but does not exceed $1,000,000, in accordance
122 with Section 53-2-404 , to fund costs to the state of emergency disaster services in response to a
123 declared disaster if the division:
124 (I) before making the expenditure or commitment to expend, obtains approval for the
125 expenditure or commitment to expend from the governor;
126 (II) subject to Subsection (4), provides written notice of the expenditure or
127 commitment to expend to the speaker of the House of Representatives, the president of the
128 Senate, the Division of Finance, and the Office of the Legislative Fiscal Analyst no later than
129 72 hours after making the expenditure or commitment to expend; and
130 (III) makes the report required by Subsection 53-2-406 (2); and
131 (C) subject to Section 53-2-406 , in any fiscal year the division may expend or commit
132 to expend an amount that exceeds $1,000,000, but does not exceed $3,000,000, in accordance
133 with Section 53-2-404 , to fund costs to the state of emergency disaster services in response to a
134 declared disaster if, before making the expenditure or commitment to expend, the division:
135 (I) obtains approval for the expenditure or commitment to expend from the governor;
136 and
137 (II) submits the expenditure or commitment to expend to the Executive Appropriations
138 Committee in accordance with Subsection 53-2-406 (3); and
139 (ii) subject to being appropriated by the Legislature, money not described in Subsection
140 (1)(d)(i) may be expended or committed to be expended to fund costs to the state directly
141 related to a declared disaster that are not costs related to:
142 (A) emergency disaster services;
143 (B) emergency preparedness; or
144 (C) notwithstanding whether or not a county participates in the Wildland Fire
145 Suppression Fund created in Section 65A-8-204 , any fire suppression or presuppression costs
146 that may be paid for from the Wildland Fire Suppression Fund if the county participates in the
147 Wildland Fire Suppression Fund.
148 (2) The state treasurer shall invest money in the disaster recovery fund according to
149 Title 51, Chapter 7, State Money Management Act.
150 (3) (a) Except as provided in Subsection (1), the money in the disaster recovery fund
151 may not be diverted, appropriated, expended, or committed to be expended for a purpose that is

152 not listed in this section.
153 (b) Notwithstanding Section 63J-1-410 , the Legislature may not appropriate money
154 from the disaster recovery fund to eliminate or otherwise reduce an operating deficit if the
155 money appropriated from the disaster recovery fund is expended or committed to be expended
156 for a purpose other than one listed in this section.
157 (c) The Legislature may not amend the purposes for which money in the disaster
158 recovery fund may be expended or committed to be expended except by the affirmative vote of
159 two-thirds of all the members elected to each house.
160 (4) The division:
161 (a) shall provide the notice required by Subsection (1)(d)(i)(B) using the best available
162 method under the circumstances as determined by the division; and
163 (b) may provide the notice required by Subsection (1)(d)(i)(B) in electronic format.
164 Section 3. Section 53A-17a-146 (Effective 07/01/12) is amended to read:
165 53A-17a-146 (Effective 07/01/12). Reduction of district allocation based on
166 insufficient revenues.
167 (1) As used in this section, "Minimum School Program funds" means the total of state
168 and local funds appropriated for the Minimum School Program, excluding:
169 (a) the state-supported voted local levy program pursuant to Section 53A-17a-133 ;
170 (b) the state-supported board local levy program pursuant to Section 53A-17a-164 ; and
171 (c) the appropriation to charter schools to replace local property tax revenues pursuant
172 to Section 53A-1a-513 .
173 (2) If the Legislature reduces appropriations made to support public schools under this
174 chapter because an Education Fund budget deficit, as defined in Section [ 63J-1-312 ]
175 63J-1-317 , exists, the State Board of Education, after consultation with each school district and
176 charter school, shall allocate the reduction among school districts and charter schools in
177 proportion to each school district's or charter school's percentage share of Minimum School
178 Program funds.
179 (3) Except as provided in Subsection (5) and subject to the requirements of Subsection
180 (7), a school district or charter school shall determine which programs are affected by a
181 reduction pursuant to Subsection (2) and the amount each program is reduced.
182 (4) Except as provided in Subsections (5) and (6), the requirement to spend a specified

183 amount in any particular program is waived if reductions are made pursuant to Subsection (2).
184 (5) A school district or charter school may not reduce or reallocate spending of funds
185 distributed to the school district or charter school for the following programs:
186 (a) educator salary adjustments provided in Section 53A-17a-153 ;
187 (b) the Teacher Salary Supplement Program provided in Section 53A-17a-156 ;
188 (c) the extended year for special educators provided in Section 53A-17a-158 ;
189 (d) USTAR centers provided in Section 53A-17a-159 ;
190 (e) the School LAND Trust Program created in Section 53A-16-101.5 ; or
191 (f) a special education program within the Basic School Program.
192 (6) A school district or charter school may not reallocate spending of funds distributed
193 to the school district or charter school to a reserve account.
194 (7) A school district or charter school that reduces or reallocates funds in accordance
195 with this section shall report all transfers into, or out of, Minimum School Program programs
196 to the State Board of Education as part of the school district or charter school's Annual
197 Financial and Program report.
198 Section 4. Section 59-12-103 is amended to read:
199 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
200 tax revenues.
201 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
202 charged for the following transactions:
203 (a) retail sales of tangible personal property made within the state;
204 (b) amounts paid for:
205 (i) telecommunications service, other than mobile telecommunications service, that
206 originates and terminates within the boundaries of this state;
207 (ii) mobile telecommunications service that originates and terminates within the
208 boundaries of one state only to the extent permitted by the Mobile Telecommunications
209 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
210 (iii) an ancillary service associated with a:
211 (A) telecommunications service described in Subsection (1)(b)(i); or
212 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
213 (c) sales of the following for commercial use:

214 (i) gas;
215 (ii) electricity;
216 (iii) heat;
217 (iv) coal;
218 (v) fuel oil; or
219 (vi) other fuels;
220 (d) sales of the following for residential use:
221 (i) gas;
222 (ii) electricity;
223 (iii) heat;
224 (iv) coal;
225 (v) fuel oil; or
226 (vi) other fuels;
227 (e) sales of prepared food;
228 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
229 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
230 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
231 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
232 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
233 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
234 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
235 horseback rides, sports activities, or any other amusement, entertainment, recreation,
236 exhibition, cultural, or athletic activity;
237 (g) amounts paid or charged for services for repairs or renovations of tangible personal
238 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
239 (i) the tangible personal property; and
240 (ii) parts used in the repairs or renovations of the tangible personal property described
241 in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
242 of that tangible personal property;
243 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
244 assisted cleaning or washing of tangible personal property;

245 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
246 accommodations and services that are regularly rented for less than 30 consecutive days;
247 (j) amounts paid or charged for laundry or dry cleaning services;
248 (k) amounts paid or charged for leases or rentals of tangible personal property if within
249 this state the tangible personal property is:
250 (i) stored;
251 (ii) used; or
252 (iii) otherwise consumed;
253 (l) amounts paid or charged for tangible personal property if within this state the
254 tangible personal property is:
255 (i) stored;
256 (ii) used; or
257 (iii) consumed; and
258 (m) amounts paid or charged for a sale:
259 (i) (A) of a product transferred electronically; or
260 (B) of a repair or renovation of a product transferred electronically; and
261 (ii) regardless of whether the sale provides:
262 (A) a right of permanent use of the product; or
263 (B) a right to use the product that is less than a permanent use, including a right:
264 (I) for a definite or specified length of time; and
265 (II) that terminates upon the occurrence of a condition.
266 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
267 is imposed on a transaction described in Subsection (1) equal to the sum of:
268 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
269 (A) 4.70%; and
270 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
271 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
272 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
273 State Sales and Use Tax Act; and
274 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
275 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211

276 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
277 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
278 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
279 transaction under this chapter other than this part.
280 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
281 on a transaction described in Subsection (1)(d) equal to the sum of:
282 (i) a state tax imposed on the transaction at a tax rate of 2%; and
283 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
284 transaction under this chapter other than this part.
285 (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
286 on amounts paid or charged for food and food ingredients equal to the sum of:
287 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
288 a tax rate of 1.75%; and
289 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
290 amounts paid or charged for food and food ingredients under this chapter other than this part.
291 (d) (i) For a bundled transaction that is attributable to food and food ingredients and
292 tangible personal property other than food and food ingredients, a state tax and a local tax is
293 imposed on the entire bundled transaction equal to the sum of:
294 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
295 (I) the tax rate described in Subsection (2)(a)(i)(A); and
296 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
297 Sales and Use Tax Act, if the location of the transaction as determined under Sections
298 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
299 Additional State Sales and Use Tax Act; and
300 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
301 Sales and Use Tax Act, if the location of the transaction as determined under Sections
302 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
303 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
304 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
305 described in Subsection (2)(a)(ii).
306 (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled

307 transaction described in Subsection (2)(d)(i):
308 (A) if the sales price of the bundled transaction is attributable to tangible personal
309 property, a product, or a service that is subject to taxation under this chapter and tangible
310 personal property, a product, or service that is not subject to taxation under this chapter, the
311 entire bundled transaction is subject to taxation under this chapter unless:
312 (I) the seller is able to identify by reasonable and verifiable standards the tangible
313 personal property, product, or service that is not subject to taxation under this chapter from the
314 books and records the seller keeps in the seller's regular course of business; or
315 (II) state or federal law provides otherwise; or
316 (B) if the sales price of a bundled transaction is attributable to two or more items of
317 tangible personal property, products, or services that are subject to taxation under this chapter
318 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
319 higher tax rate unless:
320 (I) the seller is able to identify by reasonable and verifiable standards the tangible
321 personal property, product, or service that is subject to taxation under this chapter at the lower
322 tax rate from the books and records the seller keeps in the seller's regular course of business; or
323 (II) state or federal law provides otherwise.
324 (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
325 seller's regular course of business includes books and records the seller keeps in the regular
326 course of business for nontax purposes.
327 (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
328 rate imposed under the following shall take effect on the first day of a calendar quarter:
329 (i) Subsection (2)(a)(i)(A);
330 (ii) Subsection (2)(b)(i);
331 (iii) Subsection (2)(c)(i); or
332 (iv) Subsection (2)(d)(i)(A)(I).
333 (f) (i) A tax rate increase shall take effect on the first day of the first billing period that
334 begins after the effective date of the tax rate increase if the billing period for the transaction
335 begins before the effective date of a tax rate increase imposed under:
336 (A) Subsection (2)(a)(i)(A);
337 (B) Subsection (2)(b)(i);

338 (C) Subsection (2)(c)(i); or
339 (D) Subsection (2)(d)(i)(A)(I).
340 (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
341 billing period that began before the effective date of the repeal of the tax or the tax rate
342 decrease if the billing period for the transaction begins before the effective date of the repeal of
343 the tax or the tax rate decrease imposed under:
344 (A) Subsection (2)(a)(i)(A);
345 (B) Subsection (2)(b)(i);
346 (C) Subsection (2)(c)(i); or
347 (D) Subsection (2)(d)(i)(A)(I).
348 (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
349 is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
350 or change in a tax rate takes effect:
351 (A) on the first day of a calendar quarter; and
352 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
353 (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
354 (A) Subsection (2)(a)(i)(A);
355 (B) Subsection (2)(b)(i);
356 (C) Subsection (2)(c)(i); or
357 (D) Subsection (2)(d)(i)(A)(I).
358 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
359 the commission may by rule define the term "catalogue sale."
360 (3) (a) The following state taxes shall be deposited into the General Fund:
361 (i) the tax imposed by Subsection (2)(a)(i)(A);
362 (ii) the tax imposed by Subsection (2)(b)(i);
363 (iii) the tax imposed by Subsection (2)(c)(i); or
364 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
365 (b) The following local taxes shall be distributed to a county, city, or town as provided
366 in this chapter:
367 (i) the tax imposed by Subsection (2)(a)(ii);
368 (ii) the tax imposed by Subsection (2)(b)(ii);

369 (iii) the tax imposed by Subsection (2)(c)(ii); and
370 (iv) the tax imposed by Subsection (2)(d)(i)(B).
371 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
372 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
373 through (g):
374 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
375 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
376 (B) for the fiscal year; or
377 (ii) $17,500,000.
378 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
379 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
380 Department of Natural Resources to:
381 (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
382 protect sensitive plant and animal species; or
383 (B) award grants, up to the amount authorized by the Legislature in an appropriations
384 act, to political subdivisions of the state to implement the measures described in Subsections
385 79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
386 (ii) Money transferred to the Department of Natural Resources under Subsection
387 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
388 person to list or attempt to have listed a species as threatened or endangered under the
389 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
390 (iii) At the end of each fiscal year:
391 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
392 Conservation and Development Fund created in Section 73-10-24 ;
393 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
394 Program Subaccount created in Section 73-10c-5 ; and
395 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
396 Program Subaccount created in Section 73-10c-5 .
397 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
398 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
399 created in Section 4-18-6 .

400 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
401 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
402 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
403 water rights.
404 (ii) At the end of each fiscal year:
405 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
406 Conservation and Development Fund created in Section 73-10-24 ;
407 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
408 Program Subaccount created in Section 73-10c-5 ; and
409 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
410 Program Subaccount created in Section 73-10c-5 .
411 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
412 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
413 Fund created in Section 73-10-24 for use by the Division of Water Resources.
414 (ii) In addition to the uses allowed of the Water Resources Conservation and
415 Development Fund under Section 73-10-24 , the Water Resources Conservation and
416 Development Fund may also be used to:
417 (A) conduct hydrologic and geotechnical investigations by the Division of Water
418 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
419 quantifying surface and ground water resources and describing the hydrologic systems of an
420 area in sufficient detail so as to enable local and state resource managers to plan for and
421 accommodate growth in water use without jeopardizing the resource;
422 (B) fund state required dam safety improvements; and
423 (C) protect the state's interest in interstate water compact allocations, including the
424 hiring of technical and legal staff.
425 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
426 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
427 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
428 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
429 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
430 created in Section 73-10c-5 for use by the Division of Drinking Water to:

431 (i) provide for the installation and repair of collection, treatment, storage, and
432 distribution facilities for any public water system, as defined in Section 19-4-102 ;
433 (ii) develop underground sources of water, including springs and wells; and
434 (iii) develop surface water sources.
435 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
436 2006, the difference between the following amounts shall be expended as provided in this
437 Subsection (5), if that difference is greater than $1:
438 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
439 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
440 (ii) $17,500,000.
441 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
442 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
443 credits; and
444 (B) expended by the Department of Natural Resources for watershed rehabilitation or
445 restoration.
446 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
447 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
448 created in Section 73-10-24 .
449 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
450 remaining difference described in Subsection (5)(a) shall be:
451 (A) transferred each fiscal year to the Division of Water Resources as dedicated
452 credits; and
453 (B) expended by the Division of Water Resources for cloud-seeding projects
454 authorized by Title 73, Chapter 15, Modification of Weather.
455 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
456 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
457 created in Section 73-10-24 .
458 (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
459 remaining difference described in Subsection (5)(a) shall be deposited into the Water
460 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
461 Division of Water Resources for:

462 (i) preconstruction costs:
463 (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
464 26, Bear River Development Act; and
465 (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
466 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
467 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
468 Chapter 26, Bear River Development Act;
469 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
470 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
471 (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
472 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
473 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
474 Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
475 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
476 incurred for employing additional technical staff for the administration of water rights.
477 (f) At the end of each fiscal year, any unexpended dedicated credits described in
478 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
479 Fund created in Section 73-10-24 .
480 (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
481 2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
482 tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
483 the Transportation Fund created by Section 72-2-102 .
484 (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
485 beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
486 Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
487 under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
488 transactions under Subsection (1).
489 (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
490 have been paid off and the highway projects completed that are intended to be paid from
491 revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
492 Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of

493 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
494 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
495 by a 1/64% tax rate on the taxable transactions under Subsection (1).
496 (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
497 Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
498 the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
499 taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
500 following taxes, which represents a portion of the approximately 17% of sales and use tax
501 revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
502 (i) the tax imposed by Subsection (2)(a)(i)(A);
503 (ii) the tax imposed by Subsection (2)(b)(i);
504 (iii) the tax imposed by Subsection (2)(c)(i); and
505 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
506 (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
507 Subsection (7)(a), and until Subsection (8)(c) applies, for the 2011-12 fiscal year only, the
508 Division of Finance shall deposit into the Centennial Highway Fund Restricted Account
509 created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3%
510 of the revenues collected from the following taxes, which represents a portion of the
511 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
512 on vehicles and vehicle-related products:
513 (i) the tax imposed by Subsection (2)(a)(i)(A);
514 (ii) the tax imposed by Subsection (2)(b)(i);
515 (iii) the tax imposed by Subsection (2)(c)(i); and
516 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
517 (c) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
518 Subsection (7)(b), and until Subsection (8)(d) or (e) applies, when the highway general
519 obligation bonds have been paid off and the highway projects completed that are intended to be
520 paid from revenues deposited in the Centennial Highway Fund Restricted Account as
521 determined by the Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the
522 Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by
523 Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the

524 revenues collected from the following taxes, which represents a portion of the approximately
525 17% of sales and use tax revenues generated annually by the sales and use tax on vehicles and
526 vehicle-related products:
527 (i) the tax imposed by Subsection (2)(a)(i)(A);
528 (ii) the tax imposed by Subsection (2)(b)(i);
529 (iii) the tax imposed by Subsection (2)(c)(i); and
530 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
531 (d) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
532 Subsection (7)(a), until Subsection (8)(e) applies, and subject to Subsection (8)(f), for a fiscal
533 year beginning on or after July 1, 2012, the Division of Finance shall deposit into the
534 Centennial Highway Fund Restricted Account created by Section 72-2-118 :
535 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
536 the revenues collected from the following taxes, which represents a portion of the
537 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
538 on vehicles and vehicle-related products:
539 (A) the tax imposed by Subsection (2)(a)(i)(A);
540 (B) the tax imposed by Subsection (2)(b)(i);
541 (C) the tax imposed by Subsection (2)(c)(i); and
542 (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
543 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
544 current fiscal year from the sales and use taxes described in Subsections (8)(d)(i)(A) through
545 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
546 (8)(d)(i)(A) through (D) in the 2010-11 fiscal year.
547 (e) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
548 Subsection (7)(b), and subject to Subsection (8)(f), when the highway general obligation bonds
549 have been paid off and the highway projects completed that are intended to be paid from
550 revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
551 Executive Appropriations Committee under Subsection 72-2-118 (6)(d), for a fiscal year
552 beginning on or after July 1, 2012, the Division of Finance shall deposit into the Transportation
553 Investment Fund of 2005 created by Section 72-2-124 :
554 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of

555 the revenues collected from the following taxes, which represents a portion of the
556 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
557 on vehicles and vehicle-related products:
558 (A) the tax imposed by Subsection (2)(a)(i)(A);
559 (B) the tax imposed by Subsection (2)(b)(i);
560 (C) the tax imposed by Subsection (2)(c)(i); and
561 (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
562 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
563 current fiscal year from the sales and use taxes described in Subsections (8)(e)(i)(A) through
564 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
565 (8)(e)(i)(A) through (D) in the 2010-11 fiscal year.
566 (f) (i) Subject to Subsections (8)(f)(ii) and (iii), in any fiscal year that the portion of the
567 sales and use taxes deposited under Subsection (8)(d) or (e) represents an amount that is a total
568 lower percentage of the sales and use taxes described in Subsections (8)(e)(i)(A) through (D)
569 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
570 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
571 (8)(d) or (e) equal to the product of:
572 (A) the total percentage of sales and use taxes deposited under Subsection (8)(d) or (e)
573 in the previous fiscal year; and
574 (B) the total sales and use tax revenue generated by the taxes described in Subsections
575 (8)(e)(i)(A) through (D) in the current fiscal year.
576 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
577 Subsection (8)(d) or (e) would exceed 17% of the revenues collected from the sales and use
578 taxes described in Subsections (8)(e)(i)(A) through (D) in the current fiscal year, the Division
579 of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
580 in Subsections (8)(e)(i)(A) through (D) for the current fiscal year under Subsection (8)(d) or
581 (e).
582 (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
583 from the sales and use taxes described in Subsections (8)(e)(i)(A) through (D) was deposited
584 under Subsection (8)(d) or (e), the Division of Finance shall annually deposit 17% of the
585 revenues collected from the sales and use taxes described in Subsections (8)(e)(i)(A) through

586 (D) in the current fiscal year under Subsection (8)(d) or (e).
587 (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
588 Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
589 under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
590 (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
591 year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
592 $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
593 Critical Highway Needs Fund created by Section 72-2-125 .
594 (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
595 Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
596 have been paid off and the highway projects completed that are included in the prioritized
597 project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
598 72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
599 generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
600 of 2005 created by Section 72-2-124 .
601 (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
602 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
603 created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
604 (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
605 (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
606 Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
607 amount of tax revenue generated by a .025% tax rate on the transactions described in
608 Subsection (1).
609 (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
610 the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
611 food and food ingredients, except for tax revenue generated by a bundled transaction
612 attributable to food and food ingredients and tangible personal property other than food and
613 food ingredients described in Subsection (2)[(e)](d).
614 (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
615 and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
616 obligation bonds authorized by Section 63B-16-101 have been paid off and the highway

617 projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
618 as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
619 deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
620 amount of tax revenue generated by a .025% tax rate on the transactions described in
621 Subsection (1).
622 (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
623 the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
624 charged for food and food ingredients, except for tax revenue generated by a bundled
625 transaction attributable to food and food ingredients and tangible personal property other than
626 food and food ingredients described in Subsection (2)[(e)](d).
627 (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
628 (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
629 Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
630 .025% tax rate on the transactions described in Subsection (1) to be expended to address
631 chokepoints in construction management.
632 (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
633 the Transportation Fund any tax revenue generated by amounts paid or charged for food and
634 food ingredients, except for tax revenue generated by a bundled transaction attributable to food
635 and food ingredients and tangible personal property other than food and food ingredients
636 described in Subsection (2)[(e)](d).
637 (13) (a) Notwithstanding Subsection (3)(a), beginning on July 1, 2013, the Division of
638 Finance shall annually deposit a portion of the taxes listed under Subsection (3)(a) into the
639 Federal Fund Replacement Budget Reserve Account, created in Section 63J-1-320 , in an
640 amount equal to 10% of the growth in the amount of revenues collected in the current fiscal
641 year from the sales and use taxes described in Subsection (3)(a) that exceeds the revenues
642 collected from the sales and use taxes described in Subsection (3)(a) in fiscal year 2010-11.
643 (b) If the 10% transfer described in Subsection (13)(a) would cause the balance in the
644 Federal Fund Replacement Budget Reserve Account to exceed 30% of the total federal funds
645 received in the most recently completed fiscal year, the Division of Finance shall deposit only
646 those funds necessary to ensure that the balance in the account equals 30% of the total federal
647 funds received in the most recently completed fiscal year.

648 (c) Subsections (13)(a) and (b) do not apply if, in at least one of the three most recently
649 completed fiscal years, there was an operating deficit.
650 Section 5. Section 63A-5-104 is amended to read:
651 63A-5-104. Definitions -- Capital development and capital improvement process
652 -- Approval requirements -- Limitations on new projects -- Emergencies.
653 (1) As used in this section:
654 (a) "Capital developments" means a:
655 (i) remodeling, site, or utility project with a total cost of $2,500,000 or more;
656 (ii) new facility with a construction cost of $500,000 or more; or
657 (iii) purchase of real property where an appropriation is requested to fund the purchase.
658 (b) "Capital improvements" means a:
659 (i) remodeling, alteration, replacement, or repair project with a total cost of less than
660 $2,500,000;
661 (ii) site and utility improvement with a total cost of less than $2,500,000; or
662 (iii) new facility with a total construction cost of less than $500,000.
663 (c) (i) "New facility" means the construction of a new building on state property
664 regardless of funding source.
665 (ii) "New facility" includes:
666 (A) an addition to an existing building; and
667 (B) the enclosure of space that was not previously fully enclosed.
668 (iii) "New facility" does not mean:
669 (A) the replacement of state-owned space that is demolished or that is otherwise
670 removed from state use, if the total construction cost of the replacement space is less than
671 $2,500,000; or
672 (B) the construction of facilities that do not fully enclose a space.
673 (d) "Replacement cost of existing state facilities" means the replacement cost, as
674 determined by the Division of Risk Management, of state facilities, excluding auxiliary
675 facilities as defined by the State Building Board.
676 (e) "State funds" means public money appropriated by the Legislature.
677 (2) The State Building Board, on behalf of all state agencies, commissions,
678 departments, and institutions shall submit its capital development recommendations and

679 priorities to the Legislature for approval and prioritization.
680 (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
681 project may not be constructed on state property without legislative approval.
682 (b) Legislative approval is not required for a capital development project that consists
683 of the design or construction of a new facility if the State Building Board determines that:
684 (i) the requesting state agency, commission, department, or institution has provided
685 adequate assurance that:
686 (A) state funds will not be used for the design or construction of the facility; and
687 (B) the state agency, commission, department, or institution has a plan for funding in
688 place that will not require increased state funding to cover the cost of operations and
689 maintenance to, or state funding for, immediate or future capital improvements to the resulting
690 facility; and
691 (ii) the use of the state property is:
692 (A) appropriate and consistent with the master plan for the property; and
693 (B) will not create an adverse impact on the state.
694 (c) (i) The Division of Facilities Construction and Management shall maintain a record
695 of facilities constructed under the exemption provided in Subsection (3)(b).
696 (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
697 agency, commission, department, or institution may not request:
698 (A) increased state funds for operations and maintenance; or
699 (B) state capital improvement funding.
700 (d) Legislative approval is not required for:
701 (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
702 that has been approved by the State Building Board;
703 (ii) a facility to be built with nonstate funds and owned by nonstate entities within
704 research park areas at the University of Utah and Utah State University;
705 (iii) a facility to be built at This is the Place State Park by This is the Place Foundation
706 with funds of the foundation, including grant money from the state, or with donated services or
707 materials;
708 (iv) a capital project that:
709 (A) is funded by:

710 (I) the Uintah Basin Revitalization Fund; or
711 (II) the Navajo Revitalization Fund; and
712 (B) does not provide a new facility for a state agency or higher education institution; or
713 (v) a capital project on school and institutional trust lands that is funded by the School
714 and Institutional Trust Lands Administration from the Land Grant Management Fund and that
715 does not fund construction of a new facility for a state agency or higher education institution.
716 (e) (i) Legislative approval is not required for capital development projects to be built
717 for the Department of Transportation as a result of an exchange of real property under Section
718 72-5-111 .
719 (ii) When the Department of Transportation approves those exchanges, it shall notify
720 the president of the Senate, the speaker of the House, and the cochairs of the Capital Facilities
721 and Administrative Services Subcommittee of the Legislature's Joint Appropriation Committee
722 about any new facilities to be built under this exemption.
723 (4) (a) (i) The State Building Board, on behalf of all state agencies, commissions,
724 departments, and institutions shall by January 15 of each year, submit a list of anticipated
725 capital improvement requirements to the Legislature for review and approval.
726 (ii) The list shall identify:
727 (A) a single project that costs more than $1,000,000;
728 (B) multiple projects within a single building or facility that collectively cost more than
729 $1,000,000;
730 (C) a single project that will be constructed over multiple years with a yearly cost of
731 $1,000,000 or more and an aggregate cost of more than $2,500,000;
732 (D) multiple projects within a single building or facility with a yearly cost of
733 $1,000,000 or more and an aggregate cost of more than $2,500,000;
734 (E) a single project previously reported to the Legislature as a capital improvement
735 project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
736 more than $1,000,000; and
737 (F) multiple projects within a single building or facility previously reported to the
738 Legislature as a capital improvement project under $1,000,000 that, because of an increase in
739 costs or scope of work, will now cost more than $1,000,000.
740 (b) Unless otherwise directed by the Legislature, the State Building Board shall

741 prioritize capital improvements from the list submitted to the Legislature up to the level of
742 appropriation made by the Legislature.
743 (c) In prioritizing capital improvements, the State Building Board shall consider the
744 results of facility evaluations completed by an architect/engineer as stipulated by the building
745 board's facilities maintenance standards.
746 (d) The State Building Board may require an entity that benefits from a capital
747 improvement project to repay the capital improvement funds from savings that result from the
748 project.
749 (e) The State Building Board may provide capital improvement funding to a single
750 project, or to multiple projects within a single building or facility, even if the total cost of the
751 project or multiple projects is $2,500,000 or more, if:
752 (i) the capital improvement project or multiple projects require more than one year to
753 complete; and
754 (ii) the Legislature has affirmatively authorized the capital improvement project or
755 multiple projects to be funded in phases.
756 (5) The Legislature may authorize:
757 (a) the total square feet to be occupied by each state agency; and
758 (b) the total square feet and total cost of lease space for each agency.
759 (6) (a) Except as provided in Subsection (6)(b) or (c), the Legislature may not fund the
760 design or construction of any new capital development projects, except to complete the funding
761 of projects for which partial funding has been previously provided, until the Legislature has
762 appropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
763 (b) (i) As used in this Subsection (6)(b):
764 (A) "Education Fund budget deficit" is as defined in Section [ 63J-1-312 ] 63J-1-317 ;
765 and
766 (B) "General Fund budget deficit" is as defined in Section [ 63J-1-312 ] 63J-1-317 .
767 (ii) If the Legislature determines that an Education Fund budget deficit or a General
768 Fund budget deficit exists, the Legislature may, in eliminating the deficit, reduce the amount
769 appropriated to capital improvements to 0.9% of the replacement cost of state buildings.
770 (c) The requirements under Subsections (6)(a) and (b) do not apply to the 2008-09,
771 2009-10, 2010-11, and 2011-12 fiscal years.

772 (7) (a) If, after approval of capital development and capital improvement priorities by
773 the Legislature under this section, emergencies arise that create unforeseen critical capital
774 improvement projects, the State Building Board may, notwithstanding the requirements of Title
775 63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to address
776 those projects.
777 (b) The State Building Board shall report any changes it makes in capital improvement
778 allocations approved by the Legislature to:
779 (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
780 (ii) the Legislature at its next annual general session.
781 (8) (a) The State Building Board may adopt a rule allocating to institutions and
782 agencies their proportionate share of capital improvement funding.
783 (b) The State Building Board shall ensure that the rule:
784 (i) reserves funds for the Division of Facilities Construction and Management for
785 emergency projects; and
786 (ii) allows the delegation of projects to some institutions and agencies with the
787 requirement that a report of expenditures will be filed annually with the Division of Facilities
788 Construction and Management and appropriate governing bodies.
789 (9) It is the intent of the Legislature that in funding capital improvement requirements
790 under this section the General Fund be considered as a funding source for at least half of those
791 costs.
792 Section 6. Section 63J-1-201 is amended to read:
793 63J-1-201. Governor's proposed budget to Legislature -- Contents -- Preparation
794 -- Appropriations based on current tax laws and not to exceed estimated revenues.
795 (1) The governor shall deliver, not later than 30 days before the date the Legislature
796 convenes in the annual general session, a confidential draft copy of the governor's proposed
797 budget recommendations to the Office of the Legislative Fiscal Analyst according to the
798 requirements of this section.
799 (2) (a) When submitting a proposed budget, the governor shall, within the first three
800 days of the annual general session of the Legislature, submit to the presiding officer of each
801 house of the Legislature:
802 (i) a proposed budget for the ensuing fiscal year;

803 (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
804 with each change clearly itemized and classified; and
805 (iii) as applicable, a document showing proposed changes in estimated revenues that
806 are based on changes in state tax laws or rates.
807 (b) The proposed budget shall include:
808 (i) a projection of the total estimated revenues and appropriations for the next fiscal
809 year;
810 (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
811 federal grants or assistance programs included in the budget;
812 (iii) a plan of proposed changes to appropriations and estimated revenues for the next
813 fiscal year that is based upon the current fiscal year state tax laws and rates;
814 (iv) an itemized estimate of the proposed changes to appropriations for:
815 (A) the Legislative Department as certified to the governor by the president of the
816 Senate and the speaker of the House;
817 (B) the Executive Department;
818 (C) the Judicial Department as certified to the governor by the state court
819 administrator;
820 (D) changes to salaries payable by the state under the Utah Constitution or under law
821 for lease agreements planned for the next fiscal year; and
822 (E) all other changes to ongoing or one-time appropriations, including dedicated
823 credits, restricted funds, nonlapsing balances, grants, and federal funds;
824 (v) for each line item, the average annual dollar amount of staff funding associated
825 with all positions that were vacant during the last fiscal year;
826 (vi) deficits or anticipated deficits;
827 (vii) the recommendations for each state agency for new full-time employees for the
828 next fiscal year, which shall also be provided to the State Building Board as required by
829 Subsection 63A-5-103 (2);
830 (viii) any explanation that the governor may desire to make as to the important features
831 of the budget and any suggestion as to methods for the reduction of expenditures or increase of
832 the state's revenue; and
833 (ix) information detailing certain fee increases as required by Section 63J-1-504 .

834 (3) For the purpose of preparing and reporting the proposed budget:
835 (a) The governor shall require the proper state officials, including all public and higher
836 education officials, all heads of executive and administrative departments and state institutions,
837 bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
838 state money, and all institutions applying for state money and appropriations, to provide
839 itemized estimates of changes in revenues and appropriations.
840 (b) The governor may require the persons and entities subject to Subsection (3)(a) to
841 provide other information under these guidelines and at times as the governor may direct,
842 which may include a requirement for program productivity and performance measures, where
843 appropriate, with emphasis on outcome indicators.
844 (c) The governor may require representatives of public and higher education, state
845 departments and institutions, and other institutions or individuals applying for state
846 appropriations to attend budget meetings.
847 (4) In submitting the budgets for the Departments of Health and Human Services and
848 the Office of the Attorney General, the governor shall consider a separate recommendation in
849 the governor's budget for changes in funds to be contracted to:
850 (a) local mental health authorities under Section 62A-15-110 ;
851 (b) local substance abuse authorities under Section 62A-15-110 ;
852 (c) area agencies under Section 62A-3-104.2 ;
853 (d) programs administered directly by and for operation of the Divisions of Substance
854 Abuse and Mental Health and Aging and Adult Services;
855 (e) local health departments under Title 26A, Chapter 1, Local Health Departments;
856 and
857 (f) counties for the operation of Children's Justice Centers under Section 67-5b-102 .
858 (5) (a) In making budget recommendations, the governor shall consider an amount
859 sufficient to grant the following entities the same percentage increase for wages and benefits
860 that the governor includes in the governor's budget for persons employed by the state:
861 (i) local health departments, local mental health authorities, local substance abuse
862 authorities, and area agencies;
863 (ii) local conservation districts and Utah Association of Conservation District
864 employees, as related to the budget for the Department of Agriculture; and

865 (iii) employees of corporations that provide direct services under contract with:
866 (A) the Utah State Office of Rehabilitation and the Division of Services for People
867 with Disabilities;
868 (B) the Division of Child and Family Services; and
869 (C) the Division of Juvenile Justice Services within the Department of Human
870 Services.
871 (b) If the governor does not include in the governor's budget an amount sufficient to
872 grant an increase for any entity described in Subsection (5)(a), the governor shall include a
873 message to the Legislature regarding the governor's reason for not including that amount.
874 (6) (a) The Families, Agencies, and Communities Together Council may propose a
875 budget recommendation to the governor for collaborative service delivery systems operated
876 under Section 63M-9-402 , as provided under Subsection 63M-9-201 (4)(e).
877 (b) The Legislature may, through a specific program schedule, designate funds
878 appropriated for collaborative service delivery systems operated under Section 63M-9-402 .
879 (7) The governor shall include in the governor's budget the state's portion of the budget
880 for the Utah Communications Agency Network established in Title 63C, Chapter 7, Utah
881 Communications Agency Network Act.
882 (8) (a) The governor shall include a separate recommendation in the governor's budget
883 for funds to maintain the operation and administration of the Utah Comprehensive Health
884 Insurance Pool. In making the recommendation, the governor may consider:
885 (i) actuarial analysis of growth or decline in enrollment projected over a period of at
886 least three years;
887 (ii) actuarial analysis of the medical and pharmacy claims costs projected over a period
888 of at least three years;
889 (iii) the annual Medical Care Consumer Price Index;
890 (iv) the annual base budget for the pool established by the Commerce and Revenue
891 Appropriations Subcommittee for each fiscal year;
892 (v) the growth or decline in insurance premium taxes and fees collected by the State
893 Tax Commission and the Insurance Department; and
894 (vi) the availability of surplus General Fund revenue under Section [ 63J-1-312 ]
895 63J-1-319 and Subsection 59-14-204 (5)(b).

896 (b) In considering the factors in Subsections (8)(a)(i), (ii), and (iii), the governor may
897 consider the actuarial data and projections prepared for the board of the Utah Comprehensive
898 Health Insurance Pool as it develops the governor's financial statements and projections for
899 each fiscal year.
900 (9) (a) In submitting the budget for the Department of Public Safety, the governor shall
901 include a separate recommendation in the governor's budget for maintaining a sufficient
902 number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
903 or below the number specified in Subsection 32B-1-201 (2).
904 (b) If the governor does not include in the governor's budget an amount sufficient to
905 maintain the number of alcohol-related law enforcement officers described in Subsection
906 (9)(a), the governor shall include a message to the Legislature regarding the governor's reason
907 for not including that amount.
908 (10) (a) The governor may revise all estimates, except those relating to the Legislative
909 Department, the Judicial Department, and those providing for the payment of principal and
910 interest to the state debt and for the salaries and expenditures specified by the Utah
911 Constitution or under the laws of the state.
912 (b) The estimate for the Judicial Department, as certified by the state court
913 administrator, shall also be included in the budget without revision, but the governor may make
914 separate recommendations on the estimate.
915 (11) The total appropriations requested for expenditures authorized by the budget may
916 not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
917 fiscal year.
918 (12) If any item of the budget as enacted is held invalid upon any ground, the invalidity
919 does not affect the budget itself or any other item in it.
920 Section 7. Section 63J-1-201.7 is amended to read:
921 63J-1-201.7. Legislative budget considerations -- Wage increases for certain
922 entities -- Comprehensive health insurance pool.
923 (1) In adopting a budget for each fiscal year, the Legislature shall consider an amount
924 sufficient to grant local health departments, local mental health authorities, local substance
925 abuse authorities, area agencies on aging, conservation districts, and Utah Association of
926 Conservation District employees the same percentage increase for wages and benefits that is

927 included in the budget for persons employed by the state.
928 (2) (a) In adopting a budget each year for the Utah Comprehensive Health Insurance
929 Pool, the Legislature shall determine an amount that is sufficient to fund the pool for each
930 fiscal year.
931 (b) When making a determination under this Subsection (2), the Legislature shall
932 consider factors it determines are appropriate, which may include:
933 (i) actuarial analysis of growth or decline in enrollment projected over a period of at
934 least three years;
935 (ii) actuarial analysis of the medical and pharmacy claims costs projected over a period
936 of at least three years;
937 (iii) the annual Medical Care Consumer Price Index;
938 (iv) the annual base budget for the pool established by the Commerce and Revenue
939 Appropriations Subcommittee for each fiscal year;
940 (v) the growth or decline in insurance premium taxes and fees collected by the tax
941 commission and the insurance department from the previous fiscal year; and
942 (vi) the availability of surplus General Fund revenue under Section [ 63J-1-312 ]
943 63J-1-319 and Subsection 59-14-204 (5)(b).
944 (c) In considering the factors in Subsections (2)(b)(i), (ii), and (iii), the Legislature may
945 consider the actuarial data and projections prepared for the board of the Utah Comprehensive
946 Health Insurance Pool as it develops its financial statements and projections for each fiscal
947 year.
948 (d) The funds appropriated by the Legislature to fund the Utah Comprehensive Health
949 Insurance Pool as determined under this Subsection (2):
950 (i) shall be deposited into the fund established by Section 31A-29-120 ; and
951 (ii) are restricted and are to be used to maintain the operation, administration, and
952 management of the Utah Comprehensive Health Insurance Pool created by Section
953 31A-29-104 .
954 Section 8. Section 63J-1-217 is amended to read:
955 63J-1-217. Overexpenditure of budget by agency -- Prorating budget income
956 shortfall.
957 (1) Expenditures of departments, agencies, and institutions of state government shall be

958 kept within revenues available for such expenditures.
959 (2) (a) Line items of appropriation shall not be overexpended.
960 (b) Notwithstanding Subsection (2)(a), if an agency's line item is overexpended at the
961 close of a fiscal year:
962 (i) the director of the Division of Finance may make payments from the line item to
963 vendors for goods or services that were received on or before June 30; and
964 (ii) the director of the Division of Finance shall immediately reduce the agency's line
965 item budget in the current year by the amount of the overexpenditure.
966 (c) Each agency with an overexpended line item shall:
967 (i) prepare a written report explaining the reasons for the overexpenditure; and
968 (ii) present the report to:
969 (A) the Board of Examiners as required by Section 63G-9-301 ; and
970 (B) the Office of the Legislative Fiscal Analyst.
971 (3) (a) As used in this Subsection (3):
972 (i) "Education Fund budget deficit" [has the same meaning as] is as defined in Section
973 [ 63J-1-312 ] 63J-1-317 ; and
974 (ii) "General Fund budget deficit" [has the same meaning as] is as defined in Section
975 [ 63J-1-312 ] 63J-1-317 .
976 (b) If an Education Fund budget deficit or a General Fund budget deficit exists and the
977 adopted estimated revenues were prepared in consensus with the Governor's Office of Planning
978 and Budget, the governor shall:
979 (i) direct state agencies to reduce commitments and expenditures by an amount
980 proportionate to the amount of the deficiency; and
981 (ii) direct the Division of Finance to reduce allotments to institutions of higher
982 education by an amount proportionate to the amount of the deficiency.
983 (c) The governor's directions under Subsection (3)(b) are rescinded when the
984 Legislature rectifies the Education Fund budget deficit and the General Fund budget deficit.
985 (4) (a) A department may not receive an advance of funds that cannot be covered by
986 anticipated revenue within the work program of the fiscal year, unless the governor allocates
987 money from the governor's emergency appropriations.
988 (b) All allocations made from the governor's emergency appropriations shall be

989 reported to the budget subcommittee of the Legislative Management Committee by notifying
990 the Office of the Legislative Fiscal Analyst at least 15 days before the effective date of the
991 allocation.
992 (c) Emergency appropriations shall be allocated only to support activities having
993 existing legislative approval and appropriation, and may not be allocated to any activity or
994 function rejected directly or indirectly by the Legislature.
995 Section 9. Section 63J-1-316 is enacted to read:
996 Part 3. Budget Reserve Accounts
997 63J-1-316. Title.
998 This part is known as "Budget Reserve Accounts."
999 Section 10. Section 63J-1-317 is enacted to read:
1000 63J-1-317. Definitions.
1001 As used in this part:
1002 (1) "Education Fund budget deficit" means a situation where appropriations made by
1003 the Legislature from the Education Fund for a fiscal year exceed the estimated revenues
1004 adopted by the Executive Appropriations Committee of the Legislature for the Education Fund
1005 in that fiscal year.
1006 (2) "General Fund appropriations" means the sum of the spending authority for a fiscal
1007 year that is:
1008 (a) granted by the Legislature in all appropriation acts and bills; and
1009 (b) identified as coming from the General Fund.
1010 (3) "General Fund budget deficit" means a situation where General Fund
1011 appropriations made by the Legislature for a fiscal year exceed the estimated revenues adopted
1012 by the Executive Appropriations Committee of the Legislature for the General Fund in that
1013 fiscal year.
1014 (4) "General Fund revenue surplus" means a situation where actual General Fund
1015 revenues collected in a completed fiscal year exceed the estimated revenues for the General
1016 Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
1017 Legislature.
1018 Section 11. Section 63J-1-318 , which is renumbered from Section 63J-1-315 is
1019 renumbered and amended to read:

1020 [63J-1-315]. 63J-1-318. Medicaid Growth Reduction and Budget
1021 Stabilization Restricted Account --Transfers of Medicaid growth savings -- Base budget
1022 adjustments.
1023 (1) As used in this section:
1024 (a) "Department" means the Department of Health created in Section 26-1-4 .
1025 (b) "Division" means the Division of Health Care Financing created within the
1026 department under Section 26-18-2.1 .
1027 [(c) "General Fund revenue surplus" means a situation where actual General Fund
1028 revenues collected in a completed fiscal year exceed the estimated revenues for the General
1029 Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
1030 Legislature.]
1031 [(d)] (c) "Medicaid growth savings" means the Medicaid growth target minus Medicaid
1032 program expenditures, if Medicaid program expenditures are less than the Medicaid growth
1033 target.
1034 [(e)] (d) "Medicaid growth target" means Medicaid program expenditures for the
1035 previous year multiplied by 1.08.
1036 [(f)] (e) "Medicaid program" is as defined in Section 26-18-2 .
1037 [(g)] (f) "Medicaid program expenditures" means total state revenue expended for the
1038 Medicaid program from the General Fund, including restricted accounts within the General
1039 Fund, during a fiscal year.
1040 [(h)] (g) "Medicaid program expenditures for the previous year" means total state
1041 revenue expended for the Medicaid program from the General Fund, including restricted
1042 accounts within the General Fund, during the fiscal year immediately preceding a fiscal year for
1043 which Medicaid program expenditures are calculated.
1044 [(i)] (h) "Operating deficit" means that, at the end of the fiscal year, the unassigned
1045 fund balance in the General Fund is less than zero.
1046 [(j)] (i) "State revenue" means revenue other than federal revenue.
1047 [(k)] (j) "State revenue expended for the Medicaid program" includes money
1048 transferred or appropriated to the Medicaid Growth Reduction and Budget Stabilization
1049 Account only to the extent the money is appropriated for the Medicaid program by the
1050 Legislature.

1051 (2) There is created within the General Fund a restricted account to be known as the
1052 Medicaid Growth Reduction and Budget Stabilization Account.
1053 (3) (a) (i) Except as provided in Subsection (6), if, at the end of a fiscal year, there is a
1054 General Fund revenue surplus, the Division of Finance shall transfer an amount equal to
1055 Medicaid growth savings from the General Fund to the Medicaid Growth Reduction and
1056 Budget Stabilization Account.
1057 (ii) If the amount transferred is reduced to prevent an operating deficit, as provided in
1058 Subsection (6), the Legislature shall include, to the extent revenue is available, an amount
1059 equal to the reduction as an appropriation from the General Fund to the account in the base
1060 budget for the second fiscal year following the fiscal year for which the reduction was made.
1061 (b) If, at the end of a fiscal year, there is not a General Fund revenue surplus, the
1062 Legislature shall include, to the extent revenue is available, an amount equal to Medicaid
1063 growth savings as an appropriation from the General Fund to the account in the base budget for
1064 the second fiscal year following the fiscal year for which the reduction was made.
1065 (c) Subsections (3)(a) and (3)(b) apply only to the fiscal year in which the department
1066 implements the proposal developed under Section 26-18-405 to reduce the long-term growth in
1067 state expenditures for the Medicaid program, and to each fiscal year after that year.
1068 (4) The Division of Finance shall calculate the amount to be transferred under
1069 Subsection (3):
1070 (a) before transferring revenue from the General Fund revenue surplus to:
1071 (i) the General Fund Budget Reserve Account under Section [ 63J-1-312 and]
1072 63J-1-319 ;
1073 (ii) the Federal Fund Replacement Budget Reserve Account under Section 63J-1-320 ;
1074 and
1075 [(ii)] (iii) the State Disaster Recovery Restricted Account under Section [ 63J-1-314 ]
1076 63J-1-321 ;
1077 (b) before earmarking revenue from the General Fund revenue surplus to the Industrial
1078 Assistance Account under Section 63M-1-905 ; and
1079 (c) before making any other year-end contingency appropriations, year-end set-asides,
1080 or other year-end transfers required by law.
1081 (5) (a) If, at the close of any fiscal year, there appears to be insufficient money to pay

1082 additional debt service for any bonded debt authorized by the Legislature, the Division of
1083 Finance may hold back from any General Fund revenue surplus money sufficient to pay the
1084 additional debt service requirements resulting from issuance of bonded debt that was
1085 authorized by the Legislature.
1086 (b) The Division of Finance may not spend the hold back amount for debt service
1087 under Subsection (5)(a) unless and until it is appropriated by the Legislature.
1088 (c) If, after calculating the amount for transfer under Subsection (3), the remaining
1089 General Fund revenue surplus is insufficient to cover the hold back for debt service required by
1090 Subsection (5)(a), the Division of Finance shall reduce the transfer to the Medicaid Growth
1091 Reduction and Budget Stabilization Account by the amount necessary to cover the debt service
1092 hold back.
1093 (d) Notwithstanding Subsections (3) and (4), the Division of Finance shall hold back
1094 the General Fund balance for debt service authorized by this Subsection (5) before making any
1095 transfers to the Medicaid Growth Reduction and Budget Stabilization Account or any other
1096 designation or allocation of General Fund revenue surplus.
1097 (6) Notwithstanding Subsections (3) and (4), if, at the end of a fiscal year, the Division
1098 of Finance determines that an operating deficit exists and that holding back earmarks to the
1099 Industrial Assistance Account under Section 63M-1-905 , transfers to the State Disaster
1100 Recovery Restricted Account under Section [ 63J-1-314 ,] 63J-1-321 , transfers to the Federal
1101 Fund Replacement Budget Reserve Account under Section 63J-1-320 , transfers to the General
1102 Fund Budget Reserve Account under Section [ 63J-1-312 ] 63J-1-319 , or earmarks and transfers
1103 to more than one of those accounts, in that order, does not eliminate the operating deficit, the
1104 Division of Finance may reduce the transfer to the Medicaid Growth Reduction and Budget
1105 Stabilization Account by the amount necessary to eliminate the operating deficit.
1106 (7) The Legislature may appropriate money from the Medicaid Growth Reduction and
1107 Budget Stabilization Account only:
1108 (a) if Medicaid program expenditures for the fiscal year for which the appropriation is
1109 made are estimated to be 108% or more of Medicaid program expenditures for the previous
1110 year; and
1111 (b) for the Medicaid program.
1112 (8) The Division of Finance shall deposit interest or other earnings derived from

1113 investment of Medicaid Growth Reduction and Budget Stabilization Account money into the
1114 General Fund.
1115 Section 12. Section 63J-1-319 , which is renumbered from Section 63J-1-312 is
1116 renumbered and amended to read:
1117 [63J-1-312]. 63J-1-319. Establishing a General Fund Budget Reserve
1118 Account -- Providing for deposits and expenditures from the account -- Providing for
1119 interest generated by the account.
1120 [(1) As used in this section:]
1121 [(a) "Education Fund budget deficit" means a situation where appropriations made by
1122 the Legislature from the Education Fund for a fiscal year exceed the estimated revenues
1123 adopted by the Executive Appropriations Committee of the Legislature for the Education Fund
1124 in that fiscal year.]
1125 [(b) "General Fund appropriations" means the sum of the spending authority for a fiscal
1126 year that is:]
1127 [(i) granted by the Legislature in all appropriation acts and bills; and]
1128 [(ii) identified as coming from the General Fund.]
1129 [(c) "General Fund budget deficit" means a situation where General Fund
1130 appropriations made by the Legislature for a fiscal year exceed the estimated revenues adopted
1131 by the Executive Appropriations Committee of the Legislature for the General Fund in that
1132 fiscal year.]
1133 [(d) "General Fund revenue surplus" means a situation where actual General Fund
1134 revenues collected in a completed fiscal year exceed the estimated revenues for the General
1135 Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
1136 Legislature.]
1137 [(e) "Operating]
1138 (1) As used in this section, "operating deficit" means that, at the end of the fiscal year,
1139 the unassigned fund balance in the General Fund is less than zero.
1140 (2) There is created within the General Fund a restricted account to be known as the
1141 General Fund Budget Reserve Account, which is designated to receive the legislative
1142 appropriations and the surplus revenue required to be deposited into the account by this section.
1143 (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in

1144 which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in
1145 conjunction with the completion of the annual audit by the state auditor, determines that there
1146 is a General Fund revenue surplus, the Division of Finance shall transfer 25% of the General
1147 Fund revenue surplus to the General Fund Budget Reserve Account.
1148 (ii) If the transfer of 25% of the General Fund revenue surplus to the General Fund
1149 Budget Reserve Account would cause the balance in the account to exceed 6% of General Fund
1150 appropriations for the fiscal year in which the revenue surplus occurred, the Division of
1151 Finance shall transfer only those funds necessary to ensure that the balance in the account
1152 equals 6% of General Fund appropriations for the fiscal year in which the General Fund
1153 revenue surplus occurred.
1154 (iii) The Division of Finance shall calculate the amount to be transferred under this
1155 Subsection (3)(a):
1156 (A) after making the transfer of General Fund revenue surplus to the Medicaid Budget
1157 Stabilization Restricted Account, as provided in Section [ 63J-1-315 ] 63J-1-318 ;
1158 (B) before transferring from the General Fund revenue surplus any other year-end
1159 contingency appropriations, year-end set-asides, or other year-end transfers required by law;
1160 and
1161 (C) excluding any direct legislative appropriation made to the General Fund Budget
1162 Reserve Account for the fiscal year.
1163 (b) (i) Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if
1164 a General Fund revenue surplus exists and if, within the last 10 years, the Legislature has
1165 appropriated any money from the General Fund Budget Reserve Account that has not been
1166 replaced by appropriation or as provided in this Subsection (3)(b), the Division of Finance shall
1167 transfer up to 25% more of the General Fund revenue surplus to the General Fund Budget
1168 Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if
1169 any, and transfers from the General Fund revenue surplus under this Subsection (3)(b) have
1170 replaced the appropriations from the account.
1171 (ii) If the transfer under Subsection (3)(b)(i) would cause the balance in the account to
1172 exceed 6% of General Fund appropriations for the fiscal year in which the revenue surplus
1173 occurred, the Division of Finance shall transfer only those funds necessary to ensure that the
1174 balance in the account equals 6% of General Fund appropriations for the fiscal year in which

1175 the revenue surplus occurred.
1176 (iii) The Division of Finance shall calculate the amount to be transferred under this
1177 Subsection (3)(b):
1178 (A) after making the transfer of General Fund revenue surplus to the Medicaid Budget
1179 Stabilization Restricted Account, as provided in Section [ 63J-1-315 ] 63J-1-318 ;
1180 (B) before transferring from the General Fund revenue surplus any other year-end
1181 contingency appropriations, year-end set-asides, or other year-end transfers required by law;
1182 and
1183 (C) excluding any direct legislative appropriation made to the General Fund Budget
1184 Reserve Account for the fiscal year.
1185 (c) For appropriations made by the Legislature to the General Fund Budget Reserve
1186 Account, the Division of Finance shall treat those appropriations, unless otherwise specified in
1187 the appropriation, as replacement funds for appropriations made from the account if funds were
1188 appropriated from the General Fund Budget Reserve Account within the past 10 years and have
1189 not yet been replaced.
1190 (4) The Legislature may appropriate money from the General Fund Budget Reserve
1191 Account only to:
1192 (a) resolve a General Fund budget deficit, for the fiscal year in which the General Fund
1193 budget deficit occurs;
1194 (b) pay some or all of state settlement agreements approved under Title 63G, Chapter
1195 10, State Settlement Agreements Act;
1196 (c) pay retroactive tax refunds; or
1197 (d) resolve an Education Fund budget deficit.
1198 (5) Interest generated from investments of money in the General Fund Budget Reserve
1199 Account shall be deposited into the General Fund.
1200 Section 13. Section 63J-1-320 is enacted to read:
1201 63J-1-320. Establishing a Federal Fund Replacement Budget Reserve Account --
1202 Providing for deposits and expenditures from the account -- Providing for interest
1203 generated by the account.
1204 (1) As used in this section:
1205 (a) (i) "Federal funds" means cash or other money received from the United States

1206 government, or from other individuals or entities for or on behalf of the United States
1207 government, and deposited with the state treasurer or any agency of the state.
1208 (ii) "Federal funds" includes federal assistance and federal assistance programs,
1209 however described.
1210 (iii) "Federal funds" does not include money received from the United States
1211 government to reimburse the state for money expended by the state.
1212 (b) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
1213 balance in the General Fund is less than zero.
1214 (2) There is created within the General Fund a restricted account to be known as the
1215 Federal Fund Replacement Budget Reserve Account, which is designated to receive the
1216 legislative appropriations and the surplus revenue required to be deposited into the account by
1217 this section.
1218 (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in
1219 which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in
1220 conjunction with the completion of the annual audit by the state auditor, determines that there
1221 is a General Fund revenue surplus, the Division of Finance shall transfer 25% of the General
1222 Fund revenue surplus to the Federal Fund Replacement Budget Reserve Account.
1223 (ii) If the transfer of 25% of the General Fund revenue surplus to the Federal Fund
1224 Replacement Budget Reserve Account would cause the balance in the account to exceed 10%
1225 of total federal funds received by the state for the fiscal year in which the revenue surplus
1226 occurred, the Division of Finance shall transfer only those funds necessary to ensure that the
1227 balance in the account equals 10% of total federal funds received by the state for the fiscal year
1228 in which the General Fund revenue surplus occurred.
1229 (iii) The Division of Finance shall calculate the amount to be transferred under this
1230 Subsection (3)(a):
1231 (A) after making the transfer of General Fund revenue surplus to the Medicaid Budget
1232 Stabilization Restricted Account, as provided in Section 63J-1-318 ;
1233 (B) after making the transfer of General Fund revenue surplus to the General Fund
1234 Budget Reserve Account, as provided in Section 63J-1-319 ;
1235 (C) before transferring revenue from the General Fund revenue surplus to the State
1236 Disaster Recovery Restricted Account under Section 63J-1-321 ;

1237 (D) before earmarking revenue from the General Fund revenue surplus to the Industrial
1238 Assistance Account under Section 63M-1-905 ;
1239 (E) before transferring from the General Fund revenue surplus any other year-end
1240 contingency appropriations, year-end set-asides, or other year-end transfers required by law;
1241 and
1242 (F) excluding any direct legislative appropriation made to the Federal Fund
1243 Replacement Budget Reserve Account for the fiscal year.
1244 (b) (i) Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if
1245 a General Fund revenue surplus exists and if, within the last 10 years, the Legislature has
1246 appropriated any money from the Federal Fund Replacement Budget Reserve Account that has
1247 not been replaced by appropriation or as provided in this Subsection (3)(b), the Division of
1248 Finance shall transfer up to 25% more of the General Fund revenue surplus to the Federal Fund
1249 Replacement Budget Reserve Account to replace the amounts appropriated, until direct
1250 legislative appropriations, if any, and transfers from the General Fund revenue surplus under
1251 this Subsection (3)(b) have replaced the appropriations from the account.
1252 (ii) If the transfer under Subsection (3)(b)(i) would cause the balance in the account to
1253 exceed 10% of total federal funds received by the state for the fiscal year in which the revenue
1254 surplus occurred, the Division of Finance shall transfer only those funds necessary to ensure
1255 that the balance in the account equals 10% of total federal funds received by the state for the
1256 fiscal year in which the revenue surplus occurred.
1257 (iii) The Division of Finance shall calculate the amount to be transferred under this
1258 Subsection (3)(b):
1259 (A) after making the transfer of General Fund revenue surplus to the Medicaid Budget
1260 Stabilization Restricted Account, as provided in Section 63J-1-318 ;
1261 (B) after making the transfer of General Fund revenue surplus to the General Fund
1262 Budget Reserve Account, as provided in Section 63J-1-319 ;
1263 (C) before transferring revenue from the General Fund revenue surplus to the State
1264 Disaster Recovery Restricted Account under Section 63J-1-321 ;
1265 (D) before earmarking revenue from the General Fund revenue surplus to the Industrial
1266 Assistance Account under Section 63M-1-905 ;
1267 (E) before transferring from the General Fund revenue surplus any other year-end

1268 contingency appropriations, year-end set-asides, or other year-end transfers required by law;
1269 and
1270 (F) excluding any direct legislative appropriation made to the Federal Fund
1271 Replacement Budget Reserve Account for the fiscal year.
1272 (c) For appropriations made by the Legislature to the Federal Fund Replacement
1273 Budget Reserve Account, the Division of Finance shall treat those appropriations, unless
1274 otherwise specified in the appropriation, as replacement funds for appropriations made from
1275 the account if funds were appropriated from the Federal Fund Replacement Budget Reserve
1276 Account within the past 10 years and have not yet been replaced.
1277 (4) The Legislature may appropriate money from the Federal Fund Replacement
1278 Budget Reserve Account only to replace federal funds that the state has been receiving but is
1279 no longer receiving.
1280 (5) Interest generated from investments of money in the Federal Fund Replacement
1281 Budget Reserve Account shall be deposited into the General Fund.
1282 (6) (a) The Office of Legislative Fiscal shall notify the Executive Appropriations
1283 Committee if :
1284 (i) the federal government takes action that appears to reduce available federal funds to
1285 Utah state agencies by 5% or more;
1286 (ii) federal interest payments on national debt exceed 8% of gross domestic product; or
1287 (iii) gross national debt exceeds 100% of national gross domestic product.
1288 (b) If the Executive Appropriations Committee receives notice under Subsection (6)(a),
1289 the committee shall determine whether to sponsor legislation to make adjustments to the
1290 provisions of Section 63J-1-320 in order to respond to an event described in Subsection (6)(a).
1291 Section 14. Section 63J-1-321 , which is renumbered from Section 63J-1-314 is
1292 renumbered and amended to read:
1293 [63J-1-314]. 63J-1-321. Deposits related to the Disaster Recovery
1294 Funding Act.
1295 (1) As used in this section, "operating deficit" means that, at the end of the fiscal year,
1296 the unassigned fund balance in the General Fund is less than zero.
1297 (2) Except as provided under Subsection (3), at the end of each fiscal year, the Division
1298 of Finance shall, after the transfer of General Fund revenue surplus has been made to the

1299 Medicaid Budget Stabilization Restricted Account, as provided in Section [ 63J-1-315 , and]
1300 63J-1-318 , the General Fund Budget Reserve Account, as provided in Section [ 63J-1-312 ,]
1301 63J-1-319 , and the Federal Fund Replacement Budget Reserve Account, as provided in Section
1302 63J-1-320 , transfer an amount into the State Disaster Recovery Restricted Account, created in
1303 Section 53-2-403 , from the General Fund revenue surplus as defined in Section [ 63J-1-312 ]
1304 63J-1-317 , calculated by:
1305 (a) determining the amount of General Fund revenue surplus after the transfer to the
1306 Medicaid Budget Stabilization Restricted Account under Section [ 63J-1-315 and] 63J-1-318 ,
1307 the General Fund Budget Reserve Account under Section [ 63J-1-312 ] 63J-1-319 , and the
1308 Federal Fund Replacement Budget Reserve Account under Section 63J-1-320 ;
1309 (b) calculating an amount equal to the lesser of:
1310 (i) 25% of the amount determined under Subsection (2)(a); or
1311 (ii) 6% of the total of the General Fund appropriation amount for the fiscal year in
1312 which the surplus occurs; and
1313 (c) adding to the amount calculated under Subsection (2)(b) an amount equal to the
1314 lesser of:
1315 (i) 25% more of the amount described in Subsection (2)(a); or
1316 (ii) the amount necessary to replace, in accordance with this Subsection (2)(c), any
1317 amount appropriated from the State Disaster Recovery Restricted Account within 10 fiscal
1318 years before the fiscal year in which the surplus occurs if:
1319 (A) a surplus exists; and
1320 (B) the Legislature appropriates money from the State Disaster Recovery Restricted
1321 Account that is not replaced by appropriation or as provided in this Subsection (2)(c).
1322 (3) Notwithstanding Subsection (2), if, at the end of a fiscal year, the Division of
1323 Finance determines that an operating deficit exists, the division shall reduce the transfer to the
1324 State Disaster Recovery Restricted Account by the amount necessary to eliminate the operating
1325 deficit.
1326 Section 15. Section 63J-1-322 , which is renumbered from Section 63J-1-313 is
1327 renumbered and amended to read:
1328 [63J-1-313]. 63J-1-322. Establishing an Education Budget Reserve
1329 Account -- Providing for deposits and expenditures from the account -- Providing for

1330 interest generated by the account.
1331 (1) As used in this section:
1332 (a) "Education Fund appropriations" means the sum of the spending authority for a
1333 fiscal year that is:
1334 (i) granted by the Legislature in all appropriation acts and bills; and
1335 (ii) identified as coming from the Education Fund.
1336 [(b) "Education Fund budget deficit" means a situation where appropriations made by
1337 the Legislature from the Education Fund for a fiscal year exceed the estimated revenues
1338 adopted by the Executive Appropriations Committee of the Legislature for the Education Fund
1339 in that fiscal year.]
1340 [(c)] (b) "Education Fund revenue surplus" means a situation where actual Education
1341 Fund revenues collected in a completed fiscal year exceed the estimated revenues for the
1342 Education Fund in that fiscal year that were adopted by the Executive Appropriations
1343 Committee of the Legislature.
1344 [(d)] (c) "Operating deficit" means that, at the end of the fiscal year, the unassigned
1345 fund balance in the Education Fund is less than zero.
1346 (2) There is created within the Education Fund a restricted account to be known as the
1347 Education Fund Budget Reserve Account, which is designated to receive the legislative
1348 appropriations and the surplus revenue required to be deposited into the account by this section.
1349 (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in
1350 which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in
1351 conjunction with the completion of the annual audit by the state auditor, determines that there
1352 is an Education Fund revenue surplus, the Division of Finance shall transfer 25% of the
1353 Education Fund revenue surplus to the Education Fund Budget Reserve Account.
1354 (ii) If the transfer of 25% of the Education Fund revenue surplus to the Education Fund
1355 Budget Reserve Account under Subsection (3)(a)(i) would cause the balance in the account to
1356 exceed 7% of Education Fund appropriations for the fiscal year in which the Education Fund
1357 revenue surplus occurred, the Division of Finance shall transfer only those funds necessary to
1358 ensure that the balance in the account equals 7% of the Education Fund appropriations for the
1359 fiscal year in which the Education Fund revenue surplus occurred.
1360 (iii) The Division of Finance shall calculate the amount to be transferred under this

1361 Subsection (3)(a):
1362 (A) before transferring from the Education Fund revenue surplus any other year-end
1363 contingency appropriations, year-end set-asides, or other year-end transfers required by law;
1364 and
1365 (B) excluding any direct legislative appropriation made to the Education Fund Budget
1366 Reserve Account for the fiscal year.
1367 (b) (i) Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if
1368 an Education Fund revenue surplus exists and if, within the last 10 years, the Legislature has
1369 appropriated any money from the Education Fund Budget Reserve Account that has not been
1370 replaced by appropriation or as provided in this Subsection (3)(b), the Division of Finance shall
1371 transfer up to 25% more of the Education Fund revenue surplus to the Education Fund Budget
1372 Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if
1373 any, and transfers from the Education Fund revenue surplus under this Subsection (3)(b) have
1374 replaced the appropriations from the account.
1375 (ii) If the transfer under Subsection (3)(b)(i) would cause the balance in the account to
1376 exceed 7% of Education Fund appropriations for the fiscal year in which the Education Fund
1377 revenue surplus occurred, the Division of Finance shall transfer only those funds necessary to
1378 ensure that the balance in the account equals 7% of Education Fund appropriations for the
1379 fiscal year in which the revenue surplus occurred.
1380 (iii) The Division of Finance shall calculate the amount to be transferred under this
1381 Subsection (3)(b):
1382 (A) before transferring from the Education Fund revenue surplus any other year-end
1383 contingency appropriations, year-end set-asides, or other year-end transfers required by law;
1384 and
1385 (B) excluding any direct legislative appropriation made to the Education Fund Budget
1386 Reserve Account for the fiscal year.
1387 (c) For appropriations made by the Legislature to the Education Fund Budget Reserve
1388 Account, the Division of Finance shall treat those appropriations, unless specified otherwise in
1389 the appropriation, as replacement funds for appropriations made from the account if funds were
1390 appropriated from the account within the past 10 years and have not yet been replaced.
1391 (4) Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of

1392 Finance determines that an operating deficit exists, the Division of Finance may reduce the
1393 transfer to the Education Fund Budget Reserve Account by the amount necessary to eliminate
1394 the operating deficit.
1395 (5) The Legislature may appropriate money from the Education Fund Budget Reserve
1396 Account only to resolve an Education Fund budget deficit.
1397 (6) Interest generated from investments of money in the Education Fund Budget
1398 Reserve Account shall be deposited into the Education Fund.
1399 Section 16. Section 63J-3-103 is amended to read:
1400 63J-3-103. Definitions.
1401 As used in this chapter:
1402 (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
1403 from unrestricted General Fund and Education Fund sources.
1404 (b) "Appropriations" includes appropriations that are contingent upon available
1405 surpluses in the General Fund and Education Fund.
1406 (c) "Appropriations" does not mean:
1407 (i) public education expenditures;
1408 (ii) Utah Education Network expenditures in support of public education;
1409 (iii) Utah College of Applied Technology expenditures in support of public education;
1410 (iv) Tax Commission expenditures related to collection of income taxes in support of
1411 public education;
1412 (v) debt service expenditures;
1413 (vi) emergency expenditures;
1414 (vii) expenditures from all other fund or subfund sources;
1415 (viii) transfers or appropriations from the Education Fund to the Uniform School Fund;
1416 (ix) transfers into, or appropriations made to, the General Fund Budget Reserve
1417 Account established in Section [ 63J-1-312 ] 63J-1-319 ;
1418 (x) transfers into, or appropriations made to, the Federal Fund Replacement Budget
1419 Reserve Account established in Section 63J-1-320 ;
1420 [(x)] (xi) transfers into, or appropriations made to, the Education Budget Reserve
1421 Account established in Section [ 63J-1-313 ] 63J-1-322 ;
1422 [(xi)] (xii) transfers in accordance with Section [ 63J-1-314 ] 63J-1-321 into, or

1423 appropriations made to the State Disaster Recovery Restricted Account created in Section
1424 53-2-403 ;
1425 [(xii)] (xiii) money appropriated to fund the total one-time project costs for the
1426 construction of capital developments as defined in Section 63A-5-104 ;
1427 [(xiii)] (xiv) transfers or deposits into or appropriations made to the Centennial
1428 Highway Fund Restricted Account created by Section 72-2-118 ;
1429 [(xiv)] (xv) transfers or deposits into or appropriations made to the Transportation
1430 Investment Fund of 2005 created by Section 72-2-124 ;
1431 [(xv)] (xvi) transfers or deposits into or appropriations made to:
1432 (A) the Department of Transportation from any source; or
1433 (B) any transportation-related account or fund from any source; or
1434 [(xvi)] (xvii) supplemental appropriations from the General Fund to the Division of
1435 Forestry, Fire, and State Lands to provide money for wildland fire control expenses incurred
1436 during the current or previous fire years.
1437 (2) "Base year real per capita appropriations" means the result obtained for the state by
1438 dividing the fiscal year 1985 actual appropriations of the state less debt money by:
1439 (a) the state's July 1, 1983 population; and
1440 (b) the fiscal year 1983 inflation index divided by 100.
1441 (3) "Calendar year" means the time period beginning on January 1 of any given year
1442 and ending on December 31 of the same year.
1443 (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
1444 expenditures and includes the settlement under Laws of Utah 1988, Fourth Special Session,
1445 Chapter 4.
1446 (5) "Fiscal year" means the time period beginning on July 1 of any given year and
1447 ending on June 30 of the subsequent year.
1448 (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
1449 capital and operations appropriations from General Fund and non-Uniform School Fund
1450 income tax revenue sources, less debt money.
1451 (7) "Inflation index" means the change in the general price level of goods and services
1452 as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
1453 Analysis, U.S. Department of Commerce calculated as provided in Section 63J-3-202 .

1454 (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
1455 be, or could have been, spent in any given year under the limitations of this chapter.
1456 (b) "Maximum allowable appropriations limit" does not mean actual appropriations
1457 spent or actual expenditures.
1458 (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
1459 fiscal years previous to the fiscal year for which the maximum allowable inflation and
1460 population appropriations limit is being computed under this chapter.
1461 (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
1462 years previous to the fiscal year for which the maximum allowable inflation and population
1463 appropriations limit is being computed under this chapter.
1464 (11) "Population" means the number of residents of the state as of July 1 of each year
1465 as calculated by the Governor's Office of Planning and Budget according to the procedures and
1466 requirements of Section 63J-3-202 .
1467 (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
1468 other monetary exaction and interest connected with it that are recorded as unrestricted revenue
1469 of the General Fund and from non-Uniform School Fund income tax revenues, except as
1470 specifically exempted by this chapter.
1471 (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
1472 whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
1473 "indebtedness" within the meaning of any provision of the constitution or laws of this state.
1474 Section 17. Section 63M-1-905 is amended to read:
1475 63M-1-905. Loans, grants, and assistance -- Repayment -- Earned credits.
1476 (1) (a) A company that qualifies under Section 63M-1-906 may receive loans, grants,
1477 or other financial assistance from the Industrial Assistance Account for expenses related to
1478 establishment, relocation, or development of industry in Utah.
1479 (b) A company creating an economic impediment that qualifies under Section
1480 63M-1-908 may in accordance with this part receive loans, grants, or other financial assistance
1481 from the restricted account for the expenses of the company creating an economic impediment
1482 related to:
1483 (i) relocation to a rural area in Utah of the company creating an economic impediment;
1484 and

1485 (ii) the siting of a replacement company.
1486 (c) An entity offering an economic opportunity that qualifies under Section 63M-1-909
1487 may:
1488 (i) receive loans, grants, or other financial assistance from the restricted account for
1489 expenses related to the establishment, relocation, retention, or development of industry in the
1490 state; and
1491 (ii) include infrastructure or other economic development precursor activities that act
1492 as a catalyst and stimulus for economic activity likely to lead to the maintenance or
1493 enlargement of the state's tax base.
1494 (2) (a) Subject to Subsection (2)(b), the administrator has authority to determine the
1495 structure, amount, and nature of any loan, grant, or other financial assistance from the restricted
1496 account.
1497 (b) Loans made under Subsection (2)(a) shall be structured so the intended repayment
1498 or return to the state, including cash or credit, equals at least the amount of the assistance
1499 together with an annual interest charge as negotiated by the administrator.
1500 (c) Payments resulting from grants awarded from the restricted account shall be made
1501 only after the administrator has determined that the company has satisfied the conditions upon
1502 which the payment or earned credit was based.
1503 (3) (a) (i) Except as provided in Subsection (3)(b), the administrator may provide for a
1504 system of earned credits that may be used to support grant payments or in lieu of cash
1505 repayment of a restricted account loan obligation.
1506 (ii) The value of the credits described in Subsection (3)(a)(i) shall be based on factors
1507 determined by the administrator, including:
1508 (A) the number of Utah jobs created;
1509 (B) the increased economic activity in Utah; or
1510 (C) other events and activities that occur as a result of the restricted account assistance.
1511 (b) (i) The administrator shall provide for a system of credits to be used to support
1512 grant payments or in lieu of cash repayment of a restricted account loan when loans are made to
1513 a company creating an economic impediment.
1514 (ii) The value of the credits described in Subsection (3)(b)(i) shall be based on factors
1515 determined by the administrator, including:

1516 (A) the number of Utah jobs created;
1517 (B) the increased economic activity in Utah; or
1518 (C) other events and activities that occur as a result of the restricted account assistance.
1519 (4) (a) A cash loan repayment or other cash recovery from a company receiving
1520 assistance under this section, including interest, shall be deposited into the restricted account.
1521 (b) The administrator and the Division of Finance shall determine the manner of
1522 recognizing and accounting for the earned credits used in lieu of loan repayments or to support
1523 grant payments as provided in Subsection (3).
1524 (5) (a) (i) At the end of each fiscal year, the Division of Finance shall set aside the
1525 balance of the General Fund revenue surplus as defined in Section [ 63J-1-312 ] 63J-1-317 after
1526 the transfers of General Fund revenue surplus described in Subsection (5)(b) to the Industrial
1527 Assistance Account in an amount equal to any credit that has accrued under this part.
1528 (ii) The set aside under Subsection (5)(a)(i) shall be capped at $50,000,000, at which
1529 time no subsequent contributions may be made and any interest accrued above the $50,000,000
1530 cap shall be deposited into the General Fund.
1531 (b) The set aside required by Subsection (5)(a) shall be made after the transfer of
1532 surplus General Fund revenue surplus is made:
1533 (i) to the Medicaid Growth Reduction and Budget Stabilization Restricted Account, as
1534 provided in Section [ 63J-1-315 ] 63J-1-318 ;
1535 (ii) to the General Fund Budget Reserve Account, as provided in Section [ 63J-1-312 ]
1536 63J-1-319 ; [and]
1537 (iii) to the Federal Fund Replacement Budget Reserve Account, as provided in Section
1538 63J-1-320 ; and
1539 [(iii)] (iv) to the State Disaster Recovery Restricted Account, as provided in Section
1540 [ 63J-1-314 ] 63J-1-321 .
1541 (c) These credit amounts may not be used for purposes of the restricted account as
1542 provided in this part until appropriated by the Legislature.
1543 Section 18. Effective date.
1544 This bill takes effect on July 1, 2012.

Legislative Review Note
as of 1-31-12 4:21 PM

Office of Legislative Research and General Counsel