First Substitute S.B. 124

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Feb 3, 2012 at 4:01 PM by khelgesen. -->

Senator Curtis S. Bramble proposes the following substitute bill:

1 COUNTY AMENDMENTS
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Curtis S. Bramble
5 House Sponsor: Gregory H. Hughes
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions related to county funds.
10 Highlighted Provisions:
11 This bill:
12 . repeals Title 17, Chapter 19, County Auditor, and replaces it with Title 17, Chapter
13 19a, County Auditor, including:
14 . enacts general provisions;
15 . enacts provisions related to a county auditor's qualifications, powers, and duties;
16 . enacts provisions related to payments and warrants; and
17 . enacts provisions related to an investigation conducted by a county auditor;
18 . amends provisions related to the preparation of a tentative county budget;
19 . amends provisions related to the adoption of a county budget;
20 . amends provisions related to a purchase or encumbrance by a purchasing agent;
21 . amends provisions related to the county adoption of a financial administration
22 ordinance;
23 . enacts provisions related to a county auditor's review, investigation, and payment of
24 a claim against a county;
25 . amends provisions related to a county legislative body's authority to examine and

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- 2 - 26 audit certain accounts;
27 . amends provisions related to a county executive's authority to examine and audit
28 certain accounts; and
29 . makes technical corrections.
30 Money Appropriated in this Bill:
31 None
32 Other Special Clauses:
33 This bill provides an immediate effective date.
34 This bill provides revisor instructions.
35 Utah Code Sections Affected:
36 AMENDS:
37 17-8-7, as last amended by Laws of Utah 2011, Chapter 297
38 17-24-1, as last amended by Laws of Utah 2005, Chapter 105
39 17-24-4, as last amended by Laws of Utah 2001, Chapter 241
40 17-36-3, as last amended by Laws of Utah 2001, Chapter 241
41 17-36-10, as last amended by Laws of Utah 2011, Chapter 297
42 17-36-11, as last amended by Laws of Utah 1979, Chapter 62
43 17-36-15, as last amended by Laws of Utah 1999, Chapters 230 and 300
44 17-36-20, as enacted by Laws of Utah 1975, Chapter 22
45 17-36-43, as last amended by Laws of Utah 1993, Chapter 227
46 17-50-401, as last amended by Laws of Utah 2008, Chapter 382
47 17-52-401, as last amended by Laws of Utah 2011, Chapter 297
48 17-53-212, as renumbered and amended by Laws of Utah 2000, Chapter 133
49 17-53-303, as enacted by Laws of Utah 2000, Chapter 133
50 20A-7-101, as last amended by Laws of Utah 2011, Chapters 17 and 331
51 ENACTS:
52 17-19a-101, Utah Code Annotated 1953
53 17-19a-102, Utah Code Annotated 1953
54 17-19a-201, Utah Code Annotated 1953
55 17-19a-202, Utah Code Annotated 1953
56 17-19a-203, Utah Code Annotated 1953

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- 3 - 57 17-19a-204, Utah Code Annotated 1953
58 17-19a-205, Utah Code Annotated 1953
59 17-19a-206, Utah Code Annotated 1953
60 17-19a-207, Utah Code Annotated 1953
61 17-19a-208, Utah Code Annotated 1953
62 17-19a-209, Utah Code Annotated 1953
63 17-19a-301, Utah Code Annotated 1953
64 17-19a-401, Utah Code Annotated 1953
65 REPEALS:
66 17-19-1, as last amended by Laws of Utah 1996, Chapter 212
67 17-19-3, as last amended by Laws of Utah 2001, Chapter 241
68 17-19-5, as last amended by Laws of Utah 1996, Chapter 212
69 17-19-6, Utah Code Annotated 1953
70 17-19-7, as last amended by Laws of Utah 2011, Chapter 297
71 17-19-8, Utah Code Annotated 1953
72 17-19-9, Utah Code Annotated 1953
73 17-19-12, as last amended by Laws of Utah 1996, Chapter 212
74 17-19-13, as last amended by Laws of Utah 1993, Chapter 227
75 17-19-14, as last amended by Laws of Utah 2011, Chapter 297
76 17-19-19, as last amended by Laws of Utah 2001, Chapter 241
77 17-19-28, Utah Code Annotated 1953
78 17-19-29, as enacted by Laws of Utah 1996, Chapter 212
79
80 Be it enacted by the Legislature of the state of Utah:
81 Section 1. Section 17-8-7 is amended to read:
82 17-8-7. Declaration of drought emergency -- Appropriation -- Tax levy.
83 The county legislative body of each county may at any regular meeting or at a special
84 meeting called for such purpose, declare that an emergency drought exists in said county; and
85 thereupon may appropriate from the money not otherwise appropriated in the county general
86 fund such funds as shall be necessary for the gathering of information upon, and aiding in any
87 program for increased precipitation within said county or in conjunction with any other county

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- 4 - 88 or counties, or that if there are not sufficient funds available in the county general fund for such
89 purpose, the county legislative body may, during any such emergency so declared by them,
90 assess, levy, and direct the county to collect annually to aid in any program of increased
91 precipitation. The provisions of [Sections 17-19-1 to 17-19-28 ] Chapter 19a, County Auditor
92 relating to budgeting do not apply to appropriations necessitated by such an emergency.
93 Section 2. Section 17-19a-101 is enacted to read:
94 CHAPTER 19a. COUNTY AUDITOR
95 Part 1. General Provisions
96 17-19a-101. Title.
97 This chapter is known as "County Auditor."
98 Section 3. Section 17-19a-102 is enacted to read:
99 17-19a-102. Definitions.
100 (1) "Account" or "accounting" means:
101 (a) the systematic recording, classification, or summarizing of a financial transaction or
102 event; and
103 (b) the interpretation or presentation of the result of an action described in Subsection
104 (1)(a).
105 (2) "Audit" or "auditing" means an examination that is a formal analysis of a county
106 account or county financial record:
107 (a) to verify accuracy, completeness, or compliance with an internal control;
108 (b) to give a fair presentation of a county's financial status; and
109 (c) that conforms to the uniform classification of accounts established by the state
110 auditor.
111 (3) "Book" means a financial record of the county, regardless of a record's format.
112 (4) (a) "Budget" or "budgeting" means a process or activity conducted by the budget
113 officer related to the preparation or presentation of a proposed or tentative budget as provided
114 in Chapter 36, Uniform Fiscal Procedures Act for Counties.
115 (b) "Budget" or "budgeting" includes:
116 (i) a revenue projection;
117 (ii) a budget request compilation; or
118 (iii) the performance of an activity described in Subsection (4)(b)(i) or (ii).

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- 5 - 119 (5) "Budget officer" means a person described in Section 17-19a-204 .
120 (6) (a) "Claim" means under the color of law:
121 (i) a demand presented for money or damages; or
122 (ii) a cause of action presented for money or damages.
123 (b) "Claim" does not mean a routine, uncontested, or regular payment, including a bill,
124 purchase, or payroll.
125 (7) "Performance audit" means a review and audit as described in Subsection
126 17-19a-207 (3) of a county program, county operation, county management system, or county
127 agency to:
128 (a) review procedures, activities, or policies; and
129 (b) determine whether the county is achieving the best levels of economy, efficiency,
130 effectiveness, and compliance.
131 Section 4. Section 17-19a-201 is enacted to read:
132 Part 2. Qualifications, Powers, and Duties
133 17-19a-201. Qualifications for office.
134 In addition to the requirements listed in Section 17-16-1 , a person filing a declaration
135 for candidacy on or after the effective date of this bill for the office of county auditor in a first
136 class county shall be a certified public accountant licensed in Utah.
137 Section 5. Section 17-19a-202 is enacted to read:
138 17-19a-202. Seal.
139 (1) The county legislative body shall furnish the auditor a seal in accordance with
140 Subsection (2).
141 (2) The seal shall contain or be impressed with:
142 (a) the name of the county; and
143 (b) "State of Utah, County Auditor."
144 Section 6. Section 17-19a-203 is enacted to read:
145 17-19a-203. General duties.
146 A county auditor shall perform:
147 (1) in accordance with Section 17-19a-206 , an accounting duty or service described in
148 this chapter or otherwise required by law;
149 (2) an auditing duty or service described in this chapter or otherwise required by law;

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- 6 - 150 and
151 (3) other duties as may be required by law.
152 Section 7. Section 17-19a-204 is enacted to read:
153 17-19a-204. Budget officer.
154 The budget officer of a county is designated by:
155 (1) in a county commission form of government described in Section 17-52-501 or an
156 expanded county commission form of government described in Section 17-52-502 , the county
157 commission;
158 (2) in the county executive-council form of government described in Section
159 17-52-504 , the county executive; or
160 (3) in the council-manager form of government described in Section 17-52-505 , the
161 county council.
162 Section 8. Section 17-19a-205 is enacted to read:
163 17-19a-205. Auditing services.
164 (1) (a) Except as provided in Subsection (1)(b) and subject to Subsection (2), a county
165 auditor is authorized to audit the financial records and accounts of a:
166 (i) county office;
167 (ii) county department;
168 (iii) county division;
169 (iv) county justice court; or
170 (v) any other county entity.
171 (b) The county auditor may not audit the auditor's own office, including any of the
172 county auditor's financial records or accounts.
173 (2) The county auditor shall perform an audit:
174 (a) as needed, as defined by good management practices and the standards of the
175 profession; and
176 (b) based on the auditor's professional judgement, taking into account considerations
177 related to risk and materiality.
178 (3) Nothing in this section may be construed to affect a county legislative body's
179 authority under Section 17-53-212 or a county executive's authority under Section 17-53-303 .
180 Section 9. Section 17-19a-206 is enacted to read:

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- 7 - 181 17-19a-206. Accounting services.
182 (1) Except as provided in Subsection (2), the county auditor shall provide accounting
183 services for the county as established by ordinance.
184 (2) The county legislative body may, by ordinance, delegate an accounting service
185 provided for or executed on behalf of the entire county:
186 (a) to the county executive; or
187 (b) to an office's or department's officer or director.
188 (3) If a county legislative body delegates an accounting service in accordance with
189 Subsection (2), the legislative body shall make the delegation:
190 (a) in accordance with good management practice to foster effectiveness, efficiency,
191 and the adequate protection of a county asset; and
192 (b) by considering appropriate checks and balances within county government.
193 Section 10. Section 17-19a-207 is enacted to read:
194 17-19a-207. Performance audit services.
195 (1) (a) A county auditor shall, under the direction and supervision of the county
196 legislative body or county executive and subject to Subsections (1)(b) and (2), provide
197 performance audit services for a county office, department, division, or other county entity.
198 (b) A county auditor may not conduct a performance audit of the auditor's own office.
199 (2) The county legislative body or county executive shall establish the goals, nature,
200 and limitations of a performance audit and related services.
201 (3) A performance audit conducted in accordance with this section shall include a
202 review and audit of the following:
203 (a) the honesty and integrity of financial and other affairs;
204 (b) the accuracy and reliability of financial and management reports;
205 (c) the adequacy of financial controls to safeguard public funds;
206 (d) the management and staff adherence to statute, ordinance, policies, and legislative
207 intent;
208 (e) the economy, efficiency, and effectiveness of operational performance;
209 (f) the accomplishment of intended objectives; and
210 (g) whether management, financial, and information systems are adequate and
211 effective.

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- 8 - 212 Section 11. Section 17-19a-208 is enacted to read:
213 17-19a-208. Management of financial records -- Disposal of records.
214 (1) A county auditor shall:
215 (a) maintain the books of the county in such a manner as will show the amount of
216 receipts from and disbursement of a county office, department, division, or other county entity;
217 (b) keep accounts current with the county treasurer;
218 (c) preserve a document, book, record, or paper that the county legislative body
219 requires the auditor to keep in the auditor's office; and
220 (d) make an item described in Subsection (1)(c) available for public inspection during
221 office hours.
222 (2) The county auditor shall, in accordance with Title 63G, Chapter 2, Government
223 Records Access and Management Act, remove from the auditor's files and destroy or otherwise
224 dispose of:
225 (a) fee statements of a county officer;
226 (b) county warrants; and
227 (c) claims against the county.
228 Section 12. Section 17-19a-209 is enacted to read:
229 17-19a-209. Reporting -- State treasurer -- County legislative body.
230 (1) On or before the last day of each month, the county auditor shall submit a report to
231 the state treasurer regarding the collection, care, and disbursement of state money by the county
232 during the preceding month.
233 (2) The county auditor and the county treasurer shall, as required by the county
234 legislative body, make a joint report to the county executive and the county legislative body
235 accounting for the financial condition of the county.
236 Section 13. Section 17-19a-301 is enacted to read:
237 Part 3. Payments and Warrants
238 17-19a-301. Payments and warrants.
239 (1) (a) Subject to Subsection (1)(b), if a debt or demand against a county is fixed by
240 law, the debt or demand shall be paid by:
241 (i) subject to Subsection (2)(a), a warrant drawn by the county auditor or the county
242 treasurer; or

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- 9 - 243 (ii) subject to Subsection (2)(b), a check or other payment mechanism as may be
244 adopted in accordance with Chapter 36, Uniform Fiscal Procedures Act for Counties.
245 (b) Subsection (1)(a) does not apply to a debt or demand against the county that is, in
246 accordance with law, audited by another person or tribunal.
247 (2) (a) The county auditor shall:
248 (i) distinctly specify on a warrant the liability for which the warrant is made and when
249 the liability accrued; and
250 (ii) notify the county treasurer:
251 (A) as described in Subsection (3)(b), of the date, amount, payee of, and number
252 assigned to a warrant; and
253 (B) of the aggregate amount of all contemporaneous payments by warrant.
254 (b) The county auditor shall notify the county treasurer and county executive:
255 (i) as described in Subsection (3)(b), of the amount and payee of all payments made by
256 check or other payment mechanism;
257 (ii) as described in Subsection (3)(b), the date of and number assigned to a check or
258 other payment mechanism; and
259 (iii) the aggregate amount of a contemporaneous payment.
260 (3) (a) As used in this Subsection (3), "remuneration" means a warrant, check, or other
261 payment mechanism.
262 (b) For a remuneration issued by the county auditor, the auditor shall:
263 (i) number each remuneration consecutively, commencing annually on the first day of
264 January; and
265 (ii) state on the remuneration:
266 (A) the number of the remuneration;
267 (B) the date of payment;
268 (C) the amount of the payment made;
269 (D) the name of the person to whom payable; and
270 (E) the purpose for which the remuneration was made.
271 (4) The county auditor shall dispose of a payment not presented for collection in
272 accordance with Title 67, Chapter 4a, Unclaimed Property Act.
273 (5) The county legislative body may delegate by ordinance the processing of payments

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- 10 - 274 and warrants in accordance with Section 17-19a-206 .
275 Section 14. Section 17-19a-401 is enacted to read:
276 Part 4. Investigations
277 17-19a-401. County auditor investigative powers -- Report of findings.
278 (1) (a) A county auditor:
279 (i) may conduct an investigation of an issue or action associated with or related to the
280 auditor's statutory duties, including investigating a book or account of a county officer, county
281 office, or other county entity; and
282 (ii) may not conduct an investigation of an issue or action that is not associated with or
283 related to the auditor's statutory duties.
284 (b) A county officer, employee, or other county administrative entity shall grant the
285 county auditor complete and free access to a book requested by the county auditor in
286 accordance with Subsection (1)(a)(i).
287 (c) A county auditor, with the assistance of the county or district attorney, may:
288 (i) administer an oath or affirmation; or
289 (ii) issue an administrative subpoena for a witness or document necessary to the
290 performance of the auditor's statutory duties.
291 (2) If the county auditor, after a complete investigation, finds that a book or account of
292 a county officer, office, or other county administrative entity is not kept in accordance to law,
293 or that an officer, office, or other county administrative entity has made an incorrect or
294 improper financial report, the county auditor shall prepare a report of the auditor's findings and
295 submit a copy of the report to the county executive.
296 (3) If a county auditor, after a complete investigation, finds that a justice court judge
297 has not kept a book or account according to law, or that the justice court judge has made an
298 incorrect or improper financial report, the auditor shall prepare a report of the auditor's findings
299 and submit a copy of the report to the state court administrator, the county executive, and the
300 county legislative body.
301 Section 15. Section 17-24-1 is amended to read:
302 17-24-1. General duties of treasurer.
303 The county treasurer shall:
304 (1) receive all money belonging to the county and all other money by law directed to be

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- 11 - 305 paid to the treasurer, including proceeds of bonds, notes, or other evidences of indebtedness
306 issued under Title 11, Chapter 14, Local Government Bonding Act;
307 (2) deposit and invest all money received under Title 51, Chapter 7, State Money
308 Management Act;
309 (3) keep a record of the receipts and expenditures of all such money;
310 (4) disburse county money:
311 (a) on a county warrant issued by the county auditor; or
312 (b) subject to [Sections 17-19-1 , 17-19-3 , and 17-19-5 ] Section 17-19a-301 , by a
313 county check or such other payment mechanism as may be adopted pursuant to Chapter 36,
314 Uniform Fiscal Procedures Act for Counties;
315 (5) perform the duties assigned to the treasurer under Title 59, Chapter 2, Part 13,
316 Collection of Taxes;
317 (6) perform the duties under Title 59, Chapter 2, Part 13, Collection of Taxes, that have
318 been reassigned to the treasurer in an ordinance adopted under Section 17-16-5.5 ; and
319 (7) perform other duties that are required by law or ordinance.
320 Section 16. Section 17-24-4 is amended to read:
321 17-24-4. Payment of warrants, checks, or other instruments.
322 (1) When a warrant is presented for payment and there is money in the treasury, the
323 treasurer shall pay it.
324 (2) Upon receiving the notice from the county auditor under [Subsection
325 17-19-3 (3)(b)] Section 17-19a-301 and if there is adequate money in the treasury, the treasurer
326 shall, by check or other payment mechanism, make any payment not already paid by warrant.
327 (3) Notwithstanding Subsections (1) and (2), the treasurer has no obligation to pay any
328 warrant or to issue any check or other payment instrument before receiving the certified list
329 under Subsection 17-20-1.7 (4).
330 Section 17. Section 17-36-3 is amended to read:
331 17-36-3. Definitions.
332 As used in this chapter:
333 (1) "Accrual basis of accounting" means a method where revenues are recorded when
334 earned and expenditures recorded when they become liabilities notwithstanding that the receipt
335 of the revenue or payment of the expenditure may take place in another accounting period.

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- 12 - 336 (2) "Appropriation" means an allocation of money for a specific purpose.
337 (3) (a) "Budget" means a plan for financial operations for a fiscal period, embodying
338 estimates for proposed expenditures for given purposes and the means of financing the
339 expenditures.
340 (b) "Budget" may refer to the budget of a fund for which a budget is required by law, or
341 collectively to the budgets for all those funds.
342 (4) "Budgetary fund" means a fund for which a budget is required, such as those
343 described in Section 17-36-8 .
344 (5) "Budget officer" means [the county auditor, county clerk, or county executive as
345 provided in Subsection 17-19-19 (1)] a person described in Section 17-19a-204 .
346 (6) "Budget period" means the fiscal period for which a budget is prepared.
347 (7) "Check" means an order in a specific amount drawn upon the depositary by any
348 authorized officer in accordance with Section [ 17-19-3 ] 17-9a-301 or 17-24-1 .
349 (8) "Countywide service" means a service provided in both incorporated and
350 unincorporated areas of a county.
351 (9) "Current period" means the fiscal period in which a budget is prepared and adopted.
352 (10) "Department" means any functional unit within a fund which carries on a specific
353 activity.
354 (11) "Encumbrance system" means a method of budgetary control where part of an
355 appropriation is reserved to cover a specific expenditure by charging obligations, such as
356 purchase orders, contracts, or salary commitments to an appropriation account. An expenditure
357 ceases to be an encumbrance when paid or when the actual liability is entered in the books of
358 account.
359 (12) "Estimated revenue" means any revenue estimated to be received during the
360 budget period in any fund for which a budget is prepared.
361 (13) "Fiscal period" means the annual or biennial period for recording county fiscal
362 operations.
363 (14) "Fund" means an independent fiscal and accounting entity comprised of a sum of
364 money or other resources segregated for a specific purpose or objective.
365 (15) "Fund balance" means the excess of the assets over liabilities, reserves, and
366 contributions, as reflected by its books of account.

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- 13 - 367 (16) "Fund deficit" means the excess of liabilities, reserves, and contributions over its
368 assets, as reflected by its books of account.
369 (17) "General Fund" means the fund used to account for all receipts, disbursements,
370 assets, liabilities, reserves, fund balances, revenues, and expenditures not required to be
371 accounted for in other funds.
372 (18) "Interfund loan" means a loan of cash from one fund to another, subject to future
373 repayment; but it does not constitute an expenditure or a use of retained earnings, fund balance,
374 or unappropriated surplus of the lending fund.
375 (19) "Last completed fiscal period" means the fiscal period next preceding the current
376 period.
377 (20) "Modified accrual basis of accounting" means a method under which expenditures
378 other than accrued interest on general long-term debt are recorded at the time liabilities are
379 incurred and revenues are recorded when they become measurable and available to finance
380 expenditures of the current period.
381 (21) "Municipal capital project" means the acquisition, construction, or improvement
382 of capital assets that facilitate providing municipal service.
383 (22) "Municipal service" means a service not provided on a countywide basis and not
384 accounted for in an enterprise fund, and includes police patrol, fire protection, culinary or
385 irrigation water retail service, water conservation, local parks, sewers, sewage treatment and
386 disposal, cemeteries, garbage and refuse collection, street lighting, airports, planning and
387 zoning, local streets and roads, curb, gutter, and sidewalk maintenance, and ambulance service.
388 (23) "Retained earnings" means that part of the net earnings retained by an enterprise
389 or internal service fund which is not segregated or reserved for any specific purpose.
390 (24) "Special fund" means any fund other than the General Fund, such as those
391 described in Section 17-36-6 .
392 (25) "Unappropriated surplus" means that part of a fund which is not appropriated for
393 an ensuing budget period.
394 (26) "Warrant" means an order in a specific amount drawn upon the treasurer by the
395 auditor.
396 Section 18. Section 17-36-10 is amended to read:
397 17-36-10. Preparation of tentative budget.

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- 14 - 398 (1) On or before the first day of the next to last month of every fiscal period, the budget
399 officer shall prepare for the next budget period and file with the governing body a tentative
400 budget for each fund for which a budget is required.
401 (2) (a) A department for which county funds are appropriated shall file with the budget
402 officer not less than three months before the commencement of each fiscal year on forms
403 furnished by the budget officer a detailed estimate and statement of the revenue and necessary
404 expenditures of the department for the next budget year.
405 (b) The estimate and statement described in Subsection (2)(a) shall set forth:
406 (i) the number of persons to be regularly employed;
407 (ii) the kinds of service the department will perform;
408 (iii) the salaries and wages the department expects to pay;
409 (iv) the kind of work the department will perform and the improvements the
410 department expects to make; and
411 (v) the estimated cost of the service, work, and improvements.
412 (c) The statement shall also record performance data expressed in work units, unit
413 costs, man hours, and man years sufficient in detail, content, and scope to permit the budget
414 officer to prepare and process the county budget.
415 (3) In the preparation of the budget, the budget officer and all other county officers are
416 subject to Sections 17-36-1 through 17-36-44 and to the uniform system of budgeting,
417 accounting, and reporting established therein.
418 [(2) The] (4) In the tentative budget the budget officer shall set forth in tabular form:
419 (a) actual revenues and expenditures in the last completed fiscal period;
420 (b) estimated total revenues and expenditures for the current fiscal period;
421 (c) the estimated available revenues and expenditures for the ensuing budget period
422 computed by determining:
423 (i) the estimated expenditure for each fund after review of each departmental budget
424 request;
425 (ii) (A) the total revenue requirements of the fund;
426 (B) the part of the total revenue that will be derived from revenue sources other than
427 property tax; and
428 (C) the part of the total revenue that shall be derived from property taxes; and

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- 15 - 429 (d) if required by the governing body, actual performance experience to the extent
430 available in work units, unit costs, man hours, and man years for each budgeted fund that
431 includes an appropriation for salaries or wages for the last completed fiscal period and the first
432 eight months of the current fiscal period if the county is on an annual fiscal period, or the first
433 20 months of the current fiscal period if the county is on a biennial fiscal period, together with
434 the total estimated performance data of like character for the current fiscal period and for the
435 ensuing budget period.
436 [(3)] (5) The budget officer may recommend modification of any departmental budget
437 request under Subsection [(2)] (4)(c)(i) before it is filed with the governing body, if each
438 department head has been given an opportunity to be heard concerning the modification.
439 [(4) Each] (6) (a) A tentative budget shall contain the estimates of expenditures
440 submitted by any department together with specific work programs and other supportive data as
441 the governing body requests. [The]
442 (b) The budget officer shall include with the tentative budget [shall be accompanied]
443 by a supplementary estimate of all capital projects or planned capital projects within the budget
444 period and within the next three succeeding years.
445 [(5) (a) Each] (7) (a) A budget officer that submits a tentative budget [submitted] in a
446 county with a population in excess of 25,000 determined [pursuant to] in accordance with
447 Section 17-36-4 shall [be accompanied by] include with the tentative budget a budget message
448 in explanation of the budget.
449 (b) The budget message shall contain an outline of the proposed financial policies of
450 the county for the budget period and describe the important features of the budgetary plan. It
451 shall also state the reasons for changes from the previous fiscal period in appropriation and
452 revenue items and explain any major changes in financial policy.
453 (c) A budget message for counties with a population of less than 25,000 is
454 recommended but not incumbent upon the budget officer.
455 [(6) The] (8) (a) The governing body shall review, consider, and tentatively adopt a
456 tentative budget [shall be reviewed, considered, and tentatively adopted by the governing body]
457 in a regular or special meeting called for that purpose. [It may thereafter be amended or revised
458 by the governing body prior to public hearings thereon, except that no]
459 (b) (i) Subject to Subsection (8)(b)(ii), the governing body may thereafter amend or

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- 16 - 460 revise the tentative budget prior to public hearings on the tentative budget.
461 (ii) A governing body may not:
462 (A) reduce below the required minimum an appropriation required for debt retirement
463 and interest; or [reduction, pursuant to Section 17-36-17 , of any deficits which exist may be
464 reduced below the required minimum.]
465 (B) reduce, in accordance with Section 17-36-17 , an existing deficit.
466 Section 19. Section 17-36-11 is amended to read:
467 17-36-11. Tentative budget -- Public record prior to adoption.
468 The tentative budget and all supportive schedules and data shall be a public record
469 available for inspection during business hours at the [offices] office of the [county clerk or
470 auditor] budget officer for at least 10 days prior to the public hearing on the adoption of a final
471 budget.
472 Section 20. Section 17-36-15 is amended to read:
473 17-36-15. Adoption of budget -- Immunity.
474 (1) (a) On or before the last day of each fiscal period, the governing body by resolution
475 shall adopt the budget [which, subject to further amendment, shall thereafter be].
476 (b) A budget adopted in accordance with Subsection (1)(a) is, unless amended, in
477 effect for the next fiscal period. [A]
478 (c) The budget officer shall:
479 (i) certify a copy of the final budget, and of any subsequent budget amendment
480 [thereof, shall be certified by the budget officer and filed]; and
481 (ii) file a copy with the state auditor not later than 30 days after [its adoption. A copy,
482 similarly certified, shall be filed] the day on which the governing body adopts the budget.
483 (d) The budget officer shall file a certified copy of the budget in the office of the
484 budget officer for inspection by the public during business hours.
485 (2) (a) Except as provided in Subsection (2)(b), a county officer or county employee
486 may not file a legal action in state or federal court against the county, a department, or a county
487 officer for any matter related to the following:
488 (i) the adoption of a county budget;
489 (ii) a county appropriation;
490 (iii) a county personnel allocation; or

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Senate 2nd Reading Amendments 2-3-2012 kh/va 491

(iv) a fund related to the county budget, a county appropriation, or a county personnel
492 allocation.
493 (b) A county or district attorney may enforce a procedural requirement that governs the
494 adoption or approval of a budget in accordance with this chapter.
495 Section 21. Section 17-36-20 is amended to read:
496 17-36-20. Purchases or encumbrances by purchasing agent.
497 [All purchases or all encumbrances]
498 (1) A person may not make a purchase or incur an encumbrance on behalf of [any] a
499 county [shall be made or incurred only upon] unless that person acts in accordance with an
500 order by the or approval of the person duly authorized to act as purchasing agent for the
501 county[, except encumbrances or expenditures directly investigated and reported by the county
502 auditor and approved by the governing body].
503 (2) Unless otherwise provided by the governing body, the budget officer or [such] the
504 budget officer's agents shall serve as a purchasing agent.
505 Section 22. Section 17-36-43 is amended to read:
506 17-36-43. Financial administration ordinance -- Purposes.
507 The county legislative body, after consultation with the county auditor, may adopt a
508 financial administration ordinance authorizing the county auditor, county executive, county
509 manager, or [appointed administrator], in the case of county operated hospitals or mental health
510 districts, an appointed administrator, to act as the financial officer for the purpose of approving:
511 (1) payroll checks, if the checks are prepared in accordance with a salary schedule
512 established in a personnel ordinance or resolution; or
513 (2) routine expenditures, such as utility bills, payroll-related expenses, supplies,
514 materials, and payments on county-approved contracts and capital expenditures which are
515 referenced in the budget document and approved by an appropriation resolution adopted for the
516 current fiscal year.
517 Section 23. Section 17-50-401 is amended to read:
518 17-50-401. Review of claims by county executive -- Auditor review -- Attorney
519 review -- Claim requirements -- Approval or disapproval of claim -- Written explanation
520 of claim process.
521 (1) Subject to Subsection (3), each county executive shall review each claim S. , as
521a defined in Section 17-9a-102, .S against

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- 18 - 522 the county and disapprove or, if payment appears to the county executive to be just, lawful, and
523 properly due and owing, approve the claim.
524 (2) Upon receiving a notice of claim under Section 63G-7-401 , the county clerk shall
525 deliver the notice of claim to the county executive.
526 (3) (a) The county executive shall forward all claims regarding liability or attorney fees
527 to the county attorney, or, in a county that has a district attorney but not a county attorney, to
528 the district attorney for the attorney's review and recommendation to the county executive
529 regarding liability and payment.
530 (b) Except as provided in Section 17-50-405 , the county executive shall forward all
531 claims requesting payment for goods or services to the county auditor for the auditor's review
532 and recommendation, subject to Subsection (7), to the county executive.
533 (4) Each claim for goods or services against a county shall:
534 (a) itemize the claim, giving applicable names, dates, and particular goods provided or
535 services rendered;
536 (b) if the claim is for service of process, state the character of process served, upon
537 whom served, the number of days engaged, and the number of miles traveled;
538 (c) be duly substantiated as to its correctness and as to the fact that it is justly due;
539 (d) if the claim is for materials furnished, state to whom the materials were furnished,
540 by whom ordered, and the quantity and price agreed upon; and
541 (e) be presented to the county executive within a year after the last item of the account
542 or credit accrued.
543 (5) If the county executive refuses to hear or consider a claim because it is not properly
544 made out, the county executive shall cause notice of the refusal to be given to the claimant or
545 the claimant's agent and shall allow a reasonable amount of time for the claim to be properly
546 itemized and substantiated.
547 (6) Each county shall prepare and make available to a person submitting or intending to
548 submit a claim under this part a written explanation, in simple and easy to understand language,
549 of how to submit a claim to the county and of the county's process for receiving, reviewing, and
550 deciding a claim.
551 (7) Upon receiving a claim in accordance with Subsection (3)(b), the county auditor
552 shall:

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- 19 - 553 (a) (i) investigate, examine, review, and inspect the claim; and
554 (ii) (A) recommend that the county executive approve or reject the claim; and
555 (B) endorse the recommendation;
556 (b) after completing the investigation, examination, and inspection, report the claim
557 and the recommendation described in Subsection (7)(a)(ii) to the county executive; and
558 (c) keep a complete record of the claim, the claim recommendation, the reasons for the
559 recommendation, and the county executive's final action as described in Subsection (8).
560 (8) After receiving the county or district attorney's recommendation in accordance with
561 Subsection (3)(a), or the county auditor's recommendation in accordance with Subsection
562 (3)(b), the county executive shall decide whether to approve or reject a claim.
563 (9) (a) The county auditor shall pay, subject to Subsection (9)(b), a claim approved by
564 the county executive in accordance with Subsection (8) by:
565 (i) a warrant drawn by the auditor on the county treasurer in favor of the person entitled
566 to payment; or
567 (ii) a county check or other payment mechanism as may be adopted in accordance with
568 Chapter 36, Uniform Fiscal Procedures Act for Counties.
569 (b) The county auditor may not pay a claim against the county unless:
570 (i) the auditor:
571 (A) receives from the county executive a certified list described in Subsection
572 17-20-1.7 (4); and
573 (B) has complied with the recommendation and other requirements of Subsection (7);
574 and
575 (ii) the county executive has approved the claim in accordance with Subsection (8).
576 [(7)] (10) Nothing in this section may be construed to modify the requirements of
577 Section 63G-7-401 .
578 Section 24. Section 17-52-401 is amended to read:
579 17-52-401. Contents of proposed optional plan.
580 (1) Each optional plan proposed under this chapter:
581 (a) shall propose the adoption of one of the forms of county government listed in
582 Subsection 17-52-402 (1)(a);
583 (b) shall contain detailed provisions relating to the transition from the existing form of

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- 20 - 584 county government to the form proposed in the optional plan, including provisions relating to
585 the:
586 (i) election or appointment of officers specified in the optional plan for the new form of
587 county government;
588 (ii) retention, elimination, or combining of existing offices and, if an office is
589 eliminated, the division or department of county government responsible for performing the
590 duties of the eliminated office;
591 (iii) continuity of existing ordinances and regulations;
592 (iv) continuation of pending legislative, administrative, or judicial proceedings;
593 (v) making of interim and temporary appointments; and
594 (vi) preparation, approval, and adjustment of necessary budget appropriations;
595 (c) shall specify the date it is to become effective if adopted, which may not be earlier
596 than the first day of January next following the election of officers under the new plan; and
597 (d) notwithstanding any other provision of this title and except with respect to an
598 optional plan that proposes the adoption of the county commission or expanded county
599 commission form of government, with respect to the county budget[: (i) may provide that the
600 county auditor's role is to be the budget officer, to project county revenues, and to prepare a
601 tentative budget to present to the county executive; and (ii)] shall provide that the county
602 executive's role is to prepare and present a proposed budget to the county legislative body, and
603 the county legislative body's role is to adopt a final budget.
604 (2) Subject to Subsection (3), an optional plan may include provisions that are
605 considered necessary or advisable to the effective operation of the proposed optional plan.
606 (3) An optional plan may not include any provision that is inconsistent with or
607 prohibited by the Utah Constitution or any statute.
608 (4) Each optional plan proposing to change the form of government to a form under
609 Section 17-52-504 or 17-52-505 shall:
610 (a) provide for the same executive and legislative officers as are specified in the
611 applicable section for the form of government being proposed by the optional plan;
612 (b) provide for the election of the county council;
613 (c) specify the number of county council members, which shall be an odd number from
614 three to nine;

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- 21 - 615 (d) specify whether the members of the county council are to be elected from districts,
616 at large, or by a combination of at large and by district;
617 (e) specify county council members' qualifications and terms and whether the terms are
618 to be staggered;
619 (f) contain procedures for filling vacancies on the county council, consistent with the
620 provisions of Section 20A-1-508 ; and
621 (g) state the initial compensation, if any, of county council members and procedures for
622 prescribing and changing compensation.
623 (5) Each optional plan proposing to change the form of government to the county
624 commission form under Section 17-52-501 or the expanded county commission form under
625 Section 17-52-502 shall specify:
626 (a) (i) for the county commission form of government, that the county commission
627 shall have three members; or
628 (ii) for the expanded county commission form of government, whether the county
629 commission shall have five or seven members;
630 (b) the terms of office for county commission members and whether the terms are to be
631 staggered;
632 (c) whether members of the county commission are to be elected from districts, at
633 large, or by a combination of at large and from districts; and
634 (d) if any members of the county commission are to be elected from districts, the
635 district residency requirements for those commission members.
636 Section 25. Section 17-53-212 is amended to read:
637 17-53-212. Examination and audit of accounts.
638 (1) A county legislative body may examine and audit the accounts of all officers having
639 the care, management, collection, or disbursement of money belonging to the county or
640 appropriated by law or otherwise for its use and benefit.
641 (2) Nothing in this section may be construed to affect a county auditor's authority under
642 Chapter 19a, County Auditor.
643 Section 26. Section 17-53-303 is amended to read:
644 17-53-303. Examination and audit of accounts.
645 (1) The county executive may examine and audit the accounts of all officers having the

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- 22 - 646 care, management, collection, or disbursement of money belonging to the county or
647 appropriated by law or otherwise for its use and benefit.
648 (2) Nothing in this section may be construed to affect a county auditor's authority under
649 Chapter 19a, County Auditor.
650 Section 27. Section 20A-7-101 is amended to read:
651 20A-7-101. Definitions.
652 As used in this chapter:
653 (1) "Budget officer" means:
654 (a) for a county, the person designated as budget officer in Section [ 17-19-19 ]
655 17-9a-204 ;
656 (b) for a city, the person designated as budget officer in Subsection 10-6-106 (5); or
657 (c) for a town, the town council.
658 (2) "Certified" means that the county clerk has acknowledged a signature as being the
659 signature of a registered voter.
660 (3) "Circulation" means the process of submitting an initiative or referendum petition
661 to legal voters for their signature.
662 (4) "Final fiscal impact statement" means a financial statement prepared after voters
663 approve an initiative that contains the information required by Subsection 20A-7-202.5 (2) or
664 20A-7-502.5 (2).
665 (5) "Initial fiscal impact estimate" means a financial statement prepared according to
666 the terms of Section 20A-7-202.5 or 20A-7-502.5 after the filing of an application for an
667 initiative petition.
668 (6) "Initiative" means a new law proposed for adoption by the public as provided in
669 this chapter.
670 (7) "Initiative packet" means a copy of the initiative petition, a copy of the proposed
671 law, and the signature sheets, all of which have been bound together as a unit.
672 (8) "Legal signatures" means the number of signatures of legal voters that:
673 (a) meet the numerical requirements of this chapter; and
674 (b) have been certified and verified as provided in this chapter.
675 (9) "Legal voter" means a person who:
676 (a) is registered to vote; or

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- 23 - 677 (b) becomes registered to vote before the county clerk certifies the signatures on an
678 initiative or referendum petition.
679 (10) "Local attorney" means the county attorney, city attorney, or town attorney in
680 whose jurisdiction a local initiative or referendum petition is circulated.
681 (11) "Local clerk" means the county clerk, city recorder, or town clerk in whose
682 jurisdiction a local initiative or referendum petition is circulated.
683 (12) (a) "Local law" includes an ordinance, resolution, master plan, and any
684 comprehensive zoning regulation adopted by ordinance or resolution.
685 (b) "Local law" does not include an individual property zoning decision.
686 (13) "Local legislative body" means the legislative body of a county, city, or town.
687 (14) "Local obligation law" means a local law passed by the local legislative body
688 regarding the issuance of a bond, note, lease, finance agreement, or other similar obligation.
689 (15) "Measure" means a proposed constitutional amendment, an initiative, or
690 referendum.
691 (16) "Referendum" means a process by which a law passed by the Legislature or by a
692 local legislative body is submitted or referred to the voters for their approval or rejection.
693 (17) "Referendum packet" means a copy of the referendum petition, a copy of the law
694 being submitted or referred to the voters for their approval or rejection, and the signature
695 sheets, all of which have been bound together as a unit.
696 (18) (a) "Signature" means a holographic signature.
697 (b) "Signature" does not mean an electronic signature.
698 (19) "Signature sheets" means sheets in the form required by this chapter that are used
699 to collect signatures in support of an initiative or referendum.
700 (20) "Sponsors" means the legal voters who support the initiative or referendum and
701 who sign the application for petition copies.
702 (21) "Sufficient" means that the signatures submitted in support of an initiative or
703 referendum petition have been certified and verified as required by this chapter.
704 (22) "Verified" means acknowledged by the person circulating the petition as required
705 in Sections 20A-7-205 and 20A-7-305 .
706 Section 28. Repealer.
707 This bill repeals:

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- 24 - 708 Section 17-19-1, County auditor's powers and duties.
709 Section 17-19-3, Payments -- Notification.
710 Section 17-19-5, Numbering of payments -- Payments not presented for collection.
711 Section 17-19-6, Books to show receipts and disbursements.
712 Section 17-19-7, Current accounts with treasurer.
713 Section 17-19-8, Administration of oaths -- Subpoena power.
714 Section 17-19-9, Books open to inspection.
715 Section 17-19-12, Joint statement with treasurer.
716 Section 17-19-13, Seal.
717 Section 17-19-14, Duties -- Omnibus provision.
718 Section 17-19-19, Budget officer -- Departmental revenue and expenditure reports.
719 Section 17-19-28, Destruction of fee statements, warrants and claims filed for 10
720 years.
721 Section 17-19-29, Monthly report to state treasurer.
722 Section 29. Effective date.
723 If approved by two-thirds of all the members elected to each house, this bill takes effect
724 upon approval by the governor, or the day following the constitutional time limit of Utah
725 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
726 the date of veto override.
727 Section 30. Revisor instructions.
728 The Legislature intends that the Office of Legislative Research and General Counsel, in
729 preparing the Utah Code database for publication, replace the language in Section 17-19a-201
730 from "the effective date of this bill" with the bill's actual effective date.