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S.B. 280

This document includes Senate Committee Amendments incorporated into the bill on Mon, Feb 27, 2012 at 3:20 PM by khelgesen. -->             


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Senate Committee Amendments 2-27-2012 kh/po
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BUDGET RESERVE ACCOUNT AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Lyle W. Hillyard

             5     
House Sponsor: Melvin R. Brown

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Budgetary Procedures Act to address limits on budget reserve
             10      accounts.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies the limits on the General Fund Budget Reserve Account;
             14          .    modifies the limits on the Education Budget Reserve Account; S. [ and ]
             14a          . corrects references to the Medicaid Growth Reduction and Budget Stabilization
             14b      Account; and .S
             15          .    makes technical changes.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          63J-1-312, as last amended by Laws of Utah 2011, Chapters 211, 303, and 342
             23          63J-1-313, as last amended by Laws of Utah 2011, Chapter 303
             23a          S. 63J-1-314, as last amended by Laws of Utah 2011, Chapters 211 and 303 .S    
             24     

             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 63J-1-312 is amended to read:
             27           63J-1-312. Establishing a General Fund Budget Reserve Account -- Providing for



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             28
     deposits and expenditures from the account -- Providing for interest generated by the
             29      account.
             30          (1) As used in this section:
             31          (a) "Education Fund budget deficit" means a situation where appropriations made by
             32      the Legislature from the Education Fund for a fiscal year exceed the estimated revenues
             33      adopted by the Executive Appropriations Committee of the Legislature for the Education Fund
             34      in that fiscal year.
             35          (b) "General Fund appropriations" means the sum of the spending authority for a fiscal
             36      year that is:
             37          (i) granted by the Legislature in all appropriation acts and bills; and
             38          (ii) identified as coming from the General Fund.
             39          (c) "General Fund budget deficit" means a situation where General Fund appropriations
             40      made by the Legislature for a fiscal year exceed the estimated revenues adopted by the
             41      Executive Appropriations Committee of the Legislature for the General Fund in that fiscal year.
             42          (d) "General Fund revenue surplus" means a situation where actual General Fund
             43      revenues collected in a completed fiscal year exceed the estimated revenues for the General
             44      Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
             45      Legislature.
             46          (e) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
             47      balance in the General Fund is less than zero.
             48          (2) There is created within the General Fund a restricted account to be known as the
             49      General Fund Budget Reserve Account, which is designated to receive the legislative
             50      appropriations and the surplus revenue required to be deposited into the account by this section.
             51          (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in
             52      which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in
             53      conjunction with the completion of the annual audit by the state auditor, determines that there
             54      is a General Fund revenue surplus, the Division of Finance shall transfer 25% of the General
             55      Fund revenue surplus to the General Fund Budget Reserve Account.
             56          (ii) If the transfer of 25% of the General Fund revenue surplus to the General Fund
             57      Budget Reserve Account would cause the balance in the account to exceed [6%] 8% of General
             58      Fund appropriations for the fiscal year in which the revenue surplus occurred, the Division of



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             59
     Finance shall transfer only those funds necessary to ensure that the balance in the account
             60      equals [6%] 8% of General Fund appropriations for the fiscal year in which the General Fund
             61      revenue surplus occurred.
             62          (iii) The Division of Finance shall calculate the amount to be transferred under this
             63      Subsection (3)(a):
             64          (A) after making the transfer of General Fund revenue surplus to the Medicaid Growth
             65      Reduction and Budget Stabilization [Restricted] Account, as provided in Section 63J-1-315 ;
             66          (B) before transferring from the General Fund revenue surplus any other year-end
             67      contingency appropriations, year-end set-asides, or other year-end transfers required by law;
             68      and
             69          (C) excluding any direct legislative appropriation made to the General Fund Budget
             70      Reserve Account for the fiscal year.
             71          (b) (i) Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if
             72      a General Fund revenue surplus exists and if, within the last 10 years, the Legislature has
             73      appropriated any money from the General Fund Budget Reserve Account that has not been
             74      replaced by appropriation or as provided in this Subsection (3)(b), the Division of Finance shall
             75      transfer up to 25% more of the General Fund revenue surplus to the General Fund Budget
             76      Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if
             77      any, and transfers from the General Fund revenue surplus under this Subsection (3)(b) have
             78      replaced the appropriations from the account.
             79          (ii) If the transfer under Subsection (3)(b)(i) would cause the balance in the account to
             80      exceed [6%] 8% of General Fund appropriations for the fiscal year in which the revenue
             81      surplus occurred, the Division of Finance shall transfer only those funds necessary to ensure
             82      that the balance in the account equals [6%] 8% of General Fund appropriations for the fiscal
             83      year in which the revenue surplus occurred.
             84          (iii) The Division of Finance shall calculate the amount to be transferred under this
             85      Subsection (3)(b):
             86          (A) after making the transfer of General Fund revenue surplus to the Medicaid Growth
             87      Reduction and Budget Stabilization [Restricted] Account, as provided in Section 63J-1-315 ;
             88          (B) before transferring from the General Fund revenue surplus any other year-end
             89      contingency appropriations, year-end set-asides, or other year-end transfers required by law;



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             90
     and
             91          (C) excluding any direct legislative appropriation made to the General Fund Budget
             92      Reserve Account for the fiscal year.
             93          (c) For appropriations made by the Legislature to the General Fund Budget Reserve
             94      Account, the Division of Finance shall treat those appropriations, unless otherwise specified in
             95      the appropriation, as replacement funds for appropriations made from the account if funds were
             96      appropriated from the General Fund Budget Reserve Account within the past 10 years and have
             97      not yet been replaced.
             98          (4) The Legislature may appropriate money from the General Fund Budget Reserve
             99      Account only to:
             100          (a) resolve a General Fund budget deficit, for the fiscal year in which the General Fund
             101      budget deficit occurs;
             102          (b) pay some or all of state settlement agreements approved under Title 63G, Chapter
             103      10, State Settlement Agreements Act;
             104          (c) pay retroactive tax refunds; or
             105          (d) resolve an Education Fund budget deficit.
             106          (5) Interest generated from investments of money in the General Fund Budget Reserve
             107      Account shall be deposited into the General Fund.
             108          Section 2. Section 63J-1-313 is amended to read:
             109           63J-1-313. Establishing an Education Budget Reserve Account -- Providing for
             110      deposits and expenditures from the account -- Providing for interest generated by the
             111      account.
             112          (1) As used in this section:
             113          (a) "Education Fund appropriations" means the sum of the spending authority for a
             114      fiscal year that is:
             115          (i) granted by the Legislature in all appropriation acts and bills; and
             116          (ii) identified as coming from the Education Fund.
             117          (b) "Education Fund budget deficit" means a situation where appropriations made by
             118      the Legislature from the Education Fund for a fiscal year exceed the estimated revenues
             119      adopted by the Executive Appropriations Committee of the Legislature for the Education Fund
             120      in that fiscal year.



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             121
         (c) "Education Fund revenue surplus" means a situation where actual Education Fund
             122      revenues collected in a completed fiscal year exceed the estimated revenues for the Education
             123      Fund in that fiscal year that were adopted by the Executive Appropriations Committee of the
             124      Legislature.
             125          (d) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
             126      balance in the Education Fund is less than zero.
             127          (2) There is created within the Education Fund a restricted account to be known as the
             128      Education Fund Budget Reserve Account, which is designated to receive the legislative
             129      appropriations and the surplus revenue required to be deposited into the account by this section.
             130          (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in
             131      which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in
             132      conjunction with the completion of the annual audit by the state auditor, determines that there
             133      is an Education Fund revenue surplus, the Division of Finance shall transfer 25% of the
             134      Education Fund revenue surplus to the Education Fund Budget Reserve Account.
             135          (ii) If the transfer of 25% of the Education Fund revenue surplus to the Education Fund
             136      Budget Reserve Account under Subsection (3)(a)(i) would cause the balance in the account to
             137      exceed [7%] 9% of Education Fund appropriations for the fiscal year in which the Education
             138      Fund revenue surplus occurred, the Division of Finance shall transfer only those funds
             139      necessary to ensure that the balance in the account equals [7%] 9% of the Education Fund
             140      appropriations for the fiscal year in which the Education Fund revenue surplus occurred.
             141          (iii) The Division of Finance shall calculate the amount to be transferred under this
             142      Subsection (3)(a):
             143          (A) before transferring from the Education Fund revenue surplus any other year-end
             144      contingency appropriations, year-end set-asides, or other year-end transfers required by law;
             145      and
             146          (B) excluding any direct legislative appropriation made to the Education Fund Budget
             147      Reserve Account for the fiscal year.
             148          (b) (i) Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if
             149      an Education Fund revenue surplus exists and if, within the last 10 years, the Legislature has
             150      appropriated any money from the Education Fund Budget Reserve Account that has not been
             151      replaced by appropriation or as provided in this Subsection (3)(b), the Division of Finance shall



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Senate Committee Amendments 2-27-2012 kh/po
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     transfer up to 25% more of the Education Fund revenue surplus to the Education Fund Budget
             153      Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if
             154      any, and transfers from the Education Fund revenue surplus under this Subsection (3)(b) have
             155      replaced the appropriations from the account.
             156          (ii) If the transfer under Subsection (3)(b)(i) would cause the balance in the account to
             157      exceed [7%] 9% of Education Fund appropriations for the fiscal year in which the Education
             158      Fund revenue surplus occurred, the Division of Finance shall transfer only those funds
             159      necessary to ensure that the balance in the account equals [7%] 9% of Education Fund
             160      appropriations for the fiscal year in which the revenue surplus occurred.
             161          (iii) The Division of Finance shall calculate the amount to be transferred under this
             162      Subsection (3)(b):
             163          (A) before transferring from the Education Fund revenue surplus any other year-end
             164      contingency appropriations, year-end set-asides, or other year-end transfers required by law;
             165      and
             166          (B) excluding any direct legislative appropriation made to the Education Fund Budget
             167      Reserve Account for the fiscal year.
             168          (c) For appropriations made by the Legislature to the Education Fund Budget Reserve
             169      Account, the Division of Finance shall treat those appropriations, unless specified otherwise in
             170      the appropriation, as replacement funds for appropriations made from the account if funds were
             171      appropriated from the account within the past 10 years and have not yet been replaced.
             172          (4) Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of
             173      Finance determines that an operating deficit exists, the Division of Finance may reduce the
             174      transfer to the Education Fund Budget Reserve Account by the amount necessary to eliminate
             175      the operating deficit.
             176          (5) The Legislature may appropriate money from the Education Fund Budget Reserve
             177      Account only to resolve an Education Fund budget deficit.
             178          (6) Interest generated from investments of money in the Education Fund Budget
             179      Reserve Account shall be deposited into the Education Fund.
             179a          S. Section 3. Section 63J-1-314 is amended to read:
             179b          63J-1-314.   Deposits related to the Disaster Recovery Funding Act.
             179c          (1) As used in this section, "operating deficit" means that, at the end of the fiscal year, the
             179d      unassigned fund balance in the General Fund is less than zero.
             179e          (2) Except as provided under Subsection (3), at the end of each fiscal year, the Division of
             179f      Finance shall, after the transfer of General Fund revenue surplus has been made to the Medicaid
             179g      Budget Growth Reduction and Stabilization Restricted Account, as provided in Section 63J-1-315,.S


            
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Senate Committee Amendments 2-27-2012 kh/po
179h
     S.and the General Fund Budget Reserve Account, as provided in Section 63J-1-312, transfer an
             179i      amount
             179i      into the State Disaster Recovery Restricted Account, created in Section 53-2-403, from the General
             179j      Fund revenue surplus as defined in Section 63J-1-312, calculated by:
             179k          (a) determining the amount of General Fund revenue surplus after the transfer to the
             179l      Medicaid Growth Reduction and Budget Stabilization [ Restricted ] Account under Section 63J-1-315
             179m      and the General Fund Budget Reserve Account under Section 63J-1-312;
             179n          (b) calculating an amount equal to the lesser of:
             179o          (i) 25% of the amount determined under Subsection (2)(a); or
             179p          (ii) 6% of the total of the General Fund appropriation amount for the fiscal year in which the
             179q      surplus occurs; and
             179r          (c) adding to the amount calculated under Subsection (2)(b) an amount equal to the lesser of:
             179s          (i) 25% more of the amount described in Subsection (2)(a); or
             179t          (ii) the amount necessary to replace, in accordance with this Subsection (2)(c), any amount
             179u      appropriated from the State Disaster Recovery Restricted Account within 10 fiscal years before the
             179v      fiscal year in which the surplus occurs if:
             179w          (A) a surplus exists; and
             179x          (B) the Legislature appropriates money from the State Disaster Recovery Restricted Account
             179y      that is not replaced by appropriation or as provided in this Subsection (2)(c).
             179z          (3) Notwithstanding Subsection (2), if, at the end of a fiscal year, the Division of Finance
             179aa      determines that an operating deficit exists, the division shall reduce the transfer to the State Disaster
             179ab      Recovery Restricted Account by the amount necessary to eliminate the operating deficit. .S



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