S.B. 280 Enrolled

1

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;
15 . corrects references to the Medicaid Growth Reduction and Budget Stabilization
16 Account; and
17 . makes technical changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 63J-1-312, as last amended by Laws of Utah 2011, Chapters 211, 303, and 342
25 63J-1-313, as last amended by Laws of Utah 2011, Chapter 303
26 63J-1-314, as last amended by Laws of Utah 2011, Chapters 211 and 303
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 63J-1-312 is amended to read:

30 63J-1-312. Establishing a General Fund Budget Reserve Account -- Providing for
31 deposits and expenditures from the account -- Providing for interest generated by the
32 account.
33 (1) As used in this section:
34 (a) "Education Fund budget deficit" means a situation where appropriations made by
35 the Legislature from the Education Fund for a fiscal year exceed the estimated revenues
36 adopted by the Executive Appropriations Committee of the Legislature for the Education Fund
37 in that fiscal year.
38 (b) "General Fund appropriations" means the sum of the spending authority for a fiscal
39 year that is:
40 (i) granted by the Legislature in all appropriation acts and bills; and
41 (ii) identified as coming from the General Fund.
42 (c) "General Fund budget deficit" means a situation where General Fund appropriations
43 made by the Legislature for a fiscal year exceed the estimated revenues adopted by the
44 Executive Appropriations Committee of the Legislature for the General Fund in that fiscal year.
45 (d) "General Fund revenue surplus" means a situation where actual General Fund
46 revenues collected in a completed fiscal year exceed the estimated revenues for the General
47 Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
48 Legislature.
49 (e) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
50 balance in the General Fund is less than zero.
51 (2) There is created within the General Fund a restricted account to be known as the
52 General Fund Budget Reserve Account, which is designated to receive the legislative
53 appropriations and the surplus revenue required to be deposited into the account by this section.
54 (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in
55 which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in
56 conjunction with the completion of the annual audit by the state auditor, determines that there
57 is a General Fund revenue surplus, the Division of Finance shall transfer 25% of the General

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

86 year in which the revenue surplus occurred.
87 (iii) The Division of Finance shall calculate the amount to be transferred under this
88 Subsection (3)(b):
89 (A) after making the transfer of General Fund revenue surplus to the Medicaid Growth
90 Reduction and Budget Stabilization [Restricted] Account, as provided in Section 63J-1-315 ;
91 (B) before transferring from the General Fund revenue surplus any other year-end
92 contingency appropriations, year-end set-asides, or other year-end transfers required by law;
93 and
94 (C) excluding any direct legislative appropriation made to the General Fund Budget
95 Reserve Account for the fiscal year.
96 (c) For appropriations made by the Legislature to the General Fund Budget Reserve
97 Account, the Division of Finance shall treat those appropriations, unless otherwise specified in
98 the appropriation, as replacement funds for appropriations made from the account if funds were
99 appropriated from the General Fund Budget Reserve Account within the past 10 years and have
100 not yet been replaced.
101 (4) The Legislature may appropriate money from the General Fund Budget Reserve
102 Account only to:
103 (a) resolve a General Fund budget deficit, for the fiscal year in which the General Fund
104 budget deficit occurs;
105 (b) pay some or all of state settlement agreements approved under Title 63G, Chapter
106 10, State Settlement Agreements Act;
107 (c) pay retroactive tax refunds; or
108 (d) resolve an Education Fund budget deficit.
109 (5) Interest generated from investments of money in the General Fund Budget Reserve
110 Account shall be deposited into the General Fund.
111 Section 2. Section 63J-1-313 is amended to read:
112 63J-1-313. Establishing an Education Budget Reserve Account -- Providing for
113 deposits and expenditures from the account -- Providing for interest generated by the

114 account.
115 (1) As used in this section:
116 (a) "Education Fund appropriations" means the sum of the spending authority for a
117 fiscal year that is:
118 (i) granted by the Legislature in all appropriation acts and bills; and
119 (ii) identified as coming from the Education Fund.
120 (b) "Education Fund budget deficit" means a situation where appropriations made by
121 the Legislature from the Education Fund for a fiscal year exceed the estimated revenues
122 adopted by the Executive Appropriations Committee of the Legislature for the Education Fund
123 in that fiscal year.
124 (c) "Education Fund revenue surplus" means a situation where actual Education Fund
125 revenues collected in a completed fiscal year exceed the estimated revenues for the Education
126 Fund in that fiscal year that were adopted by the Executive Appropriations Committee of the
127 Legislature.
128 (d) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
129 balance in the Education Fund is less than zero.
130 (2) There is created within the Education Fund a restricted account to be known as the
131 Education Fund Budget Reserve Account, which is designated to receive the legislative
132 appropriations and the surplus revenue required to be deposited into the account by this section.
133 (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in
134 which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in
135 conjunction with the completion of the annual audit by the state auditor, determines that there
136 is an Education Fund revenue surplus, the Division of Finance shall transfer 25% of the
137 Education Fund revenue surplus to the Education Fund Budget Reserve Account.
138 (ii) If the transfer of 25% of the Education Fund revenue surplus to the Education Fund
139 Budget Reserve Account under Subsection (3)(a)(i) would cause the balance in the account to
140 exceed [7%] 9% of Education Fund appropriations for the fiscal year in which the Education
141 Fund revenue surplus occurred, the Division of Finance shall transfer only those funds

142 necessary to ensure that the balance in the account equals [7%] 9% of the Education Fund
143 appropriations for the fiscal year in which the Education Fund revenue surplus occurred.
144 (iii) The Division of Finance shall calculate the amount to be transferred under this
145 Subsection (3)(a):
146 (A) before transferring from the Education Fund revenue surplus any other year-end
147 contingency appropriations, year-end set-asides, or other year-end transfers required by law;
148 and
149 (B) excluding any direct legislative appropriation made to the Education Fund Budget
150 Reserve Account for the fiscal year.
151 (b) (i) Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if
152 an Education Fund revenue surplus exists and if, within the last 10 years, the Legislature has
153 appropriated any money from the Education Fund Budget Reserve Account that has not been
154 replaced by appropriation or as provided in this Subsection (3)(b), the Division of Finance shall
155 transfer up to 25% more of the Education Fund revenue surplus to the Education Fund Budget
156 Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if
157 any, and transfers from the Education Fund revenue surplus under this Subsection (3)(b) have
158 replaced the appropriations from the account.
159 (ii) If the transfer under Subsection (3)(b)(i) would cause the balance in the account to
160 exceed [7%] 9% of Education Fund appropriations for the fiscal year in which the Education
161 Fund revenue surplus occurred, the Division of Finance shall transfer only those funds
162 necessary to ensure that the balance in the account equals [7%] 9% of Education Fund
163 appropriations for the fiscal year in which the revenue surplus occurred.
164 (iii) The Division of Finance shall calculate the amount to be transferred under this
165 Subsection (3)(b):
166 (A) before transferring from the Education Fund revenue surplus any other year-end
167 contingency appropriations, year-end set-asides, or other year-end transfers required by law;
168 and
169 (B) excluding any direct legislative appropriation made to the Education Fund Budget

170 Reserve Account for the fiscal year.
171 (c) For appropriations made by the Legislature to the Education Fund Budget Reserve
172 Account, the Division of Finance shall treat those appropriations, unless specified otherwise in
173 the appropriation, as replacement funds for appropriations made from the account if funds were
174 appropriated from the account within the past 10 years and have not yet been replaced.
175 (4) Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of
176 Finance determines that an operating deficit exists, the Division of Finance may reduce the
177 transfer to the Education Fund Budget Reserve Account by the amount necessary to eliminate
178 the operating deficit.
179 (5) The Legislature may appropriate money from the Education Fund Budget Reserve
180 Account only to resolve an Education Fund budget deficit.
181 (6) Interest generated from investments of money in the Education Fund Budget
182 Reserve Account shall be deposited into the Education Fund.
183 Section 3. Section 63J-1-314 is amended to read:
184 63J-1-314. Deposits related to the Disaster Recovery Funding Act.
185 (1) As used in this section, "operating deficit" means that, at the end of the fiscal year,
186 the unassigned fund balance in the General Fund is less than zero.
187 (2) Except as provided under Subsection (3), at the end of each fiscal year, the Division
188 of Finance shall, after the transfer of General Fund revenue surplus has been made to the
189 Medicaid Growth Reduction and Budget Stabilization [Restricted] Account, as provided in
190 Section 63J-1-315 , and the General Fund Budget Reserve Account, as provided in Section
191 63J-1-312 , transfer an amount into the State Disaster Recovery Restricted Account, created in
192 Section 53-2-403 , from the General Fund revenue surplus as defined in Section 63J-1-312 ,
193 calculated by:
194 (a) determining the amount of General Fund revenue surplus after the transfer to the
195 Medicaid Growth Reduction and Budget Stabilization [Restricted] Account under Section
196 63J-1-315 and the General Fund Budget Reserve Account under Section 63J-1-312 ;
197 (b) calculating an amount equal to the lesser of:

198 (i) 25% of the amount determined under Subsection (2)(a); or
199 (ii) 6% of the total of the General Fund appropriation amount for the fiscal year in
200 which the surplus occurs; and
201 (c) adding to the amount calculated under Subsection (2)(b) an amount equal to the
202 lesser of:
203 (i) 25% more of the amount described in Subsection (2)(a); or
204 (ii) the amount necessary to replace, in accordance with this Subsection (2)(c), any
205 amount appropriated from the State Disaster Recovery Restricted Account within 10 fiscal
206 years before the fiscal year in which the surplus occurs if:
207 (A) a surplus exists; and
208 (B) the Legislature appropriates money from the State Disaster Recovery Restricted
209 Account that is not replaced by appropriation or as provided in this Subsection (2)(c).
210 (3) Notwithstanding Subsection (2), if, at the end of a fiscal year, the Division of
211 Finance determines that an operating deficit exists, the division shall reduce the transfer to the
212 State Disaster Recovery Restricted Account by the amount necessary to eliminate the operating
213 deficit.