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First Substitute S.B. 233

Senator Lyle W. Hillyard proposes the following substitute bill:


             1     
NAME CHANGE FOR APPROPRIATIONS SUBCOMMITTEES

             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 sections in the Utah Code to reflect modified appropriation
             10      subcommittee names.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies references in the Utah Code to correctly refer to modified appropriation
             14      subcommittee names.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          9-4-802, as last amended by Laws of Utah 2011, Chapter 366
             22          26-1-4, as last amended by Laws of Utah 2009, Chapter 136
             23          26-1-38, as last amended by Laws of Utah 2010, Chapter 323
             24          26-18-2.3, as last amended by Laws of Utah 2011, Chapter 151
             25          26-18-2.4, as last amended by Laws of Utah 2009, Chapter 324


             26          26-18-3, as last amended by Laws of Utah 2011, Chapters 151, 297, and 366
             27          26-18-12, as enacted by Laws of Utah 2008, Chapter 60
             28          26-18a-3, as last amended by Laws of Utah 2010, Chapter 278
             29          26-18b-101, as enacted by Laws of Utah 2002, Chapter 55
             30          26-47-102, as renumbered and amended by Laws of Utah 2005, Chapter 273
             31          26-47-103, as last amended by Laws of Utah 2011, Chapter 297
             32          26-50-202, as last amended by Laws of Utah 2010, Chapter 286
             33          26-52-202, as last amended by Laws of Utah 2011, Chapter 340
             34          31A-29-113.5, as enacted by Laws of Utah 2005, Chapter 273
             35          35A-3-302, as last amended by Laws of Utah 2009, Chapter 55
             36          36-23-106, as last amended by Laws of Utah 2008, Chapters 218 and 382
             37          51-9-201, as last amended by Laws of Utah 2010, Chapter 404
             38          51-9-203, as renumbered and amended by Laws of Utah 2008, Chapter 382
             39          53B-20-104, as last amended by Laws of Utah 2000, Chapter 231
             40          59-21-2, as last amended by Laws of Utah 2011, Chapter 342
             41          62A-3-110, as enacted by Laws of Utah 2002, Chapter 268
             42          62A-4a-117, as repealed and reenacted by Laws of Utah 2010, Chapter 322
             43          62A-4a-207, as last amended by Laws of Utah 2011, Chapter 316
             44          62A-7-203, as last amended by Laws of Utah 2005, Chapter 13
             45          62A-15-103, as last amended by Laws of Utah 2011, Chapter 303
             46          63A-5-104, as last amended by Laws of Utah 2011, Chapters 219 and 409
             47          63A-5-701, as renumbered and amended by Laws of Utah 2008, Chapter 382
             48          63B-3-301, as last amended by Laws of Utah 2011, Chapter 270
             49          63J-1-201, as last amended by Laws of Utah 2011, Chapters 334 and 378
             50          63J-1-201.7, as enacted by Laws of Utah 2011, Chapter 378
             51          63M-1-1206, as last amended by Laws of Utah 2010, Chapter 323
             52          63M-1-1404, as renumbered and amended by Laws of Utah 2008, Chapter 382
             53          63M-1-1901, as last amended by Laws of Utah 2010, Chapter 323
             54          63M-2-302, as last amended by Laws of Utah 2010, Chapter 323
             55          73-30-202, as enacted by Laws of Utah 2010, Chapter 141
             56     


             57      Be it enacted by the Legislature of the state of Utah:
             58          Section 1. Section 9-4-802 is amended to read:
             59           9-4-802. Purposes of Homeless Coordinating Committee -- Uses of Pamela
             60      Atkinson Homeless Account.
             61          (1) (a) The Homeless Coordinating Committee shall work to ensure that services
             62      provided to the homeless by state agencies, local governments, and private organizations are
             63      provided in a cost-effective manner.
             64          (b) Programs funded by the committee shall emphasize emergency housing and
             65      self-sufficiency, including placement in meaningful employment or occupational training
             66      activities and, where needed, special services to meet the unique needs of the homeless who:
             67          (i) have families with children;
             68          (ii) have a disability or a mental illness; or
             69          (iii) suffer from other serious challenges to employment and self-sufficiency.
             70          (c) The committee may also fund treatment programs to ameliorate the effects of
             71      substance abuse or a disability.
             72          (2) The committee members designated in Subsection 9-4-801 (2) shall:
             73          (a) award contracts funded by the Pamela Atkinson Homeless Account with the advice
             74      and input of those designated in Subsection 9-4-801 (3);
             75          (b) consider need, diversity of geographic location, coordination with or enhancement
             76      of existing services, and the extensive use of volunteers; and
             77          (c) give priority for funding to programs that serve the homeless who have a mental
             78      illness and who are in families with children.
             79          (3) (a) In any fiscal year, no more than 80% of the funds in the Pamela Atkinson
             80      Homeless Account may be allocated to organizations that provide services only in Salt Lake,
             81      Davis, Weber, and Utah Counties.
             82          (b) The committee may:
             83          (i) expend up to 3% of its annual appropriation for administrative costs associated with
             84      the allocation of funds from the Pamela Atkinson Homeless Account, and up to 2% of its
             85      annual appropriation for marketing the account and soliciting donations to the account; and
             86          (ii) pay for the initial costs of the State Tax Commission in implementing Section
             87      59-10-1306 from the account.


             88          (4) (a) The committee may not expend, except as provided in Subsection (4)(b), an
             89      amount equal to the greater of $50,000 or 20% of the amount donated to the Pamela Atkinson
             90      Homeless Account during fiscal year 1988-89.
             91          (b) If there are decreases in contributions to the account, the committee may expend
             92      funds held in the account to provide program stability, but the committee shall reimburse the
             93      amounts of those expenditures to the account.
             94          (5) The committee shall make an annual report to the Business, Economic
             95      Development [and Human Resources], and Labor Appropriations Subcommittee regarding the
             96      programs and services funded by contributions to the Pamela Atkinson Homeless Account.
             97          (6) The money in the Pamela Atkinson Homeless Account shall be invested by the
             98      state treasurer according to the procedures and requirements of Title 51, Chapter 7, State
             99      Money Management Act, except that all interest or other earnings derived from the restricted
             100      account shall be deposited in the restricted account.
             101          Section 2. Section 26-1-4 is amended to read:
             102           26-1-4. Department of Health created -- Policymaking responsibilities --
             103      Consultation with local health departments -- Committee to evaluate health policies and
             104      to review federal grants -- Committee responsibilities.
             105          (1) There is created the Department of Health, which has all of the policymaking
             106      functions, regulatory and enforcement powers, rights, duties, and responsibilities of the
             107      Division of Health, the Board of Health, the State Health Planning Development Agency, and
             108      the Office of Health Care Financing. Unless otherwise specifically provided, when reference is
             109      made in any statute of this state to the Board of Health, the Division of Health, the State Health
             110      Planning Development Agency, or the Office of Health Care Financing, it refers to the
             111      department. The department shall assume all of the policymaking functions, powers, rights,
             112      duties, and responsibilities over the division, agency, and office previously vested in the
             113      Department of Human Services and its executive director.
             114          (2) In establishing public health policy, the department shall consult with the local
             115      health departments established under Title 26A, Chapter 1, Local Health Departments.
             116          (3) (a) As used in this Subsection (3):
             117          (i) "Committee" means the committee established under Subsection (3)(b).
             118          (ii) "Exempt application" means an application for a federal grant that meets the


             119      criteria established under Subsection (3)(c)(iii).
             120          (iii) "Expedited application" means an application for a federal grant that meets the
             121      criteria established under Subsection (3)(c)(iv).
             122          (iv) "Federal grant" means a grant from the federal government that could provide
             123      funds for local health departments to help them fulfill their duties and responsibilities.
             124          (v) "Reviewable application" means an application for a federal grant that is not an
             125      exempt application.
             126          (b) The department shall establish a committee consisting of:
             127          (i) the executive director, or the executive director's designee;
             128          (ii) two representatives of the department, appointed by the executive director; and
             129          (iii) three representatives of local health departments, appointed by all local health
             130      departments.
             131          (c) The committee shall:
             132          (i) evaluate:
             133          (A) the allocation of public health resources between the department and local health
             134      departments; and
             135          (B) policies that affect local health departments;
             136          (ii) consider policy changes proposed by the department or local health departments;
             137          (iii) establish criteria by which an application for a federal grant may be judged to
             138      determine whether it should be exempt from the requirements under Subsection (3)(d); and
             139          (iv) establish criteria by which an application for a federal grant may be judged to
             140      determine whether committee review under Subsection (3)(d)(i) should be delayed until after
             141      the application is submitted because the application is required to be submitted under a
             142      timetable that makes committee review before it is submitted impracticable if the submission
             143      deadline is to be met.
             144          (d) (i) The committee shall review the goals and budget for each reviewable
             145      application:
             146          (A) before the application is submitted, except for an expedited application; and
             147          (B) for an expedited application, after the application is submitted but before funds
             148      from the federal grant for which the application was submitted are disbursed or encumbered.
             149          (ii) Funds from a federal grant pursuant to a reviewable application may not be


             150      disbursed or encumbered before the goals and budget for the federal grant are established by:
             151          (A) a two-thirds vote of the committee, following the committee review under
             152      Subsection (3)(d)(i); or
             153          (B) if two-thirds of the committee cannot agree on the goals and budget, the chair of
             154      the health advisory council, after consultation with the committee in a manner that the
             155      committee determines.
             156          (e) An exempt application is exempt from the requirements of Subsection (3)(d).
             157          (f) The committee shall report to the Legislature's [Health and Human] Social Services
             158      Appropriations Subcommittee and Political Subdivisions Interim Committee by November 30
             159      of each year regarding implementation of this Subsection (3).
             160          (g) The department may use money from a federal grant to pay administrative costs
             161      incurred in implementing this Subsection (3).
             162          Section 3. Section 26-1-38 is amended to read:
             163           26-1-38. Local health emergency assistance program.
             164          (1) As used in this section:
             165          (a) "Local health department" has the same meaning as defined in Section 26A-1-102 .
             166          (b) "Local health emergency" means an unusual event or series of events causing or
             167      resulting in a substantial risk or substantial potential risk to the health of a significant portion
             168      of the population within the boundary of a local health department.
             169          (c) "Program" means the local health emergency assistance program that the
             170      department is required to establish under this section.
             171          (d) "Program fund" means money that the Legislature appropriates to the department
             172      for use in the program and other money otherwise made available for use in the program.
             173          (2) The department shall establish, to the extent of funds appropriated by the
             174      Legislature or otherwise made available to the program fund, a local health emergency
             175      assistance program.
             176          (3) Under the program, the department shall:
             177          (a) provide a method for a local health department to seek reimbursement from the
             178      program fund for local health department expenses incurred in responding to a local health
             179      emergency;
             180          (b) require matching funds from any local health department seeking reimbursement


             181      from the program fund;
             182          (c) establish a method for apportioning money in the program fund to multiple local
             183      health departments when the total amount of concurrent requests for reimbursement by
             184      multiple local health departments exceeds the balance in the program fund; and
             185          (d) establish by rule other provisions that the department considers necessary or
             186      advisable to implement the program.
             187          (4) Each September the department shall:
             188          (a) submit to the Health and Human Services Interim Committee of the Legislature a
             189      written report summarizing program activity, including:
             190          (i) a description of the requests for reimbursement from local health departments
             191      during the preceding 12 months;
             192          (ii) the amount of each reimbursement made from the program fund to local health
             193      departments; and
             194          (iii) the current balance of the program fund; and
             195          (b) submit a copy of the report required under Subsection (4)(a) to the [Health and
             196      Human] Social Services Appropriations Subcommittee.
             197          (5) (a) (i) Subject to Subsection (5)(a)(ii), the department shall use money in the
             198      program fund exclusively for purposes of the program.
             199          (ii) The department may use money in the program fund to cover its costs of
             200      administering the program.
             201          (b) Money that the Legislature appropriates to the program fund is nonlapsing.
             202          (c) Any interest earned on money in the program fund shall be deposited to the General
             203      Fund.
             204          Section 4. Section 26-18-2.3 is amended to read:
             205           26-18-2.3. Division responsibilities -- Emphasis -- Periodic assessment.
             206          (1) In accordance with the requirements of Title XIX of the Social Security Act and
             207      applicable federal regulations, the division is responsible for the effective and impartial
             208      administration of this chapter in an efficient, economical manner. The division shall:
             209          (a) establish, on a statewide basis, a program to safeguard against unnecessary or
             210      inappropriate use of Medicaid services, excessive payments, and unnecessary or inappropriate
             211      hospital admissions or lengths of stay;


             212          (b) deny any provider claim for services that fail to meet criteria established by the
             213      division concerning medical necessity or appropriateness; and
             214          (c) place its emphasis on high quality care to recipients in the most economical and
             215      cost-effective manner possible, with regard to both publicly and privately provided services.
             216          (2) The division shall implement and utilize cost-containment methods, where
             217      possible, which may include:
             218          (a) prepayment and postpayment review systems to determine if utilization is
             219      reasonable and necessary;
             220          (b) preadmission certification of nonemergency admissions;
             221          (c) mandatory outpatient, rather than inpatient, surgery in appropriate cases;
             222          (d) second surgical opinions;
             223          (e) procedures for encouraging the use of outpatient services;
             224          (f) consistent with Sections 26-18-2.4 and 58-17b-606 , a Medicaid drug program;
             225          (g) coordination of benefits; and
             226          (h) review and exclusion of providers who are not cost effective or who have abused
             227      the Medicaid program, in accordance with the procedures and provisions of federal law and
             228      regulation.
             229          (3) The director of the division shall periodically assess the cost effectiveness and
             230      health implications of the existing Medicaid program, and consider alternative approaches to
             231      the provision of covered health and medical services through the Medicaid program, in order to
             232      reduce unnecessary or unreasonable utilization.
             233          (4) The department shall ensure Medicaid program integrity by conducting internal
             234      audits of the Medicaid program for efficiencies, best practices, fraud, waste, abuse, and cost
             235      recovery.
             236          (5) The department shall, by December 31 of each year, report to the [Health and
             237      Human] Social Services Appropriations Subcommittee regarding:
             238          (a) measures taken under this section to increase:
             239          (i) efficiencies within the program; and
             240          (ii) cost avoidance and cost recovery efforts in the program; and
             241          (b) results of program integrity efforts under Subsection (4).
             242          Section 5. Section 26-18-2.4 is amended to read:


             243           26-18-2.4. Medicaid drug program -- Preferred drug list.
             244          (1) A Medicaid drug program developed by the department under Subsection 26-18-2.3
             245      (2)(f):
             246          (a) shall, notwithstanding Subsection 26-18-2.3 (1)(b), be based on clinical and
             247      cost-related factors which include medical necessity as determined by a provider in accordance
             248      with administrative rules established by the Drug Utilization Review Board;
             249          (b) may include therapeutic categories of drugs that may be exempted from the drug
             250      program;
             251          (c) may include placing some drugs, except the drugs described in Subsection (2), on a
             252      preferred drug list to the extent determined appropriate by the department;
             253          (d) notwithstanding the requirements of Part 2, Drug Utilization Review Board, shall
             254      immediately implement the prior authorization requirements for a non-preferred drug that is in
             255      the same therapeutic class as a drug that is:
             256          (i) on the preferred drug list on the date that this act takes effect; or
             257          (ii) added to the preferred drug list after this act takes effect; and
             258          (e) except as prohibited by Subsections 58-17b-606 (4) and (5), the prior authorization
             259      requirements established under Subsections (1)(c) and (d) shall permit a health care provider or
             260      the health care provider's agent to obtain a prior authorization override of the preferred drug list
             261      through the department's pharmacy prior authorization review process, which shall:
             262          (i) provide either telephone or fax approval or denial of the request within 24 hours of
             263      the receipt of a request that is submitted during normal business hours of Monday through
             264      Friday from 8 am to 5 pm;
             265          (ii) provide for the dispensing of a limited supply of a requested drug as determined
             266      appropriate by the department in an emergency situation, if the request for an override is
             267      received outside of the department's normal business hours; and
             268          (iii) require the health care provider to provide the department with documentation of
             269      the medical need for the preferred drug list override in accordance with criteria established by
             270      the department in consultation with the Pharmacy and Therapeutics Committee.
             271          (2) (a) For purposes of this Subsection (2), "immunosuppressive drug":
             272          (i) means a drug that is used in immunosuppressive therapy to inhibit or prevent
             273      activity of the immune system to aid the body in preventing the rejection of transplanted organs


             274      and tissue; and
             275          (ii) does not include drugs used for the treatment of autoimmune disease or diseases
             276      that are most likely of autoimmune origin.
             277          (b) A preferred drug list developed under the provisions of this section may not
             278      include:
             279          (i) a psychotropic or anti-psychotic drug; or
             280          (ii) an immunosuppressive drug.
             281          (c) The state Medicaid program shall reimburse for a prescription for an
             282      immunosuppressive drug as written by the health care provider for a patient who has undergone
             283      an organ transplant. For purposes of Subsection 58-17b-606 (4), and with respect to patients
             284      who have undergone an organ transplant, the prescription for a particular immunosuppressive
             285      drug as written by a health care provider meets the criteria of demonstrating to the Department
             286      of Health a medical necessity for dispensing the prescribed immunosuppressive drug.
             287          (d) Notwithstanding the requirements of Part 2, Drug Utilization Review Board, the
             288      state Medicaid drug program may not require the use of step therapy for immunosuppressive
             289      drugs without the written or oral consent of the health care provider and the patient.
             290          (3) The department shall report to the Health and Human Services Interim Committee
             291      and to the [Health and Human] Social Services Appropriations Subcommittee prior to
             292      November 1, 2010 regarding the savings to the Medicaid program resulting from the use of the
             293      preferred drug list permitted by Subsection (1).
             294          Section 6. Section 26-18-3 is amended to read:
             295           26-18-3. Administration of Medicaid program by department -- Reporting to the
             296      Legislature -- Disciplinary measures and sanctions -- Funds collected -- Eligibility
             297      standards -- Internal audits -- Studies -- Health opportunity accounts.
             298          (1) The department shall be the single state agency responsible for the administration
             299      of the Medicaid program in connection with the United States Department of Health and
             300      Human Services pursuant to Title XIX of the Social Security Act.
             301          (2) (a) The department shall implement the Medicaid program through administrative
             302      rules in conformity with this chapter, Title 63G, Chapter 3, Utah Administrative Rulemaking
             303      Act, the requirements of Title XIX, and applicable federal regulations.
             304          (b) The rules adopted under Subsection (2)(a) shall include, in addition to other rules


             305      necessary to implement the program:
             306          (i) the standards used by the department for determining eligibility for Medicaid
             307      services;
             308          (ii) the services and benefits to be covered by the Medicaid program; and
             309          (iii) reimbursement methodologies for providers under the Medicaid program.
             310          (3) (a) The department shall, in accordance with Subsection (3)(b), report to the
             311      [Health and Human] Social Services Appropriations Subcommittee when the department:
             312          (i) implements a change in the Medicaid State Plan;
             313          (ii) initiates a new Medicaid waiver;
             314          (iii) initiates an amendment to an existing Medicaid waiver;
             315          (iv) applies for an extension of an application for a waiver or an existing Medicaid
             316      waiver; or
             317          (v) initiates a rate change that requires public notice under state or federal law.
             318          (b) The report required by Subsection (3)(a) shall:
             319          (i) be submitted to the [Health and Human] Social Services Appropriations
             320      Subcommittee prior to the department implementing the proposed change; and
             321          (ii) include:
             322          (A) a description of the department's current practice or policy that the department is
             323      proposing to change;
             324          (B) an explanation of why the department is proposing the change;
             325          (C) the proposed change in services or reimbursement, including a description of the
             326      effect of the change;
             327          (D) the effect of an increase or decrease in services or benefits on individuals and
             328      families;
             329          (E) the degree to which any proposed cut may result in cost-shifting to more expensive
             330      services in health or human service programs; and
             331          (F) the fiscal impact of the proposed change, including:
             332          (I) the effect of the proposed change on current or future appropriations from the
             333      Legislature to the department;
             334          (II) the effect the proposed change may have on federal matching dollars received by
             335      the state Medicaid program;


             336          (III) any cost shifting or cost savings within the department's budget that may result
             337      from the proposed change; and
             338          (IV) identification of the funds that will be used for the proposed change, including any
             339      transfer of funds within the department's budget.
             340          (4) (a) The Department of Human Services shall report to the Legislative [Health and
             341      Human] Social Services Appropriations Subcommittee no later than December 31, 2010 in
             342      accordance with Subsection (4)(b).
             343          (b) The report required by Subsection (4)(a) shall include:
             344          (i) changes made by the division or the department beginning July 1, 2010 that effect
             345      the Medicaid program, a waiver under the Medicaid program, or an interpretation of Medicaid
             346      services or funding, that relate to care for children and youth in the custody of the Division of
             347      Child and Family Services or the Division of Juvenile Justice Services;
             348          (ii) the history and impact of the changes under Subsection (4)(b)(i);
             349          (iii) the Department of Human Service's plans for addressing the impact of the changes
             350      under Subsection (4)(b)(i); and
             351          (iv) ways to consolidate administrative functions within the Department of Human
             352      Services, the Department of Health, the Division of Child and Family Services, and the
             353      Division of Juvenile Justice Services to more efficiently meet the needs of children and youth
             354      with mental health and substance disorder treatment needs.
             355          (5) Any rules adopted by the department under Subsection (2) are subject to review and
             356      reauthorization by the Legislature in accordance with Section 63G-3-502 .
             357          (6) The department may, in its discretion, contract with the Department of Human
             358      Services or other qualified agencies for services in connection with the administration of the
             359      Medicaid program, including:
             360          (a) the determination of the eligibility of individuals for the program;
             361          (b) recovery of overpayments; and
             362          (c) consistent with Section 26-20-13 , and to the extent permitted by law and quality
             363      control services, enforcement of fraud and abuse laws.
             364          (7) The department shall provide, by rule, disciplinary measures and sanctions for
             365      Medicaid providers who fail to comply with the rules and procedures of the program, provided
             366      that sanctions imposed administratively may not extend beyond:


             367          (a) termination from the program;
             368          (b) recovery of claim reimbursements incorrectly paid; and
             369          (c) those specified in Section 1919 of Title XIX of the federal Social Security Act.
             370          (8) Funds collected as a result of a sanction imposed under Section 1919 of Title XIX
             371      of the federal Social Security Act shall be deposited in the General Fund as dedicated credits to
             372      be used by the division in accordance with the requirements of Section 1919 of Title XIX of
             373      the federal Social Security Act.
             374          (9) (a) In determining whether an applicant or recipient is eligible for a service or
             375      benefit under this part or Chapter 40, Utah Children's Health Insurance Act, the department
             376      shall, if Subsection (9)(b) is satisfied, exclude from consideration one passenger vehicle
             377      designated by the applicant or recipient.
             378          (b) Before Subsection (9)(a) may be applied:
             379          (i) the federal government shall:
             380          (A) determine that Subsection (9)(a) may be implemented within the state's existing
             381      public assistance-related waivers as of January 1, 1999;
             382          (B) extend a waiver to the state permitting the implementation of Subsection (9)(a); or
             383          (C) determine that the state's waivers that permit dual eligibility determinations for
             384      cash assistance and Medicaid are no longer valid; and
             385          (ii) the department shall determine that Subsection (9)(a) can be implemented within
             386      existing funding.
             387          (10) (a) For purposes of this Subsection (10):
             388          (i) "aged, blind, or has a disability" means an aged, blind, or disabled individual, as
             389      defined in 42 U.S.C. 1382c(a)(1); and
             390          (ii) "spend down" means an amount of income in excess of the allowable income
             391      standard that shall be paid in cash to the department or incurred through the medical services
             392      not paid by Medicaid.
             393          (b) In determining whether an applicant or recipient who is aged, blind, or has a
             394      disability is eligible for a service or benefit under this chapter, the department shall use 100%
             395      of the federal poverty level as:
             396          (i) the allowable income standard for eligibility for services or benefits; and
             397          (ii) the allowable income standard for eligibility as a result of spend down.


             398          (11) The department shall conduct internal audits of the Medicaid program.
             399          (12) In order to determine the feasibility of contracting for direct Medicaid providers
             400      for primary care services, the department shall:
             401          (a) issue a request for information for direct contracting for primary services that shall
             402      provide that a provider shall exclusively serve all Medicaid clients:
             403          (i) in a geographic area;
             404          (ii) for a defined range of primary care services; and
             405          (iii) for a predetermined total contracted amount; and
             406          (b) by February 1, 2011, report to the [Health and Human] Social Services
             407      Appropriations Subcommittee on the response to the request for information under Subsection
             408      (12)(a).
             409          (13) (a) By December 31, 2010, the department shall:
             410          (i) determine the feasibility of implementing a three year patient-centered medical
             411      home demonstration project in an area of the state using existing budget funds; and
             412          (ii) report the department's findings and recommendations under Subsection (13)(a)(i)
             413      to the [Health and Human] Social Services Appropriations Subcommittee.
             414          (b) If the department determines that the medical home demonstration project
             415      described in Subsection (13)(a) is feasible, and the [Health and Human] Social Services
             416      Appropriations Subcommittee recommends that the demonstration project be implemented, the
             417      department shall:
             418          (i) implement the demonstration project; and
             419          (ii) by December 1, 2012, make recommendations to the [Health and Human] Social
             420      Services Appropriations Subcommittee regarding the:
             421          (A) continuation of the demonstration project;
             422          (B) expansion of the demonstration project to other areas of the state; and
             423          (C) cost savings incurred by the implementation of the demonstration project.
             424          (14) (a) The department may apply for and, if approved, implement a demonstration
             425      program for health opportunity accounts, as provided for in 42 U.S.C. Sec. 1396u-8.
             426          (b) A health opportunity account established under Subsection (14)(a) shall be an
             427      alternative to the existing benefits received by an individual eligible to receive Medicaid under
             428      this chapter.


             429          (c) Subsection (14)(a) is not intended to expand the coverage of the Medicaid program.
             430          Section 7. Section 26-18-12 is amended to read:
             431           26-18-12. Expansion of 340B drug pricing programs.
             432          (1) The department shall, in accordance with this section, expand the state Medicaid
             433      program's use of savings under the 340B drug pricing program.
             434          (2) The department shall:
             435          (a) determine:
             436          (i) the feasibility of developing and implementing one or more 340B drug pricing
             437      programs for a specific disease, similar to the department's hemophilia disease management
             438      services; and
             439          (ii) whether the 340B drug program for a specific disease results in greater savings for
             440      the department than other drug management programs for the particular disease;
             441          (b) report by May 21, 2008 to the Legislature's Health and Human Services Interim
             442      Committee and [Health and Human] Social Services Appropriations Subcommittee regarding:
             443          (i) potential cost savings to the state Medicaid program from expansion of the use of
             444      340B drug pricing programs;
             445          (ii) state Medicaid plan amendments or waivers necessary to implement increased use
             446      of 340B drug pricing programs by the state Medicaid program; and
             447          (iii) projected implementation of the 340B drug pricing programs identified under the
             448      provisions of Subsection (2)(a);
             449          (c) work with the Association for Utah Community Health to identify and assist
             450      community clinics that do not have 340B drug pricing programs to determine whether, under
             451      applicable federal law:
             452          (i) the patients of the community health center would benefit from establishing a 340B
             453      drug pricing program either on site, or through a contract with a pharmacy provider; and
             454          (ii) the community health center can provide the 340B drug price savings to the
             455      community health center's Medicaid patients; and
             456          (d) beginning May 21, 2008, report on a quarterly basis to the Legislature's Health and
             457      Human Services Interim Committee and [Health and Human] Social Services Appropriations
             458      Subcommittee on the department's progress towards implementing an expansion of the use of
             459      the 340B drug pricing program by community health centers.


             460          (3) If the department needs a Medicaid waiver to implement a 340B drug program for a
             461      specific disease, the department shall comply with the reporting requirements of Subsection
             462      (2)(b)(ii) of this section, and the reporting requirements of Section 26-18-3 .
             463          (4) This section shall sunset in accordance with Section 63I-1-226 .
             464          Section 8. Section 26-18a-3 is amended to read:
             465           26-18a-3. Purpose of committee.
             466          (1) The committee shall work to:
             467          (a) provide financial assistance for initial medical expenses of children who need organ
             468      transplants;
             469          (b) obtain the assistance of volunteer and public service organizations; and
             470          (c) fund activities as the committee designates for the purpose of educating the public
             471      about the need for organ donors.
             472          (2) (a) The committee is responsible for awarding financial assistance funded by the
             473      restricted account.
             474          (b) The financial assistance awarded by the committee under Subsection (1)(a) shall be
             475      in the form of interest free loans. The committee may establish terms for repayment of the
             476      loans, including a waiver of the requirement to repay any awards if, in the committee's
             477      judgment, repayment of the loan would impose an undue financial burden on the recipient.
             478          (c) In making financial awards under Subsection (1)(a), the committee shall consider:
             479          (i) need;
             480          (ii) coordination with or enhancement of existing services or financial assistance,
             481      including availability of insurance or other state aid;
             482          (iii) the success rate of the particular organ transplant procedure needed by the child;
             483      and
             484          (iv) the extent of the threat to the child's life without the organ transplant.
             485          (3) The committee may only provide the assistance described in this section to children
             486      who have resided in Utah, or whose legal guardians have resided in Utah for at least six months
             487      prior to the date of assistance under this section.
             488          (4) (a) The committee may expend up to 5% of its annual appropriation for
             489      administrative costs associated with the allocation of funds from the restricted account.
             490          (b) The administrative costs shall be used for the costs associated with staffing the


             491      committee and for State Tax Commission costs in implementing Section 59-10-1308 .
             492          (5) The committee shall make an annual report to the [Health and Human] Social
             493      Services Appropriations Subcommittee regarding the programs and services funded by
             494      contributions to the restricted account.
             495          Section 9. Section 26-18b-101 is amended to read:
             496           26-18b-101. Organ Donation Contribution Fund created.
             497          (1) (a) There is created a restricted special revenue fund known as the Organ Donation
             498      Contribution Fund.
             499          (b) The Organ Donation Contribution Fund shall consist of:
             500          (i) private contributions;
             501          (ii) donations or grants from public or private entities;
             502          (iii) voluntary donations collected under Sections 41-1a-230.5 and 53-3-214.7 ; and
             503          (iv) interest and earnings on fund money.
             504          (c) The cost of administering the Organ Donation Contribution Fund shall be paid from
             505      money in the fund.
             506          (2) The Department of Health shall:
             507          (a) administer the funds deposited in the Organ Donation Contribution Fund;
             508          (b) select qualified organizations and distribute the funds in the Organ Donation
             509      Contribution Fund in accordance with Subsection (3); and
             510          (c) make an annual report on the fund to the [Health and Human] Social Services
             511      Appropriations Subcommittee.
             512          (3) (a) The funds in the Organ Donation Contribution Fund may be distributed to a
             513      selected organization that:
             514          (i) promotes and supports organ donation;
             515          (ii) assists in maintaining and operating a statewide organ donation registry; and
             516          (iii) provides donor awareness education.
             517          (b) An organization that meets the criteria of Subsections (3)(a)(i) through (iii) may
             518      apply to the Department of Health, in a manner prescribed by the department, to receive a
             519      portion of the money contained in the Organ Donation Contribution Fund.
             520          Section 10. Section 26-47-102 is amended to read:
             521           26-47-102. Prescription Drug Assistance Program.


             522          (1) No later than October 1, 2003, the department shall implement a Prescription Drug
             523      Assistance Program. The program shall assist persons seeking information about how to obtain
             524      prescription drugs at a reduced price or no cost. The program shall:
             525          (a) collect eligibility and enrollment information about programs that make
             526      prescription drugs available to consumers at a reduced price or no cost;
             527          (b) provide information collected under Subsection (1)(a) to consumers upon request
             528      via a toll-free phone line, the Internet, and mail;
             529          (c) inform pharmacists and other health care providers of the Prescription Drug
             530      Assistance Program; and
             531          (d) assist consumers in completing applications to participate in programs identified
             532      under Subsection (1)(a).
             533          (2) Any pharmaceutical manufacturer, distributor, or wholesaler operating in the state
             534      shall:
             535          (a) notify the department of any program operated by it to provide prescription drugs to
             536      consumers at a reduced price or no cost; and
             537          (b) provide the department with information about eligibility, enrollment, and benefits.
             538          (3) Pharmacies, as defined in Title 58, Chapter 17b, Pharmacy Practice Act, shall
             539      notify their patients of the Prescription Drug Assistance Program. This notification shall
             540      include displaying the program's toll-free number, and may include distributing a brochure or
             541      oral communication.
             542          (4) The department may accept grants, gifts, and donations of money or property for
             543      use by the Prescription Drug Assistance Program.
             544          (5) The department shall report to the Health and Human Services Interim Committee
             545      and the [Joint Health and Human] Social Services Appropriations Subcommittee on the
             546      performance of the Prescription Drug Assistance Program prior to the 2004 and 2005 Annual
             547      General Sessions of the Legislature.
             548          Section 11. Section 26-47-103 is amended to read:
             549           26-47-103. Department to award grants for assistance to persons with bleeding
             550      disorders.
             551          (1) For purposes of this section:
             552          (a) "Hemophilia services" means a program for medical care, including the costs of


             553      blood transfusions, and the use of blood derivatives and blood clotting factors.
             554          (b) "Person with a bleeding disorder" means a person:
             555          (i) who is medically diagnosed with hemophilia or a bleeding disorder;
             556          (ii) who is not eligible for Medicaid or the Children's Health Insurance Program; and
             557          (iii) who has either:
             558          (A) insurance coverage that excludes coverage for hemophilia services;
             559          (B) exceeded the person's insurance plan's annual maximum benefits;
             560          (C) exceeded the person's annual or lifetime maximum benefits payable under Title
             561      31A, Chapter 29, Comprehensive Health Insurance Pool Act; or
             562          (D) insurance coverage available under either private health insurance, Title 31A,
             563      Chapter 29, Comprehensive Health Insurance Pool Act, Utah mini COBRA coverage under
             564      Section 31A-22-722 , or federal COBRA coverage, but the premiums for that coverage are
             565      greater than a percentage of the person's annual adjusted gross income as established by the
             566      department by administrative rule.
             567          (2) (a) Within appropriations specified by the Legislature for this purpose, the
             568      department shall make grants to public and nonprofit entities who assist persons with bleeding
             569      disorders with the cost of obtaining hemophilia services or the cost of insurance premiums for
             570      coverage of hemophilia services.
             571          (b) Applicants for grants under this section:
             572          (i) shall be submitted to the department in writing; and
             573          (ii) shall comply with Subsection (3).
             574          (3) Applications for grants under this section shall include:
             575          (a) a statement of specific, measurable objectives, and the methods to be used to assess
             576      the achievement of those objectives;
             577          (b) a description of the personnel responsible for carrying out the activities of the grant
             578      along with a statement justifying the use of any grant funds for the personnel;
             579          (c) letters and other forms of evidence showing that efforts have been made to secure
             580      financial and professional assistance and support for the services to be provided under the
             581      grant;
             582          (d) a list of services to be provided by the applicant;
             583          (e) the schedule of fees to be charged by the applicant; and


             584          (f) other provisions as determined by the department.
             585          (4) The department may accept grants, gifts, and donations of money or property for
             586      use by the grant program.
             587          (5) (a) The department shall establish rules in accordance with Title 63G, Chapter 3,
             588      Utah Administrative Rulemaking Act, governing the application form, process, and criteria it
             589      will use in awarding grants under this section.
             590          (b) The department shall submit an annual report on the implementation of the grant
             591      program:
             592          (i) by no later than November 1; and
             593          (ii) to the Health and Human Services Interim Committee and the [Health and Human]
             594      Social Services Appropriations Subcommittee.
             595          Section 12. Section 26-50-202 is amended to read:
             596           26-50-202. Traumatic Brain Injury Advisory Committee -- Membership -- Time
             597      limit.
             598          (1) On or after July 1 of each year, the executive director may create a Traumatic Brain
             599      Injury Advisory Committee of not more than nine members.
             600          (2) The committee shall be composed of members of the community who are familiar
             601      with traumatic brain injury, its causes, diagnosis, treatment, rehabilitation, and support
             602      services, including:
             603          (a) persons with a traumatic brain injury;
             604          (b) family members of a person with a traumatic brain injury;
             605          (c) representatives of an association which advocates for persons with traumatic brain
             606      injuries;
             607          (d) specialists in a profession that works with brain injury patients; and
             608          (e) department representatives.
             609          (3) The department shall provide staff support to the committee.
             610          (4) (a) If a vacancy occurs in the committee membership for any reason, a replacement
             611      may be appointed for the unexpired term.
             612          (b) The committee shall elect a chairperson from the membership.
             613          (c) A majority of the committee constitutes a quorum at any meeting, and, if a quorum
             614      exists, the action of the majority of members present shall be the action of the committee.


             615          (d) The committee may adopt bylaws governing the committee's activities.
             616          (e) A committee member may be removed by the executive director:
             617          (i) if the member is unable or unwilling to carry out the member's assigned
             618      responsibilities; or
             619          (ii) for good cause.
             620          (5) The committee shall comply with the procedures and requirements of:
             621          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             622          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             623          (6) A member may not receive compensation or benefits for the member's service, but,
             624      at the executive director's discretion, may receive per diem and travel expenses in accordance
             625      with:
             626          (a) Section 63A-3-106 ;
             627          (b) Section 63A-3-107 ; and
             628          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             629      63A-3-107 .
             630          (7) Not later than November 30 of each year the committee shall provide a written
             631      report summarizing the activities of the committee to:
             632          (a) the executive director of the department;
             633          (b) the Health and Human Services Interim Committee; and
             634          (c) the [Health and Human] Social Services Appropriations Subcommittee.
             635          (8) The committee shall cease to exist on December 31 of each year, unless the
             636      executive director determines it necessary to continue.
             637          Section 13. Section 26-52-202 is amended to read:
             638           26-52-202. Autism Treatment Account Advisory Committee -- Membership --
             639      Time limit.
             640          (1) (a) There is created an Autism Treatment Account Advisory Committee consisting
             641      of five members appointed by the governor to two-year terms of office as follows:
             642          (i) one person holding a doctorate degree who has experience in treating persons with
             643      an autism spectrum disorder;
             644          (ii) one person who is a physician licensed under Title 58, Chapter 67, Utah Medical
             645      Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act, who has


             646      completed a residency program in pediatrics;
             647          (iii) one person who is employed in the Department of Health; and
             648          (iv) two persons from the community who are familiar with autism spectrum disorders
             649      and their effects, diagnosis, treatment, rehabilitation, and support needs, including:
             650          (A) family members of a person with an autism spectrum disorder;
             651          (B) representatives of an association which advocates for persons with an autism
             652      spectrum disorder; and
             653          (C) specialists or professionals who work with persons with autism spectrum disorders.
             654          (b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the
             655      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             656      committee members are staggered so that approximately half of the committee is appointed
             657      every year.
             658          (c) If a vacancy occurs in the committee membership for any reason, a replacement
             659      may be appointed for the unexpired term.
             660          (2) The department shall provide staff support to the committee.
             661          (3) (a) The committee shall elect a chair from the membership on an annual basis.
             662          (b) A majority of the committee constitutes a quorum at any meeting, and, if a quorum
             663      exists, the action of the majority of members present shall be the action of the committee.
             664          (c) The executive director may remove a committee member:
             665          (i) if the member is unable or unwilling to carry out the member's assigned
             666      responsibilities; or
             667          (ii) for good cause.
             668          (4) The committee may, in accordance with Title 63G, Chapter 3, Utah Administrative
             669      Rulemaking Act, make rules governing the committee's activities, which rules shall:
             670          (a) comply with the requirements of this title; and
             671          (b) include:
             672          (i) qualification criteria and procedures for selecting service and treatment providers
             673      that receive disbursements from the account, which criteria shall give additional consideration
             674      to providers that are willing to use low interest loans when providing services to individuals;
             675      and
             676          (ii) provisions to address and avoid conflicts of interest that may arise in relation to:


             677          (A) the committee's selection of providers and persons that receive referrals,
             678      disbursements, or assistance from the account; and
             679          (B) other matters that may constitute a conflict of interest.
             680          (5) The committee shall meet as necessary to carry out its duties and shall meet upon a
             681      call of the committee chair or a call of a majority of the committee members, but no more than
             682      four times per year.
             683          (6) The committee shall comply with the procedures and requirements of:
             684          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             685          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             686          (7) Committee members shall receive no compensation or per diem allowance for their
             687      services.
             688          (8) Not later than November 30 of each year, the committee shall provide a written
             689      report summarizing the activities of the committee to:
             690          (a) the executive director of the department;
             691          (b) the Health and Human Services Interim Committee; and
             692          (c) the [Health and Human] Social Services Appropriations Subcommittee.
             693          Section 14. Section 31A-29-113.5 is amended to read:
             694           31A-29-113.5. Pilot Program for Chronic Disease and Pharmaceutical
             695      Management of Bleeding Disorders.
             696          (1) Beginning July 1, 2005, and ending on July 1, 2010, the pool policy shall include a
             697      pilot program for hemophilia and bleeding disorders in accordance with this section.
             698          (2) In accordance with this Subsection (2), the pool's pilot program shall:
             699          (a) permit enrollees in the pool who have hemophilia or a bleeding disorder to
             700      participate in a pharmaceutical program for people with hemophilia and bleeding disorders
             701      administered by an entity that is qualified as a federal 340B Drug Pricing Program of the Public
             702      Health Service Act, enacted in Public Law 102-585, the Veterans Health Care Act of 1992;
             703          (b) pay the eligible medical expenses for the enrollee's participation in the pilot
             704      program subject to all applicable plan benefits and limitations; and
             705          (c) may not impose cost containment measures on an enrollee who participates in the
             706      pilot program greater than the cost containment measures imposed on other enrollees under the
             707      provisions of Subsection 31A-29-113 (6).


             708          (3) (a) The pool may establish the pilot program through the best means available for
             709      obtaining the lowest drug discount pricing, including administering the pilot program through
             710      the Department of Health's 340B Medicaid drug discount program or the Ryan White HIV drug
             711      discount program.
             712          (b) The Department of Health shall assist the pool with administering the pilot
             713      program, including assistance in processing claims for the drug discount and chronic disease
             714      management services.
             715          (4) (a) The board shall report to the commissioner and to the Health and Human
             716      Services Interim Committee prior to October 30, 2010 regarding the claims experience and
             717      pharmaceutical costs under the pilot program.
             718          (b) The board may discontinue the pilot program created in this section prior to July 1,
             719      2010, if prior to discontinuing the pilot program:
             720          (i) the board reports on the need to discontinue the pilot program to the Health and
             721      Human Services Interim Committee and the [Commerce and Revenue] Business, Economic
             722      Development and Labor Appropriations Subcommittee; and
             723          (ii) either:
             724          (A) the commissioner and the board determine that the requirements of the pilot
             725      program jeopardize the actuarial soundness of the pool; or
             726          (B) the entity that is qualified as a 340B Drug Pricing Program is disqualified by
             727      federal law from providing 340B drug pricing discounts to enrollees in the pool.
             728          Section 15. Section 35A-3-302 is amended to read:
             729           35A-3-302. Eligibility requirements.
             730          (1) The program of cash assistance provided under this part is known as the Family
             731      Employment Program.
             732          (2) (a) The division shall submit a state plan to the Secretary of the United States
             733      Department of Health and Human Services to obtain federal funding under the Temporary
             734      Assistance for Needy Families Block Grant.
             735          (b) The division shall make the plan consistent with this part and federal law.
             736          (c) If a discrepancy arises between a provision of the state plan and this part, this part
             737      supersedes the provision in the state plan.
             738          (3) The services and supports under this part are for both one-parent and two-parent


             739      families.
             740          (4) To be eligible for cash assistance under this part, a family shall:
             741          (a) have at least one minor dependent child; or
             742          (b) have a parent who is in the third trimester of a pregnancy.
             743          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             744      department shall make rules for eligibility and the amount of cash assistance a family is eligible
             745      to receive under this part based on:
             746          (a) family size;
             747          (b) family income;
             748          (c) income disregards; and
             749          (d) other relevant factors.
             750          (6) The division shall disregard money on deposit in an Individual Development
             751      Account established under Section 35A-3-312 in determining eligibility.
             752          (7) The department shall provide for an appeal of a determination of eligibility in
             753      accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             754          (8) (a) The department shall make a report to either the Legislature's Executive
             755      Appropriations Committee or the [Commerce and Workforce Services Appropriations
             756      Subcommittee] Social Services Appropriations Subcommittee on any proposed rule change
             757      made under Subsection (5) that would modify the eligibility requirements or the amount of
             758      cash assistance a family would be eligible to receive.
             759          (b) The department shall submit the report prior to implementing the proposed rule
             760      change and the report shall include:
             761          (i) a description of the department's current practice or policy that it is proposing to
             762      change;
             763          (ii) an explanation of why the department is proposing the change;
             764          (iii) the effect of an increase or decrease in cash benefits on families; and
             765          (iv) the fiscal impact of the proposed change.
             766          (c) The department may use the Notice of Proposed Rule Amendment form filed with
             767      the Division of Administrative Rules as its report so long as the notice contains all the
             768      information required under Subsection (8)(b).
             769          Section 16. Section 36-23-106 is amended to read:


             770           36-23-106. Duties -- Reporting.
             771          (1) The committee shall:
             772          (a) conduct a sunrise review in accordance with Section 36-23-107 for all applications
             773      submitted in accordance with Section 36-23-105 ;
             774          (b) conduct a sunset review for an occupational or professional license classification
             775      that is referred to the committee by any other legislative committee by applying:
             776          (i) the criteria in Section 36-23-107 ;
             777          (ii) the criteria in Title 63I, Chapter 1, Legislative Oversight and Sunset Act; and
             778          (iii) any other appropriate criteria; and
             779          (c) submit a written report by no later than December 31 of each calendar year to:
             780          (i) the speaker of the House of Representatives;
             781          (ii) the president of the Senate;
             782          (iii) the chair of the House Rules Committee;
             783          (iv) the chair of the Senate Rules Committee; and
             784          (v) the chairs of the [Commerce and Workforce Services] Business, Economic
             785      Development, and Labor Appropriations Subcommittee.
             786          (2) The written report required by Subsection (1)(c) shall include:
             787          (a) all findings and recommendations made by the committee under Subsection (1) or
             788      (3) in that calendar year; and
             789          (b) a summary report for each sunrise review conducted by the committee stating:
             790          (i) whether the sunrise review was conducted under Subsection (1) or (3);
             791          (ii) whether or not the sunrise review included a review of specific proposed statutory
             792      language;
             793          (iii) any action taken by the committee as a result of the sunrise review; and
             794          (iv) the number of legislative members that voted in favor of the action described in
             795      Subsection (2)(b)(iii).
             796          (3) The committee may:
             797          (a) conduct a sunrise review of any proposal to newly regulate an occupation or
             798      profession;
             799          (b) conduct any other review referred to it by the Legislature, the Legislative
             800      Management Committee, or other legislative committee; or


             801          (c) conduct any other study related to regulation of an occupation or profession under
             802      Title 58, Occupations and Professions.
             803          Section 17. Section 51-9-201 is amended to read:
             804           51-9-201. Creation of Tobacco Settlement Restricted Account.
             805          (1) There is created within the General Fund a restricted account known as the
             806      "Tobacco Settlement Restricted Account."
             807          (2) The account shall earn interest.
             808          (3) The account shall consist of:
             809          (a) until July 1, 2003, 50% of all funds of every kind that are received by the state that
             810      are related to the settlement agreement that the state entered into with leading tobacco
             811      manufacturers on November 23, 1998;
             812          (b) on and after July 1, 2003 and until July 1, 2004, 80% of all funds of every kind that
             813      are received by the state that are related to the settlement agreement that the state entered into
             814      with leading tobacco manufacturers on November 23, 1998;
             815          (c) on and after July 1, 2004 and until July 1, 2005, 70% of all funds of every kind that
             816      are received by the state that are related to the settlement agreement that the state entered into
             817      with leading tobacco manufacturers on November 23, 1998;
             818          (d) on and after July 1, 2005 and until July 1, 2007, 75% of all funds of every kind that
             819      are received by the state that are related to the settlement agreement that the state entered into
             820      with leading tobacco manufacturers on November 23, 1998;
             821          (e) on and after July 1, 2007, 60% of all funds of every kind that are received by the
             822      state that are related to the settlement agreement that the state entered into with leading tobacco
             823      manufacturers on November 23, 1998; and
             824          (f) interest earned on the account.
             825          (4) To the extent that funds will be available for appropriation in a given fiscal year,
             826      those funds shall be appropriated from the account in the following order:
             827          (a) $10,452,900 to the Department of Health for the Children's Health Insurance
             828      Program created in Section 26-40-103 and for restoration of dental benefits in the Children's
             829      Health Insurance Program;
             830          (b) $3,847,100 to the Department of Health for alcohol, tobacco, and other drug
             831      prevention, reduction, cessation, and control programs that promote unified messages and


             832      make use of media outlets, including radio, newspaper, billboards, and television, and with a
             833      preference in funding given to tobacco-related programs;
             834          (c) $193,700 to the Administrative Office of the Courts and $2,325,400 to the
             835      Department of Human Services for the statewide expansion of the drug court program;
             836          (d) $4,000,000 to the State Board of Regents for the University of Utah Health
             837      Sciences Center to benefit the health and well-being of Utah citizens through in-state research,
             838      treatment, and educational activities; and
             839          (e) any remaining funds as directed by the Legislature through appropriation.
             840          (5) (a) If tobacco funds in dispute for attorney fees are received by the state, those
             841      funds shall be divided and deposited in accordance with Subsection (3) and Section 51-9-202 .
             842          (b) The amount appropriated from the Tobacco Settlement Restricted Account to the
             843      Department of Health for alcohol, tobacco, and other drug programs described in Subsection
             844      (4)(b), including the funding preference for tobacco-related programs, shall be increased by up
             845      to $2,000,000 in a given fiscal year to the extent that funds in dispute for attorney fees are
             846      available to the state for appropriation from the account.
             847          (6) Each state agency identified in Subsection (4) shall provide an annual report on the
             848      program and activities funded under Subsection (4) to:
             849          (a) the Health and Human Services Interim Committee no later than September 1; and
             850          (b) the [Health and Human] Social Services Appropriations Subcommittee.
             851          Section 18. Section 51-9-203 is amended to read:
             852           51-9-203. Requirements for tobacco programs.
             853          (1) To be eligible to receive funding under this part for a tobacco prevention, reduction,
             854      cessation, or control program, an organization, whether private, governmental, or
             855      quasi-governmental, shall:
             856          (a) submit a request to the Department of Health containing the following information:
             857          (i) for media campaigns to prevent or reduce smoking, the request shall demonstrate
             858      sound management and periodic evaluation of the campaign's relevance to the intended
             859      audience, particularly in campaigns directed toward youth, including audience awareness of the
             860      campaign and recollection of the main message;
             861          (ii) for school-based education programs to prevent and reduce youth smoking, the
             862      request shall describe how the program will be effective in preventing and reducing youth


             863      smoking;
             864          (iii) for community-based programs to prevent and reduce smoking, the request shall
             865      demonstrate that the proposed program:
             866          (A) has a comprehensive strategy with a clear mission and goals;
             867          (B) provides for committed, caring, and professional leadership; and
             868          (C) if directed toward youth:
             869          (I) offers youth-centered activities in youth accessible facilities;
             870          (II) is culturally sensitive, inclusive, and diverse;
             871          (III) involves youth in the planning, delivery, and evaluation of services that affect
             872      them; and
             873          (IV) offers a positive focus that is inclusive of all youth; and
             874          (iv) for enforcement, control, and compliance program, the request shall demonstrate
             875      that the proposed program can reasonably be expected to reduce the extent to which tobacco
             876      products are available to individuals under the age of 19;
             877          (b) agree, by contract, to file an annual written report with the Department of Health.
             878      The report shall contain the following:
             879          (i) the amount funded;
             880          (ii) the amount expended;
             881          (iii) a description of the program or campaign and the number of adults and youth who
             882      participated;
             883          (iv) specific elements of the program or campaign meeting the applicable criteria set
             884      forth in Subsection (1)(a); and
             885          (v) a statement concerning the success and effectiveness of the program or campaign;
             886          (c) agree, by contract, to not use any funds received under this part directly or
             887      indirectly, to:
             888          (i) engage in any lobbying or political activity, including the support of, or opposition
             889      to, candidates, ballot questions, referenda, or similar activities; or
             890          (ii) engage in litigation with any tobacco manufacturer, retailer, or distributor, except to
             891      enforce:
             892          (A) the provisions of the Master Settlement Agreement;
             893          (B) Title 26, Chapter 38, Utah Clean Air Act;


             894          (C) Title 26, Chapter 42, Civil Penalties for Tobacco Sales to Underaged Persons; and
             895          (D) Title 77, Chapter 39, Sale of Tobacco and Alcohol to Underaged Persons; and
             896          (d) agree, by contract, to repay the funds provided under this part if the organization:
             897          (i) fails to file a timely report as required by Subsection (1)(b); or
             898          (ii) uses any portion of the funds in violation of Subsection (1)(c).
             899          (2) The Department of Health shall review and evaluate the success and effectiveness
             900      of any program or campaign that receives funding pursuant to a request submitted under
             901      Subsection (1). The review and evaluation:
             902          (a) shall include a comparison of annual smoking trends;
             903          (b) may be conducted by an independent evaluator; and
             904          (c) may be paid for by funds appropriated from the account for that purpose.
             905          (3) The Department of Health shall annually report to the [Health and Human] Social
             906      Services Appropriations Subcommittee on the reviews conducted pursuant to Subsection (2).
             907          (4) An organization that fails to comply with the contract requirements set forth in
             908      Subsection (1) shall:
             909          (a) repay the state as provided in Subsection (1)(d); and
             910          (b) be disqualified from receiving funds under this part in any subsequent fiscal year.
             911          (5) The attorney general shall be responsible for recovering funds that are required to
             912      be repaid to the state under this section.
             913          (6) Nothing in this section may be construed as applying to funds that are not
             914      appropriated under this part.
             915          Section 19. Section 53B-20-104 is amended to read:
             916           53B-20-104. Buildings and facilities -- Board approval of construction and
             917      purchases -- Rules.
             918          (1) The board shall approve all new construction, repair, or purchase of educational
             919      and general buildings and facilities financed from any source at all institutions subject to the
             920      jurisdiction of the board.
             921          (2) An institution may not submit plans or specifications to the State Building Board for
             922      the construction or alteration of buildings, structures, or facilities or for the purchases of
             923      equipment or fixtures for the structure without the authorization of the board.
             924          (3) The board shall make rules establishing the conditions under which facilities may


             925      be eligible to request state funds for operations and maintenance.
             926          (4) Before approving the purchase of a building, the board shall:
             927          (a) determine whether or not the building will be eligible for state funds for operations
             928      and maintenance by applying the rules adopted under Subsection (3); and
             929          (b) if the annual request for state funding for operations and maintenance will be
             930      greater than $100,000, notify the speaker of the House, the president of the Senate, and the
             931      cochairs of the [Capital Facilities and Administrative Services] Infrastructure and General
             932      Government subcommittee of the Legislature's Joint Appropriation Committee.
             933          Section 20. Section 59-21-2 is amended to read:
             934           59-21-2. Mineral Bonus Account created -- Contents -- Use of Mineral Bonus
             935      Account money -- Mineral Lease Account created -- Contents -- Appropriation of money
             936      from Mineral Lease Account.
             937          (1) (a) There is created a restricted account within the General Fund known as the
             938      "Mineral Bonus Account."
             939          (b) The Mineral Bonus Account consists of federal mineral lease bonus payments
             940      deposited pursuant to Subsection 59-21-1 (3).
             941          (c) The Legislature shall make appropriations from the Mineral Bonus Account in
             942      accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.
             943          (d) The state treasurer shall:
             944          (i) invest the money in the Mineral Bonus Account by following the procedures and
             945      requirements of Title 51, Chapter 7, State Money Management Act; and
             946          (ii) deposit all interest or other earnings derived from the account into the Mineral
             947      Bonus Account.
             948          (2) (a) There is created a restricted account within the General Fund known as the
             949      "Mineral Lease Account."
             950          (b) The Mineral Lease Account consists of federal mineral lease money deposited
             951      pursuant to Subsection 59-21-1 (1).
             952          (c) The Legislature shall make appropriations from the Mineral Lease Account as
             953      provided in Subsection 59-21-1 (1) and this Subsection (2).
             954          (d) The Legislature shall annually appropriate 32.5% of all deposits made to the
             955      Mineral Lease Account to the Permanent Community Impact Fund established by Section


             956      9-4-303 .
             957          (e) The Legislature shall annually appropriate 2.25% of all deposits made to the
             958      Mineral Lease Account to the State Board of Education, to be used for education research and
             959      experimentation in the use of staff and facilities designed to improve the quality of education in
             960      Utah.
             961          (f) The Legislature shall annually appropriate 2.25% of all deposits made to the
             962      Mineral Lease Account to the Utah Geological Survey, to be used for activities carried on by
             963      the survey having as a purpose the development and exploitation of natural resources in the
             964      state.
             965          (g) The Legislature shall annually appropriate 2.25% of all deposits made to the
             966      Mineral Lease Account to the Water Research Laboratory at Utah State University, to be used
             967      for activities carried on by the laboratory having as a purpose the development and exploitation
             968      of water resources in the state.
             969          (h) (i) The Legislature shall annually appropriate to the Department of Transportation
             970      40% of all deposits made to the Mineral Lease Account to be distributed as provided in
             971      Subsection (2)(h)(ii) to:
             972          (A) counties;
             973          (B) special service districts established:
             974          (I) by counties;
             975          (II) under Title 17D, Chapter 1, Special Service District Act; and
             976          (III) for the purpose of constructing, repairing, or maintaining roads; or
             977          (C) special service districts established:
             978          (I) by counties;
             979          (II) under Title 17D, Chapter 1, Special Service District Act; and
             980          (III) for other purposes authorized by statute.
             981          (ii) The Department of Transportation shall allocate the funds specified in Subsection
             982      (2)(h)(i):
             983          (A) in amounts proportionate to the amount of mineral lease money generated by each
             984      county; and
             985          (B) to a county or special service district established by a county under Title 17D,
             986      Chapter 1, Special Service District Act, as determined by the county legislative body.


             987          (i) (i) The Legislature shall annually appropriate 5% of all deposits made to the
             988      Mineral Lease Account to the Department of Community and Culture to be distributed to:
             989          (A) special service districts established:
             990          (I) by counties;
             991          (II) under Title 17D, Chapter 1, Special Service District Act; and
             992          (III) for the purpose of constructing, repairing, or maintaining roads; or
             993          (B) special service districts established:
             994          (I) by counties;
             995          (II) under Title 17D, Chapter 1, Special Service District Act; and
             996          (III) for other purposes authorized by statute.
             997          (ii) The Department of Community and Culture may distribute the amounts described
             998      in Subsection (2)(i)(i) only to special service districts established under Title 17D, Chapter 1,
             999      Special Service District Act, by counties:
             1000          (A) of the third, fourth, fifth, or sixth class;
             1001          (B) in which 4.5% or less of the mineral lease money within the state is generated; and
             1002          (C) that are significantly socially or economically impacted as provided in Subsection
             1003      (2)(i)(iii) by the development of minerals under the Mineral Lands Leasing Act, 30 U.S.C. Sec.
             1004      181 et seq.
             1005          (iii) The significant social or economic impact required under Subsection (2)(i)(ii)(C)
             1006      shall be as a result of:
             1007          (A) the transportation within the county of hydrocarbons, including solid hydrocarbons
             1008      as defined in Section 59-5-101 ;
             1009          (B) the employment of persons residing within the county in hydrocarbon extraction,
             1010      including the extraction of solid hydrocarbons as defined in Section 59-5-101 ; or
             1011          (C) a combination of Subsections (2)(i)(iii)(A) and (B).
             1012          (iv) For purposes of distributing the appropriations under this Subsection (2)(i) to
             1013      special service districts established by counties under Title 17D, Chapter 1, Special Service
             1014      District Act, the Department of Community and Culture shall:
             1015          (A) (I) allocate 50% of the appropriations equally among the counties meeting the
             1016      requirements of Subsections (2)(i)(ii) and (iii); and
             1017          (II) allocate 50% of the appropriations based on the ratio that the population of each


             1018      county meeting the requirements of Subsections (2)(i)(ii) and (iii) bears to the total population
             1019      of all of the counties meeting the requirements of Subsections (2)(i)(ii) and (iii); and
             1020          (B) after making the allocations described in Subsection (2)(i)(iv)(A), distribute the
             1021      allocated revenues to special service districts established by the counties under Title 17D,
             1022      Chapter 1, Special Service District Act, as determined by the executive director of the
             1023      Department of Community and Culture after consulting with the county legislative bodies of
             1024      the counties meeting the requirements of Subsections (2)(i)(ii) and (iii).
             1025          (v) The executive director of the Department of Community and Culture:
             1026          (A) shall determine whether a county meets the requirements of Subsections (2)(i)(ii)
             1027      and (iii);
             1028          (B) shall distribute the appropriations under Subsection (2)(i)(i) to special service
             1029      districts established by counties under Title 17D, Chapter 1, Special Service District Act, that
             1030      meet the requirements of Subsections (2)(i)(ii) and (iii); and
             1031          (C) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1032      may make rules:
             1033          (I) providing a procedure for making the distributions under this Subsection (2)(i) to
             1034      special service districts; and
             1035          (II) defining the term "population" for purposes of Subsection (2)(i)(iv).
             1036          (j) (i) The Legislature shall annually make the following appropriations from the
             1037      Mineral Lease Account:
             1038          (A) an amount equal to 52 cents multiplied by the number of acres of school or
             1039      institutional trust lands, lands owned by the Division of Parks and Recreation, and lands owned
             1040      by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each
             1041      county in which those lands are located;
             1042          (B) to each county in which school or institutional trust lands are transferred to the
             1043      federal government after December 31, 1992, an amount equal to the number of transferred
             1044      acres in the county multiplied by a payment per acre equal to the difference between 52 cents
             1045      per acre and the per acre payment made to that county in the most recent payment under the
             1046      federal payment in lieu of taxes program, 31 U.S.C. Sec. 6901 et seq., unless the federal
             1047      payment was equal to or exceeded the 52 cents per acre, in which case a payment under this
             1048      Subsection (2)(j)(i)(B) may not be made for the transferred lands;


             1049          (C) to each county in which federal lands, which are entitlement lands under the federal
             1050      in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to
             1051      the number of transferred acres in the county multiplied by a payment per acre equal to the
             1052      difference between the most recent per acre payment made under the federal payment in lieu of
             1053      taxes program and 52 cents per acre, unless the federal payment was equal to or less than 52
             1054      cents per acre, in which case a payment under this Subsection (2)(j)(i)(C) may not be made for
             1055      the transferred land; and
             1056          (D) to a county of the fifth or sixth class, an amount equal to the product of:
             1057          (I) $1,000; and
             1058          (II) the number of residences described in Subsection (2)(j)(iv) that are located within
             1059      the county.
             1060          (ii) A county receiving money under Subsection (2)(j)(i) may, as determined by the
             1061      county legislative body, distribute the money or a portion of the money to:
             1062          (A) special service districts established by the county under Title 17D, Chapter 1,
             1063      Special Service District Act;
             1064          (B) school districts; or
             1065          (C) public institutions of higher education.
             1066          (iii) (A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the
             1067      Division of Finance shall increase or decrease the amounts per acre provided for in Subsections
             1068      (2)(j)(i)(A) through (C) by the average annual change in the Consumer Price Index for all urban
             1069      consumers published by the Department of Labor.
             1070          (B) For fiscal years beginning on or after fiscal year 2001-02, the Division of Finance
             1071      shall increase or decrease the amount described in Subsection (2)(j)(i)(D)(I) by the average
             1072      annual change in the Consumer Price Index for all urban consumers published by the
             1073      Department of Labor.
             1074          (iv) Residences for purposes of Subsection (2)(j)(i)(D)(II) are residences that are:
             1075          (A) owned by:
             1076          (I) the Division of Parks and Recreation; or
             1077          (II) the Division of Wildlife Resources;
             1078          (B) located on lands that are owned by:
             1079          (I) the Division of Parks and Recreation; or


             1080          (II) the Division of Wildlife Resources; and
             1081          (C) are not subject to taxation under:
             1082          (I) Chapter 2, Property Tax Act; or
             1083          (II) Chapter 4, Privilege Tax.
             1084          (k) The Legislature shall annually appropriate to the Permanent Community Impact
             1085      Fund all deposits remaining in the Mineral Lease Account after making the appropriations
             1086      provided for in Subsections (2)(d) through (j).
             1087          (3) (a) Each agency, board, institution of higher education, and political subdivision
             1088      receiving money under this chapter shall provide the Legislature, through the Office of the
             1089      Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual
             1090      basis.
             1091          (b) The accounting required under Subsection (3)(a) shall:
             1092          (i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
             1093      current fiscal year, and planned expenditures for the following fiscal year; and
             1094          (ii) be reviewed by the Business, Economic Development [and Human Resources
             1095      Appropriation], and Labor Appropriations Subcommittee as part of its normal budgetary
             1096      process under Title 63J, Chapter 1, Budgetary Procedures Act.
             1097          Section 21. Section 62A-3-110 is amended to read:
             1098           62A-3-110. "Out and About" Homebound Transportation Assistance Fund.
             1099          (1) (a) There is created a restricted special revenue fund known as the "Out and About"
             1100      Homebound Transportation Assistance Fund.
             1101          (b) The "Out and About" Homebound Transportation Assistance Fund shall consist of:
             1102          (i) private contributions;
             1103          (ii) donations or grants from public or private entities;
             1104          (iii) voluntary donations collected under Section 53-3-214.8 ; and
             1105          (iv) interest and earnings on account money.
             1106          (c) The cost of administering the "Out and About" Homebound Transportation
             1107      Assistance Fund shall be paid from money in the fund.
             1108          (2) The Division of Aging and Adult Services in the Department of Human Services
             1109      shall:
             1110          (a) administer the funds contained in the "Out and About" Homebound Transportation


             1111      Assistance Fund;
             1112          (b) select qualified organizations and distribute the funds in the "Out and About"
             1113      Homebound Transportation Assistance Fund in accordance with Subsection (3); and
             1114          (c) make an annual report on the "Out and About" Homebound Transportation
             1115      Assistance Fund to the [Health and Human] Social Services Appropriations Subcommittee.
             1116          (3) (a) The division may distribute the funds in the "Out and About" Homebound
             1117      Transportation Assistance Fund to a selected organization that provides public transportation to
             1118      aging persons, high risk adults, or people with disabilities.
             1119          (b) An organization that provides public transportation to aging persons, high risk
             1120      adults, or people with disabilities may apply to the Division of Aging and Adult Services, in a
             1121      manner prescribed by the division, to receive all or part of the money contained in the "Out and
             1122      About" Homebound Transportation Assistance Fund.
             1123          Section 22. Section 62A-4a-117 is amended to read:
             1124           62A-4a-117. Performance monitoring system -- Annual report.
             1125          (1) As used in this section:
             1126          (a) "Committee" means the state qualitative improvement committee, established by
             1127      the division to provide community and professional input on the performance of the division.
             1128          (b) "Performance indicators" means actual performance in a program, activity, or other
             1129      function for which there is a performance standard.
             1130          (c) (i) "Performance standards" means the targeted or expected level of performance of
             1131      each area in the child welfare system, including:
             1132          (A) child protection services;
             1133          (B) adoption;
             1134          (C) foster care; and
             1135          (D) other substitute care.
             1136          (ii) "Performance standards" includes the performance goals and measures in effect in
             1137      2008 that the division was subject to under federal court oversight, as amended pursuant to
             1138      Subsection (2), including:
             1139          (A) the qualitative case review; and
             1140          (B) the case process review.
             1141          (2) (a) The division may not amend the performance standards unless the amendment


             1142      is:
             1143          (i) necessary and proper for the effective administration of the division; or
             1144          (ii) necessary to comply with, or implement changes in, the law.
             1145          (b) Before amending the performance standards, the division shall provide written
             1146      notice of the proposed amendment to the committee.
             1147          (c) The notice described in Subsection (2)(b) shall include:
             1148          (i) the proposed amendment;
             1149          (ii) a summary of the reason for the proposed amendment; and
             1150          (iii) the proposed effective date of the amendment.
             1151          (d) Within 45 days after the day on which the division provides the notice described in
             1152      Subsection (2)(b) to the committee, the committee shall provide to the division written
             1153      comments on the proposed amendment.
             1154          (e) The division may not implement a proposed amendment to the performance
             1155      standards until the earlier of:
             1156          (i) seven days after the day on which the division receives the written comments
             1157      regarding the proposed change described in Subsection (2)(d); or
             1158          (ii) 52 days after the day on which the division provides the notice described in
             1159      Subsection (2)(b) to the committee.
             1160          (f) The division shall:
             1161          (i) give full, fair, and good faith consideration to all comments and objections received
             1162      from the committee;
             1163          (ii) notify the committee in writing of:
             1164          (A) the division's decision regarding the proposed amendment; and
             1165          (B) the reasons that support the decision;
             1166          (iii) include complete information on all amendments to the performance standards in
             1167      the report described in Subsection (4); and
             1168          (iv) post the changes on the division's website.
             1169          (3) The division shall maintain a performance monitoring system to regularly:
             1170          (a) collect information on performance indicators; and
             1171          (b) compare performance indicators to performance standards.
             1172          (4) Before January 1 each year the director shall submit a written report to the Child


             1173      Welfare Legislative Oversight Panel and the [Joint Health and Human] Social Services
             1174      Appropriations Subcommittee that includes:
             1175          (a) a comparison between the performance indicators for the prior fiscal year and the
             1176      performance standards;
             1177          (b) for each performance indicator that does not meet the performance standard:
             1178          (i) the reason the standard was not met;
             1179          (ii) the measures that need to be taken to meet the standard; and
             1180          (iii) the division's plan to comply with the standard for the current fiscal year;
             1181          (c) data on the extent to which new and experienced division employees have received
             1182      training pursuant to statute and division policy; and
             1183          (d) an analysis of the use and efficacy of in-home services, both before and after
             1184      removal of a child from the child's home.
             1185          Section 23. Section 62A-4a-207 is amended to read:
             1186           62A-4a-207. Legislative Oversight Panel -- Responsibilities.
             1187          (1) (a) There is created the Child Welfare Legislative Oversight Panel composed of the
             1188      following members:
             1189          (i) two members of the Senate, one from the majority party and one from the minority
             1190      party, appointed by the president of the Senate; and
             1191          (ii) three members of the House of Representatives, two from the majority party and
             1192      one from the minority party, appointed by the speaker of the House of Representatives.
             1193          (b) Members of the panel shall serve for two-year terms, or until their successors are
             1194      appointed.
             1195          (c) A vacancy exists whenever a member ceases to be a member of the Legislature, or
             1196      when a member resigns from the panel. Vacancies shall be filled by the appointing authority,
             1197      and the replacement shall fill the unexpired term.
             1198          (2) The president of the Senate shall designate one of the senators appointed to the
             1199      panel under Subsection (1) as the Senate chair of the panel. The speaker of the House of
             1200      Representatives shall designate one of the representatives appointed to the panel under
             1201      Subsection (1) as the House chair of the panel.
             1202          (3) The panel shall follow the interim committee rules established by the Legislature.
             1203          (4) The panel shall:


             1204          (a) examine and observe the process and execution of laws governing the child welfare
             1205      system by the executive branch and the judicial branch;
             1206          (b) upon request, receive testimony from the public, the juvenile court, and from all
             1207      state agencies involved with the child welfare system, including the division, other offices and
             1208      agencies within the department, the attorney general's office, the Office of Guardian Ad Litem,
             1209      and school districts;
             1210          (c) before October 1 of each year, receive a report from the judicial branch identifying
             1211      the cases not in compliance with the time limits established in the following sections, and the
             1212      reasons for noncompliance:
             1213          (i) Subsection 78A-6-306 (1)(a), regarding shelter hearings;
             1214          (ii) Section 78A-6-309 , regarding pretrial and adjudication hearings;
             1215          (iii) Section 78A-6-312 , regarding dispositional hearings and reunification services;
             1216      and
             1217          (iv) Section 78A-6-314 , regarding permanency hearings and petitions for termination;
             1218          (d) receive recommendations from, and make recommendations to the governor, the
             1219      Legislature, the attorney general, the division, the Office of Guardian Ad Litem, the juvenile
             1220      court, and the public;
             1221          (e) (i) receive reports from the executive branch and the judicial branch on budgetary
             1222      issues impacting the child welfare system; and
             1223          (ii) recommend, as the panel considers advisable, budgetary proposals to the [Health
             1224      and Human] Social Services Appropriations Subcommittee and the Executive Offices and
             1225      Criminal Justice Appropriations Subcommittee, which recommendation should be made before
             1226      December 1 of each year;
             1227          (f) study and recommend proposed changes to laws governing the child welfare
             1228      system;
             1229          (g) study actions the state can take to preserve, unify, and strengthen the child's family
             1230      ties whenever possible in the child's best interest, including recognizing the constitutional
             1231      rights and claims of parents whenever those family ties are severed or infringed;
             1232          (h) perform such other duties related to the oversight of the child welfare system as the
             1233      panel considers appropriate; and
             1234          (i) annually report the panel's findings and recommendations to the president of the


             1235      Senate, the speaker of the House of Representatives, the Health and Human Services Interim
             1236      Committee, and the Judiciary Interim Committee.
             1237          (5) (a) The panel has authority to review and discuss individual cases.
             1238          (b) When an individual case is discussed, the panel's meeting may be closed pursuant
             1239      to Title 52, Chapter 4, Open and Public Meetings Act.
             1240          (c) When discussing an individual case, the panel shall make reasonable efforts to
             1241      identify and consider the concerns of all parties to the case.
             1242          (6) (a) The panel has authority to make recommendations to the Legislature, the
             1243      governor, the Board of Juvenile Court Judges, the division, and any other statutorily created
             1244      entity related to the policies and procedures of the child welfare system. The panel does not
             1245      have authority to make recommendations to the court, the division, or any other public or
             1246      private entity regarding the disposition of any individual case.
             1247          (b) The panel may hold public hearings, as it considers advisable, in various locations
             1248      within the state in order to afford all interested persons an opportunity to appear and present
             1249      their views regarding the child welfare system in this state.
             1250          (7) (a) All records of the panel regarding individual cases shall be classified private,
             1251      and may be disclosed only in accordance with federal law and the provisions of Title 63G,
             1252      Chapter 2, Government Records Access and Management Act.
             1253          (b) The panel shall have access to all of the division's records, including those
             1254      regarding individual cases. In accordance with Title 63G, Chapter 2, Government Records
             1255      Access and Management Act, all documents and information received by the panel shall
             1256      maintain the same classification that was designated by the division.
             1257          (8) In order to accomplish its oversight functions, the panel has:
             1258          (a) all powers granted to legislative interim committees in Section 36-12-11 ; and
             1259          (b) legislative subpoena powers under Title 36, Chapter 14, Legislative Subpoena
             1260      Powers.
             1261          (9) Members of the panel shall receive salary and expenses in accordance with Section
             1262      36-2-2 .
             1263          (10) (a) The Office of Legislative Research and General Counsel shall provide staff
             1264      support to the panel.
             1265          (b) The panel is authorized to employ additional professional assistance and other staff


             1266      members as it considers necessary and appropriate.
             1267          Section 24. Section 62A-7-203 is amended to read:
             1268           62A-7-203. Detention -- Physical facilities.
             1269          The division may issue requests for proposals to allow for the private construction of
             1270      facilities suitable to meet the detention requirements of any county or group of counties,
             1271      subject to approval by the governor. The governor shall furnish an analysis of the benefits of
             1272      the proposals received to the [Capital Facilities and Administrative Services] Infrastructure and
             1273      General Government Appropriations Subcommittee for its review.
             1274          Section 25. Section 62A-15-103 is amended to read:
             1275           62A-15-103. Division -- Creation -- Responsibilities.
             1276          (1) There is created the Division of Substance Abuse and Mental Health within the
             1277      department, under the administration and general supervision of the executive director. The
             1278      division is the substance abuse authority and the mental health authority for this state.
             1279          (2) The division shall:
             1280          (a) (i) educate the general public regarding the nature and consequences of substance
             1281      abuse by promoting school and community-based prevention programs;
             1282          (ii) render support and assistance to public schools through approved school-based
             1283      substance abuse education programs aimed at prevention of substance abuse;
             1284          (iii) promote or establish programs for the prevention of substance abuse within the
             1285      community setting through community-based prevention programs;
             1286          (iv) cooperate and assist other organizations and private treatment centers for substance
             1287      abusers, by providing them with essential materials for furthering programs of prevention and
             1288      rehabilitation of actual and potential substance abusers; and
             1289          (v) promote or establish programs for education and certification of instructors to
             1290      educate persons convicted of driving under the influence of alcohol or drugs or driving with
             1291      any measurable controlled substance in the body;
             1292          (b) (i) collect and disseminate information pertaining to mental health;
             1293          (ii) provide direction over the state hospital including approval of its budget,
             1294      administrative policy, and coordination of services with local service plans;
             1295          (iii) promulgate rules in accordance with Title 63G, Chapter 3, Utah Administrative
             1296      Rulemaking Act, to educate families concerning mental illness and promote family


             1297      involvement, when appropriate, and with patient consent, in the treatment program of a family
             1298      member; and
             1299          (iv) promulgate rules in accordance with Title 63G, Chapter 3, Utah Administrative
             1300      Rulemaking Act, to direct that all individuals receiving services through local mental health
             1301      authorities or the Utah State Hospital be informed about and, if desired, provided assistance in
             1302      completion of a declaration for mental health treatment in accordance with Section
             1303      62A-15-1002 ;
             1304          (c) (i) consult and coordinate with local substance abuse authorities and local mental
             1305      health authorities regarding programs and services;
             1306          (ii) provide consultation and other assistance to public and private agencies and groups
             1307      working on substance abuse and mental health issues;
             1308          (iii) promote and establish cooperative relationships with courts, hospitals, clinics,
             1309      medical and social agencies, public health authorities, law enforcement agencies, education and
             1310      research organizations, and other related groups;
             1311          (iv) promote or conduct research on substance abuse and mental health issues, and
             1312      submit to the governor and the Legislature recommendations for changes in policy and
             1313      legislation;
             1314          (v) receive, distribute, and provide direction over public funds for substance abuse and
             1315      mental health services;
             1316          (vi) monitor and evaluate programs provided by local substance abuse authorities and
             1317      local mental health authorities;
             1318          (vii) examine expenditures of any local, state, and federal funds;
             1319          (viii) monitor the expenditure of public funds by:
             1320          (A) local substance abuse authorities;
             1321          (B) local mental health authorities; and
             1322          (C) in counties where they exist, the private contract provider that has an annual or
             1323      otherwise ongoing contract to provide comprehensive substance abuse or mental health
             1324      programs or services for the local substance abuse authority or local mental health authorities;
             1325          (ix) contract with local substance abuse authorities and local mental health authorities
             1326      to provide a comprehensive continuum of services in accordance with division policy, contract
             1327      provisions, and the local plan;


             1328          (x) contract with private and public entities for special statewide or nonclinical services
             1329      according to division rules;
             1330          (xi) review and approve each local substance abuse authority's plan and each local
             1331      mental health authority's plan in order to ensure:
             1332          (A) a statewide comprehensive continuum of substance abuse services;
             1333          (B) a statewide comprehensive continuum of mental health services; and
             1334          (C) appropriate expenditure of public funds;
             1335          (xii) review and make recommendations regarding each local substance abuse
             1336      authority's contract with its provider of substance abuse programs and services and each local
             1337      mental health authority's contract with its provider of mental health programs and services to
             1338      ensure compliance with state and federal law and policy;
             1339          (xiii) monitor and ensure compliance with division rules and contract requirements;
             1340      and
             1341          (xiv) withhold funds from local substance abuse authorities, local mental health
             1342      authorities, and public and private providers for contract noncompliance, failure to comply
             1343      with division directives regarding the use of public funds, or for misuse of public funds or
             1344      money;
             1345          (d) assure that the requirements of this part are met and applied uniformly by local
             1346      substance abuse authorities and local mental health authorities across the state;
             1347          (e) require each local substance abuse authority and each local mental health authority
             1348      to submit its plan to the division by May 1 of each year;
             1349          (f) conduct an annual program audit and review of each local substance abuse authority
             1350      in the state and its contract provider and each local mental health authority in the state and its
             1351      contract provider, including:
             1352          (i) a review and determination regarding whether:
             1353          (A) public funds allocated to local substance abuse authorities and local mental health
             1354      authorities are consistent with services rendered and outcomes reported by them or their
             1355      contract providers; and
             1356          (B) each local substance abuse authority and each local mental health authority is
             1357      exercising sufficient oversight and control over public funds allocated for substance abuse and
             1358      mental health programs and services; and


             1359          (ii) items determined by the division to be necessary and appropriate;
             1360          (g) by July 1 of each year, provide to the Health and Human Services Interim
             1361      Committee and the [Health and Human] Social Services Appropriations Subcommittee a
             1362      written report that includes:
             1363          (i) the annual audit and review;
             1364          (ii) the financial expenditures of each local substance abuse authority and its contract
             1365      provider and each local mental health authority and its contract provider;
             1366          (iii) the status of the compliance of each local authority and its contract provider with
             1367      its plan, state statutes, and the provisions of the contract awarded; and
             1368          (iv) whether audit guidelines established under Section 62A-15-110 and Subsection
             1369      67-3-1 (10) provide the division with sufficient criteria and assurances of appropriate
             1370      expenditures of public funds; and
             1371          (h) if requested by the Health and Human Services Interim Committee or the [Health
             1372      and Human] Social Services Appropriations Subcommittee, provide an oral report as
             1373      requested.
             1374          (3) (a) The division may refuse to contract with and may pursue its legal remedies
             1375      against any local substance abuse authority or local mental health authority that fails, or has
             1376      failed, to expend public funds in accordance with state law, division policy, contract
             1377      provisions, or directives issued in accordance with state law.
             1378          (b) The division may withhold funds from a local substance abuse authority or local
             1379      mental health authority if the authority's contract with its provider of substance abuse or mental
             1380      health programs or services fails to comply with state and federal law or policy.
             1381          (4) Before reissuing or renewing a contract with any local substance abuse authority or
             1382      local mental health authority, the division shall review and determine whether the local
             1383      substance abuse authority or local mental health authority is complying with its oversight and
             1384      management responsibilities described in Sections 17-43-201 , 17-43-203 , 17-43-303 , and
             1385      17-43-309 . Nothing in this Subsection (4) may be used as a defense to the responsibility and
             1386      liability described in Section 17-43-303 and to the responsibility and liability described in
             1387      Section 17-43-203 .
             1388          (5) In carrying out its duties and responsibilities, the division may not duplicate
             1389      treatment or educational facilities that exist in other divisions or departments of the state, but


             1390      shall work in conjunction with those divisions and departments in rendering the treatment or
             1391      educational services that those divisions and departments are competent and able to provide.
             1392          (6) (a) The division may accept in the name of and on behalf of the state donations,
             1393      gifts, devises, or bequests of real or personal property or services to be used as specified by the
             1394      donor.
             1395          (b) Those donations, gifts, devises, or bequests shall be used by the division in
             1396      performing its powers and duties. Any money so obtained shall be considered private funds
             1397      and shall be deposited into an interest-bearing restricted special revenue fund to be used by the
             1398      division for substance abuse or mental health services. The state treasurer may invest the fund
             1399      and all interest shall remain with the fund.
             1400          (7) The division shall annually review with each local substance abuse authority and
             1401      each local mental health authority the authority's statutory and contract responsibilities
             1402      regarding:
             1403          (a) the use of public funds;
             1404          (b) oversight responsibilities regarding public funds; and
             1405          (c) governance of substance abuse and mental health programs and services.
             1406          (8) The Legislature may refuse to appropriate funds to the division upon the division's
             1407      failure to comply with the provisions of this part.
             1408          (9) If a local substance abuse authority contacts the division under Subsection
             1409      17-43-201 (9) for assistance in providing treatment services to a pregnant woman or pregnant
             1410      minor, the division shall:
             1411          (a) refer the pregnant woman or pregnant minor to a treatment facility that has the
             1412      capacity to provide the treatment services; or
             1413          (b) otherwise ensure that treatment services are made available to the pregnant woman
             1414      or pregnant minor.
             1415          Section 26. Section 63A-5-104 is amended to read:
             1416           63A-5-104. Definitions -- Capital development and capital improvement process
             1417      -- Approval requirements -- Limitations on new projects -- Emergencies.
             1418          (1) As used in this section:
             1419          (a) "Capital developments" means a:
             1420          (i) remodeling, site, or utility project with a total cost of $2,500,000 or more;


             1421          (ii) new facility with a construction cost of $500,000 or more; or
             1422          (iii) purchase of real property where an appropriation is requested to fund the purchase.
             1423          (b) "Capital improvements" means a:
             1424          (i) remodeling, alteration, replacement, or repair project with a total cost of less than
             1425      $2,500,000;
             1426          (ii) site and utility improvement with a total cost of less than $2,500,000; or
             1427          (iii) new facility with a total construction cost of less than $500,000.
             1428          (c) (i) "New facility" means the construction of a new building on state property
             1429      regardless of funding source.
             1430          (ii) "New facility" includes:
             1431          (A) an addition to an existing building; and
             1432          (B) the enclosure of space that was not previously fully enclosed.
             1433          (iii) "New facility" does not mean:
             1434          (A) the replacement of state-owned space that is demolished or that is otherwise
             1435      removed from state use, if the total construction cost of the replacement space is less than
             1436      $2,500,000; or
             1437          (B) the construction of facilities that do not fully enclose a space.
             1438          (d) "Replacement cost of existing state facilities" means the replacement cost, as
             1439      determined by the Division of Risk Management, of state facilities, excluding auxiliary
             1440      facilities as defined by the State Building Board.
             1441          (e) "State funds" means public money appropriated by the Legislature.
             1442          (2) The State Building Board, on behalf of all state agencies, commissions,
             1443      departments, and institutions shall submit its capital development recommendations and
             1444      priorities to the Legislature for approval and prioritization.
             1445          (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
             1446      project may not be constructed on state property without legislative approval.
             1447          (b) Legislative approval is not required for a capital development project that consists
             1448      of the design or construction of a new facility if the State Building Board determines that:
             1449          (i) the requesting state agency, commission, department, or institution has provided
             1450      adequate assurance that:
             1451          (A) state funds will not be used for the design or construction of the facility; and


             1452          (B) the state agency, commission, department, or institution has a plan for funding in
             1453      place that will not require increased state funding to cover the cost of operations and
             1454      maintenance to, or state funding for, immediate or future capital improvements to the resulting
             1455      facility; and
             1456          (ii) the use of the state property is:
             1457          (A) appropriate and consistent with the master plan for the property; and
             1458          (B) will not create an adverse impact on the state.
             1459          (c) (i) The Division of Facilities Construction and Management shall maintain a record
             1460      of facilities constructed under the exemption provided in Subsection (3)(b).
             1461          (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
             1462      agency, commission, department, or institution may not request:
             1463          (A) increased state funds for operations and maintenance; or
             1464          (B) state capital improvement funding.
             1465          (d) Legislative approval is not required for:
             1466          (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
             1467      that has been approved by the State Building Board;
             1468          (ii) a facility to be built with nonstate funds and owned by nonstate entities within
             1469      research park areas at the University of Utah and Utah State University;
             1470          (iii) a facility to be built at This is the Place State Park by This is the Place Foundation
             1471      with funds of the foundation, including grant money from the state, or with donated services or
             1472      materials;
             1473          (iv) a capital project that:
             1474          (A) is funded by:
             1475          (I) the Uintah Basin Revitalization Fund; or
             1476          (II) the Navajo Revitalization Fund; and
             1477          (B) does not provide a new facility for a state agency or higher education institution; or
             1478          (v) a capital project on school and institutional trust lands that is funded by the School
             1479      and Institutional Trust Lands Administration from the Land Grant Management Fund and that
             1480      does not fund construction of a new facility for a state agency or higher education institution.
             1481          (e) (i) Legislative approval is not required for capital development projects to be built
             1482      for the Department of Transportation as a result of an exchange of real property under Section


             1483      72-5-111 .
             1484          (ii) When the Department of Transportation approves those exchanges, it shall notify
             1485      the president of the Senate, the speaker of the House, and the cochairs of the [Capital Facilities
             1486      and Administrative Services] Infrastructure and General Government Appropriations
             1487      Subcommittee of the Legislature's Joint Appropriation Committee about any new facilities to
             1488      be built under this exemption.
             1489          (4) (a) (i) The State Building Board, on behalf of all state agencies, commissions,
             1490      departments, and institutions shall by January 15 of each year, submit a list of anticipated
             1491      capital improvement requirements to the Legislature for review and approval.
             1492          (ii) The list shall identify:
             1493          (A) a single project that costs more than $1,000,000;
             1494          (B) multiple projects within a single building or facility that collectively cost more than
             1495      $1,000,000;
             1496          (C) a single project that will be constructed over multiple years with a yearly cost of
             1497      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             1498          (D) multiple projects within a single building or facility with a yearly cost of
             1499      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             1500          (E) a single project previously reported to the Legislature as a capital improvement
             1501      project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
             1502      more than $1,000,000; and
             1503          (F) multiple projects within a single building or facility previously reported to the
             1504      Legislature as a capital improvement project under $1,000,000 that, because of an increase in
             1505      costs or scope of work, will now cost more than $1,000,000.
             1506          (b) Unless otherwise directed by the Legislature, the State Building Board shall
             1507      prioritize capital improvements from the list submitted to the Legislature up to the level of
             1508      appropriation made by the Legislature.
             1509          (c) In prioritizing capital improvements, the State Building Board shall consider the
             1510      results of facility evaluations completed by an architect/engineer as stipulated by the building
             1511      board's facilities maintenance standards.
             1512          (d) The State Building Board may require an entity that benefits from a capital
             1513      improvement project to repay the capital improvement funds from savings that result from the


             1514      project.
             1515          (e) The State Building Board may provide capital improvement funding to a single
             1516      project, or to multiple projects within a single building or facility, even if the total cost of the
             1517      project or multiple projects is $2,500,000 or more, if:
             1518          (i) the capital improvement project or multiple projects require more than one year to
             1519      complete; and
             1520          (ii) the Legislature has affirmatively authorized the capital improvement project or
             1521      multiple projects to be funded in phases.
             1522          (5) The Legislature may authorize:
             1523          (a) the total square feet to be occupied by each state agency; and
             1524          (b) the total square feet and total cost of lease space for each agency.
             1525          (6) (a) Except as provided in Subsection (6)(b) or (c), the Legislature may not fund the
             1526      design or construction of any new capital development projects, except to complete the funding
             1527      of projects for which partial funding has been previously provided, until the Legislature has
             1528      appropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
             1529          (b) (i) As used in this Subsection (6)(b):
             1530          (A) "Education Fund budget deficit" is as defined in Section 63J-1-312 ; and
             1531          (B) "General Fund budget deficit" is as defined in Section 63J-1-312 .
             1532          (ii) If the Legislature determines that an Education Fund budget deficit or a General
             1533      Fund budget deficit exists, the Legislature may, in eliminating the deficit, reduce the amount
             1534      appropriated to capital improvements to 0.9% of the replacement cost of state buildings.
             1535          (c) The requirements under Subsections (6)(a) and (b) do not apply to the 2008-09,
             1536      2009-10, 2010-11, and 2011-12 fiscal years.
             1537          (7) (a) If, after approval of capital development and capital improvement priorities by
             1538      the Legislature under this section, emergencies arise that create unforeseen critical capital
             1539      improvement projects, the State Building Board may, notwithstanding the requirements of Title
             1540      63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to address
             1541      those projects.
             1542          (b) The State Building Board shall report any changes it makes in capital improvement
             1543      allocations approved by the Legislature to:
             1544          (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and


             1545          (ii) the Legislature at its next annual general session.
             1546          (8) (a) The State Building Board may adopt a rule allocating to institutions and
             1547      agencies their proportionate share of capital improvement funding.
             1548          (b) The State Building Board shall ensure that the rule:
             1549          (i) reserves funds for the Division of Facilities Construction and Management for
             1550      emergency projects; and
             1551          (ii) allows the delegation of projects to some institutions and agencies with the
             1552      requirement that a report of expenditures will be filed annually with the Division of Facilities
             1553      Construction and Management and appropriate governing bodies.
             1554          (9) It is the intent of the Legislature that in funding capital improvement requirements
             1555      under this section the General Fund be considered as a funding source for at least half of those
             1556      costs.
             1557          Section 27. Section 63A-5-701 is amended to read:
             1558           63A-5-701. State Building Energy Efficiency Program.
             1559          (1) For purposes of this section:
             1560          (a) "Division" means the Division of Facilities Construction and Management
             1561      established in Section 63A-5-201 .
             1562          (b) "Energy efficiency measures" means actions taken or initiated by a state agency that
             1563      reduce the state agency's energy use, increase the state agency's energy efficiency, reduce
             1564      source energy consumption, reduce water consumption, or lower the costs of energy or water to
             1565      the state agency.
             1566          (c) "Energy savings agreement" means an agreement entered into by a state agency
             1567      whereby the state agency implements energy efficiency measures and finances the costs
             1568      associated with implementation of energy efficiency measures using the stream of expected
             1569      savings in utility costs resulting from implementation of the energy efficiency measures as the
             1570      funding source for repayment.
             1571          (d) "State agency" means each executive, legislative, and judicial branch department,
             1572      agency, board, commission, or division, and includes a state institution of higher education as
             1573      defined in Section 53B-3-102 .
             1574          (e) "State Building Energy Efficiency Program" means a program established under
             1575      this section for the purpose of improving energy efficiency measures and reducing the energy


             1576      costs for state facilities.
             1577          (f) (i) "State facility" means any building, structure, or other improvement that is
             1578      constructed on property owned by the state, its departments, commissions, institutions, or
             1579      agencies, or a state institution of higher education.
             1580          (ii) "State facility" does not mean:
             1581          (A) an unoccupied structure that is a component of the state highway system;
             1582          (B) a privately owned structure that is located on property owned by the state, its
             1583      departments, commissions, institutions, or agencies, or a state institution of higher education;
             1584      or
             1585          (C) a structure that is located on land administered by the School and Institutional
             1586      Trust Lands Administration under a lease, permit, or contract with the School and Institutional
             1587      Trust Lands Administration.
             1588          (2) The division shall:
             1589          (a) develop and administer the state building energy efficiency program, which shall
             1590      include guidelines and procedures to improve energy efficiency in the maintenance and
             1591      management of state facilities;
             1592          (b) provide information and assistance to state agencies in their efforts to improve
             1593      energy efficiency;
             1594          (c) analyze energy consumption by state agencies to identify opportunities for
             1595      improved energy efficiency;
             1596          (d) establish an advisory group composed of representatives of state agencies to
             1597      provide information and assistance in the development and implementation of the state
             1598      building energy efficiency program; and
             1599          (e) submit to the governor and to the [Capital Facilities and Administrative Services]
             1600      Infrastructure and General Government Appropriations Subcommittee of the Legislature an
             1601      annual report that:
             1602          (i) identifies strategies for long-term improvement in energy efficiency;
             1603          (ii) identifies goals for energy conservation for the upcoming year; and
             1604          (iii) details energy management programs and strategies that were undertaken in the
             1605      previous year to improve the energy efficiency of state agencies and the energy savings
             1606      achieved.


             1607          (3) Each state agency shall:
             1608          (a) designate a staff member that is responsible for coordinating energy efficiency
             1609      efforts within the agency;
             1610          (b) provide energy consumption and costs information to the division;
             1611          (c) develop strategies for improving energy efficiency and reducing energy costs; and
             1612          (d) provide the division with information regarding the agency's energy efficiency and
             1613      reduction strategies.
             1614          (4) (a) A state agency may enter into an energy savings agreement for a term of up to
             1615      20 years.
             1616          (b) Before entering into an energy savings agreement, the state agency shall:
             1617          (i) utilize the division to oversee the project unless the project is exempt from the
             1618      division's oversight or the oversight is delegated to the agency under the provisions of Section
             1619      63A-5-206 ;
             1620          (ii) obtain the prior approval of the governor or the governor's designee; and
             1621          (iii) provide the Office of Legislative Fiscal Analyst with a copy of the proposed
             1622      agreement before the agency enters into the agreement.
             1623          Section 28. Section 63B-3-301 is amended to read:
             1624           63B-3-301. Legislative intent -- Additional projects.
             1625          (1) It is the intent of the Legislature that, for any lease purchase agreement that the
             1626      Legislature may authorize the Division of Facilities Construction and Management to enter into
             1627      during its 1994 Annual General Session, the State Building Ownership Authority, at the
             1628      reasonable rates and amounts it may determine, and with technical assistance from the state
             1629      treasurer, the director of the Division of Finance, and the director of the Governor's Office of
             1630      Planning and Budget, may seek out the most cost effective and prudent lease purchase plans
             1631      available to the state and may, pursuant to Title 63B, Chapter 1, Part 3, State Building
             1632      Ownership Authority Act, certificate out interests in, or obligations of the authority pertaining
             1633      to:
             1634          (a) the lease purchase obligation; or
             1635          (b) lease rental payments under the lease purchase obligation.
             1636          (2) It is the intent of the Legislature that the Department of Transportation dispose of
             1637      surplus real properties and use the proceeds from those properties to acquire or construct


             1638      through the Division of Facilities Construction and Management a new District Two Complex.
             1639          (3) It is the intent of the Legislature that the State Building Board allocate funds from
             1640      the Capital Improvement appropriation and donations to cover costs associated with the
             1641      upgrade of the Governor's Residence that go beyond the restoration costs which can be covered
             1642      by insurance proceeds.
             1643          (4) (a) It is the intent of the Legislature to authorize the State Building Ownership
             1644      Authority under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority
             1645      Act, to issue or execute obligations or enter into or arrange for a lease purchase agreement in
             1646      which participation interests may be created, to provide up to $10,600,000 for the construction
             1647      of a Natural Resources Building in Salt Lake City, together with additional amounts necessary
             1648      to:
             1649          (i) pay costs of issuance;
             1650          (ii) pay capitalized interest; and
             1651          (iii) fund any debt service reserve requirements.
             1652          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             1653      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             1654      director of the Division of Finance, and the director of the Governor's Office of Planning and
             1655      Budget.
             1656          (c) It is the intent of the Legislature that the operating budget for the Department of
             1657      Natural Resources not be increased to fund these lease payments.
             1658          (5) (a) It is the intent of the Legislature to authorize the State Building Ownership
             1659      Authority under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority
             1660      Act, to issue or execute obligations or enter into or arrange for a lease purchase agreement in
             1661      which participation interests may be created, to provide up to $8,300,000 for the acquisition of
             1662      the office buildings currently occupied by the Department of Environmental Quality and
             1663      approximately 19 acres of additional vacant land at the Airport East Business Park in Salt Lake
             1664      City, together with additional amounts necessary to:
             1665          (i) pay costs of issuance;
             1666          (ii) pay capitalized interest; and
             1667          (iii) fund any debt service reserve requirements.
             1668          (b) It is the intent of the Legislature that the authority seek out the most cost effective


             1669      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             1670      director of the Division of Finance, and the director of the Governor's Office of Planning and
             1671      Budget.
             1672          (6) (a) It is the intent of the Legislature to authorize the State Building Ownership
             1673      Authority under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority
             1674      Act, to issue or execute obligations or enter into or arrange for a lease purchase agreement in
             1675      which participation interests may be created, to provide up to $9,000,000 for the acquisition or
             1676      construction of up to two field offices for the Department of Human Services in the
             1677      southwestern portion of Salt Lake County, together with additional amounts necessary to:
             1678          (i) pay costs of issuance;
             1679          (ii) pay capitalized interest; and
             1680          (iii) fund any debt service reserve requirements.
             1681          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             1682      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             1683      director of the Division of Finance, and the director of the Governor's Office of Planning and
             1684      Budget.
             1685          (7) (a) It is the intent of the Legislature to authorize the State Building Ownership
             1686      Authority under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority
             1687      Act, to issue or execute obligations or enter into or arrange for lease purchase agreements in
             1688      which participation interests may be created, to provide up to $5,000,000 for the acquisition or
             1689      construction of up to 13 stores for the Department of Alcoholic Beverage Control, together
             1690      with additional amounts necessary to:
             1691          (i) pay costs of issuance;
             1692          (ii) pay capitalized interest; and
             1693          (iii) fund any debt service reserve requirements.
             1694          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             1695      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             1696      director of the Division of Finance, and the director of the Governor's Office of Planning and
             1697      Budget.
             1698          (c) It is the intent of the Legislature that the operating budget for the Department of
             1699      Alcoholic Beverage Control not be increased to fund these lease payments.


             1700          (8) (a) It is the intent of the Legislature to authorize the State Building Ownership
             1701      Authority under authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority
             1702      Act, to issue or execute obligations or enter into or arrange for a lease purchase agreement in
             1703      which participation interests may be created, to provide up to $6,800,000 for the construction
             1704      of a Prerelease and Parole Center for the Department of Corrections, containing a minimum of
             1705      300 beds, together with additional amounts necessary to:
             1706          (i) pay costs of issuance;
             1707          (ii) pay capitalized interest; and
             1708          (iii) fund any debt service reserve requirements.
             1709          (b) It is the intent of the Legislature that the authority seek out the most cost effective
             1710      and prudent lease purchase plan available with technical assistance from the state treasurer, the
             1711      director of the Division of Finance, and the director of the Governor's Office of Planning and
             1712      Budget.
             1713          (9) If S.B. 275, 1994 General Session, which authorizes funding for a Courts Complex
             1714      in Salt Lake City, becomes law, it is the intent of the Legislature that:
             1715          (a) the Legislative Management Committee, the Interim Appropriation Subcommittees
             1716      for General Government and Capital Facilities and Executive Offices, Courts, and Corrections,
             1717      the Office of the Legislative Fiscal Analyst, the Governor's Office of Planning and Budget, and
             1718      the State Building Board participate in a review of the proposed facility design for the Courts
             1719      Complex no later than December 1994; and
             1720          (b) although this review will not affect the funding authorization issued by the 1994
             1721      Legislature, it is expected that Division of Facilities Construction and Management will give
             1722      proper attention to concerns raised in these reviews and make appropriate design changes
             1723      pursuant to the review.
             1724          (10) It is the intent of the Legislature that:
             1725          (a) the Division of Facilities Construction and Management, in cooperation with the
             1726      Division of Youth Corrections renamed in 2003 to the Division of Juvenile Justice Services,
             1727      develop a flexible use prototype facility for the Division of Youth Corrections renamed in 2003
             1728      to the Division of Juvenile Justice Services;
             1729          (b) the development process use existing prototype proposals unless it can be
             1730      quantifiably demonstrated that the proposals cannot be used;


             1731          (c) the facility is designed so that with minor modifications, it can accommodate
             1732      detention, observation and assessment, transition, and secure programs as needed at specific
             1733      geographical locations;
             1734          (d) (i) funding as provided in the fiscal year 1995 bond authorization for the Division
             1735      of Youth Corrections renamed in 2003 to the Division of Juvenile Justice Services is used to
             1736      design and construct one facility and design the other;
             1737          (ii) the Division of Youth Corrections renamed in 2003 to the Division of Juvenile
             1738      Justice Services shall:
             1739          (A) determine the location for the facility for which design and construction are fully
             1740      funded; and
             1741          (B) in conjunction with the Division of Facilities Construction and Management,
             1742      determine the best methodology for design and construction of the fully funded facility;
             1743          (e) the Division of Facilities Construction and Management submit the prototype as
             1744      soon as possible to the [Capital Facilities and Administrative Services Appropriation]
             1745      Infrastructure and General Government Appropriations Subcommittee and Executive Offices,
             1746      Criminal Justice, and Legislature Appropriation Subcommittee for review;
             1747          (f) the Division of Facilities Construction and Management issue a Request for
             1748      Proposal for one of the facilities, with that facility designed and constructed entirely by the
             1749      winning firm;
             1750          (g) the other facility be designed and constructed under the existing Division of
             1751      Facilities Construction and Management process;
             1752          (h) that both facilities follow the program needs and specifications as identified by
             1753      Division of Facilities Construction and Management and the Division of Youth Corrections
             1754      renamed in 2003 to the Division of Juvenile Justice Services in the prototype; and
             1755          (i) the fully funded facility should be ready for occupancy by September 1, 1995.
             1756          (11) It is the intent of the Legislature that the fiscal year 1995 funding for the State Fair
             1757      Park Master Study be used by the Division of Facilities Construction and Management to
             1758      develop a master plan for the State Fair Park that:
             1759          (a) identifies capital facilities needs, capital improvement needs, building
             1760      configuration, and other long term needs and uses of the State Fair Park and its buildings; and
             1761          (b) establishes priorities for development, estimated costs, and projected timetables.


             1762          (12) It is the intent of the Legislature that:
             1763          (a) the Division of Facilities Construction and Management, in cooperation with the
             1764      Division of Parks and Recreation and surrounding counties, develop a master plan and general
             1765      program for the phased development of Antelope Island;
             1766          (b) the master plan:
             1767          (i) establish priorities for development;
             1768          (ii) include estimated costs and projected time tables; and
             1769          (iii) include recommendations for funding methods and the allocation of
             1770      responsibilities between the parties; and
             1771          (c) the results of the effort be reported to the Natural Resources, Agriculture, and
             1772      Environmental Quality Appropriations Subcommittee and [Capital Facilities and
             1773      Administrative Services Appropriation] Infrastructure and General Government Appropriations
             1774      Subcommittee.
             1775          (13) It is the intent of the Legislature to authorize the University of Utah to use:
             1776          (a) bond reserves to plan, design, and construct the Kingsbury Hall renovation under
             1777      the supervision of the director of the Division of Facilities Construction and Management
             1778      unless supervisory authority is delegated by the director; and
             1779          (b) donated and other nonappropriated funds to plan, design, and construct the Biology
             1780      Research Building under the supervision of the director of the Division of Facilities
             1781      Construction and Management unless supervisory authority is delegated by the director.
             1782          (14) It is the intent of the Legislature to authorize Utah State University to use:
             1783          (a) federal and other funds to plan, design, and construct the Bee Lab under the
             1784      supervision of the director of the Division of Facilities Construction and Management unless
             1785      supervisory authority is delegated by the director;
             1786          (b) donated and other nonappropriated funds to plan, design, and construct an Athletic
             1787      Facility addition and renovation under the supervision of the director of the Division of
             1788      Facilities Construction and Management unless supervisory authority is delegated by the
             1789      director;
             1790          (c) donated and other nonappropriated funds to plan, design, and construct a renovation
             1791      to the Nutrition and Food Science Building under the supervision of the director of the
             1792      Division of Facilities Construction and Management unless supervisory authority is delegated


             1793      by the director; and
             1794          (d) federal and private funds to plan, design, and construct the Millville Research
             1795      Facility under the supervision of the director of the Division of Facilities Construction and
             1796      Management unless supervisory authority is delegated by the director.
             1797          (15) It is the intent of the Legislature to authorize Salt Lake Community College to use:
             1798          (a) institutional funds to plan, design, and construct a remodel to the Auto Trades
             1799      Office and Learning Center under the supervision of the director of the Division of Facilities
             1800      Construction and Management unless supervisory authority is delegated by the director;
             1801          (b) institutional funds to plan, design, and construct the relocation and expansion of a
             1802      temporary maintenance compound under the supervision of the director of the Division of
             1803      Facilities Construction and Management unless supervisory authority is delegated by the
             1804      director; and
             1805          (c) institutional funds to plan, design, and construct the Alder Amphitheater under the
             1806      supervision of the director of the Division of Facilities Construction and Management unless
             1807      supervisory authority is delegated by the director.
             1808          (16) It is the intent of the Legislature to authorize Southern Utah University to use:
             1809          (a) federal funds to plan, design, and construct a Community Services Building under
             1810      the supervision of the director of the Division of Facilities Construction and Management
             1811      unless supervisory authority is delegated by the director; and
             1812          (b) donated and other nonappropriated funds to plan, design, and construct a stadium
             1813      expansion under the supervision of the director of the Division of Facilities Construction and
             1814      Management unless supervisory authority is delegated by the director.
             1815          (17) It is the intent of the Legislature to authorize the Department of Corrections to use
             1816      donated funds to plan, design, and construct a Prison Chapel at the Central Utah Correctional
             1817      Facility in Gunnison under the supervision of the director of the Division of Facilities
             1818      Construction and Management unless supervisory authority is delegated by the director.
             1819          (18) If the Utah National Guard does not relocate in the Signetics Building, it is the
             1820      intent of the Legislature to authorize the Guard to use federal funds and funds from Provo City
             1821      to plan and design an Armory in Provo, Utah, under the supervision of the director of the
             1822      Division of Facilities Construction and Management unless supervisory authority is delegated
             1823      by the director.


             1824          (19) It is the intent of the Legislature that the Utah Department of Transportation use
             1825      $250,000 of the fiscal year 1995 highway appropriation to fund an environmental study in
             1826      Ogden, Utah of the 2600 North Corridor between Washington Boulevard and I-15.
             1827          (20) It is the intent of the Legislature that the Ogden-Weber Applied Technology
             1828      Center use the money appropriated for fiscal year 1995 to design the Metal Trades Building
             1829      and purchase equipment for use in that building that could be used in metal trades or other
             1830      programs in other Applied Technology Centers.
             1831          (21) It is the intent of the Legislature that the Bridgerland Applied Technology Center
             1832      and the Ogden-Weber Applied Technology Center projects as designed in fiscal year 1995 be
             1833      considered as the highest priority projects for construction funding in fiscal year 1996.
             1834          (22) It is the intent of the Legislature that:
             1835          (a) the Division of Facilities Construction and Management complete physical space
             1836      utilization standards by June 30, 1995, for the use of technology education activities;
             1837          (b) these standards are to be developed with and approved by the State Office of
             1838      Education, the Board of Regents, and the Utah State Building Board;
             1839          (c) these physical standards be used as the basis for:
             1840          (i) determining utilization of any technology space based on number of stations capable
             1841      and occupied for any given hour of operation; and
             1842          (ii) requests for any new space or remodeling;
             1843          (d) the fiscal year 1995 projects at the Bridgerland Applied Technology Center and the
             1844      Ogden-Weber Applied Technology Center are exempt from this process; and
             1845          (e) the design of the Davis Applied Technology Center take into account the utilization
             1846      formulas established by the Division of Facilities Construction and Management.
             1847          (23) It is the intent of the Legislature that Utah Valley State College may use the
             1848      money from the bond allocated to the remodel of the Signetics building to relocate its technical
             1849      education programs at other designated sites or facilities under the supervision of the director
             1850      of the Division of Facilities Construction and Management unless supervisory authority is
             1851      delegated by the director.
             1852          (24) It is the intent of the Legislature that the money provided for the fiscal year 1995
             1853      project for the Bridgerland Applied Technology Center be used to design and construct the
             1854      space associated with Utah State University and design the technology center portion of the


             1855      project.
             1856          (25) It is the intent of the Legislature that the governor provide periodic reports on the
             1857      expenditure of the funds provided for electronic technology, equipment, and hardware to the
             1858      Public Utilities and Technology Interim Committee, the [Capital Facilities and Administrative
             1859      Services Appropriation] Infrastructure and General Government Appropriations Subcommittee,
             1860      and the Legislative Management Committee.
             1861          Section 29. Section 63J-1-201 is amended to read:
             1862           63J-1-201. Governor's proposed budget to Legislature -- Contents -- Preparation
             1863      -- Appropriations based on current tax laws and not to exceed estimated revenues.
             1864          (1) The governor shall deliver, not later than 30 days before the date the Legislature
             1865      convenes in the annual general session, a confidential draft copy of the governor's proposed
             1866      budget recommendations to the Office of the Legislative Fiscal Analyst according to the
             1867      requirements of this section.
             1868          (2) (a) When submitting a proposed budget, the governor shall, within the first three
             1869      days of the annual general session of the Legislature, submit to the presiding officer of each
             1870      house of the Legislature:
             1871          (i) a proposed budget for the ensuing fiscal year;
             1872          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
             1873      with each change clearly itemized and classified; and
             1874          (iii) as applicable, a document showing proposed changes in estimated revenues that
             1875      are based on changes in state tax laws or rates.
             1876          (b) The proposed budget shall include:
             1877          (i) a projection of the total estimated revenues and appropriations for the next fiscal
             1878      year;
             1879          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
             1880      federal grants or assistance programs included in the budget;
             1881          (iii) a plan of proposed changes to appropriations and estimated revenues for the next
             1882      fiscal year that is based upon the current fiscal year state tax laws and rates;
             1883          (iv) an itemized estimate of the proposed changes to appropriations for:
             1884          (A) the Legislative Department as certified to the governor by the president of the
             1885      Senate and the speaker of the House;


             1886          (B) the Executive Department;
             1887          (C) the Judicial Department as certified to the governor by the state court
             1888      administrator;
             1889          (D) changes to salaries payable by the state under the Utah Constitution or under law
             1890      for lease agreements planned for the next fiscal year; and
             1891          (E) all other changes to ongoing or one-time appropriations, including dedicated
             1892      credits, restricted funds, nonlapsing balances, grants, and federal funds;
             1893          (v) for each line item, the average annual dollar amount of staff funding associated
             1894      with all positions that were vacant during the last fiscal year;
             1895          (vi) deficits or anticipated deficits;
             1896          (vii) the recommendations for each state agency for new full-time employees for the
             1897      next fiscal year, which shall also be provided to the State Building Board as required by
             1898      Subsection 63A-5-103 (2);
             1899          (viii) any explanation that the governor may desire to make as to the important features
             1900      of the budget and any suggestion as to methods for the reduction of expenditures or increase of
             1901      the state's revenue; and
             1902          (ix) information detailing certain fee increases as required by Section 63J-1-504 .
             1903          (3) For the purpose of preparing and reporting the proposed budget:
             1904          (a) The governor shall require the proper state officials, including all public and higher
             1905      education officials, all heads of executive and administrative departments and state institutions,
             1906      bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
             1907      state money, and all institutions applying for state money and appropriations, to provide
             1908      itemized estimates of changes in revenues and appropriations.
             1909          (b) The governor may require the persons and entities subject to Subsection (3)(a) to
             1910      provide other information under these guidelines and at times as the governor may direct,
             1911      which may include a requirement for program productivity and performance measures, where
             1912      appropriate, with emphasis on outcome indicators.
             1913          (c) The governor may require representatives of public and higher education, state
             1914      departments and institutions, and other institutions or individuals applying for state
             1915      appropriations to attend budget meetings.
             1916          (4) In submitting the budgets for the Departments of Health and Human Services and


             1917      the Office of the Attorney General, the governor shall consider a separate recommendation in
             1918      the governor's budget for changes in funds to be contracted to:
             1919          (a) local mental health authorities under Section 62A-15-110 ;
             1920          (b) local substance abuse authorities under Section 62A-15-110 ;
             1921          (c) area agencies under Section 62A-3-104.2 ;
             1922          (d) programs administered directly by and for operation of the Divisions of Substance
             1923      Abuse and Mental Health and Aging and Adult Services;
             1924          (e) local health departments under Title 26A, Chapter 1, Local Health Departments;
             1925      and
             1926          (f) counties for the operation of Children's Justice Centers under Section 67-5b-102 .
             1927          (5) (a) In making budget recommendations, the governor shall consider an amount
             1928      sufficient to grant the following entities the same percentage increase for wages and benefits
             1929      that the governor includes in the governor's budget for persons employed by the state:
             1930          (i) local health departments, local mental health authorities, local substance abuse
             1931      authorities, and area agencies;
             1932          (ii) local conservation districts and Utah Association of Conservation District
             1933      employees, as related to the budget for the Department of Agriculture; and
             1934          (iii) employees of corporations that provide direct services under contract with:
             1935          (A) the Utah State Office of Rehabilitation and the Division of Services for People
             1936      with Disabilities;
             1937          (B) the Division of Child and Family Services; and
             1938          (C) the Division of Juvenile Justice Services within the Department of Human
             1939      Services.
             1940          (b) If the governor does not include in the governor's budget an amount sufficient to
             1941      grant an increase for any entity described in Subsection (5)(a), the governor shall include a
             1942      message to the Legislature regarding the governor's reason for not including that amount.
             1943          (6) (a) The Families, Agencies, and Communities Together Council may propose a
             1944      budget recommendation to the governor for collaborative service delivery systems operated
             1945      under Section 63M-9-402 , as provided under Subsection 63M-9-201 (4)(e).
             1946          (b) The Legislature may, through a specific program schedule, designate funds
             1947      appropriated for collaborative service delivery systems operated under Section 63M-9-402 .


             1948          (7) The governor shall include in the governor's budget the state's portion of the budget
             1949      for the Utah Communications Agency Network established in Title 63C, Chapter 7, Utah
             1950      Communications Agency Network Act.
             1951          (8) (a) The governor shall include a separate recommendation in the governor's budget
             1952      for funds to maintain the operation and administration of the Utah Comprehensive Health
             1953      Insurance Pool. In making the recommendation, the governor may consider:
             1954          (i) actuarial analysis of growth or decline in enrollment projected over a period of at
             1955      least three years;
             1956          (ii) actuarial analysis of the medical and pharmacy claims costs projected over a period
             1957      of at least three years;
             1958          (iii) the annual Medical Care Consumer Price Index;
             1959          (iv) the annual base budget for the pool established by the [Commerce and Revenue]
             1960      Business, Economic Development, and Labor Appropriations Subcommittee for each fiscal
             1961      year;
             1962          (v) the growth or decline in insurance premium taxes and fees collected by the State
             1963      Tax Commission and the Insurance Department; and
             1964          (vi) the availability of surplus General Fund revenue under Section 63J-1-312 and
             1965      Subsection 59-14-204 (5)(b).
             1966          (b) In considering the factors in Subsections (8)(a)(i), (ii), and (iii), the governor may
             1967      consider the actuarial data and projections prepared for the board of the Utah Comprehensive
             1968      Health Insurance Pool as it develops the governor's financial statements and projections for
             1969      each fiscal year.
             1970          (9) (a) In submitting the budget for the Department of Public Safety, the governor shall
             1971      include a separate recommendation in the governor's budget for maintaining a sufficient
             1972      number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
             1973      or below the number specified in Subsection 32B-1-201 (2).
             1974          (b) If the governor does not include in the governor's budget an amount sufficient to
             1975      maintain the number of alcohol-related law enforcement officers described in Subsection
             1976      (9)(a), the governor shall include a message to the Legislature regarding the governor's reason
             1977      for not including that amount.
             1978          (10) (a) The governor may revise all estimates, except those relating to the Legislative


             1979      Department, the Judicial Department, and those providing for the payment of principal and
             1980      interest to the state debt and for the salaries and expenditures specified by the Utah
             1981      Constitution or under the laws of the state.
             1982          (b) The estimate for the Judicial Department, as certified by the state court
             1983      administrator, shall also be included in the budget without revision, but the governor may make
             1984      separate recommendations on the estimate.
             1985          (11) The total appropriations requested for expenditures authorized by the budget may
             1986      not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
             1987      fiscal year.
             1988          (12) If any item of the budget as enacted is held invalid upon any ground, the invalidity
             1989      does not affect the budget itself or any other item in it.
             1990          Section 30. Section 63J-1-201.7 is amended to read:
             1991           63J-1-201.7. Legislative budget considerations -- Wage increases for certain
             1992      entities -- Comprehensive health insurance pool.
             1993          (1) In adopting a budget for each fiscal year, the Legislature shall consider an amount
             1994      sufficient to grant local health departments, local mental health authorities, local substance
             1995      abuse authorities, area agencies on aging, conservation districts, and Utah Association of
             1996      Conservation District employees the same percentage increase for wages and benefits that is
             1997      included in the budget for persons employed by the state.
             1998          (2) (a) In adopting a budget each year for the Utah Comprehensive Health Insurance
             1999      Pool, the Legislature shall determine an amount that is sufficient to fund the pool for each
             2000      fiscal year.
             2001          (b) When making a determination under this Subsection (2), the Legislature shall
             2002      consider factors it determines are appropriate, which may include:
             2003          (i) actuarial analysis of growth or decline in enrollment projected over a period of at
             2004      least three years;
             2005          (ii) actuarial analysis of the medical and pharmacy claims costs projected over a period
             2006      of at least three years;
             2007          (iii) the annual Medical Care Consumer Price Index;
             2008          (iv) the annual base budget for the pool established by the [Commerce and Revenue]
             2009      Business, Economic Development, and Labor Appropriations Subcommittee for each fiscal


             2010      year;
             2011          (v) the growth or decline in insurance premium taxes and fees collected by the tax
             2012      commission and the insurance department from the previous fiscal year; and
             2013          (vi) the availability of surplus General Fund revenue under Section 63J-1-312 and
             2014      Subsection 59-14-204 (5)(b).
             2015          (c) In considering the factors in Subsections (2)(b)(i), (ii), and (iii), the Legislature may
             2016      consider the actuarial data and projections prepared for the board of the Utah Comprehensive
             2017      Health Insurance Pool as it develops its financial statements and projections for each fiscal
             2018      year.
             2019          (d) The funds appropriated by the Legislature to fund the Utah Comprehensive Health
             2020      Insurance Pool as determined under this Subsection (2):
             2021          (i) shall be deposited into the fund established by Section 31A-29-120 ; and
             2022          (ii) are restricted and are to be used to maintain the operation, administration, and
             2023      management of the Utah Comprehensive Health Insurance Pool created by Section
             2024      31A-29-104 .
             2025          Section 31. Section 63M-1-1206 is amended to read:
             2026           63M-1-1206. Board duties and powers.
             2027          (1) The board shall:
             2028          (a) establish criteria and procedures for the allocation and issuance of contingent tax
             2029      credits to designated investors by means of certificates issued by the board, provided that a
             2030      contingent tax credit may not be issued unless the Utah fund of funds:
             2031          (i) first agrees to treat the amount of the tax credit redeemed by the state as a loan from
             2032      the state to the Utah fund of funds; and
             2033          (ii) agrees to repay the loan upon terms and conditions established by the board;
             2034          (b) establish criteria and procedures for assessing the likelihood of future certificate
             2035      redemptions by designated investors, including:
             2036          (i) criteria and procedures for evaluating the value of investments made by the Utah
             2037      fund of funds; and
             2038          (ii) the returns from the Utah fund of funds;
             2039          (c) establish criteria and procedures for registering and redeeming contingent tax
             2040      credits by designated investors holding certificates issued by the board;


             2041          (d) establish a target rate of return or range of returns on venture capital investments of
             2042      the Utah fund of funds;
             2043          (e) establish criteria and procedures governing commitments obtained by the board
             2044      from designated purchasers including:
             2045          (i) entering into commitments with designated purchasers; and
             2046          (ii) drawing on commitments to redeem certificates from designated investors;
             2047          (f) have power to:
             2048          (i) expend funds;
             2049          (ii) invest funds;
             2050          (iii) issue debt and borrow funds;
             2051          (iv) enter into contracts;
             2052          (v) insure against loss; and
             2053          (vi) perform any other act necessary to carry out its purpose; and
             2054          (g) make, amend, and repeal rules for the conduct of its affairs, consistent with this part
             2055      and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             2056          (2) (a) All rules made by the board under Subsection (1)(g) are subject to review by the
             2057      Legislative Management Committee:
             2058          (i) whenever made, modified, or repealed; and
             2059          (ii) in each even-numbered year.
             2060          (b) Subsection (2)(a) does not preclude the legislative Administrative Rules Review
             2061      Committee from reviewing and taking appropriate action on any rule made, amended, or
             2062      repealed by the board.
             2063          (3) (a) The criteria and procedures established by the board for the allocation and
             2064      issuance of contingent tax credits shall:
             2065          (i) include the contingencies that must be met for a certificate and its related tax credits
             2066      to be:
             2067          (A) issued by the board;
             2068          (B) transferred by a designated investor; and
             2069          (C) redeemed by a designated investor in order to receive a contingent tax credit; and
             2070          (ii) tie the contingencies for redemption of certificates to:
             2071          (A) the targeted rates of return and scheduled redemptions of equity interests purchased


             2072      by designated investors in the Utah fund of funds; and
             2073          (B) the scheduled principal and interest payments payable to designated investors that
             2074      have made loans or other debt obligations to the Utah fund of funds.
             2075          (b) The board may not issue contingent tax credits under this part prior to July 1, 2004.
             2076          (4) (a) The board may charge a placement fee to the Utah fund of funds for the
             2077      issuance of a certificate and related contingent tax credit to a designated investor.
             2078          (b) The fee shall:
             2079          (i) be charged only to pay for reasonable and necessary costs of the board; and
             2080          (ii) not exceed .5% of the private investment of the designated investor.
             2081          (5) The board's criteria and procedures for redeeming certificates:
             2082          (a) shall give priority to the redemption amount from the available funds in the
             2083      redemption reserve; and
             2084          (b) to the extent there are insufficient funds in the redemption reserve to redeem
             2085      certificates, shall grant the board the option to redeem certificates:
             2086          (i) by certifying a contingent tax credit to the designated investor; or
             2087          (ii) by making demand on designated purchasers consistent with the requirements of
             2088      Section 63M-1-1221 .
             2089          (6) (a) The board shall, in consultation with the corporation, publish an annual report
             2090      of the activities conducted by the Utah fund of funds, and submit the report to the governor and
             2091      the Business, Economic Development [and Revenue], and Labor Appropriations
             2092      Subcommittee.
             2093          (b) The annual report shall:
             2094          (i) include a copy of the audit of the Utah fund of funds and a valuation of the assets of
             2095      the Utah fund of funds;
             2096          (ii) review the progress of the investment fund allocation manager in implementing its
             2097      investment plan; and
             2098          (iii) describe any redemption or transfer of a certificate issued under this part.
             2099          (c) The annual report may not identify any specific designated investor who has
             2100      redeemed or transferred a certificate.
             2101          (d) (i) Beginning July 1, 2006, and thereafter every two years, the board shall publish a
             2102      progress report which shall evaluate the progress of the state in accomplishing the purposes


             2103      stated in Section 63M-1-1202 .
             2104          (ii) The board shall give a copy of the report to the Legislature.
             2105          Section 32. Section 63M-1-1404 is amended to read:
             2106           63M-1-1404. Powers and duties of office related to tourism development plan --
             2107      Annual report and survey.
             2108          (1) The office shall:
             2109          (a) be the tourism development authority of the state;
             2110          (b) develop a tourism advertising, marketing, and branding program for the state;
             2111          (c) receive approval from the Board of Tourism Development under Subsection
             2112      63M-1-1403 (1)(a) before implementing the out-of-state advertising, marketing, and branding
             2113      campaign;
             2114          (d) develop a plan to increase the economic contribution by tourists visiting the state;
             2115          (e) plan and conduct a program of information, advertising, and publicity relating to the
             2116      recreational, scenic, historic, and tourist advantages and attractions of the state at large; and
             2117          (f) encourage and assist in the coordination of the activities of persons, firms,
             2118      associations, corporations, travel regions, counties, and governmental agencies engaged in
             2119      publicizing, developing, and promoting the scenic attractions and tourist advantages of the
             2120      state.
             2121          (2) Any plan provided for under Subsection (1) shall address, but not be limited to,
             2122      enhancing the state's image, promoting Utah as a year-round destination, encouraging
             2123      expenditures by visitors to the state, and expanding the markets where the state is promoted.
             2124          (3) The office shall conduct a regular and ongoing research program to identify
             2125      statewide economic trends and conditions in the tourism sector of the economy and to provide
             2126      an annual evaluation of the economic efficiency of the advertising and branding campaigns
             2127      conducted under this part to the Legislature's Workforce Services and Community and
             2128      Economic Development Interim Committee and the Business, Economic Development [and
             2129      Human Resources], and Labor Appropriations Subcommittee.
             2130          Section 33. Section 63M-1-1901 is amended to read:
             2131           63M-1-1901. Military installation projects for economic development -- Funding
             2132      -- Criteria -- Dispersal -- Report.
             2133          (1) The Legislature recognizes that significant growth in the state's economy can be


             2134      achieved by state and local support of the continuing expansion and development of federal
             2135      military installations throughout the state.
             2136          (2) The office, through its director, may receive and distribute legislative
             2137      appropriations and public and private grants and donations for military installation projects
             2138      that:
             2139          (a) have a strong probability of increasing the growth and development of a military
             2140      facility within the state, thereby providing significant economic benefits to the state;
             2141          (b) will provide a significant number of new jobs within the state that should remain
             2142      within the state for a period of several years; and
             2143          (c) involve a partnership between the military and private industry or local government
             2144      or the military and private industry and local government.
             2145          (3) (a) The director may distribute money under this section to:
             2146          (i) a regional or statewide nonprofit economic development organization; or
             2147          (ii) a federal military partnership that has the mission of promoting the economic
             2148      growth of a military installation.
             2149          (b) The director shall make a distribution under this section upon:
             2150          (i) receipt of an application on a form prescribed by the office that lists:
             2151          (A) the particulars of the proposed use of the money requested, such as needed
             2152      equipment purchases and anticipated training costs;
             2153          (B) the estimated number of new jobs that will be created by the proposed project;
             2154          (C) pending contracts related to the project that are to be finalized from funding
             2155      anticipated under this section; and
             2156          (D) a projected date on which the applicant shall provide the director with a report on
             2157      the implementation and performance of the project, including the creation of new jobs; and
             2158          (ii) a determination by the director that the project satisfies the requirements listed in
             2159      Subsection (2).
             2160          (c) (i) The office shall monitor the activities of a recipient of money under this section
             2161      to ensure that there is compliance with the terms and conditions imposed on the recipient under
             2162      this part.
             2163          (ii) The office shall submit an annual report to the Workforce Services and Community
             2164      and Economic Development Interim Committee and the Business, Economic Development


             2165      [and Revenue], and Labor Appropriations Subcommittee on the use and impact of the money
             2166      distributed under this section, with the first report to occur not later than September 1, 2005.
             2167          Section 34. Section 63M-2-302 is amended to read:
             2168           63M-2-302. Governing authority powers.
             2169          (1) The governing authority shall:
             2170          (a) ensure that funds appropriated and received for research and development at the
             2171      research universities and for the technology outreach program are used appropriately,
             2172      effectively, and efficiently in accordance with the intent of the Legislature;
             2173          (b) in cooperation with the universities' administrations, expand key research at the two
             2174      research universities;
             2175          (c) enhance technology transfer and commercialization of research and technologies
             2176      developed at the research universities to create high-quality jobs and new industries in the
             2177      private sector in Utah;
             2178          (d) review state and local economic development plans and appropriations to ensure
             2179      that the project and appropriations do not duplicate existing or planned programs;
             2180          (e) establish economic development objectives for the project;
             2181          (f) by following the procedures and requirements of Title 63G, Chapter 3, Utah
             2182      Administrative Rulemaking Act, make rules for allocating money appropriated to it for
             2183      research teams and for the commercialization of new technology between Utah State
             2184      University and the University of Utah;
             2185          (g) verify that the project is being enhanced by research grants and that it is meeting the
             2186      governing authority's economic development objectives;
             2187          (h) monitor all research plans that are part of the project at the research universities to
             2188      determine that appropriations are being spent in accordance with legislative intent and to
             2189      maximize the benefit and return to the state;
             2190          (i) develop methods and incentives to encourage investment in and contributions to the
             2191      project from the private sector; and
             2192          (j) annually report and make recommendations to:
             2193          (i) the governor; and
             2194          (ii) the Business, Economic Development [and Revenue], and Labor Appropriations
             2195      Subcommittee.


             2196          (2) The governing authority may:
             2197          (a) in addition to money received by it from the Legislature, receive contributions from
             2198      any source in the form of money, property, labor, or other things of value for the project;
             2199          (b) subject to any restrictions imposed by the donation, appropriations, or bond
             2200      authorizations, allocate money received by it among the research universities, technology
             2201      outreach program, and technology transfer offices to support commercialization and technology
             2202      transfer to the private sector; or
             2203          (c) enter into agreements necessary to obtain private equity investment in the project.
             2204          (3) All money appropriated to the governing authority is nonlapsing.
             2205          (4) The governing authority shall report to the Business, Economic Development [and
             2206      Revenue], and Labor Appropriations Subcommittee and to the Legislative Executive
             2207      Appropriations Committee by November 1 of each year on its activities, including:
             2208          (a) the achievement of the objectives and duties provided under this part;
             2209          (b) its annual expenditure of funds; and
             2210          (c) nonlapsing balances retained by the governing authority.
             2211          Section 35. Section 73-30-202 is amended to read:
             2212           73-30-202. Duties of the council.
             2213          (1) (a) The council shall advise the persons listed in Subsection (1)(b) on the
             2214      sustainable use, protection, and development of the Great Salt Lake in terms of balancing:
             2215          (i) sustainable use;
             2216          (ii) environmental health; and
             2217          (iii) reasonable access for existing and future development.
             2218          (b) The council shall advise, as provided in Subsection (1)(a):
             2219          (i) the governor;
             2220          (ii) the Department of Natural Resources; and
             2221          (iii) the Department of Environmental Quality.
             2222          (2) The council shall assist the Division of Forestry, Fire, and State Lands in its
             2223      responsibilities for the Great Salt Lake described in Section 65A-10-8 .
             2224          (3) The council:
             2225          (a) may recommend appointments to the Great Salt Lake technical team created by the
             2226      Division of Forestry, Fire, and State Lands; and


             2227          (b) shall receive and utilize technical support from the Great Salt Lake technical team.
             2228          (4) The council shall assist the Department of Natural Resources, the Department of
             2229      Environmental Quality, and their applicable boards in accomplishing their responsibilities for
             2230      the Great Salt Lake.
             2231          (5) The council shall report annually to the Natural Resources, Agriculture, and
             2232      Environmental Quality Appropriations Subcommittee on the council's activities.


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