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S.B. 124

             1     

COUNTY AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to county funds.
             10      Highlighted Provisions:
             11          This bill:
             12          .    repeals Title 17, Chapter 19, County Auditor, and replaces it with Title 17, Chapter
             13      19a, County Auditor, including:
             14              .    enacts general provisions;
             15              .    enacts provisions related to a county auditor's qualifications, powers, and duties;
             16              .    enacts provisions related to payments and warrants; and
             17              .    enacts provisions related to an investigation conducted by a county auditor;
             18          .    amends provisions related to the preparation of a tentative county budget;
             19          .    amends provisions related to the adoption of a county budget;
             20          .    amends provisions related to a purchase or encumbrance by a purchasing agent;
             21          .    amends provisions related to the county adoption of a financial administration
             22      ordinance;
             23          .    enacts provisions related to a county auditor's review, investigation, and payment of
             24      a claim against a county;
             25          .    amends provisions related to a county legislative body's authority to examine and
             26      audit certain accounts;
             27          .    amends provisions related to a county executive's authority to examine and audit


             28      certain accounts; and
             29          .    makes technical corrections.
             30      Money Appropriated in this Bill:
             31          None
             32      Other Special Clauses:
             33          None
             34      Utah Code Sections Affected:
             35      AMENDS:
             36          17-8-7, as last amended by Laws of Utah 2011, Chapter 297
             37          17-24-1, as last amended by Laws of Utah 2005, Chapter 105
             38          17-24-4, as last amended by Laws of Utah 2001, Chapter 241
             39          17-36-3, as last amended by Laws of Utah 2001, Chapter 241
             40          17-36-10, as last amended by Laws of Utah 2011, Chapter 297
             41          17-36-11, as last amended by Laws of Utah 1979, Chapter 62
             42          17-36-15, as last amended by Laws of Utah 1999, Chapters 230 and 300
             43          17-36-20, as enacted by Laws of Utah 1975, Chapter 22
             44          17-36-43, as last amended by Laws of Utah 1993, Chapter 227
             45          17-50-401, as last amended by Laws of Utah 2008, Chapter 382
             46          17-52-401, as last amended by Laws of Utah 2011, Chapter 297
             47          17-53-212, as renumbered and amended by Laws of Utah 2000, Chapter 133
             48          17-53-303, as enacted by Laws of Utah 2000, Chapter 133
             49          20A-7-101, as last amended by Laws of Utah 2011, Chapters 17 and 331
             50      ENACTS:
             51          17-19a-101, Utah Code Annotated 1953
             52          17-19a-102, Utah Code Annotated 1953
             53          17-19a-201, Utah Code Annotated 1953
             54          17-19a-202, Utah Code Annotated 1953
             55          17-19a-203, Utah Code Annotated 1953
             56          17-19a-204, Utah Code Annotated 1953
             57          17-19a-205, Utah Code Annotated 1953
             58          17-19a-206, Utah Code Annotated 1953


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


             90      precipitation. The provisions of [Sections 17-19-1 to 17-19-28 ] Chapter 19a, County Auditor
             91      relating to budgeting do not apply to appropriations necessitated by such an emergency.
             92          Section 2. Section 17-19a-101 is enacted to read:
             93     
CHAPTER 19a. COUNTY AUDITOR

             94     
Part 1. General Provisions

             95          17-19a-101. Title.
             96          This chapter is known as "County Auditor."
             97          Section 3. Section 17-19a-102 is enacted to read:
             98          17-19a-102. Definitions.
             99          (1) "Account" or "accounting" means:
             100          (a) the systematic recording, classification, or summarizing of a financial transaction or
             101      event; and
             102          (b) the interpretation or presentation of the result of an action described in Subsection
             103      (1)(a).
             104          (2) "Audit" or "auditing" means an examination that is a formal analysis of a county
             105      account or county financial record:
             106          (a) to verify accuracy, completeness, or compliance with an internal control;
             107          (b) to give a fair presentation of a county's financial status; and
             108          (c) that conforms to the uniform classification of accounts established by the state
             109      auditor.
             110          (3) "Book" means a financial record of the county, regardless of a record's format.
             111          (4) (a) "Budget" or "budgeting" means a process or activity conducted by the budget
             112      officer related to the preparation or presentation of a proposed or tentative budget as provided
             113      in Chapter 36, Uniform Fiscal Procedures Act for Counties.
             114          (b) "Budget" or "budgeting" includes:
             115          (i) a revenue projection;
             116          (ii) a budget request compilation; or
             117          (iii) the performance of an activity described in Subsection (4)(b)(i) or (ii).
             118          (5) "Budget officer" means a person described in Section 17-19a-204 .
             119          (6) (a) "Claim" means under the color of law:
             120          (i) a demand presented for money or damages; or


             121          (ii) a cause of action presented for money or damages.
             122          (b) "Claim" does not mean a routine, uncontested, or regular payment, including a bill,
             123      purchase, or payroll.
             124          (7) "Performance audit" means a review and audit as described in Subsection
             125      17-19a-207 (3) of a county program, county operation, county management system, or county
             126      agency to:
             127          (a) review procedures, activities, or policies; and
             128          (b) determine whether the county is achieving the best levels of economy, efficiency,
             129      effectiveness, and compliance.
             130          Section 4. Section 17-19a-201 is enacted to read:
             131     
Part 2. Qualifications, Powers, and Duties

             132          17-19a-201. Qualifications for office.
             133          In addition to the requirements listed in Section 17-16-1 , a person filing a declaration
             134      for candidacy for the office of county auditor in a first class county shall be a certified public
             135      accountant licensed in Utah.
             136          Section 5. Section 17-19a-202 is enacted to read:
             137          17-19a-202. Seal.
             138          (1) The county legislative body shall furnish the auditor a seal in accordance with
             139      Subsection (2).
             140          (2) The seal shall contain or be impressed with:
             141          (a) the name of the county; and
             142          (b) "State of Utah, County Auditor."
             143          Section 6. Section 17-19a-203 is enacted to read:
             144          17-19a-203. General duties.
             145          A county auditor shall perform:
             146          (1) in accordance with Section 17-19a-206 , an accounting duty or service described in
             147      this chapter or otherwise required by law in accordance with generally accepted government
             148      accounting standards;
             149          (2) an auditing duty or service described in this chapter or otherwise required by law in
             150      accordance with generally accepted government auditing standards; and
             151          (3) other duties as may be required by law.


             152          Section 7. Section 17-19a-204 is enacted to read:
             153          17-19a-204. Budget officer.
             154          The budget officer of a county is designated by:
             155          (1) in a county commission form of government described in Section 17-52-501 or an
             156      expanded county commission form of government described in Section 17-52-502 , the county
             157      commission;
             158          (2) in the county executive-council form of government described in Section
             159      17-52-504 , the county executive; or
             160          (3) in the council-manager form of government described in Section 17-52-505 , the
             161      county council.
             162          Section 8. Section 17-19a-205 is enacted to read:
             163          17-19a-205. Auditing services.
             164          (1) (a) Except as provided in Subsection (1)(b) and subject to Subsection (2), a county
             165      auditor is authorized to audit the financial records and accounts of a:
             166          (i) county office;
             167          (ii) county department;
             168          (iii) county division;
             169          (iv) county justice court; or
             170          (v) any other county entity.
             171          (b) The county auditor may not audit the auditor's own office, including any of the
             172      county auditor's financial records or accounts.
             173          (2) The county auditor shall perform an audit:
             174          (a) as needed, as defined by good management practices and the standards of the
             175      profession; and
             176          (b) based on the auditor's professional judgement, taking into account considerations
             177      related to risk and materiality.
             178          (3) Nothing in this section may be construed to affect a county legislative body's
             179      authority under Section 17-53-212 or a county executive's authority under Section 17-53-303 .
             180          Section 9. Section 17-19a-206 is enacted to read:
             181          17-19a-206. Accounting services.
             182          (1) Except as provided in Subsection (2), the county auditor shall provide accounting


             183      services for the county as established by ordinance.
             184          (2) The county legislative body may, by ordinance, delegate an accounting service
             185      provided for or executed on behalf of the entire county:
             186          (a) to the county executive; or
             187          (b) to an office's or department's officer or director.
             188          (3) If a county legislative body delegates an accounting service in accordance with
             189      Subsection (2), the legislative body shall make the delegation:
             190          (a) in accordance with good management practice to foster effectiveness, efficiency,
             191      and the adequate protection of a county asset; and
             192          (b) by considering appropriate checks and balances within county government.
             193          Section 10. Section 17-19a-207 is enacted to read:
             194          17-19a-207. Performance audit services.
             195          (1) (a) A county auditor shall, under the direction and supervision of the county
             196      legislative body or county executive and subject to Subsections (1)(b) and (2), provide
             197      performance audit services for a county office, department, division, or other county entity.
             198          (b) A county auditor may not conduct a performance audit of the auditor's own office.
             199          (2) The county legislative body or county executive shall establish the goals, nature,
             200      and limitations of a performance audit and related services.
             201          (3) A performance audit conducted in accordance with this section shall include a
             202      review and audit of the following:
             203          (a) the honesty and integrity of financial and other affairs;
             204          (b) the accuracy and reliability of financial and management reports;
             205          (c) the adequacy of financial controls to safeguard public funds;
             206          (d) the management and staff adherence to statute, ordinance, policies, and legislative
             207      intent;
             208          (e) the economy, efficiency, and effectiveness of operational performance;
             209          (f) the accomplishment of intended objectives; and
             210          (g) whether management, financial, and information systems are adequate and
             211      effective.
             212          Section 11. Section 17-19a-208 is enacted to read:
             213          17-19a-208. Management of financial records -- Disposal of records.


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

             238          17-19a-301. Payments and warrants.
             239          (1) (a) Subject to Subsection (1)(b), if a debt or demand against a county is fixed by
             240      law, the debt or demand shall be paid by:
             241          (i) subject to Subsection (2)(a), a warrant drawn by the county auditor or the county
             242      treasurer; or
             243          (ii) subject to Subsection (2)(b), a check or other payment mechanism as may be
             244      adopted in accordance with Chapter 36, Uniform Fiscal Procedures Act for Counties.


             245          (b) Subsection (1)(a) does not apply to a debt or demand against the county that is, in
             246      accordance with law, audited by another person or tribunal.
             247          (2) (a) The county auditor shall:
             248          (i) distinctly specify on a warrant the liability for which the warrant is made and when
             249      the liability accrued; and
             250          (ii) notify the county treasurer:
             251          (A) as described in Subsection (3)(b), of the date, amount, payee of, and number
             252      assigned to a warrant; and
             253          (B) of the aggregate amount of all contemporaneous payments by warrant.
             254          (b) The county auditor shall notify the county treasurer and county executive:
             255          (i) as described in Subsection (3)(b), of the amount and payee of all payments made by
             256      check or other payment mechanism;
             257          (ii) as described in Subsection (3)(b), the date of and number assigned to a check or
             258      other payment mechanism; and
             259          (iii) the aggregate amount of a contemporaneous payment.
             260          (3) (a) As used in this Subsection (3), "remuneration" means a warrant, check, or other
             261      payment mechanism.
             262          (b) For a remuneration issued by the county auditor, the auditor shall:
             263          (i) number each remuneration consecutively, commencing annually on the first day of
             264      January; and
             265          (ii) state on the remuneration:
             266          (A) the number of the remuneration;
             267          (B) the date of payment;
             268          (C) the amount of the payment made;
             269          (D) the name of the person to whom payable; and
             270          (E) the purpose for which the remuneration was made.
             271          (4) The county auditor shall dispose of a payment not presented for collection in
             272      accordance with Title 67, Chapter 4a, Unclaimed Property Act.
             273          (5) The county legislative body may delegate by ordinance the processing of payments
             274      and warrants in accordance with Section 17-19a-206 .
             275          Section 14. Section 17-19a-401 is enacted to read:


             276     
Part 4. Investigations

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


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


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


             369      assets, as reflected by its books of account.
             370          (17) "General Fund" means the fund used to account for all receipts, disbursements,
             371      assets, liabilities, reserves, fund balances, revenues, and expenditures not required to be
             372      accounted for in other funds.
             373          (18) "Interfund loan" means a loan of cash from one fund to another, subject to future
             374      repayment; but it does not constitute an expenditure or a use of retained earnings, fund balance,
             375      or unappropriated surplus of the lending fund.
             376          (19) "Last completed fiscal period" means the fiscal period next preceding the current
             377      period.
             378          (20) "Modified accrual basis of accounting" means a method under which expenditures
             379      other than accrued interest on general long-term debt are recorded at the time liabilities are
             380      incurred and revenues are recorded when they become measurable and available to finance
             381      expenditures of the current period.
             382          (21) "Municipal capital project" means the acquisition, construction, or improvement
             383      of capital assets that facilitate providing municipal service.
             384          (22) "Municipal service" means a service not provided on a countywide basis and not
             385      accounted for in an enterprise fund, and includes police patrol, fire protection, culinary or
             386      irrigation water retail service, water conservation, local parks, sewers, sewage treatment and
             387      disposal, cemeteries, garbage and refuse collection, street lighting, airports, planning and
             388      zoning, local streets and roads, curb, gutter, and sidewalk maintenance, and ambulance service.
             389          (23) "Retained earnings" means that part of the net earnings retained by an enterprise
             390      or internal service fund which is not segregated or reserved for any specific purpose.
             391          (24) "Special fund" means any fund other than the General Fund, such as those
             392      described in Section 17-36-6 .
             393          (25) "Unappropriated surplus" means that part of a fund which is not appropriated for
             394      an ensuing budget period.
             395          (26) "Warrant" means an order in a specific amount drawn upon the treasurer by the
             396      auditor.
             397          Section 18. Section 17-36-10 is amended to read:
             398           17-36-10. Preparation of tentative budget.
             399          (1) On or before the first day of the next to last month of every fiscal period, the budget


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


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


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


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


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


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


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


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


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


             679      initiative or referendum petition.
             680          (10) "Local attorney" means the county attorney, city attorney, or town attorney in
             681      whose jurisdiction a local initiative or referendum petition is circulated.
             682          (11) "Local clerk" means the county clerk, city recorder, or town clerk in whose
             683      jurisdiction a local initiative or referendum petition is circulated.
             684          (12) (a) "Local law" includes an ordinance, resolution, master plan, and any
             685      comprehensive zoning regulation adopted by ordinance or resolution.
             686          (b) "Local law" does not include an individual property zoning decision.
             687          (13) "Local legislative body" means the legislative body of a county, city, or town.
             688          (14) "Local obligation law" means a local law passed by the local legislative body
             689      regarding the issuance of a bond, note, lease, finance agreement, or other similar obligation.
             690          (15) "Measure" means a proposed constitutional amendment, an initiative, or
             691      referendum.
             692          (16) "Referendum" means a process by which a law passed by the Legislature or by a
             693      local legislative body is submitted or referred to the voters for their approval or rejection.
             694          (17) "Referendum packet" means a copy of the referendum petition, a copy of the law
             695      being submitted or referred to the voters for their approval or rejection, and the signature
             696      sheets, all of which have been bound together as a unit.
             697          (18) (a) "Signature" means a holographic signature.
             698          (b) "Signature" does not mean an electronic signature.
             699          (19) "Signature sheets" means sheets in the form required by this chapter that are used
             700      to collect signatures in support of an initiative or referendum.
             701          (20) "Sponsors" means the legal voters who support the initiative or referendum and
             702      who sign the application for petition copies.
             703          (21) "Sufficient" means that the signatures submitted in support of an initiative or
             704      referendum petition have been certified and verified as required by this chapter.
             705          (22) "Verified" means acknowledged by the person circulating the petition as required
             706      in Sections 20A-7-205 and 20A-7-305 .
             707          Section 28. Repealer.
             708          This bill repeals:
             709          Section 17-19-1, County auditor's powers and duties.


             710          Section 17-19-3, Payments -- Notification.
             711          Section 17-19-5, Numbering of payments -- Payments not presented for collection.
             712          Section 17-19-6, Books to show receipts and disbursements.
             713          Section 17-19-7, Current accounts with treasurer.
             714          Section 17-19-8, Administration of oaths -- Subpoena power.
             715          Section 17-19-9, Books open to inspection.
             716          Section 17-19-12, Joint statement with treasurer.
             717          Section 17-19-13, Seal.
             718          Section 17-19-14, Duties -- Omnibus provision.
             719          Section 17-19-19, Budget officer -- Departmental revenue and expenditure reports.
             720          Section 17-19-28, Destruction of fee statements, warrants and claims filed for 10
             721      years.
             722          Section 17-19-29, Monthly report to state treasurer.




Legislative Review Note
    as of 1-20-12 1:12 PM


Office of Legislative Research and General Counsel


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