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Second Substitute S.B. 124

Senator Curtis S. Bramble proposes the following substitute bill:


             1     
COUNTY AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: Gregory H. Hughes

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


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


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


             88      or counties, or that if there are not sufficient funds available in the county general fund for such
             89      purpose, the county legislative body may, during any such emergency so declared by them,
             90      assess, levy, and direct the county to collect annually to aid in any program of increased
             91      precipitation. The provisions of [Sections 17-19-1 to 17-19-28 ] Chapter 19a, County Auditor
             92      relating to budgeting do not apply to appropriations necessitated by such an emergency.
             93          Section 2. Section 17-19a-101 is enacted to read:
             94     
CHAPTER 19a. COUNTY AUDITOR

             95     
Part 1. General Provisions

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


             119          (5) "Budget officer" means a person described in Section 17-19a-204 .
             120          (6) (a) "Claim" means under the color of law:
             121          (i) a demand presented for money or damages; or
             122          (ii) a cause of action presented for money or damages.
             123          (b) "Claim" does not mean a routine, uncontested, or regular payment, including a bill,
             124      purchase, or payroll.
             125          (7) "Performance audit" means a review and audit as described in Subsection
             126      17-19a-207 (3) of a county program, county operation, county management system, or county
             127      agency to:
             128          (a) review procedures, activities, or policies; and
             129          (b) determine whether the county is achieving the best levels of economy, efficiency,
             130      effectiveness, and compliance.
             131          Section 4. Section 17-19a-201 is enacted to read:
             132     
Part 2. Qualifications, Powers, and Duties

             133          17-19a-201. Qualifications for office.
             134          In addition to the requirements listed in Section 17-16-1 , a person filing a declaration
             135      for candidacy on or after the effective date of this bill for the office of county auditor in a first
             136      class county shall:
             137          (1) be a:
             138          (a) certified public accountant;
             139          (b) be a certified management accountant;
             140          (c) be a certified internal auditor;
             141          (d) be a certified information systems auditor; or
             142          (e) be a certified fraud examiner; or
             143          (2) have three years of experience working in the office of a county auditor.
             144          Section 5. Section 17-19a-202 is enacted to read:
             145          17-19a-202. Seal.
             146          (1) The county legislative body shall furnish the auditor a seal in accordance with
             147      Subsection (2).
             148          (2) The seal shall contain or be impressed with:
             149          (a) the name of the county; and


             150          (b) "State of Utah, County Auditor."
             151          Section 6. Section 17-19a-203 is enacted to read:
             152          17-19a-203. General duties.
             153          A county auditor shall perform:
             154          (1) in accordance with Section 17-19a-206 , an accounting duty or service described in
             155      this chapter or otherwise required by law;
             156          (2) an auditing duty or service described in this chapter or otherwise required by law;
             157      and
             158          (3) other duties as may be required by law.
             159          Section 7. Section 17-19a-204 is enacted to read:
             160          17-19a-204. Budget officer.
             161          The budget officer of a county is designated by:
             162          (1) in a county commission form of government described in Section 17-52-501 or an
             163      expanded county commission form of government described in Section 17-52-502 , the county
             164      commission;
             165          (2) in the county executive-council form of government described in Section
             166      17-52-504 , the county executive; or
             167          (3) in the council-manager form of government described in Section 17-52-505 , the
             168      county council.
             169          Section 8. Section 17-19a-205 is enacted to read:
             170          17-19a-205. Auditing services.
             171          (1) (a) Except as provided in Subsection (1)(b) and subject to Subsection (2), a county
             172      auditor is authorized to audit the financial records and accounts of a:
             173          (i) county office;
             174          (ii) county department;
             175          (iii) county division;
             176          (iv) county justice court; or
             177          (v) any other county entity.
             178          (b) The county auditor may not audit the auditor's own office, including any of the
             179      county auditor's financial records or accounts.
             180          (2) The county auditor shall perform an audit:


             181          (a) as needed, as defined by good management practices and the standards of the
             182      profession; and
             183          (b) based on the auditor's professional judgement, taking into account considerations
             184      related to risk and materiality.
             185          (3) Nothing in this section may be construed to affect a county legislative body's
             186      authority under Section 17-53-212 or a county executive's authority under Section 17-53-303 .
             187          Section 9. Section 17-19a-206 is enacted to read:
             188          17-19a-206. Accounting services.
             189          (1) Except as provided in Subsection (2), the county auditor shall provide accounting
             190      services for the county as established by ordinance.
             191          (2) The county legislative body may, by ordinance, delegate an accounting service
             192      provided for or executed on behalf of the entire county:
             193          (a) to the county executive; or
             194          (b) to an office's or department's officer or director.
             195          (3) If a county legislative body delegates an accounting service in accordance with
             196      Subsection (2), the legislative body shall make the delegation:
             197          (a) in accordance with good management practice to foster effectiveness, efficiency,
             198      and the adequate protection of a county asset; and
             199          (b) by considering appropriate checks and balances within county government.
             200          Section 10. Section 17-19a-207 is enacted to read:
             201          17-19a-207. Performance audit services.
             202          (1) (a) A county auditor shall, under the direction and supervision of the county
             203      legislative body or county executive and subject to Subsections (1)(b) and (2), provide
             204      performance audit services for a county office, department, division, or other county entity.
             205          (b) A county auditor may not conduct a performance audit of the auditor's own office.
             206          (2) The county legislative body or county executive shall establish the goals and nature
             207      of a performance audit and related services.
             208          (3) A performance audit conducted in accordance with this section may include a
             209      review and audit of the following:
             210          (a) the honesty and integrity of financial and other affairs;
             211          (b) the accuracy and reliability of financial and management reports;


             212          (c) the adequacy of financial controls to safeguard public funds;
             213          (d) the management and staff adherence to statute, ordinance, policies, and legislative
             214      intent;
             215          (e) the economy, efficiency, and effectiveness of operational performance;
             216          (f) the accomplishment of intended objectives; and
             217          (g) whether management, financial, and information systems are adequate and
             218      effective.
             219          Section 11. Section 17-19a-208 is enacted to read:
             220          17-19a-208. Management of financial records -- Disposal of records.
             221          (1) A county auditor shall:
             222          (a) maintain the books of the county in such a manner as will show the amount of
             223      receipts from and disbursement of a county office, department, division, or other county entity;
             224          (b) keep accounts current with the county treasurer;
             225          (c) preserve a document, book, record, or paper that the county legislative body
             226      requires the auditor to keep in the auditor's office; and
             227          (d) make an item described in Subsection (1)(c) available for public inspection during
             228      office hours.
             229          (2) The county auditor shall, in accordance with Title 63G, Chapter 2, Government
             230      Records Access and Management Act, remove from the auditor's files and destroy or otherwise
             231      dispose of:
             232          (a) fee statements of a county officer;
             233          (b) county warrants; and
             234          (c) claims against the county.
             235          Section 12. Section 17-19a-209 is enacted to read:
             236          17-19a-209. Reporting -- State treasurer -- County legislative body.
             237          (1) On or before the last day of each month, the county auditor shall submit a report to
             238      the state treasurer regarding the collection, care, and disbursement of state money by the county
             239      during the preceding month.
             240          (2) The county auditor and the county treasurer shall, as required by the county
             241      legislative body, make a joint report to the county executive and the county legislative body
             242      accounting for the financial condition of the county.


             243          Section 13. Section 17-19a-301 is enacted to read:
             244     
Part 3. Payments and Warrants

             245          17-19a-301. Payments and warrants.
             246          (1) (a) Subject to Subsection (1)(b), if a debt or demand against a county is fixed by
             247      law, the debt or demand shall be paid by:
             248          (i) subject to Subsection (2)(a), a warrant drawn by the county auditor or the county
             249      treasurer; or
             250          (ii) subject to Subsection (2)(b), a check or other payment mechanism as may be
             251      adopted in accordance with Chapter 36, Uniform Fiscal Procedures Act for Counties.
             252          (b) Subsection (1)(a) does not apply to a debt or demand against the county that is, in
             253      accordance with law, audited by another person or tribunal.
             254          (2) (a) The county auditor shall:
             255          (i) distinctly specify on a warrant the liability for which the warrant is made and when
             256      the liability accrued; and
             257          (ii) notify the county treasurer:
             258          (A) as described in Subsection (3)(b), of the date, amount, payee of, and number
             259      assigned to a warrant; and
             260          (B) of the aggregate amount of all contemporaneous payments by warrant.
             261          (b) The county auditor shall notify the county treasurer and county executive:
             262          (i) as described in Subsection (3)(b), of the amount and payee of all payments made by
             263      check or other payment mechanism;
             264          (ii) as described in Subsection (3)(b), the date of and number assigned to a check or
             265      other payment mechanism; and
             266          (iii) the aggregate amount of a contemporaneous payment.
             267          (3) (a) As used in this Subsection (3), "remuneration" means a warrant, check, or other
             268      payment mechanism.
             269          (b) For a remuneration issued by the county auditor, the auditor shall:
             270          (i) number each remuneration consecutively, commencing annually on the first day of
             271      January; and
             272          (ii) state on the remuneration:
             273          (A) the number of the remuneration;


             274          (B) the date of payment;
             275          (C) the amount of the payment made;
             276          (D) the name of the person to whom payable; and
             277          (E) the purpose for which the remuneration was made.
             278          (4) The county auditor shall dispose of a payment not presented for collection in
             279      accordance with Title 67, Chapter 4a, Unclaimed Property Act.
             280          (5) The county legislative body may delegate by ordinance the processing of payments
             281      and warrants in accordance with Section 17-19a-206 .
             282          Section 14. Section 17-19a-401 is enacted to read:
             283     
Part 4. Investigations

             284          17-19a-401. County auditor investigative powers -- Report of findings.
             285          (1) (a) A county auditor:
             286          (i) may conduct an investigation of an issue or action associated with or related to the
             287      auditor's statutory duties, including investigating a book or account of a county officer, county
             288      office, or other county entity; and
             289          (ii) may not conduct an investigation of an issue or action that is not associated with or
             290      related to the auditor's statutory duties.
             291          (b) A county officer, employee, or other county administrative entity shall grant the
             292      county auditor complete and free access to a book requested by the county auditor in
             293      accordance with Subsection (1)(a)(i).
             294          (c) A county auditor, with the assistance of the county or district attorney, may:
             295          (i) administer an oath or affirmation; or
             296          (ii) issue an administrative subpoena for a witness or document necessary to the
             297      performance of the auditor's statutory duties.
             298          (2) If the county auditor, after a complete investigation, finds that a book or account of
             299      a county officer, office, or other county administrative entity is not kept in accordance to law,
             300      or that an officer, office, or other county administrative entity has made an incorrect or
             301      improper financial report, the county auditor shall prepare a report of the auditor's findings and
             302      submit a copy of the report to the county executive.
             303          (3) If a county auditor, after a complete investigation, finds that a justice court judge
             304      has not kept a book or account according to law, or that the justice court judge has made an


             305      incorrect or improper financial report, the auditor shall prepare a report of the auditor's findings
             306      and submit a copy of the report to the state court administrator, the county executive, and the
             307      county legislative body.
             308          Section 15. Section 17-24-1 is amended to read:
             309           17-24-1. General duties of treasurer.
             310          The county treasurer shall:
             311          (1) receive all money belonging to the county and all other money by law directed to be
             312      paid to the treasurer, including proceeds of bonds, notes, or other evidences of indebtedness
             313      issued under Title 11, Chapter 14, Local Government Bonding Act;
             314          (2) deposit and invest all money received under Title 51, Chapter 7, State Money
             315      Management Act;
             316          (3) keep a record of the receipts and expenditures of all such money;
             317          (4) disburse county money:
             318          (a) on a county warrant issued by the county auditor; or
             319          (b) subject to [Sections 17-19-1 , 17-19-3 , and 17-19-5 ] Section 17-19a-301 , by a
             320      county check or such other payment mechanism as may be adopted pursuant to Chapter 36,
             321      Uniform Fiscal Procedures Act for Counties;
             322          (5) perform the duties assigned to the treasurer under Title 59, Chapter 2, Part 13,
             323      Collection of Taxes;
             324          (6) perform the duties under Title 59, Chapter 2, Part 13, Collection of Taxes, that have
             325      been reassigned to the treasurer in an ordinance adopted under Section 17-16-5.5 ; and
             326          (7) perform other duties that are required by law or ordinance.
             327          Section 16. Section 17-24-4 is amended to read:
             328           17-24-4. Payment of warrants, checks, or other instruments.
             329          (1) When a warrant is presented for payment and there is money in the treasury, the
             330      treasurer shall pay it.
             331          (2) Upon receiving the notice from the county auditor under [Subsection
             332      17-19-3 (3)(b)] Section 17-19a-301 and if there is adequate money in the treasury, the treasurer
             333      shall, by check or other payment mechanism, make any payment not already paid by warrant.
             334          (3) Notwithstanding Subsections (1) and (2), the treasurer has no obligation to pay any
             335      warrant or to issue any check or other payment instrument before receiving the certified list


             336      under Subsection 17-20-1.7 (4).
             337          Section 17. Section 17-36-3 is amended to read:
             338           17-36-3. Definitions.
             339          As used in this chapter:
             340          (1) "Accrual basis of accounting" means a method where revenues are recorded when
             341      earned and expenditures recorded when they become liabilities notwithstanding that the receipt
             342      of the revenue or payment of the expenditure may take place in another accounting period.
             343          (2) "Appropriation" means an allocation of money for a specific purpose.
             344          (3) (a) "Budget" means a plan for financial operations for a fiscal period, embodying
             345      estimates for proposed expenditures for given purposes and the means of financing the
             346      expenditures.
             347          (b) "Budget" may refer to the budget of a fund for which a budget is required by law, or
             348      collectively to the budgets for all those funds.
             349          (4) "Budgetary fund" means a fund for which a budget is required, such as those
             350      described in Section 17-36-8 .
             351          (5) "Budget officer" means [the county auditor, county clerk, or county executive as
             352      provided in Subsection 17-19-19 (1)] a person described in Section 17-19a-204 .
             353          (6) "Budget period" means the fiscal period for which a budget is prepared.
             354          (7) "Check" means an order in a specific amount drawn upon the depositary by any
             355      authorized officer in accordance with Section [ 17-19-3 ] 17-9a-301 or 17-24-1 .
             356          (8) "Countywide service" means a service provided in both incorporated and
             357      unincorporated areas of a county.
             358          (9) "Current period" means the fiscal period in which a budget is prepared and adopted.
             359          (10) "Department" means any functional unit within a fund which carries on a specific
             360      activity.
             361          (11) "Encumbrance system" means a method of budgetary control where part of an
             362      appropriation is reserved to cover a specific expenditure by charging obligations, such as
             363      purchase orders, contracts, or salary commitments to an appropriation account. An expenditure
             364      ceases to be an encumbrance when paid or when the actual liability is entered in the books of
             365      account.
             366          (12) "Estimated revenue" means any revenue estimated to be received during the


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


             398      described in Section 17-36-6 .
             399          (25) "Unappropriated surplus" means that part of a fund which is not appropriated for
             400      an ensuing budget period.
             401          (26) "Warrant" means an order in a specific amount drawn upon the treasurer by the
             402      auditor.
             403          Section 18. Section 17-36-10 is amended to read:
             404           17-36-10. Preparation of tentative budget.
             405          (1) On or before the first day of the next to last month of every fiscal period, the budget
             406      officer shall prepare for the next budget period and file with the governing body a tentative
             407      budget for each fund for which a budget is required.
             408          (2) (a) A department for which county funds are appropriated shall file with the budget
             409      officer not less than three months before the commencement of each fiscal year on forms
             410      furnished by the budget officer a detailed estimate and statement of the revenue and necessary
             411      expenditures of the department for the next budget year.
             412          (b) The estimate and statement described in Subsection (2)(a) shall set forth:
             413          (i) the number of persons to be regularly employed;
             414          (ii) the kinds of service the department will perform;
             415          (iii) the salaries and wages the department expects to pay;
             416          (iv) the kind of work the department will perform and the improvements the
             417      department expects to make; and
             418          (v) the estimated cost of the service, work, and improvements.
             419          (c) The statement shall also record performance data expressed in work units, unit
             420      costs, man hours, and man years sufficient in detail, content, and scope to permit the budget
             421      officer to prepare and process the county budget.
             422          (3) In the preparation of the budget, the budget officer and all other county officers are
             423      subject to Sections 17-36-1 through 17-36-44 and to the uniform system of budgeting,
             424      accounting, and reporting established therein.
             425          [(2) The] (4) In the tentative budget the budget officer shall set forth in tabular form:
             426          (a) actual revenues and expenditures in the last completed fiscal period;
             427          (b) estimated total revenues and expenditures for the current fiscal period;
             428          (c) the estimated available revenues and expenditures for the ensuing budget period


             429      computed by determining:
             430          (i) the estimated expenditure for each fund after review of each departmental budget
             431      request;
             432          (ii) (A) the total revenue requirements of the fund;
             433          (B) the part of the total revenue that will be derived from revenue sources other than
             434      property tax; and
             435          (C) the part of the total revenue that shall be derived from property taxes; and
             436          (d) if required by the governing body, actual performance experience to the extent
             437      available in work units, unit costs, man hours, and man years for each budgeted fund that
             438      includes an appropriation for salaries or wages for the last completed fiscal period and the first
             439      eight months of the current fiscal period if the county is on an annual fiscal period, or the first
             440      20 months of the current fiscal period if the county is on a biennial fiscal period, together with
             441      the total estimated performance data of like character for the current fiscal period and for the
             442      ensuing budget period.
             443          [(3)] (5) The budget officer may recommend modification of any departmental budget
             444      request under Subsection [(2)] (4)(c)(i) before it is filed with the governing body, if each
             445      department head has been given an opportunity to be heard concerning the modification.
             446          [(4) Each] (6) (a) A tentative budget shall contain the estimates of expenditures
             447      submitted by any department together with specific work programs and other supportive data as
             448      the governing body requests. [The]
             449          (b) The budget officer shall include with the tentative budget [shall be accompanied]
             450      by a supplementary estimate of all capital projects or planned capital projects within the budget
             451      period and within the next three succeeding years.
             452          [(5) (a) Each] (7) (a) A budget officer that submits a tentative budget [submitted] in a
             453      county with a population in excess of 25,000 determined [pursuant to] in accordance with
             454      Section 17-36-4 shall [be accompanied by] include with the tentative budget a budget message
             455      in explanation of the budget.
             456          (b) The budget message shall contain an outline of the proposed financial policies of
             457      the county for the budget period and describe the important features of the budgetary plan. It
             458      shall also state the reasons for changes from the previous fiscal period in appropriation and
             459      revenue items and explain any major changes in financial policy.


             460          (c) A budget message for counties with a population of less than 25,000 is
             461      recommended but not incumbent upon the budget officer.
             462          [(6) The] (8) (a) The governing body shall review, consider, and adopt a tentative
             463      budget [shall be reviewed, considered, and tentatively adopted by the governing body] in a
             464      regular or special meeting called for that purpose. [It may thereafter be amended or revised by
             465      the governing body prior to public hearings thereon, except that no]
             466          (b) (i) Subject to Subsection (8)(b)(ii), the governing body may thereafter amend or
             467      revise the tentative budget prior to public hearings on the tentative budget.
             468          (ii) A governing body may not:
             469          (A) reduce below the required minimum an appropriation required for debt retirement
             470      and interest; or [reduction, pursuant to Section 17-36-17 , of any deficits which exist may be
             471      reduced below the required minimum.]
             472          (B) reduce, in accordance with Section 17-36-17 , an existing deficit.
             473          Section 19. Section 17-36-11 is amended to read:
             474           17-36-11. Tentative budget -- Public record prior to adoption.
             475          The tentative budget and all supportive schedules and data shall be a public record
             476      available for inspection during business hours at the [offices] office of the [county clerk or
             477      auditor] budget officer for at least 10 days prior to the public hearing on the adoption of a final
             478      budget.
             479          Section 20. Section 17-36-15 is amended to read:
             480           17-36-15. Adoption of budget -- Immunity.
             481          (1) (a) On or before the last day of each fiscal period, the governing body by resolution
             482      shall adopt the budget [which, subject to further amendment, shall thereafter be].
             483          (b) A budget adopted in accordance with Subsection (1)(a) is, unless amended, in
             484      effect for the next fiscal period. [A]
             485          (c) The budget officer shall:
             486          (i) certify a copy of the final budget, and of any subsequent budget amendment
             487      [thereof, shall be certified by the budget officer and filed]; and
             488          (ii) file a copy with the state auditor not later than 30 days after [its adoption. A copy,
             489      similarly certified, shall be filed] the day on which the governing body adopts the budget.
             490          (d) The budget officer shall file a certified copy of the budget in the office of the


             491      budget officer for inspection by the public during business hours.
             492          (2) (a) Except as provided in Subsection (2)(b), a county officer or county employee
             493      may not file a legal action in state or federal court against the county, a department, or a county
             494      officer for any matter related to the following:
             495          (i) the adoption of a county budget;
             496          (ii) a county appropriation;
             497          (iii) a county personnel allocation; or
             498          (iv) a fund related to the county budget, a county appropriation, or a county personnel
             499      allocation.
             500          (b) A county or district attorney may enforce a procedural requirement that governs the
             501      adoption or approval of a budget in accordance with this chapter.
             502          Section 21. Section 17-36-20 is amended to read:
             503           17-36-20. Purchases or encumbrances by purchasing agent.
             504          [All purchases or all encumbrances]
             505          (1) A person may not make a purchase or incur an encumbrance on behalf of [any] a
             506      county [shall be made or incurred only upon] unless that person acts in accordance with an
             507      order by, or approval of, the person duly authorized to act as purchasing agent for the county,
             508      except encumbrances or expenditures directly investigated and [reported by the county auditor
             509      and approved by the governing body] specifically approved by the executive or legislative
             510      body.
             511          (2) Unless otherwise provided by the governing body, the budget officer or [such] the
             512      budget officer's agents shall serve as a purchasing agent.
             513          Section 22. Section 17-36-43 is amended to read:
             514           17-36-43. Financial administration ordinance -- Purposes.
             515          The county legislative body, after consultation with the county auditor, may adopt a
             516      financial administration ordinance authorizing the county auditor, county executive, county
             517      manager, or [appointed administrator], in the case of county operated hospitals or mental health
             518      districts, an appointed administrator, to act as the financial officer for the purpose of approving:
             519          (1) payroll checks, if the checks are prepared in accordance with a salary schedule
             520      established in a personnel ordinance or resolution; or
             521          (2) routine expenditures, such as utility bills, payroll-related expenses, supplies,


             522      materials, and payments on county-approved contracts and capital expenditures which are
             523      referenced in the budget document and approved by an appropriation resolution adopted for the
             524      current fiscal year.
             525          Section 23. Section 17-50-401 is amended to read:
             526           17-50-401. Review of claims by county executive -- Auditor review -- Attorney
             527      review -- Claim requirements -- Approval or disapproval of claim -- Written explanation
             528      of claim process.
             529          (1) Subject to Subsection (3), each county executive shall review each claim, as
             530      defined in Section 17-9a-102 , against the county and disapprove or, if payment appears to the
             531      county executive to be just, lawful, and properly due and owing, approve the claim.
             532          (2) Upon receiving a notice of claim under Section 63G-7-401 , the county clerk shall
             533      deliver the notice of claim to the county executive.
             534          (3) (a) The county executive shall forward all claims regarding liability or attorney fees
             535      to the county attorney, or, in a county that has a district attorney but not a county attorney, to
             536      the district attorney for the attorney's review and recommendation to the county executive
             537      regarding liability and payment.
             538          (b) Except as provided in Section 17-50-405 , the county executive shall forward all
             539      claims requesting payment for goods or services to the county auditor for the auditor's review
             540      and recommendation, subject to Subsection (7), to the county executive.
             541          (4) Each claim for goods or services against a county shall:
             542          (a) itemize the claim, giving applicable names, dates, and particular goods provided or
             543      services rendered;
             544          (b) if the claim is for service of process, state the character of process served, upon
             545      whom served, the number of days engaged, and the number of miles traveled;
             546          (c) be duly substantiated as to its correctness and as to the fact that it is justly due;
             547          (d) if the claim is for materials furnished, state to whom the materials were furnished,
             548      by whom ordered, and the quantity and price agreed upon; and
             549          (e) be presented to the county executive within a year after the last item of the account
             550      or credit accrued.
             551          (5) If the county executive refuses to hear or consider a claim because it is not properly
             552      made out, the county executive shall cause notice of the refusal to be given to the claimant or


             553      the claimant's agent and shall allow a reasonable amount of time for the claim to be properly
             554      itemized and substantiated.
             555          (6) Each county shall prepare and make available to a person submitting or intending to
             556      submit a claim under this part a written explanation, in simple and easy to understand language,
             557      of how to submit a claim to the county and of the county's process for receiving, reviewing, and
             558      deciding a claim.
             559          (7) Upon receiving a claim in accordance with Subsection (3)(b), the county auditor
             560      shall:
             561          (a) (i) investigate, examine, review, and inspect the claim; and
             562          (ii) (A) recommend that the county executive approve or reject the claim; and
             563          (B) endorse the recommendation;
             564          (b) after completing the investigation, examination, and inspection, report the claim
             565      and the recommendation described in Subsection (7)(a)(ii) to the county executive; and
             566          (c) keep a complete record of the claim, the claim recommendation, the reasons for the
             567      recommendation, and the county executive's final action as described in Subsection (8).
             568          (8) After receiving the county or district attorney's recommendation in accordance with
             569      Subsection (3)(a), or the county auditor's recommendation in accordance with Subsection
             570      (3)(b), the county executive shall decide whether to approve or reject a claim.
             571          (9) (a) The county auditor shall pay, subject to Subsection (9)(b), a claim approved by
             572      the county executive in accordance with Subsection (8) by:
             573          (i) a warrant drawn by the auditor on the county treasurer in favor of the person entitled
             574      to payment; or
             575          (ii) a county check or other payment mechanism as may be adopted in accordance with
             576      Chapter 36, Uniform Fiscal Procedures Act for Counties.
             577          (b) The county auditor may not pay a claim against the county unless:
             578          (i) the auditor:
             579          (A) receives from the county executive a certified list described in Subsection
             580      17-20-1.7 (4); and
             581          (B) has complied with the recommendation and other requirements of Subsection (7);
             582      and
             583          (ii) the county executive has approved the claim in accordance with Subsection (8).


             584          [(7)] (10) Nothing in this section may be construed to modify the requirements of
             585      Section 63G-7-401 .
             586          Section 24. Section 17-52-401 is amended to read:
             587           17-52-401. Contents of proposed optional plan.
             588          (1) Each optional plan proposed under this chapter:
             589          (a) shall propose the adoption of one of the forms of county government listed in
             590      Subsection 17-52-402 (1)(a);
             591          (b) shall contain detailed provisions relating to the transition from the existing form of
             592      county government to the form proposed in the optional plan, including provisions relating to
             593      the:
             594          (i) election or appointment of officers specified in the optional plan for the new form of
             595      county government;
             596          (ii) retention, elimination, or combining of existing offices and, if an office is
             597      eliminated, the division or department of county government responsible for performing the
             598      duties of the eliminated office;
             599          (iii) continuity of existing ordinances and regulations;
             600          (iv) continuation of pending legislative, administrative, or judicial proceedings;
             601          (v) making of interim and temporary appointments; and
             602          (vi) preparation, approval, and adjustment of necessary budget appropriations;
             603          (c) shall specify the date it is to become effective if adopted, which may not be earlier
             604      than the first day of January next following the election of officers under the new plan; and
             605          (d) notwithstanding any other provision of this title and except with respect to an
             606      optional plan that proposes the adoption of the county commission or expanded county
             607      commission form of government, with respect to the county budget[: (i) may provide that the
             608      county auditor's role is to be the budget officer, to project county revenues, and to prepare a
             609      tentative budget to present to the county executive; and (ii)] shall provide that the county
             610      executive's role is to prepare and present a proposed budget to the county legislative body, and
             611      the county legislative body's role is to adopt a final budget.
             612          (2) Subject to Subsection (3), an optional plan may include provisions that are
             613      considered necessary or advisable to the effective operation of the proposed optional plan.
             614          (3) An optional plan may not include any provision that is inconsistent with or


             615      prohibited by the Utah Constitution or any statute.
             616          (4) Each optional plan proposing to change the form of government to a form under
             617      Section 17-52-504 or 17-52-505 shall:
             618          (a) provide for the same executive and legislative officers as are specified in the
             619      applicable section for the form of government being proposed by the optional plan;
             620          (b) provide for the election of the county council;
             621          (c) specify the number of county council members, which shall be an odd number from
             622      three to nine;
             623          (d) specify whether the members of the county council are to be elected from districts,
             624      at large, or by a combination of at large and by district;
             625          (e) specify county council members' qualifications and terms and whether the terms are
             626      to be staggered;
             627          (f) contain procedures for filling vacancies on the county council, consistent with the
             628      provisions of Section 20A-1-508 ; and
             629          (g) state the initial compensation, if any, of county council members and procedures for
             630      prescribing and changing compensation.
             631          (5) Each optional plan proposing to change the form of government to the county
             632      commission form under Section 17-52-501 or the expanded county commission form under
             633      Section 17-52-502 shall specify:
             634          (a) (i) for the county commission form of government, that the county commission
             635      shall have three members; or
             636          (ii) for the expanded county commission form of government, whether the county
             637      commission shall have five or seven members;
             638          (b) the terms of office for county commission members and whether the terms are to be
             639      staggered;
             640          (c) whether members of the county commission are to be elected from districts, at
             641      large, or by a combination of at large and from districts; and
             642          (d) if any members of the county commission are to be elected from districts, the
             643      district residency requirements for those commission members.
             644          Section 25. Section 17-53-212 is amended to read:
             645           17-53-212. Examination and audit of accounts.


             646          (1) A county legislative body may examine and audit the accounts of all officers having
             647      the 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 26. Section 17-53-303 is amended to read:
             652           17-53-303. Examination and audit of accounts.
             653          (1) The county executive may examine and audit the accounts of all officers having the
             654      care, management, collection, or disbursement of money belonging to the county or
             655      appropriated by law or otherwise for its use and benefit.
             656          (2) Nothing in this section may be construed to affect a county auditor's authority under
             657      Chapter 19a, County Auditor.
             658          Section 27. Section 20A-7-101 is amended to read:
             659           20A-7-101. Definitions.
             660          As used in this chapter:
             661          (1) "Budget officer" means:
             662          (a) for a county, the person designated as budget officer in Section [ 17-19-19 ]
             663      17-9a-204 ;
             664          (b) for a city, the person designated as budget officer in Subsection 10-6-106 (5); or
             665          (c) for a town, the town council.
             666          (2) "Certified" means that the county clerk has acknowledged a signature as being the
             667      signature of a registered voter.
             668          (3) "Circulation" means the process of submitting an initiative or referendum petition
             669      to legal voters for their signature.
             670          (4) "Final fiscal impact statement" means a financial statement prepared after voters
             671      approve an initiative that contains the information required by Subsection 20A-7-202.5 (2) or
             672      20A-7-502.5 (2).
             673          (5) "Initial fiscal impact estimate" means a financial statement prepared according to
             674      the terms of Section 20A-7-202.5 or 20A-7-502.5 after the filing of an application for an
             675      initiative petition.
             676          (6) "Initiative" means a new law proposed for adoption by the public as provided in


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


             708          (20) "Sponsors" means the legal voters who support the initiative or referendum and
             709      who sign the application for petition copies.
             710          (21) "Sufficient" means that the signatures submitted in support of an initiative or
             711      referendum petition have been certified and verified as required by this chapter.
             712          (22) "Verified" means acknowledged by the person circulating the petition as required
             713      in Sections 20A-7-205 and 20A-7-305 .
             714          Section 28. Repealer.
             715          This bill repeals:
             716          Section 17-19-1, County auditor's powers and duties.
             717          Section 17-19-3, Payments -- Notification.
             718          Section 17-19-5, Numbering of payments -- Payments not presented for collection.
             719          Section 17-19-6, Books to show receipts and disbursements.
             720          Section 17-19-7, Current accounts with treasurer.
             721          Section 17-19-8, Administration of oaths -- Subpoena power.
             722          Section 17-19-9, Books open to inspection.
             723          Section 17-19-12, Joint statement with treasurer.
             724          Section 17-19-13, Seal.
             725          Section 17-19-14, Duties -- Omnibus provision.
             726          Section 17-19-19, Budget officer -- Departmental revenue and expenditure reports.
             727          Section 17-19-28, Destruction of fee statements, warrants and claims filed for 10
             728      years.
             729          Section 17-19-29, Monthly report to state treasurer.
             730          Section 29. Effective date.
             731          If approved by two-thirds of all the members elected to each house, this bill takes effect
             732      upon approval by the governor, or the day following the constitutional time limit of Utah
             733      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             734      the date of veto override.
             735          Section 30. Revisor instructions.
             736          The Legislature intends that the Office of Legislative Research and General Counsel, in
             737      preparing the Utah Code database for publication, replace the language in Section 17-19a-201
             738      from "the effective date of this bill" with the bill's actual effective date.


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