H.B. 311

This document includes House Floor Amendments incorporated into the bill on Tue, Feb 25, 2014 at 3:01 PM by lerror. -->              1     

BUDGETING AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brad R. Wilson

             5     
Senate Sponsor: Jerry W. Stevenson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to budgeting requirements.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires the Office of Legislative Fiscal Analyst to:
             13              .    prepare, before each annual general session of the Legislature, a summary
             14      showing the current status of debt, long-term liabilities, H. contingent liabilities, .H
             14a      General Fund
             15      borrowing, reserves, fund and nonlapsing balances, and cash funded capital
             16      investments as compared to the past nine fiscal years; and
             17              .    make recommendations for addressing the items in the upcoming annual general
             18      session of the Legislature;
             19          .    requires the Office of Legislative Fiscal Analyst to include in the review and
             20      analysis of revenue estimates for existing and proposed revenue a comparison of
             21      current estimates to 15-year trends by tax type;
             22          .    requires the Office of Legislative Fiscal Analyst to report the review and analysis of
             23      revenue estimates for existing and proposed revenue acts to the Executive
             24      Appropriations Committee of the Legislature before each upcoming annual general
             25      session of the Legislature;
             26          .    requires the governor to include in the proposed budget submitted to the presiding
             27      officer of each house of the Legislature a projection of:


             28              .    estimated revenues by major tax type; and
             29              .    15-year trends for each major tax type; and
             30          .    makes technical corrections.
             31      Money Appropriated in this Bill:
             32          None
             33      Other Special Clauses:
             34          None
             35      Utah Code Sections Affected:
             36      AMENDS:
             37           36-12-13 , as last amended by Laws of Utah 2013, Chapter 190
             38           63J-1-201 , as last amended by Laws of Utah 2013, Chapters 158, 167, and 413
             39     
             40      Be it enacted by the Legislature of the state of Utah:
             41          Section 1. Section 36-12-13 is amended to read:
             42           36-12-13. Office of Legislative Fiscal Analyst established -- Powers, functions,
             43      and duties -- Qualifications.
             44          (1) There is established an Office of Legislative Fiscal Analyst as a permanent staff
             45      office for the Legislature.
             46          (2) The powers, functions, and duties of the Office of Legislative Fiscal Analyst under
             47      the supervision of the fiscal analyst are:
             48          (a) to analyze in detail the executive budget before the convening of each legislative
             49      session and make recommendations to the Legislature on each item or program appearing in
             50      the executive budget;
             51          (b) to prepare cost estimates on all proposed bills that anticipate state government
             52      expenditures;
             53          (c) to prepare cost estimates on all proposed bills that anticipate expenditures by
             54      county, municipal, local district, or special service district governments;
             55          (d) to prepare cost estimates on all proposed bills that anticipate direct expenditures by
             56      any Utah resident, and the cost to the overall impacted Utah resident population;
             57          (e) to prepare a review and analysis of revenue estimates for existing and proposed
             58      revenue acts, which shall include a comparison of current estimates to 15-year trends by tax


             59      type;
             60          (f) to report instances in which the administration may be failing to carry out the
             61      expressed intent of the Legislature;
             62          (g) to direct attention to each new proposed service contained in the governor's budget;
             63          (h) to direct attention to each budget item previously denied by the Legislature;
             64          (i) to propose and analyze statutory changes for more effective operational economies
             65      or more effective administration;
             66          (j) to prepare, before each annual general session of the Legislature, a summary
             67      showing the current status of the following as compared to the past nine fiscal years:
             68          (i) debt;
             69          (ii) long-term liabilities;
             69a           H. (iii) contingent liabilities;
             70           [ (iii) ] (iv) .H General Fund borrowing;
             71           H. [ (iv) ] (v) .H reserves;
             72           H. [ (v) ] (vi) .H fund and nonlapsing balances; and
             73           H. [ (vi) ] (vii) .H cash funded capital investments;
             74          (k) to make recommendations for addressing the items described in Subsection (2)(j) in
             75      the upcoming annual general session of the Legislature;
             76          [(j)] (l) to prepare, after each session of the Legislature, a summary showing the effect
             77      of the final legislative program on the financial condition of the state;
             78          [(k)] (m) to conduct organizational and management improvement studies;
             79          [(l)] (n) to prepare and deliver upon request of any interim committee or the Legislative
             80      Management Committee, reports on the finances of the state and on anticipated or proposed
             81      requests for appropriations;
             82          [(m)] (o) to recommend areas for research studies by the executive department or the
             83      interim committees;
             84          [(n)] (p) to assist in prescribing the format for the presentation of the governor's budget
             85      to facilitate program and in-depth review of state expenditures in accordance with Sections
             86      63J-1-701 and 63J-1-702 ;
             87          [(o)] (q) to recommend to the appropriations subcommittees the agencies or programs
             88      for which an in-depth budget review should be requested, and to recommend to the Legislative
             89      Management Committee the priority in which the request should be made;


             90          [(p)] (r) to appoint and develop a professional staff within budget limitations;
             91          [(q)] (s) to prepare and submit the annual budget request for the office;
             92          [(r)] (t) to develop a taxpayer receipt:
             93          (i) available to taxpayers through a website; and
             94          (ii) that allows a taxpayer to view on the website an estimate of how the taxpayer's tax
             95      dollars are expended for government purposes; and
             96          [(s)] (u) to publish or provide other information on taxation and government
             97      expenditures that may be accessed by the public.
             98          (3) The Office of Legislative Fiscal Analyst shall report the review and analysis
             99      required under Subsection (2)(e) to the Executive Appropriations Committee of the Legislature
             100      before each upcoming annual general session of the Legislature.
             101          [(3)] (4) (a) In accordance with Subsection [(3)] (4)(b) and subject to Subsection [(3)]
             102      (4)(c), the Office of Legislative Fiscal Analyst shall submit an annual report to the Executive
             103      Appropriations Committee of the Legislature, at the committee's November meeting, on funds
             104      expended by the state during the preceding state fiscal year to provide financial assistance or
             105      services to low-income individuals and families.
             106          (b) The report described in Subsection [(3)] (4)(a) shall:
             107          (i) separate the funds expended into categories by program, service, or population
             108      served;
             109          (ii) indicate whether the expended funds described in Subsection [(3)] (4)(a) are state
             110      or federal funds; and
             111          (iii) include a total of all state funds and federal funds expended by the state in the
             112      preceding fiscal year to provide financial assistance or services to low-income individuals and
             113      families.
             114          (c) If the Executive Appropriations Committee of the Legislature does not meet in
             115      November, the Office of Legislative Fiscal Analyst shall submit the report described in
             116      Subsection [(3)] (4)(a) at the committee's next meeting.
             117          [(4)] (5) The legislative fiscal analyst shall have a master's degree in public
             118      administration, political science, economics, accounting, or the equivalent in academic or
             119      practical experience.
             120          [(5)] (6) In carrying out the duties provided for in this section, the legislative fiscal


             121      analyst may obtain access to all records, documents, and reports necessary to the scope of the
             122      legislative fiscal analyst's duties according to the procedures contained in Title 36, Chapter 14,
             123      Legislative Subpoena Powers.
             124          Section 2. Section 63J-1-201 is amended to read:
             125           63J-1-201. Governor's proposed budget to Legislature -- Contents -- Preparation
             126      -- Appropriations based on current tax laws and not to exceed estimated revenues.
             127          (1) The governor shall deliver, not later than 30 days before the date the Legislature
             128      convenes in the annual general session, a confidential draft copy of the governor's proposed
             129      budget recommendations to the Office of the Legislative Fiscal Analyst according to the
             130      requirements of this section.
             131          (2) (a) When submitting a proposed budget, the governor shall, within the first three
             132      days of the annual general session of the Legislature, submit to the presiding officer of each
             133      house of the Legislature:
             134          (i) a proposed budget for the ensuing fiscal year;
             135          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
             136      with each change clearly itemized and classified; and
             137          (iii) as applicable, a document showing proposed changes in estimated revenues that
             138      are based on changes in state tax laws or rates.
             139          (b) The proposed budget shall include:
             140          (i) a projection of [the total]:
             141          (A) estimated revenues[, including] by major tax type;
             142          (B) 15-year trends for each major tax type;
             143          (C) estimated receipts of federal funds[,]; and
             144          (D) appropriations for the next fiscal year;
             145          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
             146      federal grants or assistance programs included in the budget;
             147          (iii) a plan of proposed changes to appropriations and estimated revenues for the next
             148      fiscal year that is based upon the current fiscal year state tax laws and rates and considers
             149      projected changes in federal grants or assistance programs included in the budget;
             150          (iv) an itemized estimate of the proposed changes to appropriations for:
             151          (A) the Legislative Department as certified to the governor by the president of the


             152      Senate and the speaker of the House;
             153          (B) the Executive Department;
             154          (C) the Judicial Department as certified to the governor by the state court
             155      administrator;
             156          (D) changes to salaries payable by the state under the Utah Constitution or under law
             157      for lease agreements planned for the next fiscal year; and
             158          (E) all other changes to ongoing or one-time appropriations, including dedicated
             159      credits, restricted funds, nonlapsing balances, grants, and federal funds;
             160          (v) for each line item, the average annual dollar amount of staff funding associated
             161      with all positions that were vacant during the last fiscal year;
             162          (vi) deficits or anticipated deficits;
             163          (vii) the recommendations for each state agency for new full-time employees for the
             164      next fiscal year, which shall also be provided to the State Building Board as required by
             165      Subsection 63A-5-103 (2);
             166          (viii) any explanation that the governor may desire to make as to the important features
             167      of the budget and any suggestion as to methods for the reduction of expenditures or increase of
             168      the state's revenue; and
             169          (ix) information detailing certain fee increases as required by Section 63J-1-504 .
             170          (3) For the purpose of preparing and reporting the proposed budget:
             171          (a) The governor shall require the proper state officials, including all public and higher
             172      education officials, all heads of executive and administrative departments and state institutions,
             173      bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
             174      state money, and all institutions applying for state money and appropriations, to provide
             175      itemized estimates of changes in revenues and appropriations.
             176          (b) The governor may require the persons and entities subject to Subsection (3)(a) to
             177      provide other information under these guidelines and at times as the governor may direct,
             178      which may include a requirement for program productivity and performance measures, where
             179      appropriate, with emphasis on outcome indicators.
             180          (c) The governor may require representatives of public and higher education, state
             181      departments and institutions, and other institutions or individuals applying for state
             182      appropriations to attend budget meetings.


             183          (4) In submitting the budgets for the Departments of Health and Human Services and
             184      the Office of the Attorney General, the governor shall consider a separate recommendation in
             185      the governor's budget for changes in funds to be contracted to:
             186          (a) local mental health authorities under Section 62A-15-110 ;
             187          (b) local substance abuse authorities under Section 62A-15-110 ;
             188          (c) area agencies under Section 62A-3-104.2 ;
             189          (d) programs administered directly by and for operation of the Divisions of Substance
             190      Abuse and Mental Health and Aging and Adult Services;
             191          (e) local health departments under Title 26A, Chapter 1, Local Health Departments;
             192      and
             193          (f) counties for the operation of Children's Justice Centers under Section 67-5b-102 .
             194          (5) (a) In making budget recommendations, the governor shall consider an amount
             195      sufficient to grant the following entities the same percentage increase for wages and benefits
             196      that the governor includes in the governor's budget for persons employed by the state:
             197          (i) local health departments, local mental health authorities, local substance abuse
             198      authorities, and area agencies;
             199          (ii) local conservation districts and Utah Association of Conservation District
             200      employees, as related to the budget for the Department of Agriculture; and
             201          (iii) employees of corporations that provide direct services under contract with:
             202          (A) the Utah State Office of Rehabilitation and the Division of Services for People
             203      with Disabilities;
             204          (B) the Division of Child and Family Services; and
             205          (C) the Division of Juvenile Justice Services within the Department of Human
             206      Services.
             207          (b) If the governor does not include in the governor's budget an amount sufficient to
             208      grant an increase for any entity described in Subsection (5)(a), the governor shall include a
             209      message to the Legislature regarding the governor's reason for not including that amount.
             210          (6) The governor shall include in the governor's budget the state's portion of the budget
             211      for the Utah Communications Agency Network established in Title 63C, Chapter 7, Utah
             212      Communications Agency Network Act.
             213          (7) (a) The governor shall include a separate recommendation in the governor's budget


             214      for funds to maintain the operation and administration of the Utah Comprehensive Health
             215      Insurance Pool. In making the recommendation, the governor may consider:
             216          (i) actuarial analysis of growth or decline in enrollment projected over a period of at
             217      least three years;
             218          (ii) actuarial analysis of the medical and pharmacy claims costs projected over a period
             219      of at least three years;
             220          (iii) the annual Medical Care Consumer Price Index;
             221          (iv) the annual base budget for the pool established by the Business, Economic
             222      Development, and Labor Appropriations Subcommittee for each fiscal year;
             223          (v) the growth or decline in insurance premium taxes and fees collected by the State
             224      Tax Commission and the Insurance Department; and
             225          (vi) the availability of surplus General Fund revenue under Section 63J-1-312 and
             226      Subsection 59-14-204 (5).
             227          (b) In considering the factors in Subsections (7)(a)(i), (ii), and (iii), the governor may
             228      consider the actuarial data and projections prepared for the board of the Utah Comprehensive
             229      Health Insurance Pool as it develops the governor's financial statements and projections for
             230      each fiscal year.
             231          (8) (a) In submitting the budget for the Department of Public Safety, the governor shall
             232      include a separate recommendation in the governor's budget for maintaining a sufficient
             233      number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
             234      or below the number specified in Subsection 32B-1-201 (2).
             235          (b) If the governor does not include in the governor's budget an amount sufficient to
             236      maintain the number of alcohol-related law enforcement officers described in Subsection
             237      (8)(a), the governor shall include a message to the Legislature regarding the governor's reason
             238      for not including that amount.
             239          (9) (a) The governor may revise all estimates, except those relating to the Legislative
             240      Department, the Judicial Department, and those providing for the payment of principal and
             241      interest to the state debt and for the salaries and expenditures specified by the Utah
             242      Constitution or under the laws of the state.
             243          (b) The estimate for the Judicial Department, as certified by the state court
             244      administrator, shall also be included in the budget without revision, but the governor may make


             245      separate recommendations on the estimate.
             246          (10) The total appropriations requested for expenditures authorized by the budget may
             247      not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
             248      fiscal year.
             249          (11) If any item of the budget as enacted is held invalid upon any ground, the invalidity
             250      does not affect the budget itself or any other item in it.




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    as of 1-27-14 4:00 PM


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