This document includes House Floor Amendments incorporated into the bill on Thu, Mar 5, 2015 at 11:40 AM by lerror.
Representative Sophia M. DiCaro proposes the following substitute bill:


1     
REPORTING AND EXPENDITURE OF PUBLIC FUNDS

2     
AMENDMENTS

3     
2015 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Sophia M. DiCaro

6     
Senate Sponsor: Curtis S. Bramble

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions related to fiscal matters.
11     Highlighted Provisions:
12          This bill:
13          ▸     addresses definition provisions;
14          ▸     requires the Governor's Office of Management and Budget to provide certain
15     reports;
16          ▸     modifies the date the Governor's Office of Management and Budget is to provide
17     information to the Office of Legislative Fiscal Analyst;
18          ▸     requires written agreement to provide accounting of certain money;
19          ▸     provides exemptions;
20          ▸     requires state agencies to submit reports to the Governor's Office of Management
21     and Budget;
22          ▸     repeals provisions related to a nonprofit entity's receipt of money; and
23          ▸     makes technical changes.
24     Money Appropriated in this Bill:
25          None
26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     AMENDS:
30          51-2a-102, as last amended by Laws of Utah 2014, Chapter 341
31          63J-1-201, as last amended by Laws of Utah 2014, Chapters 320, 344, and 430
32     ENACTS:
33          63J-1-220, Utah Code Annotated 1953
34     REPEALS:
35          51-2a-204, as enacted by Laws of Utah 2014, Chapter 341
36          63J-9-101, as enacted by Laws of Utah 2014, Chapter 341
37          63J-9-102, as enacted by Laws of Utah 2014, Chapter 341
38          63J-9-201, as enacted by Laws of Utah 2014, Chapter 341
39          63J-9-202, as enacted by Laws of Utah 2014, Chapter 341
40     

41     Be it enacted by the Legislature of the state of Utah:
42          Section 1. Section 51-2a-102 is amended to read:
43          51-2a-102. Definitions.
44          As used in this chapter:
45          (1) "Accounting reports" means an audit, a review, a compilation, or a fiscal report.
46          (2) "Audit" means an examination that:
47          [(a) analyzes the accounts of all officers of the entity having responsibility for the care,
48     management, collection, or disbursement of money belonging to it or appropriated by law or
49     otherwise acquired for its use or benefit;]
50          [(b)] (a) is performed in accordance with generally accepted government auditing
51     standards, or for nonprofit corporations described in Subsection (6)(f), in accordance with
52     generally accepted auditing standards; and
53          [(c)] (b) conforms to the uniform classification of accounts established or approved by
54     the state auditor or any other classification of accounts established by any federal government
55     agency.
56          (3) "Audit report" means:
57          (a) the financial statements presented in conformity with generally accepted accounting
58     principles;
59          (b) the auditor's opinion on the financial statements;
60          (c) a statement by the auditor expressing positive assurance of compliance with state
61     fiscal laws identified by the state auditor;
62          (d) a copy of the auditor's letter to management that identifies any material weakness in
63     internal controls discovered by the auditor and other financial issues related to the expenditure
64     of funds received from federal, state, or local governments to be considered by management;
65     and
66          (e) management's response to the specific recommendations.
67          (4) "Compilation" means information presented in the form of financial statements
68     presented in conformity with generally accepted accounting principles that are the
69     representation of management without the accountant undertaking to express any assurances on
70     the statements.
71          (5) "Fiscal report" means providing information detailing revenues and expenditures of
72     all funds using forms provided by the state auditor.
73          (6) "Governing board" means:
74          (a) the governing board of each political subdivision;
75          (b) the governing board of each interlocal organization having the power to tax or to
76     expend public funds;
77          (c) the governing board of any local mental health authority established under the
78     authority of Title 62A, Chapter 15, Substance Abuse and Mental Health Act;
79          (d) the governing board of any substance abuse authority established under the
80     authority of Title 62A, Chapter 15, Substance Abuse and Mental Health Act;
81          (e) the governing board of any area agency established under the authority of Title
82     62A, Chapter 3, Aging and Adult Services;
83          (f) the governing board of any nonprofit corporation that receives[: (i)] at least 50% of
84     its funds from federal, state, and local government entities through contracts; [or]
85          [(ii) an amount from state entities that is equal to or exceeds the amount specified in
86     Subsection 51-2a-201(1) that would require an audit to be made by a competent certified public
87     accountant;]
88          (g) the governing board of any other entity established by a local governmental unit
89     that receives tax exempt status for bonding or taxing purposes; and
90          (h) in municipalities organized under an optional form of municipal government, the
91     municipal legislative body.
92          (7) "Review" means performing inquiry and analytical procedures that provide the
93     accountant with a reasonable basis for expressing limited assurance that there are no material
94     modifications that should be made to the financial statements for them to be in conformity with
95     generally accepted accounting principles.
96          [(8) "State entity" means a department, commission, board, council, agency, institution,
97     officer, corporation, fund, division, office, committee, authority, laboratory, library, unit,
98     bureau, panel, or other administrative unit of the state.]
99          Section 2. Section 63J-1-201 is amended to read:
100          63J-1-201. Governor's proposed budget to Legislature -- Contents -- Preparation
101     -- Appropriations based on current tax laws and not to exceed estimated revenues.
102          (1) The governor shall deliver, not later than 30 days before the date the Legislature
103     convenes in the annual general session, a confidential draft copy of the governor's proposed
104     budget recommendations to the Office of the Legislative Fiscal Analyst according to the
105     requirements of this section.
106          (2) (a) When submitting a proposed budget, the governor shall, within the first three
107     days of the annual general session of the Legislature, submit to the presiding officer of each
108     house of the Legislature:
109          (i) a proposed budget for the ensuing fiscal year;
110          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
111     with each change clearly itemized and classified; and
112          (iii) as applicable, a document showing proposed changes in estimated revenues that
113     are based on changes in state tax laws or rates.
114          (b) The proposed budget shall include:
115          (i) a projection of:
116          (A) estimated revenues by major tax type;
117          (B) 15-year trends for each major tax type;
118          (C) estimated receipts of federal funds; and
119          (D) appropriations for the next fiscal year;
120          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
121     federal grants or assistance programs included in the budget;
122          (iii) a plan of proposed changes to appropriations and estimated revenues for the next
123     fiscal year that is based upon the current fiscal year state tax laws and rates and considers
124     projected changes in federal grants or assistance programs included in the budget;
125          (iv) an itemized estimate of the proposed changes to appropriations for:
126          (A) the Legislative Department as certified to the governor by the president of the
127     Senate and the speaker of the House;
128          (B) the Executive Department;
129          (C) the Judicial Department as certified to the governor by the state court
130     administrator;
131          (D) changes to salaries payable by the state under the Utah Constitution or under law
132     for lease agreements planned for the next fiscal year; and
133          (E) all other changes to ongoing or one-time appropriations, including dedicated
134     credits, restricted funds, nonlapsing balances, grants, and federal funds;
135          (v) for each line item, the average annual dollar amount of staff funding associated
136     with all positions that were vacant during the last fiscal year;
137          (vi) deficits or anticipated deficits;
138          (vii) the recommendations for each state agency for new full-time employees for the
139     next fiscal year, which shall also be provided to the State Building Board as required by
140     Subsection 63A-5-103(2);
141          (viii) a written description and itemized report submitted by a state agency to the
142     Governor's Office of Management and Budget under Section 63J-1-220 Ĥ→ , ←Ĥ including:
143          (A) a written description and an itemized report provided at least annually detailing the
144     expenditure of the state money, or the intended expenditure of any state money that has not
145     been spent; and
146          (B) a final written itemized report when all the state money is spent;
147          [(viii)] (ix) any explanation that the governor may desire to make as to the important
148     features of the budget and any suggestion as to methods for the reduction of expenditures or
149     increase of the state's revenue; and
150          [(ix)] (x) information detailing certain fee increases as required by Section 63J-1-504.
151          (3) For the purpose of preparing and reporting the proposed budget:
152          (a) The governor shall require the proper state officials, including all public and higher
153     education officials, all heads of executive and administrative departments and state institutions,
154     bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
155     state money, and all institutions applying for state money and appropriations, to provide
156     itemized estimates of changes in revenues and appropriations.
157          (b) The governor may require the persons and entities subject to Subsection (3)(a) to
158     provide other information under these guidelines and at times as the governor may direct,
159     which may include a requirement for program productivity and performance measures, where
160     appropriate, with emphasis on outcome indicators.
161          (c) The governor may require representatives of public and higher education, state
162     departments and institutions, and other institutions or individuals applying for state
163     appropriations to attend budget meetings.
164          (4) (a) The Governor's Office of Management and Budget shall provide to the Office of
165     Legislative Fiscal Analyst, as soon as practicable, but no later than [November 15 of each year]
166     30 days before the date the Legislature convenes in the annual general session, data, analysis,
167     or requests used in preparing the governor's budget recommendations, notwithstanding the
168     restrictions imposed on such recommendations by available revenue.
169          (b) The information under Subsection (4)(a) shall include:
170          (i) actual revenues and expenditures for the fiscal year ending the previous June 30;
171          (ii) estimated or authorized revenues and expenditures for the current fiscal year;
172          (iii) requested revenues and expenditures for the next fiscal year;
173          (iv) detailed explanations of any differences between the amounts appropriated by the
174     Legislature in the current fiscal year and the amounts reported under Subsections (4)(b)(ii) and
175     (iii);
176          (v) a statement of agency and program objectives, effectiveness measures, and program
177     size indicators; and
178          (vi) other budgetary information required by the Legislature in statute.
179          (c) The budget information under Subsection (4)(a) shall cover:
180          (i) all items of appropriation, funds, and accounts included in appropriations acts for
181     the current and previous fiscal years; and
182          (ii) any new appropriation, fund, or account items requested for the next fiscal year.
183          (d) The information provided under Subsection (4)(a) may be provided as a shared
184     record under Section 63G-2-206 as considered necessary by the Governor's Office of
185     Management and Budget.
186          (5) (a) In submitting the budget for the Department of Public Safety, the governor shall
187     include a separate recommendation in the governor's budget for maintaining a sufficient
188     number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
189     or below the number specified in Subsection 32B-1-201(2).
190          (b) If the governor does not include in the governor's budget an amount sufficient to
191     maintain the number of alcohol-related law enforcement officers described in Subsection
192     (5)(a), the governor shall include a message to the Legislature regarding the governor's reason
193     for not including that amount.
194          (6) (a) The governor may revise all estimates, except those relating to the Legislative
195     Department, the Judicial Department, and those providing for the payment of principal and
196     interest to the state debt and for the salaries and expenditures specified by the Utah
197     Constitution or under the laws of the state.
198          (b) The estimate for the Judicial Department, as certified by the state court
199     administrator, shall also be included in the budget without revision, but the governor may make
200     separate recommendations on the estimate.
201          (7) The total appropriations requested for expenditures authorized by the budget may
202     not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
203     fiscal year.
204          (8) If any item of the budget as enacted is held invalid upon any ground, the invalidity
205     does not affect the budget itself or any other item in it.
206          Section 3. Section 63J-1-220 is enacted to read:
207          63J-1-220. Reporting related to pass through money distributed by state agencies.
208          (1) As used in this section:
209          (a) "Local government entity" means a county, municipality, school district, local
210     district under Title 17B, Limited Purpose Local Government Entities - Local Districts, special
211     service district under Title 17D, Chapter 1, Special Service District Act, or any other political
212     subdivision of the state.
213          (b) Ĥ→ (i) ←Ĥ "Pass through funding" means money appropriated by the Legislature
213a      to a state
214     agency that is intended to be passed through the state agency to one or more:
215          Ĥ→ [(i)] (A) ←Ĥ local government entities;
216          Ĥ→ [(ii)] (B) ←Ĥ private organizations, including not-for-profit organizations; or
217          Ĥ→ [(iii)] (C) ←Ĥ persons in the form of a loan or grant.
218          Ĥ→ [(c)] (ii) ←Ĥ "Pass through funding" may be:
219          Ĥ→ [(i)] (A) ←Ĥ general funds, dedicated credits, or any combination of state
219a     funding sources; and
220          Ĥ→ [(ii)] (B) ←Ĥ ongoing or one-time.
221          Ĥ→ [(d)] (c) ←Ĥ "Recipient entity" means a local government entity or private entity,
221a     including a
222     nonprofit entity, that receives money by way of pass through funding from a state agency.
223          Ĥ→ [(e)] (d) ←Ĥ "State agency" means a department, commission, board, council, agency,
224     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
225     unit, bureau, panel, or other administrative unit of the executive branch of the state.
226          Ĥ→ [(f)] (e) ←Ĥ (i) "State money" means money that is owned, held, or administered
226a      by a state
227     agency and derived from state fees or tax revenues.
228          (ii) "State money" does not include contributions or donations received by a state
229     agency.
230          (2) A state agency may not provide a recipient entity state money through pass through
231     funding unless:
232          (a) the state agency enters into a written agreement with the recipient entity; and
233          (b) the written agreement described in Subsection (2)(a) requires the recipient entity to
234     provide the state agency:
235          (i) a written description and an itemized report at least annually detailing the
236     expenditure of the state money, or the intended expenditure of any state money that has not
237     been spent; and
238          (ii) a final written itemized report when all the state money is spent.
239          (3) A state agency shall provide to the Governor's Office of Management and Budget a
240     copy of a written description or itemized report received by the state agency under Subsection
241     (2).
242          (4) Notwithstanding Subsection (2), a state agency is not required to comply with this
243     section to the extent that the pass through funding is issued:
244          (a) under a competitive award process;
245          (b) in accordance with a formula enacted in statute;
246          (c) in accordance with a state program under parameters in statute or rule that guides
247     the distribution of the pass through funding; or
248          (d) under the authority of the minimum school program, as defined in Subsection
249     53A-17a-103(4)(e).
250          Section 4. Repealer.
251          This bill repeals:
252          Section 51-2a-204, Grants to nonprofit corporations -- Reporting to the state
253     auditor.
254          Section 63J-9-101, Title.
255          Section 63J-9-102, Definitions.
256          Section 63J-9-201, Conditions for providing state grant money to a nonprofit
257     entity.
258          Section 63J-9-202, Nonprofit entity's return of state money.