1     
CONSTITUTIONAL DEBT

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: John Knotwell

5     
Senate Sponsor: Deidre M. Henderson

6     

7     LONG TITLE
8     General Description:
9          This bill enacts provisions relating to the constitutional debt limit.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     addresses the publication of the state's constitutional debt limit;
14          ▸     modifies the contents of the governor's proposed budget;
15          ▸     provides priority appropriation for debt service; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          63A-3-103, as last amended by Laws of Utah 2011, Chapter 79
24          63J-1-102, as enacted by Laws of Utah 2009, Chapters 183 and 368
25          63J-1-201, as last amended by Laws of Utah 2014, Chapters 320, 344, and 430
26          67-19-6, as last amended by Laws of Utah 2012, Chapter 173
27     ENACTS:

28          63J-1-205.1, Utah Code Annotated 1953
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 63A-3-103 is amended to read:
32          63A-3-103. Duties of director of division -- Application to institutions of higher
33     education.
34          (1) The director of the Division of Finance shall:
35          (a) define fiscal procedures relating to approval and allocation of funds;
36          (b) provide for the accounting control of funds;
37          (c) approve proposed expenditures for the purchase of supplies and services;
38          (d) promulgate rules that:
39          (i) establish procedures for maintaining detailed records of all types of leases;
40          (ii) account for all types of leases in accordance with generally accepted accounting
41     principles;
42          (iii) require the performance of a lease with an option to purchase study by state
43     agencies prior to any lease with an option to purchase acquisition of capital equipment; and
44          (iv) require that the completed lease with an option to purchase study be approved by
45     the director of the Division of Finance;
46          (e) if the department operates the Division of Finance as an internal service fund
47     agency in accordance with Section 63A-1-109.5, submit to the Rate Committee established in
48     Section 63A-1-114:
49          (i) the proposed rate and fee schedule as required by Section 63A-1-114; and
50          (ii) other information or analysis requested by the Rate Committee;
51          (f) oversee the Office of State Debt Collection; [and]
52          (g) publish the state's current constitutional debt limit on the Utah Public Finance
53     Website, created in Section 63A-3-402; and
54          [(g)] (h) prescribe other fiscal functions required by law or under the constitutional
55     authority of the governor to transact all executive business for the state.
56          (2) (a) Institutions of higher education are subject to the provisions of Title 63A,
57     Chapter 3, Part 1, General Provisions, and Part 2, Accounting System, only to the extent
58     expressly authorized or required by the State Board of Regents under Title 53B, State System

59     of Higher Education.
60          (b) Institutions of higher education shall submit financial data for the past fiscal year
61     conforming to generally accepted accounting principles to the director of the Division of
62     Finance.
63          (3) The Division of Finance shall prepare financial statements and other reports in
64     accordance with legal requirements and generally accepted accounting principles for the state
65     auditor's examination and certification:
66          (a) not later than 60 days after a request from the state auditor; and
67          (b) at the end of each fiscal year.
68          Section 2. Section 63J-1-102 is amended to read:
69          63J-1-102. Definitions.
70          (1) "Debt service" means the money that is required annually to cover the repayment of
71     interest and principal on state debt.
72          [(1)] (2) "Dedicated credits" means collections by an agency that are deposited directly
73     into an account for expenditure on a separate line item and program.
74          [(2)] (3) "Federal revenues" means collections by an agency from a federal source that
75     are deposited into an account for expenditure on a separate line item and program.
76          [(3)] (4) "Fixed collections" means collections that are:
77          (a) fixed at a specific amount by law or by an appropriation act; and
78          (b) required to be deposited into a separate line item and program.
79          [(4)] (5) "Free revenue" includes:
80          (a) collections that are required by law to be deposited in:
81          (i) the General Fund;
82          (ii) the Education Fund;
83          (iii) the Uniform School Fund; or
84          (iv) the Transportation Fund;
85          (b) collections that are not otherwise designated by law;
86          (c) collections that are not externally restricted; and
87          (d) collections that are not included in an approved work program.
88          [(5)] (6) "Major revenue types" means:
89          (a) free revenue;

90          (b) restricted revenue;
91          (c) dedicated credits; and
92          (d) fixed collections.
93          [(6)] (7) "Restricted revenue" means collections that are:
94          (a) deposited, by law, into a separate fund, subfund, or account; and
95          (b) designated for a specific program or purpose.
96          Section 3. Section 63J-1-201 is amended to read:
97          63J-1-201. Governor's proposed budget to Legislature -- Contents -- Preparation
98     -- Appropriations based on current tax laws and not to exceed estimated revenues.
99          (1) The governor shall deliver, not later than 30 days before the date the Legislature
100     convenes in the annual general session, a confidential draft copy of the governor's proposed
101     budget recommendations to the Office of the Legislative Fiscal Analyst according to the
102     requirements of this section.
103          (2) (a) When submitting a proposed budget, the governor shall, within the first three
104     days of the annual general session of the Legislature, submit to the presiding officer of each
105     house of the Legislature:
106          (i) a proposed budget for the ensuing fiscal year;
107          (ii) a schedule for all of the proposed changes to appropriations in the proposed budget,
108     with each change clearly itemized and classified; and
109          (iii) as applicable, a document showing proposed changes in estimated revenues that
110     are based on changes in state tax laws or rates.
111          (b) The proposed budget shall include:
112          (i) a projection of:
113          (A) estimated revenues by major tax type;
114          (B) 15-year trends for each major tax type;
115          (C) estimated receipts of federal funds; and
116          (D) appropriations for the next fiscal year;
117          (ii) the source of changes to all direct, indirect, and in-kind matching funds for all
118     federal grants or assistance programs included in the budget;
119          (iii) changes to debt service;
120          [(iii)] (iv) a plan of proposed changes to appropriations and estimated revenues for the

121     next fiscal year that is based upon the current fiscal year state tax laws and rates and considers
122     projected changes in federal grants or assistance programs included in the budget;
123          [(iv)] (v) an itemized estimate of the proposed changes to appropriations for:
124          (A) the Legislative Department as certified to the governor by the president of the
125     Senate and the speaker of the House;
126          (B) the Executive Department;
127          (C) the Judicial Department as certified to the governor by the state court
128     administrator;
129          (D) changes to salaries payable by the state under the Utah Constitution or under law
130     for lease agreements planned for the next fiscal year; and
131          (E) all other changes to ongoing or one-time appropriations, including dedicated
132     credits, restricted funds, nonlapsing balances, grants, and federal funds;
133          [(v)] (vi) for each line item, the average annual dollar amount of staff funding
134     associated with all positions that were vacant during the last fiscal year;
135          [(vi)] (vii) deficits or anticipated deficits;
136          [(vii)] (viii) the recommendations for each state agency for new full-time employees
137     for the next fiscal year, which shall also be provided to the State Building Board as required by
138     Subsection 63A-5-103(2);
139          [(viii)] (ix) any explanation that the governor may desire to make as to the important
140     features of the budget and any suggestion as to methods for the reduction of expenditures or
141     increase of the state's revenue; and
142          [(ix)] (x) information detailing certain fee increases as required by Section 63J-1-504.
143          (3) For the purpose of preparing and reporting the proposed budget:
144          (a) The governor shall require the proper state officials, including all public and higher
145     education officials, all heads of executive and administrative departments and state institutions,
146     bureaus, boards, commissions, and agencies expending or supervising the expenditure of the
147     state money, and all institutions applying for state money and appropriations, to provide
148     itemized estimates of changes in revenues and appropriations.
149          (b) The governor may require the persons and entities subject to Subsection (3)(a) to
150     provide other information under these guidelines and at times as the governor may direct,
151     which may include a requirement for program productivity and performance measures, where

152     appropriate, with emphasis on outcome indicators.
153          (c) The governor may require representatives of public and higher education, state
154     departments and institutions, and other institutions or individuals applying for state
155     appropriations to attend budget meetings.
156          (4) (a) The Governor's Office of Management and Budget shall provide to the Office of
157     Legislative Fiscal Analyst, as soon as practicable, but no later than November 15 of each year,
158     data, analysis, or requests used in preparing the governor's budget recommendations,
159     notwithstanding the restrictions imposed on such recommendations by available revenue.
160          (b) The information under Subsection (4)(a) shall include:
161          (i) actual revenues and expenditures for the fiscal year ending the previous June 30;
162          (ii) estimated or authorized revenues and expenditures for the current fiscal year;
163          (iii) requested revenues and expenditures for the next fiscal year;
164          (iv) detailed explanations of any differences between the amounts appropriated by the
165     Legislature in the current fiscal year and the amounts reported under Subsections (4)(b)(ii) and
166     (iii);
167          (v) a statement of agency and program objectives, effectiveness measures, and program
168     size indicators; and
169          (vi) other budgetary information required by the Legislature in statute.
170          (c) The budget information under Subsection (4)(a) shall cover:
171          (i) all items of appropriation, funds, and accounts included in appropriations acts for
172     the current and previous fiscal years; and
173          (ii) any new appropriation, fund, or account items requested for the next fiscal year.
174          (d) The information provided under Subsection (4)(a) may be provided as a shared
175     record under Section 63G-2-206 as considered necessary by the Governor's Office of
176     Management and Budget.
177          (5) (a) In submitting the budget for the Department of Public Safety, the governor shall
178     include a separate recommendation in the governor's budget for maintaining a sufficient
179     number of alcohol-related law enforcement officers to maintain the enforcement ratio equal to
180     or below the number specified in Subsection 32B-1-201(2).
181          (b) If the governor does not include in the governor's budget an amount sufficient to
182     maintain the number of alcohol-related law enforcement officers described in Subsection

183     (5)(a), the governor shall include a message to the Legislature regarding the governor's reason
184     for not including that amount.
185          (6) (a) The governor may revise all estimates, except those relating to the Legislative
186     Department, the Judicial Department, and those providing for the payment of principal and
187     interest to the state debt and for the salaries and expenditures specified by the Utah
188     Constitution or under the laws of the state.
189          (b) The estimate for the Judicial Department, as certified by the state court
190     administrator, shall also be included in the budget without revision, but the governor may make
191     separate recommendations on the estimate.
192          (7) The total appropriations requested for expenditures authorized by the budget may
193     not exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing
194     fiscal year.
195          (8) If any item of the budget as enacted is held invalid upon any ground, the invalidity
196     does not affect the budget itself or any other item in it.
197          Section 4. Section 63J-1-205.1 is enacted to read:
198          63J-1-205.1. Legislature to pay debt service first.
199          In appropriating money from the General Fund, the Legislature shall appropriate money
200     to debt service before making any other appropriation.
201          Section 5. Section 67-19-6 is amended to read:
202          67-19-6. Responsibilities of the executive director.
203          (1) The executive director shall:
204          (a) develop, implement, and administer a statewide program of human resource
205     management that will:
206          (i) aid in the efficient execution of public policy;
207          (ii) foster careers in public service for qualified employees; and
208          (iii) render assistance to state agencies in performing their missions;
209          (b) design and administer the state pay plan;
210          (c) design and administer the state classification system and procedures for determining
211     schedule assignments;
212          (d) design and administer the state recruitment and selection system;
213          (e) administer agency human resource practices and ensure compliance with federal

214     law, state law, and state human resource rules, including equal employment opportunity;
215          (f) consult with agencies on decisions concerning employee corrective action and
216     discipline;
217          (g) maintain central personnel records;
218          (h) perform those functions necessary to implement this chapter unless otherwise
219     assigned or prohibited;
220          (i) perform duties assigned by the governor or statute;
221          (j) adopt rules for human resource management according to the procedures of Title
222     63G, Chapter 3, Utah Administrative Rulemaking Act;
223          (k) establish and maintain a management information system that will furnish the
224     governor, the Legislature, and agencies with current information on authorized positions,
225     payroll, and related matters concerning state human resources;
226          (l) conduct research and planning activities to:
227          (i) determine and prepare for future state human resource needs;
228          (ii) develop methods for improving public human resource management; and
229          (iii) propose needed policy changes to the governor;
230          (m) study the character, causes, and extent of discrimination in state employment and
231     develop plans for its elimination through programs consistent with federal and state laws
232     governing equal employment opportunity in employment;
233          (n) when requested by counties, municipalities, and other political subdivisions of the
234     state, provide technical service and advice on human resource management at a charge
235     determined by the executive director;
236          (o) establish compensation policies and procedures for early voluntary retirement;
237          (p) confer with the heads of other agencies about human resource policies and
238     procedures;
239          (q) submit an annual report to the governor and the Legislature; and
240          (r) assist with the development of a vacant position report required under Subsection
241     63J-1-201(2)(b)[(v)](vi).
242          (2) (a) After consultation with the governor and the heads of other agencies, the
243     executive director shall establish and coordinate statewide training programs, including and
244     subject to available funding, the development of manager and supervisor training.

245          (b) The programs developed under this Subsection (2) shall have application to more
246     than one agency.
247          (c) The department may not establish training programs that train employees to
248     perform highly specialized or technical jobs and tasks.
249          (3) (a) (i) The department may collect fees for training as authorized by this Subsection
250     (3).
251          (ii) Training funded from General Fund appropriations shall be treated as a separate
252     program within the department budget.
253          (iii) All money received from fees under this section will be accounted for by the
254     department as a separate user driven training program.
255          (iv) The user training program includes the costs of developing, procuring, and
256     presenting training and development programs, and other associated costs for these programs.
257          (b) (i) Funds remaining at the end of the fiscal year in the user training program are
258     nonlapsing.
259          (ii) Each year, as part of the appropriations process, the Legislature shall review the
260     amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require
261     the department to lapse a portion of the funds.






Legislative Review Note
     as of 1-28-15 9:56 AM


Office of Legislative Research and General Counsel