Chief Sponsor: Johnny Anderson

Senate Sponsor: ____________


8     General Description:
9          This bill modifies provisions relating to subrogation.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies the costs that the Department of Transportation, the Utah Highway Patrol,
13     or an independent contractor of either may charge in connection with the provision
14     of emergency services; and
15          ▸     addresses the fees that the Department of Transportation or an independent
16     contractor may charge a liable third party relating to a claim for subrogation.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          41-6a-409, as enacted by Laws of Utah 2012, Chapters 364 and 364
24          63J-1-504, as last amended by Laws of Utah 2013, Chapter 310

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 41-6a-409 is amended to read:

28          41-6a-409. Prohibition of flat response fee for motor vehicle accident.
29          (1) The Department of Transportation or the Utah Highway Patrol Division, or a
30     person who contracts with the Department of Transportation or the Utah Highway Patrol
31     Division to provide emergency services:
32          (a) may not impose a flat fee, or collect a flat fee, from an individual involved in a
33     motor vehicle accident; and
34          (b) may only charge the individual for the actual cost of services provided in
35     responding to the motor vehicle accident, limited to:
36          (i) medical costs for:
37          (A) transporting an individual from the scene of a motor vehicle accident; or
38          (B) treatment of a person injured in a motor vehicle accident;
39          (ii) repair to damaged public property, if the individual is legally liable for the damage;
40          (iii) the cost of removing debris from public property, if the individual is legally liable
41     for the accident;
42          [(iii)] (iv) the cost of materials used in cleaning up the motor vehicle accident, if the
43     individual is legally liable for the motor vehicle accident; and
44          [(iv)] (v) towing costs.
45          (2) If the Department of Transportation or the Utah Highway Patrol Division, or a
46     person who contracts with the Department of Transportation or the Utah Highway Patrol
47     Division to provide emergency services, imposes a charge on more than one individual for the
48     actual cost of responding to a motor vehicle accident, the Department of Transportation or the
49     Utah Highway Patrol Division or the person contracting with the Department of Transportation
50     or the Utah Highway Patrol Division shall apportion the charges so that it does not receive
51     more for responding to the motor vehicle accident than the actual response cost.
52          (3) Notwithstanding the provisions of Subsection (1), if the Department of
53     Transportation contracts with an independent contractor to pursue subrogation on behalf of the
54     state for damage to public property, the independent contractor may, to the extent authorized or
55     required by the contract with the Department of Transportation:
56          (a) impose and collect a fee from a liable third party to pay the independent contractor's
57     administrative costs for administering the claim; and
58          (b) charge a liable third party for the reasonable estimated cost to repair or recover

59     property for which the state is responsible.
60          Section 2. Section 63J-1-504 is amended to read:
61          63J-1-504. Fees -- Adoption, procedure, and approval -- Establishing and
62     assessing fees without legislative approval.
63          (1) As used in this section:
64          (a) (i) "Agency" means each department, commission, board, council, agency,
65     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
66     unit, bureau, panel, or other administrative unit of the state.
67          (ii) "Agency" does not mean the Legislature or its committees.
68          (b) "Fee agency" means any agency that is authorized to establish fees.
69          (c) "Fee schedule" means the complete list of fees charged by a fee agency and the
70     amount of those fees.
71          (2) Each fee agency shall adopt a schedule of fees assessed for services provided by the
72     fee agency that are:
73          (a) reasonable, fair, and reflect the cost of services provided; and
74          (b) established according to a cost formula determined by the executive director of the
75     Governor's Office of Management and Budget and the director of the Division of Finance in
76     conjunction with the agency seeking to establish the fee.
77          (3) Except as provided in Subsection (6), a fee agency may not:
78          (a) set fees by rule; or
79          (b) create, change, or collect any fee unless the fee has been established according to
80     the procedures and requirements of this section.
81          (4) Each fee agency that is proposing a new fee or proposing to change a fee shall:
82          (a) present each proposed fee at a public hearing, subject to the requirements of Title
83     52, Chapter 4, Open and Public Meetings Act;
84          (b) increase, decrease, or affirm each proposed fee based on the results of the public
85     hearing;
86          (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as
87     part of the agency's annual appropriations request; and
88          (d) where necessary, modify the fee schedule to implement the Legislature's actions.
89          (5) (a) Each fee agency shall submit its fee schedule or special assessment amount to

90     the Legislature for its approval on an annual basis.
91          (b) The Legislature may approve, increase or decrease and approve, or reject any fee
92     submitted to it by a fee agency.
93          (6) After conducting the public hearing required by this section, a fee agency may
94     establish and assess fees without first obtaining legislative approval if:
95          (a) (i) the Legislature creates a new program that is to be funded by fees to be set by the
96     Legislature;
97          (ii) the new program's effective date is before the Legislature's next annual general
98     session; and
99          (iii) the fee agency submits the fee schedule for the new program to the Legislature for
100     its approval at a special session, if allowed in the governor's call, or at the next annual general
101     session of the Legislature, whichever is sooner;
102          (b) the Division of Occupational and Professional licensing makes a special assessment
103     against qualified beneficiaries under the Residence Lien Restriction and Lien Recovery Fund
104     Act as provided in Subsection 38-11-206(1); or
105          (c) (i) the fee agency proposes to increase or decrease an existing fee for the purpose of
106     adding or removing a transactional fee that is charged or assessed by a non-governmental third
107     party but is included as part of the fee charged by the fee agency;
108          (ii) the amount of the increase or decrease in the fee is equal to the amount of the
109     transactional fee charged or assessed by the non-governmental third party; and
110          (iii) the increased or decreased fee is submitted to the Legislature for its approval at a
111     special session, if allowed in the governor's call, or at the next annual session of the
112     Legislature, whichever is sooner.
113          (7) (a) Each fee agency that wishes to change any fee shall submit to the governor as
114     part of the agency's annual appropriation request a list that identifies:
115          (i) the title or purpose of the fee;
116          (ii) the present amount of the fee;
117          (iii) the proposed new amount of the fee;
118          (iv) the percent that the fee will have increased if the Legislature approves the higher
119     fee;
120          (v) the estimated total annual revenue change that will result from the change in the

121     fee;
122          (vi) the account or fund into which the fee will be deposited; and
123          (vii) the reason for the change in the fee.
124          (b) (i) The governor may review and approve, modify and approve, or reject the fee
125     increases.
126          (ii) The governor shall transmit the list required by Subsection (7)(a), with any
127     modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
128          (c) Bills approving any fee change shall be filed before the beginning of the
129     Legislature's annual general session, if possible.
130          (8) (a) Except as provided in Subsection (8)(b), the School and Institutional Trust
131     Lands Administration, established in Section 53C-1-201, is exempt from the requirements of
132     this section.
133          (b) The following fees of the School and Institutional Trust Lands Administration are
134     subject to the requirements of this section: application, assignment, amendment, affidavit for
135     lost documents, name change, reinstatement, grazing nonuse, extension of time, partial
136     conveyance, patent reissue, collateral assignment, electronic payment, and processing.
137          (9) This section does not apply to a fee charged by the Department of Transportation or
138     by an independent contractor of the Department of Transportation if the fee relates to the
139     exercise of the state's subrogation rights for damage to public property.

Legislative Review Note
     as of 2-19-15 3:15 PM

Office of Legislative Research and General Counsel