1     
RATE COMMITTEE AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: David P. Hinkins

5     
House Sponsor: Mike K. McKell

6     

7     LONG TITLE
8     General Description:
9          This bill amends language related to a rate committee.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines the membership of a rate committee;
13          ▸     requires the rate committee to:
14               •     meet quarterly; and
15               •     recommend adjustments to service levels received by state agencies; and
16          ▸     makes technical and conforming changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          63A-1-114, as last amended by Laws of Utah 2013, Chapter 310
24          63F-1-302, as last amended by Laws of Utah 2013, Chapter 310
25          67-19-11, as last amended by Laws of Utah 2013, Chapter 310
26     

27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 63A-1-114 is amended to read:
29          63A-1-114. Rate committee -- Membership -- Duties.
30          (1) (a) There is created a Rate Committee, which shall consist of[: (i) the executive
31     director of the Governor's Office of Management and Budget, or a designee; (ii)] the executive
32     directors of [three] seven state agencies that use services and pay rates to one of the department
33     internal service funds, or their designee, appointed by the governor for a two-year term[;].
34          [(iii) the executive director of the Department of Administrative Services, or a
35     designee;]
36          [(iv) the director of the Division of Finance, or a designee; and]
37          [(v) the chief information officer.]
38          (b) (i) Of the seven state agencies represented on the rate committee under Subsection
39     (1)(a), only one of the following may be represented on the committee, if at all, at any one
40     time:
41          (A) the Governor's Office of Management and Budget;
42          (B) the Division of Finance; or
43          (C) the Department of Technology Services.
44          (ii) The department may not have a representative on the rate committee.
45          [(b)] (c) (i) The committee shall elect a chair from its members[, except that the chair
46     may not be from an agency that receives payment of a rate set by the committee].
47          (ii) Members of the committee who are state government employees and who do not
48     receive salary, per diem, or expenses from their agency for their service on the committee shall
49     receive no compensation, benefits, per diem, or expenses for the members' service on the
50     committee.
51          [(c)] (d) The Department of Administrative Services shall provide staff services to the
52     committee.
53          (2) (a) A division described in Section 63A-1-109 that manages an internal service
54     fund shall submit to the committee a proposed rate and fee schedule for services rendered by
55     the division to an executive branch entity or an entity that subscribes to services rendered by
56     the division.
57          (b) The committee shall:
58          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
59     Act;
60          (ii) meet at least quarterly to discuss service performance of each internal service fund
61     and review the proposed rate and fee schedules and may approve, increase, or decrease the rate
62     and fee;
63          (iii) recommend any adjustments to the service level received by state agencies that pay
64     rates to an internal service fund;
65          [(iii)] (iv) recommend a proposed rate and fee schedule for each internal service fund
66     to:
67          (A) the Governor's Office of Management and Budget; and
68          (B) the legislative appropriations subcommittees that, in accordance with Section
69     63J-1-410, approve the internal service fund agency's rates, fees, and budget; and
70          [(iv)] (v) review and approve, increase or decrease an interim rate, fee, or amount when
71     an internal service fund agency begins a new service or introduces a new product between
72     annual general sessions of the Legislature.
73          (c) The committee may in accordance with Subsection 63J-1-410(4), decrease a rate,
74     fee, or amount that has been approved by the Legislature.
75          Section 2. Section 63F-1-302 is amended to read:
76          63F-1-302. Information Technology Rate Committee -- Membership -- Duties.
77          (1) (a) There is created an Information Technology Rate Committee which shall consist
78     of[: (i) the executive director of the Governor's Office of Management and Budget, or a
79     designee; (ii)] the executive directors, or [their] the executive director's designee, of [three]
80     seven executive branch agencies that use services and pay rates to one of the department
81     internal service funds, appointed by the governor for a two-year term[;].
82          [(iii) the director of the Division of Finance, or a designee; and]
83          [(iv) the chief information officer.]
84          (b) (i) Of the seven executive agencies represented on the rate committee under
85     Subsection (1)(a), only one of the following may be represented on the committee, if at all, at
86     any one time:
87          (A) the Governor's Office of Management and Budget;
88          (B) the Division of Finance; or
89          (C) the Department of Administrative Services.
90          (ii) The department may not have a representative on the rate committee.
91          [(b) (i) The director of the Division of Finance shall serve as chair of the committee.]
92          (c) (i) The committee shall elect a chair from its members.
93          (ii) Members of the committee who are state government employees and who do not
94     receive salary, per diem, or expenses from their agency for their service on the committee shall
95     receive no compensation, benefits, per diem, or expenses for the member's service on the
96     committee.
97          [(c)] (d) The department shall provide staff services to the committee.
98          (2) (a) Any internal service funds managed by the department shall submit to the
99     committee a proposed rate and fee schedule for services rendered by the department to an
100     executive branch agency or an entity that subscribes to services rendered by the department.
101          (b) The committee shall:
102          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
103     Act;
104          (ii) review the proposed rate and fee schedule and determine if the proposed fee is
105     based on cost recovery as required by Subsection 63F-1-301(2)(b);
106          (iii) meet at least quarterly to discuss the service performance of each internal service
107     fund and review the proposed rate and fee schedules and may approve, increase, or decrease the
108     rate and fee;
109          (iv) recommend any adjustments to the service level received by state agencies that pay
110     rates to an internal service fund;
111          [(iv)] (v) recommend a proposed rate and fee schedule for each internal service fund to:
112          (A) the Governor's Office of Management and Budget; and
113          (B) the Office of Legislative Fiscal Analyst for review by the Legislature in accordance
114     with Section 63J-1-410, which requires the Legislature to approve the internal service fund
115     agency's rates, fees, and budget in an appropriations act; and
116          [(v)] (vi) in accordance with Section 63J-1-410, review and approve, increase or
117     decrease an interim rate, fee, or amount when an internal service fund agency begins a new
118     service or introduces a new product between annual general sessions of the Legislature, which
119     rate, fee, or amount shall be submitted to the Legislature at the next annual general session.
120          (c) The committee may, in accordance with Subsection 63J-1-410(4), decrease a rate,
121     fee, or amount that has been approved by the Legislature.
122          Section 3. Section 67-19-11 is amended to read:
123          67-19-11. Use of department facilities -- Field office facilities cost allocation --
124     Rate committee.
125          (1) (a) All officers and employees of the state and its political subdivisions shall allow
126     the department to use public buildings under their control, and furnish heat, light, and furniture,
127     for any examination, training, hearing, or investigation authorized by this chapter.
128          (b) The cost of the department's use of facilities shall be paid by the agency housing a
129     field office staff.
130          (2) The executive director shall:
131          (a) prepare an annual budget request for the department;
132          (b) submit the budget request to the governor and the Legislature; and
133          (c) before charging a fee for services provided by the department's internal service fund
134     to an executive branch agency, the executive director shall:
135          (i) submit the proposed rates, fees, and cost analysis to the Rate Committee established
136     under Subsection (3); and
137          (ii) obtain the approval of the Legislature as required under Section 63J-1-410.
138          (3) (a) There is created a Rate Committee which shall consist of[: (i) the executive
139     director of the Governor's Office of Management and Budget, or a designee; (ii)] the executive
140     directors of [three] seven state agencies that use services and pay rates to one of the department
141     internal service funds, or their designee, appointed by the governor for a two-year term[;].
142          [(iii) the director of the Division of Finance, or a designee;]
143          [(iv) the executive director of the Department of Human Resource Management, or a
144     designee; and]
145          [(v) the attorney general or designee.]
146          (b) (i) Of the seven executive agencies represented on the rate committee under
147     Subsection (3)(a), only one of the following may be represented on the committee, if at all, at
148     any one time:
149          (A) the Governor's Office of Management and Budget;
150          (B) the Division of Finance;
151          (C) the Department of Administrative Services; or
152          (D) the Department of Technology Services.
153          (ii) The department may not have a representative on the rate committee.
154          [(b)] (c) (i) The committee shall elect a chair from its members[, except that the chair
155     may not be from an agency that receives payment of a rate set by the committee].
156          (ii) Members of the committee who are state government employees and who do not
157     receive salary, per diem, or expenses from their agency for their service on the committee shall
158     receive no compensation, benefits, per diem, or expenses for the members' service on the
159     committee.
160          [(c)] (d) The [Department of Human Resource Management] department shall provide
161     staff services to the committee.
162          (4) (a) The department shall submit to the committee a proposed rate and fee schedule
163     for:
164          (i) human resource management services rendered; and
165          (ii) costs incurred by the Office of the Attorney General in defending the state in a
166     grievance under review by the Career Service Review Office.
167          (b) The committee shall:
168          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
169     Act;
170          (ii) meet at least quarterly to discuss service performance of each internal service fund
171     and review the proposed rate and fee schedules and may approve, increase, or decrease the rate
172     and fee;
173          (iii) recommend any adjustments to the service level received by state agencies that pay
174     rates to an internal service fund;
175          [(iii)] (iv) recommend a proposed rate and fee schedule for the internal service fund to:
176          (A) the Governor's Office of Management and Budget; and
177          (B) the legislative appropriations subcommittees that, in accordance with Section
178     63J-1-410, approve the internal service fund rates, fees, and budget; and
179          [(iv)] (v) review and approve, increase or decrease an interim rate, fee, or amount when
180     the department begins a new service or introduces a new product between annual general
181     sessions of the Legislature.
182          (c) The committee may in accordance with Subsection 63J-1-410(4) decrease a rate,
183     fee, or amount that has been approved by the Legislature.




Legislative Review Note
     as of 3-5-15 6:49 PM

Office of Legislative Research and General Counsel