This document includes House Committee Amendments incorporated into the bill on Mon, Feb 22, 2016 at 2:33 PM by cynthiahopkin.
Representative Justin L. Fawson proposes the following substitute bill:


1     
FEDERAL FUNDS PROCEDURES ACT AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Justin L. Fawson

5     
Senate Sponsor: Ann Millner

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Federal Funds Procedures Act by amending provisions relating to
10     federal funds review and approval requirements.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides and amends definitions;
14          ▸     provides that the State Board of Education is subject to the review and approval
15     requirements for federal funds;
16          ▸     provides that a federal funds request summary includes certain documentation
17     awarding an agency a grant of federal funds;
18          ▸     provides that if certain documentation is not included in a federal funds request
19     summary, it shall be submitted before expending a federal funds grant;
20          ▸     specifies procedures for the State Board of Education to approve certain new federal
21     funds requests; and
22          ▸     makes technical changes.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          None
27     Utah Code Sections Affected:
28     AMENDS:
29          63J-5-102, as last amended by Laws of Utah 2015, Chapter 190
30          63J-5-202, as last amended by Laws of Utah 2013, Chapter 310
31          63J-5-203, as renumbered and amended by Laws of Utah 2008, Chapter 382
32          63J-5-204, as last amended by Laws of Utah 2011, Chapter 326
33     ENACTS:
34          63J-5-203.5, Utah Code Annotated 1953
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 63J-5-102 is amended to read:
38          63J-5-102. Definitions.
39          (1) As used in this chapter:
40          (a) (i) "Agency" means a department, division, committee, commission, council, court,
41     or other administrative subunit of the state.
42          (ii) "Agency" includes:
43          (A) executive branch entities [and];
44          (B) judicial branch entities; and
45          (C) the State Board of Education.
46          (iii) "Agency" does not mean higher education institutions or political subdivisions.
47          (b) (i) "Federal funds" means cash or other money received from the United States
48     government or from other individuals or entities for or on behalf of the United States and
49     deposited with the state treasurer or any agency of the state.
50          (ii) "Federal funds" includes federal assistance and federal assistance programs,
51     however described.
52          (iii) "Federal funds" does not include money received from the United States
53     government to reimburse the state for money expended by the state.
54          (c) "Federal funds reauthorization" means:
55          (i) the formal submission from an agency to the federal government applying for or
56     seeking reauthorization of federal funds which the state is currently receiving;
57          (ii) the formal submission from an agency to the federal government applying for or
58     seeking reauthorization to participate in a federal program in which the state is currently
59     participating that will result in federal funds being transferred to an agency; or
60          (iii) that period after the first year of a previously authorized and awarded grant or
61     funding award, during which federal funds are disbursed or are scheduled to be disbursed after
62     the first year because the term of the grant or financial award extends for more than one year.
63          (d) (i) "Federal funds request summary" means a document detailing:
64          [(i)] (A) the amount of money that is being requested or is available to be received by
65     the state from the federal government for each federal funds reauthorization or new federal
66     funds request;
67          [(ii)] (B) those federal funds reauthorizations and new federal funds requests that are
68     included as part of the agency's proposed budget for the fiscal year, and the amount of those
69     requests;
70          [(iii)] (C) the amount of new state money, if any, that will be required to receive the
71     federal funds or participate in the federal program;
72          [(iv)] (D) the number of additional permanent full-time employees, additional
73     permanent part-time employees, or combination of additional permanent full-time employees
74     and additional permanent part-time employees, if any, that the state estimates are needed in
75     order to receive the federal funds or participate in the federal program; and
76          [(v)] (E) any requirements that the state must meet as a condition for receiving the
77     federal funds or participating in the federal program.
78          (ii) "Federal funds request summary" includes, if available:
79          (A) the letter awarding an agency a grant of federal funds; or
80          (B) other official documentation awarding an agency a grant of federal funds.
81          (e) "Federal maintenance of effort requirements" means any matching, level of effort,
82     or earmarking requirements, as defined in Office of Management and Budget Ĥ→ [Circular A-133,
83     Compliance Requirement G] requirements ←Ĥ , that are imposed on an agency as a condition
83a     of receiving federal
84     funds.
85          (f) "Local education agency" or "LEA" means:
86          (i) a school district;
87          (ii) a charter school; or
88          (iii) the Utah Schools for the Deaf and the Blind.
89          [(f)] (g) "New federal funds" means:
90          (i) federal assistance or other federal funds that are available from the federal
91     government that:
92          (A) the state is not currently receiving; or
93          (B) exceed the federal funds amount most recently approved by the Legislature by
94     more than 25% for a federal grant or program in which the state is currently participating;
95          (ii) a federal assistance program or other federal program in which the state is not
96     currently participating; or
97          (iii) a one-time TANF request.
98          [(g)] (h) "New federal funds request" means:
99          (i) the formal submission from an agency to the federal government:
100          (A) applying for or otherwise seeking to obtain new federal funds; or
101          (B) applying for or seeking to participate in a new federal program that will result in
102     federal funds being transferred to an agency; or
103          (ii) a one-time TANF request.
104          [(h)] (i) (i) "New state money" means money, whether specifically appropriated by the
105     Legislature or not, that the federal government requires Utah to expend as a condition for
106     receiving the federal funds or participating in the federal program.
107          (ii) "New state money" includes money expended to meet federal maintenance of effort
108     requirements.
109          [(i)] (j) "One-time TANF request" means a proposed expenditure by the Department of
110     Workforce Services from its reserves of federal Temporary Assistance for Needy Families
111     funds:
112          (i) for a project or program that will last for a fixed amount of time and is not an
113     ongoing project or program of the Department of Workforce Services; and
114          (ii) that is greater than $1,000,000 over the amount most recently approved by the
115     Legislature.
116          [(j)] (k) (i) "Pass-through federal funds" means federal funds provided to an agency
117     that are distributed to local governments or private entities without being used by the agency.
118          (ii) "Pass-through federal funds" does not include federal funds provided to the State
119     Board of Education that are distributed to a local education agency or other subrecipient
120     without being used by the State Board of Education.
121          [(k)] (l) "State" means the state of Utah and all of its agencies, and any administrative
122     subunits of those agencies.
123          (2) When this chapter describes an employee as a "permanent full-time employee" or a
124     "permanent part-time employee," it is not intended to, and may not be construed to, affect the
125     employee's status as an at-will employee.
126          Section 2. Section 63J-5-202 is amended to read:
127          63J-5-202. Governor to approve certain new federal funds requests.
128          (1) (a) Before obligating the state to accept or receive new federal funds or to
129     participate in a new federal program, and no later than three months after submitting a new
130     federal funds request, and, where possible, before formally submitting the new federal funds
131     request, an executive branch agency shall submit a federal funds request summary to the
132     governor or the governor's designee for approval or rejection when:
133          (i) the state will receive total payments of $1,000,000 or less per year if the new federal
134     funds request is approved;
135          (ii) receipt of the new federal funds will require no additional permanent full-time
136     employees, permanent part-time employees, or combination of additional permanent full-time
137     employees and permanent part-time employees; and
138          (iii) no new state money will be required to match the new federal funds or to
139     implement the new federal program for which the grant is issued.
140          (b) The Governor's Office of Management and Budget shall report each new federal
141     funds request that is approved by the governor or the governor's designee and each new federal
142     funds request granted by the federal government to:
143          (i) the Legislature's Executive Appropriations Committee;
144          (ii) the Office of the Legislative Fiscal Analyst; and
145          (iii) the Office of Legislative Research and General Counsel.
146          (2) The governor or the governor's designee shall approve or reject each new federal
147     funds request submitted under the authority of this section.
148          (3) (a) If the governor or the governor's designee approves the new federal funds
149     request, the executive branch agency may accept the new federal funds or participate in the new
150     federal program.
151          (b) If the governor or the governor's designee rejects the new federal funds request, the
152     executive branch agency may not accept the new federal funds or participate in the new federal
153     program.
154          (4) If an executive branch agency fails to obtain the governor's or the governor's
155     designee's approval under this section, the governor may require the agency to:
156          (a) withdraw the new federal funds request;
157          (b) return the federal funds;
158          (c) withdraw from the federal program; or
159          (d) any combination of Subsections (4)(a), (4)(b), and (4)(c).
160          (5) If a letter or other official documentation awarding an agency a grant of federal
161     funds is not available to be included in a federal funds request summary submitted to the
162     Governor's Office of Management and Budget under this section, the agency shall submit to the
163     Governor's Office of Management and Budget the letter or other official documentation
164     awarding the agency a grant of federal funds before expending the federal funds granted.
165          Section 3. Section 63J-5-203 is amended to read:
166          63J-5-203. Judicial council to approve certain new federal funds requests.
167          (1) (a) Before obligating the state to accept or receive new federal funds or to
168     participate in a new federal program, and no later than three months after submitting a new
169     federal funds request, and, where possible, before formally submitting the new federal funds
170     request, a judicial branch agency shall submit a federal funds request summary to the Judicial
171     Council for its approval or rejection when:
172          (i) the state will receive total payments of $1,000,000 or less per year if the new federal
173     funds request is approved;
174          (ii) receipt of the new federal funds will require no additional permanent full-time
175     employees, additional permanent part-time employees, or combination of additional permanent
176     full-time employees and permanent part-time employees; and
177          (iii) no new state money will be required to match the new federal funds or to
178     implement the new federal program for which the grant is issued.
179          (b) The Judicial Council shall report each new federal funds request that is approved by
180     it and each new federal funds request granted by the federal government to:
181          (i) the Legislature's Executive Appropriations Committee;
182          (ii) the Office of the Legislative Fiscal Analyst; and
183          (iii) the Office of Legislative Research and General Counsel.
184          (2) The Judicial Council shall approve or reject each new federal funds request
185     submitted to it under the authority of this section.
186          (3) (a) If the Judicial Council approves the new federal funds request, the judicial
187     branch agency may accept the new federal funds or participate in the new federal program.
188          (b) If the Judicial Council rejects the new federal funds request, the judicial branch
189     agency may not accept the new federal funds or participate in the new federal program.
190          (4) If a judicial branch agency fails to obtain the Judicial Council's approval under this
191     section, the Judicial Council may require the agency to:
192          (a) withdraw the new federal funds request;
193          (b) return the federal funds;
194          (c) withdraw from the federal program; or
195          (d) any combination of Subsections (4)(a), (4)(b), and (4)(c).
196          (5) If a letter or other official documentation awarding a judicial branch agency a grant
197     of federal funds is not available to be included in a federal funds request summary submitted to
198     the Judicial Council under this section, the judicial branch agency shall submit to the Judicial
199     Council the letter or other official documentation awarding the judicial branch agency a grant
200     of federal funds before expending the federal funds granted.
201          Section 4. Section 63J-5-203.5 is enacted to read:
202          63J-5-203.5. State Board of Education to approve certain new federal funds
203     requests.
204          (1) (a) Before obligating the state to accept or receive new federal funds or to
205     participate in a new federal program, and no later than three months after submitting a new
206     federal funds request, and, where possible, before formally submitting the new federal funds
207     request, the State Board of Education shall review a federal funds request summary of the State
208     Board of Education when:
209          (i) the state will receive total payments of $1,000,000 or less per year if the new federal
210     funds request is approved;
211          (ii) receipt of the new federal funds will require no additional permanent full-time
212     employees, additional permanent part-time employees, or a combination of additional
213     permanent full-time employees and permanent part-time employees; and
214          (iii) no new state money will be required to match the new federal funds or to
215     implement the new federal program for which the grant is issued.
216          (b) The State Board of Education shall approve or reject each new federal funds
217     request reviewed under this section.
218          (2) The State Board of Education shall report each new federal funds request that is
219     approved by the board and each new federal funds request granted to the board by the federal
220     government to:
221          (a) the Legislature's Executive Appropriations Committee;
222          (b) the Office of the Legislative Fiscal Analyst; and
223          (c) the Office of Legislative Research and General Counsel.
224          (3) If a letter or other official documentation awarding the State Board of Education a
225     grant of federal funds is not available to be included in the federal funds request summary
226     submitted under this section, the letter or other official documentation awarding the State
227     Board of Education a grant of federal funds shall be submitted to the State Board of Education
228     before expending the federal funds granted.
229          Section 5. Section 63J-5-204 is amended to read:
230          63J-5-204. Legislative review and approval of certain federal funds requests.
231          (1) As used in this section:
232          (a) "High impact federal funds request" means a new federal funds request that will or
233     could:
234          (i) result in the state receiving total payments of $10,000,000 or more per year from the
235     federal government;
236          (ii) require the state to add 11 or more permanent full-time employees, 11 or more
237     permanent part-time employees, or combination of permanent full-time and permanent
238     part-time employees equal to 11 or more in order to receive the new federal funds or participate
239     in the new federal program; or
240          (iii) require the state to expend more than $1,000,000 of new state money in a fiscal
241     year in order to receive or administer the new federal funds or participate in the new federal
242     program.
243          (b) "Medium impact federal funds request" means a new federal funds request that will
244     or could:
245          (i) result in the state receiving total payments of more than $1,000,000 but less than
246     $10,000,000 per year from the federal government;
247          (ii) require the state to add more than zero but less than 11 permanent full-time
248     employees, more than zero but less than 11 permanent part-time employees, or a combination
249     of permanent full-time employees and permanent part-time employees equal to more than zero
250     but less than 11 in order to receive or administer the new federal funds or participate in the new
251     federal program; or
252          (iii) require the state to expend $1 to $1,000,000 of new state money in a fiscal year in
253     order to receive or administer the new federal funds or participate in the new federal program.
254          (2) (a) (i) Before obligating the state to accept or receive new federal funds or to
255     participate in a new federal program under a medium impact federal funds request that was not
256     authorized during a legislative session as provided in Section 63J-5-201, an agency shall:
257          (A) submit the federal funds request summary to the governor [or], the Judicial
258     Council, or the State Board of Education, as appropriate, for approval or rejection; and
259          (B) if the governor [or], the Judicial Council , or the State Board of Education approves
260     the new federal funds request, submit the federal funds request summary to the Legislative
261     Executive Appropriations Committee for its review and recommendations.
262          (ii) The procedures required under Subsection (2)(a)(i) shall be performed, if possible,
263     before the date that the medium impact funds request is formally submitted, but not later than
264     three months after the date of formal submission.
265          (b) The Legislative Executive Appropriations Committee shall review the federal funds
266     request summary and may:
267          (i) recommend that the agency accept the new federal funds;
268          (ii) recommend that the agency not accept the new federal funds; or
269          (iii) recommend to the governor that the governor call a special session of the
270     Legislature to review and approve or reject the acceptance of the new federal funds.
271          (3) (a) (i) Before obligating the state to accept or receive new federal funds or to
272     participate in a new federal program under a high impact federal funds request that was not
273     authorized during a legislative session as provided in Section 63J-5-201, an agency shall:
274          (A) submit the federal funds request summary to the governor [or], the Judicial
275     Council, or the State Board of Education, as appropriate, for approval or rejection; and
276          (B) if the governor [or], the Judicial Council , or the State Board of Education approves
277     the new federal funds request, submit the federal funds request summary to the Legislature for
278     its approval or rejection in an annual general session or a special session.
279          (ii) The procedures required under Subsection (3)(a)(i) shall be performed, if possible,
280     before the date that the high impact funds request is formally submitted, but not later than three
281     months after the date of formal submission.
282          (b) (i) If the Legislature approves the new federal funds request, the agency may accept
283     the new federal funds or participate in the new federal program.
284          (ii) If the Legislature fails to approve the new federal funds request, the agency may not
285     accept the new federal funds or participate in the new federal program.
286          (4) If an agency fails to comply with the procedures of this section or fails to obtain the
287     Legislature's approval:
288          (a) the governor [or], the Judicial Council, or the State Board of Education, as
289     appropriate, may require the agency to withdraw the new federal funds request or refuse or
290     return the new federal funds;
291          (b) the Legislature may, if federal law allows, opt out or decline to participate in the
292     new federal program or decline to receive the new federal funds; or
293          (c) the Legislature may reduce the agency's General Fund appropriation in an amount
294     less than, equal to, or greater than the amount of federal funds received by the agency.
295          (5) If a letter or other official documentation awarding an agency a grant of federal
296     funds is not available to be included in the agency's federal funds request summary to the
297     governor, the Judicial Council, or the State Board of Education, as appropriate, under this
298     section, the agency shall submit to the governor, the Judicial Council, or the State Board of
299     Education, as appropriate, the letter or other official documentation awarding the agency a
300     grant of federal funds before expending the federal funds granted.