1     
RATE COMMITTEE AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Mike K. McKell

5     
Senate Sponsor: ____________

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




Legislative Review Note
Office of Legislative Research and General Counsel