1     
RATE COMMITTEE MODIFICATIONS

2     
2016 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 a rate committee to:
14               •     meet at least once each calendar year; and
15               •     discuss 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          This bill provides a coordination clause.
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     Utah Code Sections Affected by Coordination Clause:
27          67-19-11, as last amended by Laws of Utah 2013, Chapter 310
28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 63A-1-114 is amended to read:
31          63A-1-114. Rate committee -- Membership -- Duties.
32          (1) (a) There is created a rate committee, which shall consist of[: (i) the executive
33     director of the Governor's Office of Management and Budget, or a designee; (ii)] the executive
34     directors of [three] seven state agencies that use services and pay rates to one of the department
35     internal service funds, or their designee, appointed by the governor for a two-year term[;].
36          [(iii) the executive director of the Department of Administrative Services, or a
37     designee;]
38          [(iv) the director of the Division of Finance, or a designee; and]
39          [(v) the chief information officer.]
40          (b) (i) Of the seven state agencies represented on the rate committee under Subsection
41     (1)(a), only one of the following may be represented on the committee, if at all, at any one
42     time:
43          (A) the Governor's Office of Management and Budget;
44          (B) the Division of Finance; or
45          (C) the Department of Technology Services.
46          (ii) The department may not have a representative on the rate committee.
47          [(b)] (c) (i) The committee shall elect a chair from its members[, except that the chair
48     may not be from an agency that receives payment of a rate set by the committee].
49          (ii) Members of the committee who are state government employees and who do not
50     receive salary, per diem, or expenses from their agency for their service on the committee shall
51     receive no compensation, benefits, per diem, or expenses for the members' service on the
52     committee.
53          [(c)] (d) The Department of Administrative Services shall provide staff services to the
54     committee.
55          (2) (a) A division described in Section 63A-1-109 that manages an internal service
56     fund shall submit to the committee a proposed rate and fee schedule for services rendered by
57     the division to an executive branch entity or an entity that subscribes to services rendered by
58     the division.
59          (b) The committee shall:
60          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
61     Act;
62          (ii) meet at least once each calendar year to:
63          (A) discuss the service performance of each internal service fund;
64          [(ii)] (B) review the proposed rate and fee schedules [and may];
65          (C) at the rate committee's discretion, approve, increase, or decrease the rate and fee[;]
66      schedules described in Subsection (2)(b)(ii)(B); and
67          (D) discuss any prior or potential adjustments to the service level received by state
68     agencies that pay rates to an internal service fund;
69          (iii) recommend a proposed rate and fee schedule for each internal service fund to:
70          (A) the Governor's Office of Management and Budget; and
71          (B) [the] each legislative appropriations [subcommittees] subcommittee that, in
72     accordance with Section 63J-1-410, [approve] approves the internal service fund agency's rates,
73     fees, and budget; and
74          (iv) review and approve, increase or decrease an interim rate, fee, or amount when an
75     internal service fund agency begins a new service or introduces a new product between annual
76     general sessions of the Legislature.
77          (c) The committee may in accordance with Subsection 63J-1-410(4), decrease a rate,
78     fee, or amount that has been approved by the Legislature.
79          Section 2. Section 63F-1-302 is amended to read:
80          63F-1-302. Information Technology Rate Committee -- Membership -- Duties.
81          (1) (a) There is created an Information Technology Rate Committee, which shall
82     consist of[: (i) the executive director of the Governor's Office of Management and Budget, or a
83     designee; (ii)] the executive directors, or [their] the executive director's designee, of [three]
84     seven executive branch agencies that use services and pay rates to one of the department
85     internal service funds, appointed by the governor for a two-year term[;].
86          [(iii) the director of the Division of Finance, or a designee; and]
87          [(iv) the chief information officer.]
88          (b) (i) Of the seven executive agencies represented on the rate committee under
89     Subsection (1)(a), only one of the following may be represented on the committee, if at all, at
90     any one time:
91          (A) the Governor's Office of Management and Budget;
92          (B) the Division of Finance; or
93          (C) the Department of Administrative Services.
94          (ii) The department may not have a representative on the rate committee.
95          [(b) (i) The director of the Division of Finance shall serve as chair of the committee.]
96          (c) (i) The committee shall elect a chair from its members.
97          (ii) Members of the committee who are state government employees and who do not
98     receive salary, per diem, or expenses from their agency for their service on the committee shall
99     receive no compensation, benefits, per diem, or expenses for the member's service on the
100     committee.
101          [(c)] (d) The department shall provide staff services to the committee.
102          (2) (a) Any internal service funds managed by the department shall submit to the
103     committee a proposed rate and fee schedule for services rendered by the department to an
104     executive branch agency or an entity that subscribes to services rendered by the department.
105          (b) The committee shall:
106          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
107     Act;
108          (ii) meet at least once each calendar year to:
109          (A) discuss the service performance of each internal service fund;
110          [(ii)] (B) review the proposed rate and fee [schedule and] schedules;
111          (C) determine [if the] whether each proposed fee is based on cost recovery as required
112     by Subsection 63F-1-301(2)(b);
113          [(iii) review the proposed rate and fee schedules and may]
114           (D) at the rate committee's discretion, approve, increase, or decrease the rate and fee[;]
115     schedules described in Subsection (2)(b)(ii)(B); and
116          (E) discuss any prior or potential adjustments to the service level received by state
117     agencies that pay rates to an internal service fund;
118          [(iv)] (iii) recommend a proposed rate and fee schedule for each internal service fund
119     to:
120          (A) the Governor's Office of Management and Budget; and
121          (B) the Office of Legislative Fiscal Analyst for review by the Legislature in accordance
122     with Section 63J-1-410, which requires the Legislature to approve the internal service fund
123     agency's rates, fees, and budget in an appropriations act; and
124          [(v)] (iv) in accordance with Section 63J-1-410, review and approve, increase or
125     decrease an interim rate, fee, or amount when an internal service fund agency begins a new
126     service or introduces a new product between annual general sessions of the Legislature, which
127     rate, fee, or amount shall be submitted to the Legislature at the next annual general session.
128          (c) The committee may, in accordance with Subsection 63J-1-410(4), decrease a rate,
129     fee, or amount that has been approved by the Legislature.
130          Section 3. Section 67-19-11 is amended to read:
131          67-19-11. Use of department facilities -- Field office facilities cost allocation --
132     Rate committee.
133          (1) (a) All officers and employees of the state and its political subdivisions shall allow
134     the department to use public buildings under their control, and furnish heat, light, and furniture,
135     for any examination, training, hearing, or investigation authorized by this chapter.
136          (b) The cost of the department's use of facilities shall be paid by the agency housing a
137     field office staff.
138          (2) The executive director shall:
139          (a) prepare an annual budget request for the department;
140          (b) submit the budget request to the governor and the Legislature; and
141          (c) before charging a fee for services provided by the department's internal service fund
142     to an executive branch agency, the executive director shall:
143          (i) submit the proposed rates, fees, and cost analysis to the Rate Committee established
144     under Subsection (3); and
145          (ii) obtain the approval of the Legislature as required under Section 63J-1-410.
146          (3) (a) There is created a rate committee [which] that shall consist of[: (i) the executive
147     director of the Governor's Office of Management and Budget, or a designee; (ii)] the executive
148     directors of [three] seven state agencies that use services and pay rates to one of the department
149     internal service funds, or their designee, appointed by the governor for a two-year term[;].
150          [(iii) the director of the Division of Finance, or a designee;]
151          [(iv) the executive director of the Department of Human Resource Management, or a
152     designee; and]
153          [(v) the attorney general or designee.]
154          (b) (i) Of the seven executive agencies represented on the rate committee under
155     Subsection (3)(a), only one of the following may be represented on the committee, if at all, at
156     any one time:
157          (A) the Governor's Office of Management and Budget;
158          (B) the Division of Finance;
159          (C) the Department of Administrative Services; or
160          (D) the Department of Technology Services.
161          (ii) The department may not have a representative on the rate committee.
162          [(b)] (c) (i) The rate committee shall elect a chair from [its members, except that the
163     chair may not be from an agency that receives payment of a rate set by the committee] the rate
164     committee's members.
165          (ii) [Members] Each member of the rate committee who [are] is a state government
166     [employees] employee and who [do] does not receive salary, per diem, or expenses from [their]
167     the member's agency for [their] the member's service on the rate committee shall receive no
168     compensation, benefits, per diem, or expenses for the [members'] member's service on the rate
169     committee.
170          [(c)] (d) The [Department of Human Resource Management] department shall provide
171     staff services to the rate committee.
172          (4) (a) The department shall submit to the rate committee a proposed rate and fee
173     schedule for:
174          (i) human resource management services rendered; and
175          (ii) costs incurred by the Office of the Attorney General in defending the state in a
176     grievance under review by the Career Service Review Office.
177          (b) The rate committee shall:
178          (i) conduct meetings in accordance with Title 52, Chapter 4, Open and Public Meetings
179     Act;
180          (ii) meet at least once each calendar year to:
181          (A) discuss the service performance of each internal service fund;
182          (B) review the proposed rate and fee schedules [and may];
183          (C) at the rate committee's discretion, approve, increase, or decrease the rate and fee
184     schedules described in Subsection (4)(b)(ii)(B); and
185          (D) discuss any prior or potential adjustments to the service level received by state
186     agencies that pay rates to an internal service fund;
187          (iii) recommend a proposed rate and fee schedule for the internal service fund to:
188          (A) the Governor's Office of Management and Budget; and
189          (B) [the] each legislative appropriations [subcommittees] subcommittee that, in
190     accordance with Section 63J-1-410, [approve] approves the internal service fund rates, fees,
191     and budget; and
192          (iv) review and approve, increase or decrease an interim rate, fee, or amount when the
193     department begins a new service or introduces a new product between annual general sessions
194     of the Legislature.
195          (c) The committee may in accordance with Subsection 63J-1-410(4) decrease a rate,
196     fee, or amount that has been approved by the Legislature.
197          Section 4. Coordinating S.B. 52 with S.B. 37 -- Superseding technical and
198     substantive amendments.
199          If this S.B. 52 and S.B. 37, Human Resource Management Rate Committee, both pass
200     and become law, it is the intent of the Legislature that the amendments in Subsections
201     67-19-11(3) and (4) in this bill supersede the amendments to Subsections 67-19-11(3) and (4)
202     in S.B. 37 when the Office of Legislative Research and General Counsel prepares the Utah
203     Code database for publication.